IB 
Union Calendar No. 157 
111TH CONGRESS 
1ST SESSION H. R. 3045 
[Report No. 111–277] 
To reform the housing choice voucher program under section 8 of the United 
States Housing Act of 1937. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2009 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mr. BACA, Mr. 
COHEN, and Mrs. BIGGERT) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
SEPTEMBER 30, 2009 
Additional sponsors: Ms. LEE of California, Mr. HINOJOSA, Mr. PIERLUISI, 
and Mr. ISRAEL 
SEPTEMBER 30, 2009 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 25, 2009] 
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A BILL 
To reform the housing choice voucher program under section 
8 of the United States Housing Act of 1937. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Sec-
tion 8 Voucher Reform Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Inspection of dwelling units. 
Sec. 3. Rent reform and income reviews. 
Sec. 4. Eligibility for assistance based on assets and income. 
Sec. 5. Targeting assistance to low-income working families. 
Sec. 6. Voucher renewal funding. 
Sec. 7. Administrative fees. 
Sec. 8. Homeownership. 
Sec. 9. PHA reporting of rent payments to credit reporting agencies. 
Sec. 10. Performance assessments. 
Sec. 11. PHA project-based assistance. 
Sec. 12. Rent burdens. 
Sec. 13. Establishment of fair market rent. 
Sec. 14. Screening of applicants. 
Sec. 15. Prohibition on firearms restrictions in federally assisted housing. 
Sec. 16. Enhanced vouchers. 
Sec. 17. Demonstration program waiver authority. 
Sec. 18. Authorization of appropriations. 
Sec. 19. Agency authority for utility payments in certain circumstances. 
Sec. 20. Utility data. 
Sec. 21. Project-based preservation vouchers. 
Sec. 22. Effect of foreclosure on section 8 tenancies. 
Sec. 23. Study to identify obstacles to using vouchers in federally subsidized hous-
ing projects. 
Sec. 24. Interagency Council on Homelessness. 
Sec. 25. Study of effects of section 8 program on HUD budget and programs. 
Sec. 26. Housing innovation program. 
Sec. 27. Study of use of income databases to reduce subsidy errors. 
Sec. 28. Acceptable identification requirement. 
Sec. 29. Effective date. 
SEC. 2. INSPECTION OF DWELLING UNITS. 
Section 8(o)(8) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(8)) is amended— 
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(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling 
unit for which a housing assistance pay-
ment contract is established under this sub-
section, the public housing agency (or other 
entity pursuant to paragraph (11)) shall 
inspect the unit before any assistance pay-
ment is made to determine whether the 
dwelling unit meets the housing quality 
standards under subparagraph (B), except 
as provided in clause (ii) or (iii) of this 
subparagraph. 
‘‘(ii) 
CORRECTION
OF
NON-LIFE 
THREATENING CONDITIONS.—In the case of 
any dwelling unit that is determined, pur-
suant to an inspection under clause (i), not 
to meet the housing quality standards under 
subparagraph (B), assistance payments 
may be made for the unit notwithstanding 
subparagraph (C) if failure to meet such 
standards is a result only of non-life threat-
ening conditions, as such conditions are es-
tablished by the Secretary. A public housing 
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agency making assistance payments pursu-
ant to this clause for a dwelling unit shall, 
30 days after the beginning of the period for 
which such payments are made, suspend 
any assistance payments for the unit if any 
deficiency resulting in noncompliance with 
the housing quality standards has not been 
corrected by such time, and may not resume 
such payments until each such deficiency 
has been corrected. 
