No EID for Tenants of Rural Development Housing

Earned income disallowance (EID) is a work incentive that is available to persons with disabilities who receive housing assistance through certain programs administered by the United States Department of Housing and Urban Development (HUD). With EID, all or some of the person’s income from working is not counted (for a period of up to 24 months) when determining his or her rental payment. For details on EID, see the blog article dated March 3, 2008.

Some persons with disabilities receive rental assistance as tenants of Rural Development multi-family housing complexes. One such complex is Jamestown Village in Jamestown, North Dakota. Rural Development housing complexes are not associated with HUD. Instead, they are funded by the Housing and Community Facilities Programs, an agency of the United States Department of Agriculture (USDA).

Unlike the HUD regulations, the regulations of USDA do not provide for an earned income disallowance. Therefore, all of the non-exempt earned income of a tenant of a Rural Development housing is counted in figuring the amount of his or her rental payment. However, even without EID in the Rural Development rental assistance program, the tenant’s rental payment may not exceed 30 percent of his or her combined unearned and earned income.

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

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