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Administrative Plan 7/1/2025 Page 6-60 <br />6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(ii)] <br />The PHA may adopt additional permissive deductions from annual income if they establish a <br />policy in the administrative plan. Permissive deductions are additional, optional deductions that <br />may be applied to annual income. As with mandatory deductions, permissive deductions must be <br />based on need or family circumstance and deductions must be designed to encourage self- <br />sufficiency or other economic purpose. If the PHA offers permissive deductions, they must be <br />granted to all families that qualify for them and should complement existing income exclusions <br />and deductions [PH Occ GB, p. 128]. Permissive deductions may be used to incentivize or <br />encourage self-sufficiency and economic mobility. <br />A PHA that adopts such deductions must have sufficient funding to cover the increased housing <br />assistance payment cost of the deductions. A PHA will not be eligible for an increase in HCV <br />renewal funding for subsidy costs resulting from such deductions. <br />SAHA Policy <br />SAHA has opted not to use permissive deductions. <br />EXHIBIT 1