Requirements

Property that is Actually Available

Non-exempt real property must be considered available unless the applicant/participant can obtain and provide verification that their property is currently unavailable.

The applicant/participant must be given a reasonable period to obtain such verification.

The property is excluded from consideration during this period. The exclusion period must be determined on a case-by-case basis.

The extent to which an applicant/participant must obtain such verification should be a determining factor in establishing the exclusion period.

Whose Resources to Count

The resources of the following family members are included when determining resource eligibility:

AU Members All AU members including those who are penalized due to: Immunizations; or Intentional Program Violation (IPV) after 1/1/98.

Non-AU Members Ineligible noncitizen parents; Ineligible noncitizen siblings; and Excluded father in a Pregnant Person Only case.

Excluded People Failure to: Assign child support rights; or Verify citizen/and noncitizen status. WtW sanctioned; Social Security Number disqualified; Time expired parent(s); Fleeing felons; Probation and parole violators; and IPV prior to 1/1/98.

Whose Resources to Exclude

The resources of the following family members are excluded when determining resource eligibility:

AU Members Adults or children temporarily residing in a shelter for battered persons.

Non-AU Members Unaided stepparent and stepsiblings; Unaided senior parent(s) and their other children; and Unaided halfsiblings excluded for no deprivation.

Excluded People SSI/SSP and Cash Assistance Program for Immigrants participants; Children receiving Foster Care, Approved Relative Caregiver, Kin-GAP, Emergency Caregiver, or AB 110 payments; Non-needy caretaker relative and their spouse; Spouse of a needy caretaker relative; Siblings ineligible due to age; and Unaided, unmarried parent of a child in common for whom there is no deprivation.

Real Property Exceeds the Resource Limit

When the real property (other than a home) exceeds the resource limit, the AU must make a “good faith” effort to sell the real property, not otherwise excluded, even if the property is producing income.

The property may be exempt from consideration in the resource limit for no more than nine consecutive months.

Note: If within nine consecutive months, the applicant/participant decides not to sell the property, the property is counted toward the resource limit.

Before aid is approved/authorized, the applicant/participant must complete/sign (in duplicate), the following:

CW 81, Lien Agreement – The agreement grants a lien against the property which is payable to the County when the property is sold.

CW 82, Agreement to Sell Property – The applicant/participant agrees to immediately make a “good faith” effort to sell the property.

In order to make a “good faith” effort to sell property, the applicant/participant, at minimum, must :

List the property for sale with a licensed real estate broker and be willing to negotiate the terms of the sale with potential buyers;

Make an effort to sell property, which must include all of the following: Advertise once a week, in at least one newspaper, that the property is for sale; Place a “for sale” sign that is visible from the street; and Be willing to negotiate the price/terms of the sale with potential buyers.

Immediate Need (IN)

An applicant with excess real property, who is otherwise eligible for IN, may be issued IN payment as long as they sign the CW 81 or CW 82.

Retirement and Education Accounts

Retirement and education accounts are exempt from consideration in the property/resource.

The following accounts are exempt when evaluating property for both CalWORKs applicants and participants :

401(k);

403(b);

457; and

CalKIDS.

The following accounts are exempt when evaluating property for CalWORKs participants only :

529, College Savings Plan;

IRA; and

Educational savings accounts. Exception: CalKIDS is exempt for both applicants and participants.

Transfer of Property

The receipt of aid does not limit or restrict the right of applicants/participants to give, receive, sell, exchange, or change the form of property.

While transfer of property rules do not apply to applicant families, a POI is applied when a participant in the AU gives away or transfers, for less than the FMV, non-excluded property, including cash.

See the Procedures Section for detailed information on how to determine a POI.

Restricted Accounts

In addition to the $12,552 ( $18,829 if an individual is 60 years of age or older or disabled) property limit, a participant can maintain funds in a restricted account. There is not a limit to the amount of funds held in a restricted account. The account can be held at any financial institution, such as a bank, credit union, savings, and loan, etc.

The money in a restricted account is exempt provided the following requirements are met:

The money saved in a restricted account can only be spent for one or more of the following allowable purposes : Purchase of a home; Education or training; Startup of a new business; or Homeless prevention.

Before an account can be designated as “restricted,” the parent/caretaker relative must sign an agreement which sets forth the requirements, restrictions, and penalties: A CW 86 LA Agreement – Restricted Account, must be completed and signed which outlines the requirements, restrictions, and penalties;

Verification of the account must be provided within 30 calendar days from the date the CW 86 LA was signed and dated, which must include: Name of persons on the account; Institution; Account number; Balance and activity; and Specific purpose (purchase of a home, education or training, startup of a new business, or homeless prevention).

The applicant/participant must establish and maintain a separate account from the restricted account.

