---
kind: "section"
citation: "24 C.F.R. § 960.507"
title: "24"
number: "960.507"
heading: "Families exceeding the income limit."
url: "https://uscodex.org/cfr/24/960.507"
---

# §960.507. Families exceeding the income limit.

- (a) **In general.** Families participating in the public housing program must not have incomes that exceed the over-income limit, as determined by [paragraph (b)](#b) of this section, for more than 24 consecutive months.
  - (1) This provision applies to all families in the public housing program, including FSS families and all families receiving EID.
    - (i) Mixed families (as defined in [§ 5.504](/cfr/24/5.504.md) of this title) who are non-public housing over-income families pay the alternative non-public housing rent (as defined in [§ 960.102](/cfr/24/960.102.md)), as applicable.
    - (ii) All non-public housing over-income families are precluded from participating in a public housing resident council.
    - (iii) Furthermore, non-public housing over-income families cannot participate in programs that are only for public housing or low-income families.
    - (iv) PHAs cannot provide any Federal assistance, including a utility allowance, to non-public housing over-income families.
  - (2) PHAs must implement the requirements of this section by amending all applicable admission and continued occupancy policies according to the provisions in [24 CFR part 903](/cfr/24/part903.md). All PHAs must have effective over-income policies, consistent with the requirements of this section, no later than June 14, 2023.
- (b) **Determination of over-income limit.** The over-income limit is determined by multiplying the applicable income limit for a very low-income family as defined in [§ 5.603(b)](/cfr/24/5.603.md?p=b) of this title, by a factor of 2.4.
- (c) **Notifying over-income families.**
  - (1) If the PHA determines the family has exceeded the over-income limit pursuant to an income examination, the PHA must provide written notice to the family of the over-income determination no later than 30 days after the income examination. The notice must state that the family has exceeded the over-income limit and continuing to exceed the over-income limit for a total of 24 consecutive months will result in the PHA following its continued occupancy policy for over-income families in accordance with [paragraph (d)](#d) of this section. Pursuant to [24 CFR part 966](/cfr/24/part966.md), [subpart B](/cfr/24/subpartB.md), the PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA's determination that the family has exceeded the over-income limit.
  - (2) The PHA must conduct an income examination 12 months after the initial over-income determination described in [paragraph (c)(1)](#c-1) of this section, unless the PHA determined the family's income fell below the over-income limit since the initial over-income determination. If the PHA determines the family has exceeded the over-income limit for 12 consecutive months, the PHA must provide written notification of this 12-month over-income determination no later than 30 days after the income examination that led to the 12-month over-income determination. The notice must state that the family has exceeded the over-income limit for 12 consecutive months and continuing to exceed the over-income limit for a total of 24 consecutive months will result in the PHA following its continued occupancy policy for over-income families in accordance with [paragraph (d)](#d) of this section. Additionally, if applicable under PHA policy, the notice must include an estimate (based on current data) of the alternative non-public housing rent for the family's unit. Pursuant to [24 CFR part 966](/cfr/24/part966.md), [subpart B](/cfr/24/subpartB.md), the PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA's determination that the family has exceeded the over-income limit.
  - (3) The PHA must conduct an income examination 24 months after the initial over-income determination described in [paragraph (c)(1)](#c-1) of this section, unless the PHA determined the family's income fell below the over-income limit since the second over-income determination. If the PHA determines the family has exceeded the over-income limit for 24 consecutive months, then the PHA must provide written notification of this 24-month over-income determination no later than 30 days after the income examination that led to the 24-month over-income determination. The notice must state:
    - (i) **That the family has exceeded the over-income limit for 24 consecutive months.**
    - (ii) That the PHA must either terminate the family's tenancy or charge the family the alternative non-public housing rent, in accordance with it continued occupancy policy for over-income families in accordance with [paragraph (d)](#d) of this section.
      - (A) If the PHA determines that under its policy the family's tenancy must be terminated in accordance with [paragraph (d)(2)](#d-2) of this section, then the notice must inform the family of this determination and state the period of time before tenancy termination.
      - (B) If the PHA determines that under its policy the family must be charged the alternative non-public housing rent in accordance with [paragraph (d)(1)](#d-1) of this section, then the notice must inform the family of this determination and state that the family be charged the alternative non-public housing rent in accordance with [paragraph (d)(1)](#d-1) of this section. The PHA must also present the family with a new lease, in accordance with the requirements at [§ 960.509](/cfr/24/960.509.md), and inform the family that the lease must be executed no later than 60 days of the date of the notice or at the next lease renewal, whichever is sooner.
    - (iii) Pursuant to [24 CFR part 966](/cfr/24/part966.md), [subpart B](/cfr/24/subpartB.md), the PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA's determination that the family has exceeded the over-income limit.
  - (4) If, at any time during the consecutive 24-month period following the initial over-income determination described in [paragraph (c)(1)](#c-1) of this section, a PHA determines that the family's income is below the over-income limit, the family is entitled to a new 24 consecutive month period of being over-income and new notices under paragraphs [(c)(1)](#c-1), [(c)(2)](#c-2), and [(c)(3)](#c-3) of this section if the PHA later determines that the family income exceeds the over-income limit.
- (d) **End of the 24 consecutive month grace period.** Once a family has exceeded the over-income limit for 24 consecutive months, the PHA must, as detailed in its admissions and continued occupancy policies—
  - (1) Require the family to execute a new lease consistent with [§ 960.509](/cfr/24/960.509.md) and charge the family the alternative non-public housing rent, as defined in [§ 960.102](/cfr/24/960.102.md), no later than 60-days after the notice is provided pursuant to [paragraph (c)(3)](#c-3) of this section or at the next lease renewal, whichever is sooner; or
  - (2) Terminate the tenancy of the family no more than 6 months after the notification under [paragraph (c)(3)](#c-3) of this section as determined by the PHA's continued occupancy policy. PHAs must continue to charge these families the family's choice of income-based, flat rent, or prorated rent for mixed families during the period before termination. The PHA must give appropriate notice of lease tenancy termination (notice to vacate) in accordance with State and local laws.
- (e) **Status of families.** An over-income family will continue to be a public housing program participant until their tenancy is terminated by the PHA in accordance with [paragraph (d)(2)](#d-2) of this section or the family executes a new non-public housing lease in accordance with [paragraph (d)(1)](#d-1) of this section.
- (f) **Reporting.** Each PHA must submit a report annually to HUD that specifies, as of the end of the year, the number of families residing in public housing with incomes exceeding the over-income limit and the number of families on the waiting lists for admission to public housing projects and provide any other information regarding over-income families requested by HUD. These reports must also be publicly available.

## Notes

### Amendments

[88 FR 9671, Feb. 14, 2023]

### Source

Source: 65 FR 16729, Mar. 29, 2000, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437n, 1437z-3, and 3535(d).

### Source

Source: 40 FR 33446, Aug. 8, 1975, unless otherwise noted. Redesignated at 49 FR 6714, Feb. 23, 1984.

### Amendments

[88 FR 9671, Feb. 14, 2023]