•HR 5443 IH1S 
come of a family shall not be considered 
for purposes of this clause. 
‘‘(B) FIXED-INCOME FAMILIES.— 
‘‘(i) SELF CERTIFICATION AND 3-YEAR 
REVIEW.—In the case of any family de-
scribed in clause (ii), after the initial re-
view of the family’s income pursuant to 
subparagraph (A)(i), the public housing 
agency shall not be required to conduct a 
review of the family’s income pursuant to 
subparagraph (A)(ii) for any year for 
which such family certifies, in accordance 
with such requirements as the Secretary 
shall establish, that the income of the fam-
ily meets the requirements of clause (ii) of 
this subparagraph, except that the public 
housing agency shall conduct a review of 
each such family’s income not less than 
once every 3 years. 
‘‘(ii) ELIGIBLE FAMILIES.—A family 
described in this clause is a family who has 
an income, as of the most recent review 
pursuant to subparagraph (A) or clause (i) 
of this subparagraph, of which 90 percent 
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•HR 5443 IH1S 
or more consists of fixed income, as such 
term is defined in clause (ii). 
‘‘(iii) FIXED INCOME.—For purposes 
of this subparagraph, the term ‘fixed in-
come’ includes income from— 
‘‘(I) the supplemental security in-
come program under title XVI of the 
Social Security Act, including supple-
mentary payments pursuant to an 
agreement for Federal administration 
under section 1616(a) of the Social 
Security Act and payments pursuant 
to an agreement entered into under 
section 212(b) of Public Law 93–66; 
‘‘(II) Social Security payments; 
‘‘(III) Federal, State, local and 
private pension plans; and 
‘‘(IV) other periodic payments re-
ceived from annuities, insurance poli-
cies, retirement funds, disability or 
death benefits, and other similar types 
of periodic receipts. 
‘‘(C) IN GENERAL.—Reviews of family in-
come for purposes of this section shall be sub-
ject to the provisions of section 904 of the 
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•HR 5443 IH1S 
Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988. 
‘‘(7) CALCULATION OF INCOME.— 
‘‘(A) USE OF PRIOR YEAR’S INCOME.—Ex-
cept as otherwise provided in this paragraph, in 
determining the income of a family for a year, 
a public housing agency may use the income of 
the family as determined by the agency for the 
prior year, taking into consideration any rede-
termination of income during such prior year 
pursuant to clause (iii) or (iv) of paragraph 
(6)(A). 
‘‘(B) EARNED INCOME.—For purposes of 
this section, the earned income of a family for 
a year shall be the amount of earned income of 
the family in the prior year minus an amount 
equal to 10 percent of such prior year’s earned 
income, except that the income of a family for 
purposes of section 16 (relating to eligibility for 
assisted housing and income mix) shall be de-
termined without regard to any reduction under 
this subparagraph. 
‘‘(C) INFLATIONARY
ADJUSTMENT
FOR 
FIXED INCOME FAMILIES.—If, for any year, a 
public housing agency determines the income 
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•HR 5443 IH1S 
for any family described in paragraph (6)(ii), or 
the amount of fixed income of any other family, 
based on the prior year’s income or fixed in-
come, respectively, pursuant to subparagraph 
(A), such prior year’s income or fixed income, 
respectively, shall be adjusted by applying an 
inflationary factor as the Secretary shall, by 
regulation, establish. 
‘‘(D) OTHER INCOME.—If, for any year, a 
public housing agency determines the income 
for any family based on the prior year’s income, 
with respect to prior year calculations of types 
of income not subject to subparagraph (B), a 
public housing agency may make other adjust-
ments as it considers appropriate to reflect cur-
rent income. 
‘‘(E) SAFE
HARBOR.—A public housing 
agency may, to the extent such information is 
available to the public housing agency, deter-
mine the family’s income for purposes of this 
section based on timely income determinations 
made for purposes of other means-tested Fed-
eral public assistance programs (including the 
program for block grants to States for tem-
porary assistance for needy families under part 
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A of title IV of the Social Security Act, a pro-
gram for medicaid assistance under a State 
plan approved under title XIX of the Social Se-
curity Act, and the food stamp program as de-
fined in section 3(h) of the Food Stamp Act of 
1977). 
‘‘(F) PHA COMPLIANCE.—A public hous-
ing agency may not be considered to fail to 
comply with this paragraph or paragraph (6) 
due solely to any de minimus errors made by 
the agency in calculating family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as sub-
section (d). 
(b) INCOME.—Section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended— 
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) INCOME.—The term ‘income’ means, with 
respect to a family, income received from all sources 
by each member of the household who is 18 years 
of age or older, as determined in accordance with 
criteria prescribed by the Secretary, in consultation 
with the Secretary of Agriculture, subject to the fol-
lowing requirements: 
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•HR 5443 IH1S 
‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual in-
come from assets, and profit or loss from a 
business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include any imputed return on assets. 
‘‘(C) EARNED
INCOME
OF
STUDENTS.— 
Such term does not include earned income of 
any dependent earned during any period that 
such dependent is attending school on a full- 
time basis. 
‘‘(D) OTHER
EXCLUSIONS.—Such term 
shall not include other exclusions from income 
as are established by the Secretary or any 
amount required by Federal law to be excluded 
from consideration as income. The Secretary 
may not require a public housing agency to 
maintain records of any amounts excluded from 
income pursuant to this subparagraph.’’; and 
(2) in paragraph (5)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘income exclusions’’ and insert-
ing ‘‘deductions from income’’; and 
(B) by striking subparagraphs (A) and (B) 
and inserting the following: 
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