ADMINISTRATIVE PLAN - San Antonio Housing Authority

Personal PropertyPersonal property held as an investment, such as gems, jewelry, coin collections, antique cars,etc., is considered an asset [HCV GB, p. 5-25].PHA PolicyIn determining the value of personal property held as an investment, the PHA will use thefamily’s estimate of the value. The PHA may obtain an appraisal to confirm the value ofthe asset if there is reason to believe that the family’s estimated value is off by $50 ormore. The family must cooperate with the appraiser but cannot be charged any costsrelated to the appraisal.Generally, personal property held as an investment generates no income until it isdisposed of. If regular income is generated (e.g., income from renting the personalproperty), the amount that is expected to be earned in the coming year is counted asactual income from the asset.Necessary items of personal property are not considered assets [24 CFR 5.603(b)].PHA PolicyNecessary personal property consists of only those items not held as an investment, andmay include clothing, furniture, household furnishings, jewelry, and vehicles, includingthose specially equipped for persons with disabilities.Life InsuranceThe cash value of a life insurance policy available to a family member before death, such as awhole life or universal life policy is included in the calculation of the value of the family’s assets[HCV GB 5-25]. The cash value is the surrender value. If such a policy earns dividends orinterest that the family could elect to receive, the anticipated amount of dividends or interest iscounted as income from the asset whether or not the family actually receives it.6-I.H. PERIODIC PAYMENTSPeriodic payments are forms of income received on a regular basis. HUD regulations specifyperiodic payments that are and are not included in annual income.Periodic Payments Included in Annual IncomePeriodic payments from sources such as social security, unemployment and welfareassistance, annuities, insurance policies, retirement funds, and pensions. However, periodicpayments from retirement accounts, annuities, and similar forms of investments are countedonly after they exceed the amount contributed by the family [24 CFR 5.609(b)(4) and (b)(3)].Disability or death benefits and lottery receipts paid periodically, rather than in a single lumpsum [24 CFR 5.609(b)(4) and HCV, p. 5-14]Lump-Sum Payments for the Delayed Start of a Periodic PaymentMost lump sums received as a result of delays in processing periodic payments, such asunemployment or welfare assistance, are counted as income. However, lump-sum receipts for the© Copyright 2008 Nan McKay & Associates, Inc. Page 6-20Revised/Approved 04/08/10 (Eff: 07/01/10)Unlimited copies may be made for internal use.