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federalUnited StatesCommunity Development Block Grant (rental housing activities)income_calculation

A CDBG grantee elects one of three definitions of income per activity, and integrally related activities must use the same one

cdbg.income_calculation.permitted_definitions_of_annual_income · v1.0.0

For the purpose of determining whether a family or household is low- and moderate-income under subpart C of part 570, the grantee may select any of three definitions of income for each activity: annual income as defined for Section 8 at 24 CFR 5.609; annual income as reported under the Census long form for the most recent available decennial Census; or adjusted gross income as defined for IRS Form 1040 reporting. Integrally related activities of the same type that qualify under the same paragraph of 24 CFR 570.208(a) must use the same definition. The option does not apply to area benefit activities under 570.208(a)(1), which generally must use the area income data HUD supplies, except where the recipient carries out a survey under 570.208(a)(1)(vi). Annual income is estimated by projecting the prevailing rate of income of each person at the time assistance is provided, and income or asset enhancement derived from the CDBG-assisted activity is not counted.

The three definitions are not interchangeable in effect. Census long-form income and IRS adjusted gross income both diverge materially from 24 CFR 5.609 annual income, so a file reviewed against the wrong definition can be recomputed into or out of eligibility. Establish the election from the grantee's own activity documentation before recomputing any CDBG income.
Confidence
high
Effective from
1988-10-21
Last reviewed
2026-08-31

Evidence required

  • Tenant Income Certification(at_least_one)

Citations

All sources verified within 1 day
  • Community Development Block Grants
    24 CFR 570.3, definition of 'Income'
    regulationSource ↗verified 1d ago
  • Community Development Block Grants
    24 CFR 570.3, definition of 'Income', paragraph (1)(i) and (1)(iii)
    regulationSource ↗verified 1d ago
  • Community Development Block Grants
    24 CFR 570.3, definition of 'Income', paragraph (2)
    regulationSource ↗verified 1d ago
  • Community Development Block Grants
    24 CFR 570.506(b)(1)
    regulationSource ↗verified 1d ago