HUD PIH Notice § 2019-09
Treatment of ABLE Accounts to HUD-Assisted Programs (HUD PIH Notices)
Operative Text
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
______________________________________________________________________________
Special Attention of: NOTICE PIH 2019-09
NOTICE H-2019-06
Public Housing Field Office Directors
Public Housing Agency Directors Issued: April 26, 2019
Public Housing Hub Office Directors
Multifamily Regional Center Directors
Rural Services (RHS) Directors This notice remains in effect until amended,
Supervisory Housing Project Managers superseded or rescinded.
Housing Project Managers
Contract Administrators Cross Reference: 24 CFR 5.609; ABLE Act of
Multifamily Owners and Management Agents 2014
______________________________________________________________________________
Title: Treatment of ABLE Accounts in HUD-Assisted Programs
Purpose: This notice provides guidance regarding the federally mandated exclusion of ABLE accounts
from the calculation of income and assets, as required under the Achieving a Better Life Experience Act
of 2014 (ABLE Act). Per the mandate of the ABLE Act, for the purpose of determining eligibility and
continued occupancy, HUD will disregard amounts in the designated beneficiary’s/individual’s ABLE
account.
Background: The Achieving Better Life Experience (ABLE) Act (P.L. 113-295.) was signed into law on
December 19, 2014. The ABLE Act allows States to establish and maintain a program under which
contributions may be made to a tax-advantaged ABLE savings account to provide for the qualified
disability expenses of the designated beneficiary of the account. The designated beneficiary must be a
person with disabilities, whose disability began prior to his or her 26th birthday and who meets the
statutory eligibility requirements.
Applicability: This notice applies to the following programs:
1. Housing Choice Voucher Program, including all special voucher types
2. Public Housing
3. Project-based Section 8
o New Construction
o State Agency Financed
o Substantial Rehabilitation
o Section 202/8
o Rural Housing Services (RHS) Section 515/8
o Loan Management Set-Aside (LMSA)
o Property Disposition Set-Aside (PDSA)
o Rental Assistance Demonstration Project Based Rental Assistance (RAD/PBRA)
4. Section 202/162 Project Assistance Contract (PAC)
5. Section 202 Project Rental Assistance Contract (PRAC)
6. Section 202 Senior Preservation Rental Assistance Contracts (SPRAC)
7. Section 811 PRAC
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8. Section 811 Project Rental Assistance (PRA)
9. Section 236 (including RAP)
10. Section 221(d)(3)/(d)(5) Below Market Interest Rate (BMIR)
Definition of Terms: This Section includes definitions of terms referred to in this notice.
A. ABLE account means an account established for the benefit of an eligible individual, maintained
under a qualified ABLE program.
B. Contribution is the deposit of funds into an ABLE account.
C. Designated beneficiary is the eligible individual who established and owns the ABLE account.
D. Distribution is the withdrawal or issuance of funds from an ABLE account.
Treatment of ABLE account in HUD programs: Section 103 of the ABLE Act mandates that an
individual’s ABLE account (specifically, its account balance, contributions to the account, and
distributions from the account) is excluded/disregarded when determining the designated beneficiary’s
eligibility and continued occupancy under certain federal means-tested programs.
Individuals have to be income eligible to receive assistance under HUD programs. Per 24 CFR 5.609,
annual income is defined as the anticipated total income from all sources received by every family
member which are not specifically excluded in 24 CFR 5.609(c). The exclusion found at 24 CFR
5.609(c)(17) instructs PHAs and owners to exclude from income all amounts that are specifically
excluded by other Federal statute when the statute is applicable to HUD programs. Given that the ABLE
Act creates a federally mandated exclusion for ABLE accounts applicable to HUD programs, in
determining a family’s income, HUD will exclude amounts in the individual’s ABLE account pursuant to
24 CFR 5.609(c)(17). The entire value of the individual’s ABLE account will be excluded from the
household’s assets. This means actual or imputed interest on the ABLE account balance will not be
counted as income. Distributions from the ABLE account are also not considered income. All wage
income received, regardless of which account the money is paid to, is included as income.