‘‘(iii) USE OF ALTERNATIVE INSPEC-
TION
METHOD
FOR
INTERIM
PERIOD.—In 
the case of any property that within the 
previous 12 months has met the require-
ments of an inspection that qualifies as an 
alternative inspection method pursuant to 
subparagraph (E), a public housing agency 
may authorize occupancy before the inspec-
tion under clause (i) has been completed, 
and may make assistance payments retro-
active to the beginning of the lease term 
after the unit has been determined pursuant 
to an inspection under clause (i) to meet the 
housing quality standards under subpara-
graph (B).’’; 
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(2) by redesignating subparagraph (E) as sub-
paragraph (H); and 
(3) by striking subparagraph (D) and inserting 
the following new subparagraphs: 
‘‘(D) BIENNIAL INSPECTIONS.— 
‘‘(i) 
REQUIREMENT.—Each 
public 
housing agency providing assistance under 
this subsection (or other entity, as provided 
in paragraph (11)) shall, for each assisted 
dwelling unit, make inspections not less 
often than biennially during the term of the 
housing assistance payments contract for 
the unit to determine whether the unit is 
maintained in accordance with the require-
ments under subparagraph (A). 
‘‘(ii) USE
OF
ALTERNATIVE
INSPEC-
TION
METHOD.—The requirement under 
clause (i) may be complied with by use of 
inspections that qualify as an alternative 
inspection method pursuant to subpara-
graph (E). 
‘‘(iii) RECORDS.—The agency (or other 
entity) shall retain the records of the inspec-
tion for a reasonable time and shall make 
the records available upon request to the 
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Secretary, the Inspector General for the De-
partment of Housing and Urban Develop-
ment, and any auditor conducting an audit 
under section 5(h). 
‘‘(E) ALTERNATIVE INSPECTION METHOD.— 
An inspection of a property shall qualify as an 
alternative inspection method for purposes of this 
subparagraph if— 
‘‘(i) the inspection was conducted pur-
suant to requirements under a Federal, 
State, or local housing assistance program 
(including the HOME investment partner-
ships program under title II of the Cran-
ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12721 et seq.) and the low- 
income housing tax credit program under 
section 42 of the Internal Revenue Code of 
1986); and 
‘‘(ii) pursuant to such inspection, the 
property was determined to meet the stand-
ards or requirements regarding housing 
quality or safety applicable to units assisted 
under such program, and, if a non-Federal 
standard was used, the public housing agen-
cy has certified to the Secretary that such 
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standards or requirements provide the same 
protection to occupants of dwelling units 
meeting such standards or requirements as, 
or greater protection than, the housing qual-
ity standards under subparagraph (B). 
‘‘(F) INTERIM INSPECTIONS.—Upon notifi-
cation to the public housing agency, by a family 
on whose behalf tenant-based rental assistance is 
provided under this subsection or by a govern-
ment official, that the dwelling unit for which 
such assistance is provided does not comply with 
the housing quality standards under subpara-
graph (B), the agency shall inspect the dwelling 
unit— 
‘‘(i) in the case of any condition that 
is life-threatening, within 24 hours after re-
ceipt of such notice; and 
‘‘(ii) in the case of any condition that 
is not life-threatening, within 15 days after 
receipt of such notice. 
‘‘(G) ENFORCEMENT OF HOUSING QUALITY 
STANDARDS.— 
‘‘(i) DETERMINATION OF NONCOMPLI-
ANCE.—A dwelling unit that is covered by 
a housing assistance payments contract 
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under this subsection shall be considered, for 
purposes of subparagraphs (D) and (F), to 
be in noncompliance with the housing qual-
ity standards under subparagraph (B) if— 
‘‘(I) the public housing agency or 
an inspector authorized by the State or 
unit of local government determines 
upon inspection of the unit that the 
unit fails to comply with such stand-
ards; 
‘‘(II) the agency or inspector noti-
fies the owner of the unit in writing of 
such failure to comply; and 
‘‘(III) the failure to comply is not 
corrected— 
‘‘(aa) in the case of any such 
failure that is a result of life- 
threatening conditions, within 24 
hours after such notice has been 
provided; and 
‘‘(bb) in the case of any such 
failure that is a result of non-life 
threatening conditions, within 30 
days after such notice has been 
provided or such other reasonable 
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compliance with housing quality standards 
under subparagraph (B). Upon completion 
of repairs by the public housing agency or 
the owner sufficient so that the dwelling 
unit complies with such housing quality 
standards, the agency shall recommence 
payments under the housing assistance pay-
ments contract to the owner of the dwelling 
unit. 
