Can borrowed money count as income in income based housing?

[Rekall]

What is the name of your state? Nevada

Signed lease for discount HUD housing at very low rate - Two months later received a letter stating rent would be going up 5X higher because money being borrowed is now counted as income - My research shows that specifically loaned or borrowed money is exempted as being income under federal law - What can I do?

Also, Nevada law requires 45 day notice for rent increase - They gave me less than 30 days notice
- Is HUD housing exempt from state law?

 

[adjusterjack]

Two months later received a letter stating rent would be going up 5X higher because money being borrowed is now counted as income

Letter from who or what?

Any authority cited for the decision?

My research

What research? Provide a link.

What can I do?

Haven't a clue. Not enough information provided.

Also, Nevada law requires 45 day notice for rent increase - They gave me less than 30 days notice

Who is "they"?

Is HUD housing exempt from state law?

I think so. The Nevada landlord tenant statute does not apply to "Low-rent housing programs operated by public housing authorities and established pursuant to the United States Housing Act of 1937, 42 U.S.C. §§ 1437 et seq.;"

See 118A.180 2(b):

https://law.justia.com/codes/nevada/2017/chapter-118a/statute-118a.180/

 

[Mass_Shyster]

Taking a wild guess here:

Is the "loan" something that you have the ability to repay?

My guess is they believe the money is actually not a loan, but some form of income disguised as a loan.

 

[Rekall]

Taking a wild guess here:

Is the "loan" something that you have the ability to repay?

My guess is they believe the money is actually not a loan, but some form of income disguised as a loan.

Loaned against inherited money - Left by 'will' to person loaning me the money - As it stands if I die soon that person
may come out ahead.

HUD housing managed by Housing Authority does not count resources {supposedly} when it comes to qualifying ]
for low income housing - only income. I have always been honest with them and they were told about the loan
arrangement before I moved in - They accepted it and did not count the money {received monthly} into the calculation
of rent cost, which was very low because of very low social security check - Other benefits such as SSI {supplemental security income} and Medicaid were lost because of inherited money.

The lease signed and approved last year ends at the end of this month and they had me sign another lease with the same low rent several month ahead of time - supposedly to allow time for processing. Get a letter a couple of weeks
ago saying rent would be going up from about 50 dollars to about 5 times the amount - True, this is still cheap by
modern standards - But I still wonder about the legality of what they are doing?

The manager of Apt., while not disputing that it is a loan, says it is the way you are receiving it {I suppose she means
monthly} - Regular payments can be counted as calculable income. The Housing Authority case worker though, says
what you are saying that it is not really a loan ??? - Then why didn't they question it in the first place last year???

The thing that bothers me though, as I did some research into the resources they use to calculate rental costs, and I came up with this:

Attachment B U.S. Census Definition of Income ...........

"The Census Bureau does not count the following receipts as income: (1) capital gains people received (or losses they incur) from the sale of property, including stocks, bonds, a house, or a car (unless the person was engaged in the business of selling such property, in which case the CPS counts the net proceeds as income from self-employment); (2) withdrawals of bank deposits; (3) money borrowed; (4) tax refunds; (5) gifts; and (6) lump-sum payments such as inheritances or insurance payments."

https://www.hud.gov/sites/documents/CALCULATINGATTACHMENT.PDF

Notice that borrowed money is specifically exempt - And even if they counted the money as a gift, that too is
exempt.

The final question might be is weather they are obligated to follow those guidelines, or, as they appear to be
doing to me, change the calculation to suit their needs ???

Thanks for your advice
- Rekall

 

[paddywakk]

Did you sign a loan contract? What are the terms? What is your interest rate? What are the consequences if you don't repay the loan?

They are thinking of money you borrowed from a lending institution, not borrowed from a friend or relative.

 

[Stephen1]

Your 'loan' sounds to me like an advance payment to you against your inheritance. So not a loan; an advance.

 

[Zigner]

Your 'loan' sounds to me like an advance payment to you against your inheritance. So not a loan; an advance.

...an advance on a gift. If gifts are excluded, then shouldn't advances on gifts also be excluded? Same applies to inheritances.

 

[LdiJ]

...an advance on a gift. If gifts are excluded, then shouldn't advances on gifts also be excluded? Same applies to inheritances.

