Commonly Asked Tenant Based Rental Assistance Questions Recouping HAP Funds When is it appropriate to contact the Landlord to recoup HAP funds? a.) When the landlord has evicted the family, b.) When the unit has been abated, and c.) When a HAP payment is paid the month after the tenant has moved out. Income Calculations If someone is paid on the 1st and 15th of the month, which calculation would be used? Semi-monthly. If someone is paid every two weeks, which calculation would be used? Bi-weekly. To convert income to annual amounts, multiply: a.) Monthly Income x 12 b.) Weekly Income x 52 c.) Bi-Weekly x 26 d.) Semi-Monthly x 24 e.) Hourly full-time x 2080 What income is counted for a person 18 years of age or older who is not the head or spouse? a.) If the person is a full-time student (is enrolled in 12 credit hours or more) count earned income of $480. b.) If the person is a part-time student (is enrolled in less than 12 credit hours) count all of their income. c.) If the person is not a student count all of their income. When calculating employment income, is gross income (before taxes) or net income (after taxes) used? Gross income. When an individual receives Social Security benefits, is the amount with or without Medicare added in? The amount should have Medicare added in when computing Annual Income. The Medicare is used as a Medical Allowance. Income Calculations (continued) What is the income calculation formula when the family’s total assets are less than $5,000? Use Actual Income from Assets. What is the income calculation formula when the family’s total assets are greater than $5,000? Use the greater of Actual Income or Imputed Income. How is imputed income from assets calculated? HUD-approved passbook rate x total cash value of assets. Use the passbook calculation only when assets exceed $5,000. What proof is required for families who declare a family member permanently absent? This is at the Housing Agency’s discretion. A policy should be developed and put in writing. If a person is temporarily absent, what income is counted? All income of a temporarily absent household member is counted. How do you treat income received from persons outside the household? Count regular, not sporadic, contributions as income. This would be income received every month from a friend or family member to pay bills. This is considered informal support and should be verified through 3rd party verification. ASSET INCLUSIONS Savings account – current balance. Checking account – average monthly balance for prior 6 months. Stocks and bonds. Savings Certificates, money market funds, other investments. Equity in real property – must get to Cash Value. Trusts available to household – if unavailable and irrevocable, don’t count. IRA, Keogh, retirement accounts. Company retirement pensions. Assets that allow unrestricted access (or savings accounts) – may be owned by more than one person. Lump sum receipts such as inheritances, capital gains, lottery winnings, cash from sale of assets, insurance settlements, Social security and SSI lump sums. Personal property held as an investment – gems, jewelry, coin collections, and antique cars. Cash value of life insurance policies – cash surrender value – ordinary, whole universal (not term). Imputed assets – assets disposed of for less than fair value within prior two years. Exceptions to this would be foreclosure, bankruptcy and separations/divorce where court determines value. ASSET EXCLUSIONS Personal property – car, clothes, etc. Assets not accessible by the family – irrevocable trusts, for example. Assets that are part of a business. For example, Avon products prepurchased with intent to sell. Interest in Indian trust lands.
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