At least 20% of units restricted to households earning ≤50% of Area Median Income.
40/60
40% at 60% AMI
At least 40% of units restricted to households earning ≤60% AMI. Most common election in NJ.
AIT
Average Income Test
40% of units designated 20–80% AMI; average across designated units must not exceed 60% AMI.
Added by Consolidated Appropriations Act, 2018
40
IRC §42(g). The election is irrevocable once made on IRS Form 8609. The AIT was added by the Consolidated Appropriations Act of 2018 (Pub. L. 115-141). In practice, most NJHMFA projects elect the 40/60 or AIT options.
· betterblocksnj.org