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1208 - REAL PROPERTY

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									FINANCIAL ELIGIBILITY CRITERIA                                         REAL PROPERTY

                            1520 - REAL PROPERTY

REQUIREMENT         The value of property in the form of land and buildings is considered in
                    determining financial eligibility.
BASIC               Real property includes the following:
CONSIDERATIONS
                       land
                       lots
                       trees on land
                       buildings that would pass to a buyer if the land or lots were sold
                       mobile homes.

                    Real property is generally categorized as one of the following:

                       homeplace
                       non-homeplace
                       income producing.

        Homeplace   Homeplace property includes the dwelling in which the AU lives and
                    surrounding land and outbuildings.

                    EXCEPTION: Buildings on the property such as stores or other
                    houses which are not clearly part of the home and its outbuildings must
                    be counted as a resource.

                    The original homeplace may have been added to by the purchase of
                    land contiguous to the homeplace and more than one deed may exist.
                    The original homeplace and the contiguous land are considered the
                    homeplace, provided all deeds are in the name of an AU member or a
                    person whose resources are considered available to the AU and/or
                    his/her spouse.

                    Public rights of way, such as roads that run through the property, do not
                    affect the property’s designation as homeplace. The description of the
                    property as contained in the deed shall be considered the homeplace.

                    To be considered part of the homeplace, surrounding property cannot
                    be separated by property owned by others.

                    If the contiguous property is owned jointly by an AU member or a
                    person whose resources are considered and a non-AU member, the
                    contiguous property is considered part of the homeplace.




VOLUME I - TANF MT 2 - 10/02                                                   PAGE 1520-1
FINANCIAL ELIGIBILITY CRITERIA                                             REAL PROPERTY


BASIC
CONSIDERATIONS
(cont.)

          Homeplace Homeplace property is exempt from consideration as a resource.
             (cont.)
                     The homeplace remains exempt when temporarily unoccupied for the
                     following reasons, provided the AU intends to return:

                          employment
                          training
                          illness
                          vacation
                          uninhabitability caused by casualty or natural disaster
                          absence due to domestic violence.

                       Refer to Chart 1520.1 for treatment of homeplace property that is
                       temporarily unoccupied.

                       If the homeplace remains unoccupied for longer than 12 months, the
                       absence must be reevaluated to determine if there is still an intent to
                       return home and the absence continues to be temporary.

                       If an AU currently does not own a home, the value of a lot purchased to
                       build a home is excluded for 12 months. The value of a partially built
                       home is also excluded for 12 months if the AU currently does not own
                       another home.

   Sale of Homeplace The proceeds from the sale of homeplace property must be reinvested in
            Property another homeplace within six months. Any of the proceeds not used for
                     this purpose and still available must be counted as a resource in the
                     month following the month another home is purchased but no later than
                     the second month.

                       If another home is not purchased within six months, any of the proceeds
                       still available are counted as a resource in the seventh month.




VOLUME I - TANF MT 2 - 10/02                                                       PAGE 1520-2
FINANCIAL ELIGIBILITY CRITERIA                                              REAL PROPERTY


BASIC
CONSIDERATIONS
(cont.)

     Non-Homeplace Non-homeplace property includes all land and buildings that are not
          Property homeplace property.

                        The equity value of non-homeplace property is counted as a resource.

                        The equity value is the fair market value less any indebtedness or
                        financial encumbrance.

                        The value of non-home place property must be verified. The following
                        sources may be used as verification:

                           county tax digest
                           real estate professional.

                        Mortgage books or loan papers may be used to determine indebtedness.

                     The proceeds from the sale of non-home place property are excluded
        Sale of Non- during the month of sale. Any remaining in the month following the
 Homeplace Property month of sale is a resource.

                        The accrual rights policy is applied to determine the first month in
                        which the proceeds are counted as a resource.

                        Non-home place property that the AU is making a good faith effort to
                        sell at a reasonable price may be exempt from consideration as a
                        resource.

                        A good faith effort to sell property is defined as follows:
   Good Faith Effort       actual sale attempt at a price not more than current market value
              to Sell
                                                           AND
                           listing of the property with a realtor
                                                            OR
                           appropriate advertising of the property’s availability for purchase in
                            newspapers, on the radio, etc.
                                                           AND
                           acceptance of any bona fide offer.




VOLUME I - TANF MT 2 - 10/02                                                          PAGE 1520-3
FINANCIAL ELIGIBILITY CRITERIA                                              REAL PROPERTY


BASIC
CONSIDERATIONS
(cont.)

