1.5.5 Rent Changes
1.5.5 Rent Changes aetrahan Fri, 12/16/2022 - 11:53A public housing tenant’s income is recertified annually at which time rent is also recalculated. If a tenant’s income changes between annual recertifications, the tenant typically must report this to the PHA within 10 days of the change. At that point an interim recertification may take place. If the change decreases the household income, the reduced rent becomes effective the next calendar month. So, if a decrease is reported in May, the new rent is effective in June. If the change increases household income, the change in rent becomes effective two months later. So, if the increase is reported in May, the new tenant portion is effective in July.
Public housing residents are currently entitled to an earned income disallowance (also known as an earned income disregard) in certain instances where they begin working after a year of functional unemployment. During the first year of having earned income, their income is completely excluded. During the second year, 50% of their earned income is excluded.1
Note that on January 1, 2024, certain changes go into effect pursuant to the Housing Opportunity Through Modernization Act (HOTMA). Under the new rules, PHAs are only required to conduct interim reexaminations if income change will cause the family’s adjusted annual income to increase or decrease by 10%. PHAs may not consider any increase in the earned income of a family between annual reexaminations, except that the PHA may establish a written policy allowing it to consider increases in earned income if the PHA has previously processed an interim reexamination for a decrease.2 Also note that the earned income disallowance described above is being phased out from 2024-2030 under HOTMA. The change will be reflected in the new version of 24 C.F.R. § 960.255 that takes effect January 1, 2024.