US Department of
Housing and Urban
Development ( HUD)
HUD
Earned Income
Disregard (EID):
The federal Department of Housing and Urban Development (HUD) oversees several housing subsidy programs. Under these programs, tenants with limited income receive a subsidy to help them pay a portion of their rent. Typically, the HUD subsidy will pay up to 70 percent of the rent with the tenant or tenant family responsible for the remaining 30 percent. When a tenant has an increase in their monthly income, including increases from earned income or wages, their tenant share of rent goes up. Generall, the tenant share of rent would go up by about $1 for every $3 additional income.
The Quality Housing
and Work
Responsibility Act
of 1998 (QHWRA)
provided amendments
to the HUD rules to
support tenants’
efforts to obtain
self-sufficiency and
remove any
disincentive or
barriers for public
housing tenants in
their efforts to
seek and keep
employment. Through
the
HUD Earned Income
Disregard (EID),
some tenants who
become employed my
have portions of
their new earned
income disregarded
when HUD calculates
their rent. This new
rule is for
public housing tenants and
disabled
participants in
certain other HUD
assisted programs.
How it Helps You:
HUD has an Earned
Income Disregard
that applies to
people in certain
types of housing.
This disregard
allows you to go to
work, and your
earnings will not be
counted in
calculating your
rent for the first
year in which you
are employed. In the
second year of your
employment, only
half of your
earnings will be
counted in figuring
your rental
payments.
How it Works:
The EID is available
for all public
housing residents.
It is also available
for certain disabled
individuals living
in HUD funded
housing in the
following types of
subsided housing:
-
The Section 8
Housing Choice
Voucher Program
(but not
project-based
Section 8)
-
The Supportive
Housing Program
-
The Home
Investment
Partnerships
Program
-
The Housing
Opportunities to
Persons with
AIDS Program
For the purpose of
this
work incentive,
you must not have
been working during
the previous 12
months, or averaging
less than 10 hours
of work per week at
the minimum wage.
If you live in one
of these types of
housing, and become
employed, and have
been previously
unemployed for one
or more years prior
to getting your new
job, HUD will
disregard 100% of
your new wages
during the first 12
months of your
employment. During
the Second 12 Months
of employment,
(i.e., months 13
through 24), HUD
will disregard 50%
of your wages. To
understand more
about the HUD Earned
Income Disregard,
check the following
links:
To understand if
your are eligible
for the earned
income disregard, it
is important that
you understand what
type of rental unit
in which you are
living. Be sure to
ask your housing
complex manager
about your
eligibility for the
HUD Earned Income
Disregard.
