Shall we talk amongst ourselves?

I just returned home after leading two breakout training sessions at the Iowa Finance Authority's 2010 conference. It was a great experience.

During my session on blended occupancy, one of the statements I made was that HUD extended to social security the provision that alimony and child support garnished from a federal pension is not counted as income for the person paying the garnishment, but it is income for the person receiving it.

A number of housing professionals took issue with that, and when that happens I am always willing to take another look at the issue because I will never claim to be right 100 percent of the time. So this is an issue I am open to having us discuss on this blog.

Here is the pertinent language from HUD Handbook 4350.3, Rev. 1, Paragraph 5-6L5, page 5-15:

"Other state, local government, social security or private pension funds paid directly to an applicant’s/tenant’s former spouse pursuant to the terms of a court decree of divorce, annulment, or legal separation are also not counted as annual income and should be handled in the same manner as 4, above. The decree and copies of statements should be obtained in order to verify the net amount of the pension that should be applied in order to determine eligibility and calculate rent."

Okay...who wants to start the discussion?