‘‘(iv) USE OF ABATED ASSISTANCE TO 
PAY FOR REPAIRS.— 
‘‘(I) 
AUTHORITY.—The 
public 
housing agency may use such amounts 
abated to make repairs to the dwelling 
unit or to contract to have repairs 
made, except that a contract to make 
repairs may not be entered into with 
the inspector for the dwelling unit re-
ferred to in clause (i)(I). 
‘‘(II) ABATED FUNDS.—For pur-
poses of this clause, abated amounts 
may include amounts withheld during 
the correction period described in 
clause (ii) of this subparagraph with 
respect to a dwelling unit that is subse-
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quently determined under clause (i) to 
be in noncompliance with housing 
quality standards. 
‘‘(III) LIMITATION
OF
LIABILITY 
OF
PUBLIC
HOUSING
AGENCIES.—A 
public housing agency that uses its au-
thority under this clause shall not, if 
the agency accomplishes the work 
through a contractor that is licensed, 
bonded, and insured in amounts and 
with coverage as required by the Sec-
retary, be liable for any injury or 
damages that may result to persons or 
to any property owned by the tenant 
or owner. 
‘‘(v) NOTIFICATION.—If a public hous-
ing agency providing assistance under this 
subsection abates rental assistance pay-
ments pursuant to clause (iii) with respect 
to a dwelling unit, the agency shall, upon 
commencement of such abatement— 
‘‘(I) notify the tenant and the 
owner of the dwelling unit that— 
‘‘(aa) such abatement has 
commenced; and 
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‘‘(bb) if the dwelling unit is 
not brought into compliance with 
housing quality standards within 
60 days after the effective date of 
the determination of noncompli-
ance under clause (i) or such rea-
sonable longer period as the agen-
cy may establish, the tenant will 
have to move; and 
‘‘(II) issue the tenant the nec-
essary forms to allow the tenant to 
move to another dwelling unit and 
transfer the rental assistance to that 
unit. 
‘‘(vi) PROTECTION
OF
TENANTS.—An 
owner of a dwelling unit may not terminate 
the tenancy of any tenant because of the 
withholding or abatement of assistance pur-
suant to this subparagraph. During the pe-
riod that assistance is abated pursuant to 
this subparagraph, the tenant may termi-
nate the tenancy by notifying the owner. 
‘‘(vii) TERMINATION OF LEASE OR AS-
SISTANCE PAYMENTS CONTRACT.—If assist-
ance amounts under this section for a dwell-
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ing unit are abated pursuant to clause (iii) 
and the owner does not correct the non-
compliance within 60 days after the effec-
tive date of the determination of noncompli-
ance under clause (i), or such other reason-
able longer period as the public housing 
agency may establish, and the agency does 
not use its authority under clause (iv), the 
agency shall terminate the housing assist-
ance payments contract for the dwelling 
unit. 
‘‘(viii) RELOCATION.— 
‘‘(I) LEASE OF NEW UNIT.—The 
agency shall provide the family resid-
ing in such a dwelling unit a period of 
90 days or such longer period as is 
necessary to lease a new unit, begin-
ning upon termination of the contract, 
to lease a new residence with tenant- 
based rental assistance under this sec-
tion. 
‘‘(II) AVAILABILITY
OF
PUBLIC 
HOUSING UNITS.—If the family is un-
able to lease such a new residence dur-
ing such period, the public housing 
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agency shall, at the option of the fam-
ily, provide such family a preference 
for occupancy in a dwelling unit of 
public housing that is owned or oper-
ated by the agency that first becomes 
available for occupancy after the expi-
ration of such period. 
‘‘(III) ASSISTANCE
IN
FINDING 
UNIT.—The public housing agency 
shall provide reasonable assistance to 
the family in finding a new residence, 
including use of up to two months of 
any assistance amounts abated pursu-
ant to clause (iii) for costs directly as-
sociated with relocation of the family 
to a new residence, which may include 
moving expenses and security deposits. 
