S+C Rent Calculation
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Transcript of S+C Rent Calculation
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Rent Calculation
• The tenant rent portion must be calculated to be 30% of a household’s monthly adjusted income
• Must have copies of the initial and all subsequent rent calculations---MUST BE DATED
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Rent Calculation
• Must have proper income verification (pay stub, MFIP benefit, etc) for each calculation of rent
• When monitoring, HUD finds it helpful if each income verification is attached to the corresponding rent calculation
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Rent Calculation
• Rent needs to be calculated:
– At the time a participant enters the program
– At least once a year after the initial calculation
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Rent Calculation
• If there is a change in family composition---birth of a child, etc., or if the household’s income decreases, the participant may request a new calculation
• If a participant’s income increases, his/her rent does not need to be recalculated until the next scheduled (annual) recalculation
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Rent Calculation
• Grantees may institute mandatory savings programs, but ensure you are aware of how the savings will affect a participant’s eligibility for mainstream resources
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Rent Calculation
• We recommend that grantees: – develop clear WRITTEN rent calculation policies– communicate the policy to participants– and apply the policy uniformly to all residents
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Rent Calculation• Questions to think about when developing a
policy:– If your program is in a partnership, which entity is
responsible for verifying income/calculating rent? Is this clear in the MOU?
– Does the program have other funding sources? Which ones? What are the income verification/rent calculation requirements of those funding sources?
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Rent Calculation• Questions to think about when developing a
policy:– Are you going to require income verification more
than once a year? How often? Under what circumstances?
– Will you require that participants inform you if they have an income increase? Income decrease? What will be the increase/decrease threshold for reporting?
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Rent Calculation
• Questions to think about when developing a policy
– If a participant has an unexpected, non-recurring loss in income that prevents him/her from being able to pay rent that month, will you do a one-month only rent re-calculation?
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Rent Calculation
• Questions to think about when developing a policy
– Who will be responsible for income/rent calculations?
• What training will s/he receive?
• With which resources will s/he be provided?
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Rent Calculation
• Questions to think about when developing a policy
– What supportive interventions will you have in place to help the participant pay his/her rent?
– What will you do if a participant does not pay rent on time?
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Rent Calculation
• Questions to think about when developing a policy
– In most cases, failure to pay rent does not qualify a participant for termination
– The S+C regulations state that a participant may only be terminated in “the most severe cases”
– How does your organization define “most severe”
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S+C Rent Calculation Worksheet
• Questions 1-8 refer to the income a household expects to receive in the next 12 months
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S+C Rent Calculation Worksheet
• Sources of funds that DO NOT COUNT as income
– Student assistance—loans, grants, etc.
– Compensation received from HUD, local and/or state training programs
– The monetary value of food stamps
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S+C Rent Calculation Worksheet
A complete list of what is included/excluded from income can be found in 24 CFR Section 5.09
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S+C Rent Calculation Worksheet
• Four mandatory deductions:1. $480 for each dependent
2.$400 for any disabled family
3.To the extent that the sum of unreimbursed medical expenses of a disabled or elderly family member AND unreimbursed attendant care and auxiliary apparatus expenses exceeds 3% of income
4.Unreimbursed child care expenses
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S+C Rent Calculation Worksheet
• Dependent deduction (line #13)– For each dependent living with the participant,
deduct $480 from annual income– Dependents include household members under
the age of 18, elderly dependents, full-time students, the handicapped or disabled
– Dependents do not include the family head, spouse, or foster children
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S+C Rent Calculation Worksheet
• Disabled/Elderly family deduction (line #14)– S+C requires that an adult household
member qualify as disabled, so this deduction automatically applies to each S+C household
– Deduct $400 from the annual income of each S+C household
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S+C Rent Calculation Worksheet
• Disabled/Elderly family deduction (line #14)– One deduction per qualified family per
year (even if three qualifying members of the household are disabled, the household can only deduct $400 per year)
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S+C Rent Calculation Worksheet
• Child care deduction (line #15)– Deduct the amount of reasonable, non-
reimbursed child care expenses expected in the next 12 months for kids 12 and under
– The child care must enable a household member to work or go to school
– The amount deducted cannot exceed the amount of income received from the work
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S+C Rent Calculation Worksheet
• Attendant Care and Auxiliary Apparatus Deduction AKA Handicapped Assistance Allowance (line #16a)– The reasonable, anticipated, unreimbursed
expenses for attendant care or auxiliary apparatus (wheelchair etc.) that enables that individual or other household member to work
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S+C Rent Calculation Worksheet
• Attendant Care and Auxiliary Apparatus Deduction AKA Handicapped Assistance Allowance (line #16a)– Amount deducted cannot exceed the amount
earned by adult household members as a result of the handicapped assistance
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S+C Rent Calculation Worksheet
• Medical Expenses of Elderly or Disabled Residents Deduction (line #16b)
– Determine amount of out-of-pocket, non-reimbursed medical expenses expected for elderly or disabled residents for the coming year
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S+C Rent Calculation Worksheet
• The amount of unreimbursed attendant care and auxiliary apparatus expenses AND unreimbursed medical expenses are added together (line#16c)
• The combined amount that exceeds 3% of annual income is deducted from annual income (line #16d)
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Utility Allowances Lines #22 and #23
• If a participant pays for his/her own utilities, an allowance for utilities must be subtracted from the total rent
• PHAs (public housing authorities) have copies of HUD-approved utility allowance charts
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Utility Allowances Lines #22 and #23
• If a participant’s rent is calculated to be $40 per month, and PHA utility allowance is $60, then grantee must reimburse the participant $20 each month
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Rent Calculation
• Common Mistakes
– Not giving disability deduction– Not asking about out of pocket medical or
daycare expenses– Not having any documentation to show how
income/rent was calculated