How is an individual's income determined for LIHTC purposes?

For the purpose of the Low-Income Housing Tax Credit (LIHTC) program, an individual's income is determined in accordance with section 8 of the US Housing Act. This aligns with the guidelines set forth by the U.S. Department of Housing and Urban Development, which establish income limits to ensure that households qualify for assistance under the LIHTC program. The income calculations take into account various factors, including adjustments for family size and specific deductions that may apply.

Using section 8 of the US Housing Act as a basis ensures consistency in defining income across different federal housing programs, allowing for a standardized method of assessing eligibility for low-income housing assistance. This approach helps promote equitable access to affordable housing for eligible individuals and families.

The other options focus on different frameworks or guidelines that do not specifically apply to the LIHTC program. While IRS guidelines relate to tax regulations and may influence LIHTC application in broader terms, they do not dictate how individual income is calculated for this specific program. State housing regulations can vary widely and may provide additional context but do not supersede the federal standards set by section 8. A standardized income test could suggest a uniform tool across various programs, yet for LIHTC, the established framework is specifically tied to section