Settlement FAQs

can i get settlement while on section 8

by Hannah Reichel Published 2 years ago Updated 1 year ago
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Most settlement income is not counted in the Section 8 income calculations. So long as it is for a personal loss (injury or the like) or a property loss, it should not be included, unless it is disability or unemployment money. Attached is the HUD page describing this.

While your settlement amount is probably not taxable as income, you must report it as an asset for Section 8 purposes. You should consult with your attorney about the ramifications this may have on your Section 8 eligibility...Jul 22, 2015

Full Answer

Where do I go to apply for Section 8?

If you're wondering "Where do I go to apply for section 8", start by heading to the Department of Housing and Urban Development's website to find the contact information for your local Public Housing Authority. Each PHA has the following contact information you can use to get in touch and begin the application process:

What is Section 8 housing?

Section 8 is a federal program maintained by the Department of Housing and Urban Development, but it's enforced by local Public Housing Authorities. That means that eligibility can vary slightly from state to state, and even from county to county. However, there are some standard requirements that most programs will share.

Will my settlement affect my Social Security benefits?

Without careful planning, your settlement award may cause you a reduction or even loss of your benefits for a period of time. Your settlement should NOT affect your eligibility for Social Security Disability Income (SSDI) or Medicare because SSDI and Medicare offer benefits based on work history, not income or financial resources.

Will my settlement affect my public assistance benefits?

Many public assistance programs that provide you with monthly income or payments for medical services have strict financial eligibility limits. Without careful planning, your settlement award may cause you a reduction or even loss of your benefits for a period of time.

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1 attorney answer

You will not automatically lose your Section 8 due to the settlement of your personal injury case against your landlord. However, this is a question you are going to have to ask whatever housing authority administers your Section 8 voucher.

Jon W. E. Rockwood

You will not automatically lose your Section 8 due to the settlement of your personal injury case against your landlord. However, this is a question you are going to have to ask whatever housing authority administers your Section 8 voucher.

What happens if a Section 8(i) settlement is disapproved?

Where a Section 8(i) settlement application is disapproved by the deputy commissioner, any party to the settlement may request a hearing before an administrative law judge or submit an amended application to the deputy commissioner. 20 C.F.R. §702.243(c). Accordingly, this case was properly forwarded to the administrative law judge once the settlement was disapproved by the deputy commissioner. However, the administrative law judge erred in finding the settlement should have been deemed approved as the application did not comply with the regulations.. Although a claims adjuster for employer did sign the portion of the settlement application regarding the settlement of the disability claim, his failure to sign the portion of the settlement application which dealt with settlement of the medical benefits renders the entire settlement application incomplete; under 20 C.F.R. §702.243(e), if either portion of a combined compensation and medical benefit settlement is disapproved, the entire application is disapproved unless the parties indicate on the face of the application that they agree to settle each portion independently. McPherson v. Nat’l Steel & Shipbuilding Co., 24 BRBS 224 (1991), aff’d on recon. en banc, 26 BRBS 71 (1992).

What is Section 8(i)?

Section 8(i) provides the requirements for the settlement of claims under the Act. This provision was substantially amended by the 1984 Amendments, following which the Department of Labor promulgated new regulations, effective January 31, 1986. 20 C.F.R.

What to do if a settlement is disapproved?

If the proposed settlement is disapproved by the district director, the parties may either request a hearing before an administrative law judge or submit an amended settlement application. 20 C.F.R. §702.243(c). If the administrative law judge disapproves a settlement following a hearing, the parties have the option to submit a new application, file an appeal to the Board, or proceed with a hearing on the merits of the claim. Id. If the settlement is initially disapproved by the administrative law judge, the parties may either submit a new application or proceed with a hearing on the merits. Id. The district director or administrative law judge must explain the reasons for rejecting a settlement agreement with sufficient particularity so as to allow a proper review of his determination. Sablowski v. Gen. Dynamics Corp., 10 BRBS 1033 (1979); see 20 C.F.R. §702.243(c).

What is Section 14(f) in a settlement?

In a case where employer paid the 20 percent penalty under Section 14(f), giving the Board jurisdiction over the appeal, the Board held that the parties may negotiate claimant’s entitlement to or waiver of a Section 14(f) assessment in a Section 8(i) settlement, as the assessment is additional compensation and claimants may waive their rights to compensation through a Section 8(i) settlement. In this case, claimant and employer entered into a Section 8(i) settlement which provided for claimant’s waiver of the Section 14(f) assessment in the event he did not provide a “valid street address for purposes of delivery of the settlement proceeds.” Claimant supplied his correct street address but the USPS refused delivery because claimant did not have a mailbox at that address. Consequently, delivery of the proceeds was late. Because the district director did not address employer’s argument that claimant violated the settlement clause, the Board vacated the Section 14(f) assessment and remanded the case to the OALJ for fact-finding on this issue. D.G. [Graham] v. Cascade Gen., Inc., 42 BRBS 77 (2008).

Which court case referred to the authority of the deputy commissioner to approve settlements?

