N.Y. Comp. Codes R. & Regs. tit. 9 § 1627-2.6

Current through Register Vol. 46, No. 24, June 12, 2024

Section 1627-2.6 - Determination of income

(a) General. An object of income projection is to determine anticipated income for coming 12 months, current rate of pay per stated unit (i.e., hour, day, week, month) shall be multiplied by number of stated units in coming 12 months; this total shall be modified by any conditions which past experience indicates are likely to occur during 12 month projected period. Such projection will apply to both fixed and nonfixed income when possible. Under interim rent adjustment policy, projections for non-fixed income shall be reviewed quarterly with most recent quarter added while income of least recent quarter is dropped. Total of new four consecutive quarters is then projected as anticipated income for coming 12 months. Additional information on income projection is contained in following paragraphs.

(b) Fixed income.

(1) Annual salaries. Anticipated income will be projected on basis of annual salary as of date of income projection. Such projection will not include any expected raise or increment before it is actually received.

(2) Weekly, daily and hourly rate of pay. Anticipated income will be projected by determining the income for a current normal week and multiplying by the number of work weeks in the year. This number is usually 52 although it can be less as in the case of vacation without pay, yearly close down for model change over, etc.

(3) Overtime.

(i) Overtime which occurs on a regular basis, as evidenced by past experience or notation on employer's report of earnings, will be included in projecting anticipated income by multiplying weekly overtime earnings by 52.

(ii) Overtime which occurs irregularly or seasonally will not be included in projecting anticipated income unless prior annual income indicates that such overtime exceeds $200 per year in which case the amount in excess of $200 per year will be included in anticipated income.

(iii) In reviewing prior annual income, care should be taken to note overtime as it may not be separately stated. The reported gross earnings less computed straight time earnings will give tenants overtime earnings during stated period.

(iv) Income from secondary employment will be considered and treated as regular or irregular overtime depending on whether such secondary employment is regular or irregular. Sporadic secondary employment, i.e. of short duration and not likely to be repeated, will not be included in projecting anticipated income.

(4) Pay raises and increments.

(i) Under interim rent adjustment policy, expected pay raises and increments will not be included in anticipated income until effective date of such raise or increment. However, if raise or increment is granted retroactively, effective date will be first day of pay period reflecting retroactive pay increase.

(ii) Under noninterim rent adjustment policy, expected pay raises and increments will not be included in anticipated income. These pay raises and increments will be projected only at time of annual reexamination following date on which such increase was received and no retroactive charge will be levied against tenant.

(c) Nonfixed income.

(1) Determination of nonfixed income.

(i) The determination as to whether income is in fixed or nonfixed category must be made with regard to particular job of employee. Following, are examples of occupations generally associated with nonfixed income:

(a) Seasonal work.

(b) Piece work.

(c) Work on commission basis or on combination salary and commission.

(d) Work where employee is subject to call as a substitute worker.

(e) Work on a per diem basis.

(f) Self-employed work.

(ii) Projection of nonfixed income should be based on an average week's earnings multiplied by 52 the number of work weeks in year. This number is usually 52 but it can be less as in the case of vacation without pay, yearly close down for model changeover, etc. The period on which weekly average is based should be at least of 12 weeks duration, if possible. Under the interim made at end of succeeding calendar quarters. Earnings during such quarters rent adjustment policy, reexamination of such nonfixed earnings should be shall be added to previous earnings and a new weekly average obtained based on this extended period. Notice of ineligibility for excess income will not be sent to a tenant whose total income reflects earnings from nonfixed employment until four full quarters in nonfixed employment have been completed and over-income status thereby sustained. Under noninterim rent adjustment policy, at time of annual reexamination, anticipated income shall be based on either average weekly earnings from nonfixed employment multiplied by 52 or total income from all sources during previous 12-month period, whichever sum more closely reflects tenant's probable income during coming 12 months.

(2) Tips and other considerations. Value of tips and other considerations will be included in income determination. Amount projected should be greatest value given in either tenants certificate, employer's report, Social Security Board findings or in following list which is to be used as a guide in ascertaining actual value.

(i) Taxicab drivers--45 percent of commissions.

