Adjusted income is used to determine a household’s rent and the amount of rental subsidy the household will receive.
Programs that include Adjusted Income:
- HOME requires the determination of adjusted income for rent determination purposes when a HOME assisted household goes over the 80% limit at recertification.
- RD uses adjusted income for purposes of determining income eligibility as well as tenant rent.
- HUD uses adjusted income to determine tenant rent.
Programs that do not include Adjusted Income:
In general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define affordable housing based on other, locally determined criteria, and that this definition is intended solely as an approximate guideline or general rule of thumb.
All amounts, monetary or not, which:
- Go to, or on behalf of, the family head or spouse [or co-head] (even if temporarily absent) or to any other family member; or
- Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and
- Which are not specifically excluded [by regulation]. Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. [24 CFR 5.609]
The HOME Program allows the use of three income definitions for the purpose of determining applicant eligibility:
Annual income as defined in the Code of Federal Regulations (24 CFR 5.609); Annual income as reported under the Census Long Form for the most recent decennial census; or Adjusted gross income as defined for purposes of reporting under Internal
Annual Recertification describes the program requirements and procedures for performing the yearly verification and recertification of family composition and income. Owners must verify family composition and income in order to recalculate the tenant’s Total Tenant Payment (TTP) and tenant rent and the assistance payment provided by HUD.
An assistance animal is an animal that works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability. An assistance animal is not a pet.
The amount HUD pays the owner for a unit occupied by a Section 8, RAP, Rent Supplement, or PAC tenant. It includes HUD’s share of the contract rent and any utility reimbursement due the tenant. It is the gross rent for the unit minus the Total Tenant Payment (TTP). The assistance payment for an occupied PRAC unit is the operating rent minus the TTP.
A checking account is a deposit account held by a financial institution that will allow account holders the opportunity to make deposits and withdrawals.
A Direct Express Debit Card is a payment option for benefit recipients who do not have a bank or credit union. The balance on the Direct Express Debit Card is considered an asset and must be verified, consistent with existing savings account verification requirements.
Includes felony or misdemeanor crimes of violence committed by a current or former spouse of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse, by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person’s acts under the domestic or family violence laws of the jurisdiction.
Earned income means income or earnings from wages, tips, salaries, Military pay
other employee compensation, and net income from self-employment.
Earned income does not include any pension or annuity, transfer
payments (meaning payments made or income received in which no
goods or services are being paid for, such as welfare, social security,
and governmental subsidies for certain benefits), or any cash or in-kind
benefits.
A household composed of one or more persons at least one of whom is 62 years of age or more at the time of initial occupancy.
The dispossession of the tenant from the leased unit as a result of the termination of tenancy, including a termination prior to the end of a lease term.