Administrative, Procedural, and Miscellaneous

Agency decision

Ask Donna

What actually matters in this document.

Text

Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.601: Rules and Regulations

(Also Part 1, §§ 25, 143, 6a.103A-1(b)(4), 6a.103A-2(f)(5).)

Rev. Proc. 2024-21

SECTION 1. PURPOSE

This revenue procedure provides issuers of qualified mortgage bonds, as defined in

§ 143(a) of the Internal Revenue Code (Code), and issuers of mortgage credit

certificates, as defined in § 25(c), with (1) the nationwide average purchase price for

residences located in the United States, and (2) average area purchase price safe

harbors for residences located in statistical areas in each state, the District of Columbia,

Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and

Guam. Section 7 of this revenue procedure requests comments on the available data

and method used for calculating the average area purchase price safe harbors.

SECTION 2. BACKGROUND

.01 Section 103(a) provides that, except as provided in § 103(b), gross income does

not include interest on any State or local bond. Section 103(b)(1) provides that § 103(a)

shall not apply to any private activity bond that is not a "qualified bond" within the

meaning of § 141. Section 141(e) provides, in part, that the term "qualified bond"

means any private activity bond if such bond (1) is a qualified mortgage bond under

§ 143, (2) meets the volume cap requirements under § 146, and (3) meets the

applicable requirements under § 147.

.02 Section 143(a)(1) provides that the term "qualified mortgage bond" means a

bond that is issued as part of a qualified mortgage issue. Section 143(a)(2)(A) provides

that the term "qualified mortgage issue" means an issue of one or more bonds by a

State or political subdivision thereof, but only if: (i) all proceeds of the issue (exclusive of

issuance costs and a reasonably required reserve) are to be used to finance owneroccupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e),

(f), (g), (h), (i), and (m)(7) of § 143; (iii) the issue does not meet the private business

tests of paragraphs (1) and (2) of § 141(b); and (iv) with respect to amounts received

more than 10 years after the date of issuance, repayments of $250,000 or more of

principal on mortgage financing provided by the issue are used by the close of the first

semiannual period beginning after the date the prepayment (or complete repayment) is

received to redeem bonds that are part of the issue.

Average Area Purchase Price

.03 Section 143(e)(1) provides that an issue of bonds meets the purchase price

requirements of § 143(e) if the acquisition cost of each residence financed by the issue

does not exceed 90 percent of the average area purchase price applicable to such

residence. Section 143(e)(5) provides that, in the case of a targeted area residence (as

defined in § 143(j)), § 143(e)(1) shall be applied by substituting 110 percent for 90

percent.

.04 Section 143(e)(2) provides that the term "average area purchase price" means,

with respect to any residence, the average purchase price of single-family residences

(in the statistical area in which the residence is located) that were purchased during the

most recent 12-month period for which sufficient statistical information is available.

Under §§ 143(e)(3) and (4), respectively, separate determinations of average area

purchase price are to be made for new and existing residences, and for two-, three-,

and four-family residences.

.05 Section 143(e)(2) also provides that the determination of the average area

purchase price shall be made as of the date on which the commitment to provide the

financing is made or, if earlier, the date of the purchase of the residence.

.06 Section 143(k)(2)(A) provides that the term "statistical area" means (i) a

metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not

within an MSA. Section 143(k)(2)(C) further provides that if sufficient recent statistical

information with respect to a county (or portion thereof) is unavailable, the Secretary

may substitute another area for which there is sufficient recent statistical information for

such county (or portion thereof). In the case of any portion of a State which is not within

a county, § 143(k)(2)(D) provides that the Secretary may designate an area that is the

equivalent of a county. Section 6a.103A-1(b)(4)(i) of the Income Tax Regulations

(issued under § 103A of the Internal Revenue Code of 1954, the predecessor of § 143

of the Code) provides that the term “State” includes a possession of the United States

and the District of Columbia.

.07 Section 6a.103A-2(f)(5)(i) provides that an issuer may rely upon the average

area purchase price safe harbors published by the Department of the Treasury

(Treasury Department) for the statistical area in which a residence is located. Section

6a.103A-2(f)(5)(i) further provides that an issuer may use an average area purchase

price limitation different from the published safe harbor if the issuer has more accurate

and comprehensive data for the statistical area.

Qualified Mortgage Credit Certificate Program

.08 Section 25(c) permits a State or political subdivision thereof to establish a

qualified mortgage credit certificate program. In general, a qualified mortgage credit

certificate program is a program under which the issuing authority elects not to issue an

amount of private activity bonds that it may otherwise issue during the calendar year

under § 146, and in its place, issues mortgage credit certificates to taxpayers in

connection with the acquisition of their principal residences. Section 25(a)(1) provides,

in general, that the holder of a mortgage credit certificate may claim a federal income

tax credit equal to the product of the credit rate specified in the certificate and the

interest paid or accrued during the tax year on the remaining principal of the

indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally

provides that residences acquired in connection with the issuance of mortgage credit

certificates must meet the purchase price requirements of § 143(e).

