HUD Implements Over-Income Rules for Public Housing Residents

HUD recently posted a notice in the Federal Register implementing income limits in public housing, as mandated by the Housing Opportunity Through Modernization Act of 2016 (HOTMA). HOTMA established that households earning 120 percent of area median income (AMI) or more for two consecutive years would be considered over-income. Once families meet this threshold, public housing authorities (PHAs) can now either charge the higher of the fair market rent for the unit/monthly subsidy or terminate the tenancy within six months. The notice finalizes how the over-income limit is determined based on HUD’s calculation of “very low-income” and informs PHAs how to begin implementing the statute. In the future, HUD is expected to issue regulations related to how a PHA determines the monthly subsidy to use in setting rents for over-income families allowed to remain in public housing, as well as guidelines for how PHAs should set policies for addressing over-income families following the two-year grace period.

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