HUD
has received several inquiries about the Direct Express Debit Card and how it
will affect income and asset calculations for HUD subsidized properties.
In
order to remain consistent with HUD regulations, benefits received through
direct deposit OR the Direct Express Debit Card will continue to be treated as
income since the payment is a regular periodic payment.
The
balance on the Direct Express Debit Card is considered an asset and will be
verified in a manner consistent with existing savings account verification
requirements. (See RHIIP ListServ 296
issued February 27, 2013).
Note: This is a change from previous instruction
specifying that Direct Express Debit Card balances should be treated like a
checking account using the average of the verified monthly balance over a six
month period to determine the value of the asset.
Specifically,
tenants who receive their benefit on a Direct Express Debit Card will need to
provide an account balance no more than 120 days old at the time of
recertification. (See HUD Handbook
4350.3 Revision 1, Change 3 Appendix 3 and Paragraph 5-17).
A
current balance can be obtained from an ATM, through the online account
service, or a paper statement. The verification document must identify
the account and the account holder.
There
are no fees to check the card's balance
at an ATM or online.
Direct
Express Debit Cards do not provide interest income. If the total
household assets do not exceed $5,000, no income will be derived from this
asset.
If
household assets exceed $5,000, income from assets is the greater of “actual
income from assets” or the current imputed rate of 2%. (See HUD Handbook 4350.3 Revision 1, Change 3,
Paragraph 5-7.)
Note:
For families receiving only BMIR assistance, it is not necessary to determine
whether family assets exceed $5,000. The rule for imputing income from assets
does not apply to the BMIR program.
For more information, visit the SSA website at: http://www.ssa.gov/pubs/10073.html
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