Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 6.00 - Occupancy Standards and Tenant Participation for State-Aided Housing › Section 6.05 - Determination of Gross Household Income and Net Household Income

Current through Register 1525, July 5, 2024
(1)
The Computation of Net
			 Household Income
. Rent is a percentage of net Household income, as
			 provided in
			 760
			 CMR 6.04(1), (25%, 27%, 30%,
			 or 32% except as provided in
			 760
			 CMR 6.04(1)(c) and (d)). In
			 order to determine net Household income, the LHA shall first determine gross
			 Household income. Gross Household income includes the income items set out in
			 760
			 CMR 6.05(2)  and excludes
			 the non income items set out in
			 760
			 CMR 6.05(3). The deductions
			 set out in
			 760
			 CMR 6.05(4)  are deducted
			 from gross Household income so computed, and the result is net Household
			 income.
(2)
Inclusions
			 in Gross Household Income
. Gross Household income shall be the
			 total of the following items:
(a) The full
			 amount, before any payroll deductions, of wages and salaries, overtime pay,
			 commissions, fees, tips and bonuses, and other compensation for personal
			 services.
(b) Income from the
			 operation of a business or profession by each self-employed Household Member
			 after deduction for the ordinary and necessary expenses of the business or
			 profession. The deductible expenses of the business or profession shall not
			 exceed 85% of the gross receipts of the business or profession. Deductible
			 expenses of the business or profession shall not include rent or Utilities paid
			 for the Tenant's unit if the business or profession is located in the Tenant's
			 unit.
(c) Income of any kind from
			 real or personal property including rent, dividends, and interest. Amortization
			 of capital indebtedness and depreciation shall not be deducted in computing net
			 income. Any realization of taxable capital gain on sale or transfer of an
			 investment or other real or personal property shall be included in income. If
			 the Household has marketable real or personal property with a fair market value
			 exceeding $25,000 (excluding any automobile used as the primary means of
			 transportation by one or more Household Members), gross Household income shall
			 include the higher of actual income derived from any such property or a
			 percentage of the value of such property. This percentage shall be one percent
			 or as otherwise determined from time to time by EOHLC and posted on EOHLC's
			 website.
(d) Periodic payments
			 received from social security, annuities, retirement funds, and pensions,
			 individual retirement accounts, and other similar types of periodic payments of
			 retirement benefits, excluding non taxable amounts which constitute return of
			 capital and are specifically identified as such by payer.
(e) Payments in lieu of earnings, such as
			 unemployment compensation; Supplemental Security Income (SSI); Social Security
			 Disability Income (SSDI); and benefits in
lieu
of earnings
			 under disability insurance, health and accident insurance or workers'
			 compensation. An unallocated lump sum settlement or similar payment all or
			 partly on account of lost wages resulting from an injury shall be equitably
			 allocated to reflect a monthly payment on account of lost wages for the period
			 during which the recipient is likely to be disabled from the injury and the
			 recipient will be deemed to receive such a monthly payment each month during
			 the continuance of his or her disability until the allocated funds are deemed
			 exhausted. Payments from the government, subsequently reimbursed to the
			 government, are not to be included as income.
(f) Contributions or gifts received from non
			 Household Members that are more than $5,000 in the aggregate in a 12-month
			 period, provided that only the amount of the contributions or gifts that
			 exceeds $5,000 in the aggregate shall be included.
(g) Regular payments of public assistance,
			 excluding food stamps.
(h) Payments
			 received for the support of a Household Member, such as payments for child
			 support, foster care, social security, or public assistance, including payments
			 nominally made to a Household Member for his or her support but controlled for
			 his or her benefit by another Household Member who is responsible for his or
			 her support.
(i) Lottery winnings,
			 gambling winnings and similar receipts.
(j) Receipts of principal and income from the
			 trustee of a trust, and receipts of income from the executor or administrator
			 of an estate or from some other fiduciary.
(k) Alimony or payment for separate
			 support.