Seeking clarification of asset limits (apartment, rental, income)

[JazzGuy]

From the Housing Connect Marketing Handbook:

Asset Limit for Applicants of Rental Units
a. For a rental affordable unit, the value of the applicant’s household assets may not exceed the amount of the current HUD income limit for a four-person household for the AMI limit applicable to such unit.
b. For example, if the 60 percent HUD income limit for a four-person household is $55,000, a household of any size applying for a 60 percent AMI unit is not eligible if its total household assets exceed $55,000. If the 80 percent limit is $72,000, a household applying for an 80 percent AMI unit may not have more than $72,000 in assets.

This seems to imply that whether your household size is one, two, three, or four people, your asset limit is always based on the AMI for four people.

For example, let's imagine a person is applying for a Studio where the HUD limit for one person is $40,000 and the HUD limit for four people is $55,000. In this case, the asset limit is based of the HUD limit for four people, $55,000, even though it's only one person who is applying for a Studio apartment.

Is my understanding correct?

[linamonroll]

Correct. The asset limit is always the max income for a 4 person household for the applicable AMI.

[randomperson2]

Note that the asset limit does not include retirement accounts. If you've saved $55K beyond retirement savings on 60% AMI income, there are probably some shenanigans going on to mask ineligibility.

[JazzGuy]

Originally Posted by linamonroll

Correct. The asset limit is always the max income for a 4 person household for the applicable AMI.

Good, that's one less worry!