Interest Exemption

Interest earned on a restricted account is exempt as income. The interest must be deposited to the restricted account by the financial institution.

Direct Deposit: Interest that is not directly deposited into the account is a non-qualifying withdrawal.

Erroneous Receipt : When the interest is not deposited directly into the account due to a financial institution error, known as erroneous receipt, the AU is allowed 30 calendar days from the date of receipt to deposit the interest into the restricted account.

Restricted/CalABLE Account Withdrawals

Qualifying Withdrawal: The AU is allowed 30 calendar days from the date of withdrawal to spend funds and provide verification for one of the allowable purposes. Verification such as a receipt, cancelled check, or signed statement from the provider who provided goods and services, must reflect the withdrawal date and amount. .

Non-Qualifying Withdrawal: The County determines that a non-qualifying withdrawal has occurred when it is found that: Non-cooperation exists; Non-allowable purpose exists; or There is a receipt of interest income that is not deposited directly into the restricted account.

Note: Before starting a restricted account, the participant should have cash and other resources to pay for unexpected expenses. The money cannot be used to pay for emergencies, not even when the emergency is due to a death or life-threatening situation.

Good Cause: The County will determine that “Good Cause” exists for exceeding the 30 calendar-day time limit to provide verification when: Circumstances beyond the AU’s control exist; or The AU complies before the effective date of the Notice of Action (NOA).

POI: When the County determines that a non-qualifying withdrawal exists, the County must: Calculate the POI to determine how many months the participant is ineligible to receive CalWORKs benefits; and Apply the POI – The POI begins on the first day of the month of the next SAR or AR/CO Payment Period following the reported non-qualifying withdrawal on the SAR 7 or SAWS 2 PLUS and will continue for the determined number of months.

Termination of a Restricted Account

A restricted account is terminated when:

CalWORKs is terminated;

The restricted account is closed;

The participant does not provide timely verification/proof of the account information; and/or

State or federal law changes the conditions or no longer permits these restricted accounts.

CalABLE QDE Withdrawal

A QDE can be used for a medical expense as well as for basic living costs, such as:

Education;

Housing;

Transportation;

Employment training and support;

Assistive technology and personal support services;

Health;

Financial management and administrative services;

Legal services; and

Funeral and burial expense, and other expenses.

Note: In California, the CalABLE online portal was officially launched on December 18, 2018.

Vehicles

See AR 42-215 Determining Value of Property - Vehicles

Sponsored Noncitizens

Sponsored Noncitizens: The property of the noncitizen’s sponsor and those of the sponsor’s spouse who lives with the sponsor are treated as the sponsored noncitizens resources.

Multiple Sponsored Noncitizens: When there are multiple sponsored noncitizens, the deemed resources from the sponsor must be divided by the total number of sponsored noncitizens receiving CalWORKs, including the number of sponsored noncitizens in the applicant’s AU.

Trust Funds

Resources which have a cash value that are not accessible to the AU may include irrevocable trust funds.

Any funds in a trust and income produced by the trust are considered inaccessible to the AU if all of the following are met:

The trustee administering the funds is a court, institution, corporation, or organization which is not under the direction/ownership of an AU member or an individual appointed by the court who has imposed limitations;

The funds held in an irrevocable trust are: Established from the AU’s own funds (funds must be used to make investments on behalf of the trust or pay educational/medical expenses) of any AU member named by the AU who created the trust; or Established from a non-AU member funds by a non-AU member regardless of how funds will be used.

The trust investments do not involve/assist any business/corporation under the control/direction/influence of an AU member;

The trust arrangement will not end during the RE period; and

An AU member does not have the power to revoke the trust arrangements/change the name of the beneficiary during the RE period.

PSU

Real Property :

Eligibility staff can initiate a referral to the PSU via email when the assessed value of real property is not known, or when the property is over the limit and the ownership of the property is questionable. This includes situations in which records are complex or unclear.

For additional information regarding the PSU referral process and support services provided by the PSU, refer to the Office Operations: DPSS Property Services Unit.

Real property can include a home or land, and can also include property that is:

Outside of the U.S.;

In another state when the assessment rate is unknown;

Located in military occupied areas; or

Jointly owned by parents who are separate.

Personal Property

A referral to the PSU should be initiated when the ownership of personal property is questionable. Personal property can include vehicles, bank accounts, or stock.

The PSU can verify ownership; however, the PSU is not able to verify account balances or confirm motor vehicle value.

As a result, the PSU should only be contacted for personal property when:

Ownership of the property is questionable and

The value of the property is over the limit or

The value is not known but is believed to be over the property limit (once ownership is confirmed by the PSU, acceptable verification to verify the value would be requested from the applicant/participant).

For additional information regarding the PSU referral process and support services provided by the PSU, refer to the Office Operations: DPSS Property Services Unit.