The agency may require that a family 
receiving assistance for a security de-
posit shall remit, to the extent of such 
assistance, the amount of any security 
deposit refunds made by the owner of 
the dwelling unit for which the lease 
was terminated. 
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‘‘(ix) TENANT-CAUSED DAMAGES.—If a 
public housing agency determines that any 
damage to a dwelling unit that results in a 
failure of the dwelling unit to comply with 
housing quality standards under subpara-
graph (B), other than any damage resulting 
from ordinary use, was caused by the ten-
ant, any member of the tenant’s household, 
or any guest or other person under the ten-
ant’s control, the agency may waive the ap-
plicability of this subparagraph, except that 
this clause shall not exonerate a tenant from 
any liability otherwise existing under ap-
plicable law for damages to the premises 
caused by such tenant. 
‘‘(x) APPLICABILITY.—This subpara-
graph shall apply to any dwelling unit for 
which a housing assistance payments con-
tract is entered into or renewed after the 
date of the effectiveness of the regulations 
implementing this subparagraph.’’. 
SEC. 3. RENT REFORM AND INCOME REVIEWS. 
(a) RENT FOR PUBLIC HOUSING AND SECTION 8 PRO-
GRAMS.—Section 3 of the United States Housing Act of 
1937 (42 U.S.C. 1437a) is amended— 
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the unit, as determined by the public 
housing agency, a ceiling rent for each 
dwelling unit that it owns and oper-
ates; and 
‘‘(II) such ceiling rent is adjusted 
periodically on the basis of an infla-
tion index or a recalculation of the 
rental value of the unit (which may be 
recalculated by unit or by building); 
‘‘(ii) an income-tiered tenant rent 
structure in which the amount of rent a 
family shall pay is set and distributed on 
the basis of broad tiers of income and such 
tiers and rents are adjusted on the basis of 
an annual cost index except that families 
shall not be offered a rent lower than the 
rent corresponding to their income tier; or 
‘‘(iii) a tenant rent structure in which 
the amount of rent a family shall pay is 
based on a percentage of family income, ex-
cept that lower percentages may apply only 
with respect to earned income; such a rent 
structure may provide for an amount of 
rent based on a calculation of earned in-
come that provides for disregard of a higher 
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percentage or higher dollar amount, or both, 
than provided for in paragraph (8)(B). 
‘‘(B) 
LIMITATION.—Notwithstanding 
the 
authority provided under subparagraph (A), the 
amount paid for rent (including the amount al-
lowed for tenant-paid utilities) by any family 
for a dwelling unit in public housing may not 
exceed the amount determined under subsection 
(a)(1) of this section. The Secretary shall issue 
regulations and establish procedures for public 
housing agency calculations and documentation 
as are necessary to ensure compliance with this 
subparagraph. 
‘‘(C) ELDERLY
FAMILIES
AND
DISABLED 
FAMILIES.—Notwithstanding any other provision 
of this Act, this paragraph shall not apply to el-
derly families and disabled families.’’; and 
(F) by adding at the end the following new 
paragraphs: 
‘‘(7) REVIEWS OF FAMILY INCOME.— 
‘‘(A) FREQUENCY.—Reviews of family in-
come for purposes of this section shall be made— 
‘‘(i) in the case of all families, upon 
the initial provision of housing assistance 
for the family; 
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‘‘(ii) annually thereafter, except as 
provided in subparagraph (B)(i); 
‘‘(iii) upon the request of the family, at 
any time the income or deductions (under 
subsection (b)(5)) of the family change by 
an amount that is estimated to result in a 
decrease of $1,200 (or such lower amount as 
the public housing agency or owner may, at 
the option of the agency or owner, establish) 
or more in annual adjusted income; and 
‘‘(iv) at any time the income or deduc-
tions (under subsection (b)(5)) of the family 
change by an amount that is estimated to 
result in an increase of $1,200 or more in 
annual adjusted income, except that any in-
crease in the earned income of a family 
shall not be considered for purposes of this 
clause (except that earned income may be 
considered if the increase corresponds to 
previous decreases under clause (iii)), except 
that a public housing agency or owner may 
elect not to conduct such review in the last 
three months of a certification period. 
