Good news for owner/agents of USDA/RD properties.
Recently USDA’s Rural Development group instructed owners of RD properties to pause any recertification based on Social Security COLA increases, pending further guidance. In a recent posting entitled Multifamily Housing Temporary Exception to Tenant Recertification Requirements (7 CFR 3560.152(e)), RD has announced a temporary exception to some recertification requirements and requires notification of the exception to owner/agents and residents.
The RD regulation requires owner/agents of RD properties recertify annually or when a family’s income increases by $100 or more per month.
In October, the Social Security Administration announced an 8.7% COLA increase which means that SS and SSI benefits will increase an average of $140 per month starting January 2023. This would require recertifications for most Social Security recipients living in RD properties.
USDA/RD is temporarily modifying the recertification requirement for residents whose household income has increased by more than $100 but less than $200. Now residents are required to recertify at least annually and if the household income increases by $200 or more per month (in line with HUD’s Multifamily Housing requirements). This is true regardless of whether the increase was caused by the SS COLA increase or by some other income change.
This modification to the rules is temporary and will be in place through calendar year 2023.
The requirement that borrowers must recertify for changes of $50 per month, if the tenant requests that such change be made, is still in effect.
Owner/agents are instructed to take the following steps:
