40-60 Test means 40% or more of the residential units in a Development are to be occupied by individuals whose income is 60% or less of area median gross income (as that term is defined in Section 142(d)(2)(B) of the Code).
To be a low-income unit for purposes of determining the qualified basis, the tenant must have income at or below 50 percent of the applicable MTSP limits if the 20/50 Test is elected or 60 percent of MTSP limits if the 40/60 Test is elected.
Pursuant to Section 142(d)(1) of the Code, the Issuer hereby elects, and the Borrower hereby agrees, that the 40-60 Test of subparagraph (B) of such Section 142(d)(1) of the Code shall apply to the Project.
Non-residential use fee (i.e. additional fees charged for parking, etc.); 20/50 Test, Section 42 of the Code, OR 40/60 Test, Section 42 of the Code (also known as the minimum set-aside); Partnership Agreement; Management Agreement; Evidence of Fair Housing Compliance; Copies of reports submitted to ADFA (such as occupancy status reports); and Change in Ownership documentation, if applicable 12 Bank statements to confirm amounts in operating reserve account and replacement reserve accounts.
To be a HTC unit for purposes of determining the qualified basis, the tenant must have income at or below 50 percent of AMGI if the 20/50 Test is elected, or 60 percent of AMGI if the 40/60 Test is elected.