109.04.6-X. Income.
AR ADC 109.04.6-XArkansas Administrative Code
Ark. Admin. Code 109.04.6-X
109.04.6-X. Income.
The HOME Program was designed to benefit low-income families. A low-income household is described as a household with an income at or below 80 percent of the area median income, adjusted for family size. HUD publishes HOME low-income limits which are based on 80 percent of the area median income, with adjustments for household size. These figures are revised and made available annually.
Rental Housing and tenant-based rental assistance funded each allocation year must comply with an income eligibility “Program Rule”. The Program Rule requires that at least 90 percent of the initial resident households have gross incomes at or below 60% of median income (adjusted for household size). The remaining households must have gross incomes at or below 80% of median income (adjusted for household size).
The Program Rule applies to the initial resident households. As residents move out, the “Project Rule” usually governs rents and eligibility for subsequent residents. Recipients must refer to executed HOME Agreements for specific projects for possible exceptions to the Project Rule.
The Project Rule has two provisions:
Household incomes must be determined at the time of move-in and recertified annually. The HOME Program uses the definition of income as utilized for the HUD Section 8 Program.
Residents are required to report all income from all sources to the project owner or manager. When determining income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all the assets is in excess of $5,000.00, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets.
Annual Income includes:
• Full amount (before payroll deductions) of wages and salaries, overtime pay, commissions, fees, tips, and bonuses and other compensation for personal services;
• Net income from the operation of a business or profession;
• Interest, dividends, and other net income of any kind from real estate or personal property;
• Full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts; including limp-sum amount or prospective monthly amounts for the delayed start of a periodic amount;
• Payments in lieu of earnings, such as unemployment and disability compensation, workers compensation and severance pay;
• Welfare assistance;
• Periodic and determinable allowances, such as alimony and child support payments and regular contributions or gifts received form organizations or from person not residing in the dwelling;
• All regular pay, special pay and allowances of a member of the Armed Forces (except special pay for exposure to hostile fire).
Assets include:
• Stocks, bonds, Treasury bills, certificates of deposit, money market accounts;
• Individual retirement and Keogh accounts;
• Retirement and pension funds;
• Cash held in savings and checking accounts, safe deposit boxes, homes, etc.;
• Cash value of whole life insurance policies available to the individual before death;
• Equity in rental property and other capital investments, equity in property protected by bankruptcy;
• Divorce or separation agreement if the applicant or resident receives important consideration not necessarily in dollars.
Some exclusions may apply. Recipients must refer to HUD Handbook 4350.3 for a complete definition of annual income.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.04.6-X, AR ADC 109.04.6-X
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