Section 8 Settlement

[itallfallsdown]

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

My mother received a personal injury settlement of 100k but is under section 8, receiving less than 25-30k a year. Under 24 CFR 5.609 - Annual income, I believe it should not affect her but I am not sure. Can someone give me advice? She is in her 40s and is currently working. Thank you.

 

[COlandlord]

Under HUD guidelines, lump sum additions to assets, including insurance payments under personal/accident/settlements are excluded from income caculations.

 

[itallfallsdown]

Under HUD guidelines, lump sum additions to assets, including insurance payments under personal/accident/settlements are excluded from income caculations.

Will it still need to be reported to section 8? I know it does not need to be reported to the IRS. I appreciate your response as well, thank you.

 

[COlandlord]

Will it still need to be reported to section 8? I know it does not need to be reported to the IRS. I appreciate your response as well, thank you.

Yes, she is required to report to section 8 any assets (cash or cash value) over $5,000 and "some" income will be generated from that. Asset over $5,000 will be inputed income at .06 percent and added to her household income. This amount, on $100,000 is minimal and won't affect her rent portion much, if at all.

 

[FarmerJ]

At the same time this could be a wonderful chance for her to find a home she can buy or if she could handle it a two unit ( duplex ) if one can be found with that much money ( as in a foreclosure) as a way to have a income off of the property and let her be in a different type of housing if she has not been happy with where she has been living)

 

[itallfallsdown]

So it is not necessarily excluded. It is however just taken into account at a small percentage that should not count against her greatly. Ok thank you again.