On Aug. 31, 2018, a Federal Register published a Proposed Rule to seek comments on the following proposed changes:

1. Revising the definition of very low-, low-, and moderate-income
   to allow for a two-tier income limit structure (also known as income
   banding) within the single family housing direct loan and grant
   programs.
2. Clarifying that net family assets are not considered when
   calculating repayment income, and that net family assets exclude
   amounts in voluntary retirement accounts, tax advantaged college,
   health, or medical savings or spending accounts, and other amounts
   deemed by the agency not to constitute net family assets.
3. Revising the methodology used to determine the area loan limits
   to use a percentage(s), as determined by the agency, of the applicable
   local HUD section 203(b) limit.
4. As a result of income banding, converting borrowers currently
   receiving payment assistance method 1 to payment assistance method 2
   should they receive a subsequent loan.
5. Revising the definition of low-income to allow for the two-tier
   income limit structure (income banding) within the single family
   housing guaranteed loan program.

Comments on the proposed rule must be received on or before Oct. 30, 2018