Legal basis: POMS SI 01130.110
When a participant sells an excluded home, the proceeds of the sale are an excluded resource if the participant:
- plans to use the funds to buy another excluded home; and
- does so within 3 full calendar months of receiving them. “Within 3 full calendar months” means by the end of the last day of the third month after the month in which the funds are received
Use of proceeds to buy another excluded home includes payment of any costs that stem from the purchase. These include, but are not limited to:
- Down payment;
- Settlement costs;
- Loan processing fees and points;
- Moving expenses;
- Necessary repairs to or replacements of the new home’s structure or fixtures that are identified and documented prior to occupancy; and
- Mortgage payments
Example: Ms. Hollis sells her home on January 20th and reports receipt of the proceeds on January 25th. Since she stated her intent to purchase a new home with these funds, the funds can be excluded for three full months following receipt. The exclusion expires on April 30th. On March 2nd, Ms. Hollis reports she purchased a new home and has $10,000 left. She explains it needs a roof, and she retained $10,000 for this purpose. She anticipates the work to be complete by mid-April. On April 30th FSD staff contact Ms. Hollis to inquire about any funds remaining from the sale of her original home. She states the roof work is complete and she has exhausted all of the funds. She will provide documents showing the expenditures for the purchase of her new home and the roof repairs.
- If Ms. Hollis had not intended to spend the funds on a new home, they would be a countable resource beginning the first of the month following receipt
- If Ms. Hollis had not intended to spend the $10,000 remaining from the sale of her original home on expenses related to the purchase of the new home, the $10,000 would have been a countable resource beginning the first of the month following receipt