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Lump-Sum Receipts Payments that are received in a single lump sum, such as inheritances, capital gains, lottery winnings, insurance settlements, and proceeds from the sale of property, are generally considered assets, not income. However, such lump-sum receipts are counted as assets only if they are retained by a family in a form recognizable as an asset (e.g., deposited in a savings or checking account) [RHIIP FAQs] . (For adiscussion oflump-sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I.) Imputing Income from Assets j24 CFR 5.609(b)(3)] When net family assets are $5,000 or less, SARA will include in annual income the actual income anticipated to be derived from the assets. When the family has net family assets in excess of $5,000, SARA will include in annual income the greater of (1) the actual income derived from the assets or (2) the imputed income. Imputed income from assets is calculated as per HUD Notice PIH 2012-29, SARA may establish a passbook rate to apply in calculating imputed assets from income. SARA will review the passbook rate annually on or about September 1St and will establish the passbook rate according to the Savings National Rate and it will be effective November 1st of each year. The Savings National Rate is a simple average of rates by the U.S. Depository Institutions as calculated by the Federal Deposit Insurance Corporation (FDIC). Determining Actual Anticipated Income from Assets It may or may not be necessary for SARA to use the value of an asset to compute the actual anticipated income from the asset. When the value is required to compute the anticipated income from an asset, the market value of the asset is used. For example, if the asset is a property for which a family receives rental income, the anticipated income is determined by annualizing the actual monthly rental amount received for the property; it is not based on the property's market value. However, if the asset is a savings account, the anticipated income is determined by multiplying the market value of the account by the interest rate on the account. Withdrawal of Cash or Liquidation of Investments Any withdrawal of cash or assets from an investment will be included in income except to the extent that the withdrawal reimburses amounts invested by the family. For example, when a family member retires, the amount received by the family from a retirement plan is not counted as income until the family has received payments equal to the amount the family member deposited into the retirement fund. Jointly Owned Assets The regulation at 24 CFR 5.609(a}(4) specifies that annual income includes "amounts derived (during the 12-month period) from assets to which any member of the family has access." If an asset is owned by more than one person and any family member has unrestricted access to the asset, SARA will count the full value of the asset. A family member has unrestricted access to an asset when he or she can legally dispose of the asset without the consent of any of the other owners. 2/25/13 Page 6-12