Change 3 Is Out!!

HUD today announced the release of Change 3 to HUD Handbook 4350.3, Rev. 1.  The change is dated June 23rd and will be effective on August 1st.

Change 3 consists of many clarifications throughout all chapters of the handbook, and a complete revision of Chapter 9 on Billing and Special Claims.

NCHM will, of course, be updating our COS program to reflect Change 3.  Please also "stay tuned" to this blog and our website: www.nchm.org for additional information and training offerings tied to Change 3.

Comments

[Juan]

How do you know when it is a guideline vs a regulation? [The California Tax Credit allocation committee states that a lower anticipated income amount can be used if a third party has verified that an applicant's hours will be cut, or overtime is eliminated]. I am concerned about temporary and sporadic overtime and bonuses in the past being used to determine current and anticipated income when they are not current and anticipated and the employer has said in writing that no bonuses or overtime is anticipated. If such regulations are open to discretion, then they are open to abuse and discrimination. HUD handbook 4350 states p. 5-3 "If information is available on changes expected to occur during the year, use that information to determine the total anticipated income....". Page 5-11 states "temporary, nonrecurring, or sporadic income (including gifts) is not counted". I think overtime and bonuses not occurring on a periodic basis should be excluded from the income calculation. I am not a lawyer but just reading the manual. Thanks.

[Mark S. Alper]

Thanks for your comment, Juan.

The short answer to your question on "guideline vs. regulation" is that the HUD regulations are found in Title 24 of the Code of Federal Regulations (24 CFR).

Handbooks, Notices and things of this nature are generally considered "guidelines" although these terms are not mutually exclusive; Handbooks and Notices can and often do include reference to regulation.

With regard to your question about income, the HUD regulation on annual income is found at 24 CFR Part 5.609. I've never formally compared how this measures up to HUD Handbook 4350.3, Rev. 1 but it wouldn't surprise me if there are both commonalities and differences.