IRS Revenue Procedure 2023-22: New MRB and MCC Purchase Price Limits and Safe Harbors
On April 19, 2023, the Internal Revenue Service published Revenue Procedure 2023-22, which revises the nationwide average purchase price limits and the average area purchase price safe harbors for the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs. The revenue procedure establishes the new MRB and MCC purchase price limits by taking the Federal Housing Administration single-family loan limits released in December 2022 and dividing them by .883. It also sets the national average purchase price at $503,300 for computing the housing cost/income ratio, which determines which areas qualify as high cost and are eligible for an increase in MRB/MCC income limits.
The revenue procedure also requests comments on whether there are other sources of average purchase price data, including data that differentiate between new and existing residences, that could provide a different method for calculating average area purchase price safe harbors. The deadline to comment is June 19, 2023.
