Dealing with Affordable Housing Expenses and Deductions

Owners and managers must determine the amount of a family’s income before the family is allowed to move into assisted housing and at least annually thereafter. The amount of assistance paid on behalf of the family is calculated using the family’s annual income less allowable deductions. HUD program regulations specify the types and amounts of income and deductions to be included in the calculation of annual and adjusted income. There are five possible deductions that may be subtracted from annual income based on allowable family expenses and family characteristics. The remainder, after these deductions are subtracted, is called adjusted income. Adjusted income is generally the amount upon which rent is based. This training focuses on the calculation of annual adjusted income and will cover in detail the adjustments relating to (1) dependent deduction; (2) child care deduction; (3) disability-related expenses; (4) the elderly deduction; and (5) deductions for medical expenses. The training also includes problems to ensure that the attendees can apply what they learn to actual situations.