ESG Income Limits and when to apply them

Date Published: April 2017
Please note that the CPD Income Calculator has not been updated for the 2017 income limits. A listserv message will be sent out once the 2017 income limits have been updated in the calculator. Please make sure you receive HUD Exchange Mailing List messages for the ESG program.
HUD released the FY 2017 Income Limits, effective April 14, 2017, which can be found at HUDUSER FY 2017 Income Limits. Click on the data tab and scroll down to the 5th section labeled “HUD 30% Income Limit for ALL Areas.”
When working with ESG program income limits, please be aware of the following key points:
·        Extremely Low Income vs. Area Median Income Limits. The “Extremely Low Income (ELI) families" limits do NOT apply to the ESG or Continuum of Care (CoC) programs. ESG does not use the ELI measure to establish income limits but instead uses the 30% of Area Median Income (AMI) income limits. Please use the 30 percent AMI tables. If ESG recipients/subrecipients were to use the ELI standard, some applicants for ESG assistance might be falsely determined to be eligible for homelessness prevention assistance, when actually their incomes were over 30 percent AMI.

Under the ESG program, income eligibility is based on the HUD income limits in effect at the time of income verification. Income eligibility is not based on HUD income limits that correspond with the grant year under which the ESG funds were awarded.

·        Rapid Re-Housing Income Requirements. Please keep in mind for program participants receiving ESG “Rapid Re-Housing" assistance, an income assessment is not required at initial evaluation. At re-evaluation - which must take place not less than once annually for rapid re-housing - the participant's household must have an annual income that does not exceed 30 percent of median family income for the area, as determined by HUD.

·        Homelessness Prevention Income Requirements. The ESG Program interim rule limits eligibility for homelessness prevention assistance to individuals and families with incomes below 30 percent of AMI at intake and incomes that do not exceed 30 percent of AMI at re-evaluation, which must take place not less than once every 3 months.