Question from a Blog Reader
"I have heard that the HUD Handbook 4350.3 Exhibit 5-1 is out-of-date. Is this true? My state tax credit agency requires me to use this list. If the one in the Handbook is not accurate, where can I get an updated list?"
What you heard was correct. Exhibit 5-1 is an exact reproduction from the regulations, and lists what is legally counted and not counted as income for HUD housing programs. This Exhibit has not been updated for regulatory changes that were published in 2014 and 2016, which happened since the Handbook's 2013 Change 4 release. There are several new exclusions on the list and some obsolete exclusions have been removed (such as the extinct JTPA program). There is also clarification on student financial assistance income. Those regulations also legally apply to tax credit, tax exempt bond, Rural Development, HOME and national Housing Trust programs. As such, it is important that we have up-to-date information. To provide a current list, HUD-CPD has released a version based on the new regulation for use by the HOME program. This document is a nice replacement to Exhibit 5-1 until the it is updated. As a service to our readers, we have made this updated list available HERE. Enjoy!