Low-income housing tax credits: lease nonrenewal: good cause

The law defines good cause for nonrenewal in qualifying 100%-lower-income housing projects while requiring advance warnings and notice for affected tenants.

What the law does ​

• Treats lease nonrenewal as good cause when a household has earned over 140% of area median income for two straight years and 30% of its monthly income exceeds the applicable fair market rent.
• Applies only to qualified low-income buildings where all units except manager units are restricted to lower-income households under an enforceable government regulatory agreement.
• Requires owners to give written notice within 30 days of an income certification showing income above 140% of area median income.
• Requires owners who elect nonrenewal to give at least 90 days' notice before the lease ends, state the good-cause basis, and cite the law.

Who it affects ​

• Tenants in fully lower-income-restricted low-income housing tax-credit projects whose incomes rise above the specified thresholds.
• Owners of qualifying low-income housing projects.

Context ​

Fair market rent is the higher of the countywide or ZIP Code-level amount set annually by the United States Department of Housing and Urban Development.