The Often Overlooked HUD Work Incentive - Be Sure to Request It!

HUD Work Incentive: Earned Income Disregard (EID)

If you are involved with one of the following HUD programs; HOME Investment Partnerships Program, Housing Opportunities for Persons with AIDS, Supportive Housing Program, Housing Choice Voucher Program (Section 8), or Public Housing - you may qualify for a powerful work incentive that could save you hundreds of dollars per month.

If you are a person with a disability and are benefiting from one of the aforementioned HUD programs...you may qualify for EARNED INCOME DISALLOWANCE when you become employed.

Under this HUD work incentive, 100% of increased employment income will not be counted when determining rent for a period of 12 months following employment. During the second year of employment, only 50% of employment earnings will be used for calculating rent.

An alternative to the EID as a result of employment is INDIVIDUAL SAVINGS ACCOUNTS for those who pay income-based rent in public housing. Under this program, the increase in employment income does not have to be from an individual with a disability in the household, it can be from any household member. The housing authority must deposit in a savings account the total amount that would have been included in tenant rent payable as a result of increased income that is disallowed under EID for families. The tenant may only withdraw monies deposited in the account for; purchasing a home, paying education costs of family members, moving out of public or assisted housing, or paying any other expenses authorized by the housing authority that promote economic self-sufficiency.

Ask your local housing authority if you qualify.

If your HUD counselor is unfamiliar with this work incentive, the rules about this can be found in Title 24, Volume 1 of the Code of Federal Regulation http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200624 . Search “earned income disregard”, hit 24CFR5- Subpart F, find 5.617 (waivers - EID). Also, hit 24CFR960- Subpart C, find 960.255 (public housing EID/savings account).

Any questions may be directed to: rsi5@srt.com