Q and A – What do I compare to Income Limits?

Question:

When I’m checking to see if an applicant household qualifies based on income limits, do I look at the household’s annual income or adjusted annual income?

• The very low income limit for this household size is $30,400. Since my property’s original HAP contract was effective after October 1, 1981, I know I can only let in households up to the very low income limit.
• The household’s annual income is $31,047.
• They have a dependent deduction for $480 and $9600 in child care expenses which makes their adjusted annual income $20,967.

Can I move them in?

Answer: No. They don’t qualify based on the income limits. The family’s annual income must not exceed program income limits. You don’t take into account any deductions or expenses when determining if households qualify based on income limits (Per HUD Handbook 4350.3, Rev-1, Change 4, 3-5.)