HUD Handbook 4350.3 - Ch 7 Terms

Question 1

Annual Income

Answer 1

All amounts, monetary or not, which:
1. Go to, or on behalf of, the family head or spouse [or co-head] (even if temporarily absent) or to any other family member; or
2. Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and
3. Which are not specifically excluded [by regulation].
Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. [24 CFR 5.609]

Question 2

Assistance Payment

Answer 2

The amount HUD pays the owner for a unit occupied by a Section 8, RAP, Rent Supplement, or PAC tenant. It includes HUD’s share of the contract rent and any utility reimbursement due the tenant. It is the gross rent for the unit minus the Total Tenant Payment (TTP). The assistance payment for an occupied PRAC unit is the operating rent minus the TTP.

Question 3

Assisted Tenant

Answer 3

A tenant who pays less than the market rate. Includes tenants:

1. Receiving Rent Supplement, RAP, PAC, or Section 8 assistance;
2. Living in a Section 202 PRAC or Section 811 PRAC development paying equal to or less than the operating rent;
3. Living in a Section 202 PRAC or Section 811 PRAC development paying more than the operating rent, which generates excessincome;
4. Paying the BMIR contract rent;
5. Paying the Section 236 basic rent; or
6. Paying above basic rent, which generates excess income, but less than market rent, in a Section 236 project.

Question 4

Contract Rent

Answer 4

The rent HUD or the Contract Administrator has approved for each unit type covered under an assistance contract. The rent may be paid by the tenant, HUD, or both. Refer to the project’s rental schedule
(form HUD-92458) or Rental Assistance contract for exact amounts.

Question 5

Deductions

Answer 5

In determining adjusted income, the owner must deduct the following from annual income:
1. $480 for each dependent;
2. $400 for any elderly family or disabled family;
3. The sum of the following to the extent the sum exceeds 3% of annual income:
a. Unreimbursed medical expenses of any elderly or disabled family; and
b. Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with a disability) to be employed. This deduction may not exceed the earned income received by family members who are 18 years of age or older and who are able to work because of such attendant care or auxiliary apparatus; and
4. Any reasonable child care expense necessary to enable the family member to be employed or to further his or her education. [24
CFR 5.611]

Question 6

Enterprise Income Verification (EIV)

Answer 6

HUD’s computer system that must be used by owners as third party verification of employment and income during mandatory recertifications of family composition and income and to reduce administrative and subsidy payment errors.*

Question 7

Family Composition

Answer 7

The specific individuals who are included in the assisted family. Information on family composition includes names, ages, sexes, and citizenship status of all members and their relationship to one another.

Question 8

Gross Rent Change

Answer 8

Any HUD-approved change in the contract rent or the utility allowance for a unit.

Question 9

Market Rent

Answer 9

The rent HUD authorizes the owner to collect from families ineligible for assistance. For Section 236 units, the market rent is shown on the project’s HUD-approved rent schedule. For Rent Supplement, Section 202, and Section 8 units, the market rent is the same as the
contract rent. For BMIR units, market rent varies by whether the project is a rental or cooperative.
1. BMIR Rentals. Market rent equals 110% of the BMIR rent.
2. BMIR Cooperatives. Cooperatives use the term “carrying charge” to describe the amount charged a cooperative member for occupying a unit. Market carrying charges equal the contract carrying charge plus any surcharge established by the cooperative and approved by HUD. If the cooperative has not received HUD approval of a plan for surcharging its over-income members, the market carrying charge equals 110% of the contract carrying charge.

Question 10

Recertification Anniversary Date

Answer 10

Generally, the recertification anniversary date is the first day of the month a tenant moved into a project receiving HUD assistance. As long as an owner processes an annual recertification according to the
procedures and deadlines required in Chapter 7, changes in the TTP, tenant rent, and assistance payment take effect on the recertification anniversary date.

Question 11

TTP

Answer 11

Total Tenant Payment - Each family or individual who receives PRAC subsidy must make a total tenant payment of 30% of adjusted income, 10% of gross income, or Welfare Rent, whichever is greater, for housing costs, i.e., rent and utilities. In some cases, a resident’s monthly rent payment may exceed the PRAC operating rent. As with HAP contracts:

1. The monthly amount a resident pays the owner should be the Total Tenant Payment less any HUD-approved utility allowance the tenant pays; and
2. The resident may receive a utility reimbursement from the owner if the resident’s Total Tenant Payment is less than the HUDapproved utility allowance.

Question 12

Unit Transfer

Answer 12

With owner approval, a tenant moves from one unit to another unit within the same property.

Question 13

Utility Allowance

Answer 13

HUD’s or the Contract Administrator’s estimate of the average monthly utility bills (except telephone) for an energy-conscious household. This estimate considers only utilities paid directly by the tenant. If all utilities are included in the rent, there is not a utility allowance. Utility allowances vary by unit type and are listed on the
project’s rent schedule or HAP contract.