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nis page is ioateo on the U.S. Department of Housing and Urban Development's Homes and Communities Web <br />1�SD://www.hUd. •eni_�as__sir..,�/afFerdxhlnheue:.._..�:_:�-- - <br />PU <br />partment H Housing <br />anrban Dz--lopment P <br />art 5 Definition <br />The Part 5 definition of annual income is the gross amount of income of all adult <br />household members that is anticipated to be received during the coming 12 -month <br />period. This definition sounds straightforward, but there are several specific issues <br />related to the calculation of Part 5 annual income. <br />' Background on Using Part.5 <br />' Whose Income to Count <br />' Types of Income to Count <br />' Treatment of Assets <br />The words highlighted above are key parts of the following phrases, which are <br />essential to understanding the requirements for calculating Part 5 annual income. <br />' Gross amount. For the types of income <br />counted in the Part 5 definition, gross <br />amounts (before any deductions have been taken) are used. <br />' Income of all adult household members. The Part 5 definition contains <br />income "inclusions" (types of income to be counted) and "exclusions <br />(types of <br />income that are not considered) for all adult members of a household. <br />' Anticipated to be received. Part 5 annual income is used to determine <br />eligibility and the amount of Federal assistance a family can receive. A PJ <br />must, therefore, use a household's expected ability to pay, not their past <br />earnings, when estimating housing assistance needs. <br />Background on Using Part 5 <br />The HOME Program previously required PJs to use only the Section 8 Program <br />definition of annual income to determine the eligibility of applicants to their HOME <br />programs. <br />The rules concerning Section 8 annual income were previously found at 24 CFR <br />Part 813. However, Part 813 was removed from the Federal regulations on <br />October 18, 1996. At the same time, 24 CFR Part 5 was published. Subpart F of <br />Part 5 consolidated the requirements pertaining to income for many of HUD's <br />programs, including Section 8. <br />Currently, the definition of annual income found at 24 CFR Part 5 is used by a <br />variety of Federal programs, including: <br />1 L`25,2002 <br />