Paper checks are being phased out for all federal benefit payments.
Beginning May 1, 2011, anyone newly applying for Social Security, Veterans benefits or any other federal benefit, will need to choose an electronic payment method – paper checks will no longer be an option. People currently received federal benefits by paper check must switch to direct deposit by March 1, 2013.
Money will either be direct deposited to a bank or credit union account or to a prepaid debit MasterCard.
Managers of affordable housing properties required to verify income for eligibility purposes will begin seeing this method of deposit more often. Verification of federal benefits will still be available by award letter. If money is direct deposited to bank accounts, the accounts will continue to be treated as assets and verified by the banking institution or copies of bank statements. Money deposited to a prepaid debit card should also be treated as an asset, but in this case, it would be considered the same as “cash- on-hand.”