LIHTC Renter Resources

 Resources for LIHTC Renters

Am I Renting a LIHTC Unit?

You know you are a Low-Income Housing Tax Credit (LIHTC) renter if you completed a detailed income verification process when moving in, signed a special tax credit addendum, and your rent is capped based on area median income limits rather than fluctuating directly with your personal paycheck.

Check Your Documents

• Lease or Addendum: Look for words like "Low-Income Housing Tax Credit," "Section 42," or "Affordable Housing Program."

• Move-in paperwork: You likely signed a Tenant Income Certification (TIC) form where you listed all household income and assets.

• Annual recertification: You may be asked to fill out income forms every year to prove you still qualify.

Check How Rent is Set

• Fixed rent limits: Your rent is based on the local area median income (AMI) for your unit size, not a percentage of your personal paycheck.

• Below market rate: Your monthly payment is usually lower than standard market-rate apartments in the same neighborhood.

Ask Management

• Property office: Call or email your landlord or property manager and ask directly: "Is this property part of the Section 42 / LIHTC tax credit program?

What Is Affordable Housing? 

Is it the same as “low income” or “subsidized” housing? These three terms can be confusing because they are often used interchangeably. All three generally refer to housing that is limited to people of certain incomes, and where rents are also restricted. These limits, though, can be very different depending on the housing program or subsidy that is in use at the property.  

Affordable rental housing is a broad term that includes different types of housing designed to be affordable for people with lower incomes. These homes are usually reserved for households that meet certain income limits. 

Affordable housing can include: 

• Subsidized housing: Rent is based on a percentage of the tenant’s income, typically no more than 30%. 

• Income-restricted housing: Rent is capped at a maximum amount based on income limits. These properties may or may not include rental subsidies. Low Income Housing Tax Credit Program units usually fall under this type of housing.

How Do Low-Income Housing Credits Work?

One of the most important tools used across the United States for affordable housing is the Low-Income Housing Tax Credit, better known as LIHTC. 

Instead of funding every affordable housing project directly, the federal government created an incentive for private investors to finance affordable housing developments in exchange for federal tax credits. 

Although LIHTC is a federal program administered by the IRS, it is managed day to day at the state level. Nearly 1,200 apartment buildings across Washington State participate in the federal Low Income Housing Tax Credit (LIHTC) program.   

The Washington Housing Finance Commission (WSHFC) is the agency that distributes the LIHTC funding to owners so they can build apartments. In return for this funding, owners promise to rent units to low income households and to keep rents lower than market rate.   

The Asset Management and Compliance Division at the Commission is responsible for making sure these property owners are meeting their promises. Our team reviews reports submitted by these property owners annually to ensure the properties abide by the rules of the LIHTC program and the terms of our contracts with them.  These contracts typically last 30 to 40 years. 

How Is Rent Determined?

What's the difference between the Low-Income Housing Tax Credit program versus HUD or a public housing authority? 

Low Income Housing Tax Credit properties follow these rent and income limits. Some, but not all, renters hold a rental-assistance voucher or live in a unit with rental assistance (such as Section 8) that ensures that they pay no more than 30% of their income toward their rent. 

Income & Rent Limits

To find the limits for your property, click on the Limits by Property button above. A PDF will open with an alphabetical list of multifamily properties. Locate your property, then click the limits hyperlink to view the current applicable income and rent limits.

Please email your property's Portfolio Analyst if you would like a sortable Excel file version of the Limits by Property PDF file.

Have questions about HB 1217 Rent Stabilization? Find answers and important information in our HB Rent Stabilization FAQs and Facts Sheet. Click here.

HISTORICAL LIMITS: If you need to find rent/income limits from previous years, click here.

Important Notes:

1. Income and rent limits for Low Income Housing Tax Credit and Tax-Exempt Bond properties are calculated annually by the federal Department of Housing and Urban Development (HUD) using established HUD formulas. As a customer service, the Washington State Housing Finance Commission provides these limits to property owners and managers. However, per IRS regulations, it is the sole responsibility of property owners to use the correct limits applicable to their properties. Any noncompliance resulting from the use of an incorrect limit is entirely the responsibility of the property owner.

2. Properties with additional funding from other city, county, state, or federal affordable housing programs may be required to use lower rent and income limits than the HUD limits listed here. The correct limits are automatically applied to each unit within the WBARS system. If your company does not use WBARS, be sure to check for the appropriate rent and income limits on the websites of the property's other funders.

