U.S. Department of Housing and Urban Development

PUBLIC AND INDIAN HOUSING

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Special Attention of: Notice PIH 95-43 (HA)

State/Area Coordinators;

Public Housing Directors; Issued: June 26, 1995

Administrators, Offices of Expires: June 30, 1996

Native American Programs;
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Housing Authorities; Cross References:

Resident Management Corporations;

Resident Councils

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Subject: Extension of Notice PIH 92-48 (PHA), Exclusion of Income
Received under Training

Programs

This Notice extends Notice PIH 92-48 (PHA), dated October 16, 1992,
which expired October 31, 1993, until June 30, 1996.

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Assistant Secretary for Public

and Indian Housing

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PHO: Distribution: W-3-1,W-2(H),R-3-1(PIH),R-6,R-7,R-9,138-2,138-7,RMC-2

Previous Editions Are Obsolete HUD 21B (3-80)

GPO 871 902

U.S. Department of Housing and Urban Development

PUBLIC AND INDIAN HOUSING

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Special Attention of: Regional Notice PIH 92-48 (PHA)

Administrators; Directors,

Offices of Regional Public

Housing; Field Office Managers; Issued: October 16, 1992

Directors, Public Housing Expires: October 31, 1993

Divisions; Directors, Offices
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of Indian Programs; Public Cross References:

Housing Agencies; Indian

Housing Authorities; Resident

Management Corporations;

Resident Councils

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Subject: EXCLUSION OF INCOME RECEIVED UNDER TRAINING PROGRAMS

This Notice summarizes current Department of Housing and

Urban Development (HUD) requirements on the treatment of

amounts received under various training programs for

purposes of determining Annual Income in the Public Housing

Program, the Indian Housing Program, the Section 8 Rental

Certificate and Rental Voucher Program and the Section 8

Moderate Rehabilitation Program. Similar provisions apply

in programs under the jurisdiction of the Assistant

Secretary for Housing/Federal Housing Commissioner.

1\) Educational Scholarships

o Scholarships funded under Title IV of the Higher

Education Act of 1965

o Other scholarships

The portion of an educational scholarship made

available to cover the costs of tuition, fees, books,

equipment, materials, supplies, transportation and the

miscellaneous personal expenses of a student at an

educational institution (including vocational and

technical training centers) is excluded from Annual

Income. However, the portion of an educational

scholarship made available to meet the costs of general

living expenses, such as room and board, must be

counted as income.

If educational scholarships are not designated for

specific expenditures, it is at the discretion of the

Public Housing Agency/Indian Housing Authority (HA) to

determine what portion of the scholarship is applicable

to general living expenses. In these cases, an HA may

decide to count only the amount remaining after the

costs of tuition, fees, etc., have been met.

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PHO : Distribution: W-3-1, W-2(H), R-1, R-2, R-3-1(PIH), R-6, R-6-1,
R-6-2,

R-7, R-7-1, R-7-2, R-9, R-9-1, 138-2, 138-7, RMC-2

Previous Editions Are Obsolete HUD 21B (3-80)

GPO 871 902

An educational scholarship is defined broadly to include various

educational entitlements, grants, Veterans\' Educational benefits,

work-study programs and financial aid packages. Student loans

are not considered income (even if part of the loan is being used

for general living expenses) because they must be repaid.

References: 24 CFR 813.106(c)(6)

24 CFR 813.106(c)(10)

24 CFR 905.102 Definition of Annual Income

24 CFR 913.106(c)(6)

24 CFR 913.106(c)(10)

Federal Register Notice, Federally

Mandated Exclusions From Income, 55 FR

29905, July 23, 1990.

2\) HUD-funded training Programs

Amounts received under HUD-funded training programs, such as

stipends, wages, transportation payments and child care vouchers

received pursuant to the training program, are excluded from

Annual Income for purposes of calculating rent. Income received

as compensation for employment is excluded only if the employment

is a component of a training program. For example, wages earned

by residents enrolled in HUD\'s \"Step Up\" apprenticeship program

for work performed pursuant to the program would qualify under

this exclusion.

Amounts excluded by this provision may include, but are not

limited to, compensation received during the following

activities: on-the-job training, apprenticeship programs and

third-party employment. These activities are distinguished from

ordinary employment in the following ways:

o the activities occur under a training program that has

clearly defined goals and objectives;

o the training program is for a predetermined, limited

time-period.

Only amounts received incident to the training program are

excluded, and these amounts are excluded only for the duration of

the training program. Any additional compensation received

during this period (eg: welfare benefits) would not be excluded

from income.

Amounts received from programs which receive any type of HUD

funding, including HA operating funds, development funds and

modernization funds; Community Development Block Grant funds, and

Community Development Block Grant Technical Assistance funds are

eligible for this exclusion. A program may use both HUD funds

and non-HUD funds, as long as the HUD funding is a material

portion of the total funding designated for the training program.

An HA seeking further guidance on whether or not compensation

received under a specific training program qualifies for this

exclusion should contact its local HUD office for assistance.

References: 24 CFR 813.106(c)(8)(i)

24 CFR 905.102 Definition of Annual Income

24 CFR 913.106(c)(8)(i)

3\) Payments received under the Job Training Partnership Act

All payments received under programs funded in whole or part

under the Job Training Partnership Act are excluded from Annual

Income.

References: 24 CFR 813.106(c)(10)

24 CFR 905.102 Definition of Annual

Income

24 CFR 913.106(c)(10)

Federal Register Notice, Federally

Mandated Exclusions From Income, 55 FR

29905, July 23, 1990.

4\) Payments to participants in publicly assisted programs

Amounts received by a participant in other publicly assisted

programs which are compensation for, or in reimbursement of, out

of pocket expenses, are excluded from Annual Income. Examples of

such expenses include child care, clothing and transportation.

Payments must either be designated in advance to cover specific

expenses or paid out to a participant as a reimbursement after

the expenses have been incurred to qualify under this exclusion.

References: 24 CFR 813.106(c)(8)(iii)

24 CFR 905.102 Definition of Annual

Income

24 CFR 913.106(c)(8)(iii)

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Assistant Secretary for Public

and Indian Housing