Section 8 Eligibility Lost Due to Special Needs Trust Payments

After receiving a $330,000 settlement for personal injury claims, 59-year-old Kimberly DeCambre became the beneficiary of a court-established special needs trust. DeCambre also received Supplemental Security Income, Medicaid, and a Section 8 housing voucher. Her Section 8 eligibility was revoked by the Brookline Housing Authority (BHA) due to trust disbursements in excess of $60,000 in one year. DeCambre sued the BHA claiming disability discrimination and due process violations. One of her arguments was that the BHA’s determination was improper because if her settlement had been in a lump sum instead of in a trust it would not have counted as income.

In DeCambre v. Brookline Housing Authority, the U.S. District Court for the District of Massachusetts affirmed the BHA’s denial of benefits finding the determination reasonable, but noted that “until the rules and regulations are clarified, public housing authorities should provide clear guidance and instruction for potential tenants with regard to their financial planning and spending.”

See SNT Payments Cause Section 8 Ineligibility, Elder Law Answers, Apr. 13, 2015.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.