TO:                Owners/Management Agents 
FROM:          Asset Management, Management & Development Division
SUBJECT:    New Financial Assistance to Needy Families Payment                     
                       Standards enacted
DATE:           July 24, 2017
 
On July 1, 2017 a new state law took effect that changed the Payment Standard for Financial Assistance to Needy Families (FANF, formerly TANF). The new Payment Standards now align with 60% of the Federal Poverty Guidelines. Shelter costs ARE NOT USED in determining FANF eligibility or used in calculating the grant amount.

The "as paid" subsidized shelter allowance of $293 is a thing of the past and is no longer applicable to New Hampshire households whose source of income is coded as "T" for FANF (formerly T for TANF). Total Tenant Payment for FANF recipients should be calculated at 30% of adjusted household income retroactive to July 1, 2017.

Please contact your software vendors in order to learn how to remove the auto override to the $293 Shelter Allowance for households whose income is coded as "T". Please third party verify the new grant amounts for households whose income source is FANF and please perform 7/1/2017 Interim Certifications in order for the households to be paying rent calculated at 30% of adjusted gross income.  This will, likely, result in the need to retroactively refund any overpayment of rent/underpayment of subsidy for FANF grant recipients.

Please don't do an Interim and code the pre-July 1, 2017 grant as "G" for general assistance, as this will result in a rent that is lower than the applicable rents when the new Payment Standards are applied. Also HUD collects data from the 50059s to determine the percentage of households that have all income sources and coding a full FANF grant as a "G" for General Assistance will result in data being skewed.

This is the link to the Inter-Department Communication-Division of Family Assistance that announced the new Payment Standards.

As always, please feel free to contact your Asset Manager if you have any questions.