An applicant lists on their application the existence of a rental property that is co-owned with a brother. It is verified that both parties have equal ownership and that the rental income is shared equally. The home has a current market value of $150,000 and a mortgage balance of $140,000, and anticipated costs to sell being $12,000. Annual net rental income is $12,000. The annual income for this household is:
Answer: (A) $6,000.00; the asset is owned jointly, therefore the household would only receive a prorated portion of the net income, in this case 50%. The cash value, if sold is a negative therefore zero value is included.
True or False - When a household is receiving SS and SSI payments on a Direct Express Debit Card, the card is treated as a savings account with the current balance on the card being verified and included with the total assets of the household.
Answer: True. The balance on the card is considered an asset and verification is consistent with savings account verifications. HUD RHIIP Listserv Posting #296
In determining the total assets for Scott and Carla Jones, the manager receives verifications for the checking account, listing a current balance of $800.00 and a 6-month average balance of $900 and the savings account listing a current balance of $3800.00 and 6-month average of $5000.00. Scott’s annuity is verified to have a current value of $250,000.00, and pays quarterly dividends of $600.00. The total market value of the assets equals:
Answer: (C) Per Chapter 5 of the 4350.3 HUD Handbook, we use the 6-month average balance for checking accounts, and the current balance for savings accounts. Because the household is receiving quarterly periodic payments, the annuity is not included.
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