ADMINISTRATIVE PLAN - San Antonio Housing Authority

PHA PolicyReasonable costs that would be incurred when disposing of an asset include, but are notlimited to, penalties for premature withdrawal, broker and legal fees, and settlement costsincurred in real estate transactions [HCV GB, p. 5-28].Lump-Sum ReceiptsPayments that are received in a single lump sum, such as inheritances, capital gains, lotterywinnings, insurance settlements, and proceeds from the sale of property, are generally consideredassets, not income. However, such lump-sum receipts are counted as assets only if they areretained by a family in a form recognizable as an asset (e.g., deposited in a savings or checkingaccount) [RHIIP FAQs]. (For a discussion of lump-sum payments that represent the delayed startof a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.)Imputing Income from Assets [24 CFR 5.609(b)(3)]When net family assets are $5,000 or less, the PHA will include in annual income the actualincome anticipated to be derived from the assets. When the family has net family assets in excessof $5,000, the PHA will include in annual income the greater of (1) the actual income derivedfrom the assets or (2) the imputed income. Imputed income from assets is calculated bymultiplying the total cash value of all family assets by the current HUD-established passbooksavings rate.Determining Actual Anticipated Income from AssetsIt may or may not be necessary for the PHA to use the value of an asset to compute the actualanticipated income from the asset. When the value is required to compute the anticipated incomefrom an asset, the market value of the asset is used. For example, if the asset is a property forwhich a family receives rental income, the anticipated income is determined by annualizing theactual monthly rental amount received for the property; it is not based on the property’s marketvalue. However, if the asset is a savings account, the anticipated income is determined bymultiplying the market value of the account by the interest rate on the account.Withdrawal of Cash or Liquidation of InvestmentsAny withdrawal of cash or assets from an investment will be included in income except to theextent that the withdrawal reimburses amounts invested by the family. For example, when afamily member retires, the amount received by the family from a retirement plan is not countedas income until the family has received payments equal to the amount the family memberdeposited into the retirement fund.© Copyright 2008 Nan McKay & Associates, Inc. Page 6-15Revised/Approved 04/08/10 (Eff: 07/01/10)Unlimited copies may be made for internal use.