What does the term "over-income" refer to in the context of the HCV program?

The term "over-income" in the context of the Housing Choice Voucher (HCV) program specifically refers to a household whose income exceeds the program's established limits. These limits are defined by the Department of Housing and Urban Development (HUD) and are designed to ensure that the program serves low-income families. When a household earns more than the maximum allowable income set by the program, it is considered over-income, which can affect their eligibility to receive housing vouchers or may require them to transition out of the program.

Understanding this concept is crucial, as it highlights the importance of income verification and compliance with the program’s requirements to maintain assistance. In contrast, other options identify different financial situations or definitions that do not accurately relate to the specific parameters of the HCV program regarding income thresholds. For instance, a household earning below the federal poverty line is not necessarily considered over-income, and those who can afford luxury housing do not fit within the intended demographic of the program.