An income determination off by no more than $30 a month in adjusted income is a de minimis error, but the owner must still correct it and repay an overcharged family

pbra.income_calculation.de_minimis_income_error_and_mandatory_correction · v1.0.0

The owner is not considered out of compliance with the reexamination requirements of 24 CFR 5.657 due solely to de minimis errors in calculating family income, but remains obligated to correct the errors once it becomes aware of them. A de minimis error is one where the owner's determination of family income varies from the correct determination by no more than $30 per month in monthly adjusted income, which is $360 in annual adjusted income, per family. The owner must take any corrective action necessary to credit or repay a family that has been overcharged for rent as a result of a de minimis error; families will NOT be required to repay the owner where the miscalculation resulted in the family being undercharged. The tolerance is a shield against a compliance finding, not a permission to leave the file wrong or to keep the money.

Confidence

high

Effective from

2024-01-01

Compliance date

2027-01-01

Consequence model

agency finding with cure

Last reviewed

2026-09-02