Introduction
The U.S. Department of Housing and Urban Development (HUD) has released Notice H 2013-10, which expands upon the Final Rule for implementing the Housing Opportunity Through Modernization Act (HOTMA). This final rule revises the definition of “family” to also include a single person who:
- Is an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age;
- Has left foster care, or will leave foster care within 90 days, in accordance with a transition plan that complies with the requirements of the Social Security Act; and
- Is homeless or at risk of becoming homeless at age 16 or older.
New Explanations of Foster Adult and Foster Child
Under the new rule, a foster adult is defined as a member of the household (but not a family member) who is 18 years or older and meets the definition of a foster adult under state law. State-level agencies define who is considered a foster adult/child, so the classification may vary from state to state.
A foster child is defined as a member of the household (but not a family member) who meets the definition of a foster child under state law.
Foster adults/children are not considered family members and must not be included in calculations of income for eligibility or rent determination purposes. However, foster adults/children are considered household members and must be included when determining unit size or subsidy standards.
The definition of “dependent” has been revised to explicitly exclude foster adults/children. No dependent deduction is permitted for foster adults/children. Also, income earned by foster household members, payments received for the care of foster members, and expenses incurred related to foster members are not considered to be family income or expenses used in the determination of annual income. However, unreimbursed childcare expenses for foster children under 13 years of age may be deducted from annual income if those expenses are needed to enable a member of the family to work, look for work, or further their education.
When a member of an assisted family is temporarily placed in foster care (as confirmed by the child welfare agency), the member is still counted as a family member in the unit from which they were removed. This means that a foster child or adult could be considered an assisted family member in one household while also being a foster member of another household and receiving consideration in both families’ voucher size and/or unit size.
In essence, beginning in January 2024, foster adults and foster children will be treated the same as live-in aides for purposes of HUD housing and programs that must follow HUD rules in the determination of annual income.