Management HandbookForm Instructions

TC-16aREAL ESTATE INCOME WORKSHEET

This form must accompany form TC-16 “Real Estate Certification”.

Use this form to calculate the estimated or actual income from Real Estate holdings such as a home, land, investment property, etc. This form and form TC-16 “Real Estate Certification” plus its supporting documentation must be part of the certification paperwork and must be placed in the resident file for verification.

If an asset has a “zero” or a “negative” balance, nothing will be entered on the actual certification that we must report. Our in-house worksheet will show the asset so that it can be tracked until is has been disposed of or sold. An asset’s value can change at any time, so we must always follow up on the circumstances that relate.

These instructions should be followed:

Please enter the Apartment Community name, the Applicant/Resident name(s), the unit number and the date.

Please complete the rest of the form based on the information gathered from the TC-16 and supporting documentation. Always be sure to enter the “Description of the Real Estate”. NOTE: It may be necessary to use more than one Real Estate Income Worksheet when more than one asset is involved.

Next, please enter the “Market Value” of the asset. This is the amount before any expenses or loans have been deducted.

  1. If there “is” a Real Estate contract for the sale of the asset, enter the expense amounts as relevant from the contract. Please enter the total under “Estimated Expenses”.
  1. Next enter any mortgage/loan/lien balances (if any) under “Mortgage/Loan Balance OWED”. Enter a “0” (zero) if this expense is not applicable.
  1. To determine the cash value please follow the formula on the page: Market Value LESS Estimated Expenses LESS Mortgage/Loan/Lien balances = “Cash Value”.
  1. If there is more than “one” owner, please follow the additional formula listed on the form: cash value divided by number of owner’s = applicant/resident share.
  1. The cash value will be the asset amount. This amount will be listed on the certification unless it nets out to zero or has a negative balance. If, however, the total is $ 5000 or more, we will follow the HUD requirement and impute 2% on this amount. The 2% will be the “income from the asset.”
  1. If there is “not” a Real Estate contract because the owner still has possession of the property, the program uses 10% “Market Value” as the estimated expenses. Please see the formula under “10% of Market value listed below:”
  1. 10% times Market Value equals the Estimated Expenses.
  1. Enter the ‘Estimated Expenses” on the appropriate line under the “10% of Market Value listed below:” column.
  1. Enter any “Mortgage/Loan/Lien balances OWED:” (if any).
  1. Please refer to B., C., and D. under paragraph “I” above to complete this section.

III. To Determine “Rental Income” from the asset

  1. For Rental Income calculations use the information that was verified and/or received from the applicant/resident.
  1. There may be times when you have to do the calculations in both sections to determine the relevant income to count. Occupancy will help you determine this if necessary.
  1. Please follow the line items, as relevant, on this form. If an item does not apply please enter a “0” (zero).
  1. Rent received minus the expenses will equal the Rental Income. This will be entered on the certification as “asset” income unless the total nets out to zero or has a negative balance.

For questions or concerns regarding this form, please contact your Occupancy Supervisor in the Occupancy Department.

Real Estate Worksheet (08/07)Page 1 of 2TC-16a