(October 2007)

Income Includes:

Annual income refers to all gross amounts received (before taxes or other deductions), monetary or not, which are

• Received by, or paid on behalf of, the family head of household, co-head, or spouse (even if temporarily absent), or to any other family member over 18 years of age,
• Acquired through assets owned by dependent family members; and/or anticipated to be
• Received from a source outside the family during the 12-month period following admission or re-examination; and/or
• Derived during the 12-month period from accessible assets; and
• Not specifically excluded by HUD.
  

Adoption Assistance Payments - Include only the first $480 per year for each adopted child.

Annuities - A written contract establishing a right to receive specified, periodic payments for life or for a term of years. If one lump sum is received, the payment is considered an asset, not income.

Business and Property Income – Include net income (gross income less allowable expenses) from the operation of a business or profession (including self-employment) or from rental, real, or personal property.

• Allowable expenses include interest payments on loans, straight-line depreciation of assets (as allowed by the IRS), etc.
  
• Costs for business expansion or improvements are not allowable expenses.
  
• Withdrawal of cash or assets from the operation of a business or profession is included as income except when the withdrawal is for reimburse­ment of amounts the family invested in the business.
  

Child Support and Alimony - Child support and alimony generally qualify, as “irregular income” because large arrearages in payments owed to HCV recipients is common. Unless the HA can verify that payments are made at the full court-awarded amount on a regular basis, calculations of child support and alimony received must be handled as “irregular income ” calculations. The HA should directly ask the applicant/participant if there is an arrearage and explain that calculations must be based on actual income received. Failure to calculate child support and alimony in this manner often penalizes the tenant for income not received (when the court-awarded amount is higher than actual payments received).

• It is imperative that the HA obtain as much information as possible from the list of acceptable verifications shown below before calculating such income. The HA must watch for court-imposed fees added to the amount of child support/alimony collected by Friend of the Court. Do not include these fees in income calculations.
  
• The tenant always has the right to request an interim revision if an income change occurs during the course of a re-examination period. If child support/alimony income is calculated inaccurately due to an arrearage not taken into account, or an arrearage develops subsequent to an annual re-examination, the HA will process an interim revision upon request of the tenant. If a year-to-date total of child support/alimony is shown on the verification provided, the income must be annualized. HA may use Verification of Child Support Income (MSHDA 482).
  

Child support/alimony verification includes:

• Copy of separation or divorce settlement stating amount and type of support and payment schedules (use court-awarded amount only if payments made agree with amount ordered by the court and are made as frequently as required by the court);
• Printout from Friend of Court (FOC) or Department of Human Services (DHS) office;
• A notarized letter from the person paying the support;
• Review/copies of original checks stubs (record date, amount and check number);
• Family self-certification
  

When verifying child support, follow TPV hierarchy. Verification must include the name, court numbers if available, frequency, and amounts. Explain if using average of child support payment versus court ordered amount, and show calculations.

• If UIV is not obtainable then written TPV may be requested from the source.

Written TPV:

• Written verification can be a copy of the separation or divorce agreement provided by ex-spouse or court indicating type of support, amount, and payment schedule.
• Written statement provided by ex-spouse or income source indicating the type of support, amount and payment schedule.
• If applicable, written statement from court/attorney that payments are not being received.
• If UIV and written TPV are not obtained then HA must move on to oral TPV.

Oral TPV:

• After you have exhausted the written third party verification process you can go to oral. Telephone or in person contact the ex-spouse or income source and document the file.
• If UIV, written, and oral TPV are not obtained, the HA reviews original documents provided by family as verification of income/assets/deductions.

Original Documents:

• After the oral verification process, from the tenant, you can accept copies of the most recent checks, recording date, amount and check numbers or you may review an original court order, notice or printout from the Local Child Support enforcement agency. The file must be documented by HA with the reason the third party verification was not available on the MSHDA 78 or 77.
  

Family self-certification.

Verification must include the name, court numbers if available, frequency, and amounts. Explain if using average of child support payments versus court ordered amount, and show calculations.

