Enhanced voucher minimum rent calculation for families whose income increases after a significant decrease

The United States Department of Housing and Urban Development (HUD) has issued guidance regarding enhanced voucher minimum rent calculation for families whose income increases after a significant decrease.  This guidance supersedes PIH Notice 2001-41.

Tenants are eligible for enhanced vouchers when there is prepayment of a mortgage on a HUD-subsidized property, voluntary termination of an insurance contract for a HUD-subsidized property, termination of a project-based Section 8 contract or preservation of affordable housing under the Flexible Subsidy program.  Enhanced vouchers have a higher payment standard and have a minimum rent of at least the amount the family was paying at the time of the eligibility event.

If a family with an enhanced voucher has a decrease in income of at least 15% from the family income on the date of the eligibility event, the rent calculation changes to the percentage of income that the family was paying for rent at the time of the eligibility event.

If the family’s income subsequently increases to an amount where minimum rent established by a percentage of family income is more than the original rent, the family’s enhanced voucher minimum rent will revert to the original minimum rent (that is the minimum rent before the family’s income decreased).

Housing authorities must apply this change at the earlier of the families first regular reexamination following the issuance date of this notice, or an interim reexamination as a result of increase in family income.  This change to the family’s rental share is applied prospectively only.  (PIH Notice 2019-12, May 23, 2019.)