If someone receives monetary assistance (cash gifts) from members of family, do we include these as income in qualifying them for an owner-occupied rehabilitation program?
Date Published: May 2015
The Part 5 definition of annual income is the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period. If the applicant receives regular gifts from persons not residing in the household these amounts would be included in the income calculation. If the amounts vary we recommend that you use the average over the past two years to determine future income. If the gift income is temporary, nonrecurring or sporadic it would not be included in the income calculation. A review of the bank statement should help you determine if the income is regular, sporadic or nonrecurring. If you qualify your homeowner rehabilitation program under the Low Mod Income housing national objective, all applicants have to be income eligible. Their gross family income could not exceed 80% of the area's current median family income based on family size as determined by HUD.