Exceptions to the third party verification:

• If you skipped over the written third party verification process due to recognizing the name of the source as refusing to cooperate with our request, you still have to have proper income verification for the file.
• The file must be documented with the reason the third party verification was not available.
• Verification should be a detailed letter from the source identifying they are unable to comply with our request for verification of child support. This verification should be on letterhead, dated, and signed.

Calculating Child Support Income

It is important that the HA annualize actual child support/alimony income received, rather than the court-ordered amount owed a client when payments are in arrears. The HA should directly ask the applicant/participant if there is an arrearage, and explain that calculations must be based on actual income received, rather than the court-ordered amount. The applicant/participant should provide the required year-to-date total needed to annualize income, since it is to the client’s benefit to provide accurate information in such cases.

If the HA determines and can appropriately verify that the tenant will receive a payment(s) within the next twelve months, the amount should be included in annual income. If the HA can verify through the tenant or agency making the payments that the tenant will not receive such payment(s) the following year, then this amount should not be included when calculating annual income.

Example 1: Acceptable Verification

• Date/Time
• Source name is identified on the verification
• All amounts are highlighted or marked to indicate which amounts are used for the calculation
• Copy of calculation tape is attached
• Calculations are carried out to yearly income
• Days, weeks, Months, and years are noted
• All codes have a key to identify what they stand for

Example 2: Acceptable Verification

• MSHDA 482 completely filled out

Example 3: Unacceptable Verification

• Amounts are not marked to identify what amounts were used in the calculations
• Calculations were not fully carried out to yearly income.
• Days, weeks, Months, and years were not present
• Lacks information in general

Death Benefits – See Item entitled "Retirement Funds, Pensions, Periodic Payments, Disability or Death Benefits, and Veterans Payment" and item entitled "Social Security, SSI, and Other SSA benefits".

Dependent Income - The following income must be included:

• Unearned income of minors, such as Social Security or SSI benefits;
• Income from assets owned by minors;
• For each full-time student age 18 or older, count earned income up to a maximum of $480 per year. If the student is the head of household, co-head, or spouse, count all income. Students must provide School Verification (MSHDA 55) and Verification of Earnings (MSHDA 49).
• Refer to the section on Chapter IV. Income Excludes, Earned Income Disregard for procedures to follow when a dependent with disabilities has earned income.

Educational Assistance - Any financial assistance

• under the Higher Education Act of 1965 (e.g. Pell Grants, federal work study program, Federal Supplement Educational Opportunity Grants, Academic Achievement Incentive Scholarships, State Assistance under the Leveraging Educational Assistance Partnership Program);
• from private sources (non-governmental sources of assistance) such as a trust, or a corporation, or an individual (parent, guardian, or other family member whether residing within the family in the HCV assisted unit or not, and/or from other persons not residing in the unit);
• or, from an institution of higher education as deined by the Higher Education Act of 1965 in 20 U.S.C. 1001 and 1002;

that an individual (full or part-time student) receives in excess of amounts received for tuition shall be considered income to that individual.

Financial assistance described above is not considered annual income for persons over the age of 23 with dependent children.

Financial assistance does not include loan proceeds.

Athletic Scholarship: In accordance with the FY 2005 Appropriations Act, it is required that the portion of any athletic scholarship assistance available for housing costs be verified by MSHDA with the third party income source and included in the determination of family adjusted income. MSHDA will deny housing assistance to those college students receiving athletic scholarship assistance with $5,000 or more annually available for housing costs.

Gifts and Contributions - Any gift or contribution received on a regular and on-going basis is considered income.

• The amounts are considered income even if not monetary (food, vehicle payments, rent or utility payments, etc.).
• If the family’s expenses exceed its known income, HA will inquire about gifts and contributions. HA may have tenant complete and return the Verification of Income from Contributions (MSHDA 486) to verify contributions.
• Do not include sporadic gifts or casual contributions.

Insurance Policies – Include payments received on a regular basis as a result of an insurance claim as income. If one lump sum is received, the payment is considered an asset, not income.

Interest and Dividends from Family Assets – Include withdrawal of cash or assets from an investment as income except when the withdrawal is reimbursement for cash or assets invested by the family.

