HUD PIH Notice § 2015-21

              U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                                           WASHINGTON, DC 20410-8000

                                               Office of Housing
                                      Office of Public and Indian Housing


Special Attention of:                                           NOTICE:          PIH 2015-21
                                                                                 H 2015-12

Multifamily Regional Center Directors                           Issued:          December 10, 2015
Multifamily Hub Directors
Multifamily Program Center Directors
Supervisory Housing Project Managers                            Expires: This notice remains in effect
                                                                until amended, revoked, or superseded.
Rural Housing Service (RHS) Directors
Account Executives
Contract Administrators
Owners, Management Agents Administering                         Cross References: Fiscal Year 2012
  Multifamily Housing Assistance Programs                       Appropriations; Eligibility of Students
Public Housing Agency Directors                                 for Assisted Housing Under Section 8
Section 8 and Public Housing Administrators                     of the U.S. Housing Act of 1937;
HUD Directors of Public Housing                                 Supplementary Guidance (71 FR
PIH Program Center Coordinators                                 18146, appendix A); 24 CFR
                                                                5.609(b)(9); 24 CFR 5.609(c)(6)
Public Housing Division Directors


Subject: Amendment to the Definition of Tuition

    I.   Purpose

         This notice serves to amend the definition of tuition found in the Eligibility of Students
         for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary
         Guidance (71 FR 18146, appendix A) which is used in both Multifamily Housing and
         Public and Indian Housing (PIH) programs. The Supplementary Guidance states that
         “tuition shall have the meaning given this term by the institution of higher education in
         which the student is enrolled1.” To promote consistency across HUD’s programs and
         provide PHAs and O/As with a standard definition of tuition and fees, HUD is aligning
         with the Department of Education’s definition of tuition and fees. With the issuance of
         this notice, tuition will now be defined in the same manner in which the Department of
         Education defines “tuition and fees.” Section IV of this Notice provides details of the
         amended definition.

         This Notice is effective upon publication.


1
  The term “tuition” is defined in the Eligibility of Students for Assisted Housing Under Section 8 of the U.S.
Housing Act of 1937; Supplementary Guidance (71 FR 18146, appendix A). Multifamily Housing programs define
the term tuition in HUD Handbook 4350.3 REV-1.


                                                  Page 1 of 5
 II.   Background

       HUD has become aware of many institutions of higher education moving from a
       traditional tuition-only structure to a new tuition and fee structure. Fees often include,
       but are not limited to, student service fees, student association fees, student activities
       fees, and laboratory fees. HUD believes the inclusion of many of these required fees
       within the definition of tuition will increase opportunities for its participants to further
       their education.

       This position was reinforced with the inclusion of the language (in bold below) of section
       215(b) in the Fiscal Year 2012 appropriations. The FY 2012 appropriations require that
       the amount of any financial assistance an individual receives in excess of amounts
       received for tuition and “other required fees and charges” be considered when
       determining an applicant’s or participant’s annual income. For purposes of section 8
       programs only see section 215 (b) below.

                       SEC. 215. (b) For purposes of determining the
                       eligibility of a person to receive assistance under
                       section 8 of the United States Housing Act of 1937
                       (42 U.S.C. 1437f), any financial assistance (in
                       excess of amounts received for tuition and any
                       other required fees and charges) that an
                       individual receives under the Higher Education Act
                       of 1965 (20 U.S.C. 1001 et seq.), from private
                       sources, or an institution of higher education (as
                       defined under the Higher Education Act of 1965 (20
                       U.S.C. 1002)), shall be considered income to that
                       individual, except for a person over the age of 23
                       with dependent children.

III.   Applicability

       All provisions of this notice apply to owners and management agents (O/As) and public
       housing authorities (PHAs) administering the following covered programs under section
       8 of the United States Housing Act of 1937:

          A. Project-based Section 8
                1. New Construction
                2. State Agency Financed
                3. Substantial Rehabilitation
                4. Section 202/8
                5. Rural Housing Services Section 515/8
                6. Loan Management Set-Aside (LMSA)
                7. Property Disposition Set-Aside (PDSA)
          B. Section 8 Housing Choice Voucher (including Project-Based Voucher and
             Project-Based Certificate)


                                             Page 2 of 5
             C. Moderate Rehabilitation

         In programs, other than HUD’s section 8 programs, that follow the definition of annual
         income in 24 CFR part 5 (e.g. the Public Housing program), PHAs and other grantees
         may continue to exclude the full amount of student financial assistance from a person’s
         annual income in accordance with 24 CFR § 5.609(c)(6).

