Please be advised that the Internal Revenue Service today released Revenue Procedure 2011-37, which contains information for issuers of single-family housing bonds and mortgage credit certificates with respect to the calculation of income limits including a “hold harmless” provision.
Revenue Procedure 2011-37 provides for a median gross income figure for the United States of $64,200 as released by HUD on May 31, 2011. Please note that in calculating 2011 income limits, Section 3 of Revenue Procedure 2011-37 allows an issuer to use either (i) the median gross income for the United States, the state and statistical areas within the state, as released by HUD on May 31, 2011 (collectively, the “FY 2011 Income Figures”) or (ii) the median gross income for the United States, the state and statistical areas within the state, as released by HUD on May 14, 2010 (collectively, the “FY 2010 Income Figures”). In addition, if the issuer uses the FY 2011 Income Figures to calculate high housing cost areas then the issuer must use such numbers for all purposes under Section 143(f). Likewise, if the issuer uses the FY 2010 Income Figures to calculate high housing cost areas then the issuer must use such numbers for all purposes under Section 143(f).
Revenue Procedure 2011-37 supersedes Revenue Procedure 2010-23, which is now obsolete except with respect to the use of the FY 2010 Income Figures as provided in Section 3 of the Revenue Procedure.
Attached is a copy of Revenue Procedure 2011-37. Please contact a member of the Tax Department or Housing Group if you have any questions about the use of this information.