602-2 C. VEHICLES
Most vehicles are exempt based on their use by the household. If a vehicle is not exempt, its equity value counts in the resource determination.
A vehicle is any passenger car or other motorized vehicle used to provide transportation of persons or goods. This includes cars, trucks, recreational vehicles (RVs), boats, snow machines, all-terrain vehicles (ATVs), motorcycles, airplanes, or other motorized vehicles.
Most vehicles are NOT counted if they are intended to be used for one of the following reasons:
a. For family transportation to meet the household’s basic needs, such as getting food, medical care or other essentials. This includes vehicles used:
For subsistence hunting and fishing (see MS 600-2).
To carry the household's primary source of heating fuel or primary source of water.
b. To transport a household member to and from work, school, training, or a work activity such as community work service or job search
c. As the household's home.
d. To produce self-employment income.
e. To transport a disabled household member or disabled excluded household member whose income and resources are considered available to the household. Disabled, in this section, covers both permanent and temporary disabilities. For instance, it includes disabilities caused by chemotherapy, a broken leg, and respiratory illnesses. The vehicle need not have special equipment or be used primarily for transportation of the disabled person.
Example:
Household with one adult living in Fairbanks
owns two vehicles including one truck and one motorcycle. He uses both
vehicles to get to and from the store and to look for work – the truck
in the winter and the motorcycle in the summer. Both vehicles are
exempt since they are used for family transportation and job search activities.
Verification:
Accept client statement regarding use unless questionable (See MS 601-4C for the definition of questionable information). If there are more vehicles than the number of drivers in the household or the vehicles are not in current use, obtain more information to determine why they are needed and how they intend to use them.
A vehicle that is not exempt under this section counts against the resource limit. The countable amount is the owner’s equity (fair market value minus the amount owed on the vehicle).
Note:
The vehicle is exempt regardless of use when its equity value (fair market
value minus amount owed) is $1,500 or less. Refer to MS 602-2B(27).
The vehicle value does not include optional equipment, nor does it include shells or campers that are mounted on the vehicle. Shells are excluded as personal effects; see MS 602-2B(2). Campers are countable resources; see MS 602-2A(2).
Verification:
The fair market value and amount owed must be determined. Acceptable evidence of the value and amount owed includes a statement from the household, lien holder, or other reasonable evidence.
The caseworker must document how they determined the owner’s equity value of the vehicle.
If the caseworker finds the client’s statement of a vehicle’s value questionable (including circumstances where the value seems too high and makes them ineligible), they can verify the vehicle’s value by:
a. Using the NADA Appraisal Guides on the Internet at www.NADAguides.com. (Refer to the Administrative Procedures Manual section 105-15 for procedures for using the NADA web site.) The fair market value is the base amount quoted as Average Trade-in or Low Retail.
b. Getting an appraisal from a local dealer.
c. Using local newspaper ads, community bulletin boards or other local advertisements giving the selling price for similar vehicles. or,
d. In remote areas, using collateral contacts from a disinterested knowledgeable source, such as a bank, village council, store owner, merchant or dealer.
If the household questions the value assigned to their vehicle, discuss with them the reason they think the vehicle is worth less and document this information in the case file. For example, they may explain that the vehicle is not running or needs significant repairs. Accept the household's stated value unless the explanation provided is questionable (See MS 601-4C for the definition of questionable information).
Example 1:
Judy Jetson’s application states she
owns a 2003 Toyota Camry used to get to work and a 1995 Suzuki motorcycle
that her son uses for recreation. She values the Toyota at $5,000
but it is exempt because it’s used for transportation. She states
the motorcycle is worth $2,100 because that’s what she paid for it 5 years
ago. The motorcycle would make the household ineligible but the
estimated price seems high to the caseworker. They check NADA and
find the motorcycle is actually valued at only $1,395. The motorcycle
is exempt because it is valued at less than $1,500.
Used vehicles such as boats, snow machines, and ATVs that might be salable in urban Alaska may not be salable in remote areas. This does not make such vehicles exempt from consideration as a resource, but it may result in a determination that a vehicle has little or no market value in the community.
Caseworkers will determine fair market and equity values for vehicles in remote areas based on:
1. The local market conditions and circumstances that exist in the community, including the presence or absence of a significant cash economy. (How much would the vehicle sell for as is, where is? What are other vehicles of its type selling for in the community?);
2. Accessibility of parts and repair service; and,
3. Information provided by the household.
If the caseworker determines that a countable vehicle is not salable in the community, the vehicle’s resource value is zero.
Verification:
The caseworker must document how they determined whether a vehicle is countable or exempt. The equity value of a countable vehicle must be determined. Acceptable evidence of the vehicle’s equity value includes a statement from the householder, lien holder, or other reasonable evidence.
If the joint owner does not live with the household, has possession of the vehicle, and is unwilling to sell the vehicle, it is considered an unavailable resource.
When a vehicle is in a household members name but they claim the vehicle belongs to someone else it is possible to exempt the vehicle. In this situation the caseworker must ask more questions such as:
Who has possession of the vehicle?
Why is the vehicle in your name?
Who is making payments on the vehicle?
Who maintains the vehicle?
Example:
At application Jack reports he has two
vehicles in his name: A 2004 Ford F150 used to get to work and a
2006 Bayliner that he states really belongs to his brother-in-law, Joe.
The boat is in Jack’s name because Joe has bad credit and couldn’t
get a loan. However, the boat is in Joe’s possession and he makes
all the payments himself. The case worker speaks to Joe who confirms
the information. The boat is not a countable resource to Jack.
Verification:
The caseworker must document the reason he or she determined the vehicle belongs to someone else.
Vehicles in Another State
A vehicle in another state is a countable resource unless the vehicle can be exempted under MS 602-2C. For example, the household must have plans to continue to use the vehicle for a reason listed in MS 602-2C(1) on a periodic basis in order for the vehicle to retain its exempt status.
Vehicles residing in another state due to a recent relocation are not countable if the intent is to relocate and register the vehicle in Alaska within a reasonable time period
Verification:
The caseworker must document why the vehicle is located in another state, as well as future plans for the vehicle.
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