Income Limitations for Qualified Mortgage Bonds and Mortgage Credit Certificates

.09 Section 143(f) imposes limitations on the income of mortgagors for whom

financing may be provided by qualified mortgage bonds. In addition,

§ 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet the

income requirement of § 143(f). Generally, under §§ 143(f)(1) and 25(c)(2)(A)(iii)(IV),

the income requirement is met only if all owner-financing under a qualified mortgage

bond and all mortgage credit certificates issued under a qualified mortgage credit

certificate program are provided to mortgagors whose family income is 115 percent or

less of the applicable median family income. Section 143(f)(5), however, generally

provides for an upward adjustment to the percentage limitation in high housing cost

areas. High housing cost areas are defined in § 143(f)(5)(C) as any statistical area for

which the housing cost/income ratio is greater than 1.2.

.10 Under § 143(f)(5)(D), the housing cost/income ratio with respect to any statistical

area is determined by dividing (a) the applicable housing price ratio for such area by (b)

the ratio that the area median gross income for such area bears to the median gross

income for the United States. The applicable housing price ratio is the new housing

price ratio (new housing average area purchase price divided by the new housing

average purchase price for the United States) or the existing housing price ratio

(existing housing average area purchase price divided by the existing housing average

purchase price for the United States), whichever results in the housing cost/income ratio

being closer to 1.

Average Area and Nationwide Purchase Price Limitations

.11 Average area purchase price safe harbors for each state, the District of

Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin

Islands, and Guam were last published in Rev. Proc. 2023-22, 2023-19 I.R.B. 838.

.12 The nationwide average purchase price was last published in section 4.02 of

Rev. Proc. 2023-22. Guidance with respect to the United States and area median gross

income figures that are used in computing the housing cost/income ratio described in

§ 143(f)(5) was published in Rev. Proc. 2021-19, 2021-15 I.R.B. 1008.

.13 This revenue procedure uses Federal Housing Administration (FHA) loan limits

for a given statistical area to calculate the average area purchase price safe harbor for

that area. FHA sets limits on the dollar value of loans it will insure based on median

home prices and conforming loan limits established by the Federal Home Loan

Mortgage Corporation. In particular, FHA sets an area's loan limit at 95 percent of the

median home sales price for the area, subject to certain floors and caps measured

against conforming loan limits.

.14 To calculate the average area purchase price safe harbors in this revenue

procedure, the FHA loan limits are adjusted to take into account the differences

between average and median purchase prices. Because FHA loan limits do not

differentiate between new and existing residences, this revenue procedure contains a

single average area purchase price safe harbor for both new and existing residences in

a statistical area.

.15 The average area purchase price safe harbors listed in section 4.01 of this

revenue procedure are based on FHA loan limits released November 28, 2023. FHA

loan limits are available for statistical areas in each state, the District of Columbia,

Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and

Guam. See section 3.03 of this revenue procedure with respect to FHA loan limits

revised after November 28, 2023.

.16 OMB Bulletin No. 03-04, dated and effective June 6, 2003, revised the definitions

of the nation’s metropolitan areas and recognized 49 new metropolitan statistical areas.

The OMB bulletin no longer includes primary metropolitan statistical areas.

SECTION 3. APPLICATION

Average Area Purchase Price Safe Harbors

.01 Average area purchase price safe harbors for statistical areas in each state, the

District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the

Virgin Islands, and Guam are set forth in section 4.01 of this revenue procedure.

Average area purchase price safe harbors are provided for single-family and two to

four-family residences. For each type of residence, section 4.01 of this revenue

procedure contains a single safe harbor that may be used for both new and existing

residences. Issuers of qualified mortgage bonds and issuers of mortgage credit

certificates may rely on these safe harbors to satisfy the requirements of §§ 143(e) and

(f). Section 4.01 of this revenue procedure provides safe harbors for MSAs and for

certain counties and county equivalents. If no purchase price safe harbor is available

for a statistical area, the safe harbor for "ALL OTHER AREAS" may be used for that

statistical area.

.02 If a residence is in an MSA, the safe harbor applicable to it is the limitation of that

MSA. If an MSA falls in more than one state, the MSA is listed in section 4.01 of this

revenue procedure under each state.

.03 If the FHA revises the FHA loan limit for any statistical area after November 28,

2023, an issuer of qualified mortgage bonds or mortgage credit certificates may use the

revised FHA loan limit for that statistical area to compute (as provided in the next

sentence) a revised average area purchase price safe harbor for the statistical area

provided that the issuer maintains records evidencing the revised FHA loan limit. The

revised average area purchase price safe harbor for that statistical area is computed by

dividing the revised FHA loan limit by 0.878.

.04 If, pursuant to § 6a.103A-2(f)(5)(i), an issuer uses more accurate and

comprehensive data to determine the average area purchase price for a statistical area,

the issuer must make separate average area purchase price determinations for new

and existing residences. Moreover, when computing the average area purchase price

for a statistical area that is an MSA, as defined in OMB Bulletin No. 23-01, the issuer

must make the computation for the entire applicable MSA. When computing the

average area purchase price for a statistical area that is not an MSA, the issuer must

make the computation for the entire statistical area and may not combine statistical

areas. Thus, for example, the issuer may not combine two or more counties.

.05 If an issuer receives a ruling permitting it to rely on an average area purchase

price limitation that is higher than the applicable safe harbor in this revenue procedure,

the issuer may rely on that higher limitation for the purpose of satisfying the

requirements of §§ 143(e) and (f) for bonds sold, and mortgage credit certificates

issued, not more than 30 months following the termination date of the 12-month period

used by the issuer to compute the limitation.

