Get Section 42 Housing Rules - Rock Island County

If you want to live in Section 42 housing, you must meet the income and asset qualifications based on the size of your family. In order to qualify: Your income must be no less than 30 percent and no greater than 50 percent of your area's median income limits as defined by HUD.

In Illinois, seniors are considered low income if their monthly income from counted sources does not exceed $1,133 and their total assets are below $2,000, ing to Medicaid's low-income standards for 2023.

2085 (1986 Act) created the low-income housing credit under § 42 of the Code. Section 42(a) provides that the amount of the low-income housing credit for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low-income building.

0:00 1:46 That's right it's all about the Benjamins or lack thereof. But wait there's more each state has itsMoreThat's right it's all about the Benjamins or lack thereof. But wait there's more each state has its own specific rules and guidelines. So the exact income limits can vary.

The residents who live in Section 42 units must be income and program eligible similar to residents who live in rental assistance developments. However, the rent that a Section 42 resident will pay is capped at a fixed amount and includes utilities that are the resident's responsibility.

Section 42 housing is a type of subsidized housing intended to assist low-income renters get safe, affordable housing. To qualify for a Section 42 apartment, you must meet certain income requirements, as defined by your local Department of Housing and Urban Development (HUD).

Renters living in Low Income Housing Tax Credit (LIHTC - Section 42) units pay a fixed rent amount. The rent amounts are often similar to other market rate units in the area. However, the LIHTC buildings often have much nicer amenities than market rate units renting for a similar price.