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Reminder: OHFA TICs and Net Assets Under HUD Threshold
Last month, OHFA published in the Industry Message how to list assets on TICs, but we continue to receive substantial inquiries on this process.
Should all net family assets be listed on an OHFA TIC even if they are under the HUD threshold amount? If so, what value of each asset should be listed on theTIC?
Effective immediately, if all net family assets are less than the threshold amount, $0 must be listed as the value of each asset on the TIC. If the net family assets are over the HUD threshold, then owners/management agents must list the actual value of each asset on the TIC.
Importantly, income from an asset(s) is always counted regardless if under/over the HUD threshold amount.
Example #1:
Mary has a checking account balance of $800 that has a 0% interest rate and a savings account value of $900 that has a 1.5% interest rate.
Since the value of the assets is less than the threshold amount
($800 + $900 = $1,700),
owners/management agents will list both assets on Mary’s TIC but the value will be $0 for each.
The income from the savings account will be counted as income
[$13.50 ($900 x .015 = $13.50)]
and listed on the TIC.
Example #2:
Chris has a checking account balance of $1,000 with a 0% interest rate, a savings account of $2,000 with a 2% interest rate, and a plot of land worth $49,000.
Total net family assets are $52,000.
($1,000 + $2,000 +$49,000 = $52,000)
Owners/management agents must list each asset on Chris’s TIC to show the actual value of each asset, because the net family assets are over the HUD threshold.
The asset income amount
[$40 ($2,000 x .02 = $40)]
will also be listed on the TIC.
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