Amendment to the HUD Definition of Tuition, Notice H 2015-12
HUD published Notice H 2015-12 on November 18, 2015, amending the definition of tuition as it relates to both HUD Multifamily Housing programs and Public and Indian Housing (PIH) programs. The new guidance also applies to the Low-Income Housing Tax Credit (LIHTC) Program since that program follows HUD Section 8 rules in the determination of tenant income. The stated reason for the change is to promote consistency across HUD’s programs by providing a standard definition of tuition and fees. The Notice is effective immediately.
Background
Many institutions of higher education have moved from a traditional tuition-only structure to a tuition and fee structure. Fees often include, but are not limited to, student service fees, student association fees, student activities fees, and laboratory fees. HUD believes the inclusion of many of these required fees within the definition of tuition will increase opportunities for its participants to further their education.
The definitional change was brought about by the language contained in Section 215(b) of the Fiscal Year 2012 appropriations legislation, which requires that the amount of any financial assistance an individual receives in excess of amounts received for tuition and “other required fees and charges” be considered when determining an applicant’s or participant’s annual income. This same section of the law states that when a person receives Section 8 assistance, any financial assistance (in excess of amounts received for tuition and other required fees and charges) that an individual receives under the Higher Education Act of 1965, from private sources, or an institution of higher education, shall be considered income to that individual, except for a person over the age of 23 with dependent children.
Applicability
All provisions of the Notice apply to Project-Based Section 8 and the Section 8 Housing Choice Voucher (including Project-Based Vouchers and Project-Based Certificates).
In programs, other than HUD’s Section 8 program, that follow the definition of annual income in 24 CFR Part 5 (e.g., Public Housing and LIHTC), the full amount of student financial assistance is excluded from a person’s annual income (see 24 CFR §5.609(c)(6)).
The Amended Definition
The Department of Education (DOE) defines tuition as the amount of money charged to students for instructional services that may be charged per term, per course, or per credit. The DOE further defines tuition and fees as the amount of tuition and required fees covering a full academic year most frequently charged to students. Examples of required fees include, but are not limited to, writing and science lab fees and fees specific to the student’s major or program (e.g., nursing program).
Expenses relating to attending an institution of higher learning must not be included as tuition. Examples of these expenses include room and board, books, supplies, meal plans, transportation and parking, student health insurance plans, and other non-fixed sum charges.
Income Determination
For Section 8 programs only, the amount of financial assistance received in excess of tuition and other required fees must be included as income (except as noted above). For all other programs, the full amount of educational assistance is exempted from income.
Verification of Tuition & Fees
The amount of tuition and fees charged by the school must be verified when determining annual income for Section 8 purposes. Accepted verification methods include:
- Student’s bill or account statement as provided by the school’s bursar’s office; or
- Direct contact with the bursar’s office.
Owners are also encouraged to the school’s website since many provide an itemized list covering tuition and fees.