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. Administrative Plan 4/1/16 <br />. <br />Page 6-15 <br />If an asset is owned by more than one person, including a family member, but the family <br />member does not have unrestricted access to the asset, SAHA will prorate the asset <br />according to the percentage of ownership. If no percentage is specified or provided for by <br />state or local law, SAHA will prorate the asset evenly among all owners. <br />Assets Disposed Of for Less than Fair Market Value [24 CFR 5.603(b)] <br />HUD regulations require SAHA to count as a current asset any business or family asset that was <br />disposed of for less than fair market value during the two years prior to the effective date of the <br />examination/reexamination, except as noted below. <br />Minimum Threshold <br />The HCV Guidebook permits SAHA to set a threshold below which assets disposed of for less <br />than fair market value will not be counted [HCV GB, p. 5-27]. <br />SAHA Policy <br />SAHA will include the value of assets by taking the difference between market value and <br />disposed of value minus any costs. <br />When the two-year period expires, the income assigned to the disposed asset(s) also <br />expires. If the two-year period ends between annual re-certifications, the family may <br />request an interim recertification to eliminate consideration of the asset(s). The family’s <br />request must be made 60 days prior to the end of the two year period. <br />Assets placed by the family in irrevocable trusts are considered assets disposed of for less <br />than fair market value except when the assets placed in trust were received through <br />settlements or judgments. <br />Separation or Divorce <br />The regulation also specifies that assets are not considered disposed of for less than fair market <br />value if they are disposed of as part of a separation or divorce settlement and the applicant or <br />tenant receives important consideration not measurable in dollar terms. <br />SAHA Policy <br />All assets disposed of as part of a separation or divorce settlement will be considered <br />assets for which important consideration not measurable in monetary terms has been <br />received. In order to qualify for this exemption, a family member must be subject to a <br />formal separation or divorce settlement agreement established through arbitration, <br />mediation, or court order. <br />Foreclosure or Bankruptcy <br />Assets are not considered disposed of for less than fair market value when the disposition is the <br />result of a foreclosure or bankruptcy sale. <br />Family Declaration <br />SAHA Policy <br />Families must sign a declaration form at initial certification and each annual <br />recertification identifying all assets that have been disposed of for less than fair market <br />value or declaring that no assets have been disposed of for less than fair market value. <br />3-143