Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 70 million Americans will increase 3.2% in 2024. This is down from the last year, which was the highest it had been in over 40 years. Decreased inflation rates explain the difference.
The 3.2 percent cost-of-living adjustment (COLA) will begin with benefits payable to Social Security beneficiaries in January 2024. Increased payments to SSI beneficiaries will begin on December 31, 2023.
Medicare Information
Information about Medicare premium changes for 2024, when announced, will be available at www.Medicare.gov. It is anticipated to decrease when announced.
Below is an excerpt from the Costello Compliance online on-demand course series, Succeed at Qualifying Households for Affordable Housing. For a catalog of Costello University training courses see HERE.
COLA Calculation Tutorial
Important points:
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Social Security verifications received so far in 2023 will not reflect the 2024 COLA.
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Income certifications that include social security income in 2023 but that had income verified prior to the COLA announcement will need to include the COLA by doing an extra calculation.
Example #1
A social security recipient is anticipated to move into an affordable housing unit on November 1, 2023. In September, it was verified that she had 2023 monthly social security benefit income of $940. The 3.2% COLA was announced on October 12, 2023.
Annual Income Calculation:
Step 1: Calculate 2022 income.
$940 x 2 = $1,880.00 (income for November and December 2023)
Step 2: Calculate the 2024 monthly income with COLA.
$940 x 1.032 = $970.08 (2024 monthly benefit)
(Note: multiplying a number by 1.032 is the mathematical equivalent of adding 3.2%)
Step 3: Calculate total 2024 income.
$970.08 x 10 = $9,700.80 (income for January-October 2024)
Step 4: Add 2023 and 2024 benefit income
$1,880.00 + $9,700.80 = $11,580.80 annual benefit income.
Example #2
A SSI recipient is anticipated to move into an affordable housing unit on January 1, 2024. When his income is being verified, he brings in the benefit letter that he received in October 2023 that informed of the 3.2% COLA for 2024. The monthly SSI benefit listed on the letter is $750.
Annual Income Calculation:
No calculation is necessary, as the COLA is already included in the letter.
HUD Specifics
LIHTC and HOME programs are strictly concerned with determining if a household is income-eligible and the COLA is generally incorporated for new move-ins after it becomes known and verifiable. As rent is based on income in HUD programs, and appropriate notice must be given and forms signed timely, HUD has more detailed rules in this regard that go beyond the above. HUD's instructions say the below.
COLA and HOTMA
HOTMA Implementation Notice B.3
"Effective the day after SSA has announced the COLA, PHAs/MFH Owners are required to factor in the COLA when determining SS and SSI annual income for all annual reexaminations and interim reexaminations of family income that have not yet been completed and will be effective January 1 or later of the upcoming year."
We will publish other HOTMA COLA-related matters as HUD answers some further questions.
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