Chapter 1 - San Diego Housing Commission

Chapter 3 – Verification, Income, Assets, and Allowances
[24 CFR Part 5, Subparts D & E; Part 982, Subpart D & L]
If the family certifies that it has disposed of assets for less than fair market value, the
applicant/participant must complete the “Declaration of Assets Disposed of for Less than Cash
Value” form. The certification must show:
- All assets disposed of for less than fair market value
- The date they were disposed of
- The amount the family received for each asset, and
- The market value of each asset at the time of disposition.
Third-party verification will be obtained whenever possible in conjunction with review of
documents.
Savings or Checking Account Interest and Dividend Income
Acceptable methods of verification include, in order of priority:
1. Verification form completed by the financial institution;
2. Financial institution generated account statements, certificate of deposit statements, three (3)
to six (6) months of statements for checking accounts; supplied by the family;
3. Broker statements showing the value of stocks or bonds and the earnings credited to the
family (Earnings can also be obtained from current newspaper quotations or orally from
brokers);
4. IRS Form 1099 from a financial institution; or
5. Life insurance policy/statement from Financial Institution showing cash surrender value table.
Interest Income from Mortgages and Similar Arrangements
Acceptable methods of verification include, in this order:
1. A letter received directly from an accountant, attorney, real estate broker, the buyer, or a
financial institution stating the interest due for the next 12 months (A copy of the check paid
by the buyer to the family is not sufficient unless a breakdown of interest and principal is
shown); or
2. An amortization schedule showing interest for the 12 months following the effective date of
certification or recertification.
Net Rental Income from Property Owned by Family
Acceptable methods of verification include, in this order:
1. IRS Form 1040 with Schedule E (Rental Income);
2. Copies of latest rent receipts, leases, or other documentation of rent amounts;
3. Documentation of allowable operating expenses of the property including tax statements,
insurance invoices, bills for reasonable maintenance and utilities, and bank statements or
amortization schedules showing monthly interest expense; or
4. Lessee’s written statement verifying rent payments to the family and the family’s selfcertification
of net income realized.
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