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As of May 2023 HUD has posted new rules about eligibility for HUD housing for seniors (see below). When I retire, my monthly income will just be from Social Security but because I have been a strict saver all my working life, I now have some money in the bank that would disqualify me from a HUD apartment. My monthly income would be very low for the area in which I live but I am being punished for having an emergency cushion of savings.
May 2023
HPD/HDC Marketing: Asset Limits and Property Ownership Policies
Asset Limits
There is a limit to the amount of total assets an applicant household may have and still remain eligible for
affordable housing.
Household assets include financial assets such as savings accounts, checking accounts, trusts,
investment assets (stocks, bonds, etc.), cash savings, miscellaneous investment holdings, etc. (Balances
in specifically designated retirement funds and college savings accounts are not subject to the asset limit,
but are counted when calculating income from assets.)
The entire market value of any interest in real property is subject to the asset limit (e.g. residential,
commercial, land, shares in a co-op, etc.). For other capital investments, only the applicant’s equity in the
investment is subject to the asset limit.
Applicants to Rental Units
The household asset limit for rental units is equal to the maximum income limit for a four (4)-person
household at the area median income (AMI) level for which the unit is designated.
Asset Limits for Rental Units
Effective May 15, 2023
AMI Level Asset Limit
30% $42,360
40% $56,480
50% $70,600
60% $84,720
70% $98,840
80% $112,960
90% $127,080
100% $141,200
115% $162,380
125% $176,500
130% $183,560
165% $232,980
175% $247,100
Applicants to Homeownership Units
The household asset limit for all homeownership units is equal to the HUD maximum income limit for a
four (4)-person household at 175% of the Area Median Income (AMI).
Effective May 15, 2023, the household asset limit for applicants to homeownership units is $247,100.
2 of 2 May 2023
Property Ownership
Applicants to Rental Units
No member of the applicant ‘s household may own residential property, including shares in a co-op, in or
within one hundred (100) miles of New York City limits.
Applicants to Homeownership Units
No member of the applicant’s household may own or have previously purchased, any interest in
residential real property.
For the full policies, see HPD-HDC Marketing Handbook, Section 5-5 B and C. mergency fund of savings.
What were the previous rules for retirees with ongoing low income, but larger savings/assets?
The previous HUD rule was that they count the interest earned on savings as part of your yearly income but they didn't prohibit the total amount of assets you could have in the bank. It seems we are being punished for actually having saved during our working years.
You are not being punished at all.
Every assistance program has parameters. You are fortunate that you have more assets than some, and as such have other options, not just this particular program.
My 90 year old mother does not qualify for a few assistance programs either. Her income, because of a small pension, is over the threshold limits. She does not consider that punishment.
You are not being punished at all.
Every assistance program has parameters. You are fortunate that you have more assets than some, and as such have other options, not just this particular program.
My 90 year old mother does not qualify for a few assistance programs either. Her income, because of a small pension, is over the threshold limits. She does not consider that punishment.
Tell me what my other options might be if my monthly income definitely will not cover market-rate rents?
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Quote:
Originally Posted by Scarlett2
Tell me what my other options might be if my monthly income definitely will not cover market-rate rents?
Um, do what most people do and draw from your assets to increase your monthly income? That's my plan.
Not sure what your goal is, but I assume you're trying to leave an inheritance? My question would be, why should tax payers (example, me) subsidize your housing needs, so that you an leave your nest egg to someone else?
The previous HUD rule was that they count the interest earned on savings as part of your yearly income
but they didn't prohibit the total (but still token) amount of assets you could have...
This is my understanding as well. Most expected that $100grand would end up with Medicare,
The change you describe is outrageous.
The previous HUD rule was that they count the interest earned on savings as part of your yearly income but they didn't prohibit the total amount of assets you could have in the bank. It seems we are being punished for actually having saved during our working years.
Unfortunately, punishment for savings is a general trend in how the society approaches retirement. It is already built into taxation of soc security benefits, and I suspect it might spread further into determination of how much of the promised soc security benefit a retiree can get (eg, it may come to possibly no soc security benefit at all, if the retiree has more than a certain amount in savings).
Um, do what most people do and draw from your assets to increase your monthly income? That's my plan.
Not sure what your goal is, but I assume you're trying to leave an inheritance? My question would be, why should tax payers (example, me) subsidize your housing needs, so that you an leave your nest egg to someone else?
If you follow that logic, you would have to ask why should taxpayers subsidize housing needs of anyone at all.
Saving is something different from an ongoing income. If the housing is designed to help out seniors who do not have ongoing income sufficient to pay a market-rate rent, then the same criteria should be used for any senior seeking that help, ie, a senior should be eligible for the HUD housing based on ongoing income, and required to pay 1/3 of ongoing income in rent - regardless of what people have saved in their working years. Otherwise, what is the point of saving?
If you follow that logic, you would have to ask why should taxpayers subsidize housing needs of anyone at all.
Saving is something different from an ongoing income. If the housing is designed to help out seniors who do not have ongoing income sufficient to pay a market-rate rent, then the same criteria should be used for any senior seeking that help, ie, a senior should be eligible for the HUD housing based on ongoing income, and required to pay 1/3 of ongoing income in rent - regardless of what people have saved in their working years. Otherwise, what is the point of saving?
Thank you,Elnrgby. You seem to be the only person here who understands my situation. Rent should be based ongoing income, not on savings accumulated over the lifetime of working and which provides a modest safety net against severe future possible illnesses.
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