‘‘(B) FIXED-INCOME FAMILIES.— 
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‘‘(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 or owner 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 ac-
cordance with such requirements as the Sec-
retary shall establish, that the income of the 
family meets the requirements of clause (ii) 
of this subparagraph and that the sources of 
such income have not changed since the pre-
vious year, except that the public housing 
agency or owner 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 pur-
suant to subparagraph (A) or clause (i) of 
this subparagraph, of which 90 percent or 
more consists of fixed income, as such term 
is defined in clause (iii). 
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‘‘(iii) FIXED INCOME.—For purposes of 
this subparagraph, the term ‘fixed income’ 
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 Se-
curity Act and payments pursuant to 
an agreement entered into under sec-
tion 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 that are of substan-
tially the same amounts from year to 
year. 
‘‘(C) IN GENERAL.—Reviews of family in-
come for purposes of this section shall be subject 
to the provisions of section 904 of the Stewart B. 
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McKinney Homeless Assistance Amendments Act 
of 1988. 
‘‘(8) CALCULATION OF INCOME.— 
‘‘(A) USE OF CURRENT YEAR INCOME.—In 
determining family income for initial occupancy 
or provision of housing assistance pursuant to 
clause (i) of paragraph (7)(A) or pursuant to re-
views pursuant to clause (iii) or (iv) of such 
paragraph, a public housing agency or owner 
shall use the income of the family as estimated 
by the agency or owner for the upcoming year. 
‘‘(B) USE OF PRIOR YEAR INCOME.—In de-
termining family income for annual reviews 
pursuant to paragraph (7)(A)(ii), a public hous-
ing agency or owner shall, except as otherwise 
provided in this paragraph, use the income of 
the family as determined by the agency or owner 
for the preceding year, taking into consideration 
any redetermination of income during such prior 
year pursuant to clause (iii) or (iv) of para-
graph (7)(A). 
‘‘(C) 
INFLATIONARY
ADJUSTMENT
FOR 
FIXED INCOME FAMILIES.— 
‘‘(i) IN
GENERAL.—In any year in 
which a public housing agency or owner 
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does not conduct a review of income for any 
family described in clause (ii) of paragraph 
(7)(B) pursuant to the authority under 
clause (i) of such paragraph to waive such 
a review, such family’s prior year’s income 
determination shall, subject to clauses (ii) 
and (iii), be adjusted by applying an infla-
tionary factor as the Secretary shall, by reg-
ulation, establish. 
‘‘(ii) 
EXEMPTION
FROM
ADJUST-
MENT.—A public housing agency or owner 
may exempt from an adjustment pursuant 
to clause (i) any income source for which 
income does not increase from year to year. 
‘‘(iii) APPLICABILITY OF INFLATIONARY 
FACTOR.—The inflationary factor adjust-
ment referred to in clause (i) shall not be 
made with respect to the first year after the 
year in which housing is occupied or hous-
ing assistance is initially provided for a 
family. 
‘‘(D) OTHER INCOME.—In determining the 
income for any family based on the prior year’s 
income, with respect to prior year calculations of 
income not subject to subparagraph (B), a public 
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housing agency or owner may make other adjust-
ments as it considers appropriate to reflect cur-
rent income. 
