§ 4-63Annual income.
§ 4-64Adjusted income.
§ 4-65Computing rent.
Annual income is the anticipated total income from all sources, including net income derived from assets and/or received by the family head, spouse (even if temporarily absent), and each additional family member, including all net income from assets for the twelve-month period following the effective date of initial determination or reexamination of income; and exclusive of income that is temporary, nonrecurring, or sporadic, as defined below, or is specifically excluded from income by other federal statute.
Inclusions. Annual income includes but is not limited to:
The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.
The net income from operation of a business or profession, including any withdrawal of cash or assets from the operation of the business. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining the net income from a business. An allowance for the straight-line depreciation of assets used in a business or profession may be deducted as provided in Internal Revenue Service (IRS) regulations. Withdrawals of cash or assets will not be considered income when used to reimburse the family for cash or assets invested in the business.
Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for the straight-line depreciation of real or personal property, as provided in IRS regulations, is permitted. Withdrawals of cash or assets will not be considered income when used to reimburse the family for cash or assets invested in the property. If the family has net family assets in excess of $5,000, "annual income" shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate as determined by HUD.
The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts. Delayed or deferred periodic payment of social security or supplemental security income benefits are excluded [see § 4-63B(14) below].
Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay. [See § 4-63B(3) below concerning treatment of lump-sum additions as family assets.]
All welfare assistance payments (temporary assistance to needy families, general assistance) received by or on behalf of any family member.
Periodic and determinable allowances, such as alimony and child support payments, and regular cash and non-cash contributions or gifts received from agencies or persons not residing in the dwelling made to or on behalf of family members.
Exclusions. Annual income does not include the following:
Income from the employment of children (including foster children) under the age of 18 years.
Payments received for the care of foster children or foster adults (usually individuals with disabilities, unrelated to the resident family, who are unable to live alone).
Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains, one-time lottery winnings, and settlement for personal property losses. Payments that are or will be periodic in nature are included [see Subsection A(4) and (5) above].
Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member.
Income of a live-in aide.
The full amount of student financial assistance paid directly to the student or the educational institution.
The special pay to a family member serving in the armed forces who is exposed to hostile fire.
Certain amounts received that are related to participation in the following programs:
Amounts received under HUD-funded training programs;
Amounts received by a person with a disability that are disregarded for a limited time for purposes of supplemental security income eligibility and benefits because they are set aside for use under a plan to attain self-sufficiency (PASS);
Amounts received by a participant in other publicly assisted programs that are specifically for or in reimbursement of out-of-pocket expenses incurred to allow participation in a specific program (e.g., special equipment, clothing, transportation, child care, etc.);
A resident services stipend. A resident services stipend is a modest amount (not to exceed $200/month) received by a public housing resident for performing a service for the WHA on a part-time basis that enhances the quality of life in public housing. Such services may include but are not limited to fire patrol, hall monitoring, lawn maintenance, and resident initiatives coordination. No resident may receive more than one such stipend during the same period of time;
Incremental earnings and/or benefits resulting to any family member from participation in qualifying state or local employment training program (including training programs not affiliated with the local government), and training of family members as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the employee training program.
Temporary, nonrecurring, or sporadic income (including gifts).
Reparation payments paid by foreign governments pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era.
Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of the household and spouse).
Adoption assistance payments in excess of $480 per adopted child.
Earned income disallowance. In accordance with 24 CFR 960.255, the WHA will exclude certain incremental earnings and benefits for a limited period of time. This earned income disallowance encourages resident self-sufficiency by rewarding certain residents who go to work or have increased earnings.
Qualification. A "qualified family" is defined as a family residing in public housing whose annual income increases as a result of:
Employment of a family member who was unemployed for one or more years previous to employment; ("previously unemployed" includes a person who has earned, in the 12 months previous to employment, no more than would be received for 10 hours of work per week for 50 weeks at the established minimum wage).
Increased earnings by a family member during participation in any economic self sufficiency or other job training program.
New employment or increased earnings of a family member during or within six months after receiving assistance, benefits or services under any state program for temporary assistance for needy families funded under Part A of Title IV of the Social Security Act, as determined by the WHA in consultation with the local agencies administering temporary assistance for needy families (TANF) and welfare-to-work (WTW) programs. The TANF program is not limited to monthly income maintenance, but also includes such benefits and services as one-time payments, wage subsidies and transportation assistance, provided that the total amount over a six-month period is at least $500.
Disallowance in increase of annual income.
Initial twelve-month exclusion. During the cumulative twelve-month period beginning on the date a member of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the WHA will exclude from the annual income of a qualified family any increase in income of the family member as a result of employment over prior income of that family member.
Second twelve-month exclusion and phase-in. During the second cumulative twelve-month period after the date a member of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the WHA must exclude from annual income of a qualified family 50% of any increase in income of such family member as a result of employment over income of that family member prior to the beginning of such employment.
Maximum four-year disallowance. The disallowance of increased income of an individual family member as provided above is limited to a lifetime forty-eight-month period; inapplicable at admission. The disallowance of increases in income as a result of employment under this section does not apply for purposes of admission to the program (including the determination of income eligibility and income targeting).
Deferred periodic payments of supplemental security income and social security benefits that are received in a lump sum payment or prospective monthly amounts.
Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit.
Amounts paid by a state agency to a family with a developmentally disabled family member living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home.
Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under the United States Housing Act of 1937. (A notice will be published by HUD in the Federal Register identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary.)
