Income limits for below-market-rate units
This is how the San Francisco Mayor’s Office of Housing and Community Development calculates household income to determine eligibility for its Inclusionary Housing Below Market Rate Ownership Program. For each household, the office will calculate income three ways and use the method that yields the highest annual household income. Method 1: Use the most current pay stub, divide the year-to-date gross income by the current pay period number to get the pay period average. Multiply the pay period average by the total number of pay periods in a year. Method 2: Use the most current pay stub (or the last pay stub received if the applicant currently receives no income) to determine the applicant’s year-to-date gross earnings. Add the year-to-date earnings to the household’s gross income from the most recent year’s income tax return. Divide this number by 12 (to account for last year’s earnings) plus the number of months the applicant’s year-to-date income encompasses. This is the average monthly income. Multiply this number by 12. Method 3: Add the household’s gross income from the two most recent income tax returns. Divide this number by two.