(ii) Taxicab owners--20 percent of bookings.

(iii) Barbers--20 percent of salary.

(iv) Manicurists, beauty parlor workers--25 percent of salary.

(v) Waiters--from not less than three dollars in tips per working day in less expensive restaurants, to not less than $12 in tips per working day in finest grade restaurants and night clubs. For all waiters, earnings, including tips, should equal a minimum of $12 a day.

(vi) Busboys--from two dollars to four dollars in tips per working day.

(vii) Bellhops, pullman porters, baggage porters--not less than four dollars in tips per working day.

(viii) Doormen--from not less than one dollar in tips per working day for apartment houses to two dollars in tips per working day in hotels and clubs.

(3) Bonuses. Bonuses of a recurring nature in a fixed amount shall be included in anticipated income. Such bonuses include night work differential, Christmas bonuses in those businesses where such bonuses are an established practice of employment, and similar bonuses which follow a discernible pattern as to frequency and amount. A bonus which is earned regularly but varies in rate or amount, such as a production incentive bonus, is a variable bonus and shall be treated as irregular overtime. A bonus which is given without any indication that it will recur is a nonrecurring bonus. It will not be included in anticipated income.

(4) Overtime. Overtime earnings in nonfixed employment are usually included in totals from which average weekly rate is ascertained. Consequently, projection of average weekly rate will reflect such overtime. However, if there is a pattern to the overtime indicating that it is not of a regular or predictable nature, it will be treated the same as irregular overtime in fixed income employment, i.e. only the amount in excess of $200 per year will be included in anticipated income.

(5) Welfare assistance Rents for households receiving monetary welfare assistance will be determined as indicated below unless the local housing authority requests otherwise and such alternate is approved by the division.

(i) Rents for households all of whose members are covered by the monetary welfare assistance (whether full or supplemental) shall be determined in accordance with a schedule of fixed rents based upon the size, by number of bedrooms, of the dwelling unit occupied, but not in excess of the following schedule except when a modified schedule is approved by the New York State Department of Social Services and the division for a specific housing authority:

Apartment size Monthly rent

(by number of bedrooms) (dollars)

0 65

1 77

2 90

3 101

4 107

5 110

(ii) Rent for a non-welfare family having welfare recipients in the household. The rent for a non-welfare family having welfare recipients in the household will be their normal rent plus a proportion of the fixed welfare rent applicable to the occupied apartment. The normal rent will be based on the income of the family of the tenant of record excluding any income or allowances of the welfare recipients. The proportion of the fixed welfare rent will be the ratio that the number of welfare recipients in the household bears to the total number of persons in the household.

(iii) Income reviews are optional where all of the members of the household are receiving monetary welfare assistance (whether full or supplemental). Close liaison should be maintained with the appropriate local social services agency furnishing assistance for exchange of information as to start or discontinuance of welfare assistance, income, household composition, nonpayment of rent, problems of tenancy and other matters. Income reviews are required where some of the members of the household are receiving monetary welfare assistance and others of them are not.

(iv) Other public assistance. Tenants receiving Federal supplemental security income are to be charged rent as provided below:

(a) Tenants who are transferred to the SSI program from welfare on January 1, 1974, shall continue to be treated as public assistance recipients, for purpose of determining scheduled rent, until the time of their next income review after which they shall be treated as nonwelfare tenants.

(b) Tenants who become eligible for SSI for the first time after January 1, 1974, whether or not they were previously on welfare, shall be treated as nonwelfare tenants for purpose of determining scheduled rent.

(c) Tenants who are SSI recipients who move in after January 1, 1974 shall be treated as nonwelfare tenants.

(d) Changes in rents stemming solely from receipt of SSI should be made at the time of regular annual review. Interim changes should not be made unless they would have been made for some other prescribed reason.

(6) Income from own business and self-employment.

(i) General. Income from own business or self-employment will be projected on basis of income and expense statement properly prepared from books of accounts adequately maintained. However, income from own business or self-employment will automatically be considered as in excess of maximum admission or continued occupancy limits if any one of following conditions exist:

(a) Gross receipts from a business engaged predominately in personal services are in excess of $6,000 for admission or $9,000 for continued occupancy (i.e., a business where value of personal service rather than cost of goods is dominant price factor).

