The Trainer — November 2013
Avoiding Problems with Live-In Aides; What Not to Include in Household Income
In this month’s feature, we gave you six dos and don’ts to avoid the common problems that arise when household members claim they need live-in aides. If a resident who is elderly or has a disability asks you to allow her to have a live-in aide to provide supportive services essential to her care and well-being, HUD and the Fair Housing Act (FHA) require you to grant the request as a reasonable accommodation. But if you’re not careful, letting live-in aides reside in units at your site can lead to big problems.
In our article on what not to include in household income, we warned you that when certifying and recertifying households, you may come across certain items that look like income, but that HUD doesn’t consider income. It’s important to recognize these items and not mistakenly count them in a household member’s annual income. Otherwise, you’ll improperly inflate the household’s annual income, which could cause you to find an eligible household ineligible. And you’ll risk losing points in your management and occupancy review, and waste valuable time verifying items you shouldn’t have counted as income.
QUIZ
QUESTION #1
If a household member requests a live-in aide, you must not count the aide’s income when certifying or recertifying the household’s income. True or false?
a. True.
b. False.
QUESTION #2
A live-in aide may not be a relative of the disabled resident. True or false?
a. True.
b. False.
QUESTION #3
Because live-in aides aren’t considered household members, you don’t have to screen them using any of the criteria you apply to applicants. True or false?
a. True.
b. False.
QUESTION #4
If a household member gets student financial aid, treat it as income only if the assistance is paid to the household member, and not to the household member’s school. True or false?
a. True.
b. False.
QUESTION #5
A resident who was severely injured in a car accident entered a rehabilitation center. For the past four months, she has gotten long-term care insurance payments of $150 a day. She’s still considered a member of the household because the household chose to have her remain a member. You shouldn’t include the $150 daily payment in the household’s annual income for the next recertification year. True or false?
a. True.
b. False.
QUESTION #6
A retired resident who doesn’t get periodic payments from her 401(k) account withdraws $1,000 from the account to cover dental expenses one month. Should you include this $1,000 withdrawal in her annual income next year?
a. Yes.
b. No.
QUESTION #7
You pay a resident $200 a month to rake and mow the site’s lawn. Should you include this monthly payment in the resident’s annual income for the next recertification year?
a. Yes.
b. No.
QUESTION #8
As a general rule, HUD requires you to include delayed periodic payments in a household member’s annual income, except for delayed payments of which of the following:
a. Welfare benefits.
b. Social Security and SSI disability benefits.
c. Unemployment benefits.
d. All of the above.
ANSWERS & EXPLANATIONS
QUESTION #1
Correct answer: a
True. You mustn’t count a live-in aide’s income when certifying or recertifying a household’s income [HUD Handbook 4350.3, Exhibit 5-1]. That’s because a live-in aide isn’t a household member.
QUESTION #2
Correct answer: b
False. Don’t refuse a live-in aide request just because the aide is related to the household member making the request. Relatives of disabled household members can be live-in aides if they fit the Handbook’s definition and aren’t married to the person in need of the aide’s services [Handbook 4350.3, par. 3-6(E)(3)(a)(3)].
QUESTION #3
Correct answer: b
False. Before allowing an aide to move into a unit, you must screen the aide for illegal drug use and other criminal activity including a state lifetime sex offender registration check [Handbook par. 4-7(B)(5) and 7-11(C)(1)]. You may also apply additional owner-established screening criteria used for applicants, except for the criteria to pay rent on time.
QUESTION #4
Correct answer: b
False. If a household member gets student financial assistance (such as a grant, scholarship, educational entitlement, work-study program, or financial aid package), don’t treat it as income. That’s the rule regardless of whether the student financial assistance is paid to the household member or to the household member’s school [Handbook 4350.3, par. 5-6(E) and Exhibit 5-1, Income Exclusions (6)].
QUESTION #5
Correct answer: a
True. If a household member is getting long-term care insurance payments, don’t count payments that are less than $180 a day in the household member’s annual income. But do count payments that exceed $180 per day, or $67,700 a year [Handbook 4350.3, par. 5-6(L)(3)].
QUESTION #6
Correct answer: b
No. Don’t include an occasional withdrawal from a retirement savings account, such as an Individual Retirement Account (IRA) or 401(k), in a household member’s annual income [Handbook 4350.3, par. 5-6(L)(2)].
QUESTION #7
Correct answer: b
No. You may pay some residents a modest amount to perform a service at the site on a part-time basis, such as hall monitoring, mowing the lawn, and so on. HUD calls this a “resident service stipend.” If the stipend is $200 or less per month, don’t include it in the household member’s annual income. But if the stipend is more than $200 per month, include it in the household member’s annual income [Handbook 4350.3, par. 5-6(N) and Exhibit 5-1, Income Exclusions (8)(d)].
QUESTION #8
Correct answer: b
Don’t include in a household member’s annual income any delayed periodic payments of Social Security or Supplemental Security Income (SSI) that are paid in a lump sum [Handbook 4350.3, par. 5-6(Q)(2) and Exhibit 5-1, Income Exclusions (13)].