low-income unit
(4) Special rule in case of deep rent skewing (A) In general In the case of any project described in subparagraph (B), the 2d sentence of subparagraph (B) of paragraph (3) shall be applied by substituting— (i) “170 percent” for “140 percent”, and (ii) “any low-income unit in the same project is occupied by a new resident whose income exceeds 40 percent of area median gross income” for “any residential unit of comparable or smaller size in the same project is occupied by a new resident whose income exceeds the applicable income limit”. (B) Deep rent skewed project A project is described in this subparagraph if the owner of the project elects to have this paragraph apply and, at all times during the qualified project period, such project meets the requirements of clauses (i), (ii), and (iii): (i) The project meets the requirements of this clause if 15 percent or more of the low-income units in the project are occupied by individuals whose income is 40 percent or less of area median gross income. (ii) The project meets the requirements of this clause if the gross rent with respect to each low-income unit in the project does not exceed 30 percent of the applicable income limit which applies to individuals occupying the unit. (iii) The project meets the requirements of this clause if the gross rent with respect to each low-income unit in the project does not exceed ½ of the average gross rent with respect to units of comparable size which are not occupied by individuals who meet the applicable income limit. (C) Definitions applicable to subparagraph (B) For purposes of subparagraph (B)— (i) Low-income unit The term “low-income unit” means any unit which is required to be occupied by individuals who meet the applicable income limit. (ii) Gross rent The term “gross rent” includes— (I) any payment under section 8 of the United States Housing Act of 1937, and (II) any utility allowance determined by the Secretary after taking into account such determinations under such section 8.