In Clefstad v. Perini North River Associates, 9 BRBS 217 (1978), the Board held that both deputy commissioners and administrative law judges had the authority to approve proposed settlements under the Section 8(i)(A) of the 1972 Act. The Fifth Circuit, however, held that administrative law judges were not authorized to approve such settlements, but could only recommend approval or disapproval and then remand the case to the deputy commissioner for ultimate approval. Ingalls Shipbuilding Div. Litton Sys., Inc. v. White, 681 F.2d 275, 14 BRBS 988 (5th Cir. 1982). The Board followed White only in cases arising in the Fifth Circuit. In Blake v. Hurlburt Field Billeting Fund, 17 BRBS 14 (1985), which arose in the Eleventh Circuit, the Board reaffirmed its holding that both deputy commissioners and administrative law judges may approve settlements and expressly refused to adopt the Fifth Circuit’s view in White. The Board noted that its determination was consistent with the 1984 Amendments.

Can a settlement agreement be conditioned?

settlement agreement may be conditioned and restricted, as long as it is in accordance with law. For example, the Board has held that a settlement agreement providing benefits for Section 8(c)(13) permanent partial disability could be made contingent on the end of total disability. Sablowski v. Gen. Dynamics Corp., 10 BRBS 1033 (1979).

Does a compromise and release form constitute an application for Section 8(i) settlement?

The filing of a compromise and release on a state form with the district director does not constitute an application for a Section 8(i) settlement where: 1) it does not satisfy the requirements of the regulations; 2) it is not submitted in accordance with Section 8(i); and

How long does it take to report a settlement?

Please note that you must report any settlement you receive to your caseworker within 10 days of receiving the funds.

What happens if you receive SSI?

But, if you receive any of the following needs-based benefits, your settlement may affect your eligibility and could cause a lapse or termination of your benefits: SSI (Supplemental Security Income): A cash benefit that provides assistance to the aged, blind or disabled.

Can you lose your medical benefits if you receive a settlement?

Many public assistance programs that provide you with monthly income or payments for medical services have strict financial eligibility limits. Without careful planning, your settlement award may cause you a reduction or even loss of your benefits for a period of time.

Can you lose your SSI if you give away part of your settlement?

You will likely lose your needs-based public assistance benefits for a period of time if you accept a lump sum payment that causes you to exceed the program’s income and resource limits. Likewise, if you give away part of your settlement as a gift or donation, you could also lose your SSI and/or Medicaid benefits for at least a time. Or, the government could seek reimbursement for benefits you’ve received.

What is Section 8 housing assistance?

If your client has housing assistance through the U.S. Department of Housing & Urban Development (HUD), which includes Section 8 benefits, it is critical from a planning perspective to understand how those benefits work. Not understanding the federal program and the nuances of your client’s local program could result in a variety of issues from inconvenience to your client to loss of a benefit he or she desperately needs.

How does HUD affect special needs trusts?

HUD benefits add a layer of complexity to special needs trust administration due to both the rules and the inconsistent way in which they are applied. Special needs trusts, whether pooled or standalone, must follow certain rules to ensure their beneficiaries do not lose the public benefits. One such rule is that the trust be used only to supplement but not replace or supplant those benefits. In practicality, this means Trustees apply categorical prohibitions. For example, if a beneficiary has SSI, a Trustee may not pay for food or shelter expenses. This is relatively straightforward and simple from an administration perspective.

Why did the Housing Authority rule cite above allowing trust distributions to be counted?

The housing authority’s argument boiled down to an assertion that had the funds gone straight to the beneficiary’s bank account they would have been excluded from income. Because the funds went to an irrevocable trust, they triggered the rule cited above allowing trust distributions to be counted.

How does the housing authority determine the amount of a voucher?

The local housing authority determines the amount of the voucher based on the above factors and the cost of rent in the local housing market. It is then up to the voucher recipient to find a suitable dwelling for that price (if the rent is higher than the voucher, the recipient pays the excess). The recipient will likely also pay 30-40% of monthly adjusted income.

Can Section 8 vouchers be counted as income?

For a beneficiary with Section 8 vouchers, any regularly-occurring distribution could be counted as income while “sporadic” distributions are excluded. Navigating this rule has created a “best practice” of distributing funds irregularly. This can be achieved by only paying for one-time purchases as opposed to purchases that occur every month such as a cable or cell phone bill. Depending on the nature of the expense, creative solutions can sometimes be utilized such as paying ahead a few months on a bill (varying the number of months each time). Another option is making distributions to an ABLE account. These decisions must be made on a case-by-case basis in full consideration of the beneficiary’s other benefits.

Who is Eligible for Section 8 Housing?

Section 8 is a federal program maintained by the Department of Housing and Urban Development, but it's enforced by local Public Housing Authorities. That means that eligibility can vary slightly from state to state, and even from county to county. However, there are some standard requirements that most programs will share.

How to Get Section 8 Immediately on Your Own

If you're wondering "Where do I go to apply for section 8", start by heading to the Department of Housing and Urban Development's website to find the contact information for your local Public Housing Authority. Each PHA has the following contact information you can use to get in touch and begin the application process:

How to Get Section 8 Immediately by Using DoNotPay

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