This notice provides guidance to public housing authorities (PHAs), project owners and other interested parties regarding the determination of annual and adjusted income in HUD’s assisted housing programs under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, Public Law 108-173. The notice provides that “in calculating annual income for a family, any assistance or benefit received from the Medicare discount card or the transitional assistance [subsidy] must be excluded … for the purpose of calculating any rent or assistance … [and] must be treated as a standard medical deduction when determining the family’s medical expense deducation.” The notice also provides guidance for PHAs and owners on how to verify a tenant’s status as a beneficiary of the Medicare discount card program. [Download]