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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 540 Deeming of Resources

Change of intent to repair/replace is irrelevant during the 9 month exclusion but, if during an extension of the exclusion the individual’s intent to repair/replace is changed, the funds and all of the accrued interest will become fully countable as a resource on the first day of the month following the month of changed intent. When the exclusion period (and extension, if applicable) has expired and the individual has not repaired/replaced the resource, the cash funds and interest will be a countable resource the first day of the month following the month of expiration. If the payment has been in-kind support and maintenance (e.g., an individual has been furnished shelter because his home was destroyed by fire and the individual decides not to replace the home), the in-kind support will be considered income in the month following the end of the 9 month period or, if an extension was granted, in the month following the month of changed intent. 5. Proceedsof Loan Proceeds of a loan which is subject to repayment are not income to the individual; however, unused loan proceeds accrued into themonth following their receipt become a countable resource. 6. Proceeds from Sale of Resource Proceeds from the sale of a resource are not income to the individual; it is considered a conversion of a resource (see #3 above). Proceeds from the sale of a resource are countable for resource determination the month following their receipt if retained by the individual. 7. Reverse Mortgages & Home Equity Loans Any funds that the individual receives from the reverse mortgage or home equity loan are disregarded in the month received as proceeds from a loan. The funds received from a reverse mortgage orhome equity loan are counted as a resource if retained after the month of receipt. (See MS E-518) E-540 Deeming of Resources MS Manual 02/16/17

When an eligible individual resides with his ineligible spouse or ineligible parent(s) (if the applicant is a child with a disability or a child who is blind), deeming of resources from the