Summary: The purpose of HUD's Notice is to remind PHAs of the regulatory provision regarding how the value of a home purchased under the Housing Choice Voucher (HCV) homeownership option (24 CFR 982 Subpart M) is treated for the purpose of determining the family’s annual income. The rule (24 CFR 5.603(b) Net Family Assets. (4)) exempts the home purchased with voucher assistance from being counted as an asset for the first 10 years after the closing date. HUD issued the final rule on September 12, 2000. PHAs and industry professionals need to be aware that the exemption terminates after a family’s 10th year of participation in the program. The Notice provides guidance on including the value of the home in “net family assets” starting in the eleventh year following the purchase of the home. The Notice also establishes safe harbors that a PHA may rely upon to determine the cash value of real estate purchased under the homeownership option.
Date of Publication: January 27, 2012
View the notice here.
