Rural Development Suspends Interim Recertification Requirements for COLA Recipients

On November 10, 2022, the Rural Development Service released an Unnumbered Letter granting a temporary exception to tenant recertification requirements.

On October 13, 2022, the Social Security Administration announced there will be an 8.7% increase in Social Security and Supplemental Security Income (SSI) benefits in 2023. This will increase the average SS payment by more than $140 per month starting in January.

The RD Section 515 program requires that tenant households be recertified at least annually or when household income changes by $100 or more per month.

Since the increase would require recertifications for most Social Security recipients, the Agency is temporarily waiving the recertification requirement for tenants whose household income, regardless of income type, has increased by more than $100 but less than $200. Accordingly, during the Exception period, tenants will not be required to recertify unless their household income changes by $200 or more per month. This temporary waiver will be in place for all of 2023 and will expire on December 31, 2023.

During the period of the waiver, tenant households must be recertified at least annually or whenever a change in household income of $200 or more per month occurs.

The requirement that borrowers must recertify for changes of $50 per month if the tenant requests that such change be made, is still in effect.

Keep in mind, the exception does not waive the requirement for the annual renewal certifications.

Owners will receive a copy of this notice from RD. Once received, the notice must be posted in a conspicuous location at the property and a copy of the notice must be provided to all tenants.

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