Income Calculations & Rent Determination Flashcards

Which of the following is the correct formula for calculating adjusted income?

Answer: Annual income − allowable deductions

Adjusted income = annual income minus all HUD-allowable deductions (dependents, elderly, medical, childcare, disability assistance).

A live-in aide's income is:

Answer: Excluded from household annual income

Income of a live-in aide is excluded from annual income because the aide is not considered a household member for income purposes.

A tenant's TTP is less than $25. What minimum TTP applies under public housing rules?

Answer: $25

Under HUD public housing rules, the minimum tenant rent is $25/month unless the family is granted a hardship exemption.

Income received from the Department of Veterans Affairs (VA) disability compensation is:

Answer: Included in annual income

VA disability compensation is a regular periodic payment and is included in annual income.

A household's utility allowance ($150) exceeds their TTP ($100). What happens to the $50 difference?

Answer: The owner pays the household a utility reimbursement of $50

When utility allowance exceeds TTP, the owner must pay the household a utility reimbursement for the difference.

For LIHTC properties, income limits are set at what percentage of Area Median Income (AMI)?

Answer: 50% or 60% AMI depending on the set-aside election

LIHTC properties use either 50% AMI or 60% AMI limits based on the owner's minimum set-aside election.

When verifying income for a new certification, the owner should obtain third-party verification that is no older than:

Answer: 120 days

HUD 4350.3 requires that third-party verification be no more than 120 days old at the time of move-in or annual recertification.