Last month, I wrote about some potential concerns I had about Change 4 to HUD Handbook 4350.3, Rev. 1 and foster children. Specifically, I noted that the exclusion of foster children from the dependent allowance–while at the same time counting certain types of their income–seemed to me a policy that treated foster children differently than other minor children. Because of this, I was concerned that there was a possibility that the familial status provisions of the Fair Housing Act could kick in to the detriment of Owners/Agents.
HUD reached out to me with an invitation to discuss the issue in greater detail, and I had a full, open, and fruitful discussion with a senior staff member at HUD headquarters responsible for HUD Handbook 4350.3, Rev. 1.
After providing a deeper explanation of my concerns that extended to matters not referenced in my article due to reasons of confidentiality, it was explained to me that HUD could not include foster children for the dependent allowance since regulations prohibit that allowance for them. Consequently, this would require a change to Title 24 CFR. As careful readers of this column may remember, I have in the past discussed the difficulties involved in reversing regulatory prohibitions.
“Foster children have always been considered to be family members,” the HUD representative told me. “It appears that the Department may have gotten it wrong for many years.” So, in this sense, Change 4 corrects what the administration has regarded as a long-standing program error.
My follow up to that was to say that if foster children and foster adults were now considered to be family members, even though the $480 dependent allowance could not be given, wouldn’t they now be eligible for other allowances such as medical expenses?
Yes, I was told, they would be eligible for such since the medical expense is given to all family members as long as the head of household, co-head or spouse was 62 years of age or older or disabled (HUD Handbook 4350.3, Rev. 1, Paragraph 5-10D). Once software programs have been brought up to date, this should not be an issue.