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Income DeterminationWhat you always wanted to know and didntknow how to ask...Debbie Davis & Anita Racicot, MFATed Swisher, Santa Fe Habitat1Households vs. FamilyBased on income earned by all adults in household or family HouseholdsUsed for all housing activitiesCould be one or more individuals related or unrelated living in same dwelling unitPersons who are members of a familyRelated by blood, marriage or adoption2What is incomeWages and tipsSocial Security, SSIPublic assistance (AFDC or unemployment)Alimony and child support

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. . . morePensions, retirement fundsRegular pay to members of Armed ForcesParental support to studentsVA retirement benefits

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What is NOT income?Income from kids under 18 years old WINNING BIG AT THE LOTTERYScholarshipsHazardous duty payTemporary income, including gifts

FOOD STAMPSJob Training Partnership ActEarned income credit

5Acceptable proof of incomeIndependent third party verification of wages (Income Verification form)VA, Social Security award lettersFinancial statement Divorce decreeUnemployment - award notification or checks

6. . . moreAFDC printoutNotarized letter from parents or payee (example: person paying child support, paying for daycare)If no alternative, at least 3 pay stubs

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Assets - what are they?Must be more than $5,000Savings accountsStocks, bonds, money market fundsReal property equityTrustsIRA, Keogh, 401k plansLOTTERY WINNINGS, inheritances

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Assets: what theyre NOT. . .Necessary personal property (stereos, TVs, cars, furniture, etc.)Interest in Indian trust landsVehicles equipped for the handicapped9ExamplesMilitary Pay Stub (what is included)Income Verification (when employed)Section 8 AFDCCSEB printoutUnemployment awards10

How to calculate incomeEmployed 40 hours per week: multiply wage by 2080 $5 x 2080 = $10,400Less than 40 hours, multiply hours by wage, then by 52 32 x $5 = $160 $160 x 52 = $8,320

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More . . .Monthly: multiply wage x 12 $800 x 12 = $9,600Paid weekly = 52 pay periodsPaid bi-weekly = 26 pay periodsPaid semi-monthly = 24 pay periodsAdd in asset income Total of income sources for ALL MEMBERS OF THE HOUSEHOLD

12Income LimitsAll applicants must be at or below applicable income limitIncome limits (AMGI) published annually by HUD, then MFA Board approves updatesMSA or county where project is locatedBased on household size at the time of move inHousehold member is anyone that will be occupying unit, including unborn children

13Additional eligibility subjects. . .Section 8Live-in care attendantsParents with joint custodyFoster children or adults

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DocumentationApplicationEvery prospective applicant must completeCollects information about household, including names, ages, social security numbers, gender, relationship to headMust list all sources of income and assets for householdAsk about status students, receiving rental assistance, temporarily absent family members?Release language on application or a separate release form must be in file

15VerificationsFOR ALL HOUSEHOLD INCOME AND ASSETSThird party (SIMPLY THE BEST!)Written verifications received from a third party source independent from the applicantCan be faxed to source, then faxed back Effective for 90 days from date information returned to management (use a date stamp). Clarification record can extend for 30 days shows information re-verified by management by phone.DONT WRITE ON THE SOURCE DOCUMENT

16More VerificationsSecond party only when not possible to get third partyCheck stubs (at least 3), grant award letters, bank statements or W-2 forms

17First party or self affidavitsMust be notarizedUsed when no other way to verify information orNegative verificationMFA ALLOWSSocial Security/VA award lettersHSD printoutsUnemployment award noticesAnd dont forget . . .Dont assume there are four weeks in each monthIf indicated on verification, dont forget overtimeService industry TIPS!Child support must include if ordered but no attempt made to collectPart-time jobs

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AssetsMoney held in a lump sum that is accessible to the household, including minorsChecking, savings, CDs are accessibleTrust funds are not accessibleAsset income is greater of actual income or imputed incomeLess than $5,000 AffidavitHUD Passbook rate is 2%19Tips for successDo not let anyone move in to your unit, project, home, etc. until you have verified their income.20

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