How to Classify Six Items that May Be Treated as Income or Assets

When certifying or recertifying households, you must list both the household’s income and its assets. However, deciding whether to treat an item as income or an asset can be tricky. If you treat an item incorrectly, you will make a certification mistake that could result in a HUD audit or costly penalties.

The following are six items that could be treated as either income or assets. We will explain the deciding factors in each case and tell you how HUD Handbook 4350.3 says to treat these items.