1 / 152


HOUSING CHOICE VOUCHER & Public HOUSING Rent calculations. Welcome. Your Trainer Agenda/Breaks Examinations & Scores Survey and Evaluation Quadel Cell Phones Restrooms/Emergency Exits. CHAPTER 1. Verifying Income and Allowances. Introduction to Subsidy Calculations.

Download Presentation


An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.


Presentation Transcript

  1. HOUSING CHOICE VOUCHER & • Public HOUSING Rent calculations

  2. Welcome Your Trainer Agenda/Breaks Examinations & Scores Survey and Evaluation Quadel Cell Phones Restrooms/Emergency Exits

  3. CHAPTER 1 Verifying Income and Allowances

  4. Introduction to Subsidy Calculations • The rules for calculating family income and the allowable deductions are the same for the Housing Choice Voucher program and Public Housing. 1-1

  5. Introduction to Subsidy Calculations To correctly calculate subsidy, you must properly identifying and verify each of the following: • Annual Income • Expenses and allowances • Adjusted Income • Total Tenant Payment (TTP) • Unit Size • PHA Payment and Subsidy Standards 1-1

  6. Income Calculation Concepts 1-1, 1-2

  7. Income Verification Basics Applicable Regulations: • Notice 2010-19 on May 17, 2010 • Notice PIH 2013-23 extended 2010-19 • PIH Notice 2013-03 (2013-26) • PIH 2013-4 • PIH Notice 2016-05 (HA) • PIH Notice 2018-18 (HA) 1-2

  8. Income Verification Basics Final Rule (3/8/16): • At admission, all assets are 3rd party verified • Assets under $5k may be self-certified after that; EXCEPT, • Every 3 years assets must be 3rd party verified • Self-certification of assets under $5k must include income from assets amount expected in the next 12 months • May continue to 3rd party verify annually if choose to 1-3

  9. Income Verification Basics Final Rule (3/8/16) cont.: Streamline Income Determination • Allows for a streamlined reexamination of fixed income • At admission, 3rd party verification of all income sources for all household members must be completed • Full reexamination with 3rd party verification of income every 3 years after that • COLA or annual interest percentage increases must still be applies annually (i.e. Social Security Benefits) • COLA or annual interest percentage amounts must be obtained from public source or tenant provided 3rd party documents (i.e. SS benefit letter) • Applies to any household member with a fixed income source, even if non-fixed income is present 1-3

  10. Income Verification Basics 1-4

  11. Income Verification Basics 1-4

  12. Income Verification Basics 1-4

  13. Income Verification Basics 1-4

  14. Income Verification Basics 1-4

  15. Income Verification Basics 1-4

  16. Final Rule PHA Responsibility for Verification: • Obtain and document in household’s file 3rd party verification of: • Family income • Value of assets (with optional exception discussed) • Expenses and deductions • Other factors affecting adjusted income or income-based rent 1-4

  17. Annual Income Annual Income is the gross amount of income anticipated to be received by the family during the 12 months following the effective date of examination or reexamination. 1-5

  18. Annual Income Annual Income is broken down into three general categories: • Earned Income • Unearned Income • Asset Income 1-5

  19. Annual Income Income always excluded: • Income of live-in aides; • Earned income of minors; • Payments for the care of a foster child or adult (Foster Care Payments); or • Kinship, Kin-Gap or the Guardianship Care Payments. 1-5

  20. Annual Income Income calculations are affected by: • The type of income (earned, unearned, and asset and whether HUD has specified the income “included” or “excluded”) • The status of the family member who has the income • How income is paid (e.g., salaried, hourly, through a third party, regular payments, lump sum) 1-6

  21. Income Based on Family Member Characteristics • Income of Temporarily Absent Family Members • Students 18+ who don’t live at home • Deployment of Military Personnel to Active Duty • Income of Persons with Disabilities 1-6/1-7

  22. Unearned Income • Adults • Minors • $480 Adoption Assistance • Verifying Excluded Unearned Income 1-7

  23. Earned Income • Adults • Student Exception • Minors • Verified Earned Income • Verifying Partially Excluded Earned Income • Earned Income Disallowance 1-8 to 1-11

  24. EID – Who Qualifies? A family whose Annual Income increases: • Due to employment of a member with a disability, who was previously unemployed • When a family member with a disability participated in an economic self-sufficiency program or job training program • Due to increased earnings by a person who has a disability who received during the past 6 months, TANF payments, benefits, and services worth at least $500.

  25. How EID Works • A participant is eligible to receive EID for a maximum of 24 months. • Incremental earned income is disregarded • 12 months at pre-employment level • 12 more months at phase-in level • The two 12-month periods run consecutively, regardless of breaks in employment. • EID benefit may be used within a period of 24 months, the “window of opportunity”.

  26. How EID Works • Eligibility for EID begins whenever the tenant begins employment. • Eligibility for EID ends: • After both periods of eligibility (24 months) are completely used; or • At the end of 48 months, even if the full period of eligibility was not used. • One lifetime use of EID.

