Code of Massachusetts Regulations
760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF
Title 760 CMR 49.00 - Massachusetts Rental Voucher Program
Section 49.05 - Determination of the Voucher Payment

Universal Citation: 760 MA Code of Regs 760.49

Current through Register 1531, September 27, 2024

(1) The administering agency shall establish each participant's net income as defined in 760 CMR 49.05. The amount of a participant's voucher payment shall be established in administrative guidance published by the Department. Appropriate unit size shall be determined on the basis of the size and composition of the participant's household in accordance with the definition in 760 CMR 49.02.

(2) Each MRVP participant holding a mobile or project based voucher shall pay a minimum of 30% of net household income toward rent or such greater or lesser percentage as may be required pursuant to the MRVP budget line item governing program administration in any fiscal year. The Department may, and to the extent required by the then-current MRVP budget line item shall, issue administrative guidance setting a maximum percentage of net household income that may be applied toward rent.

(3) When the amount of the voucher payment for a participant has been determined in accordance with 760 CMR 49.05(1), a voucher payment will be sent each month to the owner of the contract unit in which the participant lives, and the remainder of the contract rent shall be paid to the owner by the participant.

(4) The amount of the voucher payment shall equal the monthly contract rent minus the participant's share of rent calculated in accordance with 760 CMR 49.05(2).

(5) For the purpose of determining the amount of a voucher payment, a participant's net income shall be determined as follows, unless otherwise required by the MRVP budget line item Language governing program administration in any fiscal year:

(a) Gross Income. A participant's gross income means the income from all sources of the head of household and each additional member of the household, which is anticipated to be received during the 12 months following admission or redetermination of household income.

(b) Inclusions in Gross Household Income. Gross household income shall be the total of the following items:
1. One half of the earned income of household member who is the dependent of another household member and who is 18, 19 or 20 years of age shall be included in a participant's gross income.

2. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.

3. Income from the operation of a business or profession by each self-employed household member after deduction for the ordinary and necessary expenses of the business or profession. The deductible expenses of the business or profession shall not exceed 85% of the gross receipts of the business or profession. Deductible expenses of the business or profession shall not include rent or utilities paid for the participant's contract unit if the business or profession is located in the participant's contract unit.

4. Income of any kind from real or personal property including rent, dividends, and interest. Amortization of capital indebtedness and depreciation shall not be deducted in computing net income. Any realization of taxable capital gain on sale or transfer of an investment or other real or personal property shall be included in income. If the household has marketable real or personal property with a fair market value exceeding $5,000.00 (excluding any automobile used as the primary means of transportation by one or more household members), gross household income shall include actual income derived from any such property.

5. Periodic payments received from Social Security, annuities, retirement funds, and pensions, individual retirement accounts, and other similar types of periodic payments of retirement benefits, excluding non-taxable amounts which constitute return of capital and are specifically identified as such by payer.

6. Payments in lieu of earnings, such as unemployment compensation; Supplemental Security Income (SSI); Social Security Disability Income (SSDI); and benefits in lieu of earnings under disability insurance, health and accident insurance or workers' compensation. An unallocated lump sum settlement or similar payment all or partly on account of lost wages resulting from an injury shall be equitably allocated to reflect a monthly payment on account of lost wages for the period during which the recipient is likely to be disabled from the injury and the recipient will be deemed to receive such a monthly payment each month during the continuance of his or her disability until the allocated funds are deemed exhausted. Payments from the government, subsequently reimbursed to the government, are not to be included as income.

7. Regularly recurring contributions or gifts received from non-household members; to be regularly recurring a contribution or gift must occur at least twice a year for two or more years, provided that a contribution or gift in excess of $2,000.00 which occurs once a year from year to year for two or more years shall also be deemed to be regularly recurring.

8. Regular payments of public assistance, excluding Supplemental Nutrition Assistance Program (SNAP).

9. Payments received for the support of a minor, such as payments for child support, foster care, social security, or public assistance, including payments nominally made to a minor for his or her support but controlled for his or her benefit by a household member who is responsible for his or her support.

10. Lottery winnings, gambling winnings and similar receipts.

11. Receipts of principal and income from the trustee of a trust, and receipts of income from the executor or administrator of an estate or from some other fiduciary.

12. Alimony or payment for separate support.

13. Any other source of income not explicitly excluded under 760 CMR 49.05(5)(c).

(c) Exclusions from Gross Household Income. Gross household income shall not include any of the following items:
1. Earned income of a working child younger than 18 years old.

