Article | Unique Rural Development Provisions #1 | Zero Income Households

This quarterly series discusses unique aspects of the Rural Development 3560 regulations as explained in the Asset Management Handbook, HB-2-3560. The focus is on issues that affect the everyday management of RD multifamily communities.

The RD handbook states the following about zero-income households.

“It is the policy of Rural Development not to accept a tenant certification for an applicant or tenant with zero income unless all income is specifically exempted.”

HB-2-3560 6.9 (A) (4)

The handbook goes on to explain that it is the applicant or tenant’s responsibility to establish how they will meet certain basic expenses such as clothing, diapers, etc. (often through cash or non-cash contributions from persons or agencies outside the household), and management must verify these and use the data to project annual income and determine eligibility and rent. To help the process, the handbook includes Attachment 6-B, which is a worksheet checklist of expenses to discuss with the household. “Specifically exempted” income may include groceries that persons outside the household may contribute, income from resident service stipends, “Green Thumb” or other federally excluded programs. Attachment 6-B helps to identify some of these exemptions. The status of such households must be examined at least quarterly.   

Note: On February 18, 2021, RD temporarily suspended this provision in light of the COVID-19 crisis, when many households were suddenly without any income. Files from this era may not follow the above standards. 

Next | Rural Development and verification lifespans.