‘‘(E) SAFE
HARBOR.—A public housing 
agency or owner may, to the extent such infor-
mation is available to the public housing agency 
or owner, determine the family’s income prior to 
the application of any deductions based on time-
ly income determinations made for purposes of 
other means-tested Federal public assistance pro-
grams (including the program for block grants to 
States for temporary assistance for needy fami-
lies under part A of title IV of the Social Secu-
rity Act, a program for Medicaid assistance 
under a State plan approved under title XIX of 
the Social Security Act, and the food stamp pro-
gram as defined in section 3(h) of the Food 
Stamp Act of 1977). The Secretary shall, in con-
sultation with other appropriate Federal agen-
cies, develop procedures to enable public housing 
agencies and owners to have access to such in-
come determinations made by other means-tested 
Federal programs that the Secretary determines 
to have comparable reliability. Exchanges of such 
information shall be subject to the same limita-
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tions and tenant protections provided under sec-
tion 904 of the Stewart B. McKinney Homeless 
Assistance Act Amendments of 1988 (42 U.S.C. 
3544) with respect to information obtained 
under the requirements of section 303(i) of the 
Social Security Act (42 U.S.C. 503(i)). 
‘‘(F) PHA AND
OWNER
COMPLIANCE.—A 
public housing agency or owner may not be con-
sidered to fail to comply with this paragraph or 
paragraph (7) due solely to any de minimus er-
rors made by the agency or owner in calculating 
family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as subsection 
(d). 
(b) INCOME.—Section 3(b) of the United States Hous-
ing 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 or is the head of household or spouse of 
the head of the household, plus unearned income by 
or on behalf of each dependent who is less than 18 
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years of age, as determined in accordance with cri-
teria prescribed by the Secretary, in consultation with 
the Secretary of Agriculture, subject to the following 
requirements: 
‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual income 
from assets, and profit or loss from a business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include— 
‘‘(i) any imputed return on assets; 
‘‘(ii) any amounts that would be eligi-
ble for exclusion under section 1613(a)(7) of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1382b(a)(7)); and 
‘‘(iii) deferred disability benefits from 
the Department of Veterans Affairs that are 
received in a lump sum amount or in pro-
spective monthly amounts. 
‘‘(C) EARNED INCOME OF STUDENTS.—Such 
term does not include earned income of any de-
pendent earned during any period that such de-
pendent is attending school or vocational train-
ing on a full-time basis or any grant-in-aid or 
scholarship amounts related to such attendance 
used for the cost of tuition or books. 
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‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 
Income shall be determined without regard to 
any amounts in or from, or any benefits from, 
any Coverdell education savings account under 
section 530 of the Internal Revenue Code of 1986 
or any qualified tuition program under section 
529 of such Code. 
‘‘(E) OTHER EXCLUSIONS.—Such term shall 
not include other exclusions from income as are 
established by the Secretary or any amount re-
quired by Federal law to be excluded from con-
sideration as income. The Secretary may not re-
quire a public housing agency or owner to main-
tain records of any amounts excluded from in-
come pursuant to this subparagraph.’’; and 
(2) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted in-
come’ means, with respect to a family, the amount (as 
determined by the public housing agency or owner) of 
the income of the members of the family residing in 
a dwelling unit or the persons on a lease, after any 
deductions from income as follows: 
‘‘(A) EARNED
INCOME
DISREGARD.—An 
amount equal to 10 percent of the lesser of— 
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‘‘(i) the family’s earned income; or 
‘‘(ii) $9,000, except that such amount 
shall be adjusted annually by applying to 
such amount (as it may have been pre-
viously adjusted) an inflationary factor as 
the Secretary shall, by regulation, establish 
and except that for purposes of adjusted in-
come determinations each year such amount 
shall be established by rounding the amount 
calculated down to the next lowest multiple 
of $1,000. 
The deduction under this subparagraph shall not 
be considered in determining adjusted income for 
the purposes of section 16 (relating to eligibility 
for assisted housing and income mix). 
‘‘(B) ELDERLY AND DISABLED FAMILIES.— 
$725 in the case of any family that is an elderly 
family or a disabled family. 
‘‘(C) DEPENDENTS.—In the case of any 
family that includes a member or members 
who— 
‘‘(i) are less than 18 years of age or at-
tending school or vocational training on a 
full-time basis; or 
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