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6-I.N. WELFARE ASSISTANCE <br />Overview <br />Welfare assistance is counted in annual income. Welfare assistance includes Temporary <br />Assistance for Needy Families (TANF) and any payments to individuals or families based on <br />need that are made under programs funded separately or jointly by federal, state, or local <br />governments [24 CFR 5.603(b)]. <br />Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615] <br />The PHA must make a special calculation of annual income when the welfare agency imposes <br />certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided <br />as Exhibit 6-5. The requirements are summarized below. This rule applies only if a family was <br />receiving HCV assistance at the time the sanction was imposed. <br />Covered Families <br />The families covered by 24 CFR 5.615 are those “who receive welfare assistance or other public <br />assistance benefits (‘welfare benefits’) from a State or other public agency (’welfare agency’) <br />under a program for which Federal, State or local law requires that a member of the family must <br />participate in an economic self-sufficiency program as a condition for such assistance” [24 CFR <br />5.615(b)] <br />Imputed Income <br />When a welfare agency imposes a sanction that reduces a family’s welfare income because the <br />family commits fraud or fails to comply with the agency’s economic self-sufficiency program or <br />work activities requirement, the PHA must include in annual income “imputed” welfare income. <br />The PHA must request that the welfare agency provide the reason for the reduction of benefits <br />and the amount of the reduction of benefits. The imputed welfare income is the amount that the <br />benefits were reduced as a result of the sanction. <br />This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the <br />lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable <br />to find employment even though the family member has complied with the welfare agency <br />economic self-sufficiency or work activities requirements, or (3) because a family member has <br />not complied with other welfare agency requirements [24 CFR 5.615(b)(2)]. <br />Offsets <br />The amount of the imputed welfare income is offset by the amount of additional income the <br />family begins to receive after the sanction is imposed. When the additional income equals or <br />exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR <br />5.615(c)(4)]. <br />EXHIBIT 1