3. Maximum rent limits include the cost of utilities paid by the resident. Unless your property pays ALL utilities, you must allow for the estimated amount the resident pays for utilities (also known as a utility allowance) when calculating the rent charged, so that both together do not exceed the rent limits. Go to our utility allowances page to learn more about this requirement.

4. If income limits increased in your area, it is important to implement the higher income limits immediately to help tenants qualify for housing. More caution is advised when deciding whether to increase the rents being charged to tenants. Remember that rent limits are a ceiling, not a floor.

What's the Role of the Commission?

The Washington State Housing Finance Commission awards tax credits and other financing to owners so they can build or improve income- and rent-restricted rental properties. After awarding the financing, the Commission continues to monitor the properties to make sure they comply with Low Income Housing Tax Credit program rules. 

The Commission’s monitoring responsibilities include confirming the following: 

1. That families are income-eligible to live at LIHTC properties. 

2. That owners are charging residents no more than the applicable limit for rent. 

3. That owners are responding to inspections to make sure the properties meet specific health and safety standards. 

While the Commission monitors projects for LIHTC program compliance, property management and day-to-day operations are handled by the owners and managers of each community. 

LIHTC Renter FAQs

WSHFC Property Management & Compliance Division Tax Credit Tenant FAQs - Rev. August 2019 

How is my rent calculated?

Your rent is based on the income limit of your unit and on the number of bedrooms it has. Your rent is not based on a percentage of your income, as in other housing programs. A unit’s income limit is based on a percentage of the median income for your county. The income limit can be 30%, 35%, 40%, 45%, 50% or 60% of the median income. This percentage of median income is the “setaside percentage” in the chart below. In order to qualify for a unit, your income must be under the limit for your family size. For example, if the apartment has a set-aside percentage of 30% of median income and you have two people in your family, your household income cannot be more than $26,580 a year when you move in.

KING COUNTY INCOME LIMITS AS OF APRIL 2019

Set-aside Percentage	1-person	2-person	3-person	4-person	5-person	6-person	7-person	8-person
30%	23,250	26,580	29,910	33,210	35,880	38,550	41,190	43,860
35%	27,125	31,010	34,895	38,745	41,860	44,975	48,055	51,170
40%	31,000	35,440	39,880	44,280	47,840	51,400	54,920	58,480
45%	34,875	39,870	44,865	49,815	53,820	57,825	61,785	65,790
50%	38,750	44,300	49,850	55,350	59,800	64,250	68,650	73,100
60%	46,500	53,160	59,820	66,420	71,760	77,100	82,380	87,720

A unit’s rent limit is based on the number of bedrooms. For example, below are the current rent limits (effective 4/24/2019) for King County tax-credit properties. You can see that if the apartment has an income limit (set-aside percentage) of 30% and has one bedroom, the rent cannot be more than $622. 

KING COUNTY RENT LIMITS AS OF APRIL 2019 

Set-aside Percentage	Studio	1-Bedroom	2-Bedroom	3-Bedroom	4-Bedroom	5-Bedroom
30%	581	622	747	863	963	1,063
35%	678	726	872	1,007	1,124	1,240
40%	775	830	997	1,151	1,285	1,417
45%	871	934	1,121	1,295	1,445	1,594
50%	968	1,038	1,246	1,439	1,606	1,771
60%	1,162	1,245	1,495	1,727	1,927	2,126

If your income qualifies you for a unit at, for example, 30% and you move in to a 30% unit, then your landlord will charge you up to the 30% rent. 

However, if the property has already rented all its 30% units, you may be offered a unit with a higher income limit—say, 50%. The rent limit for this unit is also higher, so you should consider carefully before you move in whether you can afford the higher rent.  

Where do I find tax credit income and rent limits for the property I want to move to?

You can find this information online at www.wshfc.org/limits on the Washington State Housing Finance Commission’s (WSHFC) website.   

 Do income and rent limits ever change?

 Yes, the limits are updated annually, and the amounts usually increase each year.   

The limits for my county seem really high.  Who decides how much the limits should be each year?

The limits for all federal rental-housing programs are calculated by the U.S. Department of Housing and Urban Development (HUD), based on information about the local economy. If the economy is doing very well in a particular county and many people’s wages are increasing as a result, the limits may go up.  

