I am looking at a use agreement between one of our borrowers and HUD. In the agreement it states that:

Moderate income families are "persons or families whose annual incomes do not exceed 100% of Area Median Income"

Low income families are "persons or families whose annual incomes do not exceed 80% of Area Median Income" and

Very low income families are "persons of families whose annual incomes do not exceed 50% of Area Median Income"

These definitions do not agree with those in CRA.

So, my question is in the use agreement it states that "the project shall be used soley as rental housing for Moderate Income Families...The owner may rent to Lower Income and Very Low Income Families." With that said...I don't think that the "project" is serving low to moderate income families as defined by CRA. So...No Community Development Lending credit?

The "project" is in a CRA defined moderate income CT. So...Yes to Community Development Lending credit?

Please help me sort this one out.

Yes to both, I would say that the project is looking for low mod, and since it is in a low mod area you will get credit.

Since the project is not open to just Moderate, which you would then need to prove that there are tenets who have less than 80% median, you will get credit for the project.