6503.1 Upon approval in the MTW Plan, family assets include the market value of all assets owned by the family, except where specifically excluded in this section.

6503.2 Upon approval in the MTW Plan, when the market value of the family’s total assets is greater than Fifty Thousand Dollars ($50,000), DCHA will multiply the total market value of the family’s assets by the HUD-established passbook savings rate to calculate and include imputed asset income. Any asset which is excluded will not be counted toward the total market value of the family’s assets.

6503.3 Upon approval in the MTW Plan, when the market value of the family’s total assets is Fifty Thousand Dollars ($50,000) or less, DCHA will exclude all income from those assets. DCHA may determine the market value assets of a family based on a self-certification by the family that their total family assets do not exceed Fifty Thousand Dollars ($50,000).

6503.4 The market value of an asset is its worth in the market (such as the amount a buyer would pay for real estate or the total value of an investment account).

6503.5 Bank accounts, such as checking, savings, and credit union accounts, are included as assets. DCHA will use the current balance of each account in determining its market value.

6503.6 Financial investments such as stocks, bonds, saving certificates, and money market funds are included as assets. DCHA will use the value of the account on the most recent investment report in determining its market value.

6503.7 Any lump-sum receipts are only counted as assets if they are retained by a family in a form recognizable as an asset.

6503.8 The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family’s assets. DCHA will use the policy’s current surrender value as the market value of the asset.

6503.9 Assets do not include the value of term life insurance, which has no cash value to the individual before death.

6503.10 There are two types of trusts, revocable and irrevocable.

(a) Irrevocable trusts, which include special needs trusts, are not under the control of any member of the family or household are not included as

assets. DCHA will also not include as income any amounts earned by the trust (such as interest earned, rental income if the property is held in the trust) for so long as the income from the trust is not distributed.

(b) A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account.

(1) Revocable trusts under the control of the family or household (e.g., the grantor is a member of the assisted family or household) are considered assets and must be included in family assets. In this case, DCHA will exclude as income any distributions from the trust to the family and include income from the assets per HUD requirements.

(2) Revocable trusts that are not under the control of the family are excluded from family assets. This happens when a member of the assisted family is the beneficiary of a revocable trust, but the grantor is not a member of the assisted family. For the revocable trust to be considered excluded from family assets, no family or household member may be the account’s trustee.

6503.11 An Achieving a Better Life Experience (ABLE) account is a type of tax-advantaged savings account that an eligible individual can use to pay for qualified disability expenses.

(a) Section 103 of the ABLE Act mandates that an individual’s ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary’s eligibility and continued occupancy under certain federal means-tested programs.

(b) DCHA will exclude the entire value of the individual’s ABLE account from the household’s assets. Distributions from the ABLE account are also not considered income. However, all wage income received, regardless of which account the money is paid to, is included as income.

6503.12 If an asset is owned by more than one person and any family member has unrestricted access to the asset, DCHA shall count the full value of the asset unless:

(a) The asset is otherwise excluded;

(b) The family can demonstrate that the asset is inaccessible to them; or

(c) The family cannot dispose of any portion of the asset without the consent of another owner who refuses to comply.

6503.13 A family member has unrestricted access to an asset when they can legally dispose of the asset without the consent of any of the other owners.

6503.14 If the family demonstrates that they can only access a portion of an asset, then only that portion’s value is included in the calculation of net family assets for the family.

6503.15 Any income from a jointly owned asset must be included in annual income, unless:

(a) The income is specifically excluded;

(b) The family demonstrates that they do not have access to the income from that asset; or

(c) The family only has access to a portion of the income from that asset.

6503.16 If an individual is a beneficiary who is entitled to access the account’s funds only upon the death of the account’s owner, and may not otherwise withdraw funds from an account, then the account is not an asset to the assisted family, and the family should provide proper documentation demonstrating that they are only a beneficiary on the account.

6503.17 DCHA will count as a current asset any business or family asset that was disposed of for less than fair market value during the two (2) years prior to the effective date of the examination/reexamination, except as noted below:

(a) Assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms. To qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order.

(b) Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Families must sign a declaration form at initial certification and each regular recertification, and/or as required by DCHA in its discretion, thereafter identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair

market value. DCHA may verify the value of the assets disposed of if other information available to DCHA does not appear to agree with the information reported by the family.

(c) DCHA shall not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two (2) years exceeds the gross amount received for the assets by more than one thousand dollars ($1,000);

6503.18 Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets.

6503.19 Assets placed by the family in nonrevocable trusts are considered assets disposed of for less than fair market value except when the assets placed in trust were received through settlements or judgments.

6503.20 Assets moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value.

6503.21 When the two (2) year period expires, the income assigned to the disposed asset(s) also expires. If the two (2) year period ends between regular recertifications, the family may request an interim recertification to eliminate consideration of the asset(s).

6503.22 The following are excluded from the calculation of the market value of assets:

(a) The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located;

(b) The value of any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986;

(c) The value of any qualified tuition program under Section 529 of such Code;

(d) The value of any ABLE account authorized under Section 529A of such Code;

(e) Interests in Indian trust land;

(f) Equity in a manufactured home where the family receives assistance under 24 CFR Part 982;

(g) Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR Part 982;

(h) Family Self-Sufficiency Accounts;

(i) The full amount of assets held in an irrevocable trust;

(j) The full amount of assets held in a revocable trust where a member of the family is the beneficiary, but the grantor/owner and trustee of the trust is not a member of the participant family or household;

(k) Other exclusions listed in section § 6503; and

(l) Other exclusions required by HUD upon implementation of HOTMA.

SOURCE: Notice of Final Rulemaking published at 33 DCR 7973, 8028 (December 26, 1986); as amended by notice of Final Rulemaking published at 54 DCR 12320, 12321 (December 21, 2007); as amended by Final Rulemaking published at 73 DCR 007351 (May 15, 2026).