The Social Security Administration has announced a Cost of Living Adjustment (COLA) of 3.6% for 2012.  This will be the first increase in Social Security benefit amounts since 2009.  This is the subject of RHIIP Listserve Notice 263, dated October 20, 2011.

However, CNN reports there will be a “double digit” increase in Medicare premiums.  The RHIIP notice does not get as specific about the Medicare increase, but does state that “for some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.”  The Medicare premium amount is expected to be released sometime in November.

This could create a potential minefield for some Owner/Agents.  HUD has always permitted Owners/Agents the option of including anticipated COLA’s for annual recertifications that are effective in the first few months of the year.  However, without knowing the Medicare premium amount it is not possible to accurately calculate medical expenses and allowances for households whose head, co-head or spouse is either 62 years of age or older, or disabled.

On other matters, I’ve had some interesting issues brought to my attention via NCHM’s eHotline I feel are worth sharing.

EIV.  One owner/agent wrote that their Contract Administrator told them “never to use non-EIV third party verification.”  The old adage of “never say never” applies here.  HUD’s numerous EIV notices have always said that traditional, non-EIV, third party verifications should be obtained when there is no EIV income data, or the tenant disputes the EIV income data.  Suggesting that owner/agents should “never” use non-EIV data is not in compliance with HUD guidance.  If the owner/agent was not running EIV reports as required, or was not using EIV income data appropriately, the Contract Administrator’s comment would be correct in that context.

Service Animals and Pet Rules.  HUD guidelines state that service animals are exempt from an owner/agents pet policies.  Many questions come to me along the following lines: “What about leash laws?”  “What about spaying or neutering?”  “What if the service animal damages the unit by urinating and defecating, and the unit is in a really bad condition as a result?”

While legal counsel should be routinely sought in these type of instances, here are my thoughts on these questions.  Leash laws are matters of municipal or state regulation, not an owner/agents policy.  Reasonable accommodations, including service animals, call for altering or amending the owner/agent’s policies, not state or local law.  Spaying or neutering cannot be imposed as a requirement unless this is specified in state or municipal law or codes.  As an animal lover, I am personally in favor of such a requirement.  However, in this instance my personal feelings don’t matter.  And if a unit reeks of urination and defecation that has not been cleaned (regardless of whether the source is animal or human), there is a standard provision in most leases that the tenant is responsible for maintaining the unit in decent, safe, and sanitary condition.  Action on this issue will accordingly be based on lease provisions, not a pet policy.

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