  27. EID Calculation Example • Sally earned $1,500 in income at last Annual Reexamination • Is Sally unemployed? No • Does Sally’s income meet HUD’s definition of unemployed? Yes • Is Sally qualified for EID if her earned income increases? Yes 1-12

  28. EID Calculation Example • Sally earned $5,000 in income for current Reexamination • Difference between Sally’s old income and new income ($5,000 - $1,500 = $3,500) • For the first 12 months of this new income, the full $3,500 would NOT be counted. • For the second 12 months of this new income, $1,750 of the new income would NOT be counted. ($3,500 x .50 = $1,750) 1-12

  29. Sample EID Tracking Log

  30. Calculating Earned Income – Billy Householder • See sample paystub in course book • Questions: • How often does Billy get paid? • How did you determine this? • Calculate his Annual Income. 1-13

  31. Calculating Earned Income Rate of Pay Method 1-14

  32. Calculating Earned Income Rate of Pay Method If an individual does not work full time, use the actual periods to annualize income. Example: $8.50/hour x 24 hours/week x 52 weeks/year = $10,608 1-14

  33. Calculating Earned Income Average of Pay Stubs Method Paystub # 1 (Gross Income) $450 + Paystub # 2 (Gross Income) $512 = $962 Average weekly Annual Income: gross pay: $481 x 52 = $25,012 $962 / 2 = $481 1-2

  34. Calculating Earned Income Year to Date Method Jane is paid every two weeks. Her pay stub for the pay period ending 4/21/XX shows $2,600 YTD. How may pay periods does this represent? 8 $2,600 ÷ 8 pay period = $325/pay period $325 x 26 pay periods = $8,450 Annual Income 1-15

  35. Social Security Benefits • Social Security benefits are counted as income • Include in annual income the gross amount • SS/SSI benefit information is available in EIV • Information from SSA is reported and updated in EIV every 3 months • Because EIV information may not be current, many PHAs also require third-party documentation to be provided by the family 1-2

  36. Social Security Benefits • The SSA rounds all benefit amounts down to the next lower dollar and therefore the amount on the benefit letter may differ from the amount reported in EIV. • PHAs are required to use the EIV-reported SS and SSI benefit amount unless the tenant disputes the EIV-reported amount. 1-17

  37. Social Security Benefits 1-17

  38. Social Security Benefits EXAMPLE • Each October, SSA announces the cost of living adjustment (COLA) for the upcoming year. • PHAs are required to factor in the COLA for SS/SSI annual income for all annual and interim recertifications which have not been completed and will be effective January 1st or later of the upcoming year. 1-18

  39. Social Security Benefits EXAMPLE Bob Jones currently receives $500 per month. The COLA established for the upcoming year is 3.6%. Bobs annual recertification is effective on 2/1. You are in the process of completing his recertification in November. You must determine his SS income as follows: $500 x 3.6% (or 0.036) = $18.00 $500 + $18 = $518 (new gross SS benefit effective 1/1) $518 x 12 = $6,216 (Annual Income to be counted) 1-18

  40. Unemployment • Unemployment benefits are counted as income. • Lump sum payments resulting from delays in processing are counted towards annual income. • EIV alone is not acceptable for verifying unemployment benefits. 1-18

  41. Welfare Assistance • Welfare assistance including TANF (Temporary Assistance for Needy Families) is counted as income, when paid to or on behalf of any family member. • (UIV) may be available in and may be used without further verification. • Benefit award letters or print outs of payments created by a third party are acceptable verification. 1-19

  42. Welfare Assistance Reductions in Assistance for Non-Compliance When welfare payments are reduced as a result of fraud, failure to participate in an economic self-sufficiency program, or failure to comply with a work requirement; a special analysis of the amount of income that must be counted is required. 1-19/1-20

  43. Welfare Assistance Adjustments for Prior Overpayment of Benefits If the welfare, Social Security or unemployment office has adjusted a family’s benefits to a lower amount because the family previously received an overpayment; count the amount the family is receiving after the adjustment as annual income. 1-21

  44. Other Assistance • State and Local Employment Training Programs • Regular Contributions and Gifts • Alimony or Child Support • Income from a Business (Includes Self Employed) • Withdrawal of Cash or Assets from an Investment • Student Financial Assistance • Lump Sum Payments 1-22 to 1-28

  45. Zero Income Households Questions for families claiming zero income: • How does the family pay for certain items (i.e. food, transportation, cell phone, internet)? • Does anyone contribute these on a regular basis? If so, who? • Frequency of payment? • What amount do you pay? 1-29

  46. Annual Income Exercise The Householder Family See Course Book The David Family See Course Book 1-2

  47. Calculating Annual Asset Income When calculating income from assets, you must determine: • Is it an asset? • What is the Market Value? • What is the Cash Value? 1-37/1-38

  48. Calculating Annual Asset Income Market Value • Cost to Convert = Cash Value • No limitation on assets but must be included even if no income comes from asset 1-38

  49. Assets 1-39 • Assets include: • Amounts in savings and checking accounts • Stocks, bonds, money market funds • Equity in property or other capital investments • Cash value of trust accounts (if household has access) • IRA, Keogh, retirement savings accounts, pensions • Lump sum receipts such as inheritances, lottery winnings, etc. • Personal property held as an investment such as gems, stamps, coins, etc. • Cash value of life insurance policies • Assets disposed of for less than fair market value (FMV)

  50. Assets 1-39 • Assets do not include: • Personal property not held as an investment (i.e. items for everyday use – furniture, vehicle, clothing) • Interest in Indian trust land • Assets part of an active business • Exception – rental property • Assets not accessible to the family and do not provide income • Vehicles equipped for individuals with disabilities • Equity in owner-occupied co-op and manufactured homes

More Related