If the economy and people’s wages are not doing as well, then limit amounts can go down. After HUD calculates the limit amounts, they send the information to WSHFC and we publish the limits on our website.  HUD updates program limits every year, typically in March or April.   

Do you make tax credit landlords raise their rents to match the updated limits every year?  

No.  WSHFC does not require tax credit landlords to raise their rents. Landlords may choose to raise their rents as long as they don’t go over the applicable rent limits.  

I signed a 12-month lease at a tax credit property.  Now my landlord wants to raise my rent, but the lease term isn’t over yet. Can my landlord do this?

Your landlord cannot raise your rent during a lease term, according to a state law that went into effect on July 28, 2019.  If you believe that your landlord is violating state law, you should seek legal advice. See our website for resources: www.wshfc.org/managers/landlord-tenant.htm.   

 What happens if my landlord charges me rent that is over the tax credit rent limit?

Be sure to discuss any questions or concerns you have about your rent directly with your property manager. WSHFC monitors every tax credit project annually to make sure owners are not charging rents that are over the tax credit rent limits.  When WSHFC discovers that a resident has been overcharged, we require the owner to refund any overpayment back to the resident. 

 At my last annual recertification, my landlord changed my unit from 30% to 50%. Is this allowed? 

 If your income has increased enough to exceed a higher income set-aside, your landlord has the right to switch you to a higher income set-aside.  However, your landlord must have language in your lease that explains this, and they must provide you with written notice prior to the change. 

Why do I have to disclose all my household income and assets before I move in? 

All federal rental housing programs require applicants to disclose their income and assets prior to moving into a unit. This is so the federal government can be sure that affordable housing is going to families who need it. Tax-credit property owners and managers are required by federal regulations to collect this information and verify it (through third-party sources) before anyone can move into a unit. 

I’m already qualified for my unit. Why do I have to keep telling my property manager about my income every year? 

All federal rental housing programs require residents to re-state their income and assets on an annual basis. Your landlord is required to re-confirm income and assets and the student status of every household member every year while the household lives in a tax credit unit.   

My roommate and I are fulltime students and were turned down for a tax credit apartment. Why?

 Federal regulations do not allow households that include ONLY fulltime students to rent tax credit units (unless they meet one of five exceptions). A “Fulltime Student” is someone who attends an educational institution for at least five months during a calendar year (the months do not have to be consecutive). Fulltime students CAN live in tax credit housing if they are part of an otherwise qualified household—just not if they are the only ones in the household. Chapter 2 of WSHFC’s Tax Credit Compliance Manual describes the rules related to Fulltime Student households (starts on page 4): http://www.wshfc.org/managers/ManualTaxCredit/40_Chap02FederalRequirements.pdf  

I have a Section 8 voucher. Does that affect how my rent is calculated? 

When you have a Section 8 voucher, the tax credit limits do not apply to your rent. Instead, your portion is calculated by the agency that issued the voucher (for example, a public housing authority).  But if you lose your Section 8 assistance, you can be charged up to the tax-credit rent limit for your unit. 

 I feel like my property manager is discriminating against me. Can you help me? 

WSHFC is not an investigative or enforcement agency for Fair Housing issues.  We only monitor the owner for compliance with tax-credit program rules.  We encourage you to contact your local civil rights or Fair Housing agency if you believe you are being discriminated against based on being a member of a protected class.  You can find contact information for such agencies around the state on our website at: www.wshfc.org/managers/f_h_resources.htm and www.wshfc.org/managers/landlord-tenant.htm. If you file a discrimination case against your landlord and win, please contact WSHFC so we can report this finding to other federal agencies.  

My landlord is evicting me because of noise complaints, but there are other residents that are just as noisy who are not being evicted. What should I do?

WSHFC does not have the authority to investigate landlord/tenant disputes or enforce landlord/tenant laws. We only monitor the owner for compliance with tax credit program rules. If you think your landlord is treating you unfairly, is violating the terms of your lease, or doing something illegal, we strongly encourage you to get legal advice.  You can find some legal resources on our website at: http://www.wshfc.org/managers/landlord-tenant.htm. If you challenge your eviction and/or take your landlord to court and win, please contact WSHFC so we can report this finding to other federal agencies.