What is a requirement of the average income option for the minimum set-aside in LIHTC projects?

The average income minimum set-aside option in Low-Income Housing Tax Credit (LIHTC) projects allows properties to serve tenants with varying income levels while still maintaining eligibility for tax credits. Specifically, this requirement stipulates that 40% of the total units in the building must be rented to households with an average income of 60% of the area median income or less. This option provides flexibility to developers in setting rental rates while still ensuring that a significant portion of the units are made affordable to lower-income tenants.

By meeting this requirement, property owners can attract a broader demographic, accommodating a mix of income levels which can enhance community diversity and stability. This provision also helps to ensure that the project remains financially viable while fulfilling its purpose of providing affordable housing.