What household expenses must be deducted before setting rent?

Before a housing authority sets your rent, it is required to subtract from your household’s gross or annual income certain deductions .

In general, state public housing has more deductions than federal public housing. However, state public housing authorities have no ability to add to the deductions listed below, while federal public housing programs are allowed to adopt additional deductions^xxi. For example, the housing authority in Boston allows a deduction of extraordinary medical expenses for all families in public housing—not just for elderly or disabled families living in federal public housing.

Federal public housing

If you live in federal public housing, you are entitled to the following deductions before your rent is set^xxii:

Elderly and Disabled Family Deduction

$400 per year for a family where the head of the household or spouse is 62 years of age or older or is a person with a disability.

Dependent Deduction

$480 per year for each dependent. This includes anyone who is:

• Under the age of 18,
• A full-time student, or
• A person with a disability.

Medical or Disability Deduction

The amount over 3% of your annual income which you anticipate spending on unreimbursed medical expenses only for a family member who is 62 or over or who has a disability. Includes unreimbursed out-of-pocket costs for prescription drugs^xxiii.

The amount over 3% of your annual income which you anticipate spending on unreimbursed expenses for disability assistance for any family member with a disability which are necessary for that person’s employment. This includes attendant care and auxiliary apparatus^xxiv.

Child Care Deduction

Child care payments for children under age 13, if a family member is employed, looking for employment, or in school^xxv.

State public housing

If you live in state public housing, you are entitled to the following deductions before your rent is set^xxvi:

Elderly and Disabled Family Deduction

$400 per year for a household living in family public housing where the person who signed the lease is either 60 years or older or has a disability (unless the household is overhoused ).

Family Deductions

• $300 per year for each child under 18.
• $300 per year for each adult (other than head of household), if household’s gross income exceeds all other deductions.

Heat Deduction

A yearly heat deduction where tenant pays heat. The amount of the deduction is determined by the Department of Housing and Community Development ( DHCD )^xxvii.

Medical Deduction

Actual payments for necessary medical expenses not covered by insurance for any family member (including co-payments and insurance premiums) in excess of 3% of gross household income.

Child and Family Care Deduction

Payments for care of children or sick or incapacitated household members if necessary for employment of another household member.

Support If Separated or Divorced

Child support or separate support, or alimony paid as a result of a court order to someone not living in the household.

Education Deduction

Non-reimbursable payments for tuition and fees for post-secondary education for household member who is not a full-time student.

Deductions for People with Disabilities

• Non-reimbursable payments for reasonable and necessary housekeeping and personal care.
• Certain travel expenses in connection with necessary activities which cannot be performed by another household member^xxviii.

^xxi 42 U.S.C. § 1437a(b)(5)(B)(iii); 24 C.F.R. § 5.611(b).

^xxii 42 U.S.C. § 1437a(b)(5); 24 C.F.R. § 5.611.

^xxiii HUD PIH Notice 05-37.

^xxiv Attendant care includes: In-home care, nursing, housekeeping, errand service, interpreters for people who are hearing impaired, or a reader for a person with a visual disability. Auxiliary apparatus includes: wheelchairs, walkers, scooters, reading devices for people with visual disabilities, equipment to add to cars and vans to permit their use by family members with a disability, or service animals. See Public Housing Occupancy Guidebook, page 124.

^xxv In the case of child care necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income . 24 C.F.R. § 5.603(b). See also 42 U.S.C. § 1437a(b)(5)(A)(iii).

^xxvi 760 C.M.R. § 6.05(4).

^xxvii In March 1, 1993, Carole Collins, Director of Housing Management at DHCD, issued a Schedule of Heat Deductions which is still in effect. The following is the schedule of annual deductions for those who separately pay for heat:

schedule of heat deductions

Bedroom Size	0	1	2	3	4	5	6
Amount	$300	$400	$500	$600	$700	$800	$900

^xxviii 760 C.M.R. § 6.05(4)(j).