The U.S. Department of Housing and Urban Development (HUD) released its median income figures for fiscal year 2007. Data for the Portland-Vancouver-Beaverton MSA (click here) shows a $3,100 drop in the median income for a family of four from FY 2006 data. The Portland-Vancouver-Beaverton, OR-WA MSA contains the following areas: Clackamas County, OR; Columbia County, OR; Multnomah County, OR; Washington County, OR; Yamhill County, OR; Clark County, WA; and Skamania County, WA.
Despite the drop in area median income, for the second consecutive year HUD did not change the data for 80% AMI, 60% AMI, 50% AMI or 30% AMI. AMI levels are used to set rents in most affordable housing projects that use tax credits.
HUD’s FY 2007 AMI data is bad news for both tenants and affordable housing providers. For tenants, the failure to adjust AMI levels to the 2007 median income denies a potential reduction in rent. For affordable housing providers, including CDC’s, the flat AMI levels create income gap between project revenue and expenses, because the financing for affordable housing projects assumes that projects rents will INCREASE by 2% annually.