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. Administrative Plan 4/1/16 <br />. <br />Page 6-12 <br />Negative Business Income <br />If the net income from a business is negative, no business income will be included in annual <br />income; a negative amount will not be used to offset other family income. <br />Withdrawal of Cash or Assets from a Business <br />HUD regulations require SAHA to include in annual income the withdrawal of cash or assets <br />from the operation of a business or profession unless the withdrawal reimburses a family <br />member for cash or assets invested in the business by the family. <br />SAHA Policy <br />Acceptable investments in a business include cash loans and contributions of assets or <br />equipment. For example, if a member of an assisted family provided an up-front loan of <br />$2,000 to help a business get started, SAHA will not count as income any withdrawals <br />from the business up to the amount of this loan until the loan has been repaid. <br />Investments do not include the value of labor contributed to the business without <br />compensation. <br />Co-owned Businesses <br />SAHA Policy <br />If a business is co-owned with someone outside the family, the family must document the <br />share of the business it owns. If the family’s share of the income is lower than its share of <br />ownership, the family must document the reasons for the difference. <br /> <br />6-I.G. ASSETS [24 CFR 5.609(b)(3) and 24 CFR 5.603(b)] <br />Overview <br />There is no asset limitation for participation in the HCV program. However, HUD requires that <br />SAHA include in annual income the anticipated “interest, dividends, and other net income of any <br />kind from real or personal property” [24 CFR 5.609(b)(3)]. This section discusses how the <br />income from various types of assets is determined. For most types of assets, SAHA must <br />determine the value of the asset in order to compute income from the asset. Therefore, for each <br />asset type, this section discusses: <br />• How the value of the asset will be determined <br />• How income from the asset will be calculated <br />Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR <br />5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section <br />begins with a discussion of general policies related to assets and then provides HUD rules and <br />SAHA policies related to each type of asset. <br />General Policies <br />Income from Assets <br />SAHA generally will use current circumstances to determine both the value of an asset and the <br />anticipated income from the asset. As is true for all sources of income, HUD authorizes SAHA to <br />3-140