Last week, HUDreleased new information about the Section 8 Student Rule: [Docket No.FR-5969-N-01]Eligibility ofIndependent Students for Assisted Housing Under Section 8 of the U.S. HousingAct of 1937; Additional Supplementary Guidance.
The new informationincluded in the Federal Register gives owner/agents the opportunity to removebarriers preventing eligibility when a student is an orphan, ward of the court,emancipated minor or in a legal guardianship relationship with someone otherthan the student's parents. Under most circumstances, these students are nowclassified as Independent Students.
HUD has alsomodified the verification requirements when a student claims eligibility basedon their status as an Independent Student.
Based on review ofthe Federal Register in combination with review of the Code of FederalRegulations (24 CFR 5.16), we have revised the TSP language describingeligibility of students for the Section 8 program. We have also revised theStudent Certification.
The new Section 8TSP's and the new Student Certification are part of the TSP FASTForms. Foradditional information about forms included on this CD, please visit our website at:https://www.rbdnow.com/fastforms4350.htm.
While existing criteria did not change, new eligibility information about thesestudents is summarized below:
Note: Twonew eligibility criteriahave been addedto previously published criteriadescribing qualified students, enrolled in an institute of higher education.
A student who is otherwise eligible and meets screening requirements is eligiblefor assistance if the student meets the criteria indicated below. Section 8assistance shall be provided to any individual who isenrolled as either a part-time or full-time student at an institution of highereducation for the purpose of obtaining a degree, certificate, or other programleading to a recognized educational credential;when the student:
1)Isclassified as Vulnerable Youth; A student meets HUD's definition of avulnerable youth when:
a)Theindividual is an orphan, in foster care, or a ward of the court or was anorphan, in foster care, or a ward of the court at any time when the individualwas 13 years of age of older;
b)Theindividual is, or was immediately prior to attaining the age of majority, anemancipated minor or in legal guardianship as determined by a court of competentjurisdiction in the individual's State of legal residence;
c)Theindividual has been verified during the school year in which the application issubmitted as either an unaccompanied youth who is a homeless child or youth (assuch terms are defined in section 725 of the McKinney-Vento Homeless AssistanceAct) (42 U.S.C. 11431 et seq.), or as unaccompanied, at risk of homelessness,and self-supporting, by
i)Alocal educational agency homeless liaison, designated pursuant to theMcKinney-Vento Homeless Assistance Act;
ii)Thedirector of a program funded under the Runaway and Homeless Youth Act or adesignee of the director;
iii)Thedirector of a program funded under subtitle B of title IV of the McKinney-VentoHomeless Assistance Act (relating to emergency shelter grants) or a designee ofthe director; or
iv)Afinancial aid administrator; or
2)The individual is a student for whom a financial aid administrator makes adocumented determination of independence by reason of other unusualcircumstances
Anyfinancial assistance a student receives (1) under the Higher Education Act of1965, (2) from private sources, or (3) from an institution of higher educationthat is in excess of amounts received for tuition and other fees is included inannual income, except:
Financialassistance that is provided by persons not living in the unit is not part ofannual income if the student meets the Department of Education's definition of"vulnerable youth".
HUD also modified verification requirements specifically used when a studentdoes not meet general eligibility criteria but wishes to establish eligibilitybased on the student's status as an Independent Student.
The owner/agent must verify independent student status. Starting in 2006 anduntil September 2016, Student's Independence Verification Requirements includedthe following:
1.Review andverify previous address information to determine evidence of a separatehousehold, or verifying the student meets the U.S. Department of Education'sdefinition of "independent student";
2.Reviewprior year income tax returns to verify if a parent or guardian has claimed thestudent as a dependent, except if the student meets the Department of Educationdefinition of "independent student"; and
3.Obtainwritten certification by a parent of the amount of financial support that parentprovides to the student, or written certification that the parent provides nofinancial support to the student.
The new Student's Independence Verification Requirements are as follows:
Owner/agents providing Section 8 assistance will verify a student's independencefrom his or her parents to determine that the student's parents' income is notrelevant for determining the student's eligibility for assistance by doing allof the following:
1.Reviewingand verifying previous address information to determine evidence of a separatehousehold or verifying the student meets the U.S. Department of Education'sdefinition of "independent student";
2.Reviewinga student's prior year income tax returns to verify the student is independentor verifying the student meets the U.S. Department of Education's definition of"independent student"; and
3.Verifyingincome provided by a parent by requiring a written certification from theindividual providing the support. Certification is also required if the parentis providing no support to the student.
NOTE:Verification of a Student's Independence is not required if the student meetsthe definition of vulnerable youth. We're still working to obtainadditional clarification.
We are working on an RBD Online Training Class to discuss these changes.We will let you know when we have finalized the new class.
SinceHUD has indicated that we should expect an increase in the number of Management& Occupancy Reviews (MOR) conducted in 2016, we have created a class to allowowner/agents and property managers to take a step back and review HUD'smultifamily occupancy requirements. This is not a review of basic requirements,but rather a discussion about best practices designed to help you identifycommon mistakes that may otherwise be revealed during the MOR.
Trainingincludes sample forms, notices and checklists.
Class Schedule at a Glance (In Location Order)
|St. Paul, MN||HUD Management & OccupancyChallenge||October 25 & 26, 2016|
To sign up for the HUDBlast,visit our web site atwww.rbdnow.com. Just enter your email address in the box in the center ofthe home page.You canview previously posted HUDBlasts from our web site athttps://www.rbdnow.com/hudblasts.htm
We also encourage you to sign-up for theListserv, so you can receive current RHIIP related information from HUDhttp://www.hud.gov/subscribe/mailinglist.cfm.You canview the RHIIP Tips Archives, under "Listserv-Multifamily RHIIP Tips" athttp://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm
RBD does not act as a legal advisor nor as a regulatory governingagency. The recipient should understand that any materials or commentscontained hereinare not designed for, nor should be relied upon as a source oflegal guidance or as a final authority with respect to any particularcircumstance. Ross Business Development, Inc. makes no warranty ofmerchantability or fitness for a particular purpose or any other warranty of anytype. Owners and management should seek competent legal advice in developing andcarrying out policies and procedures. While we have been diligent in ourefforts to provide comprehensive and accurate regulatory information, RossBusiness Development, Inc. shall not be responsible for errors or inaccuracies.