Mich. Admin. Code R. § R 125.105
Income limitations.
Operative Text
Rule 105. (1) For a household to be considered eligible for initial occupancy in a housing project or housing unit financed by the authority, that household's income shall not exceed the following household income limitations: (a) Unless otherwise permitted by the act, for housing, other than single family housing units, that has been financed by the proceeds of authority bonds that have been delivered before June 9, 1977, the effective date of certain emergency rules that temporarily effectuated the provisions of subdivisions (b) and (c) of this subrule, a household shall not have an adjusted household income of more than $12,000.00 plus $500.00 for each member of the household in addition to the head of the household and his or her spouse; provided, however, that the authority, by resolution, may determine, with respect to a particular housing project, that 20% of the dwelling units in that project shall be available for occupancy by households having adjusted household incomes of not more than 125% of that established in this subrule. The resolution must include determinations by the authority that the project could not be marketed successfully without the higher income limit and that the project complies with either of the following: (i) It is located in a city, other than a central city, with a per capita personal income less than the per capita personal income for this state. (ii) It is located elsewhere and the number of units for households with incomes eligible for public housing or a program equivalent is at least equal to the number of units for households with incomes between the 100% and 125% limits. The $12,000.00 amount established in this subrule is automatically increased in accordance with the following formula: ($12,000.00) + ($12,000.00 x .07 x n) where n is the number of complete years elapsed since January 1, 1973. (b) Unless otherwise permitted by the act, for housing, other than single- family housing units, that has been financed before May 1, 1984, and that has not been financed by proceeds of authority bonds that have been delivered before June 9, 1977, a household shall not have a gross income of more than $28,000.00, which is the estimated median family income in this state, provided, however, in the case of shared housing, a gross income limit of $15,000.00 is applied separately to each household assigned separate sleeping and bathroom facilities, notwithstanding the sharing of other living space. (c) For all single-family housing units, a household shall not have a gross income in excess of that permitted in the act. (d) Notwithstanding the provisions of subdivisions (a), (b), and (c) of this subrule, but subject to the act, a household may have a gross income up to that established pursuant to the following formula: 1.5 x a x 1.07n, where a is the median family income for the county in which the proposed housing is to be located, as identified in the publication entitled "1969 and Estimated 1977 Decile Distributions of Family Income by SMSA's and Non-Metropolitan Counties," prepared by the United States Department of Housing and Urban Development, Office of Economic Affairs, Economic and Market Analysis Division, June 1, 1977, and where n is the number of complete years elapsed since June 1, 1977, if the authority, by resolution, makes all of the following determinations: (i) The economic integration encouraged by the higher income limits promotes the financial and social stability of housing financed or to be financed by the authority. (ii) Private enterprise has failed to provide a substantial supply of adequate, safe, and sanitary dwellings in the area of the housing proposed for occupancy by households that qualify for assistance pursuant to this subdivision within the financial means of, and suitable for, such households. (iii) The housing is located in an area in a central city that meets the criterion set forth in subparagraph (ii) of this subdivision. (e) Notwithstanding the provisions of subdivisions (a), (b), and (d) of this subrule, a household may have a gross income up to the income limits set forth in sections 44(1)(a)(iv), 44(1)(a)(v), and 44(1)(b), MCL 125.1444, if the authority, by resolution, determines that the higher income limits promote the authority's ability to preserve the low- income occupancy of the housing project. (f) For housing, other than single-family housing units, that has been financed on or after May 1, 1984, a household shall not have a gross income in excess of that permitted in the act. (2) If a household income limitation is a requirement for an assumption of a mortgage on a single-family housing unit, then the household income limitation for a household to be considered eligible to assume a mortgage on a single-family housing unit must be the highest household income limitation ever established in subrule (1)(c) of this rule. (3) If federal subsidy payments are made on behalf of occupants of authority-financed dwelling units or housing units, then the income limitations established in this rule are superseded by federal laws and regulations applicable with respect to those applicants. (4) If the program providing the funds for a loan or grant is subject to laws, regulations, rules, or other requirements that have particular income or other programmatic restrictions, or if the entity providing the funds for a loan or grant has particular income or other programmatic restrictions, then the authority may elect to apply some or all of these restrictions, instead of those that would otherwise be applicable pursuant to this rule. (5) Subrule (1) of this rule does not apply to households applying for a property improvement loan pursuant to part 8 of these rules. (6) The income limitation contained in subrules (1) and (2) of this rule is subject to state and federal laws which may establish income limitations as a prerequisite to obtaining tax- exempt status of authority notes and bonds. History: 1979 AC; 1980 AACS; 1981 AACS; 1982 AACS; 1983 AACS; 1985 AACS; 1986 AACS; 1998- 2000 AACS; 2023 AACS.
Michigan Administrative Code R 125.105 establishes the income thresholds that a household must fall below in order to qualify for initial occupancy in housing financed by the Michigan State Housing Development Authority (MSHDA). The specific limits vary depending on when the housing was financed, the type of housing (single-family versus multifamily), and whether federal subsidies or special authority resolutions apply. When federal subsidy programs are involved, federal income rules take precedence over the state limits set out in this rule, and certain loan or grant programs may trigger their own separate restrictions.
Plain English — not legal advice.
Operators of MSHDA-financed properties must screen prospective households against the income ceilings applicable to their specific project under R 125.105, which differ based on the financing date and housing type. Where the authority has passed a resolution permitting higher income limits—such as the 125% threshold for up to 20% of units in qualifying projects, or the formula-based limits under subdivision (d)—operators should maintain documentation of that resolution and apply it consistently. Properties receiving federal subsidy payments must follow the federal income rules that supersede R 125.105, and operators should confirm which regulatory framework governs each unit or program layer.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under R 125.105, households seeking to move into MSHDA-financed housing have a right to know which income limit applies to their prospective unit, as the threshold depends on factors like the project's financing date and whether a special authority resolution is in effect. If federal subsidies are attached to the unit, federal income rules govern eligibility rather than the state formula, which may affect how a household's income is calculated and what documentation is required. Households who believe an income determination was made incorrectly may wish to contact MSHDA directly, consult a tenant-rights organization familiar with Michigan housing programs, or review the applicable provisions of MCL 125.1444 referenced in this rule.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
Rules and statutes cited by this regulation
References In
No inbound references recorded yet for this provision.
Related Rules
Source Information
Use this in your app
Access this data programmatically via our API