Rent Calculation - mhponline.org · PDF fileSHP Rent Calculation Worksheet ... –The monetary value of food stamps SHP Rent Calculation ... Rent Calculation Worksheet • Earned Income

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SHPRent Calculation

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Rent Calculation

SHP grantees are not req ired to• SHP grantees are not required to charge rent

• If rent is charged, cannot be more than 30% of a household’s monthly adjusted income

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• Must have copies of the initial and all subsequent rent calculations---MUST BE DATED

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Rent Calculation

• Must have proper income verification (pay stub, MFIP benefit, etc) for each calculation of rent

• When monitoring, HUD finds it helpful if h i ifi ti i tt h d t

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each income verification is attached to the corresponding rent calculation

Rent Calculation

• Monitoring– Exhibit 13-3: Review of SHP Housing– Three questions about rent calculation

• are the rents charged accurately calculated including deductions and

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calculated, including deductions and utility allowances?

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Rent Calculation• Monitoring

E hibi 13 3 R i f SHP H i– Exhibit 13-3: Review of SHP Housing• does the file documentation show the

source(s) of income used in preparing the rent calculations?

• do the rent records indicate that

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participants’ incomes are re-examined at least annually?

Rent Calculation

• Rent needs to be calculated:• Rent needs to be calculated:– At the time a participant enters the

program– At least once a year after the initial

calculation

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calculation

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Rent Calculation• If there is a change in family composition---

birth of a child, etc., or if the household’s income decreases, the participant may request a new calculation

• If a participant’s income increases, his/her rent does not need to be recalculated until

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rent does not need to be recalculated until the next scheduled (annual) recalculation

Rent Calculation

• Grantees may institute mandatory savings programs, but ensure you are aware of how the savings will affect a participant’s eligibility for mainstream resources

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Rent Calculation

• We recommend that grantees:g– develop clear WRITTEN rent calculation

policies– communicate the policy to participants– and apply the policy uniformly to all

residents

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residents

Rent Calculation• Questions to think about when developing

a policy:y– If your program is in a partnership, which

entity is responsible for verifying income/calculating rent? Is this clear in the MOU?

– Does the program have other funding

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p g gsources? Which ones? What are the income verification/rent calculation requirements of those funding sources?

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a policy:p y– Are you going to require income verification

more than once a year? How often? Under what circumstances?

– Will you require that participants inform you if they have an income increase? Income d ? Wh t ill b th

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decrease? What will be the increase/decrease threshold for reporting?

Rent Calculation

• Questions to think about when developing lia policy

– If a participant has an unexpected, non-recurring loss in income that prevents him/her from being able to pay rent that

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month, will you do a one-month only rent re-calculation?

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a policy

– Who will be responsible for income/rent calculations?

• What training will s/he receive?

With which resources will s/he be

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• With which resources will s/he be provided?


a policya policy

– What supportive interventions will you have in place to help the participant pay his/her rent?

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– What will you do if a participant does not pay rent on time?

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a policya policy

– In most cases, failure to pay rent does not qualify a participant for termination

– The SHP regulations state that a participant may only be terminated in

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participant may only be terminated in “the most severe cases”

– How does your organization define “most severe”

SHP Rent Calculation Worksheet

• Questions 1-8 refer to the income a household expects to receive in the next 12 months

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• Sources of funds that DO NOT COUNT• Sources of funds that DO NOT COUNT as income– Student assistance—loans, grants,

etc.– Compensation received from HUD,

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Co pe sa o ece ed o U ,local and/or state training programs

– The monetary value of food stamps


A complete list of what is included/excluded from income can be found in 24 CFR Section 5.09

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• Four mandatory deductions:– $480 for each dependent– $400 for any elderly or disabled family

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Fo r mandator ded ctions• Four mandatory deductions:– To the extent that the sum of unreimbursed

medical expenses of a disabled or elderly family member AND unreimbursed attendant care and auxiliary apparatus expenses exceeds 3% of income

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expenses exceeds 3% of income– Unreimbursed child care expenses

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• Dependent deduction (line #13)• Dependent deduction (line #13)– For each dependent living with the participant,

deduct $480 from annual income– Dependents include household members under

the age of 18, elderly dependents, full-time students the handicapped or disabled

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students, the handicapped or disabled– Dependents do not include the family head,

spouse, or foster children


• Disabled/Elderly family deduction (line• Disabled/Elderly family deduction (line #14)– Deduct $400 from the annual income

of any household whose head of household, spouse, or sole member is at least 62 years old or is disabled

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is at least 62 years old, or is disabled or handicapped

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• Disabled/Elderly family deduction (lineDisabled/Elderly family deduction (line #14)– One deduction per qualified family per

year (even if three qualifying members of the household are disabled the household can only

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disabled, the household can only deduct $400 per year)


• Child care deduction (line #15)– Deduct the amount of reasonable, non-

reimbursed child care expenses expected in the next 12 months for kids 12 and under

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12 and under

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• Child care deduction (line #15)– The child care must enable a household

member to work or go to school– The amount deducted cannot exceed the

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amount of income received from the work


• Attendant Care and Auxiliary ApparatusAttendant Care and Auxiliary Apparatus Deduction AKA Handicapped Assistance Allowance (line #16a)– The reasonable, anticipated,

unreimbursed expenses for attendant care or auxiliary apparatus (wheelchair

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care or auxiliary apparatus (wheelchair etc.) that enables that individual or other household member to work

