DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.

SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME. (a) Adjusted Income.— Paragraph (5) of section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is amended to read as follows: “(5) Adjusted Income.— The term ‘adjusted income’ means, with respect to a family, the amount (as determined by the public housing agency) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any income exclusions as follows: “(A) Mandatory exclusions.— In determining adjusted income, a public housing agency shall exclude from the annual income of a family the following amounts: “(i) Elderly and disabled families.— $400 for any elderly or disabled family. “(ii) Medical expenses.—The amount by which 3 percent of the annual family income is exceeded by the sum of— “(I) unreimbursed medical expenses of any elderly family or disabled family; “(II) unreimbursed medical expenses of any family that is not covered under subclause (I), except that this subclause shall apply only to the extent approved in appropriation Acts; and “(III) unreimbursed reasonable attendant care and auxiliary apparatus expenses for each handicapped member of the family, to the extent necessary to enable any member of such family (including such handicapped member) to be employed. “(iii) Child care expenses.—Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education. “(iv) Minors, students, and persons with disabilities.— $480 for each member of the family residing in the household (other than the head of the household or his or her spouse) who is less than 18 years of age or is attending school or vocational training on a full-time basis, or who is 18 years of age or older and is a person with disabilities. “(v) Child support payments.— Any payment made by a member of the family for the support and maintenance of any child who does not reside in the household, except that the amount excluded under this clause may not exceed $480 for each child for whom such payment is made; except that this clause shall apply only to the extent approved in appropriations Acts. “(vi) Spousal support expenses.— Any payment made by a member of the family for the support and maintenance of any spouse or former spouse who does not reside in the household, except that the amount excluded under this clause shall not exceed the lesser of (I) the amount that such family member has a legal obligation to pay, or (II) $550 for each individual for whom such payment 112 STAT. 2527 is made; except that this clause shall apply only to the extent approved in appropriations Acts. “(vii) Earned income of minors.— The amount of any earned income of a member of the family who is not— “(I) 18 years of age or older; and “(II) the head of the household (or the spouse of the head of the household). “(B) Permissive exclusions for public housing.— In determining adjusted income, a public housing agency may, in the discretion of the agency, establish exclusions from the annual income of a family residing in a public housing dwelling unit. Such exclusions may include the following amounts: “(i) Excessive travel expenses.— Excessive travel expenses in an amount not to exceed $25 per family per week, for employment- or education-related travel. “(ii) Earned income.—An amount of any earned income of the family, established at the discretion of the public housing agency, which may be based on— “(I) all earned income of the family, “(II) the amount earned by particular members of the family; “(III) the amount earned by families having certain characteristics; or “(IV) the amount earned by families or members during certain periods or from certain sources. “(iii) Others.—Such other amounts for other purposes, as the public housing agency may establish.”. (b) Disallowance of Earned Income From Public Housing Rent Determinations.— (1) In general.— Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is amended— (A) by striking the undesignated paragraph that follows subsection (c)(3) (as added by section 515(b) of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101–625; 104 Stat. 4199)); and (B) by adding at the end the following new subsections: “(d) Disallowance of Earned Income From Rent Determinations.— “(1) In general.— Notwithstanding any other provision of law, the rent payable under subsection (a) by a family described in paragraph (3) of this subsection may not be increased as a result of the increased income due to such employment during the 12-month period beginning on the date on which the employment is commenced. “(2) Phase-in of rent increases.— Upon the expiration of the 12-month period referred to in paragraph (1), the rent payable by a family described in paragraph (3) may be increased due to the continued employment of the family member described in paragraph (3)(B), except that during the 12-month period beginning upon such expiration the amount of the increase may not be greater than 50 percent of the amount of the total rent increase that would be applicable but for this paragraph. “(3) Eligible families.— A family described in this paragraph is a family— “(A) that— 112 STAT. 2528 “(i) occupies a dwelling unit in a public housing project; or “(ii) receives assistance under section 8; and “(B) (i) whose income increases as a result of employment of a member of the family who was previously unemployed for 1 or more years; “(ii) whose earned income increases during the participation of a family member in any family self-sufficiency or other job training program; or “(iii) who is or was, within 6 months, assisted under any State program for temporary assistance for needy families funded under part A of title IV of the Social Security Act and whose earned income increases. “(4) Applicability.