How does SCHA calculate income for applicants, relative to income tested deed-restricted units?

The formula for calculating is standard, but details vary depending on the income panorama of a given applicant household. It is the responsibility of the applicant(s) to accurately, and satisfactorily, provide income information documentation. All documentation is submitted via the SCHA Online Buyer Application when applying for a property that is actively for sale.


Income sources considered:

  • Wages
  • Self-Employment income
  • Interest Income
  • Dividends
  • IRA, pension & annuity distributions
  • Social Security benefits
  • Unemployment benefits
  • Alimony/Child support
  • Capital Gains
  • Other Gains
  • Rental Real estate income
  • Royalty/Partnership/S Corp/Trust income
  • Farm income
  • Other


Income documentation that provides needed information for the calculation (for all applicants and all jobs):

FOR W2 Employment:

  • 2 most recent paystubs to obtain YTD income
  • Most recent W2s
  • Verification of Employment form completed by HR/Manager/Owner
  • Most recent Federal tax returns (tax transcripts are not acceptable)
  • Additional documentation as requested to clarify income or termination of income

For Self-Employment:

  • YTD Profit/Loss statement for the current year (additional years is taxes are not up to date)
  • 2 Years of Federal tax returns (not tax transcripts) leading up to time of application (including the following, when applicable):
    • All 1099s
    • Schedules C
    • Forms 1120S or 1065
    • Schedules K-1
  • Additional documentation as requested to clarify income or termination of income


The income calculation draws upon the largest sample size possible for all employment/income that is currently active (including seasonal income that is ‘out of season’ at the time of application).  This can be up to 2 years of wage income and 3 years of self-employment income; depending on the timing of a buyer eligibility application relative to an applicant’s income information.

The calculated household income of applicant(s) is then compared to the buyer eligibility requirements detailed in the restrictive covenant for the property which the applicant(s) is/are applying for. The restrictive covenant will specify the AMI threshold for eligible buyers.