Unemployment Benefits & Child Tax Credit

The 2021 Consolidated Appropriations Act (2021 Appropriations) and the American Rescue Plan of 2021 (ARP) amended three provisions to strengthen and extend unemployment benefits in the CARES Act and the ARP provides a monthly payment from the enhanced child tax credit that will begin being distributed to families in July 2021. HUD has determined that the $300/week unemployment benefit and the upcoming monthly child tax credit payment are to be excluded from the annual income calculation.   For properties where the household income affects rents, if a tenant’s income was not calculated in accordance with the guidance below, owners/agents must correct the form-HUD 50059.

This announcement is important, especially for our low-income families who have been hit the hardest by the pandemic.  To promote housing stability, owners/agents can remind residents that the $300/week unemployment benefit and child tax credit are not included in the annual calculation of income, which could be used as a resource to help with unpaid rent.