Admission and Occupancy FAQ

Frequently Asked Questions

Below are questions and answers on the final rule "Changes to the Admission and Occupancy Requirements in the Public Housing and Section 8 Housing Assistance Programs," published on March 29, 2000.

A. Annual Income
B. Adjusted Income
C. Mandatory Earned Income Disregard from Annual Income
D. Definition of Disabled
E. Welfare Sanctions
F. Training Income

A. Annual Income (24 CFR 5.609)

Q1: Clarification is needed regarding the applicability of the provision relating to 24 CFR 5.609(d). The language as written only references public housing when referring to annualization of income. Does this provision apply to Section 8?

A1: 24 CFR 5.609(d) applies to all Section 8 programs as well as public housing, however, during the recent revision of the regulation the reference to owners was inadvertently omitted. A correction to this paragraph to clarify that this provision continues to apply to owners will be made in a future technical revision. Private owners may continue to utilize the flexibility contained in the provision.

Q2: A 17 year-old receiving home schooling is employed full time. How is the employment income treated for this 17 year-old home schooled student?

A2: The income of the 17 year-old must be excluded per 5.609(c)(1) which states: "annual income does not include income from employment of children under the age of 18 years."

B. Adjusted Income (24 CFR 5.611)

Q1: Are the mandatory and permissive deductions applicable to the Housing Choice Voucher program?

A1: The mandatory deductions apply to both the Public Housing and Housing Choice Voucher programs, as well as other Section 8 programs. Permissive deductions (5.611(b)), apply only to the Public Housing program.

C. Mandatory Earned Income Disregard from Annual Income (24 CFR 5.609)

D. Definition of Disabled (CFR 5.403)

Q1: What is the definition of a disabled family for purpose of eligibility, allowances, and deductions?

A1: A disabled family means a family whose head, spouse, or sole member is a person with disabilities. It may include two or more persons with disabilities living together, or one or more persons with disabilities living with one or more live-in aides.

As defined in section 5.403, a person with disabilities, means a person who:

i) has a disability as defined in Section 223 of the Social Security Act (42 U.S.C.423), or
ii) is determined by HUD regulations to have a physical, mental or emotional impairment that:

a) is expected to be of long, continued, and indefinite duration;
b) substantially impedes his or her ability to live independently; and
c) is of such a nature that such ability could be improved by more suitable housing conditions, or

iii) has a developmental disability as defined in Section 102 of the Developmental Disabilities Assistance and Bill of Rights Act(42 U.S.C. 6001(5)).

The definition of a person with disabilities does not exclude persons who have the disease acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome (HIV). However, for the purpose of qualifying for low income housing, the definition does not include a person whose disability is based solely on any drug or alcohol dependence.

(Note: The definition of a person with disabilities as defined in 24 CFR 8.3 must be used for purposes of reasonable accommodations and program accessibility for persons with disabilities.)

E. Welfare Sanctioning (24 CFR Part 5.615)

Q1. If an applicant family is under a welfare sanction when they enter the program, is the amount of the sanction included in annual income? If so, when does a PHA stop counting this as income?

A1. The PHA may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. So if an applicant is under a sanction, the amount of the sanction would not be included in determining the family’s annual income.

Q2: If a tenant was sanctioned, and later a family member who was previously unemployed for three months gets a job, would the new earned income be used to offset the sanctioned amount?

A2: Yes, the additional earned income can be used to offset the sanctioned amount. As cited in 24 CFR, Part 5.615(c)(4), the amount of the imputed welfare income is offset by the amount of additional income a family received that commences after the time the sanction was imposed.

Q3: What action can a PHA take regarding a tenant’s rent obligation prior to receiving information from the welfare agency regarding a reduction or termination of welfare benefits.

A3: If the welfare agency does not verify the reason for the reduction or termination within a reasonable time, the PHA must reduce the rent obligation based on the family’s income. The PHA must determine (in advance) and wait a reasonable time for written verification from the welfare agency of the reason for the reduction or termination of benefits. If the welfare agency verifies that welfare benefits were reduced or terminated due to a family member’s noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program or fraud in connection with the welfare program, the PHA must not reduce a tenant’s rent.

Q4: Must a PHA reduce a family’s rent if the family member has complied with the welfare agency’s economic self sufficiency requirement and is still unable to obtain employment?

A4. Yes, when a family member is not able to find a job in spite of full compliance with all welfare department requirements, then the PHA must reduce the family’s rent.

Q5. Must a PHA reduce the rent if they receive written verification from the welfare agency that a family member has been sanctioned for noncompliance with some other welfare requirement, for example, missing three appointments?

A5: Yes . There are only two situations when a PHA must not reduce the family’s rent: (1) when a family’s welfare benefits are reduced because the welfare agency verifies in writing that a family member has committed welfare fraud; or (2) when the family’s welfare benefits are reduced because the welfare agency verifies in writing that the sanction is for noncompliance with a requirement to participate in an economic self sufficiency program.

Q6: Under what circumstances is a PHA required to reduce the rent when a welfare benefit has been reduced?

A6: A PHA must reduce the rent (1) when a welfare benefit is reduced because a family has reached the maximum time limit for receiving welfare benefits; (2) when the family is not able to find a job despite full compliance with all welfare department requirements; (3) when the family is being sanctioned for failure to comply with welfare department requirements (other than sanctioning for failure to participate in an economic self-sufficiency or for fraud); (4) when a family’s benefit is reduced because of an earlier inadvertent overpayment.

Q7: What if a resident has a dispute about the information provided by the welfare agency?

A7: If a resident has a dispute about the facts, the resident must pursue an appeal through the welfare agency’s procedures. If a resident pursues an appeal through the welfare agency, the PHA may reasonably delay imputing welfare income.

Q8: Has HUD issued any guidance on ways a PHA can establish a good working relationship with the local welfare agency?

A9: Yes, HUD issued PIH Notice 2000-11 on May 9, 2000,which gives guidance on establishing cooperation agreements between PHAs and Temporary Assistance to Needy Families (TANF) agencies to target assistance, benefits and services to public housing residents and Section 8 participants, and to verify welfare benefits, sanctions and other information on public housing residents and Section 8 participants.

F. Training Income (24 CFR 5.609)

Q1: Is a Section 8 participant eligible for other training income disregards other than the earned income disregard?

A1: A Section 8 participant is eligible for the "training income exclusion" found at 24 CFR 5.609(c)(8)(i), amounts received under programs funded by HUD and 5.609(c)(8)(v), incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs.

Q3: If a tenant is enrolled in a training program funded by HUD, is their training income treated differently than the income from other training programs?

A3: Yes. 24 CFR 5.609(c)(8)(i) excludes the full amount received under training programs funded by HUD. If a resident is participating in a HUD-funded training program, the entire amount, not just the incremental amount, is excluded.

(For additional guidance regarding the training exclusion found at 24 CFR 5.609(c)(8)(v), see PIH Notice 98-2 issued on 1/12/1998.)