New Definition of Income a Concern for HUD Program Affordability

Proposed language within the Section 8 reform legislation, the Affordable Housing and Self-Sufficiency Improvement Act of 2012 (AHSSIA), includes a new definition of income for eligibility for seniors, raising the standard deduction for seniors from $400 to $525.

At the same time for purposes of rent calculation, the bill raises the threshold for unreimbursed medical expenses as deductible. Currently, unreimbursed medical expenses that exceed 3% of income are deductible for rent calculations. Under AHSSIA, only unreimbursed medical expenses that exceed 10% of income are deductible.

We are concerned that for seniors with very high unreimbursed medical expenses, there will be an unreasonable rent increase.

Your comments are encouraged. Contact jmartin@agingwa.org.