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6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES <br />[24 CFR 5.617] <br />The earned income disallowance (EID) encourages people with disabilities to enter the work <br />force by not including the full value of increases in earned income for a period of time. The full <br />text of 24 CFR 5.617 is included as Exhibit 6-4 at the end of this chapter. Eligibility criteria and <br />limitations on the disallowance are summarized below. <br />Eligibility <br />This disallowance applies only to individuals in families already participating in the HCV <br />program (not at initial examination). To qualify, the family must experience an increase in <br />annual income that is the result of one of the following events: <br />~ Employment of a family member who is a person with disabilities and who was previously <br />unemployed for one or more years prior to employment. Previously unemployed includes a <br />person who annually has earned not more than the minimum wage applicable to the <br />community multiplied by 500 hours. The applicable minimum wage is the federal minimum <br />wage unless there is a higher state or local minimum wage. <br />~ Increased earnings by a family member who is a person with disabilities and whose earnings <br />increase during participation in an economic self-sufficiency or job-training program. Aself- <br />sufficiency program includes a program designed to encourage, assist, train, or facilitate the <br />economic independence of HUD-assisted families or to provide work to such families [24 <br />CFR 5.603(b)]. <br />~ New employment or increased earnings by a family member who is a person with disabilities <br />and who has received benefits or services under Temporary Assistance for Needy Families <br />(TANF) or any other state program funded under Part A of Title IV of the Social Security <br />Act within the past six months. If the benefits are received in the form of monthly <br />maintenance, there is no minimum amount. If the benefits or services are received in a form <br />other than monthly maintenance, such as one-time payments, wage subsidies, or <br />transportation assistance, the total amount received over the six-month period must be at least <br />$500. <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 his or her "prior income." <br />SAHA defines prior income, or prequalifying income, as the family member's last certified <br />income prior to qualifying for the EID. <br />The family member's prior, or prequalifying, income remains constant throughout the period that <br />he or she is receiving the EID. <br />iii29iio Page 6-10 <br />