ANNOUNCES NEW EARNED INCOME DISREGARDS FOR
CALCULATING RENT FOR PERSONS WITH DISABILITIES
to encourage persons with disabilities to return to work, the Department of
Housing and Urban Development (HUD) announced a proposal to expand the
"earned income disregard" to the calculation of income for persons
with disabilities in four HUD programs, including the Section 8 programs.
In HUD housing programs, the household’s rent is figured by a percentage of the household income. In these new regulations HUD plans to exclude from the calculation of annual income increases in income that result from employment to four programs:HOME;
Housing Choice Voucher Program (which is the merged Section 8 certificate and voucher programs, the Section 8 tenant-based programs);
Housing Opportunities for Persons with AIDS (HOPWA), and
Act Homeless Assistance.
extension is only for persons with disabilities.
A disabled family residing in housing in the one of the programs listed above 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 (that is defined as not earning more than about $2,625/year); or
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
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 TANF.
How will HUD calculate the rent?HUD will exclude all income from earnings for one year from the date a member of a household who is a person with a disability is first employed or the family first experiences an increase in annual employment.
During the second twelve months after the member of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the public housing authority must exclude fifty percent of any increase in income of such family member as a result of employment.
The disallowance of increased income from employment is limited to a lifetime 48 month period.
The disallowance of income does not apply for purposes of admission to the program.
The proposed regulations also extend certain mandatory deductions in calculating family adjusted income to other HUD programs that serve persons with disabilities. Those disability related deductions, (medical and attendant care expenses) would be extended to non-public housing and non-Section 8 housing programs. THESE REGULATIONS WILL TAKE EFFECT ON APRIL 20, 2001.
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