Nationwide Average Purchase Price

.06 Section 4.02 of this revenue procedure sets forth a single nationwide average

purchase price for purposes of computing the housing cost/income ratio under

§ 143(f)(5).

.07 Issuers must use the nationwide average purchase price set forth in section 4.02

of this revenue procedure when computing the housing cost/income ratio under

§ 143(f)(5) regardless of whether they are relying on the average area purchase price

safe harbors contained in this revenue procedure or using more accurate and

comprehensive data to determine average area purchase prices for new and existing

residences for a statistical area that are different from the published safe harbors in this

revenue procedure.

.08 If, pursuant to section 6.02 of this revenue procedure, an issuer relies on the

average area purchase price safe harbors contained in Rev. Proc. 2023-22, the issuer

must use the nationwide average purchase price set forth in section 4.02 of Rev. Proc.

2023-22 in computing the housing cost/income ratio under § 143(f)(5). Likewise, if,

pursuant to section 6.04 of this revenue procedure, an issuer relies on the nationwide

average purchase price published in Rev. Proc. 2023-22, the issuer must use the

average area purchase price safe harbors set forth in section 4.01 of Rev. Proc. 202322 in computing the housing cost/income ratio under § 143(f)(5).

SECTION 4. AVERAGE AREA AND NATIONWIDE AVERAGE PURCHASE PRICES

.01 Average area purchase prices for single-family and two to four-family residences

in MSAs, and for certain counties and county equivalents are set forth below. The safe

harbor for “ALL OTHER AREAS” (found at the end of the table below) may be used for

a statistical area that is not listed below.

