Housing Voucher Programs - Policy and Procedures Manual

Chapter IX Sections

1. Income Change
2. Verification Procedures
3. Income Increases
4. Income Decreases
   1. Effective Date
   2. Corrections
   3. Notification
5. Changes in Family Composition
6. Contract Rent Increases
7. Subsidized Complex Rent Increase
8. Zero HAP
9. Repayment Agreement
10. Elite Procedure
11. Applicable Forms List

Chapter IX: Interim Re-Examinations

Section D: Income Decreases

Process all reported income decreases regardless of the amount of decrease when a family reports a loss of income or assets, or an increase in expenses except when the family reports a loss of welfare benefits due to fraud, or a failure to participate in an economic self-sufficiency or work activity. Imputed welfare income is the amount of annual income not actually received by the family due to a welfare benefit reduction or sanction.

The family may dispute the imputed income and request an informal hearing. Refer to Chapter IV, Income, for more information.

Process decreases in income if:

• The decrease period is expected to last one month or more, provided that the decrease was not considered in the original calculation. Process this decrease via an interim re-examination.

Do Not process a decrease if:

• A lay-off period (or other break) was accounted for when calculating annual income, and a lay-off period/break occurs.
• The decrease is expected to last less than one month. For example: A decrease in income due to missing two weeks of work (with no pay during absence) because of illness, etc.

Document on a MSHDA 77 (for inclusion in the MSHDA file) that the tenant reported an income decrease; however, an interim was not processed.

1. Effective Date

Changes for decreases in income must become effective the first day of the month following notification (no pro-rating). Verification may be dated after the effective date. HA must verify only the reported changes in income.

Process all reported decreases other than the situations noted above regardless of the amount of the decrease and annual re-examination date. For example, process even a $10 reported decrease effective 30 days prior to the annual re-examination date. The intent of the program is to assist the family. Any reduction in Tenant Rent benefits the family.

2. Corrections

Upon notification, the HA must correct calculation income errors. If the tenant’s rent share decreases, the HA must process a correction back to the effective date of the transaction.

Example of Correction:

• An interim re-examination that has been calculated incorrectly - 5/1/05 interim with a tenant rent of $280 was processed. Correcting the error in the calculations changes the tenant rent to $97. Since the error results in a decrease to tenant rent, a new MSHDA 34 must be issued correcting the amounts for the 5/1/05 interim effective date.

3. Notification

• Prepare and distribute an Adjustment Notification (MSHDA 34).
• Submit a Case Data Summary (MSHDA 1344) to the DT along with all required documentation. (Refer to the Forms Reference – Submission Chart [MSHDA 284].)