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HUD Housing Programs: Tenants’ Rights (The Green Book): 4.5.4 Changes in Household Composition

Recertifications also include changes in family composition, because they may affect both the determination of family annual and adjusted income for purposes of determining rent.632 Changes in family composition at regular recertification may also affect the subsidy paid under the PHA’s subsidy standards for the Voucher program,633 and the appropriate unit size for public housing634 and Project-Based Section 8 programs.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.6.1 Overview

It is not uncommon for a family’s circumstances to change during the year from those that were anticipated at the regular recertification. Children are born or other family members join or depart the household, family members gain or lose employment, wages change and anticipated medical expenses fluctuate.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.3.1 Overview

In order to calculate tenant rent for housing programs using income-based rents, the first step is to determine “annual income.”237 Common issues across programs include whether and how annual income can be projected, and whether certain assistance to the household can be considered as income. A household that is not receiving all of the income anticipated or that has sporadic income can raise special concerns. Additional questions include how to treat the income of absent household members, net family assets and lump-sum awards.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.3.3 Anticipated Income, Including Temporary and Fluctuating Income

The regulations define income to include only anticipated income.277 Anticipated income is projected either by annualizing current income, and providing for interim recertification as needed, or by using available information to calculate annual income based on anticipated changes through the year.278 A PHA or owner can use a family’s income determination made for purposes of other Federal means-tested assistance programs.279

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.3.7 Welfare Sanctions and Imputed Income (Public Housing and Section 8 Tenant-Based Vouchers)

For public housing and Section 8 Tenant-Based Vouchers, federal statute requires that some welfare income that is not actually “received” be imputed as income if the family’s assistance is reduced because of any failure of any family member to comply with the conditions of the assistance requiring participation in an economic self-sufficiency program or work requirements.338 However, a PHA may not refuse a requested rent reduction based on reduced welfare income until it receives specific written notice from the welfare agency verifying tha

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.3.8.1 Overview

Not all amounts of money a family receives are considered “income” for rent calculation purposes, even if they might be income under normal accounting principles. Applicable rules may exclude certain funds received from specific sources from household income used for rent calculation. Additionally, some or all of certain earned income may be excluded for a period of time.

HUD Housing Programs: Tenants’ Rights (The Green Book): 12.6.1 Overview

When HUD-supported project-based units are lost, HUD ordinarily provides tenant-based assistance to replace the public housing or project-based assistance previously provided. In some situations, for example public housing conversions or agency initiated terminations of Project-Based Section 8 contracts, the replacement assistance takes the form of tenant protection Vouchers. These are Housing Choice Vouchers provided to eligible tenants by the PHA, which enable the family to search for, and hopefully lease, alternative affordable housing.

HUD Housing Programs: Tenants’ Rights (The Green Book): 12.6.3 Enhanced Vouchers

If an owner decides to opt-out of the Project-Based Section 8 contract or prepay an unrestricted HUD-subsidized mortgage, most previously assisted or subsidized tenants are eligible to receive Enhanced Vouchers as replacement assistance.656 Congress has also authorized Enhanced Vouchers for certain at-risk unassisted tenants in properties with expiring mortgages or use restrictions.657 These special Vouchers have enhanced payment standards if necessary, as well as a “right to remain” fea

HUD Housing Programs: Tenants’ Rights (The Green Book): 12.8.3 Section 104(d)

In addition to the URA, certain HUD programs are also subject to section 104(d) of the Housing and Community Development Act of 1974.739 Section 104(d) provides relocation assistance to low-income tenants displaced due to the demolition or conversion of affordable housing funded by740 the Community Development Block Grant, Urban Development Action Grant, HOME Investment Partnerships, Neighborhood Stabilization, and Section 108 Loan Assistance programs.

Federal Deception Law: 3.1.2.1 Removal Authority

The CFPB director is appointed by the president of the United States (“the president”) for a term of five years,41 and the Act states that the director may be removed only for cause for inefficiency, neglect of duty, or malfeasance in office.42 On June 29, 2020, the Supreme Court ruled in Seila Law L.L.C. v.

Federal Deception Law: 3.1.2.2 Appointment Authority

On January 4, 2012, President Obama, relying on his recess-appointment power, named Richard Cordray as the CFPB’s initial director. The same day, the president appointed individuals to the National Labor Relations Board (NLRB) also as recess appointments.

Federal Deception Law: 3.1.3 The Scope of This Chapter

The CFPB has extensive rule-writing and enforcement authority concerning consumer financial services. For example, it has authority to issue rules under the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, and other federal consumer credit statutes.

Federal Deception Law: 3.1.4 CFPB Rules Not Covered in This Chapter

The Act transfers to the CFPB authority to issue many other regulations that were previously issued by the Federal Reserve Board, the Department of Housing and Urban Development, or other federal agencies, interpreting what are called the “enumerated statutes.” Rules interpreting enumerated statutes will not be discussed in this chapter, as they are analyzed in other NCLC treatises:

Federal Deception Law: 3.2.1 General

The Consumer Financial Protection Act of 2010 authorizes the CFPB to take action against any entity under its jurisdiction that engages in an unfair, deceptive, or abusive act or practice (UDAAP) in connection with any transaction with a consumer for a consumer financial product or service or the offering of such a product or service.93 The Act also authorizes the CFPB to write rules and issue guidance to prevent unfair, deceptive, or abusive acts or practices in connection with a broad array of consumer financial products and services.

Federal Deception Law: 3.2.2 Deception

The Act does not include a definition of “deception,” but the FTC102 and a large body of decisions have interpreted the deception standard under the Federal Trade Commission Act (FTC Act) and state UDAP statutes.103 (UDAP is a term referring to state statutes that prohibit unfair or deceptive acts and practices. Because the CFPB can also prohibit abusive practices, its authority is termed UDAAP authority.)

Federal Deception Law: 3.2.3 Unfairness

The statutory definition of “unfair” incorporates the definition found in the FTC Act:

(A) the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers; and

(B) such substantial injury is not outweighed by countervailing benefits to consumers or to competition.110

Federal Deception Law: 3.2.4.2 Material Interference with a Consumer’s Understanding

To be abusive, a practice only needs to satisfy one of four tests. The first test is whether the practice materially interferes with a consumer’s ability to understand a term or condition of a consumer financial product or service.

The CFPB has said that:

Material interference may include actions or omissions that obscure, withhold, de-emphasize, render confusing, or hide information relevant to the ability of a consumer to understand terms and conditions.