Q and A – Processing an Interim for an Income Increase of Less Than $200/month

Question: I am a Regional Manager for a large management company. I discovered, during a quality control review, that one of my managers incorrectly processed an interim for a household that reported a monthly increase in income that was less than $200/month. Should I correct this issue or let the certification stand? ~ Shelby –Louisiana

Answer: HUD Handbook 4350.3, Rev-1, Change 4, 7-11 A says owners must process an interim if a tenant reports an increase in a family’s cumulative income of $200 or more a month. Section 7-11B goes on to say that if a tenant reports a change in income that does not increase the household’s cumulative income by $200 or more a month, the owner should not process an interim recertification to increase a tenant’s rent.

Our recommendation is to interpret Section 7-11 B as HUD’s intention for owners to not process the interim. In the spirit of that interpretation, PMCS recommends retroactively correcting the IR to reduce the household’s income back to its prior amount and documenting the file accordingly to indicate the reported change did not meet the $200/month threshold.

Lastly, PMCS recommends using this scenario as a training example for the recertification staff to ensure the same interpretation is consistently and appropriately applied in future situations.