Calculating Interest and Dividends from Family Assets:

• Include the actual income from assets as income when family assets are $5,000 or less.
• When family assets are more than $5,000, use the greater of:
• Actual income from assets, or
• Imputed income from assets based upon passbook rate determined by HUD. (To calculate imputed income, multiply total cash value of assets by current HUD approved passbook rate.)

Military Pay - The following income must be included:

• Any military pay including Coast Guard, National Guard, and Reserve pay.
• Veterans Affairs (VA) and GI payments, which are generally received after separation of service.
• Full amount of military pay and allowances of head of household, spouse or co-head, whether or not living in the dwelling unit.
• Full amount for any family member who is identified on the Lease Agreement, Family Composition form, and any subsequent documents and who is temporarily (less than 90 calendar days) away from the home.
• HA may use Verification of Military Pay (MSHDA 485) for TPV.

Retirement Funds, Pensions, Periodic Payments, Disability or Death Benefits, and Veteran’s Payments

• On-going income from these sources is included in income calculations.
• The definition of disability used by the agencies issuing these types of benefits does not match the definition used by HUD. Therefore, receipt of any of these types of benefits is NOT automatic verification of disability for purposes of granting the $400 Elderly/Disabled (ED) allowance. To qualify for the ED allowance, a recipient of these types of benefits must have a Verification of Disability and/or Special Needs form (MSHDA 16) that has been completed by a licensed health care professional on file. The MSHDA 16 needs to be “permanent” or completed annually.
• HA may use Verification of Pension or other Income (MSHDA 483) and/or Verification of Veterans Benefits (MSHDA 484) for TPV.

Self-Employment - Only the net income – Adjusted Gross Income (AGI) less expenses from a business is included in annual income.

• When Federal Income Taxes have been or will be filed:
• Obtain a photocopy of a signed U.S. Individual Income Tax Return (Form 1040) filed by the applicant/participant for the previous year.
• Review all appropriate schedules (Schedule C, Profit or Loss from Business; Schedule E, Rental Property Income; Schedule F, Farm Income; Form 4562 Depreciation and Amortization etc.).
• Add any unallowable expenses back into the AGI. See non-eligible deductions below.

When Federal Income Taxes have not or will not be filed:

• If monthly statements are maintained, a minimum of the four most recent monthly statements is required. The statements must identify profits, losses, and net income, and be signed and dated by the applicant/participant.
• If monthly statements are not maintained, a notarized self-employment certification/statement is required. It must cover at least a four month period and be signed and dated by the applicant/participant.
• Calculate AGI by deducting verified allowable expenses from gross income identified from the self-employment statement.

If the applicant/participant is operating the business from the assisted unit, and an amount is indicated on Schedule C, the following deductions must be added back into the AGI:

• Rent on business property
• Utilities (telephone, electric, gas, etc)
• Expenses for business use of home.
• If the applicant/participant is operating the business from a separate office/business space, expenses for rent or ownership are eligible tax deductions (as allowed and defined by the IRS).

Non-eligible deductions

The following are non-eligible HCV program deductions and need to be added back into the AGI. They are eligible IRS deductions and will appear on Schedule C or other appropriate schedules:

• Depreciation, as identified on Schedule C, in Part II. Depreciation is allowed by the IRS, but is not an out-of-pocket expense; this must be considered as income.
• Payments on loans, including principal and interest.
• Expenses/outlays for business expansion and capital improvements, including interest on business indebtedness.
• Self-employed health insurance deduction on Federal 1040. If the family qualifies for medical expense deductions, add this amount to the medical expenses.
• A few minor costs identified on Schedule C, such as legal and professional services, etc.

Severance Pay – Include payments received.

Social Security (SS), Supplemental Security Income (SSI), and Other Social Security Administration (SSA) Benefits

In an effort to eliminate the time consuming manual requests for benefit verifications from public housing authorities across the nation, SSA provides HUD with benefit information on all current participants and household members who have disclosed a valid social security number. HUD makes this information available to public housing authorities administering the HCV program through the HUD EIV system. The HUD EIV system assists in the verification of SSA benefits by comparing data from the HUD 50058 form to data reported by the SSA. Therefore, this informtion is not available for applicants or participants who just started receiving payments. Verify SSA benefits for participants undergoing re-examination using the HUD EIV system.

