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  1. #1
    garymazz is offline Junior Member
    Join Date
    Feb 2010
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    section 8 and a settlement

    What is the name of your state (only U.S. law)? Connecticut

    Good morning, I was wondering if your on section 8 housing, and social security disability (not SSI) and you come into a one lump settlement award from a lawsuit, what happens?

    Do you lose the section 8 and social security disability?

    Or can you keep the section 8 buy using other ways for such a settlement?

    Very confused?????????
  2. #2
    DeenaCA is offline Member
    Join Date
    Jun 2009
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    433
    In the housing choice voucher program ("Section 8"), most lump sums are not counted as income. This rule is at 24 Code of Federal Regulations 5.609(c)(3). Annual income does not include:

    Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses
    Lump sums from delayed processing of periodic payments are counted as income, except for SS/SSI lump sums. Reference: [url=http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=215b2f6c8fbeced405c77406a14bf78a&rgn=div8&view=text&node=24:1.1.1.1.5.6.17.3&idno=24]Electronic Code of Federal Regulations:[/url].

    The treatment of lump sums as assets depends upon whether they're retained in a verifiable form such as a bank account. If so, any interest/dividends would be counted as income. This is from HUD FAQs at [url=http://www.hud.gov/offices/pih/programs/ph/rhiip/faq_gird.cfm#aaifa:]General Income and Rent Determination Frequently Asked Questions (FAQs) - HUD[/url]

    31. Question: Are one-time, lump sum payments (inheritance, lottery winnings, etc.) automatically counted as assets?

    Answer: No. Where the family receives some type of payment as "cash" and then retains this "cash" in some verifiable form-deposited in a checking or savings account, invested in stock or mutual fund, or used to purchase bonds or real estate as an investment-then the "cash" becomes clearly identifiable and recognizable as an "asset." This is consistent with the concept of "Net Family Assets" as outlined in 24 CFR 5.603(b).

    On the other hand, if the family receives some type of cash payment and does not retain the cash in one of these forms, it is nearly impossible to see how a PHA would determine that an asset actually exists. Simply knowing, or even verifying, that the family received a lump sum cash payment of a certain amount does not automatically classify that amount as an "asset." Families receiving lump sum cash payments may use this cash to pay bills, buy items of personal property, or for other purposes that have nothing to do with holding on to the cash as an asset. Where these payments are not retained in some verifiable form, the PHA would have no basis for projecting that the cash will, in fact, be identifiable as an asset for the 12-month period following admission/reexamination effective date.
    "PHA" means the housing authority. I don't know how Social Security treats lump sum receipts.

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