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(4) The amount of the imputed welfare income <br />is offset by the amount of additional income a <br />family receives that commences after the time <br />the sanction was imposed. When such <br />additional income from other sources is at <br />least equal to the imputed <br />(5) The PHA may not include imputed welfare <br />income in annual income if the family was not <br />an assisted resident at the time of sanction. <br />(d) Review of PHA decision. <br />(1) Public housing. If a public housing tenant <br />claims that the PHA has not correctly <br />calculated the amount of imputed welfare <br />income in accordance with HUD requirements, <br />and if the PHA denies the family's request to <br />modify such amount, the PHA shall give the <br />tenant written notice of such denial, with a <br />brief explanation of the basis for the PHA <br />determination of the amount of imputed <br />welfare income. The PHA notice shall also <br />state that if the tenant does not agree with the <br />PHA determination, the tenant may request a <br />grievance hearing in accordance with part 966, <br />subpart B of this title to review the PHA <br />determination. The tenant is not required to <br />pay an escrow deposit pursuant to Sec. <br />966.55(e) for the portion of tenant rent <br />attributable to the imputed welfare income in <br />order to obtain a grievance hearing on the <br />PHA determination. <br />(2) Section 8 participant. A participant in the <br />Section 8 tenant-based assistance program <br />may request an informal hearing, in <br />accordance with Sec. 982.555 of this title, to <br />review the PHA determination of the amount <br />of imputed welfare income that must be <br />included in the family's annual income in <br />accordance with this section. If the family <br />claims that such amount is not correctly <br />calculated in accordance with HUD <br />requirements, and if the PHA denies the <br />family's request to modify such amount, the <br />PHA shall give the family written notice of <br />such denial, with a brief explanation of the <br />basis for the PHA determination of the amount <br />of imputed welfare income. Such notice shall <br />also state that if the family does not agree with <br />the PHA determination, the family may <br />request an informal hearing on the <br />determination under the PHA hearing <br />procedure. <br />(e) PHA relation with welfare agency. <br />(1) The PHA must ask welfare agencies to <br />inform the PHA of any specified welfare <br />benefits reduction for a family member, the <br />reason for such reduction, the term of any such <br />reduction, and any subsequent welfare agency <br />determination affecting the amount or term of <br />a specified welfare benefits reduction. If the <br />welfare agency determines a specified welfare <br />benefits reduction for a family member, and <br />gives the PHA written notice of such <br />reduction, the family's annual incomes shall <br />include the imputed welfare income because of <br />the specified welfare benefits reduction. <br /> (2) The PHA is responsible for determining <br />the amount of imputed welfare income that is <br />included in the family's annual income as a <br />result of a specified welfare benefits reduction <br />as determined by the welfare agency, and <br />specified in the notice by the welfare agency to <br />the PHA. However, the PHA is not responsible <br />for determining whether a reduction of welfare <br />benefits by the welfare agency was correctly <br />determined by the welfare agency in <br />accordance with welfare program requirements <br />and procedures, nor for providing the <br />opportunity for review or hearing on such <br />welfare agency determinations. <br /> (3) Such welfare agency determinations are <br />the responsibility of the welfare agency, and <br />the family may seek appeal of such <br />determinations through the welfare agency's <br />normal due process procedures. The PHA shall <br />be entitled to rely on the welfare agency notice <br />to the PHA of the welfare agency's <br />determination of a specified welfare benefits <br />reduction. <br />EXHIBIT 1