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6-I.M. ASSETS [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] <br />Overview <br />There is no asset limitation for participation in the HCV program. However, HUD requires that <br />the PHA include in annual income the anticipated “interest, dividends, and other net income of <br />any kind from real or personal property” [24 CFR 5.609(b)(3)]. This section discusses how the <br />income from various types of assets is determined. For most types of assets, the PHA must <br />determine the value of the asset in order to compute income from the asset. Therefore, for each <br />asset type, this section discusses: <br /> How the value of the asset will be determined <br /> How income from the asset will be calculated <br />Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR <br />5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section <br />begins with a discussion of general policies related to assets and then provides HUD rules and <br />PHA policies related to each type of asset. <br />Optional policies for family self-certification of assets are found in Chapter 7. <br />General Policies <br />Income from Assets <br />The PHA generally will use current circumstances to determine both the value of an asset and the <br />anticipated income from the asset. As is true for all sources of income, HUD authorizes the PHA <br />to use other than current circumstances to anticipate income when (1) an imminent change in <br />circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or <br />(3) the PHA believes that past income is the best indicator of anticipated income. For example, if <br />a family member owns real property that typically receives rental income but the property is <br />currently vacant, the PHA can take into consideration past rental income along with the <br />prospects of obtaining a new tenant. <br />SAHA Policy <br />Anytime current circumstances are not used to determine asset income, a clear rationale <br />for the decision will be documented in the file. In such cases the family may present <br />information and documentation to SAHA to show why the asset income determination <br />does not represent the family’s anticipated asset income. <br />EXHIBIT 1