2024 Average Area Purchase Prices for Mortgage Revenue Bonds

State

One-Unit

Limit

Two-Unit

Limit

Three-Unit

Limit

Four-Unit

Limit

ALEUTIANS WEST

HOONAH-ANGOON C

JUNEAU CITY AND

KODIAK ISLAND B

SITKA CITY AND

SKAGWAY MUNICIP

$621,082

$597,497

$630,255

$589,635

$668,253

$597,497

$795,068

$764,874

$806,860

$754,847

$855,455

$764,874

$961,077

$924,559

$975,262

$912,425

$1,034,055

$924,559

$1,194,424

$1,149,020

$1,212,028

$1,133,923

$1,285,120

$1,149,020

COCONINO

MARICOPA

PINAL

$598,807

$604,049

$766,583

$773,305

$926,610

$934,700

$1,151,583

$1,161,667

ALAMEDA

ALPINE

CONTRA COSTA

EL DORADO

INYO

LOS ANGELES

MARIN

MENDOCINO

MONO

MONTEREY

NAPA

NEVADA

ORANGE

PLACER

RIVERSIDE

SACRAMENTO

SAN BENITO

SAN BERNARDINO

SAN DIEGO

SAN FRANCISCO

SAN JOAQUIN

SAN LUIS OBISPO

SAN MATEO

SANTA BARBARA

SANTA CLARA

SANTA CRUZ

SOLANO

SONOMA

STANISLAUS

VENTURA

YOLO

$1,310,101

$573,912

$1,310,101

$870,040

$579,153

$1,310,101

$622,393

$790,111

$1,048,240

$1,159,616

$733,768

$1,310,101

$870,040

$733,768

$870,040

$1,310,101

$733,768

$1,146,513

$1,310,101

$748,182

$1,058,723

$1,310,101

$955,209

$1,310,101

$780,939

$999,759

$589,635

$1,087,550

$870,040

$1,677,470

$734,680

$1,677,470

$1,113,812

$741,402

$1,677,470

$796,777

$1,011,495

$1,341,919

$1,484,514

$939,372

$1,677,470

$1,113,812

$939,372

$1,113,812

$1,677,470

$939,372

$1,467,765

$1,677,470

$957,830

$1,355,364

$1,677,470

$1,222,852

$1,677,470

$999,759

$1,279,879

$754,847

$1,392,280

$1,113,812

$2,027,576

$888,099

$2,027,576

$1,346,362

$896,189

$2,027,576

$963,128

$1,222,681

$1,622,095

$1,794,428

$1,135,461

$2,027,576

$1,346,362

$1,135,461

$1,346,362

$2,027,576

$1,135,461

$1,774,204

$2,027,576

$1,157,793

$1,638,331

$2,027,576

$1,478,133

$2,027,576

$1,208,439

$1,547,066

$912,425

$1,682,939

$1,346,362

$2,519,879

$1,103,672

$2,519,879

$1,673,197

$1,113,756

$2,519,879

$1,196,931

$1,519,493

$2,015,869

$2,230,075

$1,411,137

$2,519,879

$1,673,197

$1,411,137

$1,673,197

$2,519,879

$1,411,137

$2,204,894

$2,519,879

$1,438,824

$2,036,036

$2,519,879

$1,836,984

$2,519,879

$1,501,832

$1,922,667

$1,133,923

$2,091,468

$1,673,197

County Name

ADAMS

ARAPAHOE

BOULDER

BROOMFIELD

CHAFFEE

CLEAR CREEK

DENVER

DOUGLAS

EAGLE

EL PASO

ELBERT

GARFIELD

GILPIN

GRAND

GUNNISON

JEFFERSON

LA PLATA

LARIMER

MONTROSE

OURAY

PARK

PITKIN

ROUTT

SAN JUAN

SAN MIGUEL

SUMMIT

TELLER

WELD

$930,313

$976,174

$930,313

$720,665

$930,313

$1,310,101

$589,635

$930,313

$1,310,101

$930,313

$851,695

$721,976

$930,313

$746,871

$720,665

$639,427

$930,313

$1,310,101

$1,153,065

$589,635

$1,191,063

$1,146,513

$589,635

$638,116

$1,190,949

$1,249,685

$1,190,949

$922,566

$1,190,949

$1,677,470

$754,847

$1,190,949

$1,677,470

$1,190,949

$1,090,341

$924,275

$1,190,949

$956,121

$922,566

$818,596

$1,190,949

$1,677,470

$1,476,139

$754,847

$1,524,791

$1,467,765

$754,847

$816,887

$1,439,622

$1,510,606

$1,439,622

$1,115,180

$1,439,622

$2,027,576

$912,425

$1,439,622

$2,027,576

$1,439,622

$1,317,935

$1,117,231

$1,439,622

$1,155,742

$1,115,180

$989,448

$1,439,622

$2,027,576

$1,784,345

$912,425

$1,843,137

$1,774,204

$912,425

$987,454

$1,789,073

$1,877,319

$1,789,073

$1,385,899

$1,789,073

$2,519,879

$1,133,923

$1,789,073

$2,519,879

$1,789,073

$1,637,876

$1,388,406

$1,789,073

$1,436,317

$1,385,899

$1,229,689

$1,789,073

$2,519,879

$2,217,484

$1,133,923

$2,290,576

$2,204,894

$1,133,923

$1,227,182

FAIRFIELD

$818,938

$1,048,411

$1,267,289

$1,574,924

DISTRICT OF COL

$1,310,101

$1,677,470

$2,027,576

$2,519,879

NEW CASTLE

$635,496

$813,526

$983,409

$1,222,112

BAKER

BROWARD

CLAY

COLLIER

DUVAL

MANATEE

MARTIN

MIAMI-DADE

MONROE

NASSAU

OKALOOSA

PALM BEACH

SARASOTA

ST. JOHNS

$643,358

$707,562

$643,358

$832,041

$643,358

$623,703

$622,393

$707,562

$1,058,723

$643,358

$687,908

$707,562

$623,703

$643,358

$823,609

$905,816

$823,609

$1,065,160

$823,609

$798,429

$796,777

$905,816

$1,355,364

$823,609

$880,636

$905,816

$798,429

$823,609

$995,544

$1,094,899

$995,544

$1,287,513

