E. Income Limits and Family Size

• 1 Income limits vary by family size. Income limits are published based on the number of persons in the household (for example, 1 person, 2 persons, 3 persons) with increasingly higher income limits for families with more members.

2. Once the owner determines the applicable income limits based on the type of subsidy in the property, the owner must determine the appropriate limits to apply to a family based on family size. In determining the appropriate income limits, the owner must include some individuals as part of the family but exclude others.

3. When determining family size for establishing income eligibility, the owner must include all persons living in the unit except the following:

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• a. Live-in aide.

  • (1) A person who resides with one or more elderly persons, near-elderly persons, or persons with disabilities, and who:

    • (a) Is determined to be essential to the care and wellbeing of the person(s);

    • (b) Is not obligated for the support of the person(s); and (c) Would not be living in the unit except to provide the necessary supportive services.

  • (2) To qualify as a live-in aide:

    • (a) The owner must verify the need for the live-in aide. Verification that the live-in aide is needed to provide the necessary supportive services essential to the care and well-being of the person must be obtained from the person’s physician, psychiatrist or other medical practitioner or health care provider. The owner must approve a live-in aide if needed as a reasonable accommodation in accordance with 24 CFR Part 8 to make the program accessible to and usable by the family member with a disability. The owner may verify whether the live-in aide is necessary only to the extent necessary to document that applicants or tenants who have requested a live-in aide have a disability-related need for the requested accommodation. This may include verification from the person’s physician, psychiatrist or other medical practitioner or health care provider. The owner may not require applicants or tenants to provide access to confidential medical records or to submit to a physical examination. (See discussion in Chapter 2.)

    • (b) Expenses for services provided by the live-in aide, such as nursing services (dispensing of medications or providing other medical needs) and personal care (such as bathing or dressing), that are out-of-pocket expenses for the tenant and where the tenant is not reimbursed for the expenses from other sources, are considered as eligible medical expenses. Homemaker services such as housekeeping and meal preparation are not eligible medical expenses. (See Chapter 5 and Exhibit 5-3 for more information on medical expenses.)

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• (c) Qualifies for occupancy only as long as the individual needing supportive services requires the aide’s services and remains a tenant. The live-in aide may not qualify for continued occupancy as a remaining family member. Owners are encouraged to use a HUD-approved lease addendum that denies occupancy of the unit to a live-in aide after the tenant, for whatever reason, is no longer living in the unit. (See paragraph 6-5.A.4.g for more information.) The lease addendum should also give the owner the right to evict a live-in aide who violates any of the house rules.

  • (d) Income of a live-in aide is excluded from annual income. (See Exhibit 5-1.)

  • (e) Must disclose and provide verification of their SSN.

  • (f) Must meet the screening criteria discussed in Paragraph 4-7 B.5.

  • (3) A relative may be considered to be a live-in aide if they meet the requirements in 1, above, especially 1(c).

  • (4) An adult child is eligible to move into a Section 202/8 project after initial occupancy only if they are essential to the care or well-being of the elderly parent(s). The adult child may be considered a live-in aide if all of the requirements in 1, above, apply and there is a verified need for a live-in aide in accordance with 2(a), above. (See Paragraph 7-4.D for more discussion on adult children moving in after initial occupancy.)

  • (5) An adult child is not eligible to move into a Section 202 PRAC or Section 811 PRAC after initial occupancy unless they are performing the functions of a live-in aide and are eligible to be classified as a live-in aide for eligibility purposes. (See Paragraph 7-4.E.)

  • b. Guests. (See the Glossary for the definition.)

4. When determining family size for income limits, the owner must include the following individuals who are not living in the unit:

   • a. Children temporarily absent due to placement in a foster home;

   • b. Children in joint custody arrangements who are present in the household 50% or more of the time;

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• c. Children who are away at school but who live with the family during school recesses;

• d. Unborn children of pregnant women.

• e.

  • Children who are in the process of being adopted.

  • f. Temporarily absent family members who are still considered family members. For example, the owner may consider a family member who is working in another state on assignment to be temporarily absent;

  • g. Family members in the hospital or rehabilitation facility for periods of limited or fixed duration. These persons are temporarily absent as defined in subparagraph f above; and

• h. Persons permanently confined to a hospital or nursing home. The family decides if such persons are included when determining family size for income limits. If such persons are included, they must not be listed as the head, co-head, or spouse on the lease or in the data submitted to TRACS but may be listed as other adult family member. This is true even when the confined person is the spouse of the person who is or will become the head. If the family chooses to include the permanently confined person as a member of the household, the owner must include income received by these persons in calculating family income. See paragraph 5-6.D.

  5. When determining income eligibility, the owner must count the income of family members only.

• F. Determining the Applicable Income Limit and Eligibility for Assistance

  1. After determining family size, the owner must calculate the family’s annual income as described in Chapter 5, Section 1.

  2. After determining family income, the owner must compare the family’s annual income to the appropriate income limit for the program and family size.

  3. Income-eligible families must have annual income that is less than or equal to the income limit for the family size.

  4. Income-eligible families must also need the assistance. The amount the family would be required to pay using the applicable HUD rent formula must be less than the gross rent for the unit or market rent for Section 236 projects.

NOTE: This requirement does not apply to Section 202 PRACs or Section 811 PRACs.

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5. IMPORTANT: A household does not need to have income to be eligible for assisted housing programs that provide rental assistance through an assistance contract (i.e., Section 8, Rent Supplement, RAP, Section 202 PAC, Section 202 PRAC or Section 811 PRAC).