HADS UPDATE NOTE March 01, 2007 This document describes the revisions to the Housing Affordability Data System (HADS) implemented in the files dated 022707. 1. Poverty Level Income, 2001: Due to a data processing error, the poverty level income variable (IPOV) in the 2001 HADS file (only) was too low. The error has been corrected. This affects all of the income and cost relative to poverty variables in the 2001 file. 2. Imputation for Underreported Income: As is described on page 10 of the HADS documentation, Households which report zero or negative incomes but are living in uncrowded, adequate housing that cost more than the Fair Market Rent are classified as having the area median income. Their housing cost burdens are calculated on this basis. We erronously used Cost06 rather than ZSMHC when making this determination and when calculating burden for these households. This has been corrected. Note that Cost06 is the same as ZSMHC for renters, but not for owners. Thus, this correction changes the income classification and burden of some owner-occupied occupied households. 3. Formatted Housing Cost Burden: The Burden variable uses the special code of -1 for households with zero or negative incomes. In the previous version of HADS, the formatted burden variable, FMTBurden, erroneously classified such households as having burdens under 30% of income. We have added an additional category to the formatting, so that FMTBurden reports such households separately. CONTACT David A. Vandenbroucke Senior Economist Office of Policy Development and Research U.S. Department of Housing and Urban Development 451 7th Street SW, Room 8218 Washington, DC 20410 Email: david_a._vandenbroucke@hud.gov Phone: 202-402-5890 Fax: 202-708-3316