$995,544

$965,122

$963,128

$1,094,899

$1,638,331

$995,544

$1,064,477

$1,094,899

$965,122

$995,544

$1,237,266

$1,360,719

$1,237,266

$1,600,105

$1,237,266

$1,199,438

$1,196,931

$1,360,719

$2,036,036

$1,237,266

$1,322,891

$1,360,719

$1,199,438

$1,237,266

ST. LUCIE

WALTON

$622,393

$687,908

$796,777

$880,636

$963,128

$1,064,477

$1,196,931

$1,322,891

BARROW

BARTOW

BUTTS

CARROLL

CHEROKEE

CLARKE

CLAYTON

COBB

COWETA

DAWSON

DEKALB

DOUGLAS

FAYETTE

FORSYTH

FULTON

GREENE

GWINNETT

HARALSON

HEARD

HENRY

JASPER

LAMAR

MADISON

MERIWETHER

MORGAN

NEWTON

OCONEE

OGLETHORPE

PAULDING

PICKENS

PIKE

ROCKDALE

SPALDING

WALTON

$740,320

$622,393

$740,320

$602,738

$740,320

$622,393

$740,320

$622,393

$740,320

$947,746

$796,777

$947,746

$771,596

$947,746

$796,777

$947,746

$796,777

$947,746

$1,145,602

$963,128

$1,145,602

$932,706

$1,145,602

$963,128

$1,145,602

$963,128

$1,145,602

$1,423,727

$1,196,931

$1,423,727

$1,159,103

$1,423,727

$1,196,931

$1,423,727

$1,196,931

$1,423,727

HAWAII

HONOLULU

KALAWAO

KAUAI

MAUI

$589,635

$888,384

$1,139,962

$1,172,719

$1,139,962

$754,847

$1,137,284

$1,459,390

$1,501,320

$1,459,390

$912,425

$1,374,733

$1,764,063

$1,814,709

$1,764,063

$1,133,923

$1,708,461

$2,192,304

$2,255,255

$2,192,304

ADA

BLAINE

BOISE

BONNER

CAMAS

CANYON

$668,253

$864,798

$668,253

$596,187

$864,798

$668,253

$855,455

$1,107,090

$855,455

$763,222

$1,107,090

$855,455

$1,034,055

$1,338,216

$1,034,055

$922,566

$1,338,216

$1,034,055

$1,285,120

$1,663,113

$1,285,120

$1,146,513

$1,663,113

$1,285,120

GEM

KOOTENAI

OWYHEE

TETON

VALLEY

$668,253

$652,530

$668,253

$1,310,101

$653,840

$855,455

$835,345

$855,455

$1,677,470

$837,054

$1,034,055

$1,009,729

$1,034,055

$2,027,576

$1,011,780

$1,285,120

$1,254,869

$1,285,120

$2,519,879

$1,257,376

BARNSTABLE

BRISTOL

DUKES

ESSEX

MIDDLESEX

NANTUCKET

NORFOLK

PLYMOUTH

SUFFOLK

$851,695

$838,592

$1,310,101

$982,725

$1,310,101

$982,725

$1,090,341

$1,073,535

$1,677,470

$1,258,059

$1,677,470

$1,258,059

$1,317,935

$1,297,653

$2,027,576

$1,520,746

$2,027,576

$1,520,746

$1,637,876

$1,612,695

$2,519,879

$1,889,909

$2,519,879

$1,889,909

ANNE ARUNDEL

BALTIMORE

BALTIMORE CITY

CALVERT

CARROLL

CECIL

CHARLES

FREDERICK

HARFORD

HOWARD

MONTGOMERY

PRINCE GEORGE'S

QUEEN ANNE'S

$759,974

$1,310,101

$759,974

$635,496

$1,310,101

$759,974

$1,310,101

$759,974

$972,927

$1,677,470

$972,927

$813,526

$1,677,470

$972,927

$1,677,470

$972,927

$1,176,023

$2,027,576

$1,176,023

$983,409

$2,027,576

$1,176,023

$2,027,576

$1,176,023

$1,461,498

$2,519,879

$1,461,498

$1,222,112

$2,519,879

$1,461,498

$2,519,879

$1,461,498

CUMBERLAND

SAGADAHOC

YORK

$622,393

$796,777

$963,128

$1,196,931

ANOKA

CARVER

CHISAGO

DAKOTA

HENNEPIN

ISANTI

LE SUEUR

MILLE LACS

RAMSEY

SCOTT

SHERBURNE

WASHINGTON

WRIGHT

$587,015

$751,486

$908,380

$1,128,909

BROADWATER

CARBON

$568,670

$859,557

$728,014

$1,100,368

$879,952

$1,330,126

$1,093,588

$1,653,030

FLATHEAD

GALLATIN

MISSOULA

PARK

RAVALLI

STILLWATER

YELLOWSTONE

$636,806

$818,938

$622,393

$642,047

$575,222

$859,557

$815,235

$1,048,411

$796,777

$821,957

$736,389

$1,100,368

$985,403

$1,267,289

$963,128

$993,550

$890,093

$1,330,126

$1,224,618

$1,574,924

$1,196,931

$1,234,702

$1,106,179

$1,653,030

CAMDEN

CHATHAM

CURRITUCK

DARE

DURHAM

FRANKLIN

GATES

GRANVILLE

JOHNSTON

ORANGE

PASQUOTANK

PERQUIMANS

PERSON

WAKE

$786,180

$686,598

$786,180

$703,631

$686,598

$602,738

$786,180

$686,598

$602,738

$686,598

$917,210

$686,598

$602,738

$1,006,425

$878,984

$1,006,425

$900,746

$878,984

$771,596

$1,006,425

$878,984

$771,596

$878,984

$1,174,200

$878,984

$771,596

$1,216,586

$1,062,483

$1,216,586

$1,088,803

$1,062,483

$932,706

$1,216,586

$1,062,483

$932,706

$1,062,483

$1,419,340

$1,062,483

$932,706

$1,511,916

$1,320,384

$1,511,916

$1,353,142

$1,320,384

$1,159,103

$1,511,916

$1,320,384

$1,159,103

$1,320,384

$1,763,892

$1,320,384

$1,159,103

BILLINGS

STARK

$579,153

$741,402

$896,189

$1,113,756

DAWSON

GOSPER

$687,908

$880,636

