Determine the tenant’s eligibility for a rental assistance payment by including the total gross household income received for a 12-month period from all sources (earned and unearned) including, but not limited to wages, salary, child support, alimony, unemployment benefits, workers’ compensation, social security or the net income from a business. It shall not include income received or earned by dependent children

under 18, or full-time students who are students for at least 5 months of the year and are under the age of 24.

Documentation of income may be provided by IRS income tax returns, W-2 forms, paycheck stubs, accountant certified profit and loss statements or other documentation TxDOT deems appropriate.

When there are two or more persons living together without an identifiable head of household, each of the displaced persons will attest to his/her own annual gross income or current monthly income. Base the rent supplement on the combined financial means of all occupants of the displaced household.

If a displacee cannot or will not provide reasonable verifiable documentation of his/her income or financial means, the cost of comparable housing shall be considered within the displacee’s financial means, and base monthly rent shall be considered as the average cost of rent and utilities and the displacement dwelling, or “fair market rent” if applicable. For example, when a person’s mode, manner of living or assets indicate a higher than reported income from cash payments, or the displacee’s monthly rent and utility payments are exceptionally high in relation to his/her reported income, the cost of comparable replacement housing will be considered within the displacee’s financial means.

If the displacee will receive a housing subsidy after displacement, compute the rental assistance payment based on the person’s actual out-of-pocket costs for replacement housing. If a displacee is dependent upon family or outside sources for the majority of his/her living expenses, base monthly rent will be considered as the average cost of rent and utilities at the displacement dwelling.

Use fair market rent, as established by TxDOT, instead of average monthly cost for rent and utilities at the displacement dwelling if:

Formulate fair market rent from the average monthly rental and utility cost of comparable dwellings (preferably three) located in the subject area. Document fair market rent determinations in the project file. These dwellings should be comparable to the subject property in terms of the standard for DSS dwellings. Include reasons for using fair market rent on form .

Utility services are defined as gas, electricity, water, sewer, and garbage collection charges. Include utilities in the base monthly rent computation because utilities are considered an integral part of monthly housing costs. The objective in adjusting for utilities is to achieve consistency between rental properties and ultimately to reduce any additional out-of-pocket monthly expenses for tenants of all types of dwellings, including mobile homes. The existence of adequate utilities is a primary requirement for a DSS dwelling.

Use of the HUD Utility Schedule Model for the project area is preferred by TxDOT. Add utility costs to the subject (including mobile homes), comparable and replacement rents unless they are already included in the rent.

If comparable utility services are included in both the monthly rent of the displacement dwelling and the monthly rent of the selected replacement dwelling, record this information on form and compute the rent supplement on a rent vs. rent basis.

If a utility service is

not

included in the monthly rent of a

displacement

dwelling, record the type and monthly cost of the utility service in the remarks section of form

ROW-R-107 Supplemental Payment Estimate, Replacement Housing

. If a utility service is not included in the monthly rent of a comparable

replacement

dwelling, record the type and monthly cost of the utility service in the remarks section of form . Record background information pertaining to the determination of a utility service cost in the parcel file.

Subsidized housing includes public housing, government subsidized housing, and housing program subsidies.

When a public housing unit or a privately owned dwelling with a government subsidy tied to the unit will be used as comparable replacement housing, compute the rental assistance payment according to preceding Calculation for normal rental payments.

When a person displaced from a privately owned government subsidized dwelling or from a public housing unit receives a housing program subsidy not tied to the displacement dwelling, such as a HUD Section 8 Existing Housing Certificate or a Housing Voucher, and the displacee is to be relocated in a comparable unsubsidized dwelling, subtract the amount of the housing subsidy from the probable rental cost of the replacement dwelling before computing the rental assistance payment. In such cases, explain the rent adjustment in the remarks section of form .

Nothing in this section prohibits a Federal, State or local agency from offering, or precludes a person from accepting, assistance under a government housing program, even if the person did not receive similar assistance before displacement. TxDOT must, however, inform the person of his/her options under this section, and inform the person that receiving a government housing subsidy requires computing the relocation rental assistance payment based on the person’s actual out-of-pocket costs for the replacement housing.

Obtain form , attesting to no duplication of payments, from each tenant displacee before computing the displacee’s rental assistance payment. If a displacee does not provide TxDOT a sworn affidavit regarding his/her receipt, or non-receipt, of a government housing allowance, he/she cannot be granted a relocation rental assistance payment because TxDOT will not possess information needed for payment calculation. If it is discovered that a displacee is in receipt of a government housing allowance not reported on his/her affidavit, the person’s rental assistance payment will be withdrawn for recalculation of the proposed payment.

If a computed rent supplement exceeds

$9,570

, handle it according to .

Payment under this section is made in a lump sum amount. A displacee who receives a relocation payment for the rent of a DSS replacement dwelling that costs less to rent than the comparable dwelling on which his/her approved rent supplement was based is entitled to a payment for the unused balance of the approved rent supplement if he/she applies for the payment and meets criteria for this payment.