432-1        REAL PROPERTY

Note:

Adult Public Assistance Policy and Medicaid are different in how real property owned by an Alaska Native and American Indian is counted.  Please see ADLTC MS 524-L for more information on Medicaid Exceptions to APAAdult Public Assistance Resource Policy.  

432-1 A.   THE HOME

1. The home exclusion

An individual's home, regardless of its value, is excluded as a resource.

2. Definition of the home

An individual's home is property in which he or she has an ownership interest and that serves as the individual's principal place of residence.  A principal place of residence is the dwelling the individual considers as his or her established or principal home and to which, if absent, the individual intends to return.

The home consists of the home itself, the plot of land on which the home is located, any land that adjoins the home plot (whether or not the land is legally described as a separate plot of land), and any other buildings located on the land.  Easements and public rights of way (utility lines, roads, etc.) do not separate adjoining land from the home plot.

3. Temporary absence from the home

A home property may be excluded as a resource while the individual is not living there if:

1. The individual continues to consider it as his or her principal place of residence and intends to resume living in it; or
   
   
2. The spouse or a dependent relative of the individual continues to live there while the individual is institutionalized.

For the purpose of this exclusion, dependency may be of any kind (financial, medical, etc.).  Relative means:  a child, stepchild, or grandchild; parent, stepparent, or grandparent; aunt, uncle, niece or nephew; brother or sister, stepbrother or stepsister, half brother or half sister; cousin; or in-law.

Verification.  A written statement of an individual's intent to return to a home from which he or she is temporarily absent shall be obtained if the absence is expected to last for more than a full calendar month.  The form APAAdult Public Assistance 12, "Statement Regarding Principal Place of Residence", may be used for this purpose.

In situations where the absence is due to institutionalization, the case worker may accept the client's written statement that a spouse or dependent relative continues to reside in the home, unless there is reason to question the allegation.  If questionable, the client must provide proof of relationship and/or dependency.

432-1 B.   PROCEEDS FROM SALE OF A HOME

If an individual sells an excluded home, the proceeds of the sale are excluded from resources if the individual:

1. Plans to use them to buy another excluded home, and
   
   
2. Does so within 3 full calendar months of receiving them.

If the individual receives any part of the proceeds under an installment contract, the contract is an excluded resource for as long as the individual:

1. Plans to use the entire down payment and the entire principal portion of each installment payment to buy another excluded home; and
   
   
2. Does so within 3 full calendar months of receiving such down payment or installment payment.

The portion of either the down payment or the installment payment that represents payment against the principal balance is excluded from consideration as income.  The portion of any payment that represents interest on the principal is considered as unearned income in the month that it is received, even if it also is reinvested in the replacement home.

This exclusion is not allowed if the proceeds of the sale are not reinvested in a replacement home within the specified three-month period.

432-1 C.   JOINTLY OWNED REAL PROPERTY EXCLUSION/ HARDSHIP PROVISION

Jointly owned real property is excluded from countable resources if the sale of the property would cause undue hardship to another joint owner.

For this exclusion to apply, the property must be the other joint owner's principal place of residence, and sale of the property would have to cause the joint owner to move and not have any other housing readily available.  (Not having any other housing readily available means that the other joint owner does not own another home that is legally available for his or her occupancy.)

Verification.  A written statement from the other joint owner must be provided.  The statement must contain the following information:

1. The property is used as the other joint owner's principal place of residence; and

2. The other joint owner would have to move if the property were sold; and

3. The other joint owner has no other housing readily available.

432-1 D.   REAL PROPERTY FOLLOWING A 9-MONTH PERIOD OF CONDITIONAL BENEFITS

Real property may continue to be excluded following a 9-month period of conditional benefits if the owner continues to make reasonable efforts to sell the property.  Refer to manual section 433-2G for a detailed explanation of this policy.

432-1 E.   NATIVE RESTRICTED LAND

Certain Native Americans may hold land either individually within a rural area or community or jointly with their tribe or others in their community.  These lands are an exempt resource if they can be classified as Native Restricted Deeds, meaning they cannot be sold, transferred, or otherwise disposed of without permission from other individuals, the land-holder’s tribe, or the Bureau of Indian Affairs.  Any house or related structure (such as a garage, tool shed, outhouse, or lean-to) that is permanently attached to restricted deed land is also exempt, even if it is not used as a home.  If such a house is rented, the rental income will count for APAAdult Public Assistance purposes.  (Refer to sections 432-4 L., 432-4M and ADLTC MS 524-L. for policy on other Alaska Native and American Indian related resource exclusions.)

Note:

Verification of Native Restricted Deed status is required.  In Alaska, the Bureau of Indian Affairs is the agency that keeps records of Native Restricted Deeds.  Verification may also be available from deeds, tax assessor’s records, recorder’s office, realtors or real estate agents, mortgage or escrow documents, or signed surveyors records or reports.

432-1 F.   DINGELL ACT LANDS

Certain Alaska Native Americans who served in the Armed Forces during the period between August 5, 1964, and December 31, 1971 and haven't received a Native Allotment may receive up to 160 acres in Alaska from the Dingell Act.  This land is an exempt resource.