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• Attendant Care and Auxiliary Apparatus Deduction AKA Handicapped Assistance Allowance (line #16a)– Amount deducted cannot exceed the

amount earned by adult household

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amount earned by adult household members as a result of the handicapped assistance


• Medical Expenses of Elderly or Disabled• Medical Expenses of Elderly or Disabled Residents Deduction (line #16b)

– Determine amount of out-of-pocket, non-reimbursed medical expenses

t d f ld l di bl d

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expected for elderly or disabled residents for the coming year

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Rent Calculation Worksheet

• The amount of unreimbursed attendant care and auxiliary apparatus expenses ANDunreimbursed medical expenses are added together (line#16c) The combined amount that exceeds 3% of

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• The combined amount that exceeds 3% of annual income is deducted from annual income (line #16d)


• Earned Income Disregard/Self SufficiencyEarned Income Disregard/Self Sufficiency Incentives for Persons With Disabilities (line #17)– Grantees must DISREGARD as

income that which is earned by previously unemployed persons with

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previously unemployed persons with disabilities

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E d I Di d/S lf S ffi i• Earned Income Disregard/Self Sufficiency Incentives for Persons With Disabilities (line #17)– Became effective April 20, 2001– Correction to the Final Rule published

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in the February 12, 2002 Federal Register


• Earned Income Disregard/Self SufficiencyEarned Income Disregard/Self Sufficiency Incentives for Persons With Disabilities (line #17)– Applies to households in the HOME,

HOPWA, SHP, and Housing Choice Voucher Program

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Voucher Program– Does NOT apply to S+C households

(except if they are also receiving any of the other subsidies)

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Earned Income Disregard (Line #17)

• Grantee’s are required to EXCLUDE certain increases in a household’s income if the income increases as a result of:– Employment of a disabled family

member who was unemployed for at

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member who was unemployed for at least 12 months prior to employment


• Grantee’s are required to EXCLUDE certain increases in a household’s income if the income increases as a result of:– Unemployed means that the person

earned less than what s/he could earn

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working for 10 hours per week for 50 weeks at minimum wage ($3,075.00)

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• Grantee’s are required to EXCLUDE certain increases in a household’s income if the income increases as a result of:– Increased earnings by a disabled family

member during participation in any

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member during participation in any economic self-sufficiency or job training program


• Grantee’s are required to EXCLUDE certainGrantee s are required to EXCLUDE certain increases in a household’s income if the income increases as a result of:– New employment or increased earnings of

a disabled family member of a household that received at least $500 in TANF

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that received at least $500 in TANF assistance, benefits, or services within six months of either going to work or increasing earnings

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– The exclusions only apply to the annual re-examination of income, not to the initial income determination

– During the first 12-month period of the i h f ll f i i

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increase the full amount of increase is excluded


– During the second 12-month period of the increase, 50% of the increase is excluded

– The disallowance of increased income f di bl d f il b i li i d

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of a disabled family member is limited to a lifetime, consecutive 48-month period

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Th i i i l 12 h l i (100%• The initial 12-month exclusion (100% disallowance) begins the date the family first experiences one of the qualified increases to annual income– If a qualified member begins working June 1st

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q g gbut rent is not recalculated until Dec. 1st, s/he would have already received six months of the 12 month full disallowance


Th i i i l 12 h l i (100%• The initial 12-month exclusion (100% disallowance) begins the date the family first experiences one of the qualified increases to annual income– If period of increased income does not last 12

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pconsecutive months, the period of disallowance may be resumed at any time within the 48 month period

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S d 12 h l i ( 0%• Second 12-month exclusion (50% disallowance) begins after the initial 100% allowance has been applied for 12 months (as long as the 48-month limit has not elapsed)

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p )• 48-month timeclock begins ticking the

date the first qualified income increase begins

Utility Allowances Lines #22-24

• If a participant pays for his/her own utilities, an allowance for utilities must be subtracted from the total rent

• PHAs (public housing authorities) have

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copies of HUD-approved utility allowance charts

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Utility Allowances Lines #22-24

• If a participant’s rent is calculated to be $40• If a participant s rent is calculated to be $40 per month, and PHA utility allowance is $60, then grantee must reimburse the participant $20 each month– SHP operating and/or leasing budgets can be

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used to pay the reimbursements. – Reimbursements cannot be paid with an SHP

supportive services budget

Rent Calculation• Common Mistakes

N t i i di bilit d d ti– Not giving disability deduction– Not asking about out of pocket medical

or daycare expenses– Not having any documentation to show

how income/rent was calculated

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– Not knowing anything about the Earned Income Disregard and not applying it

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Questions?Contact your friendly neighborhood CPD Rep:Rep:

Deb: 612.370.3019 ext. 2215Joe: 612.370.3019 ext. 2157Mary: 612.370.3019 ext. 2102Sara: 612 370 3019 ext 2103Sara: 612.370.3019 ext. 2103Tom: 612.370.3019 ext. 2108

Documents

Rent Calculation - mhponline.org · PDF fileSHP Rent Calculation Worksheet ... –The monetary value of food stamps SHP Rent Calculation ... Rent Calculation Worksheet • Earned Income