A city wants to provide grants or loans to owner-occupied households to correct health and safety related issues to their homes. What method should the city use to determine if a household qualifies for CDBG assistance?
Date Published: May 2015
Owner-occupied housing rehabilitation programs established to meet the National Objective of Low- and Moderate-Income Housing (LMH) found at 24 CFR 570.208(a)(3) must benefit households earning less than 80% of area median income adjusted for household size as published by HUD. CDBG entitlement grantees and their subrecipients may choose one of the two accepted methods for calculating household income for their program as follows: Part 5 definition of income (24 CFR Part 5.609); or Adjusted gross income under Internal Revenue Service (IRS) Form 1040. (A third method, the Census Long Form, is no longer applicable due to changes in Census procedures.) Each method requires collection and evaluation of source documentation. Self-certification is not acceptable for documenting compliance with the housing national objective. Once chosen for a particular program, the income determination method shall be consistently applied for all applicants.