Sunday, November 17, 2019

Housing Authority - Part 2

It started when the Section 8 tenant reported that he had found a job. The Housing Authority got ready to adjust his monthly housing assistance. Then they wanted to see his checking account statement.

One professional told me that was "problematic". I can only guess what that means. Probably that the Housing Authority had no right to examine his personal checking account statement.

The clerk at the Housing Authority noticed deposits on the statement (his only income at that time was SSA and SSI checks at the beginning of the month). He explained those as being deposits from pawn shop transactions.

What is a pawn shop transaction? It is a "short-term collateralized loan". Generally speaking, a customer takes something of value (TV, computer, cellphone) into a pawn shop, borrows money, puts his property up as collateral, and walks out with cash.

Is there anyone who has passed Third Grade who would think that cash received as loan is Income?

You don't even have to read the HUD Regulations to believe it is not income.

Keep reading here over the next few days to learn how not only did the first-level clerk at the Housing Authority conclude that the loans were "income", but so did her supervisor, a hearing officer, the Housing Authority's executive director, and the Chairman of the Housing Authority's Board of Commissioners (who happens to be a banker!).

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