Housing Voucher Programs - Policy and Procedures Manual

Chapter IX Sections

1. Income Change
   1. Zero-Income Entire Household
   2. Tenant Request
   3. Fraud/Unreported Income
   4. Earned Income Disregard Disallowance Period
   5. Co-Head/Spouse turns 18
2. Verification Procedures
3. Income Increases
4. Income Decreases
5. Changes in Family Composition
6. Contract Rent Increases
7. Subsidized Development Rent Increase
8. Zero HAP
9. Repayment Agreement
10. Elite Procedure
11. Applicable Forms List

Chapter IX: Interim Re-Examinations

Effective: May 2010

Introduction

Certain changes in household income or family status generate a need for processing interim re-examinations. Participants must report any family size changes and increases in income immediately (within 14 days) except annual increases in SS, SSI, or pensions. All reported income changes that have a gross monthly income increase of $100 or more (the threshold amount for MSHDA) must be processed as an interim re-examination and become effective with a 30-day notice to the family of the change. Reported income increases that are under the threshold will not be processed as an interim re-examination unless a move occurs.

Changes to MSHDA’s payment standards should not result in an interim re-examination as payment standards can only be changed at an annual re-examination or move.

Section A: Income Change

All reported gross monthly income increases of $100 or more (the threshold) must be processed as an interim re-examination. Gross income increases of less than $100 per month will be disregarded (except for zero income entire households) until the next annual (or interim exceeding the threshold) re-examination. If the HA determines that the $100 threshold will not be exceeded, document the information on an Income Increase Threshold Worksheet (MSHDA 490) including written calculations demonstrating that the threshold will not be exceeded and forward document for inclusion in the official file. Do not process other reported increases under the threshold until move or annual re-examination, whichever occurs first.

If an unreported increase in income exceeding the threshold is discovered at the next annual re-examination, the participant must sign a Repayment Agreement (MSHDA 103). A Repayment Agreement must be executed and signed for zero income households who did not report income increases regardless of whether or not the threshold is exceeded.

Process reported income increases regardless of the amount for the following situations:

1. Zero-Income Entire Household

• Process all increases in income for zero-income households, regardless of the amount. A zero-income household is defined as a household in which no members of the family have earned or unearned income. A household with benefits or non-earned income (i.e. Social Security, child support, FIA, etc.) to minors (family members age 17 and under) is not considered a zero-income household. See Chapter IV for more detail.
• If unreported income is discovered for a zero-income household at the next annual re-examination, the participant must sign a Repayment Agreement (MSHDA 103) to pay back the inaccurate rent subsidy paid due to unreported income.

2. Tenant Request

Upon family request, process all interims regardless if threshold has been met. Note: Processed earned income increases benefit the escrow account for FSS participants. Follow procedures identified in Section C.

3. Fraud/Unreported Income

• Any HA suspecting or receiving notification of a discrepancy must verify it including reviewing allegations (i.e. complaints) about a participant’s unreported income.
• If a HA discovers unreported income when reviewing documents and it is verified the participant was unable or failed to report income in a timely manner (i.e. guardian didn’t notify HA, etc.), process increase with interim re-examination.
• Refer to Section B of this Chapter; Chapter IV, Income Verifications; and if appropriate, Chapter XXVIII. Processing Tenant Repayment Agreements.

4. Earned Income Disregard Disallowance Period

At the end of the 12-month allowance period, include 50% of earned income or all earned income (24 months) at end of the earned income disallowance period.

5. Co-Head/Spouse turns 18

When a minor co-head/spouse turns 18, they no longer qualify for the dependant allowance. Change the relationship code in Elite by selecting the correct choice from the pull-down menu which will remove the $480 deduction. Also include any earned income to household income. Process an interim re-examination/annual change.