HUD Notice on Revised Independent Student Rules, September 21, 2016

HUD published a Notice in the September 21, 2016 Federal Register, effective immediately, revising the rules regarding eligibility of independent students for Section 8 housing.   Background   The final rule establishing eligibility of students for Section 8 assistance was published on December 30, 2005, and updated on April 10, 2006. The rule required that a student at an Institution of Higher Education meet certain requirements in order to be eligible for Section 8 rental assistance. In order to be eligible, the student had to either be independent of their parents for at least one year, or be an "independent student" as defined by the United States Department of Education (ED). An "independent student" was one who met any one of the following requirements:

• Age 24 or older;
• A veteran of the U.S. military;
• Married; or
• Have a child or children who are dependents for IRS purposes.

If a student did not meet one of these requirements, he or she could still be deemed eligible if they:

• Are of legal contract age under state law;
• Established a household separate from their parents or guardians for at least one year prior to applying at the property;
• Were not claimed as dependents on a federal tax return by their parents; and
• Obtain a certification of financial assistance (even if none is provided) from their parents.

  If the student could not meet either of these tests, they could still qualify if their parent(s) would qualify for Section 8 assistance in the locality where the parents lived.   The purpose of this Notice is to update the definition of an "independent student."   The Changes   In 2007, the ED amended the definition of "independent student" by adding additional provisions:

• It expanded orphans or wards of the court to include orphans, children in foster care, or who were wards of the court at any time from age 13 on;
• Added students who are or were emancipated or in legal guardianship immediately prior to turning 18; and
• Unaccompanied youths who are homeless or at risk of homelessness.

  HUD is now conforming its definition of "independent student" with that of the ED. The revised definition of an "independent student" is an individual who:

• Is age 24 or older by December 31 of the award year;
• Is an orphan, in Foster Care, or a Ward of the Court, or was an orphan, in Foster Care, or a Ward of the Court at any time from age 13;
• Immediately prior to the age of majority, was an emancipated minor or in legal guardianship as determined by a court;
• Is a veteran of the United States military or on active duty for other than training (i.e., not Guard or Reserve);
• Is a graduate or professional student;
• Is married;
• Has legal dependents other than a spouse; or
• Was verified during the school year as either an unaccompanied youth who is homeless or at risk of homelessness and is self-supporting.
  • This must be verified by
    • A local educational agency’s homeless liaison;
    • The director (or designee) or a program funded under the Runaway & Homeless Youth Act;
    • The director of a program funded under Subtitle B of Title IV of the McKinney-Vento Homeless Assistance Act; or
    • A financial aid administrator

  Requirements for verifying a student’s independence from his or her parents have also been amended. Many of these youth are not connected to their parents or caregivers, so HUD is clarifying that the tax return requirement only applies to the student’s tax returns.   Students who are orphans, in Foster Care, wards of the court from age 18, emancipated or under legal guardianship, homeless or at risk of homelessness are considered "vulnerable youth." In this case, they are automatically considered an "independent student."   When determining a student’s independence from parents, all of the following are required:

1. Review and verification of previous address information in order to confirm a separate household;
2. Review of student’s prior year tax returns to verify independence; and
3. A written certification of support or nonsupport from the parent(s).

If any of these three requirements are not met, proof of the parents’ eligibility for Section 8 assistance is required.   This Notice focuses on students under age 24 who are not residing with their parents and who are seeking individual assistance.