Real Estate Income Restrictions (apartments, lease, condos)

[aduma]

Hey all, I was wondering if anyone knew how DC figures your income for income restricted housing? There are quite a few new developments popping up and restrict income to around $60,000 for some of the units. My current salary is $62,467, but if they go off my prior tax returns, then my taxable income is much less. Anyone have any insight on if they just look at your paystubs and go off of those?

[pynkpanther]

restriced income places normally let you know the respective formulae on their websites, but i found that pay stubs work sufficiently and so does this site for nova: Rental Help:**Virginia - HUD

[JavaJunkieDC]

Where are these "quite a few developments" that you speak of?? The only housing I've seen going up are luxury condos and apartments.

Rent restricted apts. are VERY STRICT. If you are right on the cusp of the income NOW, they are going to kick you out as soon as you get a raise and go over their maximum allowed income. They are going to ask to see your pay stubs every year to make sure you still qualify for the unit.

[aduma]

Originally Posted by JavaJunkieDC

Where are these "quite a few developments" that you speak of?? The only housing I've seen going up are luxury condos and apartments.

Rent restricted apts. are VERY STRICT. If you are right on the cusp of the income NOW, they are going to kick you out as soon as you get a raise and go over their maximum allowed income. They are going to ask to see your pay stubs every year to make sure you still qualify for the unit.

Alot in Columbia Heights.

I am talking about condos, as many of them that are being built offer a few units at the income restricted price. So how would that work? If you qualified initially and then got a raise the next year, what would be the implications?

[JavaJunkieDC]

Originally Posted by aduma

Alot in Columbia Heights.

I am talking about condos, as many of them that are being built offer a few units at the income restricted price. So how would that work? If you qualified initially and then got a raise the next year, what would be the implications?

You'd be able to live in it for a year, than have to move out when your lease comes up. Units like that check your current income every single year.

I have never heard of an income restricted condo. Unless it's a rental.

Whichever place it is you're talking about, though, will undoubtedly want to see several of your most RECENT pay stubs. Not LAST YEAR'S tax returns. They're not stupid and they'll figure out your income is probably higher now.

[paytonc]

Originally Posted by JavaJunkieDC

You'd be able to live in it for a year, than have to move out when your lease comes up. Units like that check your current income every single year.

I have never heard of an income restricted condo. Unless it's a rental.

Nope, totally different. Income restricted condos have been around for quite a while, although they've become more common since DC passed inclusionary housing -- just before the market tanked, so the first such units are really just now coming online. You only have to be a qualified purchaser; you don't get kicked out once you're in the unit.

Depending on the city and the developer, there are various ways to bring the units to market. In most cities, like DC, you go through CDCs or city agencies that can be very thorough and provide homeowner education. Here in DC, the first step is to register with DHCD.

You should contact them to ask about how they'll want income to be documented. If it's AGI, there are many things that you can do to pull your AGI downwards; look to lines 24-36 of the 1040 for inspiration.