Cal. Civ. Code § 380.610
Over-Income Tenants
Operative Text
a)�������� Developers must verify the Annual Income of each Tenant before 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 Developer 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 before that increase, plus one-half of the difference between the Tenant Contribution and the current rent for the Unit. b)�������� 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 Developer 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 § 380.610, developers participating in the program must check each tenant's annual income before every lease renewal. If a tenant's income rises above 35% of the median income threshold, their rental assistance must end within 12 months of that increase, with a transitional contribution formula bridging the gap during that wind-down period. Additionally, if a tenant moves out of the Severely Low-Income Household income band into the Extremely Low-Income Household band, the developer is expected to make reasonable efforts to keep a unit available for a Severely Low-Income Household to maintain required unit set-asides.
Plain English — not legal advice.
Operators subject to 47 Ill. Admin. Code pt. 380 § 380.610 generally conduct income verification for every tenant at each lease renewal and maintain documentation of those reviews. When a tenant's income crosses the 35%-of-median threshold, compliant operators track the date of that increase, calculate the transitional contribution correctly—using the prior tenant contribution plus half the difference between that contribution and current rent—and begin the 12-month assistance wind-down process. Operators also monitor unit composition to ensure that if a tenant moves from the Severely Low-Income to the Extremely Low-Income band, reasonable steps are taken to reserve a replacement unit 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 § 380.610, tenants whose income increases above the 35%-of-median threshold are entitled to a full 12 months of rental assistance from the date of that increase, and if the increase happens mid-lease, the lease must be extended to ensure that full 12-month period is honored. During that wind-down period, the transitional contribution is calculated using a specific formula tied to the prior tenant contribution and current rent, which tenants can review to confirm accuracy. Tenants who believe their transitional contribution has been miscalculated or that the 12-month wind-down period has not been properly applied may consider contacting a tenant-rights organization or the Illinois Housing Development Authority for guidance on this provision.
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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