If the SS information is not available through the EIV method, the HA should request a current SSA benefit verification letter (dated within 60 days) from each household member that receives SSA benefits so the HA and MSHDA do not incur the cost of a TPV of SSA/SSI benefits. If the participant and/or household members are unable to provide the requested document(s), the applicant/participant/household member should be instructed to call the SSA at 1-800-772-1213 (available 24 hours/7 days a week) to request a benefit verification letter OR, make the request for a benefit verification letter via the SSA internet website at www.ssa.gov. There is no cost for this verification letter to the applicant/participant/household member. From the front page of the Social Security online website, go to the left hand side of the page and under the column "Things You Can Do Online", click on Get a Proof of Income Letter. Upon receipt of the letter, applicant/participant/household member should provide the HA with the original benefit verification letter. The HA should make a copy of the original benefit verification letter, return the original letter to the applicant/participant/household member, and maintain the photocopy of the benefit letter in the tenant file with the date noted as to when the original copy of the benefit letter was viewed.

Social Security Benefits:

• Obtain or view original computer printouts/statements from the SSA office dated within 60 days of the effective date.
• Financial institution statements that reflect direct deposit amounts are not acceptable verification until 28 days have passed and the third party did not respond.
• When calculating annual SS income, always use the gross benefit received, even if Medicare premiums have been deducted.
• See Appendix I for information on calculating Cost of Living Adjustments (COLA). You must show your calculation on the forms and note on the statement that the amounts were increased in accordance with instructions in Appendix I.
• If payments are reduced to make up for an overpayment, use the amount the recipient actually receives, not what they would receive if the adjustment were not being made.
• If benefits are being garnished, there must be documentation as to the duration of the garnishment so income can be calculated correctly for twelve months forward. For example, if there is a garnishment for six months, calculate total yearly benefits using the rate for six months with garnishment and six months without garnishment.
• The definition of disability used by the SSA to determine eligibility for SS benefits does not match the definition used by HUD. Therefore, receipt of SS benefits is NOT automatic verification of disability for purposes of granting the ED allowance. To qualify for the ED allowance, an SS recipient must provide a MSHDA 16 which has been completed by a licensed health care professional. The MSHDA 16 needs to “permanent” or completed annually.

Supplemental Security Income (SSI) - Federal:

• Obtain or view original computer printouts/statements from the SSA office dated within 60 days of the effective date.
• Financial institution statements that reflect direct deposit amounts are not acceptable verification until 28 days have passed and the third party
• See Appendix I for information on calculating Cost of Living Adjustments (COLA). You must show your calculation on the forms and note on the statement that the amounts were increased in accordance with instructions in Appendix I of the PPM.
• Lump sum payments of SSI are not added to income; but should be included as an asset.
• The SSA office adjusts SSI payments according to household income, so fluctuations in SS benefits may occur if the recipient or a household member is employed. For inconsistent payments, average the months identified on the printout (three month minimum/12 month maximum).
• If payments are reduced to make up for an overpayment, use the amount the recipient actually receives, not what they would receive if the adjustment were not being made. (Refer to the section of this Chapter on income verification for more information.)
• The definition of disability applied to SSI recipients is the same definition used by HUD. Therefore, receipt of SSI is automatic proof/verification of disability for the recipient in determining eligibility for the $400 D allowance provided the recipient is under age 65.
• The latest Annual Benefit Statements (i.e. SS, Pension) cannot be dated more than 60 days prior to the transaction effective date. If the benefit timeframe overlaps the benefit increase date (usually January 1), indicate the increased percentage on the document, the justification for the increase (i.e. phone call, memo from management) and include the increased amount in the income calculation.

