432-1        REAL PROPERTY

 

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

 

  1. 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 APA 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.   HOME REPLACEMENT FUNDS

 

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

 

  1. 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

 

  1. 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.   RESTRICTED ALLOTTED INDIAN LANDS

 

Allotted land, owned by an individual who is of Indian descent from a federally recognized Indian tribe, is an excluded resource if the individual cannot legally sell, transfer, or otherwise dispose of it without permission from other individuals, his or her tribe, or an agency of the Federal Government.  (Refer to sections 432-4L and 432-4M for policy on other Indian-related resource exclusions.)

 

Verification.  The status of allotted land must be verified with the appropriate Indian agency.  In Alaska, the Bureau of Indian Affairs (BIA Bureau of Indian Affairs) is the agency that keeps records of restricted allotted land.

 

 

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