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PART II: ADJUSTED INCOME <br />6-ILA. INTRODUCTION <br />Overview <br />HUD regulations require Housing Authorities to deduct from annual income any of five <br />mandatory deductions for which a family qualifies. The resulting amount is the family's adjusted <br />income. Mandatory deductions are found in 24 CFR 5.611. <br />5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] <br />must deduct the following amounts from annual income: <br />(1) $480 for each minor dependent and/or adult full-time student dependent; <br />(2) $400 for any elderly family or disabled family; <br />(3) The sum of the following, to the extent the sum exceeds three percent of annual income: <br />~ Unreimbursed medical expenses of any elderly family or disabled family; <br />~ Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member <br />of the family who is a person with disabilities, to the extent necessary to enable any member <br />of the family (including the member who is a person with disabilities) to be employed. This <br />deduction may not exceed the earned income received by family members who are 18 years <br />of age or older and who are able to work because of such attendant care or auxiliary <br />apparatus; and <br />(4) Any reasonable child care expenses necessary to enable a member of the family to be <br />employed or to further his or her education. <br />This part covers policies related to these mandatory deductions. Verification requirements related <br />to these deductions are found in Chapter 7. <br />Anticipating Expenses <br />Generally, SAHA will use current circumstances to anticipate expenses. When possible, for costs <br />that are expected to fluctuate during the year (e.g., child care during school and nonschool <br />periods and cyclical medical expenses), SAHA will estimate costs based on historic data and <br />known future costs. <br />If a family has an accumulated debt for medical or disability assistance expenses, SAHA will <br />include as an eligible expense the portion of the debt that the family expects to pay during the <br />period for which the income determination is being made. However, amounts previously <br />deducted will not be allowed even if the amounts were not paid as expected in a preceding <br />period. SAHA may require the family to provide documentation of payments made in the <br />preceding year. <br />iii29iio Page 6-24 <br />