SSA 2022 Cost of Living Adjustment (COLA)

The almost 70 million Americans who rely on Social Security benefits will receive a 5.9% increase in 2022. This is the highest increase since 1982. 

The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries will begin on December 30, 2021. 

For those of you who have implemented Streamlined Verification of Fixed Income, remember that, if you conducted traditional verification in 2020 or 2021, you need only calculate the increase and include the 2022 COLA Fact Sheet in the Tenant File. No new award letter is required. See our RBD OnDemand Training Streamlined Verification & Implementation of the FAST Act for additional information. When using this method, do not round the monthly benefit amount; round after the annual benefit amount is calculated. 

See HSG Notice 16-09 Streamlining Administrative Regulations for Multifamily Housing Programs. 

If you have already completed January 2022 ARs, there is no requirement to correct those certifications to incorporate this change unless the household income increase will be $200 or more. 

HUD provides the following guidance in HH 4350.3 R1, C4, Paragraph 9-6: 

When processing certifications with an effective date of January 1, February 1, March 1 and April 1, in order to complete the Recertification Steps outlined in Chapter 7, Figure 7-3, and provide the tenant with the required 30-day notice of any increase in rent, the owner must use one of the methods below for determining the tenant’s income. 

  1. Use the benefit information reported in EIV that does not include the COLA as third-party verification as long as the tenant confirms that the income data in EIV is what he/she is receiving;
  2. Use the SSA benefit, award letter or Proof of Income Letter provided by the tenant that includes the COLA adjustment if the date of the letter is within 120 days from the date of receipt by the owner; 
  3. Determine the tenant’s income by applying the COLA increase percentage to the current verified benefit amount and document the tenant file with how the tenant’s income was determined; or    
  4. Request third-party verification directly from SSA when the income in EIV does not agree with the income the tenant reports he/she is receiving.  (See Paragraph 9-15) 

All recertifications effective after April 1 must reflect the SSA benefit that includes the COLA.