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Guide for Completing Form 8823 - page 49 / 197





49 / 197

Public Assistance

Recurring Gifts, Grants and Contributions

Amounts specified for shelter and utilities should be separately stated. They may be excluded from income. Special computations are needed; consult the HUD Handbook 4350.3 for details.

*Example 1: Utility Allowance is Greater than Tenant’s Portion of Rent

Under HUD’s section 8 program, the portion of the rent paid by the household is calculated as a percentage of the household’s monthly income and subtracting a utility allowance if the household pays utilities, In some cases, the utility allowance will be greater than the household’s portion of the rent and the households will receive a utility reimbursement to assist in meeting utility costs. The reimbursement is not included in income.*

Payments, rebates or credits received under the Federal Low-Income Home Energy Assistance Program are excluded from income. Also exclude any winter differentials given to the elderly.

Special calculations of public assistance income are required for as-paid state, county or local public assistance programs. Consult the HUD Handbook for detailed instructions.

Regular, recurring monetary and nonmonetary gifts or contributions to residents from persons not living in the unit must be included in income. This can include the payments of bills on behalf of a resident. For example, if a parent or family member will be paying a resident’s utility bill each month directly to the utility company, those payments are still counted as income for the tenant. However, the value of groceries provided by someone outside the household, and the food portion of public assistance, even if provided routinely, is not included.

Example 1: Use of Vehicle

A tenant uses her ex-husband’s car to transport their son to medical examinations conducted on a regular basis. The title to the car is in the ex- husband’s name, he makes the car payment, and he is responsible for maintenance.

The use of the car should not be considered a regular non-cash contribution to the household unless the tenant has exclusive use of the vehicle.

Grants received specifically for medical expenses, set aside for use under a Plan to Attain Self Sufficiency (PASS) and excluded for purposes of Supplemental Social Security (SSI) eligibility, or for out-of pocket expenses for participation in publicly assisted programs (expenses include the costs for special equipment, clothing, transportation, child care, etc.) are excluded.

Generally, *“amounts” paid directly to a childcare provider by persons not living in the unit for a tenant’s childcare are not included in income. This exclusion is based on a handbook interpretation of reimbursed childcare expenses under the definition of Adjusted Income and it’s bearing on Annual Income. See 24 CFR Parts 813.1, 215.1, and 236.1. In relevant part, the regulations define childcare expenses to include “amounts to be paid by the family for [child care]…to the extent [they are] not reimbursed.” Handbook 4350.3 indicates that childcare expenses that are not reimbursed are not


Revised October 2009

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