Resident income must be redetermined at least annually on current income unless no new over-income resident moved in that year

bond.income_eligibility.annual_current_income_determination · v1.0.0

Whether a resident's income exceeds the applicable income limit must be determined at least annually on the basis of the resident's CURRENT income. That requirement is switched off for a project for any year in which no residential unit in the project was occupied by a NEW resident whose income exceeds the applicable income limit. The bond exception therefore turns on who moved in during the year, not on whether the building is 100 percent low-income: a 100 percent affordable project that leased one unit during the year to an over-income new resident must redetermine every resident's income, while a mixed-income project that happened to lease only to qualifying households that year need not. Form 8703 line 4 is where the operator claims the exception, and claiming it lets the operator skip lines 6 through 10 of the return.

Confidence

high

Effective from

1986-10-22

Last reviewed

2026-08-30