Q and A: Back Payments of Child Support

Question: I have a question about a resident who has started receiving back child-support payments from her ex-husband. She will be receiving $130/month starting next month, until the balance of $1,900 has been paid. She was owed this child support from before she moved in. Do we count it even though it is less than $200 a month?

Beth-Ohio

Answer: Management is not required to incorporate this new income source into an Interim recertification, because it falls under the $200 per month threshold. Assuming the child support will be received regularly, each month (not sporadic), management will include this income on the upcoming annual. Management should project the income using the remaining balance of payments to be paid to the tenant during the subsequent 12 months.

Mastering accurate income calculations is a crucial skill for housing managers. Scenarios like this challenge our application of HUD’s annual income regulations in the real world. If you would like to explore more complicated scenarios involving student income, fluctuating income, seasonal employment and self-employed tenants, check out our new webinar, “Intermediate Income Calculation Scenarios – Part II”.