Adjustments for Prior Overpayment of Benefits in Section 8

Determining income in affordable housing can sometimes be a balancing act but when in doubt there are many resources such as the HUD Handbook or even the TRACS Discussion Forum.

Today I have a tenant who has provided us with a letter from SS stating her monthly payment is being “adjusted” due to overpayment from prior year. I told her I can’t change her rent because this is a repayment being deducted from her gross amount. She is arguing semantics in my opinion, but would like input. Would you consider “Adjustment” the same as a “repayment” of funds?

Do I adjust her rent now and then when the dispute is settled, do another adjustment? We are only talking $45 month.

The HUD Occupancy Handbook 4350.3 Change 4, Chapter 5: Determining Income & Calculating Rent, 5-13 states:

If an agency is reducing a family’s benefits to adjust for a prior overpayment (e.g., social security, SSI, TANF, or unemployment benefits), count the amount that is actually provided after the adjustment.

Example – Adjustment for Prior Overpayment of Benefits

Lee Park’s social security payment of $250 per month is being reduced by $25 per month for a period of six months to make up for a prior overpayment. Count his social security income as $225 per month for the next six months and as $250 per month for the remaining six months.

Use your resources wisely and make sure you have everything verified!