DHAP ECONOMIC HARDSHIP EXCEPTIONS

A family may request that the PHA grant an exception to the incremental rent transition policy on the basis of economic hardship. In order to eligible for a hardship exception, the family must meet the following requirements:

1. The family complied with all case management services requirements and

2. The family must demonstrate that the applicable incremental rent transition amount will exceed 30 percent of the family’s gross monthly income.

The 30 percent threshold only concerns the amount the family is required to pay as the result of the rent transition requirement and does not take into consideration any amount the family pays because the monthly rent exceeds the monthly rent subsidy prior to the application of the incremental rent transition requirement.

Economic Hardship Exception Example:
The table below illustrates the gross Monthly Family Income which would qualify for a hardship exception because the Tenant Portion would be greater than 30 percent of the family’s gross monthly income.

Tenant Portion

Monthly Family Income Must Be Less Than

3/1/2008

$50

$167

4/1/2008

$100

$333

5/1/2008

$150

$500

6/1/2008

$200

$667

7/1/2008

$250

$833

8/1/2008

$300

$1,000

9/1/2008

$350

$1,167

10/1/2008

$400

$1,333

11/1/2008

$450

$1,500

12/1/2008

$500

$1,667

1/1/2009

$550

$1,833

2/1/2009

$600

$2,000

3/1/2009 (Program Ends)

$800

The family must provide any information required by the PHA to determine and verify the hardship exception and any information supplied by the family must be true and complete. The information will be considered in making a determination of whether to grant an exception.

The information required for Proof of Income includes, but is not limited to:

  • • Last 4 consecutive check stubs.
    • If no longer employed, need notarized statement of last day worked or verification from employer or company letterhead stating no longer employed.
    • Current employment printout of benefits, if receiving.
    • Current Social Security/SSI Award Letter.
    • Current AFDC/Food Stamp printout.
    • Notarized letter of family assistance, including amount of support.
    • Child Support printout, if paid through the courts.
    • Notarized letter of Child Support amount, if paid directly from child’s parent
    • Current child care assistance printout, if receiving.
    • If not working, proof of attending school or college for all able-bodied persons in family over 18 years of age.
    • Verification of any other income sources.

If the PHA determines that a hardship exception is warranted, the PHA will essentially freeze the amount of the subsidy reduction at such point that any further increase would result in the subsidy reduction exceeding 30 percent of the family’s gross monthly income. Should the family’s income subsequently increase, the family must report the increase in income and the PHA must determine whether the family still qualifies for a hardship exception and, if the subsidy reduction needs to be adjusted in light of the increase in family income.

If a family requests and is approved for a hardship exception, the family must sign a certification that certifies the family will promptly report any future increase in income to the PHA and that the family understands failure to report an increase in income is grounds for termination from the DHAP. The case manager must review the family’s situation and determine if certain case management services, such as services designed to help increase income or identify non-disaster supported affordable housing options that may be available in the community, must be intensified to assist the family. The PHA expects that all able-bodied adults in the family will either be working, actively looking for work, or enrolled in training or educational classes.

Hardship exceptions must be approved by the 20th day of the month before the month the exception is to take effect. If you think the exception applies to you, be sure to contact your case manager or your local DHAP office early in the month to begin the process in time to meet the monthly deadline.

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