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0 for housing costs is establishec separately from the rest of the welfare assistance and may be adjusted based on the actual cost of the family's housing. For welfare recipients. Pis in as -paid jurisdictions must cou^t as inccme the amount of general assistance tne family receives plus the maxmum amount of housing assistance the family could receive (rather than the amount the household is actually receiving). Sample Format for Computing Part 5 Annual Income Exhibit 3.3 shows a sample format for computing annual income. Exnibits 3.4 through 3.' provide examples and exercises that der"onstrate how the Part 5 annual inc;me defir..:;on is applied to incividual family circumstances. Answers to the exercises are provYded in each exhibit. These exhibits ignore :cicome from assets. which is addressed be:ow. Examples and exercises ccnceming asset calculation follow tha: discussion. Treatment of Assets Scree assistance proc.�ms reo:.:re that fa. :iies "spend downassets be`ore they can pa:-:cipate. -here is r: asset limitation for pa-:cipation :n the HCYE Program. Income frc•-- assets s. howeve-. recogr.zed as par, of _-,nual income undo- the Par. 5 definition:. Tc :omply w m the Pa- 5 rules 7egarding assets, Pis must know ;1) what :o include as assets. (2) hzw to corr:ute the :-arket anc cas- value c,: hose assets, and 3) how to de:ermrne th= income 4-om the asset to be inc.-ded in arrwal ince-7e. What to Include as an Asset In :eneral te-ns. an asset is a cash or nc-:ash iter, that can o convened to cas Ex-tems tha; are and iort 3.8 s;::nmarizes ; ••. nc::o be considered a`_are gets. (Nc:e: it is the inc--me earned - e.g.• .-terest or. a savings C� a. -Count — not the asset value, that is counted it annual income.) Exhibits 3.9 through 3.11 provide examples and exercises that dwmonstrate how income from assets is caiculated. Market Value and Cash Value Assets have both a market value and a cash vaue. The market value of an asset is simply its dollar value on the open market. For example, the market value of a share of stock is :he price quoted on the stock exchange on a :articular day. A property's market value is the amount it would sell for on the open market. This may be determined by comparing the property with similar, recently sod properties. Ar asset's cash value is the market value less reasonable expenses required to convert the asset to cash, including: Penalties or fees for converting financial holdings. Any penalties, fees or transaction charges levied when an asset is converted to cash are deducted from the market value to determine its cash value (e.g., penalties charged for Premature withdrawal of a certificate of deposit, the transaction fee for converting mutual funds to cash or broker fees for :onverting stocks to cash); and/or Costs for selling real property. Settlement costs, real estate transaction =ees, payment of mortgages/liens against :he property and any legal fees associated with the sale of real property are deducted from the market value to :etermine equity in real estate. Un:er the rules of Part 5, only the cash value (rat-er than the market value) of an item is cor--ted as an asset. If an asset is owned by mc-- than one person, Pis must prorate the asset according to the applicant's percentage of c.vnership. If no percentage is specified or prc•.-ded by state or local law, Pis must prorate the asset evenly among"all owners. If an asset is not effectively owned by an indi•:•dual, do not count it as an asset. -- .JuIuc jr ueiermnrng Income and Allowances for the HOME Program — 16