The proposed legislation, General Assembly Raised Bill No. 6950, aims to amend the income threshold regulations for tenants renting units in set-aside developments. Specifically, it modifies the definition of "set-aside development" to require that at least thirty percent of the dwelling units be sold or rented at prices that ensure tenants pay no more than thirty percent of their annual income, which must be less than or equal to eighty percent of the median income, with an exception noted in subdivision (1) of subsection (d). Additionally, it stipulates that at least fifteen percent of the units must be allocated to families earning less than or equal to sixty percent of the median income.

Furthermore, the bill introduces a provision allowing tenants to continue renting their deed-restricted units for up to three years after their income exceeds the applicable thresholds of sixty or eighty percent of the median income. It also establishes that if the maximum monthly housing cost exceeds certain limits based on the Section 8 fair market rent, it must be adjusted to not exceed those limits. The changes are set to take effect on July 1, 2025, and aim to provide greater stability for tenants in set-aside developments as their income increases.