TRENTON, N.J. – March 25, 2008 – The Council on Affordable Housing (COAH) today adopted new income limits for New Jersey’s six housing regions. The limits are based on the U.S. Department of Housing and Urban Development’s (HUD) Section 8 income limits for the state’s six housing regions, which are defined by COAH. They can be viewed by logging on to www.nj.gov/dca/coah/incomelimits.pdf.
Income limits are used to determine the eligibility of low and moderate-income households, to price new sales and rental units, and to index the maximum resale price of existing sales units. While income limits vary across housing regions, they are also adjusted for family size. Low-income households are defined as earning 50 percent or less of the median gross household income for households of the same size within the same housing region. Moderate-income households are defined as earning between 50 and 80 percent of the median gross household income for households of the same size within the same housing region. COAH also calculates the income limits for very low income households earning 30 percent or less of median gross household income, as affordable housing available to this segment of the population is now eligible for bonuses and these households are eligible for financial assistance under the development fee regulations in COAH’s third round rules.
Affordable rents and sales prices can be raised a maximum of 3.0 percent, according to the U.S. Consumer Price Index (CPI). However, as with market housing, developers, landlords and owners may ask for less than the maximum permitted prices in order to sell or rent units.
COAH, an affiliate of the New Jersey Department of Community Affairs, facilitates the production of sound, affordable housing for low and moderate income households by providing the most effective process to municipalities, housing providers, nonprofit and for profit developers to address a constitutional obligation within the framework of sound, comprehensive planning.
