TO:                Owners/Management Agents 
FROM:          Asset Management, Management & Development Division
SUBJECT:    Student Eligibility for Section 8 Assistance/Streamlining Final Rule
DATE:           October 28, 2016  

HUD has recently released information that will require that Section 8 owners make changes to their Resident Selection Plans/Tenant Selection Plans in order to be in compliance with HUD requirements and regulations.


(1)  Student Eligibility for Section 8 Assistance

On September 21, 2016, HUD released additional guidance relative to the Section 8 Student Rule.  [Docket No. FR-5969-N-01] Eligibility of Independent Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Additional Supplemental Guidance.  Eligibility of Independent Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Additional Supplemental Guidance.

HUD has added two new eligibility criteria to previous criteria relative to students who are enrolled in an institute of higher education.  Students are eligible when the individual is:
  1. Classified as a Vulnerable Youth.
  2. Is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances.

Listed below is the now current list of eligibility criteria for a student for Section 8 Assistance and appropriate for inclusion in your property's Resident Selection Plan/Tenant Selection Plan.

 

Student eligibility is determined at move in/initial certification and at each annual certification.  Student eligibility may also be reviewed at interim certification if student status has changed since the last certification.  All students are required to report any change in their student status.

 

A student who is enrolled as either a part time or full time student at an institute of higher education for the purpose of obtaining a degree, certificate, or other program leading to a recognized educational credential will be eligible for assistance if the student meets all other eligibility requirements, meets screening criteria requirements and: 

  • Is living with his or her parents/guardian or
  • Is at least 24 years old or
  • Is married or
  • Is a veteran of the Armed Forces of the United States or is currently serving on active duty in the Armed Forces for other than training purposes or
  • Has legal dependents other than a spouse or
  • Is a person with disabilities who was receiving Section 8 assistance as of November 20, 2005 or
  • Is a graduate or professional student or
  • Is an independent student, defined as:

a)  The individual is 24 years of age or older by December 31 of the award year;

b)  The individual is an orphan, in foster care, or a ward of the court or was an orphan, in foster care or a ward of the court at any time when the individual was 13 years of age or older;

c)  The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's state of legal residence

  • Or, is classified as a Vulnerable Youth.  A student meets HUD's definition of vulnerable youth when:

i)  The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth (as such terms are defined in Section 725 of the McKinney-Vento Homeless Assistance Act), or as unaccompanied, at risk of homelessness and self-supporting, by

ii)  A local educational agency homeless liaison, designated pursuant to the McKinney-Vento Homeless Assistance Act;

iii)  The director of a program funded under the Runaway and Homeless Youth Act or designee of the director;

iv)  The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director or

v)  A financial aid administrator. 

  • Or, the individual is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances or
  • Has parents who are income eligible for the Section 8 program 

Any financial assistance a student receives under the Higher Education Act of 1965, from private sources, or from an institution of higher education that is in excess of amounts received for tuition and other fees is included in annual income, except:

 

1.  If the student is over the age of 23 with dependent children or

2.  If the student is living with his or her parents who are receiving Section 8 assistance

 

Financial assistance that is provided by persons not living in the unit is not part of annual income if the student meets the Department of Education's definition of "vulnerable youth".

 

These newly added eligibility criteria may also require revision to the Student Status Certification that is used at move in, initial and annual certification.

 

HUD has also amended the Student's Independence Verification Requirements.  Verification requirements to be used when a student does not meet general eligibility criteria but wishes to be eligible based on his or her status as an Independent Student are as follows:

 

Owner/agents providing Section 8 assistance will verify a student's independence from his or her parents to determine that the student's parents' income is not relevant for determining the student's eligibility for assistance by doing all of the following:

  1. Reviewing and verifying previous address information to determine evidence of a separate household or verifying that the student meets the U.S. Department of Education's definition of "independent student";
  2. Reviewing the student's prior year income tax returns to verify that the student is independent or verifying the student meets the U.S. Department of Education's definition of "independent student"; and
  3. Verifying income provided by a parent by requiring a written certification from the individual providing the support.  Certification is also required if the parent is providing no support to the student. 

(2)  Streamlining Final Rule

 

On October 3, 2016 HUD issued Housing Notice H-2016-09 Streamlining Administrative Regulations for Multifamily Housing Programs.

 

The Streamlining Final Rule confirmed the following changes:

  1. Definition of Extremely Low Income.  Please refer to New Hampshire Housing Memorandum of March 16, 2016.
  2. Definition of Tuition.  Please refer to New Hampshire Housing Memorandum of March 16, 2016.
  3. New Exception for Social Security Number Disclosure for Minors at move in or initial certification. 

If you haven't already incorporated the New Exception into your Resident Selection Plan, please incorporate the following language:

 

The Social Security Number requirements do not apply to:

 

A child under the age of 6 years old added to the applicant household within the 6-month period prior to the household's date of admission.  The household will have a maximum of 90 days after the date of admission to provide the Social Security Number and adequate documentation that the Social Security Number is valid.  An additional 90 days may be granted under certain circumstances.  If the household does not provide the Social Security Number and adequate documentation to verify the Social Security Number within the prescribed timeframe, HUD requires that the household's tenancy be terminated.

 

The Notice also outlines how to process a move in certification or initial certification for a minor who does not have a Social Security Number assigned to them.  HUD advises that until TRACS version 2.0.3 is released, that owners/agents should use 999-99-0000 as the Social Security Number for a minor, under the age of 6, who has been added to the household within 6 months of the move in or initial certification and does not have a Social Security Number assigned to them.

 

As always, if you have any questions, please contact the Asset Manager assigned to your property or Marie Poole at mpoole@nhhfa.org.