HOUSING HIGHLIGHTS
|
HOUSING HIGHLIGHTS |
Newsletter of the Housing Unit |
THE EARNED INCOME DISREGARD:
WHAT IT IS AND WHO IT HELPS
Federally subsidized tenants who are just starting to work or who have increased their employment income may not have to pay an immediate rent increase under the Earned Income Disregard provision of the Quality Housing and Work Act (QHWRA). Initially the Earned Income Disregard applied only to public housing tenants. In January 2001, new regulations expanded the Earned Income Disregard to people with disabilities who receive housing benefits through the HOME Investment Partnerships Program, the Housing Opportunities for People with AIDS Program, the Supportive Housing Program and the Housing Choice Voucher Program.
The purpose of the disregard is to limit a qualified family’s rental expenses when household income increases because a family member is returning to work or, in some instances, increasing work hours.
Public housing authorities and public housing agencies (PHA’s) are required to disregard 100 percent of any increased employment income for 12 months from the time that a member of an eligible family is first employed or from the time that the family’s income increases. For the second period of 12 months following employment or increased income, PHA’s are required to exclude 50 percent of any increase in employment-related income. Increased income can be excluded only for a lifetime period of 48 months.
| Example:
Roberta receives SSI payments totaling $545 per month. Under her lease agreement, Roberta
does not have to report any increases in income until her annual re-certification in
December. In July 2001, Roberta begins to work earning $1,085 per month and her SSI check
is reduced to $45 per month. Without the earned income disregard, Roberta's income would
have increased in January 2002. Because Roberta benefited from not having to report her
increased income for six months, she is entitled only to six more months of the 100
percent disregard. Beginning in July 2002 and for 12 months thereafter, Roberta's rent
will be calculated based upon the 50 percent disregard. The following tenant families are eligible for the earned income disregard: 1) Families whose income increases because a family member who was previously unemployed (defined as earning no more than would be received for working 10 hours per week for 50 weeks at the established minimum wage in the 12 month previous to employment) for one or more years goes back to work. This provision applies to the income of minors who turn 18. |
| Example:
Jose lives with his wife Rosa and their 17 year old son Michael who is no longer in
school. Jose works 20 hours each week as a janitor, Rosa receives SSI , and Michael works
bussing tables. When Michael turns 18, the family will be entitled to an earned income
disregard for the increase in household income caused by Michael’s earnings. 2) Families whose annual income increases due to increased earnings by a family member participating in a self-sufficiency or job training program Substance abuse or mental health treatment programs may be considered self-sufficiency or job training programs. Enrollment in a community college (even if the tenant is not enrolled in a special vocational program) may also be considered job training as long as the tenant is taking classes to prepare him or her for work. |
| Example:
Robert receives $545 each month in SSI. He transfers from a day treatment program to a
supported employment program sponsored by a mental health rehabilitation program where he
begins to earn $685 each month. Robert’s SSI benefit are reduced to $245. His total
monthly income increases to $930 ($245 + $685). Because Robert’s monthly income
increased by $385 ($930 current income minus $545 prior SSI), he is entitled to an earned
income disregard for the additional $385 he receives each month. 3) Families with an annual income increase due to a new employment or increased earnings during, or within six months after the receipt of TANF-funded assistance (including one-time payments, wage subsidies and transportation assistance totaling at least $500 over a six-month period). |
| Example:
Joan works 15 hours per week and earns $450 each month. She also receives $362 each month
in SSI benefits. When Joan’s car breaks down TANF pays a $600 repair bill on her
behalf so she can continue to travel to work. Three months later, Joan’s hours
double, Joan is entitled to an earned income disregard for the increase in her monthly
income. Because earned income disregards are so new, many subsidized tenants and agency workers are not completely familiar with how they work. If you would like more information about earned income disregards, or if you have further questions about them, contact the Housing Unit at Neighborhood Legal Services, Inc. Subsidized tenants who have recently returned to work or have increased their employment income may also contact Neighborhood Legal Services with questions about how their rent should be calculated |
THE HOME PLAYERS
Housing Opportunities Made Equal’s (HOME) unique educational performance is available for booking by your agency or group. The HOME Players are a group of volunteer actors who use improvisational theater to educate the public about the impact of housing discrimination. Following the performance, the audience is invited to interact with the performers while they are still in character. A fair housing expert moderates these discussions and highlights aspects of fair housing law.
Call Anne Huiner at HOME 854-1400 for further information or to arrange a performance.
Housing Highlights Table of Contents | NLS Home Page | Housing Home Page | Feedback