Proposed Changes to the BHA Public Housing Over-Income Policy
February 12, 2019
The Housing Opportunity Through Modernization Act (HOTMA) of 2016 placed an income limitation on public housing tenancies. The over-income requirement states that after a family’s income has exceeded 120 percent of area median income (AMI) for two consecutive years, the Housing Authority must either:
1.) Terminate the family’s tenancy within six months of the determination; or
2.) Charge the family a monthly rent that is the higher of the applicable fair market rent (FMR) or the amount of monthly subsidy for the unit, including amounts from the operating and capital funds, as determined by regulations.
At annual or interim reexamination, if a family’s income exceeds 120 percent of the area median income (AMI) the applicable over-income limit, the BHA will document the family file and begin tracking the family’s over-income status.
If one year after the applicable annual or interim reexamination the family’s income continues to exceed the applicable over-income limit, the BHA will notify the family in writing that their income has exceeded the over-income limit for one year, and that if the family continues to be over-income for 12 consecutive months, the family will be subject to the BHA’s over-income policies.
If two years after the applicable annual or interim reexamination the family’s income continues to exceed the applicable over-income limit, the BHA will charge the family a rent that is the applicable fair market rent (FMR). The BHA will notify the family in writing of their new rent amount. The new rent amount will be effective 30 days after the BHA’s written notice to the family.
If at any time, an over-income family experiences a decrease in income, the family may request an interim redetermination of rent in accordance with BHA policy. If, as a result, the previously over-income family is now below the over-income limit, the family is no longer subject to over-income provisions as of the effective date of the recertification. The BHA will notify the family in writing that over-income policies no longer apply to them. If the family’s income later exceeds the over-income limit again, the family is entitled to a new two-year grace period.
The BHA will not evict or terminate the tenancies of families whose income exceeds the income limit for program eligibility as described at 24 CFR 960.261.
If you have any comments to the proposed Over-Income Policy changes they must be submitted in writing to the Janice Price, Public Housing Property Manager, 1007 N. Summit St. Bloomington, IN 47404 within 30 days of the date of this notice.