— This subsection and subsection (e) shall apply beginning upon October 1, 1999, except that this subsection and subsection (e) shall apply with respect to any family described in paragraph 3(A)(ii) only to the extent provided in advance in appropriations Acts. “(e) Individual Savings Accounts.— “(1) In general.— In lieu of a disallowance of earned income under subsection (d), upon the request of a family that qualifies under subsection (d), a public housing agency may establish an individual savings account in accordance with this subsection for that family. “(2) Deposits to account.— The public housing agency shall deposit in any savings account established under this subsection an amount equal to the total amount that otherwise would be applied to the family’s rent payment under subsection (a) as a result of employment. “(3) Withdrawal from account.— Amounts deposited in a savings account established under this subsection may only be withdrawn by the family for the purpose of— “(A) purchasing a home; “(B) paying education costs of family members; “(C) moving out of public or assisted housing; or “(D) paying any other expense authorized by the public housing agency for the purpose of promoting the economic self-sufficiency of residents of public and assisted housing.”. (2) Savings provision.— Notwithstanding the amendment made by paragraph (1), the provisions of the undesignated paragraph at the end of section 3(c)(3) of the United States Housing Act of 1937, as such section was in effect immediately before the enactment of this Act, shall continue to apply until the effective date under section 503 of this Act. Notwithstanding the amendment made by subsection (a) of this section, nor the applicability under section 402(f) of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) of the amendments made by such section 402, nor any repeal of such section 402(f), the provisions of section 3(b)(5)(G) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such section was in effect immediately before the date of the enactment of this Act, shall continue to apply until the effective date under section 503 of this Act. (c) Median Income.— (1) In general.— Section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended— (A) in the 4th sentence— 112 STAT. 2529 (i) by striking “County” and inserting “and Rockland Counties”; and (ii) by inserting “each” before “such county”; (B) in the last sentence— (i) by striking “County” the 1st place it appears and inserting “or Rockland Counties”; and (ii) by striking “County” the 2d place it appears and inserting “and Rockland Counties”; and (C) by adding at the end the following new sentences: “In determining areas that are designated as difficult development areas for purposes of the low-income housing tax credit, the Secretary shall include Westchester and Rockland Counties, New York, in the New York City metropolitan area.”. (2) Applicability.— The amendments made by this paragraph are made on, and shall apply beginning upon, the date of the enactment of this Act. (d) Availability of Income Matching Information.— (1) Availability.— Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection: “(f) Availability of Income Matching Information.— “(1) Disclosure to pha.— A public housing agency shall require any family described in paragraph (2) who receives information regarding income, earnings, wages, or unemployment compensation from the Department of Housing and Urban Development pursuant to income verification procedures of the Department to disclose such information, upon receipt of the information, to the public housing agency that owns or operates the public housing dwelling unit in which such family resides or that provides the housing assistance under this Act on behalf of such family, as applicable. “(2) Families covered.— A family described in this paragraph is a family that resides in a dwelling unit— “(A) that is a public housing dwelling unit; or “(B) for which tenant-based assistance is provided under section 8.”. (2) Protection of applicants and participants.— Section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544) is amended— (A) in subsection (b)— (i) in paragraph (2), by striking “and” at the end; (iii) in paragraph (3), by striking the period at the end and inserting “; and”; and (ii) by adding at the end the following new paragraph: “(4) only in the case of an applicant or participant that is a member of a family described in section 3(f)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(f)(2)), sign an agreement under which the applicant or participant agrees to provide to the appropriate public housing agency the information required under section 3(f)(1) of such Act for the sole purpose of the public housing agency verifying income information pertinent to the applicant’s or participant’s eligibility or level of benefits, and comply with such agreement.”; and 112 STAT. 2530 (B) in subsection (c)— (i) in paragraph (2)(A), in the matter preceding clause (i)— (I) by inserting before “or” the first place it appears the following: “, pursuant to section 3(d)( 1) of the United States Housing Act of 1937 from the applicant or participant,”; and (II) by inserting “or 3(d)(1)” after “such section 303(i)”; and (ii) in paragraph (3)— (I) in subparagraph (A), by inserting “, section 3(d)(1) of the United States Housing Act of 1937,” after “Social Security Act”; (II) in subparagraph (A), by inserting “or agreement, as applicable,” after “consent”; (III) in subparagraph (B), by inserting “section 3(d)(1) of the United States Housing Act of 1937,” after “Social Security Act,”; and (IV) in subparagraph (B), by inserting “, such section 3(d)(1),” after “such section 303(i),” each place it appears.