When are lump sum payments counted as income?

Lump sum payments are counted as income when they result from delays in processing periodic payments. This means that if a recipient normally receives their payments on a regular basis, such as monthly, and there is a delay in receiving those payments, the lump sum that is eventually received to cover this delay is considered income.

This is because such payments may affect the recipient's financial situation in the period in which they receive it, potentially increasing their total income for that period. Tracking these situations is important in the context of housing choice vouchers, as the total income affects eligibility and the amount of assistance a household may receive. Understanding how and when to count these payments ensures accurate assessment of a household's financial situation and compliance with regulations governing the HCV program.

Lump sum payments that are received every month, are designated for a specific purpose, or are part of a welfare program may not necessarily be counted in the same way, as these circumstances have different implications regarding income assessment under the HCV program.