I don't think that your Grandfather's income would qualify. It does depend on the number of dependents he has. But on the latest 2013 instructions it appears to start at $19,387.00. You can check USCIS at http://www.uscis.gov/files/form/i-864p.pdf. My advise is to consult with an experienced immigration attorney in your area to properly advise you further.
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Yes, if the combined income meets the threshold.
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Yes, if you share household.
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