HOTMA Annual Income and Exclusions
Annual Income: 24 CFR 5.609(a)
Annual Income includes:
All amounts, not specifically excluded below, received from all sources by each member of the family 18 years or older or is the head of household or spouse of the head of household, plus all unearned income by or on behalf of each dependent who is under 18 years of age.
Annual Income Exclusions: 24 CFR 5.609(b)
Income Exclusions Table:
| Category | Exclusion | CFR | Description |
| Trusts | Trust distributions | 24 CFR 5.609(b)(2) | Any distributions from a trust's principal are excluded. PHAs and owners must count any distributions of income from an irrevocable trust or a trust not under the control of the family (e.g., distributions of earned interest) as income to the family with the exception of distributions used to pay the health and medical care expenses of a minor. |
| Dependents | Minors (children under the age of 18 years) |
24 CFR 5.609(b)(3) | All earned income of all children under the age of 18, including foster children. |
| Foster children / adults | Payments for Foster Children / Adults |
24 CFR 5.609(b)(4) | Payments received for the care of foster children or adults, including State kinship, guardianship care payments, or tribal kinship payments. |
| Insurance | Insurance payments and settlements for personal or property loss |
24 CFR 5.609(b)(5) | Insurance payments and settlements for personal or property loss include, but not limited to payments through health insurance, motor vehicle insurance, and workers' compensation. |
| People with Disabilities | Reimbursements for Health and Medical Care Expenses |
24 CFR 5.609(b)(6) | Amounts for, or in reimbursement of, health and medical care expenses for any family member. |
| Lawsuits | Lawsuit Settlements | 24 CFR 5.609(b)(7) | Amounts recovered in a civil action or settlement based on malpractice, negligence and other breach of duty claim resulting in a family member becoming disabled. |
| Foster children / adults / Live-in aid | Income of foster children / adults | 24 CFR 5.609(b)(8) | Income of a live-in aide, foster child, or foster adult as defined in 24 CFR 5.403 and 5.603. |
| Students | Title IV HEA Assistance | 24 CFR 5.609(b)(9)(i) | Any assistance that Section 479B of the Higher Education Act (HEA) of 1965, as amended, requires to be excluded from a family's income. |
| Students | Other Student Financial Assistance | 24 CFR 5.609(b)(9)(ii) | Student financial assistance, not excluded under the HEA, for actual covered costs of higher education. Student financial assistance for tuition, books, and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, and other fees required and charged to a student by an institution of higher education (as defined under Section 102 of the Higher Education Act of 1965 and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. |
| Students | Educational Savings Account | 24 CFR 5.609(b)(10) | Income and distributions from any Coverdell educational savings account of or any qualified tuition program under IRS section 530 or any qualified tuition program under section 529. |
| Baby bonds | Baby bonds | 24 CFR 5.609(b)(10) | Income earned by government contributions to, or distributions from, "baby bond' accounts created, authorized or funded by federal, state or local government. |
| Military | Hostile fire special payment | 24 CFR 5.609(b)(11) | The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. |
| People with Disabilities | Plan to Attain Self-Sufficiency (PASS) | 24 CFR 5.609(b)(12)(i) | Amounts set aside for use under a Plan to Attain SelfSufficiency (PASS). |
| Reimbursements | Reimbursements from publicly assisted programs | 24 CFR 5.609(b)(12)(ii) | Amounts received by a participant in other publicly assisted programs for or in reimbursement of expenses to allow program participation (e.g., special equipment, clothing, transportation, childcare, etc.). |
| Resident Services Stipend | Resident Services Stipend | 24 CFR 5.609(b)(12)(iii) | Resident service stipends of $200 or less per month for performing a part-time service for the PHA that enhances the quality of life in the development. |
| Employment training programs | Employment training programs | 24 CFR 5.609(b)(12)(iv) | Incremental earnings and benefits from training programs HUD and qualifying employment training programs and training of a family member as resident management staff. |
| Lawsuits | Reparations for Persecution | 24 CFR 5.609(b)(13) | Reparation payments paid by a foreign government for claims by people persecuted during the Nazi era. |
| Students | Earned Income of Dependent Students |
24 CFR 5.609(b)(14) | Earned income of dependent full-time students in excess of the amount of the dependent deduction in 24 CFR 5.611. |
| Dependents | Adoption assistance payments | 24 CFR 5.609(b)(15) | Adoption assistance payments for a child in excess of the amount of the dependent deduction in 24 CFR 5.611. |
| Benefits | Deferred Supplemental Security Income, SS income and benefits, or VA disability benefits |
24 CFR 5.609(b)(16) | Deferred periodic amounts from: SSI, Supplemental Security Income and benefits or VA disability benefits that are received in a lump sum or prospective monthly amounts. |
| Veterans | Veterans aid and attendance payments |
24 CFR 5.609(b)(17) | Payments related to aid and attendance for veterans under 38 U.S.C. 1521. |
| Property tax rebates | Property tax rebates | 24 CFR 5.609(b)(18) | Refunds or rebates under state or local law for property taxes paid on the dwelling unit. |
| People with Disabilities | State Payments to Allow Individuals with Disabilities to Live at Home |
24 CFR 5.609(b)(19) | Payment made by an authorized by a state Medicaid managed care system or other state agency to a family to enable a family member to live in the family's assisted unit. |
| Loans | Loan Proceeds | 24 CFR 5.609(b)(20) | The net amount disbursed by a lender to a borrower or a third party (e.g., educational institution or car dealership). |
| Lawsuits | Tribal Claims Payments | 24 CFR 5.609(b)(21) | Payments received by tribal members from claims relating to the mismanagement of assets held in trust by the United States. |
| People with Disabilities | ABLE accounts | 24 CFR 5.609(b)(22) | Will be included in federally mandated excluded amounts. Notice PIH 2019-09/H-2019-06 details when ABLE account income is excluded. |
| Housing gap payments | Housing "gap" payments | 24 CFR 5.609(b)(23) | Replacement housing "gap" payments to offset increased rent and utility costs to families displaced from one federally subsidized housing unit and another. |
| Non-recurring income | Non-recurring income | 24 CFR 5.609(b)(24) | Income that will not be repeated in the coming year based on information provided by the family. Examples are US Census Bureau Employment, Economic stimulus payments, tax refunds, gifts, in-kind donations, lump sum additions to family assets. |
| Lawsuits | Lawsuits related to civil rights | 24 CFR 5.609(b)(25) | Civil rights settlements or judgments, including settlements or judgments for back pay. |
| Retirement | Retirement plan | 24 CFR 5.609(b)(26) | Income received from any account under an IRS-recognized retirement plan. However, periodic payments are income at the time of receipt. |
| FSS | Family Self Sufficiency Account | 24 CFR 5.609(b)(27) | Income earned on amounts placed in a family's FSS account. |
| Self-employment | Gross Self-employment Income | 24 CFR 5.609(b)(28) | Gross income received through self-employment or operation of a business. Net income from the operation of a business or any withdraw of cash or assets from the operation of business IS counted. |
7/1/2025
