IM-120 08/15/00 FOOD STAMP VEHICLE POLICY REVISION
| SUBJECT: |
| FOOD STAMP VEHICLE POLICY REVISION
FOOD STAMP MANUAL REVISION #24 SECTION 1110.020.10 SECTION 1110.020.20 |
| DISCUSSION: |
| Effective August 16, 2000, exclude licensed
vehicles as inaccessible resources when the equity in the vehicle is less
than one-half of the resource standard for the household.
A more flexible resource policy with respect to vehicle ownership will greatly assist individuals and families in achieving self-sufficiency. Too many times low-income working households face the choice of disposing of a dependable vehicle or doing without the important nutritional support food stamps provide. Proposed regulations allow some households with licensed vehicles of moderate value to participate in the Food Stamp Program, if they are otherwise eligible and have equity in the vehicles of less than one-half of the applicable resource standard. Missouri's waiver request to implement this before the proposed regulations are finalized is approved. Determine whether a licensed vehicle may be excluded as an inaccessible resource when exclusion of the entire market and equity value is not met in another way. Accept the household's statement of the amount owed based on total payments remaining on the vehicle when determining the equity, unless questionable. EXAMPLE 1: A household with no elderly members is making payments on a licensed 1994 car with a fair market value of $7,000. The vehicle does not meet one of the other exclusion criteria. The household owes $6,500 on the car, resulting in equity of $500 (fair market value minus debt) in the car. As the household s equity in the vehicle is less than $1,000 (one-half the resource standard for the household), the entire value of the vehicle is deemed to be an inaccessible resource and the vehicle is exempt from consideration as a resource. EXAMPLE 2: A household with an elderly member has a licensed 1997 vehicle with a fair market value of $8,000. The vehicle does not meet one of the other exclusion criteria. The household owes $6,800 on the car, resulting in equity of $1,200 in the car. As the equity is less than $1,500, the entire value of the vehicle is deemed to be an inaccessible resource and the vehicle is exempt from consideration as a resource. EXAMPLE 3: A household with no elderly members has two licensed vehicles. The vehicles do not meet any other exclusion criteria. The first vehicle, a 1996 minivan, has a fair market value of $7,500 and the household states that the remaining payments total $6,700. The household s equity in the vehicle is $800. The second vehicle, a 1997 coupe, has a fair market value of $8,000 and the household owes $7,500, resulting in equity of $500. As the equity in each vehicle is under $1000, each vehicle is excluded as a resource. EXAMPLE 4: A household owns a licensed vehicle with a fair market value of $500. The household has no debt on the vehicle. The vehicle is excluded as a resource. If the equity in the licensed vehicle is equal to or greater than one-half the applicable resource standard for the household, the vehicle does not qualify as an inaccessible resource and does not meet this exclusion. When a licensed vehicle does not meet any exclusion, consider it as a resource following current vehicle policy. EXAMPLE 5: A household with no elderly members has a licensed 1993 station wagon with a fair market value of $4,500 and no debt on the car. Although the vehicle is not excluded as a resource since the equity in the vehicle is equal to or greater than $1,000, the vehicle has no excess fair market value (4,500 -$4,650 = $0) to consider as a resource. EXAMPLE 6: A household with an elderly member has a 1995 car with a fair market value of $6,200. The vehicle does not meet one of the other exclusion criteria. They owe $2,200 on the car, resulting in $4,000 equity in the car. As the equity is equal to or is greater than $1,500, the inaccessible resource provision does not apply. The vehicle is evaluated according to its excess fair market value ($6,200 - $4,650 = $1,550 countable as a resource). |
| NECESSARY ACTION: |
MRT Distribution # 3 |