Children For Whom Custody is Being Sought – To Count or Not to Count

Children for Whom Custody is Being Obtained – To Count or Not to Count

 

When determining income eligibility for Section 8 or Low-Income Housing Tax Credit (LIHTC) properties, HUD Section 8 rules must be followed. The basic HUD guidance in this area is contained in HUD Handbook 4350.3, Chg.4. Since qualifying income limits are based on the number of persons in the household, an understanding of who can and cannot be counted for income limit purposes is critical. Unfortunately, there are differences in who may be counted for occupancy purposes (i.e., the number of bedrooms) and who may be counted for income eligibility. One of those differences involves children for whom custody is being obtained.

 

When determining family size for income limits, live-in aides and guests must not be counted. However, some individuals not residing in the unit must be counted, including (1) children temporarily absent due to placement in a foster home; (2) children in joint custody arrangements who are present in the household 50% or more of the time; (3) children who are away at school but who live with the family during school recesses (do not count if the student has entered into their own lease for an apartment); (4) unborn children of pregnant women; (5) children who are in the process of being adopted; (6) temporarily absent family members who are still considered family members (e.g., a family member working on assignment in another state); (7) Family members in the hospital or rehabilitation facility for periods of limited or fixed duration; and (8) persons permanently confined to a hospital or nursing home, if the family member chooses to count them.

 

When determining family size for the size of the unit (i.e., number of bedrooms), all of the above must be counted, as well as live-in aides and children whose custody is being obtained by an adult family member, even though the child is not yet in the unit. However, neither of these categories is counted for income eligibility purposes.

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