Your Compliance Team has some pointers on HOW and WHEN to use the Under $5000 Asset Certification Form, also called the “Under $5K”.
The Under $5000 Asset Certification is used when all household assets total less than $5,000. If household assets total more than $5000.00, third party verifications must be completed. The following apply if household assets total less than $5000.00.
- The Under $5K is a TAX CREDIT ONLY form, and is required for tax credit files.
- If the community has HUD, RD, HOME or PennHOME funding, all assets must be third-party verified (to satisfy the HUD/RD/HOME requirements) and the Under $5000 Asset Certification form should be completed to satisfy the LIHTC (tax credit) requirement.
- If third party verifications are done and the household assets total less than $5000.00, the form must also be completed.
- Do not enter “zeroes” under all asset types – to an auditor, this looks like there are accounts with a $0.00 balance. See the example attached!
For New Jersey: Assets are required to be verified regardless of the use of the Under $5000 Asset Certification.
If you have any questions regarding when or how to use the Under $5K, please contact your Compliance Specialist!