April 20, 2020, Tennessee Housing Development Agency
The U.S. Department of Housing and Urban Development (HUD) recently updated its COVID-19 FAQs for Multifamily Housing providers to clarify the treatment of household stimulus payments for income calculations. The updated FAQs can be found HERE.
Specifically, the FAQs states:
“Household stimulus payments of up to $1,200 (which is technically an advance tax credit) and the temporary $600 per week federal enhancement to unemployment insurance provided by the CARES Act are not to be included in calculations of income. However, HUD notes that regular payments of unemployment insurance (issued by the state) are treated as income, as is customary under program rules.”
Please note that the Internal Revenue Service (IRS) follows HUD guidelines to determine tenant income. Therefore, this HUD guidance is applicable for Low-Income Housing Credit (LIHC) properties as well.