Supplemental Security Income (SSI) - State:

The data share between MSHDA and the Michigan Department of Human Services (DHS) is a UIV method which matches information on the DHS Data Warehouse to information on the MSHDA Elite data system. It should be used to verify State SSI information. This information is provided by using the Third Party Verification via Michigan Department of Human Services database Form (MSHDA 1795). Access the data share through the Citrix Program Neighborhood. If there is not a match between the MSHDA and DHS Data Share, the HA should forward a Verification of Public Assistance and State Supplemental Security Income (MSHDA 107) to the appropriate DHS office for verification of State SSI. Two attempts must be made to obtain this written TPV. Acceptable written TPV is the completed MSHDA 107 or another current document returned directly to you from the SSA and/or DHS office that verify the income.

• Almost all recipients receiving Federal SSI benefits also receive the State SSI benefit. Because the question regarding receipt of Federal and State SSI benefits is commonly misunderstood by clients when they complete the Household, Income, Asset, and Expense Declaration (MSHDA 1890), the HA must verify that the tenant receives the corresponding State SSI, even if the MSHDA 1890 indicates otherwise.
• HA must document the information stated on the MSHDA 1890 by verifying with the DHS via the MSHDA 107.
• Financial institution statements that reflect direct deposit amounts are not acceptable verification until 28 days have passed and the third party did not respond. Refer to Chapter IV, Income verification.
• The State SSI payment is usually $158 annually and paid quarterly.

Retirement, Survivors, and Disability Income (RSDI):

• RSDI is a form of federal SS benefits for disabled individuals administered by DHS.
• Obtain or view the original computer printouts/statements from the SSA office dated within 60 days of the effective date.
• The definition of disability used by the SSA to determine eligibility for RSDI benefits does not match the definition used by HUD. Therefore, receipt of RSDI benefits is NOT automatic verification of disability for purposes of granting the ED allowance. To qualify for the ED allowance, an RSDI recipient must provide a MSHDA 16 that has been completed by a licensed health care professional.

State Disability Allowance (SDA):

• SDA provides for single people or married couples who have an independent living arrangement (i.e. Housing Choice Voucher), and provides for single people or married couples who live in some type of custodial environment (i.e. adult foster care, nursing home). MSHDA does not provide assistance in custodial environments.
• The definition of disability used by the State to determine eligibility for SDA benefits does not match the definition used by HUD. Therefore, receipt of SDA benefits is NOT automatic verification of disability for purposes of granting the ED allowance. To qualify for the ED allowance, an SDA recipient must provide a MSHDA 16 that has been completed by a licensed health care provider.
• Allowance charts for qualified persons living independently can be found under Tab E of the Appendix.

Calculating Social Security/SSI

To calculate monthly SS payment amounts:

• If the family does not pay Medicare premium, the SS amount must be rounded down to the nearest whole dollar (i.e. $402.20 use $402 x 12 = $4,824) whether or not the verification shows the rounding.
• If the family does pay Medicare premium and is eligible as an ED household (i.e., $400 allowance), use net SS plus the Medicare premium which equals the gross SS amount (i.e. $722 + 43.80 = 765.80 x 12 = $9,190), or
• If the family pays for Medicare premium, but the head of household/spouse/co-head is not ED, use the gross SS amount rounded down to the nearest whole dollar (i.e. $765.80, use $765 x 12 = $9,180).
• See Appendix I for information on calculating Cost of Living Adjustments (COLA). You must show your calculation on the forms and note on the statement that the amounts were increased in accordance with instructions in Appendix I of the PPM.
• Identify each amount and show the calculation and total on the actual verification form/document.
• Do not round monthly Medicare premium or SSI amounts.
• The State SSI payment is usually $168 annually and paid quarterly
• Lump sum SS/SSI deferred payments must be excluded as income and included as an asset for the current re-examination period.
• Inconsistent SS/SSI payments: Calculate an average using the months identified on the computer printout (minimum of three months, maximum of 12 months). If three months of history is not available due to recent receipt of SS/SSI, explain on a MSHDA 77 and use the monthly amount identified on the verification multiplied by 12.
• The SSA office adjusts SSI payments according to household income, so fluctuations in SS benefits may occur if the recipient or a household member is employed. For inconsistent payments, average the months identified on the printout (three month minimum/12 month maximum).
• The latest annual benefit statement (i.e. SS, pension) may not be used if it is dated more than 60 days prior to the transaction date. If the benefit time frame overlaps the benefit increase date (usually January 1), indicate the increased percentage on the document, the justification of the increase (i.e. phone call, memo from management) and include the increased amount in the income calculation.
• If a recipient’s SS benefits are reduced to make up for a prior over-payment, the recipient’s income must be based on the actual amount the SS agency provides. Do not use the amount that would have been provided without the deduction. NOTE: If gross SS does not equal the net SS on the verification document and the balance is greater than the Medicare premium, a recoupment may exist. A letter from the SS office detailing the amount, begin and end dates of the recoupment is the preferred method of verification. If the notice/computer printout identifies past payment history, use an average of the payment history (minimum of three months, maximum of 12 months). If recoupment period is unknown, assume 12 months. If the notice/computer printout does not identify the past payment history, use the family’s net SS/SSI for 12 months. Document on a MSHDA 77.

