The Social Security Administration (SSA) has recently revised its policy on recovering overpayments, a change that could significantly impact beneficiaries, especially those in affordable housing communities. Effective April 25, 2025, the SSA will withhold 50% of monthly Social Security benefits to recover overpaid amounts, replacing the previous 100% withholding rate implemented in March 2025. This adjustment aims to balance the agency’s responsibility to recover funds with the financial well-being of beneficiaries.

Understanding the Policy Change

Overpayments occur when beneficiaries receive more funds than they’re entitled to, often due to unreported changes in income, marital status, or living arrangements. Previously, the SSA withheld 100% of monthly benefits to recover these overpayments, a policy that led to significant financial hardship for many. The revised policy reduces the withholding rate to 50%, providing some relief to affected individuals.

Beneficiaries will receive a 90-day notice before the withholding begins, during which they can:

• Request a Waiver: If the overpayment wasn’t their fault and repaying would cause financial hardship.
• Appeal the Decision: If they believe the overpayment determination is incorrect.
• Negotiate a Lower Repayment Rate: If they cannot afford the 50% withholding.

It’s important to note that while the 50% withholding applies to new overpayments identified after April 25, 2025, overpayments identified before this date remain subject to the previous policies.

Many residents in affordable housing communities rely heavily on Social Security benefits. A 50% reduction in monthly income can still pose challenges in meeting basic needs such as rent, utilities, and groceries. Property owners and managers should be aware of these changes and support residents in navigating the new policy.

Steps for Property Owners and Managers

1. Educate Residents: Inform residents about the importance of promptly reporting any changes in income, marital status, or living arrangements to the SSA to prevent overpayments.
2. Assist with Documentation: Help residents keep records of communications with the SSA, including copies of forms submitted and confirmation receipts.
3. Provide Resources: Guide residents to set up a “my Social Security” account at SSA.gov to monitor their benefits and report changes.
4. Offer Support During Recertifications: Use annual recertification meetings to remind residents of their responsibilities and the importance of accurate reporting.

Actions for Residents

• Report Changes Promptly: Notify the SSA immediately of any changes in income, employment, marital status, or living arrangements.
• Maintain Records: Keep copies of all communications with the SSA.
• Monitor Benefits: Regularly check benefit statements through the “my Social Security” account.
• Seek Assistance: If unsure about reporting requirements or facing financial hardship due to withholding, contact the SSA at 1-800-772-1213 or visit a local office.

By staying informed and proactive, both residents and property managers can work together to minimize the impact of overpayment recoveries and ensure financial stability within their communities.

For more detailed information on the SSA’s overpayment policies, you can refer to their official announcement here: SSA Overpayment Policy Update