6505 ADJUSTED INCOME

6505.1 [RESERVED]

6505.2 This § 6502 covers DCHA policies related to mandatory deductions.

6505.3 DCHA shall use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., childcare during school and non-school periods and cyclical medical expenses), DCHA shall estimate costs based on historic data and known future costs; and

6505.4 If a family has an accumulated debt for medical or disability assistance expenses, DCHA shall include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted are not allowed even if the amounts were not paid as expected in a preceding period. DCHA may require the family to provide documentation of payments made in the preceding year.

6505.5 The HUD-established allowance is deducted from annual income for each dependent. “Dependent” is defined as any family member other than the head, spouse, or co-head who is under the age of eighteen (18) or who is eighteen (18) or older and is a person with disabilities or a full-time student. DCHA will implement changes to the amount of the dependent deduction in accordance with required updates published by HUD annually. Foster children, foster adults, and live-in aides are never considered dependents.

6505.6 A single deduction per the HUD-established allowance is taken for any elderly or disabled family.

6505.7 An “elderly family” is a family whose head, spouse, co-head, or sole member is fifty-five (55) years of age or older, and a “disabled family” is a family whose head, spouse, co-head, or sole member is a person with disabilities. DCHA will implement changes to the amount of the elderly and disabled deductions in accordance with required updates published by HUD annually.

6505.8 Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed three percent (3%) of annual income.

6505.9 The health and medical care expense deduction is permitted only for families in which the head, spouse, or co-head is at least fifty-five (55) years old or is a person with disabilities. If a family is eligible for a medical expense deduction, the medical expenses of all family members are counted.

6505.10 HUD regulations define “health and medical care expenses” at 24 CFR § 5.603(b) to mean “any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed.”

6505.11 DCHA shall use the most current IRS Publication 502, “Medical and Dental Expenses,” as a reference to help determine the costs that qualify as health and medical care expenses. However, DCHA must review each expense to determine whether it is eligible in accordance with HUD’s definition of health and medical care expenses.

Summary of Allowable Medical Expenses
Services of medical professionals	Psychiatric treatment
Surgery and medical procedures that are necessary, legal, non-cosmetic	Ambulance services and some costs of transportation related to medical expenses
Services of medical facilities	The cost and care of necessary equipment related to a medical condition (e.g., eyeglasses/lenses, hearing aids, crutches, and artificial teeth)
Hospitalization, long-term care, and in-home nursing services	Cost and continuing care of necessary service animals
Prescription medicines and insulin, but not nonprescription medicines even if recommended by a doctor	Medical insurance premiums or the cost of a health maintenance organization (HMO)
Improvements to housing directly related to medical needs (e.g., ramps for a wheelchair, handrails)
Substance abuse treatment programs
Note: This chart provides a summary of eligible medical expenses only. Medical expenses are considered only to the extent they are not reimbursed by insurance or some other source.

6505.12 When expenses anticipated by a family could be defined as either medical or disability assistance expenses; DCHA shall consider them medical expenses unless the expenses are incurred exclusively to enable a person with disabilities to work.

6505.13 Reasonable expenses for attendant care and auxiliary apparatus for a disabled family member (disability assistance expense) may be deducted if they:

(a) Are necessary to enable a family member eighteen (18) years or older to work;

(b) Are not paid to a family member or reimbursed by an outside source;

(c) In combination with any medical expenses, exceed three percent (3%) of annual income; and

(d) Do not exceed the earned income received by the family member who is enabled to work.

6505.14 A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work.

6505.15 The family must identify the family members enabled to work because of the disability assistance expenses. In evaluating the family's request, DCHA considers factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work.

6505.16 When DCHA determines that the disability assistance expenses enable more than one family member to work, the disability assistance expenses will be capped by the sum of the family members' incomes.

6505.17 "Auxiliary apparatus" includes: wheelchairs, walkers, scooters, reading devices for persons with visual disabilities, equipment added to cars and vans to permit their use by the family member with a disability, or service animals but only if these items are directly related to permitting the disabled person or other family member to work.

6505.18 Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself) is an eligible expense. The cost-of-service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be included.

6505.19 Attendant Care Expenses are eligible and include the following:

(a) Attendant care includes, but is not limited to, reasonable costs for home medical care, nursing services, in-home or center-based care services,

interpreters for persons with hearing impairments, and readers for persons with visual disabilities;

(b) Attendant care expenses are included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible; and

(c) If the care attendant also provides other services to the family, DCHA prorates the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation is based upon the number of hours spent in each activity or the number of persons under care.

6505.20 No disability expenses may be deducted for payments to a member of a tenant family. However, expenses paid to a relative who is not a member of the tenant family may be deducted if they are not reimbursed by an outside source.

6505.21 The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work.

6505.22 The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source.

6505.23 DCHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality.

6505.24 “Childcare expenses” are defined as amounts anticipated to be paid by the family for the care of children under thirteen (13) years of age where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of childcare necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income.

6505.25 Childcare expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family’s household. However, childcare expenses for foster children that are living in the assisted family’s household are included when determining the family’s childcare expenses.

6505.26 The family must identify the family member(s) enabled to work, seek work or further their education.6505.27 In evaluating the family's request, DCHA shall consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity.6505.28 If the childcare expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member's efforts to obtain employment at each reexamination.6505.29 If the childcare expense being claimed is to enable a family member to further their education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the childcare claimed.6505.30 If the childcare expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member's employment during the time that childcare is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated.6505.31 When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for childcare – although the care must still be necessary and reasonable.6505.32 The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied.6505.33 DCHA must not limit the deduction to the least expensive type of childcare. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working.6505.34 The type of care to be provided is determined by the tenant family. The DCHA may not refuse to give a family the childcare expense deduction because there is an adult family member in the household that may be available to provide childcare.6505.35 For school-age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for

supervised activities after school or during school holidays (e.g., summer day camp, after-school sports league) are allowable forms of childcare.

6505.36 The costs of general housekeeping and personal services are not eligible. Likewise, childcare expenses paid to a family member who lives in the family's unit are not eligible; however, payments for childcare to relatives who do not live in the unit are eligible; and

6505.37 If a childcare provider also renders other services to a family or childcare is used to enable a family member to conduct activities that are not eligible for consideration, DCHA shall prorate the costs and allow only that portion of the expenses that is attributable to childcare for eligible activities. Unless otherwise specified by the childcare provider, the calculation is based upon the number of hours spent in each activity and/or the number of persons under care.

SOURCE: Notice of Final Rulemaking published at 33 DCR 7973, 8029 (December 26, 1986); as amended by Final Rulemaking published at 73 DCR 007351 (May 15, 2026).