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Administrative Plan 7/1/2025 Page 6-34 <br />6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE <br />[24 CFR 5.603(b)(2)] <br />PHAs must include the value of any business or family assets disposed of by an applicant or <br />participant for less than fair market value (including a disposition in trust, but not in a <br />foreclosure or bankruptcy sale) during the two years preceding the date of application or <br />reexamination, as applicable, in excess of the consideration received for the asset. An asset <br />moved to a retirement account held by a member of the family is not considered to be an asset <br />disposed of for less than fair market value [Notice PIH 2023-27]. <br />The family must certify whether any assets have been disposed of for less than fair market value <br />in the preceding two years. <br />Minimum Threshold <br />The HCV Guidebook permits the PHA to set a threshold below which assets disposed of for less <br />than fair market value will not be counted [HCV GB, p. 5-27]. <br />SAHA Policy <br />SAHA will not include the value of assets disposed of for less than fair market value <br />unless the cumulative fair market value of all assets disposed of during the past two years <br />exceeds the gross amount received for the assets by more than $1,000. <br />Separation or Divorce <br />The regulation also specifies that assets are not considered disposed of for less than fair market <br />value if they are disposed of as part of a separation or divorce settlement and the applicant or <br />tenant receives important consideration not measurable in dollar terms. <br />SAHA Policy <br />All assets disposed of as part of a separation or divorce settlement will be considered <br />assets for which important consideration not measurable in monetary terms has been <br />received. In order to qualify for this exemption, a family member must be subject to a <br />formal separation or divorce settlement agreement established through arbitration, <br />mediation, or court order. <br />Foreclosure or Bankruptcy <br />Assets are not considered disposed of for less than fair market value when the disposition is the <br />result of a foreclosure or bankruptcy sale. Negative equity in real property or other investments <br />does not prohibit the owner from selling the property or other investments, so negative equity <br />alone would not justify excluding the property or other investments from family assets. <br />Family Declaration <br />SAHA Policy <br />Families must sign a declaration form at initial certification and each annual <br />recertification identifying all assets that have been disposed of for less than fair market <br />value or declaring that no assets have been disposed of for less than fair market value. <br />SAHA may verify the value of the assets disposed of if other information available to <br />SAHA does not appear to agree with the information reported by the family. <br />EXHIBIT 1