Encouragement to Work and Earn Income

When pursuing financial recovery, it is helpful to know about the available programs and resources available that can assist. Information on some of these programs can be found in other articles of the Housing Planning Library (please refer to Financial Programs: Making Living More Affordable for information on Individual Development Accounts, Earned Income Credit, Home Heating Credits, and Weatherization Assistance Programs). The Social Security Department has a few earned work income incentives too, like the Social Security Earned Income Disregard (also referred to as "EID" and the Expedited Reinstatement (EXR) of social security benefits (see your local Social Security Office or contact United Cerebral Palsy 800-827-4843for more details).

There is also an incentive for people with disabilities living in subsidized apartments to earn income. Below is an explanation of the Housing and Urban Development's Title 24 Part 5, which allows individuals and families with disabilities to continue to get the same housing subsidy when they began to go to work and earn money:

Disallowance of increase in annual income (1) Initial twelve month exclusion. During the cumulative twelve month period beginning on the date a member who is a person with disabilities of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the responsible entity must exclude from annual income (as defined in the regulations governing the applicable program listed in paragraph (a) of this section) of qualified family and any increase in income of the family member who is a person with disabilities as a result of employment over prior income of that family member.

(2) Second twelve month exclusion and phase-in. During the second cumulative twelve month period after the day a member who is a person with disabilities of a qualified family is first employed or the family first experiences an increase in annual income attributable to employment, the responsible entity must exclude from annual income of a qualified family fifty percent of any increase in income of such family member as a result of employment over income of that family member prior to the beginning of such employments.

(3) Maximum four year disallowance. The disallowance of increased income of an individual family member who is a person with disabilities. As provided in paragraph (c)(1) or (c)(2) is limited to a lifetime 48 month period.

As stated above, if a person is using a Housing Choice Voucher (section 8), is living in a place that receives Housing and Urban Development Funds, or is staying in a Section 8 Project-Based Assisted home, his/her first year's increase in earned (worked) income is excluded from rent adjustments. A person living in a subsidized apartment or a person with a Section 8 voucher can go to work and their housing subsidy will not change for the first year of work. This rule is in place so people working toward financial recovery will not be penalized and to provide additional incentives to pursue employment.