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Timing of Income Eligibility Determinations

Wednesday, December 19, 2012

RHIIP Listserv Posting #293

Timing of Income Eligibility Determinations
Clarification to Existing Policy

Subsequent to the publication of RHIIP Listserv #292 FY2013 Income Limit Implementation Policy, several individuals have requested clarification on the general policy relating to the timing of determining income eligibility.  Specifically, is an applicant eligible to be housed from the waiting list if they have been determined to be eligible based on the prior year’s income limits and, just prior to the applicant being housed, new income limits are published which would make the applicant ineligible? 

HUD Handbook 4350.3 REV-1, paragraph 3-6.C.2 states:

“Owners determine income eligibility prior to approving applicants for tenancy.  Owners compare the family’s annual income to the appropriate income limit prior to placing an applicant on the waiting list.  However, owners may wait until a unit is available to verify the applicant’s income eligibility.” 

Following this guidance in the Handbook, if a unit becomes available and an applicant is selected from the waiting list, is processed for eligibility, and meets all eligibility requirements at the time of processing, the applicant is eligible to move-in to the project even if new income limits have been published.

Please be advised, this clarification of existing policy is in addition to the information provided in RHIIP Listserv #292 which addressed the errors relating to the FY2013 Income Limits.



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