REAL PROPERTY (FAM)

SR 14-04 Dated 01/14

Previous Policy

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Real estate in the form of land or buildings. The treatment of real property varies depending on the type of property it is.

The various types of real property are listed below with the appropriate treatment:

• BURIAL PLOTS

Treatment: See the alphabetical listing titled Burial Plots.

• HOME

Real property consisting of the house or mobile home and any land or buildings that are owned and occupied as the residence of the assistance group. However, in order for land to be considered as part of the home, it must be adjacent to the lot on which the house rests. The adjoining land will still be considered adjacent even when it is divided by a road or the boundary of a political subdivision.

A vehicle used as an assistance group’s home is treated as a home rather than a vehicle.

Treatment: Excluded Resource

*

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• INCOME-PRODUCING PROPERTY

The equity value of all real property other than the home and burial plot is counted as a resource.

Treatment: Countable Resource. If the individual is over resources, allow the individual to dispose of the property in accordance with the disposal policy below.

• JOINTLY OWNED REAL PROPERTY

Real property which is owned jointly with a non-assistance group member.

Treatment: Counted Resource. If the individual is over resources, allow the individual to dispose of the property in accordance with the disposal policy below.

Exception: If the terms of ownership prevent unilateral sale or disposition and the other owner refuses to sell of the property, the property is considered an inaccessible resource.

• UNOCCUPIED REAL PROPERTY

The home temporarily unoccupied by all members of the assistance group due to temporary absence.

Treatment: Excluded Resource

The home permanently unoccupied by the assistance group or any other unoccupied real property that is not considered an inaccessible resource due to the terms of joint ownership.

Treatment: Counted Resource. If the individual is over resources, allow the individual to dispose of the property in accordance with the disposal policy below.

• VACATION PROPERTY

A home used part of the year that does not produce income consistent with its fair market value.

Treatment: Count the equity value. If the individual is over resources, allow the individual to dispose of the property in accordance with the disposal policy below.

PROVISIONAL ASSISTANCE DURING DISPOSAL OF REAL PROPERTY

Individuals over the resource limit because of countable real property may receive provisional assistance if they try to dispose of the countable real property in excess of limits. Do not count the property as a resource during the disposal period. The individual—not DHHS—is responsible for disposing of real property.

Individuals whose eligibility is denied or terminated because of excess resources must verify how the resources were spent before assistance can be granted.

• *Provisional assistance requires that the individual dispose of real property. Use the following steps.

1.  The individual must make a good faith effort to sell the property within 6 months of being notified. Good faith means the individual must genuinely attempt to sell the property and cannot refuse a reasonable offer.

2.  Deny or terminate assistance if the individual refuses to make the good faith effort.

3.  Exclude the equity value of the property during the disposal period.

4.  Follow up before the end of the six-month disposal period to determine if the property has been sold. Property counts as of the first day of the seventh month unless an extension has been granted.

- If the individual can demonstrate valid reasons for inability to sell the property, the DFA supervisor can extend the period for another 3 months.

- If the individual cannot demonstrate a good faith effort to sell the property, do not allow an extension period. Count the equity value of the property as a countable resource.

5.  When the property is sold, count the net proceeds from the sale of the property as a lump sum resource.

• *Financial assistance provided to recipients during the disposal period is considered an overpayment. Recipients must complete and sign DFA Form 763, TANF Real Property Disposal and Reimbursement Agreement, agreeing to dispose of the property and reimburse the state for the overpayment. The reimbursement cannot exceed the net proceeds of the property.

If the property has not sold during the disposal period or eligibility ends for any other reason, the entire amount of assistance paid during the period is subject to recoupment. The disposal period begins with the date the individual signed DFA Form 763.