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Council backs idea to exclude retirement accounts from APCHA asset test but asks for limits
Summary
APCHA recommended removing retirement accounts from asset calculations to avoid discouraging savings; councilmembers supported the intent but suggested considering an upper limit to prevent very wealthy owners from occupying deed-restricted units.
APCHA staff told the council that including retirement accounts in asset calculations discouraged applicants from saving for retirement and recommended removing caps that count 401(k)s, IRAs, 403(b)s and 457 plans in eligibility determinations.
"Absa had been hearing that this cap on saving discouraged people from saving for retirement...and so they are recommending a removal of all caps on retirement assets for applicants," an APCHA representative said. Councilmembers expressed sympathy for encouraging savings but raised a practical question about a potential "top end" — whether extremely large retirement accounts (for example, millions of dollars) should still affect eligibility or be limited by a high threshold.
Members asked staff to consider whether a high ceiling should be added in future iterations to address edge cases while keeping the program accessible to typical workers. The item will be part of the packet for APCHA's May 7 second reading.
