HUD Amends the Definition of Tuition

On November 18, 2015, HUD published a joint notice under Notice PIH 2015-21: Amendment to the Definition of Tuition The Notice is effective immediately.

In this Notice, HUD formally amends the definition of tuition found in Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance (71 FR 18146, appendix A). The new definition will be used in both Multifamily Housing and Public and Indian Housing (PIH) programs.

Tuition is now defined as the amount of money charged to students for instructional services which may be charged per term, per course, or per credit plus required fees. Examples include, but are not limited to, writing and science lab fees and fees specific to the student’s major or program (i.e., nursing program).

Other expenses related to attending an institution of higher education are not to be included as tuition. These expenses include books, supplies, room and board, meal plans, transportation and parking, student health insurance plans, and other non-course related fees.

While the amended definition of tuition is applicable to all HUD programs, specific program rules governing the calculation of annual income from financial assistance in excess of tuition have not changed. So, what does that mean to Owners?

• Owners must identify if they have any certifications in process for households with students, for which tuition costs must be recalculated using the newly expanded definition.
• Owners must revise applicable verification forms sent to institutions of higher learning so that all applicable tuition, fees, and charges can be appropriately verified.
• Section 8 Owners only – When using the new definition of tuition, the amount of tuition will likely increase, meaning the amount the individual receives in excess of tuition will likely decrease when determining annual income. 24 CFR § 5.609(b)(9)
• Income calculation methodologies for other program types (Public Housing, PRACS, RAP, etc.) will not change, as the full amount of financial assistance a student receives is excluded from annual income. 24 CFR § 5.609(c)(6)