Need For MSHDA 16 (Verification of Disability and/or Special Medical Needs)

• The definition of disability applied to SSI recipients is the same definition used by HUD. Therefore, receipt of SSI is automatic proof/verification of disability for the recipient in determining eligibility for the $400 D allowance.
• The definition of disability used by the SSA to determine eligibility for SSA, RSDI and SDA benefits does not match the definition used by HUD. Therefore, receipt of these benefits is NOT automatic verification of disability for purposes of granting the ED allowance. For persons under age 62, to qualify for the ED allowance, an SSA, RSDI, or SDA recipient must provide a MSHDA 16 that has been completed by a licensed health care professional.

Stipends - A periodic stipend received by a family member from a non-profit organization for a volunteer service would be included as income unless it is specifically excluded under 24 CFR 5.609(c)(17). Obtain information from the non-profit organization about the source of its funding to determine whether or not the stipend should be included as income. For example, if funding for the stipend is provided under the Domestic Volunteer Services Act of 1973 or the Older Americans Act of 1985, you must exclude it.

Temporary Assistance to Needy Families (TANF) – TANF is commonly known as “Welfare,” “Aid for Dependent Children,” or “ Family Independence Program (FIP)” grant, and is received through DHS. Grants include cash, payments, vouchers, and other forms of benefits designed to meet a family’s ongoing basic needs (i.e. food, clothing, shelter, utilities, and household goods). Benefits also include payments made on behalf of DHS or as a condition of employment or community service and may include child care, transportation assistance, and other supportive services.

Acceptable verification includes:

• DHS caseworker provides completed MSHDA 107,
• A DHS computer printout, or
• Verbal verification (which must be documented on a MSHDA 77). If verbal information is received, the name and title of the individual providing information is required to be documented. Information obtained must be documented on a MSHDA 77.
• Compare grant information to the charts found in the Appendix, Tab E, Flat Grants. Investigate and document any discrepancies to discover unreported income and/or unreported family member changes.

Note: Applicants/participants are not required to apply for welfare benefits.

Benefit Reduction/Sanction (Imputed Welfare)

Imputed welfare income is the amount of annual income not actually received by the family due to a welfare benefit reduction, or sanction; but is included in the family’s annual income for purposes of determining rent.

Note: If the family was not an assisted family at the time of the sanction [(24 CFR 5.615 (c) 5], the imputed welfare income may not be included in annual income.

• Imputed welfare income is used in calculating annual income when welfare benefits are reduced, or sanctioned, for the following reasons:
• Tenant is found by DHS to have engaged in fraud; or
• Tenant failed to participate in an economic self-sufficiency program (i.e. Work First); or
• Tenant failed to comply with work activity requirement(s).
• An Interim re-examination must not be processed in these cases. Verify fraud or noncompliance in writing from DHS, via the MSHDA 107, before denying a family’s request for a re-examination of income and rent reduction.

Note: If a TANF grant is reduced or closed for refusal to work, continue including imputed welfare until employment begins or the tenant receives TANF again.

• The tenant must not be penalized when welfare benefits are reduced, or sanctioned, for the following reasons:
• Expiration of the lifetime limit on receipt of benefits;
• Family complied with DHS program requirements but could not obtain employment;
• The family voluntarily forfeits DHS benefits;
• A reduction in benefits resulting from DHS sanctions.

