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Anticipating Income

For the purpose of determining eligibility for HOME assistance, the HOME regulations require that PJs project a household's annual income. In order to accomplish this, a "snapshot" of the household's current circumstances can be used to project future income.

PJs can then assume that a household's current circumstances will continue for the next 12 months, unless there is verifiable evidence to the contrary.

For example, if a head of household is currently working for $7.00 per hour, 40 hours per week, the PJ should assume that this person would continue to do so for the next year. Thus, estimated earnings for this person would be $7.00 per hour multiplied by 2,080 hours, or $14,560 per year.

As a general rule, this method should be used even when it is not clear that the type of income currently received will continue in the coming year.

For example, assume a household member has been receiving unemployment benefits of $100 per month for 16 weeks at the time the PJ is determining their income. It is unlikely that the person will continue on unemployment for another 52 weeks. However, because it is not known whether or when the person will find employment, the PJ should use the current circumstances to anticipate annual (gross) income. Income for this person would therefore be $100 per week x 52 weeks, or $5,200.

The exception to this rule is when documentation is available or provided that shows current circumstances are about to change.

For example, an employer might report that an employee currently makes $7.50 an hour, but a negotiated union contract will increase this amount to $8.25 an hour eight weeks from the date of assistance. In such cases, income can be calculated based on the information provided. In this example, this household member's income would be:

$7.50/hour x 40 hours/week x 8 weeks
= $2,400
$8.25/hour x 40 hours/week x 44 weeks
= $14,520
$2,400 + $14,520
= $16,920