FY 2009 Income Limits Documentation System

FY 2009 Extremely Low-Income (30%) Income Limits Calculation

The Quality Housing and Work Responsibility Act of 1998 established a new income limit standard based on 30 percent of median family income, which was to be adjusted for family size and for areas of unusually high or low family income. A statutory change was made in 1999 to clarify that these income limits should be tied to the Section 8 very low-income limits. The 30 percent income limits, therefore, are calculated as 30/50ths (60 percent) of the Section 8 very low-income limits. They are then compared to Supplemental Security Income (SSI) benefits. Since SSI benefits provide the minimum entitlement income for elderly and disabled households, the one-person 30 percent income limits are increased if they would otherwise be less than the minimum SSI level.

In accord with the Very Low-Income Limits (based on 50% of MFI), the Extremely Low-Income limits are subject to a Hold Harmless policy.

1. The first step in establishing the Extremely Low Income Limit is establishing the preliminary 4-person income limit. This is accomplished by multiplying the 4-Person Very Low-Income limit by 0.6 (30%/50%). The calculations are as follows:

   Area	4-Person Very Low-Income Limit	Preliminary 4-Person Extremely Low-Income Limit
   Butler County, OH	$34,600	$20,750

2. The 1-Person Income Limit is compared to the Annual Maximum Potential SSI Benefits.

   Area	Preliminary 1-Person Extremely Low-Income Limit 70% of 4-Person Limit	SSI Benefit1	Adjustment
   Butler County, OH	$20,750 * .7 = $14,550	$8,088	Is $8,088 > $14,550? No

   ¹The 2009 SSI Data is taken from www.socialsecurity.gov. The exact page can be accessed through this link.

3. Next, a preliminary Extremely Low-Income limit is calculated for each person-size level from the preliminary 4 person limit. Typically, if an area is subject to the Hold Harmless provisions at the Very Low-Income (50%) level, this will carry over to the Extremely Low-Income (30%) level. However, to ensure that there are no discrepencies due to rounding, following the calculation of each person sized income limit, a comparison is made to the FY 2008 value to determine if a "hold harmless" policy is to be invoked for these Extremely Low-Income Limits.

   Butler County, OH
   Income Limit	1-person	2-person	3-person	4-person	5-person	6-person	7-person	8-person
   Preliminary FY 2009	$14,550	$16,600	$18,700	$20,750	$22,400	$24,050	$25,750	$27,400
   Final FY2008 for Hold Harmless	$13,900	$15,900	$17,850	$19,850	$21,450	$23,050	$24,600	$26,200
   Hold Harmless Invoked	No	No	No	No	No	No	No	No
   FINAL FY2009 Extremely Low-Income Limits	$14,550	$16,600	$18,700	$20,750	$22,400	$24,050	$25,750	$27,400