752-10        VEHICLES

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 (ATVAll Terrain Vehicles), motorcycles, airplanes, or other motorized vehicles.

Vehicles may or may not be exempt depending on their use. If a vehicle is not exempt, its equity value counts in the resource determination.

752-10 A.   EXEMPT VEHICLES

Most vehicles are NOT counted if they are intended to be used for one of the following reasons:

1. For family transportation to meet the family’s basic needs, such as getting food, medical care or other essentials.  This includes vehicles used:

• For subsistence hunting and fishing, if the family customarily and traditionally depends on hunting or fishing for a substantial portion of their food needs; and 
• To carry the household's primary source of heating fuel or primary source of water;

2. To go to and from work, school, training, or a work activity such as community work service or job search; 

• As the family’s home; 
• To produce self-employment income, as described in ATAPAlaska Temporary Assistance Program MSManual Section 753-4; or 
• To transport a disabled household member, whether or not they are part of the assistance unit. "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 individual.

Example:

A family 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.  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.

752-10 B.   COUNTABLE VEHICLES

A vehicle that is not exempt counts against the resource limit.  The countable amount is the owner’s equity (fair market value minus the amount owed on the vehicle).

The vehicle value does not include optional equipment, nor does it include shells or campers that are mounted on the vehicle. Shells and campers are considered separately, under ATAPAlaska Temporary Assistance Program MSManual Section 753-3.

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 he or she 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:

1. Using the NADANational Automobile Dealers Association Appraisal Guides on the Internet at www.NADAguides.com.  (Refer to the Administrative Procedures Manual section 105-15 for procedures for using the NADANational Automobile Dealers Association website.)  The fair market value is the base amount quoted as Average Trade-in or Low Retail.
2. Getting an appraisal from a local dealer.
3. Using local newspaper ads, community bulletin boards or other local advertisements giving the selling price for similar vehicles. or,
4. In remote areas, using collateral contacts from a disinterested knowledgeable source, such as a bank, village council, store owner, merchant or dealer.
5. 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 ATAPAlaska Temporary Assistance Program MSManual Section 700-4B 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 NADANational Automobile Dealers Association and find the motorcycle is actually valued at only $1,395.The motorcycle’s equity value counts towards the resource limit.

Example 2:

Fred Flintstone submits an application for his family.  He reports they own a 2005 Ford F150 used for him to get to work and a 2006 Honda Accord that his wife uses to take the kids to school and do the shopping.  When the family applied for assistance 9 months ago, they also owned a 2000  Bayliner.  When Fred was asked about the boat at his interview, he stated he sold it 4 months ago.  He stated he did not have proof of the sale. DMVDivision of Motor Vehicles records on IEVSInstant Eligibility Verification System shows the boat is still registered to Mr. Flintstone.  The caseworker then looks the boat up on NADANational Automobile Dealers Association and finds the value is $3,600.  The caseworker must give the family an opportunity to verify the sale of the boat before determining eligibility.

752-10 C.   VEHICLES IN REMOTE AREAS

Used vehicles such as boats, snow machines, and ATVAll Terrain Vehicles 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 value for vehicles in remote areas based on:

• 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?);
• Accessibility of parts and repair service; and
• Information provided by the client.

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 he or she 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 family, lien holder, or other reasonable evidence of the current value of the vehicle.

752-10 D.   JOINTLY OWNED VEHICLES

Jointly owned vehicles are treated like other jointly owned resources, as described in ATAPAlaska Temporary Assistance Program MSManual Section  752-2.

If the joint owner does not live with the family, 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 caseworker 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.

752-10 E.   INACCESSIBLE VEHICLES

Vehicles in Another State:

A vehicle in another state is a countable resource unless the vehicle can be exempted under ATAPAlaska Temporary Assistance Program MSManual Section 752-10A. For example, the household must have plans to continue to use the vehicle for a reason listed in ATAPAlaska Temporary Assistance Program MSManual Section 752-10A 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.