Temporary Assistance/Case Management Manual – Table of Contents

0205.005.30.15 Involuntary Conversion of Real Property

Treat involuntary conversion of real property into personal property as follows.

Apply the following to Temporary Assistance participants, not to applicants.

Consider any proceeds from involuntary conversion of real property into personal property (such as forced transfer under condemnation; eminent domain; and fire, flood, or other acts of God) received by a family while receiving cash benefits.  Receipt means actual receipt of the proceeds or the payment into court of the proceeds.  EXCEPTION:  In condemnation cases where the initial exception to the com-missioner’s award is filed by the condemning authority, receipt means receipt of an award under a final judgment.

Consider the following in administering this section of the law.

  1. Determine whether property is taken by condemnation or eminent domain based on whether or not the property has been sold to a governmental agency or a public utility authorized to acquire property by eminent domain.  It is immaterial whether such property was acquired by purchase or through condemnation proceedings.
  2. Fire, flood, or other acts of God are interpreted as also including destruction of real property by wind or storm.  For a payment received from an insurance company, apply the same exemption as described below for property sold under eminent domain.
  3. Do not consider money or other payment received as a result of actions described in items 1 or 2 above in determining the amount of equity owned by a participant until one year from the date payment is received.  The date of receipt is defined (except as stated below in 4) as the date on which the payment was made to the Clerk of the Court or to the recipient.  Obtain and record the actual date of receipt of such payment and inform the participant of the exemption contained in this law.  Request that the claimant notify FSD as soon as another home is purchased.
  4. An exception is made to the definition of the date of receipt in condemnation cases where the condemning authority files an appeal to the award made by the commissioner.  In such cases, the date of receipt is defined to include the period of time while the appeal is pending.  Date of receipt is the date on which payment is received as a result of a final judgment.