In prior columns, as well as my Compliance Close Up Blog, I’ve commented on the need for HUD to give strong consideration to updating the HUD Handbook 4350.3, Rev. 1, as well as the Public Housing Occupancy Guidebook (PHOG), and other handbooks/guidebooks. There have been significant changes, most notably Enterprise Income Verification (EIV) and the Violence Against Women Act (VAWA). The HUD Handbook 4350.3, Rev. 1 has not been updated in a few years, and the PHOG has not been updated at all since it was issued in 2003.
Recently, another potential change was brought to my attention in connection with the Fiscal Year 2012 budget, which will run from October 1, 2011 to September 30, 2012. HUD is apparently considering requiring seniors and persons with disabilities on fixed incomes to be recertified once every three years rather than “at least once annually” as the rules currently requirer–and have for decades.
There is some precedent for this kind of change. Public Housing Authorities (PHAs) are instructed to recertify tenants paying what is called “Flat Rent” every three years. This is in the PHOG. However, PHA residents paying “Flat Rent” can switch to “Income Based Rent,” and this is also in the PHOG.
With respect to the rule under apparent consideration, it has great potential as well as possible dangers. If HUD adopts this rule, and limits it to households receiving SSI/SSDI, it will make perfect sense. It is highly unlikely that benefits will increase much, and certainly virtually never by more than the existing $200 per month or more threshold presently established by HUD. Moreover, Medicaid pays most or all of the medical expenses and it is statistically rare to see a medical expense and medical expense allowance on the certifications of these households.
The same is not true for senior and disabled households receiving regular Social Security benefits, as they often are responsible for Medicare B (and Medicare D) premiums and co-pays for prescriptions and health care providers. And in all the time I’ve been in this business, I can count on my hand the number of times I’ve seen medical expenses decrease for these households.
The proposed change is an interesting one. I hope any implementation of it will include clear guidance from HUD.