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Imputing Income from Assets [24 CFR 5.609(b)(3), Notice PIH 2012-29] <br />When net family assets are $5,000 or less, the PHA will include in annual income the actual <br />income anticipated to be derived from the assets. When the family has net family assets in excess <br />of $5,000, the PHA will include in annual income the greater of (1) the actual income derived <br />from the assets or (2) the imputed income. Imputed income from assets is calculated by <br />multiplying the total cash value of all family assets by an average passbook savings rate as <br />determined by the PHA. <br /> Note: The HUD field office no longer provides an interest rate for imputed asset income. The <br />“safe harbor” is now for the PHA to establish a passbook rate within 0.75 percent of a <br />national average. <br /> The PHA must review its passbook rate annually to ensure that it remains within 0.75 percent <br />of the national average. <br />SAHA Policy <br />SAHA initially set the imputed asset passbook rate at the national rate established by the <br />Federal Deposit Insurance Corporation (FDIC). <br />SAHA will review the passbook rate annually on or around October 1st. The rate will not <br />be adjusted unless the current SAHA rate is no longer within 0.75 percent of the national <br />rate. If it is no longer within 0.75 percent of the national rate, the passbook rate will be <br />set at the current national rate. <br />Any adjustments to the passbook rate will be effective January 1st of each year. <br />Determining Actual Anticipated Income from Assets <br />It may or may not be necessary for the PHA to use the value of an asset to compute the actual <br />anticipated income from the asset. When the value is required to compute the anticipated income <br />from an asset, the market value of the asset is used. For example, if the asset is a property for <br />which a family receives rental income, the anticipated income is determined by annualizing the <br />actual monthly rental amount received for the property; it is not based on the property’s market <br />value. However, if the asset is a savings account, the anticipated income is determined by <br />multiplying the market value of the account by the interest rate on the account. <br />Withdrawal of Cash or Liquidation of Investments <br />Any withdrawal of cash or assets from an investment will be included in income except to the <br />extent that the withdrawal reimburses amounts invested by the family. For example, when a <br />family member retires, the amount received by the family from a retirement investment plan is <br />not counted as income until the family has received payments equal to the amount the family <br />member deposited into the retirement investment plan. <br />EXHIBIT 1