Cal. Civ. Code § 380.308
Over-Income Tenants
Operative Text
Upon receipt of a Tenant Income Certification, the Landlord, with the direction and supervision of the LAA, shall verify the Annual Income of each Tenant prior to the renewal of the Tenant's lease.� If the Annual Income of a Tenant exceeds 35% of the Median Income because of an increase in the Tenant's Annual Income, Rental Assistance shall be terminated no later than 12 months after the date of that increase.� If the increase occurs during the term of an existing lease, the Tenant shall be required to report the increase to the Landlord and the existing lease shall be extended for the period of time necessary to allow the Tenant the full 12 months of Rental Assistance.� The Transitional Contribution during this period shall be the Tenant's Tenant Contribution prior to such increase, plus one-half of the difference between the Tenant Contribution and the current rent for the Unit.� If a Tenant's Annual Income initially is within the Severely Low-Income Household limit, and increases above that limit, but is still within the Extremely Low-Income Household limit, the LAA shall take all reasonable efforts to ensure that an additional Unit is reserved for a Severely Low-Income Household, if necessary to comply with Section 380.301.
Under 47 Ill. Admin. Code pt. 380 § 380.308, when a tenant's annual income rises above 35% of the area median income, their rental assistance must end no later than 12 months after that income increase occurs. During that wind-down period, the tenant's contribution is set at a transitional amount — their prior contribution plus half the gap between that contribution and the current unit rent — rather than the full market rent. If the income increase happens mid-lease, the existing lease is extended to ensure the tenant receives the full 12-month transition period before assistance ends.
Plain English — not legal advice.
Operators subject to 47 Ill. Admin. Code pt. 380 § 380.308 generally collect and review Tenant Income Certifications before each lease renewal, working under the direction of the Local Administering Agency (LAA) to verify annual income. When a tenant's income crosses the 35%-of-median threshold, compliant operators document the date of the increase, calculate the correct Transitional Contribution, and coordinate with the LAA to schedule the termination of Rental Assistance within the required 12-month window. Operators also monitor unit composition to ensure that if a tenant moves from the Severely Low-Income tier to the Extremely Low-Income tier, reasonable efforts are made to keep a unit available for a Severely Low-Income household as required by Section 380.301.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 47 Ill. Admin. Code pt. 380 § 380.308, tenants whose income rises above the applicable threshold are entitled to a transition period of up to 12 months of continued Rental Assistance before it is terminated, and the amount they pay during that period is calculated using a specific transitional formula rather than full rent. Tenants are required to report any qualifying income increase to their landlord, and if the increase happens during an active lease term, that lease may be extended to protect the full 12-month transition period. Tenants who have questions about how their income tier is classified or how the transitional contribution was calculated may contact the Local Administering Agency (LAA) overseeing their program or reach out to a tenant-rights organization familiar with Illinois affordable housing regulations.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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