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PART II: ADJUSTED INCOME <br />6-II.A. INTRODUCTION <br />Overview <br />HUD regulations require PHAs to deduct from annual income any of five mandatory deductions <br />for which a family qualifies. The resulting amount is the family’s adjusted income. Mandatory <br />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 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 />(i) Unreimbursed health and medical care expenses of any elderly family or disabled family; <br />(ii) 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 of <br />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 of <br />age or older and who are able to work because of such attendant care or auxiliary apparatus; and <br />(4) Any reasonable childcare 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 />SAHA Policy <br />Generally, SAHA will use current circumstances to anticipate expenses. When possible, <br />for costs that are expected to fluctuate during the year (e.g., childcare during school and <br />non-school periods and cyclical medical expenses), SAHA will estimate costs based on <br />historic data and known future costs. <br />If a family has an accumulated debt for medical or disability assistance expenses, SAHA <br />will include as an eligible expense the portion of the debt that the family expects to pay <br />during the period for which the income determination is being made. However, amounts <br />previously deducted will not be allowed even if the amounts were not paid as expected in <br />a preceding period. SAHA may require the family to provide documentation of payments <br />made in the preceding year. <br />EXHIBIT 1