49-040 RESOURCES

.1 To be eligible for CAPI, an individual’s or couple’s non-excludable resources must not exceed $2,000 for an individual or $3,000 for a couple. .11 Detailed resource rules are found in 20 CFR, Part 416, Subpart L. Effective 10/16/03 .2 The definition of resources for CAPI purposes is the same as the one used for SSI/SSP and is found in 20 CFR 416.1201(a) and (a)(1). HANDBOOK BEGINS HERE .21 20 CFR 416.1201(a) states: "(a) Resources; defined. For purposes of this subpart L, resources means cash or other liquid assets or any real or personal property that an individual (or spouse, if any) owns and could convert to cash to be used for his or her support and maintenance." .22 20 CFR 415.1201(a)(1) states: "(a)(1) If the individual has the right, authority or power to liquidate the property or his or her share of the property, it is considered a resource. If a property right cannot be liquidated, the property will not be considered a resource of the individual (or spouse)." .23 20 CFR 416.1201(b) states: "(b) Liquid resources are cash or other property which can be converted to cash within 20 days, excluding certain nonwork days as explained in 20 CFR 416.120(d). Examples of resources that are ordinarily liquid are stocks, bonds, mutual fund shares, promissory notes, mortgages, life insurance policies, financial institution accounts (including savings, checking, and time deposits, also known as certificates of deposit) and similar items. Liquid resources, other than cash, are evaluated according to the individual's equity in the resources." .24 20 CFR 416.1201(c) states: "(c) Nonliquid resources are property which is not cash, and which cannot be converted to cash within 20 days excluding certain nonwork days as explained in 20 CFR 416.120(d). Examples of resources that are ordinarily nonliquid are loan agreements, household goods, automobiles, trucks, tractors, boats, machinery, livestock, buildings and land. Nonliquid resources are evaluated according to their equity value except as otherwise provided. (See 20 CFR 416.1218 for treatment of automobiles.)" .25 20 CFR 416.1201(c)(2) defines equity value of an item as: "(c)(2) The price that item can reasonably be expected to sell for on the open market in the particular geographic area involved, minus any encumbrances." HANDBOOK ENDS HERE Effective 10/16/03 .3 In determining the resources of an individual or couple the following items are excluded: (a) The home and any adjoining land, and related outbuildings as long as the applicant recipient is residing in the home. (b) Household goods and personal effects to the extent their total equity value does not exceed $2,000. (1) A wedding ring, an engagement ring, and any device such as a wheelchair, hospital bed, or dialysis equipment that is needed due to the applicant’s physical condition is excluded in determining the value of household goods and from resources in general. (2) If the individual alleges no items of unusual value or only one such item with a current market value of $1,000 or less, absent evidence to the contrary, accept the allegation and assume the total equity value of all household goods and personal items is $2,000 or less. (c) One automobile if it meets one of the following conditions: (1) It is necessary for employment. (2) It is necessary for the medical treatment of a specific or regular medical problem. (3) It is modified for operation by or transportation of a handicapped person. (4) It is necessary to perform essential daily activities. (5) Its current market value does not exceed $4,500. (A) If the market value exceeds $4,500, only the excess is counted against the resource limit. (d) Property of a trade or business that is essential to the means of self- support. (e) Non-business property essential to the means of self support if the person’s equity is less than $6,000 and the property produces a net annual income to the individual of at least 6 percent of the excluded equity. (f) Resources of a blind or disabled person which are necessary to fulfill an approved plan for achieving self support. (g) Stock in regional or village corporations held by Alaskan natives. Effective 10/16/03 (h) The cash surrender value of life insurance policies if the combined face values of the policies do not exceed $1,500 for any one person. (1) In determining the face value of the life insurance policies, term insurance will not be taken into account. (i) Restricted allotted Indian lands. (j) Payments as required by other federal statutes (see 20 CFR 416.1236 for a detailed list). (Examples include, but are not limited to, Food Stamps, federal housing and utility assistance, and certain