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Guide for Completing Form 8823 - page 51 / 197





51 / 197

  • 1.

    The student is over the age of 23 with dependent children, or

  • 2.

    The student is living with his or her parents who are *applying for or* receiving

Section 8 assistance.*

Financial assistance does not include loan proceeds for the purpose of determining income. 32

Temporary, Nonrecurring, or Sporadic Income

Irregular, nonrecurring monetary gifts or contribution to resident are not included in income.

Alimony or Child Support

Alimony or child support that is court ordered or supported by a written agreement should be included in income unless the recipient certifies that the funds were not received and reasonable efforts have been made to collect the amount due, including filing with courts or agencies responsible for enforcing payments. When no documentation of child support, or alimony stipulated in a divorce decree or separation is available, the owner may require the family to sign a certification stating the amount received. The certification must be notarized. Documentation of the collection efforts made may be requested.

A signed, sworn self-certification by a tenant is sufficient documentation under Treas. Reg. 1.42-5(b)(1)(vii) to show that a tenant is not receiving child support payments and is consistent with the documentation requirements in Rev. Proc. 94-65.33 In addition to specifying that a tenant is not receiving any child support payments, an annual signed, sworn self-certification should indicate whether the tenant will be seeking or expects to receive child support payments within the next 12 months. If the tenant possesses a child support agreement, but is not presently receiving any child support payments, the tenant should include an explanation of this and all supporting documentation; i.e., a divorce decree or court documents. Also, the self-certification should indicate that the tenant will notify the owner of any changes in the status of child support. 34

A state agency monitoring procedure, however, may not permit an owner to rely on a low- income tenant’s signed, sworn statement indicating that the tenant is not receiving child support payments if a reasonable person in the owner’s position would conclude that the tenant’s income is higher than the tenant’s represented annual income. In this case, the owner must obtain other documentation of the low-income tenant’s annual child support payments to satisfy the documentation requirement in Treas. Reg. 1.42-5(b)(1)(viii).

A state agency’s monitoring procedure may require that an owner obtain documentation, other than the statement described above, to support a low-income tenant’s annual certification of child support payments.

Unearned Income of Minor Children

Any unearned income of children under the age of 18 is included in income. This is any income other than employment income; e.g., interest income from bank accounts or

32 33 Page 18146, Federal Register Vol. 71. The signed, sworn self certification under Rev. Proc. 94-65 is equivalent to the notarized certification under HUD Handbook 4350.3, Chapter 5, paragraph 5-6E. See also paragraph 5-13D. See Rev. Rul. 2004-82, Q&A #12, 2004-2 C.B. 350. 34


Revised October 2009

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