Laserfiche WebLink
Capital Indebtedness <br />HUD regulations do not permit the PHA to deduct from gross income the amortization of capital <br />indebtedness. <br />SAHA Policy <br />Capital indebtedness is defined as the principal portion of the payment on a capital asset <br />such as land, buildings, and machinery. This means SAHA will allow as a business <br />expense interest, but not principal, paid on capital indebtedness. <br />Negative Business Income <br />If the net income from a business is negative, no business income will be included in annual <br />income; a negative amount will not be used to offset other family income. <br />Withdrawal of Cash or Assets from a Business <br />HUD regulations require the PHA to include in annual income the withdrawal of cash or assets <br />from the operation of a business or profession unless the withdrawal reimburses a family <br />member for cash or assets invested in the business by the family. <br />SAHA Policy <br />Acceptable investments in a business include cash loans and contributions of assets or <br />equipment. For example, if a member of an assisted family provided an up-front loan of <br />$2,000 to help a business get started, SAHA will not count as income any withdrawals <br />from the business up to the amount of this loan until the loan has been repaid. <br />Investments do not include the value of labor contributed to the business without <br />compensation. <br />Co-owned Businesses <br />SAHA Policy <br />If a business is co-owned with someone outside the family, the family must document the <br />share of the business it owns. If the family’s share of the income is lower than its share of <br />ownership, the family must document the reasons for the difference. <br />EXHIBIT 1