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6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES <br />[24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16; <br />Notice PIH 2023-27] <br />HOTMA removed the statutory authority for the EID. The EID is available only to families that <br />are eligible for and participating in the program as of December 31, 2023, or before; no new <br />families may be added on or after January 1, 2024. If a family is receiving the EID prior to or on <br />the effective date of December 31, 2023, they are entitled to the full amount of the benefit for a <br />full 24-month period. The policies below are applicable only to such families. No family will <br />still be receiving the EID after December 31, 2025. The EID will sunset on January 1, 2026, and <br />the PHA policies below will no longer be applicable as of that date or when the last qualifying <br />family exhausts their exclusion period, whichever is sooner. <br />Calculation of the Disallowance <br />Calculation of the earned income disallowance for an eligible member of a qualified family <br />begins with a comparison of the member’s current income with their “baseline income.” The <br />family member’s baseline income is their income immediately prior to qualifying for the EID. <br />The family member’s baseline income remains constant throughout the period that they are <br />participating in the EID. <br />Calculation Method <br />Initial 12-Month Exclusion <br />During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of <br />any increase in income attributable to new employment or increased earnings is excluded. <br />SAHA Policy <br />The initial EID exclusion period will begin on the first of the month following the date an <br />eligible member of a qualified family is first employed or first experiences an increase in <br />earnings. <br />Second 12-Month Exclusion <br />During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 <br />percent of any increase in income attributable to employment or increased earnings. <br />SAHA Policy <br />During the second 12-month exclusion period, SAHA will exclude 100 percent of any <br />increase in income attributable to new employment or increased earnings. <br />Lifetime Limitation <br />The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at <br />the same time that the initial exclusion period begins and ends 24 months later. During the 24- <br />month period, an individual remains eligible for EID even if they begin to receive assistance <br />from a different housing agency, move between public housing and Section 8 assistance, or have <br />breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a family <br />member’s exclusion period continue past January 1, 2026. <br />EXHIBIT 1