Example – Adjustment for Prior — HUD Handbook 4350.3 REV-1

Lee Park’s social security payment of $250 per month is being reduced by $25 per month for a period of six months to make up for a prior overpayment. Count his social security income as $225 per month for the next six months and as $250 per month for the remaining six months.

K. Public Assistance Income in As-Paid Localities
1. Special calculations of public assistance income are required for “as-paid” state, county, or local public assistance programs. An “as-paid” system is one:
  - a. In which the family receives an amount from a public agency specifically for shelter and utilities; and
  - b. In which the amount is adjusted based upon the actual amount the family pays for shelter and utilities.
2. The public assistance amount specifically designated for rent and utilities is called the “welfare rent.”
3. To determine annual income for public assistance recipients in “as-paid” localities, include the following:
  - a. The amount of the family’s grant for other than shelter and utilities; and
  - b. The maximum amount the welfare department can pay for shelter and utilities for a family of that size (i.e., the welfare rent). This may be different from the amount the family is actually receiving.
4. Each as-paid locality works somewhat differently, and many are subject to court-ordered modifications to the basic policy. Owners should discuss how the rules are applied with the HUD Field Office.

HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent

6/07

5-14

Section 1: Determining Annual Income

4350.3 REV-1