IRS Revenue Procedure 2024-21: New MRB and MCC Purchase Price Limits and Safe Harbors
On April 16, 2024, the Internal Revenue Service published Revenue Procedure 2024-21, 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 November 2023 and dividing them by .878. It also sets the national average purchase price at $510,100 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 seeks comments on whether, starting in 2025, the IRS should use HUDโs median house price data to calculate the MRB/MCC income limits instead of FHAโs single-family loan limits. The deadline to comment is June 15, 2024.