         The amended definition of tuition in section IV of this notice applies to all HUD
         programs. The income determination (section V) and verification requirements (section
         VI) may also apply to other HUD programs that follow 24 CFR part 5. Administrators
         and participants in those programs should contact the appropriate HUD program office
         overseeing your program if you have questions concerning the implementation of HUD’s
         amended definition of tuition or the income determination and verification requirements
         for your program.

IV.      Amended Definition of Tuition as Defined by the Department of Education

         Prior to this Notice, when determining an applicant’s or participant’s income, HUD’s
         definition of tuition required PHAs and O/As to defer to the definition of tuition used by
         the institution of higher education in which the student is enrolled. The definition can
         vary across institutions and academic programs. With the inclusion of “other required
         fees and charges” being added to the definition of tuition, PHAs and O/As may
         experience difficulty in determining income.

         The Department of Education defines tuition as the amount of money charged to students
         for instructional services which may be charged per term, per course, or per credit. The
         Department of Education further defines tuition and fees as the amount of tuition and
         required fees covering a full academic year most frequently charged to students.2 These
         values represent what a typical student would be charged and may not be the same for all
         students at an institution. If tuition is charged on a per-credit-hour basis, the average full-
         time credit hour load for an entire academic year is used to estimate average tuition.
         Required fees include all fixed sum charges that are required of a large proportion of all
         students. The student who does not pay the charges is an exception.3 Examples of
         required fees include, but are not limited to, writing and science lab fees and fees specific
         to the student’s major or program (i.e., nursing program).

         Expenses related to attending an institution of higher education must not be included as
         tuition. Examples of these expenses include, but are not limited to, room and board,
         books, supplies, meal plans, transportation and parking, student health insurance plans,
         and other non-fixed sum charges.


2
  See, Integrated Postsecondary Education Data System Glossary for definition of “tuition” and “tuition and fees.”
Retrieved February 5, 2013, from http://nces.ed.gov/ipeds/glossary/?charindex=T
3
  Id.



                                                    Page 3 of 5
V.    Income Determination

      In implementing the amended definition of tuition, for section 8 programs only, O/As and
      PHAs must include amounts of financial assistance an individual receives in excess of
      tuition and other required fees and charges when determining annual income in
      accordance with 24 CFR 5.609(b)(9).

      Under other programs, such as the Public Housing program, the full amount of financial
      assistance a student receives while participating in the program continues to be excluded
      from the program participant’s annual income pursuant to 24 CFR § 5.609(c)(6).

      Example:
      Kim, a 22 year old, married, participant in a Section 8 program is enrolled in a nursing
      program at her local community college. She is receiving $7,000 in financial assistance
      to cover the full cost of tuition and fees of $6,000 for the academic year. The $6,000
      includes:

            $2,500 in tuition per semester (total $5,000) plus
            $500 in individual fees (total $1,000)—athletic fee, writing laboratory fee, student
             center fee, science laboratory fee, technology fee—charged to every student per
             semester.

      In this example, the excess $1,000 ($7,000 - $6,000) Kim received in financial assistance
      will be included in her annual income in accordance with 24 CFR 5.609(b)(9).

      Under HUD’s previous definition of tuition, Kim’s housing authority might have
      considered her financial assistance to be in excess of $2,000 if her college’s definition of
      tuition did not include fees. Under HUD’s new definition, Kim’s housing authority will
      determine her excess financial assistance to be $1,000 rather than $2,000 because the
      required fees and charges are included with tuition.

      Using the same example, if Kim was a participant in the Public Housing program, the full
      amount of financial assistance she received would be excluded from her income in
      accordance with 24 CFR § 5.609(c)(6).

VI.   Verification of Tuition and Fees

      O/As and PHAs must verify the amounts of tuition and required fees charged by the
      school when determining annual income. O/As and PHAs may wish to verify those
      amounts using the student’s bill or account statement (including an online account
      statement) as provided by the school’s bursar’s office, or by contacting the bursar’s office
      directly. It is also recommended that you visit the school’s website as many institutions
      of higher education provide an itemized list covering tuition and fees that are charged to a
      majority of their students on their websites.




                                           Page 4 of 5
VII.   Contact Information

       For those administering or participating in programs administered by the Office of
       Multifamily Housing, please contact Michael Sharkey via email,
       Michael.A.Sharkey@hud.gov should you have questions regarding this Notice. For those
       administering or participating in PIH programs, you may contact your local HUD Field
       Office of Public Housing. Persons with hearing or speech impairments may access their
       field office via TTY by calling the Federal Information Relay Service at (800) 877-8339.



                                                                  /s/________________
                                                   Lourdes Castro Ramirez,
                                                   Principal Deputy Assistant Secretary
                                                   for Public and Indian Housing


                                                   ____________/s/__________________
                                                   Edward Golding
                                                   Principal Deputy Assistant Secretary for
                                                   Housing




                                          Page 5 of 5