For example:
1. Contributions made by the designated beneficiary
Pursuant to 24 CFR 5.609(a), all amounts received by the designated beneficiary are counted as
income, unless they fall under one of the enumerated exclusions under 5.609(c) or are federally
mandated, as with distributions from ABLE accounts.
If the beneficiary has a portion of his/her wages directly deposited into his/her ABLE account, then
all wage income received, regardless of which account the money is paid to, is included as income.
Pre-tax employer contributions to an ABLE account (that are not deducted from wages) are excluded.
If the designated beneficiary subsequently deposits any amount previously included as income into
his/her ABLE account, that deposited amount must not be included in the household’s asset
calculation or counted as income again when the beneficiary receives a distribution from the account.
2. Contributions made by others directly into the ABLE account
If someone other than the designated beneficiary contributes directly to the ABLE account, that
contribution will not be counted as income to the designated beneficiary.
If a relative provides a recurring gift of $100 per month directly to the beneficiary, the recurring gift
would be counted as income. If a relative deposits the $100 recurring monthly gift directly into the
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ABLE account, then it will not be counted as income. Note: Any person can contribute to an ABLE
account. However, the Internal Revenue Service (IRS) limits the total annual contributions that any
ABLE account can receive from all sources for a given calendar year.
3. Rollovers from existing ABLE accounts
Rollovers from existing ABLE accounts to the designated beneficiary’s ABLE account are not
counted as income to the designated beneficiary.
Verification: In accordance with program requirements at 24 CFR 5.240(c), PHAs and owners should
verify the amount held in the ABLE account. PHAs and owners should develop a policy and procedure
for verifying ABLE accounts that obtains the following information:
• the name of the designated beneficiary; and
• the State ABLE program administering the account to verify that the account qualifies as an
ABLE account.
Contact Information: If you have any questions regarding this notice, please contact Annecia Durr
(Office of Housing) at Annecia.Durr@hud.gov or 202-402-2618, or Becky Primeaux (Office of Public
and Indian Housing) at Becky.L.Primeaux@hud.gov or 202-402-6050.
Paperwork Reduction Act: The information collection requirements referred to in this notice have been
approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995
(44 U.S.C. 3520) and assigned OMB control numbers 2577-0169 and 2502-0204.
_________/s/_______________________ ________/s/_________________________
R. Hunter Kurtz Brian D. Montgomery
Principal Deputy Assistant Secretary Assistant Secretary for Housing –
for Public and Indian Housing Federal Housing Commissioner
PIH Notice 2019-09 (also issued as Notice H-2019-06) implements the federal ABLE Act's requirement that ABLE account balances, contributions, and distributions be excluded from income and asset calculations under a wide range of HUD-assisted housing programs. This means that a disabled individual's ABLE account—regardless of its balance or activity—does not count against them when a housing authority or property owner determines whether they qualify for or can continue receiving assistance. Wage income deposited into an ABLE account is still counted as income, but contributions made directly into the account by third parties, rollovers between ABLE accounts, and distributions from the account are not.
Plain English — not legal advice.
Under PIH Notice 2019-09, public housing agencies and owners administering covered programs—including Housing Choice Vouchers, Public Housing, and the various Project-Based Section 8 programs—are required to disregard the full value of a designated beneficiary's ABLE account when calculating household income and assets at both initial certification and recertification. Compliant operators develop written policies and procedures for verifying ABLE accounts in accordance with 24 CFR 5.240(c), confirming the beneficiary's name and the administering State ABLE program. Wage income remains countable regardless of which account it is deposited into, so income verification practices should distinguish between wage deposits and qualifying third-party contributions made directly to the ABLE account.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
PIH Notice 2019-09 establishes that eligible individuals with disabilities who hold ABLE accounts cannot have those accounts—including their balance, incoming contributions from others, or distributions—counted as income or assets when a housing authority or owner determines eligibility or continued occupancy under covered HUD programs. If a housing provider appears to be including an ABLE account in an income or asset calculation, a tenant may raise this federal exclusion, grounded in 24 CFR 5.609(c)(17) and the ABLE Act, as a basis for correction during the certification or grievance process. Tenant-rights organizations and HUD's Office of Public and Indian Housing can be resources for understanding how this exclusion applies across different program types listed in the notice.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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