New Income Exclusions: Update your 4350.3

HUD published “Federally Mandated Exclusions from Income” (Docket No. FR–5635–N–01) in the Federal Register on July 24, 2012.  Be sure to update Exhibit 5-1 (Income Inclusions and Exclusions) in your copy of the 4350.3.  HUD will need to update all the FACT sheets, 4350.3 Chapter 5 paragraph 5-6 R and examples etc.

HUD’s regulations require HUD to periodically publish a Federal Register notice listing the type of income that’s specifically excluded, by any Federal statute, from the 50059 income calculations.  This Notice updates the list of federally mandated exclusions last published on April 20, 2001 (66 FR  20318).   Although the list includes everything (including the items remaining from the last list) we’ve just listed the changes here, along with their official (Roman numeral) paragraph numbers:

These exclusions were added:

1. Assistance from the School Lunch Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771), xviii;
2. Payments from the Seneca Nation Settlement Act of 1990 (25 U.S.C.  1774f), xix;
   1. Payments from any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts, xx;
   2. Compensation received by or on behalf of a veteran for service-connected  disability, death, dependency or indemnity compensation, only under programs authorized under the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4101 et seq.) and administered by the Office of Native American Programs, xxi; and
   3. A lump sum or a periodic payment received by an individual Indian, pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al, xxi.

These exclusions were removed, because they were repealed by Congress:

1. Payments received under programs funded in whole or in part under the Job Training Partnership Act (29 U.S.C.  1552(b)).
2. Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran.

Read a copy of the Notice.