HUD assisted residents of the responsibilities and rights regarding income disclosure and verification. Since some of the requirements vary by program, residents should consult their PHA to determine the specific policies that apply. The Department of Housing and Urban Development’s studies hud home investment partnership program that many resident families pay the incorrect amount of rent.
PHAs and residents all have a responsibility in ensuring that the correct family payment is paid. Paying the correct amount eliminates fraud, waste, and abuse. A family’s income before any taxes or other exclusions or deductions have been taken out of it. PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period. What Counts as Annual Income for Calculation of Family Payment?
The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. 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 depreciation is permitted only as authorized in above section.
Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount. Payments in place of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay. All regular pay, special pay and allowances of a member of the Armed Forces. Amounts received under a resident service stipend.
PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA’s governing board. Deferred periodic amounts from supplemental security benefits that are received in a lump sum amount or in prospective monthly amounts. 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 any program to which the exclusions are set forth.
The value of the allotment provided under the Food Stamp Act of 1977. Income derived from the disposition of funds to the Grand River Band of Ottawa Indians. 2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. Certain amounts will not be counted in determining a qualifying family’s rent for a specific period of time. During the first 12 months after a qualified family member starts working, 100 percent of the incremental increase of that family member’s income is disallowed. The incremental increase is the amount of earned income that exceeds that family member’s income prior to starting work.
In the second cumulative 12-month period after the date of first employment, 50 percent of the incremental increase in income is disallowed. Total time of benefit is limited to a lifetime 48-month period. If offered, the family makes the choice whether or not to participate. Deductions are amounts that are subtracted from a family’s Annual Income to produce Adjusted Income. There are two types of deductions: mandatory and permissive. This deduction may not exceed the income received. PHAs may establish other deductions as they wish but should understand that HUD does not provide any additional operating subsidy and the PHA must establish a written policy for the deductions.