A continuing resident stays qualified until income exceeds 140 percent and a comparable unit in the project is let to a new over-income resident

bond.next_available_unit.continuing_resident_140_percent · v1.0.0

A resident whose income was at or below the applicable income limit when occupancy began is treated as continuing not to exceed that limit. That treatment ceases for a resident whose income at the most recent annual determination exceeds 140 percent of the applicable income limit IF, after that determination but before the next one, any residential unit of comparable or smaller size in the SAME PROJECT is occupied by a new resident whose income EXCEEDS the applicable income limit. Three things differ from the section 42 available unit rule. The unit of account is the project as 1.103-8(b)(4)(ii) defines it, not the building and not the Form 8609 line 8b election. The trigger is letting a comparable unit to an over-income NEW resident, not merely letting it to a household that fails to qualify under a designation. And the consequence falls on the RESIDENT's deemed income status, which is what feeds the set-aside numerator, rather than on the unit's status as a low-income unit.

Confidence

high

Effective from

1986-10-22

Last reviewed

2026-08-30