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federalUnited StatesSection 202 Supportive Housing for the Elderly - Capital Advance / PRACrecertification

Interim reexaminations follow 24 CFR 5.657(c): mandatory on an estimated 10% or greater increase in adjusted income, optional below a 10% decrease

s202prac.recertification.interim_reexamination · v1.0.0

Between annual reexaminations the household must comply with 24 CFR 5.657 on interim reporting of changes in income, and any change in income or other circumstances that results in an adjustment to total tenant payment, tenant rent or the project rental assistance payment must be verified. Under 5.657(c) the owner must conduct an interim reexamination when it becomes aware that the household's adjusted income has changed by an amount the owner estimates will produce an increase of ten percent or more in annual adjusted income, except that increases in earned income are disregarded unless the household previously received an interim reduction during the certification period, and except that the owner may decline to conduct an interim reexamination in the last three months of a certification period. The owner may decline an interim reexamination where the estimated decrease in adjusted income is less than ten percent. Where the household reported timely, a rent increase requires 30 days advance notice and takes effect the first of the month after that notice period; where the household did not report timely, the increase is applied retroactively to the first of the month following the change.

The 10 percent interim thresholds, the earned-income disregard and the retroactivity rules are HOTMA section 102 changes carried into 24 CFR 5.657 by 88 FR 9661 (Feb. 14, 2023). HOTMA sections 102 and 104 reach this program: HUD administratively extended section 102 to 202/162, 202/811 PRAC, 811 PRA and SPRAC, and made conforming changes to 24 CFR part 891 at 88 FR 9668-9669 (Feb. 14, 2023). Notice H 2023-10/PIH 2023-27 Rev. 3 section 6.2 makes full compliance mandatory 1 January 2027 and tells contract administrators to issue observations rather than findings on HOTMA-related tenant file errors at MORs before that date.
Confidence
high
Effective from
2023-02-14
Compliance date
2027-01-01
Last reviewed
2026-08-29

Evidence required

  • HUD-50059 Owner's Certification of Compliance(zero_or_more)
  • Third-party employment verification(one_per_income_source)

Citations

All sources verified within 1 day
  • Supportive Housing for the Elderly and Persons with Disabilities
    24 CFR 891.410(g)(2)
    regulationSource ↗verified 1d ago
  • Section 8 and Public Housing - Occupancy Requirements, Income and Family Payment
    24 CFR 5.657(c)(3)
    regulationSource ↗verified 1d ago
  • Section 8 and Public Housing - Occupancy Requirements, Income and Family Payment
    24 CFR 5.657(c)(5)(i)
    regulationSource ↗verified 1d ago