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Old Yesterday, 11:48 PM
 
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Hello,

Thanks for all the very helpful posts. Can anyone confirm through experience on what “specifically designated retirement funds” are not subject to the asset limit for the NYC Housing Lottery?

I’ve submitted a Housing Application via NYC Connect for my retirement aged mother and niece attending college so that they can move into a two-bedroom unit together. When my dad passed away, they decided to stay in the city moving into a very expensive and cramped studio apartment together.

They currently satisfy income and asset requirements at 30% AMI but my mom will cause them to exceed the asset limit when she eventually receives the lump sum death benefit due from my father’s passing if I don’t place it into the proper retirement fund for her. The verbiage I came across within the income guide posted at NYC Housing Connect states “Balances in specifically designated retirement funds and college savings accounts are not subject to the asset limit, but are counted toward overall assets and income from assets.” That said, I’m currently considering an annuity, Roth IRA or combination of both that will provide immediate monthly payments without causing her to exceed the income limits, but any experienced suggestions and insight on ensuring she avoids exceeding the asset limit would be greatly appreciated.
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Old Today, 09:46 AM
 
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As far as I know an IRA would not count toward the asset limit however you cannot contribute more than $6000 to a Roth in a given year. I don't know how much the death benefit would be but chances it will be more than you can put in an IRA at once.
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Old Today, 10:23 AM
 
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See 5-32 here: https://www.hud.gov/sites/documents/43503HSGH.PDF

Now, some of these requirements vary by program and I don't have the time to work through it all, but these would be the default rules.
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Old Today, 11:10 AM
 
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Ouch...thanks for the quick response. I'll definitely need to place the remainder of the benefit elsewhere.
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Old Today, 11:16 AM
 
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Quote:
Originally Posted by randomperson2 View Post
See 5-32 here: [url]https://www.hud.gov/sites/documents/43503HSGH.PDF[/url]

Now, some of these requirements vary by program and I don't have the time to work through it all, but these would be the default rules.
Many thanks for the assist! Wow, I see what you mean...this is a very hefty document that I plan to review over the next day or so for further insight. I'll be sure to share whatever I come up with.
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Old Today, 11:21 AM
 
Location: Eric Forman's basement
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NY_Family, I wish I had some advice for you, but I don't. I just want to point out that your original post was one of the clearest and best expressed I have read on this site. Plus, I think it's great you're trying to help your mom get affordable housing.

There are several community groups that act as facilitators, or "housing ambassadors," in the affordable housing process. Here is a list, by borough. I don't know how knowledgeable they are, but it wouldn't hurt to contact one of them and ask!

https://www1.nyc.gov/site/hpd/renter...bassadors.page

Best of luck!
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Old Today, 03:07 PM
 
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Quote:
Originally Posted by NY_Family View Post
Many thanks for the assist! Wow, I see what you mean...this is a very hefty document that I plan to review over the next day or so for further insight. I'll be sure to share whatever I come up with.
Thanks again randomperson2, if my interpretation of the HUD manual your provided is correct, an annuity or IRA will not be counted as an asset if my mom is receiving periodic payments from the fund (I’m sure she can since she’s now over 70). The manual states: “IRA, Keogh, and similar retirement savings accounts are counted as assets, even though withdrawal would result in a penalty, *unless benefits are being received through periodic payments* “

However, I believe there is at least one caveat, I may need to ensure that the we choose an annuity that will NOT allow her the right to withdraw the balance or it may be counted as an asset. The HUD manual further states: “When verifying an annuity, owners should ask the verification source whether the holder of the annuity has the right to withdraw the balance of the annuity. For annuities without this right, the annuity is not treated as an asset” and “an annuity is counted as an asset if the holder has the right to withdraw the balance (even if penalties are involved)”.

That said, I’ll begin researching annuities that will provide immediate periodic payout without allowing the balance to be withdrawn to ensure she’ll still qualify.

All, please chime in if you have a different interpretation or are aware of any other caveats.
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Old Today, 03:09 PM
 
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Quote:
Originally Posted by macnyc2003 View Post
NY_Family, I wish I had some advice for you, but I don't. I just want to point out that your original post was one of the clearest and best expressed I have read on this site. Plus, I think it's great you're trying to help your mom get affordable housing.

There are several community groups that act as facilitators, or "housing ambassadors," in the affordable housing process. Here is a list, by borough. I don't know how knowledgeable they are, but it wouldn't hurt to contact one of them and ask!

[URL="https://www1.nyc.gov/site/hpd/renters/housing-ambassadors.page"]https://www1.nyc.gov/site/hpd/renters/housing-ambassadors.page[/URL]

Best of luck!
macnyc200, thanks for the additional information and kind words! My mom isn’t used to handling the finances so I’m doing my best to assist from afar as I just retired from the USMC and I’m living in California. All I can say is thank goodness for the internet! I’m also currently working to get her added to my VA Disability Benefits in the hopes that my veteran status can help open additional doors or give her a better position in the housing lottery. If you or anyone else has any information that may help veteran dependents obtain affordable housing in NYC, please share that as well! Thanks again!
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