HUDBlast April 17, 2006

Student Rule Interpretation.

Guidance on Student Rule for Section 8 Property Managers

For those of you managing Section 8 properties, we strongly suggest you review HUD’s clarification of the Student Rule to make sure you understand the intent and the definitions.  For example; an “institute of higher education” is no longer limited to college or junior college.  HUD’s clarification is posted on our web site at http://www.rbdnow.com/noticesforms.htm and on HUDclips. 

After reviewing HUD’s clarification, we have attempted to break things down for you in hopes of making it a bit clearer and easier to understand.  Again, this interpretation is an attempt to assist in clarifying certain aspects of HUD’s guidance and IS NOT a summary of all issues covered.

RBD has been working with some of our clients and associates to develop new verification forms to assist you in implementing this new rule.  The sample forms are posted on our web site at http://www.rbdnow.com/noticesforms.htm.

This is how we are interpreting the clarification for the new student rule. 

Four criteria -
1 - Over 23
2 - Married
3 - Have dependent child (as defined)
4 - Be a veteran (as defined)

If a student is residing or applying with a parent (or guardian as defined) and the household is otherwise eligible then the student would be eligible.  No portion of the financial assistance would be counted as part of the household income. 

If a non-eligible student is currently receiving section 8 assistance and is deemed to be ineligible then the entire household is ineligible for assistance.  Assistance will be:

  • Denied to applicants
  • Terminated for existing households 

If a student meets one of the four criteria and is otherwise eligible then the student would be eligible.  Non-tuition financial assistance would be counted unless the student is over 23 with a dependent child.

If a student does not meet one of the four criteria and is not otherwise eligible, assistance is denied or terminated.

If a student does not meet one of the four criteria, is individually eligible, but the parents are over income (not income eligible), then assistance is denied or terminated.

If a student does not meet one of the four criteria and is otherwise eligible and verification indicates that the parents are income eligible, then the student is eligible.  Non-tuition financial assistance would be counted unless the student is over 23 with a dependent child. 

If a student does not meet one of the four criteria is otherwise eligible and the student can provide that he/she is independent from the parents, the student would be eligible.   Non-tuition financial assistance would be counted unless the student is over 23 with a dependent child.  To prove independence from the parents, the student would meet the description of an independent student.  That is:

  1. The individual must be of legal contract age under state law
  2. The individual must have established a household separate from parents or legal guardians for at least one year prior to application for occupancy or the individual meets the U.S. Department of Education's definition of an independent student

(1)   Be at least 24 years old by December 31 of the award year for which aid is sought;

(2)   Be an orphan or a ward of the court through the age of 18

(3)   Be a veteran of the U.S. Armed Forces

(4)   Have legal dependents other than a spouse (for example, dependent children or an elderly dependent parent)

(5)   Be a graduate or professional student

(6)   Be married

  1. The individual must not be claimed as a dependent by parents or legal guardians pursuant to IRS regulations

Owner/agents need to certify any contribution to the student from family or other sources inside or outside the household.

Enterprise Income Verification (EIV) Replacing TASS

TASS is the HUD database used by owner/agents to perform up front income verification by obtaining Social Security/Supplemental Security Income (SS/SSI) benefit information and benefit history reports.

In September, 2006, EIV will replace TASS.  EIV will incorporate all of the existing TASS information.  In addition, the EIV system also includes the Department of Health and Human Services (HHS) National Directory of New Hires (NDNH) data.  While this information is not currently available for Multifamily Housing users, HUD is currently working with HHS to allow Multifamily Housing users access to the data to use for upfront verification purposes.  

The NDNH data consists of employment and income information reported to states by employers and submitted to the NDNH.  

Multifamily Housing users are encouraged to start becoming familiar with the EIV system now.  The Multifamily Housing EIV User Administration Manual, which provides instructions on the use of EIV, and the EIV Multifamily Housing User Agreement and Rules of Behavior may be found on Housing's RHIIP website at http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm under "What's New?."