   Good Faith Effort    The property is exempt for six months if the AU agrees to use the net
      to Sell (cont.)   proceeds from the sale to repay the cash assistance received for the
                        months in which the property was exempt.

                        A formal agreement to sell the property and repay the cash assistance
                        must be obtained. Form 144, Non-Excludable Real Property
                        Agreement, is used for this purpose.

                        The AU’s refusal to sign the Form 144 or similar document results in
                        the non-home place property being counted toward the resource limit.

                        The six-month exemption period begins as follows:

                           at application the first month of receipt of cash assistance,

                           for active cases the month following the month the property is
                            acquired.

                        Chart 1520.2 provides procedures to follow at the end of the six-month
                        exemption.

   Property Declared    Property declared unmarketable by a competent authority is excluded
       Unmarketable     as a resource.

                        Verification of the reason the property is unmarketable must be
                        obtained from a competent authority.

   Income-Producing Income-producing property is a countable resource. The income
       Real Property derived from the property is countable as income.

                        Examples of income-producing property include rental homes, even
                        when used by the AU as a vacation home, farmland, and installment
                        contracts for the sale of land or buildings.




VOLUME I - TANF MT 2 - 10/02                                                         PAGE 1520-4
FINANCIAL ELIGIBILITY CRITERIA                                         REAL PROPERTY


PROCEDURES

    Determining the   Follow the steps below to determine the countable resource value of
    Resource Value    real property.

             Step 1   Determine what real property the AU owns or that is owned by persons
                      whose resources are considered available to the AU.

             Step 2   Determine if any of the property can be exempted or excluded as a
                      resource.

             Step 3   Determine the equity value of the property by subtracting indebtedness
                      from the fair market value.

             Step 4   Apply the equity value to the resource limit.




VOLUME I - TANF MT 2 - 10/02                                                   PAGE 1520-5
FINANCIAL ELIGIBILITY CRITERIA                                                 REAL PROPERTY


 Use the following chart to determine the treatment of specific types of real property.

                                CHART 1520.1 - REAL PROPERTY

        TYPE OF REAL PROPERTY                                         TREATMENT

 homeplace - home and its outbuildings, and all     Exempt the value of the property.
 surrounding property.

 homeplace when temporarily unoccupied and          Exempt the value of the property for 12 months
 the AU intends to return.                          from the date the property became unoccupied.
                                                    Reevaluate absence in the 12th month.

 land purchased on which to build a home and        Exempt the value of the property for 12 months
 the AU does not currently own a home.              from the date of purchase. Apply the equity value
                                                    to the resource limit beginning with the 13th month.

 land purchased on which to build a home and        Apply the equity value to the resource limit.
 the AU currently owns a home

 property other than a homeplace, regardless of     Apply the equity value to the resource limit.
 whether it is income producing or not.

 property which the AU is making a good faith       Exempt the value of the property for six months if
 effort to sell.                                    the AU meets the conditions for this exemption.




VOLUME I - TANF MT 2 - 10/02                                                              PAGE 1520-6
FINANCIAL ELIGIBILITY CRITERIA                                                 REAL PROPERTY


   CHART 1520.2 - PROCEDURES TO DETERMINE RESOURCE VALUE WHEN
                   GOOD FAITH EFFORT TO SELL ENDS

             IF THE                                                THEN

property is not sold during the six-   terminate cash assistance the month following the sixth
month period or ineligibility          payment month
results because of another reason
                                                                    OR
                                       Terminate cash assistance the appropriate month when
                                       ineligibility results for another reason.
                                                                    AND
                                       Create an overpayment for the amount of cash assistance
                                       paid for the months the property was exempt.

property is sold during the six-       Determine the net proceeds received from the sale of the
month period                           property (selling price less expenses).

                                       Recoup in a lump sum the amount of cash assistance paid for
                                       the months the property was exempt.

                                       EXCEPTIONS:

                                       (a) If the total of the net proceeds from the sale of the
                                       property, together with all other resources owned by the AU
                                       at the beginning of the six-month period, is less than $1000,
                                       no overpayment exists.

                                       (b) If the amount realized from the sale is less than the cash
                                       assistance received, the repayment amount is the selling
                                       price less expenses.

                                       Determine continued eligibility on the amount of funds
                                       remaining as a resource.

NOTE: Treat any overpayment as nonfraudulent.




VOLUME I - TANF MT 2 - 10/02                                                            PAGE 1520-7

								
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