Questions and Answers on the Eligibility of …

1 Questions and Answers on the Eligibility of Students for Assisted Housing Under the Multifamily Housing Project-based Section 8 Program group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a) Amended by Public Law 109-249 Section What are the restrictions in Section 327(a) of the Act? No section 8 assistance shall be provided to any individual who: Is enrolled as a student at an institution of higher education; Is under the age of 24; Is not a veteran of the United States military; Is unmarried; Does not have a dependent child; Is not a person with disabilities, as such term is defined in section 3(b)(3)(E) of the United States Housing Act of 1937 (42 (b)(3)(E)) and was not receiving assistance under such section 8 as of November 30, 2005; and Is not otherwise individually eligible, or has parents who, individually or jointly, are not eligible on the basis of income to receive section 8 assistance.

2 Section 327(b) Section (b)(9) What are the restrictions in Section 327(b) of the Act? Financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965, from private sources, or from an institution of higher education is considered income for that individual, except for persons over the age of 23 with dependent 1 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer children. Sections 327(a) and 327(b) Sections (b)(9) and Does the new law apply to both a part-time and a full-time student enrolled at an institution of higher education? Yes. The new law applies to a student who is enrolled either full-time or part-time at an institution of higher education. The new law does not exempt a part-time 327(a) Amended by Public Law 109-249 Section Does the new law apply to a student who is a person with disabilities?

3 Students with disabilities who were receiving section 8 assistance as of November 30, 2005, are exempt from the restrictions for providing section 8 assistance to college students as provided in Public Law 109-249. Students with disabilities who are applying for, or who started receiving, section 8 assistance after November 30, 2005, are not exempt from the restrictions of the new law. Section 327(a) Sections (f) If a student is living with his or her parents who are already living in assisted housing and receiving section 8 assistance, must the student meet the Eligibility requirements of (f)? No. The new law does not apply to students residing with their parents in a section 8 assisted unit or who reside with parents who are applying to receive section 8 assistance. Sections 327(b) Sections (b)(9) Would any financial assistance received by a student living with his or her parents in assisted housing and receiving section 8 assistance be included in annual income ?

4 No. Since the new law does not apply to students residing with their parents in a section 8 assisted unit or who reside with parents who are applying to receive section 8 assistance, any financial assistance in excess of tuition would not be included in annual income . The financial assistance would continue to be excluded from annual income under (c)(6). 2 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a)(1) through (a)(6) Amended by Public Law 109-249 Section (a) through (f) If a student is under the age of 24, not a veteran, unmarried, and has no dependent children, must both the student and the student s parents meet the income Eligibility requirements in order for the student to be eligible? If an individual is enrolled as a student at an institution of higher education, is under the age of 24, not a veteran, not married, is not a person with disabilities who was receiving section 8 assistance on November 30, 2005, and does not have a dependent child, in order to be eligible for section 8 assistance, the student must be individually eligible to receive section 8 assistance and the student s parents (the parents individually or jointly) must be income eligible to receive section 8 assistance unless the student can demonstrate his or her independence from parents in accordance with the guidance in the Supplementary Guidance Notice published in the April 10, 2006 Federal Register (71 FR 18146).

5 As previously stated, the new law does not apply to students residing with their parents in a section 8 assisted unit or who reside with parents who are applying to receive section 8 assistance. 3 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a)(1) through (a)(6) (a) through (5) What happens if the parents refuse to declare or certify to their income ? In order for the student to be eligible for section 8 assistance, his or her parents must also be eligible for section 8 assistance, therefore, if the parents refuse to provide a declaration and certification of their income , the student is not eligible unless the student can demonstrate his or her independence from parents in accordance with the guidance published in the Supplementary Guidance Notice published in the April 10, 2006 Federal Register (71 FR 18146).

6 Section 327(a)(6) Section (f) When determining the parent s Eligibility under the new law do the parents have to meet all of HUD s program Eligibility requirements in order for the student to be eligible? No. Since Section 327 is focused on income Eligibility of a higher education student, the Department interprets the section s reference to the Eligibility of the parents to also refer to income Eligibility . However, parents who are applying to live in the assisted unit with the student and receive section 8 assistance would have to meet all of the program Eligibility requirements addressed in HUD Handbook REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs. 4 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a)(6) Section (f) What income limit is used for determining the parents income Eligibility under section (f)?

7 In determining the parents income Eligibility to receive section 8 assistance, the owner should use the applicable low income limit for the parents family size for the locality where the parents reside. For example, if the parents live in New York City, the low- income limit for the family size for New York City should be used for determining the parents Eligibility for section 8 assistance. If a student s parents live outside of the United States in areas where income limits have not been established for the section 8 program, the owner should use the applicable low income limit for the parents family size for the same locality used in determining the student s Eligibility . (See paragraph of Handbook REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, for guidance on determining family size for income limits and paragraph for applying the income limit to determine Eligibility for assistance.)

8 income limits for the section 8 program are posted at ) 5 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a)(6) Section (f) In order to determine the Eligibility of parents for section 8 assistance, how will owners and managers obtain and verify income information on the parents? In order to determine the Eligibility of parents, the owner may accept a signed declaration and certification of income from the parents, which includes a penalty of perjury clause. If for some reason the owner determines that the parents declaration and certification of income or their Eligibility is questionable, the owner may request and review supporting documentation. Supporting documentation includes, but is not limited to: Internal Revenue Service (IRS) tax returns, consecutive and original pay stubs, bank statements, pension benefit statements, Temporary Assistance to Needy Families (TANF) or Social Security Administration award letters or other official and authentic documents from a federal, State or local agency.

9 6 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a)(6) Section (f) How can a student demonstrate his or her independence from parents? To determine a student s independence from his or her parents, the owner should use program practices and criteria already in place. These practices and criteria include, but are not limited to, consideration of all of the following: 1. The individual must be of legal contract age under state law. 2. The individual must have established a household separate from parents or legal guardians for at least one year prior to application for occupancy, or the individual must meet the Department of Education s definition of an independent student. 3. The individual must not be claimed as a dependent by parents or legal guardians pursuant to IRS regulations. 4. The individual must obtain a certification of the amount of financial assistance that will be provided by parents, signed by the individual providing the support.

10 This certification is required even if no assistance will be provided. 7 group 1: Eligibility and income Determinations Final Rule 24 CFR part 5, subpart F question Answer Section 327(a)(6) Section (f) How will owners verify a student s independence from his or her parents in order to determine that the student s parents income is not relevant for determining the student s Eligibility ? Owners will need to verify a student s independence from his or her parents by taking into consideration all of the following: 1. Reviewing and verifying previous address information to determine evidence of a separate household, or verifying the student meet s the Department of Education s definition of independent student ; and 2. Reviewing prior year income tax returns to verify if a parent or guardian has claimed the student as a dependent (except if the student meets the Department of Education s definition of independent student ); and 3.