Special Needs Trust Housing

Summary

HUD rules typically prohibit renting from family to avoid conflicts of interest, but exceptions may apply for disabilities. Susans situation involves a third-party trustee managing a special needs trust, which may not be seen as direct family involvement. Its crucial to consult with the housing authority to clarify rules and seek possible exemptions.

Full Conversation

Assume Susan is severely disabled and receives SSDI. Susan receives an inheritance in the form of a third party special needs trust. The third party SNT was drafted by law firm that specializes in estate planning. Susan is the beneficiary of the trust with a trusted family friend serving as the sole trustee of the trust. Included in that inheritance is a house that Susan would like to live in. Susan also has an active Section * voucher from her housing authority. Can Susan use her voucher to rent a house that is owned by the SNT that she is beneficiary of?
Hi Dee,
To provide accurate information, could you please confirm if Susan's housing authority is aware of her special needs trust and the house included in the inheritance?
Thank you!
I'm not sure/
Hi Dee,
Thank you for your patience. Here are some general points to consider regarding Susan's situation in Illinois:
- Section * voucher rules generally prohibit renting from a family member to avoid conflicts of interest.
- It may be possible for Susan to rent the house if an exception is granted by the housing authority based on disability needs.
I recommend contacting Susan's housing authority to discuss the specifics of her situation and see if an exception can be made.
If you have any further questions or need additional information, feel free to ask!
Is she renting from a family member though. She is renting from a trust that she is the benficary of, but is controlled by a third party trustee. She nor any of her family have power over said trust.
Hi Dee,
To clarify Susan's situation further, here are some points to consider:
- Although Susan is renting from a trust and not directly from a family member, housing authorities may still view this as a potential conflict of interest.
- Susan should contact her housing authority to explain the trust arrangement and seek clarification or an exemption based on her disability.
If you need more specific guidance, please let me know!
Do HUD rules prohibit conflcits of intrests? I think it just says family.
Hi Dee,
HUD rules generally prohibit renting from family members to avoid conflicts of interest. However, the interpretation and application of these rules can vary, especially when trusts and third-party trustees are involved. It's best to consult directly with Susan's housing authority for a definitive answer.
If you have any more questions, feel free to ask!