2. Gifts which are not regularly recurring.

3. Amounts (including lump-sums), which are specifically received for the cost of medical care, or which are made to compensate for personal injury or damage to or loss of property under health, accident or liability insurance, workers' compensation, judgments or settlements of claims, insofar as these payments do not compensate for loss of income for a period when the recipient was or would be a participant.

4. Amounts of educational scholarships or stipends for a student at an educational institution, including amounts paid for these purposes to part-time students, whether paid directly to the student or the educational institution, and amounts paid by the United States Government to a veteran for use in paying tuition, fees, or the cost of books, to the extent that such payments are so used.

5. The special pay to a member of the armed forces on account of service in a war zone.

6. Relocation payments made pursuant to state or federal law.

7. Payments received from the Social Security Administration program known as the Plan to Attain Self Sufficiency (PASS), provided that recipient fulfills all PASS program requirements.

8. Benefits received under the Supplemental Nutrition Assistance Program (SNAP).

9. Funds and payments received by participants or volunteers in programs pursuant to AmeriCorps, City Year, the Segal AmeriCorps Education Award, and the Domestic Volunteer Service Act of 1973 or similar programs approved by the Department.

10. The increased amount of income earned from employment by one or more household members if the increase in earned income otherwise would result in a rent increase provided that:
a. The household's income has been derived, at least in part, from Temporary Assistance to Needy Families (TANF), Emergency Assistance to the Elderly, Disabled and Children (EAEDC), SSI, SSDI or successor program for each of the previous 12 months;

b. The household's increased earned income has been accompanied by a decrease in the amount of TANF, EAEDC, SSI, SSDI, or public assistance from a successor program; and

c. At the commencement of this exclusion the recipient of such public assistance would have remained eligible for such assistance if the income had not been earned. This earned income exclusion shall be in effect for one continuous 12 month period, regardless of any changes or gaps in employment during that period. This exclusion may be exercised by the participant when a household member has procured either full or part-time employment. It shall be within the participant's sole discretion whether or not to exercise this one-time income exclusion.

11. Payments for a household member in association with participation in a bona fide program providing training for employment, approved by the Department or sponsored or administered by a government agency.

12. Wages and/or salary earned by a full-time student, as defined in 760 CMR 49.02: Full-time Student.

13. Income of a live-in PCA, who is paid for the fair value of his or her services to a household member with a disability and whose income is not available for the needs of any household member, provided that the PCA shall be required to substantiate that he or she receives wages for the fair value of his or her services and that such income is not available for the needs of any household member.

14. Inheritances and life insurance proceeds. This exclusion does not apply to post-death interest paid on inheritances or insurance proceeds.

15. Total Disability Veterans Compensation. Amounts received from the United States Government by unemployable disabled veterans on account of such disability which occurred in connection with military service.
a. Total Disability veterans Compensation that is in excess of $1,800 per month shall be excluded. No deductions shall be applied against the amounts over $1,800 per month that are excluded.

b. If an AA had, prior to October 6, 2016, exercised its discretion to exclude Total Disability Veterans Compensation in excess of $1,800 per year, such AA may, in its discretion, continue to exclude all of such amounts or it may increase the rent by no more than 10% per year, until it is equal to the rent as calculated with the exclusion required by 760 CMR 49.05(5)(c)15.a. If the AA exercises its discretion to exclude more than the amount required by 760 CMR 49.05(5)(c)15.a., no deductions shall be applied against Total Disability Veterans Compensation.

16. A return of capital on sale or transfer of an investment or of other real or personal property.

17. Wages and/or salary earned by a participant 62 years of age or older, or other household member, 62 years of age or older, not to exceed the total amount which would have been earned by a person working 20 hours per week at the minimum wage specified in M.G.L. c. 151, §1.

(d) Net Income. A participant's net income is gross income less the following deductions up to, but not exceeding, an aggregate amount equal to the participant's net income. In no event shall participant's net income be less than zero:
1. A deduction of 5% of the gross income of a participant household whose head is at least 62 years of age or where the head of household or a household member is disabled.

2. For a participant with a mobile voucher who is responsible for the cost of heat separate from rent, a deduction for heat calculated in accordance with administrative guidance published by the Department.