That is a very valid point.

 

[paddywakk]

...an advance on a gift. If gifts are excluded, then shouldn't advances on gifts also be excluded? Same applies to inheritances.

I'm thinking this is a "loan" from a friend or relative who expects to inherit some money at some point in the future, not an advance on money the OP expects to inherit. And the decedent-to-be is free to change his/her mind at any time.

 

[Zigner]

I'm thinking this is a "loan" from a friend or relative who expects to inherit some money at some point in the future, not an advance on money the OP expects to inherit. And the decedent-to-be is free to change his/her mind at any time.

The OP would be better off it were just a gift

 

[LdiJ]

Rekall, as you can see, you have been just vague enough that no one can give you a clear answer to your question or give you clear advice on what should be done. If you want clear advice, remove the vagueness and tell us exactly what is going on.

 

[Rekall]

Rekall, as you can see, you have been just vague enough that no one can give you a clear answer to your question or give you clear advice on what should be done. If you want clear advice, remove the vagueness and tell us exactly what is going on.

I have stated the whole case - 'They' {the HUD Housing Authority} are the ones being 'vague' - Also, and as I think
about it, in dealings with them in the past they might not always tell the truth - They are THE GOVERNMENT and
maybe if you want government housing you have to accept their rules and agendas and costs.

Of course if it wasn't for the greedy real estate entrepreneur {aka 'slum lord'} having bought the property where I had been living for 28 years, I might have lived out the rest of my life where I was.

Almost all public forums warn you not to give out personal information - If you want personal information, and
are an attorney or representative of an attorney, and are willing to give me an initial free consultation, and also
realize there is probably not much money to be made on my case, I'll be more than willing to discuss the case.

You see there are free {pro Bono] attorneys and agencies here in Vegas but because I inherited money I'm
disqualified from their services - Unfortunately I did not inherit a lot of money so I must be frugal.

Also, what I'm thinking is, yes I would save about 2,500.00 dollars a year if I won - But would the bureaucrats
that control the property then get nasty - Look to bother me for whatever reason they could think of and even evict
me under false pretenses?

 

[Zigner]

I have stated the whole case - 'They' {the HUD Housing Authority} are the ones being 'vague' ...

Then follow the appeals process through the agency...or hire an attorney.

Best of luck to you.

 

[LdiJ]

They are suspecting that its really an income to you, but someone else is getting the money for you and then turning around and "loaning" it to you. Your explanation as to how/why it was arranged that way is extremely vague. Its possible that your arrangement could be done in a different way, to avoid the problem. However, until you tell somebody the how/why of your arrangement nobody will be able to give you good advice. You don't have to tell it here, but you might want to tell it to someone at a legal aid clinic or somewhere like that.

 

[Rekall]

They are suspecting that its really an income to you, but someone else is getting the money for you and then turning around and "loaning" it to you. Your explanation as to how/why it was arranged that way is extremely vague. Its possible that your arrangement could be done in a different way, to avoid the problem. However, until you tell somebody the how/why of your arrangement nobody will be able to give you good advice. You don't have to tell it here, but you might want to tell it to someone at a legal aid clinic or somewhere like that.

They know exactly what the arrangement is, have contact information for person {a relative] who is loaning money, etc. And have contacted this relative - In fact I'm getting to worry that they may be jeopardizing the arrangement by annoying someone who may not like being annoyed by them - relative is a successful business person.

My feeling is, since no one is giving me any info on the basic issue of exactly what is, or is not, a loan {also called borrowed money}
- That there isn't any and it is subject to interpretation ???

For example, being a research nut, I did a lot research on this.
The IRS allows you to right off a loan if it is payed back - But if you say borrow 2000 dollars and only pay back 500
- They still count the 1500 left over as income.

The case worker on my case did finally contact relative loaning me money and they verified source
- and were also notified it is as a loan.

Case worker claims that pay-back after death, as it is so arranged, is not a valid criteria for it being a loan
- TRUE or FALSE ???

Or is this a matter of interpretation?

Thanks again for your educated opinion!
- Rekall

PS: As stated, money I inherited disallows me from receiving info from those free legal aid type clinics.