Chapter 1 - San Diego Housing Commission

Chapter 3 – Verification, Income, Assets, and Allowances
[24 CFR Part 5, Subparts D & E; Part 982, Subpart D & L]
Jointly Owned Assets
If the asset is owned by more than one person, the asset will be prorated according to the
percentage of ownership. If no percentage is specified, the asset will be prorated evenly among
owners. When the asset is prorated, the value of the asset and the anticipated income from the
asset are both allocated in the same proportions.
If the asset is not effectively owned by an individual, it should not be counted as an asset. An asset
is not effectively owned when the asset is held in an individual’s name, but:
- The asset and any income it earns accrue to the benefit of someone else who is not a member
of the family, and
- That other person is responsible for income taxes incurred on the income generated by the
assets.
This would apply to a person who is a signatory solely for the purpose of handling payments for
someone else (e.g. an elderly parent) in the event of an emergency.
M. ALLOWANCES AND DEDUCTIONS
Adjusted Income is defined as the Annual income minus any HUD allowable expenses and deductions.
HUD has five allowable deductions from Annual Income.
1. Dependent Allowance: $480 each for family members (other than the head, spouse, co-head,
foster child, foster adult or live-in aide) who are minors, and for family members who are 18 or
older and who are full-time students or who are disabled;
2. Elderly/Disabled Allowance: $400 per family for families whose head, spouse or co-head is 62
years of age or older or disabled;
3. Allowable Medical Expenses: Deducted for all family members of an eligible elderly/disabled
family;
4. Child Care Expenses: Deducted for the care of children under 13 when childcare is necessary
to allow an adult member to work, attend school or actively seek employment; or
5. Allowable Disability Assistance Expenses: Deducted for attendant care or auxiliary apparatus
for a persons with a disability if needed to enable the individual or an adult family member to
work.
N. CHILD CARE EXPENSES [24 CFR 5.603]
Childcare expenses for children under 13 may be deducted from annual income if they enable an adult
to work, attend school full time, or actively seek employment.
The cost of tuition for a child attending private school will not be counted as childcare expenses; only
after-hours care can be counted as childcare expenses.
Deductions for childcare expenses are based on the following guidelines:
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