The following are benefits excluded by other federal statute:
| The value of the allotment provided to an eligible household for coupons under the Food Stamp Act of 1977 [7 U.S.C. § 2017(h)] | ||
| Payments to volunteers under the Domestic Volunteer Service Act of 1973 [42 U.S.C. § 5044(g), 5088], to include: | ||
| - | The Retired Senior Volunteer Program (RSVP), Foster Grandparent Program (FGP), Senior Companion Program (SCP), and the Older American Committee Service Program; | |
| - | National Volunteer Antipoverty Programs such as VISTA, Peace Corps, Service Learning Program, and Special Volunteer Programs; and | |
| - | Small Business Administration Programs such as the National Volunteer Program to Assist Small Business and Promote Volunteer Service to Persons with Business Experience, Service Corps of Retired Executives (SCORE), and Active Corps of Executives (ACE). | |
| Payments received under the Alaska Native Claims Settlement Act [43 U.S.C. § 1626(a)] | ||
| Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes [(25 U.S.C. § 459e] | ||
| Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program [42 U.S.C. § 8624(f)] | ||
| Payments received under programs funded in whole or in part under the Job Training Partnership Act [29 U.S.C. § 1552(b)] | ||
| Income derived from the disposition of funds of the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 State 2503-04) | ||
| The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the Court of Claims (25 U.S.C. § 1407-08), or from funds held in trust for an Indian tribe by the Secretary of Interior (25 U.S.C. §§ 117b, 1407) | ||
| Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the federal work-study program or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. § 1087uu) | ||
| Examples of Title IV programs include but are not limited to: Basic Educational Opportunity Grants (Pell Grants), Supplemental Opportunity Grants, State Student Incentive Grants, College Work Study, and Byrd Scholarships | ||
| Payments received from programs funded under Title V of the Older Americans Act of 1965 [42 U.S.C. § 3056(f)] | ||
| Examples of programs under this act include but are not limited to: Senior Community Services Employment Program (CSEP), National Caucus Center on the Black Aged, National Urban League, Association National Pro Personas Mayores, National Council on Aging, American Association of Retired Persons, National Council on Senior Citizens, and Green Thumb | ||
| Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established in the In Re Agent Orange product liability litigation | ||
| Payments received under the Maine Indian Claims Settlement Act of 1980 (Pub. L. 96-420, 94 Stat. 1785) | ||
| The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. § 9858q) | ||
| Earned income tax credit refund payments received on or after January 1, 1991 [26 U.S.C. § 32(j)] | ||
| Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation | ||
| Allowances, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990 | ||
Anticipating annual income. If it is not feasible to anticipate income for a twelve-month period, the WHA may use the annualized income anticipated for a shorter period, subject to an interim adjustment at the end of the shorter period.
Adjusted income, the income upon which rent is based, means annual income (as defined above) less the following deductions and exemptions:
For each dependent: $480.
For any elderly family or disabled family: $400.
For a family that is not an elderly or disabled family but has a member who is a person with a disability, the WHA shall deduct disability assistance expenses in excess of 3% of the family's annual income. This allowance may not exceed the employment income received by adult family members as a result of the assistance to the person with a disability.
For an elderly or disabled family that has no disability assistance expenses, the WHA will deduct medical expenses equal to the amount by which the family's medical expenses exceed 3% of annual income.
For an elderly or disabled family member that has disability assistance expenses greater than or equal to 3% of annual income, the WHA shall deduct disability assistance expenses in excess of 3% of annual income (not to exceed the employment income received by adult family members as a result of the assistance to the person with a disability), as well as an allowance for medical expenses that equal the family's medical expenses.
For an elderly or disabled family that has disability assistance expenses that are less than 3% of annual income, the WHA will deduct the combined disability assistance expenses and medical expenses less 3% of annual income.
Child-care expenses. A deduction of amounts anticipated to be paid by the family for the care of children under 13 years of age for the period for which annual income is computed, BUT ONLY when such care is necessary to enable a family member to be gainfully employed, to seek employment or to further his/her education. Amounts deducted must be unreimbursed expenses and shall not exceed: the amount of income earned by the family member released to work or an amount determined to be reasonable by WHA when the expense is incurred to permit education or to seek employment.
Court-ordered child support payments for any child not living in the household, up to a maximum of $480 per year/per child (with proof of payment record).
Court-ordered alimony payments up to a maximum of $550 per year/per spouse (with proof of payment record).
Any portion of earned income that a household pays to obtain employer-supplied health insurance, including, but not limited to, dental and vision care. Health insurance does not include disability insurance (short-term or long-term, accident insurance, cancer insurance, etc.).
The first step in computing rent is to determine each family's total tenant payment. Then, if the family is occupying a unit that has tenant-paid utilities, the utility allowance is subtracted from the total tenant payment. The result of this computation, if a positive number, is the tenant rent. If the total tenant payment less the utility allowance is a negative number, the result is the utility reimbursement, which may be paid to the tenant or directly to the utility company by the WHA.
Determination of total tenant payment. Total tenant payment is the highest of 30% of adjusted monthly income or 10% of monthly income, but never less than the minimum rent and never more than the flat rent, if chosen by the family.
Determination of tenant rent. Tenant rent is computed by subtracting the utility allowance for tenant-supplied utilities (if applicable) from the total tenant payment. In developments where the WHA pays all utility bills directly to the utility supplier, tenant rent equals total tenant payment.
Minimum rent. The minimum rent shall be $50 per month, but a hardship exemption shall be granted to residents who can document that they are unable to pay the $50. (See Article XIV of this chapter.)
Earned income disallowance. In the case of a family who has qualified for the income exclusion [see Article XV, § 4-63B(13) of this chapter], upon the expiration of the initial twelve-month period described in that section, an additional rent benefit accrues to the family. If the family member's employment continues, then for the twelve-month period following the twelve-month period of disallowance, the resulting rent increase will be capped at 50% of the rent increase the family would have otherwise received.
