ADMINISTRATIVE PLAN - San Antonio Housing Authority

EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS24 CFR 5.603(b) Net Family Assets(1) Net cash value after deducting reasonablecosts that would be incurred in disposing ofreal property, savings, stocks, bonds, and otherforms of capital investment, excludinginterests in Indian trust land and excludingequity accounts in HUD homeownershipprograms. The value of necessary items ofpersonal property such as furniture andautomobiles shall be excluded.(2) In cases where a trust fund has beenestablished and the trust is not revocable by, orunder the control of, any member of the familyor household, the value of the trust fund willnot be considered an asset so long as the fundcontinues to be held in trust. Any incomedistributed from the trust fund shall be countedwhen determining annual income under Sec.5.609.(3) In determining net family assets, PHAs orowners, as applicable, shall include the valueof any business or family assets disposed of byan applicant or tenant for less than fair marketvalue (including a disposition in trust, but notin a foreclosure or bankruptcy sale) during thetwo years preceding the date of application forthe program or reexamination, as applicable, inexcess of the consideration received therefore.In the case of a disposition as part of aseparation or divorce settlement, thedisposition will not be considered to be for lessthan fair market value if the applicant or tenantreceives important consideration notmeasurable in dollar terms.(4) For purposes of determining annual incomeunder Sec. 5.609, the term "net family assets''does not include the value of a home currentlybeing purchased with assistance under part982, subpart M of this title. This exclusion islimited to the first 10 years after the purchasedate of the home.© Copyright 2008 Nan McKay & Associates, Inc. Page 6-50Revised/Approved 04/08/10 (Eff: 07/01/10)Unlimited copies may be made for internal use.