URA Low Income Calculation Example / 2012

49 CFR 24.402(b)(2)(ii)

The Uniform Act requires that an eligible displaced person who rents a replacement dwelling is entitled to a rental assistance payment calculated in accordance with § 24.402(b). One factor in this calculation is to determine if a displaced person is "low income," as defined by the U.S. Department of Housing and Urban Development's annual survey of income limits for the Public Housing and Section 8 Programs. To make such a determination, the Agency must follow the steps listed below:

1. Go to HUD's FY 2012 List of Counties (And New England Towns). The list is available through the "Income Limit Area Definition" link on HUD's web site.
2. Select the state of displacement
3. Identify the location of the displaced residence as either: ( Location will be either a metropolitan or non-metropolitan area )
   1. Metropolitan Area
      1. Counties of FMR AREA with State - income data is included with Metropolitan area to left
      
      Note: Some Metropolitan areas incorporate the additional areas listed on the right hand side under the HUD Metro FMR Area (HMFA) column; in these situations you will use the Metropolitan area name on the left as your location.
      
      
   2. Non-metropolitan County
      Note: Non-metropolitan areas are located at the alphabetic end of each States Metropolitan area list
4. Go to HUD's FY2012 URA Low Income Limits available through the "Low Income Limits" link on HUD's web site.
   1. Select state from U.S. Map or Low Income Limit Table.
5. Using the information from 3 above (the metropolitan area or non-metropolitan area name), locate the applicable URA Low Income Limit for the displaced household based on number of person(s) in the displaced household.
6. The low income limit determined in (5) above, must then be compared to the displaced person's household income (see § 24.2(a)(15)), which is the gross annual income received by the displaced person/family, excluding income from any dependent children and full time students under the age of 18;
7. If the gross annual household income for the eligible displaced household is less than or equal to the URA low income limit determined in (5) above, the displaced household is considered "low income" for URA purposes (49 CFR § 24.402(b)).

For example:
Tom and Mary Smith and their three children are being displaced. The information obtained from the family and verified by the Agency is as follows:

• Tom Smith, employed, earns $21,000/yr.
• Mary Smith, receives disability payments of $6,000/yr.
• Tom Smith Jr., 21, employed, earns $10,000/yr.
• Mary Jane Smith, 17, student, has a paper route, earns $3,000/yr. (Income is not included because she is a dependent child and a full time student under 18)
• Sammie Smith, 10, full time student, no income.

Smith family gross annual household income = $37,000
($21,000 + $6,000 + $10,000 + $0 + $0 = $37,000)

• Displaced residence is located in the State of MD, Caroline County.
• Low income limit for a 5 person family in Caroline County, MD = $62,750. (Based on FY 2012 income limits)
• Smith family income of $37,000 is less than $62,750

The Smith family is considered "Low Income" for purposes of the Uniform Act