Under the HOME Program, one purpose for calculating annual income is to ensure that all tenants in HOME-assisted rental units are income eligible at the time of occupancy or at the time HOME funds are invested. (Click here to read information on timing income certifications.) A tenant's annual income, however, may increase during the period in which they occupy a HOME-assisted rental unit.
If, during the annual income recertification process, a PJ determines that the annual income of a tenant in a fixed-unit rental housing project has increased above 80 percent of the area median, the tenant's rent must be adjusted in order to remain in conditional compliance with the HOME regulations.
The adjusted rent for a tenant in a fixed HOME-assisted unit whose annual income increases above 80 percent of the area is then equal to 30 percent of the tenant's monthly "adjusted income."