(b) Gross receipts from a business engaged predominately in other than personal services are in excess of $12,000 for admission or $18,000 for continued occupancy.

(c) If tenant or applicant employs one or more regular full-time persons in his business, it shall be considered prima facie evidence of ineligibility for either admission or continued occupancy.

(ii) Basis for projecting income. Projection of income must be based on examination of applicant's or tenant's books of accounts. Books of accounts must cover business or self-employment for a period of one year immediately preceding date of income projection. If applicant has been in business for less than one year or does not have properly prepared books of accounts for required period, application shall be deferred and reconsidered when necessary figures are available. If tenant initiates business or self-employment, his income shall be projected and rent established on basis of either his prior earnings or his estimated [earnings] in business, whichever is higher. Under noninterim rent adjustment policy, rent shall not be adjusted until time of annual reexamination or on occasion of one of the three sets of conditions listed under this policy. Under interim rent adjustment policy, however, a report of income and expense will be furnished quarterly by tenant until at least four full quarters have been reported. Tenants income will be projected on basis of these quarterly statements and interim rent changes will be based on these projections. However, no determination of ineligibility for continued occupancy will be made until four full quarters have been completed.

(iii) Determination of present income from self-employment. Net income from self-employment shall be determined by deducting only expenses which are directly connected with business and which are necessary for producing of income therefrom, except that depreciation and provisions for reserves are not allowable deductions. Any expenses which are jointly personal and business shall be apportioned on a pro rata basis. Incomes from self-employment require close scrutiny. Records and income tax returns should be reviewed in complete detail. Note that deductions for depreciation and reserves permitted on income tax returns are not deductible in determining net income for purposes of admission or continued occupancy. The Division of Housing, upon request, will offer assistance in any case where there is doubt as to income from self-employment.

(7) Workmen's compensation. Income from a workmen's compensation award will be projected on a 52-week basis; that is, 52 times current weekly rate of award. If award is in form of lump sum, amount will be considered as a lump sum addition to assets and will not be projected. Under interim rent adjustment policy, however, when compensation rate changes or payments cease, an interim rent change is made. Under this policy, income is also reviewed quarterly to determine if benefits are still being received.

(8) Disability benefits. Income from New York State disability benefits covering off-the-job accidents and sickness will be projected on 52-week basis. Under interim rent adjustment policy, tenant is responsible for reporting any change in status. Under this policy, income is also reviewed quarterly to determine if any change in situation has occurred.

(9) Unemployment insurance benefits. Income from unemployment insurance benefits, Korean veterans' readjustment assistance and from unemployment benefits accruing to members from unions, fraternal organizations, etc., will be projected on 52-week basis. Under interim rent adjustment policy, tenant is responsible for advising of any change in status. In addition, income should be reviewed quarterly to ascertain that tenant is still unemployed.

(10) Servicemen's pay. All income received by a serviceman, including basic pay, extra pay (i.e., flight pay, hazardous service, unusual responsibility, special proficiency, etc.), subsistence allowance, allowance for quarters, and government's share of family allotment, if any, will be included in projection of his income. Exemptions and deductions are same as those applicable to any applicant or tenant. Total income of a serviceman who is head of a family will be included in total family income whether he is residing at home or not. However, where he is residing away from home because of his service assignment, a deduction not exceeding $50 per month may be allowed for extra costs incurred by his residing away from home. Total income of a serviceman who is not head of family will be included in total family income only if he is residing at home. If he is away from home, only that income, including government's share of any allotment, which he sends home will be included in family income.

(11) Other income. All other income of tenant or any member of his family shall be included in projection of annual income. Such miscellaneous income includes alimony, pensions from any source (note exemptions), dividends, interest and regular contributions by a relative or any other person to support of family.

(12) Payments for foster children. Payments made to tenants for child care by State, county or other governmental agencies for care of foster children in tenants homes constitute reimbursement to foster parents for money expended by the foster parent on behalf of the child. Such monies are therefore not to be included when determining probable aggregate annual income.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1627-2.6