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<br />6-I.G.ASSETS \[24 CFR 5.609(b)(3) and 24 CFR 5.603(b)\] <br /> <br />Overview <br />There is no asset limitation for participation in the HCV program. However, HUD requires that <br />the PHA <br />)(3)\]. This section discusses how the income <br />from various types of assets is determined. For most types of assets, the PHA must determine the <br />value of the asset in order to compute income from the asset. Therefore, for each asset type, this <br />section discusses: <br />How the value of the asset will be determined <br /> <br />How income from the asset will be calculated <br /> <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 />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 /> <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 /> <br />Valuing Assets <br />The calculation of asset income sometimes requires the PHA to make a distinction between an <br /> <br />The market value of an asset is its worth (e.g., the amount a buyer would pay for real estate <br /> <br />or the balance in an investment account). <br />The cash value of an asset is its market value less all reasonable amounts that would be <br /> <br />incurred when converting the asset to cash. <br /> <br /> <br /> <br />Page 6-12 <br />04/01/14 <br /> <br />