If imputed welfare income is used in calculating annual income, the HA must obtain written verification from DHS of reduction/sanction of benefits.

• A tenant participant may request an Informal hearing to review the MSHDA determination of the amount of imputed welfare income.

If the family claims that the imputed welfare income has not been correctly calculated and MSHDA denies the family’s request to modify the imputed welfare income amount, the family must receive written notice of such denial and explain the basis for the determined amount of imputed welfare income. The family may request an informal hearing on the determination (CFR 5.615 (d).

• If the imputed welfare income is the only household income, utilize a MSHDA 107 to verify the sanction and amount of the sanction.
• When a TANF grant reflects imputed welfare income, it is offset by the amount of any earned income the family receives after the sanction is imposed.
• If the family’s other income is equal to or greater than sanctioned amounts, the imputed welfare income is reduced to zero.

Examples:

$ 600 Welfare Benefit (prior to sanction)

- 400 TANF benefit after sanction

$ 200 Imputed Income

• Subtract the $400 grant actually received by the tenant after the sanction from the $600 welfare benefit received prior to the sanction. The amount of imputed income is $200.

A tenant was receiving $500 TANF but refused to participate in an economic self-sufficiency program so the entire grant was sanctioned.

$ 500 Welfare Benefit (previous to sanction)

- 200 TANF benefit after sanction

$ 300 Imputed Income

$ 200 TANF actual benefit received (Elite code = T)

+ 300 Imputed Welfare (Elite code = IW)

$ 500 Total monthly income

 

A tenant began working and earns $200 a month; wages are offset by imputed welfare:

$ 300 Imputed Welfare (or Sanctioned amount)

- 200 Wages from job started after sanction began

$ 100 New Imputed Welfare Amount

$ 100 New Imputed Welfare Amount (Elite code = IW)

200 TANF (was $500)

+ 200 Earned Income

$ 500 New Total Monthly Income recorded in Elite

 

A tenant receives a promotion and now earns $500 a month. The sanction is reduced to zero due to increased wages:

$ 0 New Imputed Welfare income

0 TANF (reduced due to income)

+ 500 Earnings

$ 500 Total Monthly income

CHART OF EXAMPLE

The amount of imputed welfare income is offset by the amount of other income beginning after the date welfare benefits were first reduced or sanctioned. During the term of welfare sanction, the amount of imputed welfare income changes when other income increases.

Unemployment Benefits

• Include lump sum payments caused by a delay in processing (including benefits for an “exempt” job);
• Multiply gross weekly benefit by 52 weeks, regardless of the number benefit weeks remaining; and
• When the family reports the benefits have ceased, complete an Interim Revision to adjust annual income. Refer to PPM, Chapter X.

Wages/Salary - Anticipated gross amounts prior to payroll deductions or garnishments, including:

• All employment sources;
• Overtime;
• Commissions;
• Bonuses;
• Tips or other compensation for personal services;
• Projected pay increases/raises;
• For any exempt earned income, refer to the section of this chapter on Income Excludes.
• See PPM Chapter IV. Income Excludes d. Earned Income Disregard for information on when not to include wages earned by disabled family members.

School Employment - Refer to PPM Chapter IV Income Verifications, Section D. Calculating Annual Income, Irregular Income.

The Work Number - Employment may be verified via “The Work Number,” an Internet source available to obtain TPV from registered employers. Once the HA accesses and registers with www.theworknumber.com, it is possible to obtain verifications via FAX in approximately five business days. Refer to Appendix H, HUD Verification Requirements, for instructions on accessing the website.

After completing the one-time registration, the HA can order verifications at any time by accessing the website and entering their FAX number, employer code number, and employee (tenant) Social Security number. All information provided is current as of the most recent pay period. There is no cost for the service. The HA must have incoming FAX capability and register as a “Social Services User” with an Agency Type identifier of “Housing Authority.” The Registration Agreement requires confidentiality with regard to any information obtained.

Worker’s Compensation - Lump sum Worker’s Compensation payments are not added to income; but should be included as an asset. This includes benefits for an “exempt” job.

(October 2007)