Can HUD Make a Lien Against My Settlement?

by Anonymous

I am expecting a personal injury settlement. My rent has been subsidized by HUD's Project-based Voucher Assistance Program for four years. Can HUD make a lien against my settlement to claim repayment of the subsidy?

Visitor Question:
Disclaimer: Information provided in our response is NOT formal legal advice. It is generic legal information based on the very limited information provided. Under no circumstances should the information in our response, or anywhere else on this site be relied upon when deciding the proper course of a legal matter. Our response does NOT create an attorney-client relationship. Always get a formal case review from a licensed attorney in your area.

ANSWER for "Can HUD Make a Lien Against My Settlement?":

Receipt of Federal benefits with income limits implies that you qualify based upon the guidelines set by the federal government. Personal injury awards are actually considered "income" (whether or not you get taxed on the award is a different story), so it is something you would ultimately need to claim.

By claiming them (which you are legally required to do) a couple of things might happen: For one, you may be disqualified from the HUD benefits you are receiving and secondly, they will be aware of your settlement and may seek indemnification for the benefits they have paid you.

Lastly, any lawyer assisting you would have an ethically duty to notify HUD of a personal injury award particularly knowing that there is the possibilities discussed above.

The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from an attorney licensed in your state. Find a local attorney to give you a free case review here, or call (888) 647-2490.

Best of luck,

Judge Calisi

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