Student Eligibility

New HUD Section 8 Student Restrictions
(Implemented January 30, 2006)

Federal Register Student Revisions:  HUD implemented additional revisions to the Student restrictions on January 30, 2006. 

HUD Notice posted April 10, 2006: HUD issued a Student Notice in order to clarify the changes from the final student rule.

The following households are considered eligible:

1. 24 or older   
2. Veterans   
3. has dependents   
4. Married   
5. Parent's income is notover the "Low" income level (for the area that the parent's live) and the student is income eligible    
6. Meet the U.S. Department of Educations definition of an "Independent Student"   
7. Has maintained a household separate from parents for a full year andNOT claimed on their parents tax returns. 
8. Persons already receiving Section 8 assistance as of November 30, 2005 and are disabled (as defined by HUD).

Refer to the following common questions and answers. 

Students changes include:

• Households comprised of a mixture of "ineligible students" and "eligible students" will not qualify for Section 8 assistance.
• The student's parents (not living in the unit) must be income eligible.  Management should use the Low "L" income limit in the county where the PARENTS LIVE.  (Refer to pages 3 and 5 of the HUD Notice.)  (There is an exception to this rule, if the applicant is not claimed as a dependent on the parent's tax returns and has maintained a separate household for one full year, then the parent's income is not relevant, would not determine eligibility and does not have to be verified.)--See page 5 of the HUD Notice.

Example 1 :  If I was 20 years old and a student, applying for Fairington of Lexington.  My parents lived in Frankfort (Franklin County, Kentucky).  The "L" income level for Franklin County is $34,250.  It was verified that my parent's income was $34,300.  I would be rejected (if the resident did not meet any of the other eligible conditions)because my parent's income is OVER THE HUD INCOME ELIGIBLE LIMIT for the area that the parent's live.

Example 2:  If I was 20 years old and a student, applying for Woodside Park Apartments and I had not lived separate from my parents for a full year and was claimed on my parents tax returns.  My income was HUD eligible and my parent's income was NOT OVER the "Low" income level in the county that they live.  I would be eligible under the new rule.

• Financial aid in excess of tuition is now counted on the HUD Form 50059 as income.  (Students who are over the age of 23 with dependent children are exempt from counting Financial Aid as income.)
• Tenant Selection Plans must be immediately revised to include the above.
• Current ineligible students on a property waiting list must be rejected.
• Student is defined as a "part time" or "full time" student.  (Refer to page 14 of the HUD Notice.)
• The new Student restrictions will apply to "in place" residents.  Our property managers are required to verify if in place students are eligible no later than the next recertification.  If the in-place student household does not meet all the student eligibility requirements during the recertification process, Section 8 subsidy will be terminated.  Management must provide a 30 day notice of the termination.  The Owner can not evict.  The resident will be responsible for paying full rent.

Below are 2 scenarios where the student resident (who is not a veteran, not married, has no dependents, or is not 24 and over) would be considered eligible under the new student rule... 

1. If the student applicant's income is eligible and the parents of the student's income is not OVER the Low income limit for the area the parent's live then they would be eligible under the new student rules.  
2. If they are not claimed on their parent's tax returns as a dependent and have maintained a household separate from their parent for a full year, then they would be eligible under the new student rules.

Student Restrictions (before January 30, 2006) that still apply...

Refer to page 6 of the HUD Notice...

1. The individual MUST be of legal contract age under state law.  (VERIFY ADULT)
2. The individual must have established a household separate from parents or legal guardians for at least one yearprior to application for occupancy or the individual meets the U.S. Department of Education’s definition of an independent student. 
   (VERIFY SEPARATE HOUSEHOLD FOR ONE YEAR OR VERIFY ONE OF THE 6 CONDITIONS LISTED BELOW)
   U.S. Dept. of Education’s Definition of an independent student =
   
   • Be at least 24 years old by December 31 of the award year for which aid is sought.
   • Be an orphan or a ward of the court through the age of 18.
   • Be a veteran of the U.S. Armed Forces.
   • Have legal dependents other than a spouse (for example, dependent children or an elderly dependent parent.
   • Be a graduate or professional student.
   • Be married.

   (IF ONE OF THE 6 CONDITIONS ABOVE APPLY, Management MUST verify the condition from the source.  Example:  Be at least 24 years old (Obtain a birth certificate), Be a veteran of the U.S. Armed Forces (Obtain military documentation) and Be married (Obtain proof of marriage). 

3. The individual must NOT BE CLAIMED AS A DEPENDENT by parents/guardians on their tax returns. 
   (VERIFY NOT A DEPENDENT ON PARENT/GUARDIANS TAX RETURNS)
   
4. The individual MUST obtain certification of the amount of financial assistance that will be provided by parents, guardians or others signed by the individual providing the support.  This certification is required even if NO ASSISTANCE will be provided.  The financial assistance provided by persons not living in the unit is part of annual income that must be verified to determine eligibility and at annual recertification to determine rent. 
   (VERIFY PARENT/GUARDIAN INFORMAL SUPPORT)

Please refer to the HUD Handbook 4350.3, Revision 1, Section 2, Paragraph 3-16, page 3-35 and Section 3, Paragraph 3-33, page 3-67, page 15 of the glossary and the HUD Notice posted April 10, 2006 for further guidance.  I created the Instruction Sheets and verification forms in order to assist our properties with the new regulations.