$1,064,477

$1,322,891

ROCKINGHAM

STRAFFORD

$982,725

$1,258,059

$1,520,746

$1,889,909

BERGEN

BURLINGTON

CAMDEN

CAPE MAY

ESSEX

GLOUCESTER

HUDSON

HUNTERDON

MIDDLESEX

MONMOUTH

MORRIS

OCEAN

PASSAIC

SALEM

SOMERSET

SUSSEX

UNION

$1,310,101

$635,496

$1,310,101

$635,496

$1,310,101

$635,496

$1,310,101

$1,677,470

$813,526

$1,677,470

$813,526

$1,677,470

$813,526

$1,677,470

$2,027,576

$983,409

$2,027,576

$983,409

$2,027,576

$983,409

$2,027,576

$2,519,879

$1,222,112

$2,519,879

$1,222,112

$2,519,879

$1,222,112

$2,519,879

LOS ALAMOS

SANTA FE

$712,804

$617,152

$912,539

$790,054

$1,103,045

$954,981

$1,370,802

$1,186,848

CARSON CITY

DOUGLAS

STOREY

WASHOE

$581,773

$749,492

$707,562

$744,763

$959,482

$905,816

$900,233

$1,159,787

$1,094,899

$1,118,826

$1,441,331

$1,360,719

BRONX

KINGS

NASSAU

NEW YORK

PUTNAM

QUEENS

RICHMOND

ROCKLAND

SUFFOLK

WESTCHESTER

$1,310,101

$1,677,470

$2,027,576

$2,519,879

DELAWARE

FAIRFIELD

FRANKLIN

HOCKING

LICKING

MADISON

MORROW

PERRY

PICKAWAY

UNION

$622,393

$796,777

$963,128

$1,196,931

BENTON

CLACKAMAS

CLATSOP

COLUMBIA

DESCHUTES

HOOD RIVER

MULTNOMAH

WASHINGTON

YAMHILL

$681,356

$774,388

$602,738

$774,388

$786,180

$825,489

$774,388

$872,261

$991,328

$771,596

$991,328

$1,006,425

$1,056,786

$991,328

$1,054,336

$1,198,298

$932,706

$1,198,298

$1,216,586

$1,277,429

$1,198,298

$1,310,301

$1,489,242

$1,159,103

$1,489,242

$1,511,916

$1,587,515

$1,489,242

BUCKS

CHESTER

DELAWARE

MONTGOMERY

PHILADELPHIA

PIKE

$635,496

$1,310,101

$813,526

$1,677,470

$983,409

$2,027,576

$1,222,112

$2,519,879

BRISTOL

KENT

NEWPORT

$838,592

$1,073,535

$1,297,653

$1,612,695

PROVIDENCE

WASHINGTON

$838,592

$1,073,535

$1,297,653

$1,612,695

BEAUFORT

BERKELEY

CHARLESTON

DORCHESTER

JASPER

$622,393

$668,253

$622,393

$796,777

$855,455

$796,777

$963,128

$1,034,055

$963,128

$1,196,931

$1,285,120

$1,196,931

LAWRENCE

$617,152

$790,054

$954,981

$1,186,848

CANNON

CHEATHAM

DAVIDSON

DICKSON

MACON

MAURY

ROBERTSON

RUTHERFORD

SMITH

SUMNER

TROUSDALE

WILLIAMSON

WILSON

$1,074,447

$1,375,474

$1,662,658

$2,066,287

ATASCOSA

BANDERA

BASTROP

BEXAR

CALDWELL

COLLIN

COMAL

DALLAS

DENTON

ELLIS

GUADALUPE

HAYS

HUNT

JOHNSON

KAUFMAN

KENDALL

MEDINA

PARKER

ROCKWALL

TARRANT

TRAVIS

WILLIAMSON

WILSON

WISE

$635,496

$651,219

$635,496

$651,219

$642,047

$635,496

$642,047

$635,496

$651,219

$642,047

$635,496

$642,047

$651,219

$635,496

$642,047

$813,526

$833,693

$813,526

$833,693

$821,957

$813,526

$821,957

$813,526

$833,693

$821,957

$813,526

$821,957

$833,693

$813,526

$821,957

$983,409

$1,007,735

$983,409

$1,007,735

$993,550

$983,409

$993,550

$983,409

$1,007,735

$993,550

$983,409

$993,550

$1,007,735

$983,409

$993,550

$1,222,112

$1,252,363

$1,222,112

$1,252,363

$1,234,702

$1,222,112

$1,234,702

$1,222,112

$1,252,363

$1,234,702

$1,222,112

$1,234,702

$1,252,363

$1,222,112

$1,234,702

BOX ELDER

DAVIS

GRAND

JUAB

MORGAN

RICH

SALT LAKE

SUMMIT

TOOELE

UTAH

WASATCH

WASHINGTON

WAYNE

WEBER

$847,764

$691,839

$685,287

$847,764

$660,392

$706,252

$1,310,101

$706,252

$685,287

$1,310,101

$676,115

$1,136,031

$847,764

$1,085,271

$885,649

$877,275

$1,085,271

$845,429

$904,107

$1,677,470

$904,107

$877,275

$1,677,470

$865,539

$1,454,320

$1,085,271

$1,311,896

$1,070,573

$1,060,432

$1,311,896

$1,021,921

$1,092,905

$2,027,576

$1,092,905

$1,060,432

$2,027,576

$1,046,247

$1,757,968

$1,311,896

$1,630,356

$1,330,468

$1,317,878

$1,630,356

$1,270,023

$1,358,212

$2,519,879

$1,358,212

$1,317,878

$2,519,879

$1,300,217

$2,184,727

$1,630,356

ALBEMARLE

ALEXANDRIA CITY

AMELIA

ARLINGTON

CHARLES CITY

CHARLOTTESVILLE

CHESAPEAKE CITY

CHESTERFIELD

CLARKE

COLONIAL HEIGHT

CULPEPER

DINWIDDIE

FAIRFAX

FAIRFAX CITY

FALLS CHURCH CI

FAUQUIER

FLUVANNA

FRANKLIN CITY

FREDERICKSBURG

GLOUCESTER

GOOCHLAND

GREENE

HAMPTON CITY

HANOVER

HENRICO

HOPEWELL CITY

ISLE OF WIGHT

JAMES CITY

KING AND QUEEN

KING WILLIAM

LOUDOUN

MADISON

MANASSAS CITY

MANASSAS PARK C

MATHEWS

$621,082

$1,310,101

$719,355

$1,310,101

$719,355

$621,082

