4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1) Net cash value after deducting reasonable (3) In determining net family assets, PHAs or costs that would be incurred in disposing of owners, as applicable, shall include the value real property, savings, stocks, bonds, and other of any business or family assets disposed of by forms of capital investment, excluding an applicant or tenant for less than fair market interests in Indian trust land and excluding value (including a disposition in trust, but not equity accounts in HUD homeownership in a foreclosure or bankruptcy sale) during the programs. The value of necessary items of two years preceding the date of application for personal property such as furniture and the program or reexamination, as applicable, in automobiles shall be excluded. excess of the consideration received therefore. In the case of a disposition as part of a (2) In cases where a trust fund has been separation or divorce settlement, the established and the trust is not revocable by, or disposition will not be considered to be for less under the control of, any member of the family than fair market value if the applicant or tenant or household, the value of the trust fund will receives important consideration not not be considered an asset so long as the fund measurable in dollar terms. continues to be held in trust. Any income distributed from the trust fund shall be counted (4) For purposes of determining annual income when determining annual income under Sec. under Sec. 5.609, the term "net family assets'' 5.609. does not include the value of a home currently being purchased with assistance under part 982, subpart M of this title. This exclusion is limited to the first 10 years after the purchase date of the home. Page 6-45 04/01/14