HUDBlast August 9, 2006

Students with Disabilities Receiving Section 8 as of November 30, 2005, Exempt From Section 8 Restriction

 

On July 27, 2006, President Bush signed into law an amendment that exempts college students with disabilities from the restriction on providing Section 8 rental assistance to college students if the student with the disability was receiving the assistance as of November 30, 2005.

 

What this means is; disabled students who were receiving section 8 assistance as of 11/30/05 can continue to receive section 8 assistance.   

 

Based on this information, you should evaluate three different areas:

 

Termination of assistance to existing disabled students:  If you terminated any household assistance because of the new student rule, you may want to double check the files to make sure that the student is not disabled and therefore eligible.  If the student is eligible, it is our interpretation that assistance should be reinstated retroactively.  Since the new Student Rule for Section 8 housing was effective as of January 30, 2006, you would reinstate assistance back to that date.

 

Notification to residents/applicants:  Owner/agents were required to notify residents and applicants of the new student eligibility requirements.  Since the rule has been modified, you may want to ensure that residents and applicants are aware of the modification. 

 

Update policies/documents:  Resident selection plans and appropriate questionnaires and verification documents should be updated, as necessary, to include the new student criteria.

 

Simplifying the Student Rule for Section 8 Properties

In an effort to continue to find ways to simplify the student rule, RBD has finally come up with a “short but sweet” student rule description for Section 8 property managers who need to:

1)      Update existing resident selection plans

2)      Send notices to existing residents regarding changes in eligibility requirements

3)      Send notices to existing applicants regarding changes in eligibility requirements

4)      Update internal management process instruction

Eligibility of Students Enrolled in an Institute of Higher Education Applying for Assistance under the Section 8 Program:

A student enrolled in an Institute of Higher Education as defined by the Higher Education Act of 1965-Amended 1998 will be deemed eligible for assistance if the student meets all other eligibility requirements, passes screening criteria and is:

1)      Living with parents/guardian or

2)      Disabled and was receiving assistance as of November 30, 2005

3)      Over 23 years of age or

4)      A veteran or

5)      Married or

6)      Has a dependent child or

7)      Can prove independence of parents including providing certification that the parents did not claim the student on the most recent tax return or

8)      Has parents who are income eligible for the Section 8 program

Any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965 from private sources or an institution of higher education (as defined under the Higher Education Act of 1965) shall be considered income to that individual.  There are two exceptions to this income calculation requirement.  No financial assistance that an individual receives under the Higher Education Act of 1965 from private sources or an institution of higher education (as defined under the Higher Education Act of 1965) shall be considered income if the student is:

1)                  Living with his/her parents/guardian or

2)                  A person over the age of 23 with dependent children

It’s taken a while, but “by George I think we’ve got it!!”  Updated sample letters are available on the RBD web site at http://www.rbdnow.com/noticesforms.htm

Potential Problems Submitting MAT 10s to TRACS

It has come to our attention that MAT 10s, especially those submitted on the 1st or 2nd of this month, may not have been recorded in TRACS.  MAT 10s include:

§         Move-ins

§         Annual Certifications

§         Initial Certifications

§         Interim Certifications

RBD strongly recommends that you check Secure Systems to make sure that all data sent to TRACS is recorded without error.  It is those industry professionals who closely monitor their submissions who have noticed a possible issue with this month’s early submissions.

Please be sure to sign on to Secure Systems and run a certification query to make sure that all resident information is up to date.  If certifications are missing and you report directly to TRACS; re-send the missing data.  If certifications are missing and you report to a Contract Administrator, you should contact your Contract Administrator to obtain instructions on how to get the information in to TRACS.

Remember, missing certifications will eventually reduce your compliance percentage.  You must be at 90% compliance in order to receive your voucher payment.

TRACS Meeting Announced

The TRACS Meeting is scheduled for September 21 and 22, 2006 in Washington, D.C.

RBD does not act as a legal advisor nor as a regulatory governing agency.  The recipient should understand that any materials or comments contained herein are not designed for, nor should be relied upon as a source of legal guidance or as a final authority with respect to any particular circumstance. Ross Business Development, Inc. makes no warranty of merchantability or fitness for a particular purpose or any other warranty of any type. Owners and management should seek competent legal advice in developing and carrying out policies and procedures.  While we have been diligent in our efforts to provide comprehensive and accurate regulatory information, Ross Business Development, Inc. shall not be responsible for errors or inaccuracies.