WASHINGTON - The Internal Revenue Service has told issuers to use $38,600 as the national median income figure to determine which individuals living in high-cost areas of the country qualify for financing from tax-exempt mortgage revenue bonds.
The new figure applies to financings done after May 7, 1992, and replaced the previous level of $38,000.
Under the tax laws, families of three or more can obtain low-cost financing for housing from tax-exempt mortgage revenue bonds if their income level is 115% or less of the median income for their area. Families of one or two can qualify if their income is 100% or less of the area median income.
The tax laws provide for an upward adjustment in the income levels of families living in high-cost areas. Mortgage revenue bond issuers must use a formula to determine the extent to which incomes can be adjusted upward. That formula takes into account the national median income level, a figure provided by the Department of Housing and Urban Development and released by the IRS on Wednesday in Revenue Procedure 92-61.