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SAHA will not include the value of assets disposed of for less than fair market value unless the <br />cumulative fair market value of all assets disposed of during the past two years exceeds the gross <br />amount received for the assets by more than $1,000. <br />When the two-year period expires, the income assigned to the disposed asset(s) also expires. If <br />the two-year period ends between annual re-certifications, the family may request an interim <br />recertification to eliminate consideration of the asset(s). <br />Assets placed by the family in irrevocable trusts are considered assets disposed of for less than <br />fair market value except when the assets placed in trust were received through settlements or <br />judgments. <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 />All assets disposed of as part of a separation or divorce settlement will be considered assets for <br />which important consideration not measurable in monetary terms has been received. In order to <br />qualify for this exemption, a family member must be subject to a formal separation or divorce <br />settlement agreement established through arbitration, 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. <br />Family Declaration <br />Families must sign a declaration form at initial certification and each annual recertification <br />identifying all assets that have been disposed of for less than fair market value or declaring that <br />no assets have been disposed of for less than fair market value. SAHA may verify the value of <br />the assets disposed of if other information available to SAHA does not appear to agree with the <br />information reported by the family. <br />Types of Assets <br />Checking and Savings Accounts <br />For regular checking accounts and savings accounts, cash value has the same meaning as market <br />value. If a checking account does not bear interest, the anticipated income from the account is <br />zero. <br />In determining the value of a checking account, SAHA will use the average monthly balance for <br />the last six months. <br />In determining the anticipated income from an interest-bearing checking or savings account, <br />SAHA will multiply the value of the account by the current rate of interest paid on the account. <br />iii29iio Page 6-15 <br />