$786,180

$719,355

$1,310,101

$719,355

$1,310,101

$719,355

$1,310,101

$621,082

$786,180

$1,310,101

$786,180

$719,355

$621,082

$786,180

$719,355

$786,180

$719,355

$1,310,101

$786,180

$795,068

$1,677,470

$920,913

$1,677,470

$920,913

$795,068

$1,006,425

$920,913

$1,677,470

$920,913

$1,677,470

$920,913

$1,677,470

$795,068

$1,006,425

$1,677,470

$1,006,425

$920,913

$795,068

$1,006,425

$920,913

$1,006,425

$920,913

$1,677,470

$1,006,425

$961,077

$2,027,576

$1,113,186

$2,027,576

$1,113,186

$961,077

$1,216,586

$1,113,186

$2,027,576

$1,113,186

$2,027,576

$1,113,186

$2,027,576

$961,077

$1,216,586

$2,027,576

$1,216,586

$1,113,186

$961,077

$1,216,586

$1,113,186

$1,216,586

$1,113,186

$2,027,576

$1,216,586

$1,194,424

$2,519,879

$1,383,393

$2,519,879

$1,383,393

$1,194,424

$1,511,916

$1,383,393

$2,519,879

$1,383,393

$2,519,879

$1,383,393

$2,519,879

$1,194,424

$1,511,916

$2,519,879

$1,511,916

$1,383,393

$1,194,424

$1,511,916

$1,383,393

$1,511,916

$1,383,393

$2,519,879

$1,511,916

NELSON

NEW KENT

NEWPORT NEWS CI

NORFOLK CITY

PETERSBURG CITY

POQUOSON CITY

PORTSMOUTH CITY

POWHATAN

PRINCE GEORGE

PRINCE WILLIAM

RAPPAHANNOCK

RICHMOND CITY

SOUTHAMPTON

SPOTSYLVANIA

STAFFORD

SUFFOLK CITY

SUSSEX

VIRGINIA BEACH

WARREN

WILLIAMSBURG CI

YORK

$621,082

$719,355

$786,180

$719,355

$786,180

$719,355

$1,310,101

$719,355

$786,180

$1,310,101

$786,180

$719,355

$786,180

$1,310,101

$786,180

$795,068

$920,913

$1,006,425

$920,913

$1,006,425

$920,913

$1,677,470

$920,913

$1,006,425

$1,677,470

$1,006,425

$920,913

$1,006,425

$1,677,470

$1,006,425

$961,077

$1,113,186

$1,216,586

$1,113,186

$1,216,586

$1,113,186

$2,027,576

$1,113,186

$1,216,586

$2,027,576

$1,216,586

$1,113,186

$1,216,586

$2,027,576

$1,216,586

$1,194,424

$1,383,393

$1,511,916

$1,383,393

$1,511,916

$1,383,393

$2,519,879

$1,383,393

$1,511,916

$2,519,879

$1,511,916

$1,383,393

$1,511,916

$2,519,879

$1,511,916

CHITTENDEN

FRANKLIN

GRAND ISLE

$589,635

$754,847

$912,425

$1,133,923

CHELAN

CLARK

DOUGLAS

ISLAND

JEFFERSON

KING

KITSAP

PIERCE

SKAGIT

SKAMANIA

SNOHOMISH

THURSTON

WHATCOM

WHITMAN

$576,532

$774,388

$576,532

$655,150

$589,635

$1,113,756

$642,047

$1,113,756

$621,082

$774,388

$1,113,756

$622,393

$687,908

$602,738

$738,041

$991,328

$738,041

$838,706

$754,847

$1,425,835

$821,957

$1,425,835

$795,068

$991,328

$1,425,835

$796,777

$880,636

$771,596

$892,144

$1,198,298

$892,144

$1,013,831

$912,425

$1,723,501

$993,550

$1,723,501

$961,077

$1,198,298

$1,723,501

$963,128

$1,064,477

$932,706

$1,108,742

$1,489,242

$1,108,742

$1,259,939

$1,133,923

$2,141,886

$1,234,702

$2,141,886

$1,194,424

$1,489,242

$2,141,886

$1,196,931

$1,322,891

$1,159,103

PIERCE

ST. CROIX

$587,015

$751,486

$908,380

$1,128,909

JEFFERSON

$1,310,101

$1,677,470

$2,027,576

$2,519,879

TETON

$1,310,101

$1,677,470

$2,027,576

$2,519,879

GUAM

$642,047

$821,957

$993,550

$1,234,702

NORTHERN ISLAND

SAIPAN

TINIAN

$597,497

$602,738

$606,669

$764,874

$771,596

$776,666

$924,559

$932,706

$938,802

$1,149,020

$1,159,103

$1,166,680

CULEBRA

$606,669

$776,666

$938,802

$1,166,680

ST. JOHN ISLAND

ST. THOMAS ISLA

$1,206,787

$728,527

$1,544,901

$932,649

$1,867,463

$1,127,371

$2,320,770

$1,401,053

All other areas - 2826

counties (floor):

$567,710

$726,875

$878,614

$1,091,936

.02 The nationwide average purchase price (for use in the housing cost/income ratio

for new and existing residences) is $510,100.

SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2023-22 is obsolete except as provided in section 6 of this revenue

procedure.

SECTION 6. EFFECTIVE DATES

.01 Issuers may rely on this revenue procedure to determine average area purchase

price safe harbors for commitments to provide financing or issue mortgage credit

certificates that are made, or (if the purchase precedes the commitment) for residences

that are purchased, in the period that begins on April 16, 2024, and ends on the date as

of which the safe harbors contained in section 4.01 of this revenue procedure are

rendered obsolete by a new revenue procedure.

