June 03, 2010

On June 1, the Internal Revenue Service (IRS) released its revenue procedure containing the United States and area median gross income figures for Housing Bond and Mortgage Credit Certificate issuers to use in their programs, including to determine the housing cost/income ratio, which may allow for a higher median family income limit in some high-cost areas. 

The revenue procedure states that issuers must use the median gross income figures released by HUD on March 19, 2009 or May 14, 2010.  It also states that issuers must use the median gross income figures specified in the June 1 revenue procedure for commitments to provide financing that are made, or (if the purchase precedes the financing commitment) for residences that are purchased, in the period that begins on May 14, 2010, and ends on the date when these United States and area median gross income figures are rendered obsolete by a new revenue procedure.

The IRS will publish this revenue procedure in the Internal Revenue Bulletin on June 14, 2010.  NCSHA posted the new revenue procedure to the HFA Finance and Legal Communities when it was released June 1.