payments to Native Americans.) (k) Disaster relief assistance and any interest earned on the assistance. (l) Burial spaces and burial space items. HANDBOOK BEGINS HERE (1) 20 CFR Sections 416.1231(a)(2) reads: "Burial spaces defined. For purposes of this section "burial spaces" include burial plots, gravesites, crypts, mausoleums, urns, niches and other customary and traditional repositories for the deceased's bodily remains provided such spaces are owned by the individual or are held for his or her use. Additionally, the term includes necessary and reasonable improvements of additions to or upon such burial spaces including, but not limited to, vaults, headstones, markers, plaques, or burial containers and arrangements for opening and closing the gravesite for burial of the deceased." HANDBOOK ENDS HERE (m) Up to $1,500 each set aside for burial expenses of the individual or the individual’s spouse. (1) The funds must be kept separate from all other resources and clearly designated for the individual’s or spouse’s burial expenses. (2) If the individual is an eligible child, the exclusion also includes burial funds set aside for the child’s parent or parent’s spouse. (n) Title II Social Security, SSI/SSP (received by a spouse or parent), or CAPI retroactive payments for 6 months following the month of receipt. Effective 10/16/03 (o) Earned income tax credits for the month following the month of receipt. (p) Federal Housing subsidies. (q) Payments from a state fund to aid victims of crime for a period of 9 months following the month of receipt. (r) Relocation assistance for a period of 9 months following the month of receipt. .4 The resources of any applicant or recipient include the resources of a spouse who is living in the same household regardless of whether or not the resources are actually made available to the applicant or recipient. .5 The resources of any applicant or recipient under the age of 18 are deemed to include the resources of any ineligible parent (or the ineligible spouse of such parent) who is living in the same household as the child regardless of whether or not the resources are actually made available to the applicant or recipient. .51 The resources from the parent are deemed to the child only to the extent they exceed: .511 The resource limit for an individual when the child lives with just one parent. .512 The resource limit for a couple when the child lives with both parents (or one parent and the parent’s spouse). .6 The following exclusions apply to resources to be deemed from an ineligible spouse or ineligible parent: .61 The same resource exclusions listed in MPP Section 49-040.3. .62 Pension funds belonging to an ineligible spouse or parent. .621 Pension funds are defined as funds held in individual retirement accounts (IRA) or in work-related pension plans (including Keogh plans). .7 The resources of any non-citizen are deemed to include the resources of the non-citizen’s sponsor(s) regardless of whether they live in the same household and regardless of whether the sponsor(s) actually make the resources available to the applicant or recipient. .71 The same resource exclusions listed in MPP Section 49-040.3 apply to the sponsor(s)’ resources. Effective 10/16/03 .72 The resources of the sponsor’s spouse are also included if the sponsor and his or her spouse live in the same household. .73 The resources of the sponsor (and spouse, if any) are only counted to the extent they exceed the applicable resource limits of $2,000 for an individual or $3,000 for a couple. .74 Refer to Section 49-037 for detailed instructions on when sponsor deeming applies, length of sponsor deeming periods, and exceptions to sponsor deeming. .8 Resource determinations are made as of the first moment of the month based on what assets an individual has, what their values are, and whether any of the items can be excluded as of the first moment of the month. .81 Any increase or decrease in the value of a resource during the month is counted as of the first moment of the next month. .82 Items received during a month are counted first under the income rules and then if retained, counted as a resource as of the first moment of the following month. .83 If an applicant or recipient sells, exchanges, or replaces a resource, the receipts are not income. They are still considered to be a resource. NOTE: Authority cited: Sections 10553, 10554, and 18943, Welfare and Institutions Code. Reference: 20 CFR 416.1201; 20 CFR 416.1202; 20 CFR 416.1204; 20 CFR 416.1205; 20 CFR 416.1207; 20 CFR 416.1210 through 416.1239; Section 1631(a)(3) of the Social Security Act, 8 USC Section 1631, and Section 18940, Welfare and Institutions Code.