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Jun-13-07 Council on Affordable Housing Adopts New Income Limits
TRENTON, N.J. – The Council on Affordable Housing (COAH) today adopted new income limits for New Jersey’s six housing regions. The income limits are used to determine the eligibility of low- and moderate-income households, to price new sales and rental units, and to index the maximum resale price of existing sales units.
The limits are based on the U.S. Department of Housing and Urban Development’s (HUD) Section 8 income limits for the state’s six housing regions, which are defined by COAH.
While income limits vary across housing regions, they are also adjusted for family size. Low-income households are defined as earning 50 percent or less of the median gross household income for households of the same size within the same housing region. Moderate-income households are defined as earning between 50 and 80 percent of the median gross household income for households of the same size within the same housing region. COAH also calculates the income limits for very low income households earning 30 percent or less of median gross household income, as affordable housing available to this segment of the population is now eligible for bonuses and these households are eligible for financial assistance under the development fee regulations in COAH’s third round rules.
The 2007 income limits decreased an average of 2.09 percent per region from the income limits released in 2006. The largest decrease from 2006 was in Region 1, which encompasses Bergen, Hudson, Passaic and Sussex Counties, at 4.62 percent, where the median income for a household of four is $74,055. The smallest decrease was 0.69 percent in Region 5, comprised of Burlington, Camden and Gloucester Counties, where the median income for a household of four is $71,600. Since the income limits for 2007 are less than the 2006 income limits, applicants who were qualified using COAH’s 2006 income limits, on or before July 1, 2007, may continue to qualify under COAH’s 2006 income limits.
Affordable rents and sales prices can be raised a maximum of 3.8 percent, according to the U.S. Consumer Price Index (CPI). However, as with market housing, developers, landlords and owners may ask for less than the maximum permitted prices in order to sell or rent units.
COAH was established under the Fair Housing Act of 1985 to facilitate the effective creation of quality affordable housing for low- and moderate-income households throughout New Jersey.
To view the 2007 income limits, log on to www.nj.gov/dca/coah/incomelimits.pdf