1025.000.00 Cash and Securities (OAA and PTD)

1025.015.03 Involuntary Conversion of Real Property Into Personal Property

IM-32 March 12, 2013

RSMo 208.020 states: “Any proceeds from involuntary conversion of real property into personal property (such as forced transfer under condemnation, eminent domain, and fire, flood, other act of God, or the like) received by a recipient while eligible to receive public assistance benefits under existing laws shall be exempt for a period of one year from the date of receipt of the proceeds. For the purposes of this section, the word ‘receipt’ means actual receipt of the proceeds or the payment into court of the proceeds, except that in condemnation cases where the initial exception to the commissioner’s award is filed by the condemning authority, the word receipt means ‘receipt’ of an award under a final judgment.”

The proceeds would be entered in FAMIS as Resource Class LR Liquid Resources with MHABD Excl Rsn IC INVOLUNTARY CONVERSION OF REAL PROPERTY

Consider the following points when there has been an involuntary conversion of real property:

  • This section applies to applicant/participants for whom OAA, PTD, or AB eligibility criteria are being used at the time of the involuntary conversion of real property.
  • Determination of whether property is taken by ‘condemnation’ or ’eminent domain’ is based on whether the property was sold to the government, a governmental agency, or a public utility with the authority to acquire property by eminent domain. It is immaterial whether such property was acquired by purchase or through condemnation proceedings.
  • The phrase ‘fire, flood, or other act of God’ is interpreted to include destruction of real property by wind or storm. Give payment received from an insurance company the same exemption as for property sold under eminent domain.
  • When determining a recipient’s available cash or resources, do NOT consider money or other payment received for property as a result of ‘condemnation’ or ’eminent domain’ proceedings, or destruction by an act of nature until one year from the date payment was received.
  • In condemnation cases where the condemning authority files an appeal to the award made by the commissioner, the definition of ‘date of receipt’ includes the period of time the appeal is pending. The date of receipt is the date on which payment is received by the Clerk of the Court, or the recipient as a result of a final judgment. Obtain the actual date of receipt of such payment.
  • At the end of one year from the date on which payment was received, the payment is no longer excluded from available resources. Continued eligibility must be determined as for any other case.