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Imputing Income from Assets [24 CFR 5.609(b)(3)] When net family assets are $5,000 or less, SAHA will include in annual income the actual income anticipated to be derived from the assets. When the family has net family assets in excess of $5,000, SAHA will include in annual income the greater of (1) the actual income derived from the assets or (2) the imputed income. Imputed income from assets is calculated by multiplying the total cash value of all family assets by the current HUD-established passbook savings rate. Determining Actual Anticipated Income from Assets It may or may not be necessary for SAHA to use the value of an asset to compute the actual anticipated income from the asset. When the value is required to compute the anticipated income from an asset, the market value of the asset is used. For example, if the asset is a property for which a family receives rental income, the anticipated income is determined by annualizing the actual monthly rental amount received for the property; it is not based on the property's market value. However, if the asset is a savings account, the anticipated income is determined by multiplying the market value of the account by the interest rate on the account. Withdrawal of Cash or Liquidation of Investments Any withdrawal of cash or assets from an investment will be included in income except to the extent that the withdrawal reimburses amounts invested by the family. For example, when a family member retires, the amount received by the family from a retirement plan is not counted as income until the family has received payments equal to the amount the family member deposited into the retirement fund. Jointly Owned Assets The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes "amounts derived (during the 12-month period) from assets to which any member of the family has access." If an asset is owned by more than one person and any family member has unrestricted access to the asset, SAHA will count the full value of the asset. A family member has unrestricted access to an asset when he or she can legally dispose of the asset without the consent of any of the other owners. If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, SAHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, SAHA will prorate the asset evenly among all owners. Assets Disposed Of for Less than Fair Market Value [24 CFR 5.603(b)] HUD regulations require SAHA to count as a current asset any business or family asset that was disposed of for less than fair market value during the two years prior to the effective date of the examination/reexamination, except as noted below. Minimum Threshold The HVC Guidebook permits SAHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB, p. 5-27]. iii29iio Page 6-14