On Oct. 13, the Social Security Administration (SSA) announced that the Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022. This is the largest increase in 40 years.
HUD’s Office of Multifamily Housing Programs recently issued guidance regarding the treatment of unemployment benefits under the 2021 Consolidated Appropriations Act and the monthly child tax credit under the American Rescue Plan of 2021 (ARPA).
On April 1, HUD released the 2021 income limits for the Multifamily Tax Subsidy Projects (MTSP) housing programs. MTSPs, a term coined by HUD, are all Low-Income Housing Tax Credit projects under Section 42 of the Internal Revenue Code and multifamily projects funded by tax-exempt bonds under Section 142 (which generally also benefit from LIHTC). These projects may have special income limits established by statute. You can find the income limits at www.huduser.gov/portal/datasets/mtsp.html.
The Social Security Administration recently announced that the Social Security and Supplemental Security Income (SSI) benefits will increase 1.3 percent in 2021. The 1.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2021. Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 31, 2020. The COLA increase also applies for Americans who rely on VA disability, military retirement, and other government benefits. Changes to Medicare for 2020 have not yet been announced.
As U.S. unemployment reaches historic levels, you may see more applicants making ends meet with income from online “gig” platforms such as Instacart, Postmates, or Grubhub. These particular grocery and food delivery services have reported record demand during the pandemic and have announced increases in work opportunities through their platform. Applicants may be using freelance positions with these type of online services that match their freelance labor and local demand as a stopgap solution to paying bills during an economic downturn.
On March 27, the president signed into law the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) as part of the $2 trillion stimulus package intended to stabilize the economy during the devastating coronavirus pandemic. The CARES Act provides for a temporary waiver of required minimum distributions (RMDs) that would otherwise be payable in 2020 for IRC Section 403(a) and 403(b) defined contribution plans, governmental IRC Section 457(b) defined contribution plans, and individual retirement plans.
HUD recently announced the 2020 income limits for the Multifamily Tax Subsidy Projects (MTSP) housing programs effective April 1, 2020. This includes sites with low-income housing tax credits and tax-exempt bond financing. HUD has also issued the income limits for the 2020 MTSP Income Averaging Limits.
On March 3, the Federal Reserve cut its federal funds rate by half a percentage point. It was the first rate cut in 2020 and came in response to the threat posed to the economy by the coronavirus.When the Fed cuts interest rates, consumers usually earn less interest on their savings. Banks will typically lower rates paid on cash held in bank certificates of deposits, money market accounts, and regular savings accounts.
On Oct. 10, the Social Security Administration announced that the Social Security and Supplemental Security Income (SSI) benefits will increase 1.6 percent in 2020. The 1.6 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 63 million Social Security beneficiaries in January 2020. Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 31, 2019. The COLA increase also applies for Americans who rely on VA disability, military retirement, and other government benefits. Changes to Medicare for 2020 have not yet been announced.
Determining annual income is an important step in determining an applicant’s eligibility for the LIHTC program. To become income eligible, an applicant’s household gross annual income must be equal to or less than the income limit applicable to your site.
