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HUD Considers Rulemaking on Over-Income Households

Wednesday, February 3, 2016 - 8:00AM

The U.S. Department of Housing and Urban Development (HUD) today announced in the Federal Register that it is considering making a rule to address the number of households in public housing whose incomes significantly exceed the income limit for a sustained period after initial admission. Current regulations do not require eviction or termination of tenancy for households whose incomes rise above the limit for initial admission.  In an effort to provide scarce affordable housing resources to those most in need, HUD is considering determining circumstances that would require a public housing agency (PHA) to terminate tenancy or evict an over-income family. Comments on the proposed rulemaking are due March 4. 

HUD’s consideration was prompted by 2015 report findings from HUD’s Office of Inspector General (OIG) that as many as 25,226 families in public housing exceeded HUD’s 2014 eligibility income limits. OIG estimates that HUD will pay $104.4 million in one year for over-income families to live in public housing.  The OIG report also notes HUD estimates that if all over-income families were removed from the public housing program, it would need to request nearly $116.5 million more in public housing operating subsidies annually.

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