HOMEfires - Vol. 5 No. 3, July, 2003
What is the impact of the regulations amending the calculation of
annual income and adjusted income for disabled families and for
families with members who are persons with disabilities on income
and rent calculations for the HOME Program?
HUD published a final rule on March 29, 2000, effective April 28,
2000, that revised the admissions and occupancy requirements for
the Public Housing and Section 8 programs. The amendments included
revisions to the regulations in 24 CFR Part 5, Subpart F covering
annual income and adjusted income. Because the HOME regulations
permit the use of the Section 8 calculation of annual income and
require the use of this regulation for determining "adjusted income,"
the changes also covered the HOME program.
January 19, 2001, HUD published a final rule, effective April 20,
2001, amending 24 CFR Part 5, Subpart F and other regulations to
expressly make some of the regulatory changes concerning income
for the Public Housing and Section 8 programs applicable to the
HOME program and to other HUD programs. The regulatory amendments
affect the calculations for both disabled families and for families
with one or more members who are persons with disabilities. The
term "disabled family" is defined at 24 CFR � 5.403 as a family
"whose head, spouse, or sole member is a person with disabilities.
It may include two or more persons with disabilities living together,
or one or more persons with disabilities living with one or more
live-in aides." This regulation also includes a definition of "person
with disabilities" which must be used for income calculations. This
definition is different from the definition in the HOME program
regulation at 24 CFR � 92.2 because the definition in Part 5, Subpart
F is based on the definition in section 3 of the United States Housing
Act of 1937 and the HOME definition is based on the definition in
section 811 of Cranston-Gonzalez National Affordable Housing Act
- the Supportive Housing For Persons with Disabilities program.
Mandatory Deduction of Amounts for Adjusted Income Determinations,
§ 5.611: HOME participating jurisdictions (PJs) are required
to use the adjusted income of the family to:
calculate the maximum HOME subsidy for the family under a
HOME-funded tenant-based rental assistance program (§
to determine the Low HOME Rent if the rent is based on 30
percent of the family's adjusted income (§ 92.252(b)(2));
to determine the rent for the family residing in a HOME unit
if the family's income increases so that the family is no
longer low-income and the rent is increased to 30 percent
of the family's adjusted income (§ 92.252(i)(2)).
Under § 5.611 as amended, each PJ is required to deduct
the following amounts from annual income when computing adjusted
for each dependent.
for any elderly family or disabled family.
sum of the following, to the extent the sum exceeds three
percent of annual income:
medical expenses of any elderly family or disabled family;
reasonable attendant care and auxiliary apparatus expenses
for each member of the family who is a person with disabilities,
to the extent necessary to enable any member of the family
(including the person who is a person with disabilities)
to be employed. This deduction may not exceed the earned
income received by family members who are 18 years of
age or older and who are able to work because of such
attendant care or auxiliary apparatus.
reasonable child care expenses necessary to enable a member
of the family to be employed or to further his or her education.
Note that the revision to this regulation clarified the unreimbursed
medical expenses and the unreimbursed attendant care and auxiliary
apparatus expenses are added together and the amount exceeding
three percent of annual income is deducted from annual income.
These mandatory amounts must be deducted from annual income
to determine adjusted income irrespective of the definition
of annual income used by the participating jurisdiction (§
Self-Sufficiency Incentives for Persons with DisabilitiesDisallowance
of Increase in Annual Income, § 5.617: This regulation
requires PJs to disallow, i.e., exclude from annual income, certain
increases in income of a disabled member of qualified families
residing in HOME-assisted housing or receiving HOME tenant-based
rental assistance in order to further the economic self-sufficiency
of the family. 24 CFR § 5.617(a) defines a "qualified
disabled family residing in housing assisted under one of the
programs listed in paragraph (a) of this section [HOME, HOPWA,
Supportive Housing Program, and Housing Choice Voucher programs]
or receiving tenant-based rental assistance under one of the
programs listed in paragraph (a) of this section:
- Whose annual income increases as a result of employment
of a family member who is a person with disabilities and who
was previously unemployed for one or more years prior to employment;
- Whose annual income increases as a result of increased
earnings by a family member who is a person with disabilities
during participation in any economic self-sufficiency or other
job training program; or
- Whose annual income increases, as a result of new employment
or increased earnings of a family member who is a person with
disabilities, 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 responsible entity [PJ] in consultation with the local
agencies administering Temporary Assistance for Need 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."
exclusions from annual income are of limited duration under §
5.617(c). The full amount of increase to a qualified family's annual
income is excluded for the cumulative twelve-month period beginning
on the date the disabled family member is first employed or the
family first experiences an increase in annual income attributable
to employment, as specified under § 5.617(b). During the second
cumulative twelve-month period, the PJ is required to exclude from
annual income fifty percent of any increase in income. The disallowance
of increased income of an individual family member who is a person
with disabilities is limited to a lifetime 48-month period.
exclusions pertain only to the annual re-examination of income,
and not to the initial determination of a family's annual income.
The HOME regulations were amended to require PJs to disallow this
income. A new paragraph, (d)(3), has been added to the HOME regulations
at § 92.203 that provides: "The participating jurisdiction
must follow the requirements of § 5.617 when making subsequent
income determinations of persons with disabilities who are tenants
in HOME-assisted rental housing or who receive tenant-based rental
may obtain additional information about the HOME program from the HOME
program web page.