Follow Three Rules When Offering Resident Service Stipends

Like many owners and managers, you may pay a resident a small amount for part-time work he performs, such as raking leaves, cleaning common areas, or distributing flyers periodically at the site. HUD calls this payment a “resident service stipend” and defines it as a “modest amount (not to exceed $200 per month) received by a resident for performing a service for the owner, on a part-time basis, that enhances the quality of life” at the site [24 CFR 5.609 (c)(8)(iv)].