[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR960.255]

[Page 440-441]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 960_ADMISSION TO, AND OCCUPANCY OF, PUBLIC HOUSING--Table of Contents
 
                    Subpart C_Rent and Reexamination
 
Sec. 960.255  Self-sufficiency incentives--Disallowance of increase in annual income.

    (a) Definitions. The following definitions apply for purposes of 
this section.
    Disallowance. Exclusion from annual income.
    Previously unemployed includes a person who has earned, in the 
twelve months previous to employment, no more than would be received for 
10 hours of work per week for 50 weeks at the established minimum wage.
    Qualified family. A family residing in public housing:
    (i) Whose annual income increases as a result of employment of a 
family member who was unemployed for one or more years previous to 
employment;
    (ii) Whose annual income increases as a result of increased earnings 
by a family member during participation in any economic self-sufficiency 
or other job training program; or
    (iii) Whose annual income increases, as a result of new employment 
or increased earnings of a family member, during or within six months 
after receiving assistance, benefits or services under any state program 
for temporary assistance for needy families funded under Part A of Title 
IV of the Social Security Act, as determined by the PHA in consultation 
with the local agencies administering temporary assistance for needy 
families (TANF) and Welfare-to-Work (WTW) programs. The TANF program is 
not limited to monthly income maintenance, but also includes such 
benefits and services as one-time payments, wage subsidies and 
transportation assistance--provided that the total amount over a six-
month period is at least $500.
    (b) Disallowance of increase in annual income--(1) Initial twelve 
month exclusion. During the cumulative twelve month period beginning on 
the date a member of a qualified family is first employed or the family 
first experiences an increase in annual income attributable to 
employment, the PHA must exclude from annual income (as defined in Sec. 
5.609 of this title) of a qualified family any increase in income of

[[Page 441]]

the family member as a result of employment over prior income of that 
family member.
    (2) Second twelve month exclusion and phase-in. During the second 
cumulative twelve month period after the date a member of a qualified 
family is first employed or the family first experiences an increase in 
annual income attributable to employment, the PHA must exclude from 
annual income of a qualified family fifty percent of any increase in 
income of such family member as a result of employment over income of 
that family member prior to the beginning of such employment.
    (3) Maximum four year disallowance. The disallowance of increased 
income of an individual family member as provided in paragraph (b)(1) or 
(b)(2) of this section is limited to a lifetime 48 month period. It only 
applies for a maximum of twelve months for disallowance under paragraph 
(b)(1) and a maximum of twelve months for disallowance under paragraph 
(b)(2), during the 48 month period starting from the initial exclusion 
under paragraph (b)(1) of this section.
    (c) Inapplicability to admission. The disallowance of increases in 
income as a result of employment under this section does not apply for 
purposes of admission to the program (including the determination of 
income eligibility and income targeting).
    (d) Individual Savings Accounts. As an alternative to the 
disallowance of increases in income as a result of employment described 
in paragraph (b) of this section, a PHA may choose to provide for 
individual savings accounts for public housing residents who pay an 
income-based rent, in accordance with a written policy, which must 
include the following provisions:
    (1) The PHA must advise the family that the savings account option 
is available;
    (2) At the option of the family, the PHA must deposit in the savings 
account the total amount that would have been included in tenant rent 
payable to the PHA as a result of increased income that is disallowed in 
accordance with paragraph (b) of this section;
    (3) Amounts deposited in a savings account may be withdrawn only for 
the purpose of:
    (i) Purchasing a home;
    (ii) Paying education costs of family members;
    (iii) Moving out of public or assisted housing; or
    (iv) Paying any other expense authorized by the PHA for the purpose 
of promoting the economic self-sufficiency of residents of public 
housing;
    (4) The PHA must maintain the account in an interest bearing 
investment and must credit the family with the net interest income, and 
the PHA may not charge a fee for maintaining the account;
    (5) At least annually the PHA must provide the family with a report 
on the status of the account; and
    (6) If the family moves out of public housing, the PHA shall pay the 
tenant any balance in the account, minus any amounts owed to the PHA.