SSA 2022 Cost of Living Adjustment (COLA)
Social Security recipients will see a 5.9% monthly increase in 2022. The historic increase- the biggest in 39 years!
HUD provides the following guidance in HUD Handbook 4350.3 Rev 1, Chg 4, Paragraph 9-6:
When processing certifications with an effective date of January 1, February 1, March 1, and April 1, in order to complete the Recertification Steps outlined in Chapter 7, Figure 7-3, and provide the tenant with the required 30-day notice of any increase in rent, the owner must use one of the methods below for determining the tenant’s income:
- Use the benefit information reported in EIV that does not include the COLA as third-party verification as long as the tenant confirms that the income data in EIV is what he/she is receiving;
- Use the SSA benefit, award letter or Proof of Income Letter provided by the tenant that includes the COLA adjustment if the date of the letter is within 120 days from the date of receipt by the owner;
- Determine the tenant’s income by applying the COLA increase percentage to the current verified benefit amount and document the tenant file with how the tenant’s income was determined; or
- Request third-party verification directly from SSA when the income in EIV does not agree with the income the tenant reports he/she is receiving. (See Paragraph 9-15). All recertifications effective after April 1 must reflect the SSA benefit that includes the COLA.