Cal. Civ. Code § 0770-01-05-.12

(1) For rules on how to calculate income, see Income and Asset Determination § 0770-01-05-
.19.

(2) Income Eligibility.

(a) Income limits only apply at admission and portability when the household is a new
admission or issued directly from a waiting list, not at recertification.

(b) An applicant must be one of the following:

1. An extremely low-income family (thirty percent (30%) of area median income),

2. A very low-income family (fifty percent (50%) of area median income), or

3. A low-income family (eighty percent (80%) of area median income) in any of the
following categories:

(i) Continuously assisted (less than one hundred twenty (120) days of
interruption between the assisted occupancy of one unit and the
subsequent assistance of occupancy for another assisted unit), under the
1937 Housing Act, meaning the family is already receiving assistance from
any program under the act when the family is admitted to the HCV
Program;

(I) 1937 Housing Act programs include the Public Housing Program and
all of the Section 8 project and tenant-based programs, as well as
the old Section 23 leased housing and the Section 23 housing
assistance payments programs.

(ii) Physically displaced by rental rehabilitation activity under 24 C.F.R. 511;

(iii) Non-purchasing family residing in a HOPE 1 or HOPE 2 project or a project
similar to a homeownership program under 24 C.F.R. 248.173; or

(iv) Displaced as a result of the prepayments of a mortgage or voluntary
termination of a mortgage insurance contract on eligible low-income
housing under 24 C.F.R. 248.101.

(c) A household whose income increases above the extremely low or very low income limit
may continue on the program as long as the household is still otherwise eligible.

(3) Income Targeting. HUD’s income targeting provisions require that seventy-five percent (75%)
of new admissions each fiscal year have a gross annual income at or below the extremely
low-income limit.

(a) The THDA tracks the percentages of new admissions by income for each county on a
monthly basis to ensure that 75% percent of all new admissions are at or below the
extremely low-income limit.

(b) At the Eligibility Interview, the THDA will compare the applicant’s annual gross income
to the appropriate income limit established by HUD.

(c) When the THDA is not meeting income-targeting standards, the following procedures
will be implemented:

1. Applicant households with a gross annual income at or below the extremely low-
income limit will be admitted.

2. Applicant households with a gross annual income greater than the extremely low-
income limit, but less than the very low-income limit, will be returned to the
waiting list by the date and time of their pre-application.

3. Applicant households with a gross annual income that exceeds the very low-
income limit will be denied admission and their name will be removed from the
waiting list, unless the family meets the criteria for an acceptable low-income limit
category as outlined above in 0770-01-05-.12(2)(b)3.

4. Applicant households with a gross annual income that exceeds the very low-
income limit, but meet the criteria for an acceptable low-income limit category,
will be returned to the waiting list by the date and time of their pre-application.

(d) The THDA is exempt from income-targeting requirements when providing assistance to
low-income or moderate-income families that are entitled to preservation assistance as
a result of a mortgage pre-payment or opt out (enhanced vouchers).

Authority: T.C.A. §§ 13-23-104 and 13-23-115(18), 42 U.S.C. § 1437, and 24 C.F.R., Part 982.
Administrative History: Original rule filed May 16, 1980; effective June 30, 1980. Repeal and new rule
filed September 28, 2004; effective December 12, 2004. Repeal and new rule filed June 4, 2015; effective
September 2, 2015.