3. Payments for necessary medical expenses (including co-payment amounts) which are not covered by insurance or otherwise reimbursed, provided that such expenses are in excess of 3% of annual gross household income and are paid by household members. Payments for medical health insurance are considered medical expenses.

4. Payments for the care of child(ren) or of a sick or incapacitated household member provided that the administering agency shall have determined the payments to be necessary for the employment of another household member who would otherwise have provided such care.

5. Child support, separate support, and/or alimony paid under court order or court ordered agreement by a household member for the support of a minor child, spouse, or ex-spouse, not residing with the household.

6. Non-reimbursable payments of tuition and fees of vocationally related post-secondary education of a household member who is not a full-time student.

7. Non-reimbursable payments for reasonable and necessary housekeeping or personal care services for a household member with a disability who as a result of the disability is physically unable to perform the housekeeping or personal care services provided that no household member is reasonably available to perform these services.

8. Travel expense, in excess of the cost of the least expensive available transportation, for a household member with a disability who as a result of the disability is unable to use the least expensive available transportation and who uses the least expensive transportation practical in connection with necessary activities which cannot be performed by another household member.

(6) In no event shall the amount of the voucher payment exceed the contract rent.

(7) Redetermination for Continued Program Participation.

(a) Determination of Voucher Payment on Annual Basis. At least once in every 12 month period, each participant shall provide complete and accurate information about income and composition of the household. The administering agency shall require the participant to provide reliable third party verification of all necessary information. The administering agency may find any household which fails to provide such information ineligible for continued participation. The administering agency shall determine whether the participant's voucher payment and share of rent should be adjusted, whether a participant's contract unit size is still appropriate for participant's needs, and whether the participant is eligible for continued program participation. If the participant's share of the rent is adjusted, the amount of the voucher payment shall be adjusted accordingly.

(b) Changes in Voucher Payment Between Regular Redetermination Dates.
1. When monthly income of the participant household decreases, an increase in the amount of the voucher payment shall be made when requested by the participant. The changed voucher payment will be effective on the next regular payment date following the report to the administering agency and verification of the lower income.

2. Participants shall inform the administering agency of all increases in monthly income of the household of 10% or more, other than due to a change in household composition, within 30 calendar days of such increases. A decrease in the voucher payment resulting from the increased earned income, not due to a change in household composition, shall not take effect until income is again redetermined at the next scheduled annual recertification, unless the increase in income occurs within three calendar months of a reported decrease in participant income that had resulted in a prior increase in the voucher payment.

3. Changes in household size and/or composition must be reported to the administering agency within 30 calendar days of such changes. The addition of any household member other than through birth, adoption or court ordered custody shall be subject to prior approval by the administering agency. At the time that the size of the household is reported, the net income and voucher payment shall be reviewed and revised. If the participant's net income has decreased due to a change in household size or composition, the voucher payment shall be changed effective the first payment date following the report and verification of the change in household size or composition. If the participant's net income has increased due to a change in household size or composition, the voucher payment shall be changed effective on the first payment date of the second month following the report of change in household, unless such change was not reported within the required 30 calendar days.

4. If a participant with a mobile voucher relocates, the participant's continued eligibility, share of rent and appropriate unit size shall be fully redetermined at that time.

5. Voucher payments shall be adjusted whenever necessary to comply with 760 CMR 49.05, other regulations, or applicable law.

6. A participant's failure to report either an increase in household income or a change in household size or composition shall be grounds for termination of the participant from the program if such increase or change, if reported, would have resulted in a decreased voucher payment. In the event that the administering agency does not terminate the participant's participation in the program, the voucher payment shall be adjusted retroactive to the date such change would have taken effect had the household change been properly reported, and the administering agency shall enter into a repayment agreement with the participant for the difference. In determining whether to terminate a participant or enter into a repayment agreement, the administering agency shall act in accordance with any administrative guidance that may be issued by the Department.

7. In the event that a participant files a grievance as to the amount of a redetermined rent share within 14 calendar days of the administering agency's notice of the redetermined rent, the participant shall pay the redetermined rent until disposition of the grievance. Following disposition of the grievance, the administering agency shall pay the owner any amounts paid but determined not to have been due by the participant. In turn, the owner shall reimburse or credit the participant. If the owner fails to so reimburse or credit the participant, the administering agency may suspend the owner's future payments until the owner reimburses or credits the participant. In the absence of a grievance, the redetermined rent shall be paid beginning on its effective date.

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