Exclude the value of property that is considered a resource if the household is making a good faith effort to sell.
- Exclusion of excess real property is applicable as follows:
- An applicant owns real property, not excluded, that either alone or in combination with other resources exceeds the resource maximum of $1,000. Establish all other eligibility factors prior to allowing this exclusion.
- A participant either owns or acquires real property not excluded that in combination with other resources either owned or acquired exceeds the resource maximum. The notice of adverse action to close the case due to excess resources informs the claimant of retaining eligibility if s/he makes a good faith effort to sell the property.
- Exclusion of excess real property is not applicable as follows.
- If resources (excluding real property) exceed the resource maximum, the participant is ineligible on resources.
- If equity in real property does not exceed the resource maximum and the participant has other resources that are easier to dispose of (such as cash and securities), inform them of their choices. Never advise the participant as to disposition. Leave this decision to the family.
EXAMPLE: An applicant has equity in real property of $500, equity in a second car $300 over and above the $1,500 exemption, and $400 in cash and securities. The applicant is otherwise eligible and, if approved, would receive a maximum grant for three people.
If the applicant instead uses cash and securities to deplete resources to $1,000 or less, s/he must use $200 before gaining eligibility.