Definitions

Encumbrances

For purposes of determining the equity value of the AU’s motor vehicle(s), the encumbrance is the amount that the AU is obligated to pay for the vehicle, or the amount owed on the vehicle.

Fees that must be paid in order to have the vehicle’s ownership transferred, for overdue registration, or other changes, are not considered encumbrances when determining equity value.

Equity Value

Equity is the amount of the FMV of the vehicle less encumbrances.

U.S. Transportation CPI

The $33,626 equity threshold will be adjusted upward annually on July 1st of every year, based on an increase, if any, in the U.S. Transportation CPI for all Urban Consumers.

CalWORKs Program will continue to notify staff when future adjustments are made to the equity threshold.

Leased Vehicle

A lease/purchase option vehicle is not regarded as a resource until a transfer of ownership occurs. A vehicle reported as a leased vehicle is considered a vehicle exemption, and not property. The CW 80 must still be completed.