.02 Notwithstanding section 5 of this revenue procedure, issuers may continue to

rely on the average area purchase price safe harbors contained in Rev. Proc. 2023-22,

with respect to bonds sold, or for mortgage credit certificates issued with respect to

bond authority exchanged, before May 16, 2024, if the commitments to provide

financing or issue mortgage credit certificates are made on or before June 15, 2024.

.03 Except as provided in section 6.04, issuers must use the nationwide average

purchase price limitation contained in this revenue procedure for commitments to

provide financing or issue mortgage credit certificates that are made, or (if the purchase

precedes the commitment) for residences that are purchased, in the period that begins

on April 16, 2024, and ends on the date when the nationwide average purchase price

limitation is rendered obsolete by a new revenue procedure.

.04 Notwithstanding sections 5 and 6.03 of this revenue procedure, issuers may

continue to rely on the nationwide average purchase price set forth in Rev. Proc. 202322 with respect to bonds sold, or for mortgage credit certificates issued with respect to

bond authority exchanged, before May 16, 2024, if the commitments to provide

financing or issue mortgage credit certificates are made on or before June 15, 2024.

SECTION 7. REQUEST FOR COMMENTS

.01 Comments Regarding Guidance in this Revenue Procedure. The Treasury

Department and the IRS are reviewing the available data sources and method used to

determine the average area purchase price safe harbors listed in section 4.01 of this

revenue procedure and are considering possible changes in the data used to determine

these safe harbors beginning in 2025.

The relationship between safe harbor values calculated under the current

methodology and actual area purchase prices has been growing weaker over the past

decade. The current methodology relies on the FHA single family forward mortgage

limits, which are subject to both a floor and ceiling. Because 87 percent of counties are

subject to the FHA mortgage limit floor and 2 percent of counties are subject to the FHA

ceiling in 2024, most counties have a safe harbor value that does not closely relate to

their average area purchase price under the current methodology.

The Treasury Department and the IRS are considering a shift away from using FHA

mortgage limits as the basis for calculating average purchase prices and using median

purchase prices as reported by the Department of Housing and Urban Development

(HUD) as the basis to make such calculations. The Treasury and IRS solicit public

comments on the use of this data and any alternative data sources that would generate

average area purchase price safe harbors that more closely track area purchase prices.

Implementing such a change using HUD data would lead to large changes in safe

harbors if done in a single year. One approach to implementing this change would be to

phase in the new safe harbor amounts over five years, using the current 2024 values as

a baseline and shifting towards the HUD values over time. The first year would

maintain 80 percent of the 2024 values and 20 percent of values calculated using 2025

HUD data. The second year would be 60 percent of the 2024 values and 40 percent of

the values calculated using 2026 HUD data. The third, fourth, and fifth years would

follow, such that the fifth year would feature 100 percent of actual 2029 price data.

A second approach would instead freeze values at the 2024 levels until such time

when an area’s average purchase price based on HUD data surpasses the frozen

value, after which the safe harbor would follow the HUD data.

The Treasury and IRS also seek comments on these implementation approaches,

as well as any other potential implementation approaches.

.02 Procedures for Submitting Comments.

(1) Deadline. Written comments should be submitted by June 15, 2024.

(2) Form and manner. The subject line for the comments should include a

reference to Revenue Procedure 2024-21. All commenters are strongly encouraged

to submit comments electronically. However, comments may be submitted in one of

two ways:

(a) Electronically via the Federal eRulemaking Portal at www.regulations.gov

(type IRS-2024-0019 in the search field on the regulations.gov homepage to find this

notice and submit comments); or

(b) By mail to: Internal Revenue Service, CC:PA:01:PR (Revenue Procedure

2024-21), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

(3) Publication of comments. The Treasury Department and the IRS will publish

for public availability any comment submitted electronically or on paper to its public

docket on regulations.gov.

SECTION 8. PAPERWORK REDUCTION ACT

The collection of information contained in this revenue procedure has been reviewed

and approved by the Office of Management and Budget in accordance with the

Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1877.

An agency may not conduct or sponsor, and a person is not required to respond to,

a collection of information unless the collection of information displays a valid OMB

control number.

This revenue procedure contains a collection of information requirement in section

3.03. The purpose of the collection of information is to verify the applicable FHA loan

limit that issuers of qualified mortgage bonds and qualified mortgage certificates have

used to calculate the average area purchase price for a given metropolitan statistical

area for purposes of §§ 143(e) and 25(c). The collection of information is required to

obtain the benefit of using revisions to FHA loan limits to determine average area

purchase prices. The likely respondents are state and local governments.

The estimated total annual reporting and/or recordkeeping burden is: 15 hours.

The estimated annual burden per respondent and/or recordkeeper: 15 minutes.

The estimated number of respondents and/or recordkeepers: 60.

Books or records relating to a collection of information must be retained as long as

their contents may become material in the administration of any internal revenue law.

Generally, tax returns and tax return information are confidential, as required by 26

U.S.C. 6103.

SECTION 9. DRAFTING INFORMATION

The principal authors of this revenue procedure are Zoran Stojanovic and David

White of the Office of Associate Chief Counsel (Financial Institutions & Products). For

further information regarding this revenue procedure contact Mr. White at (202) 3174562 (not a toll-free number).

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.