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.1 Determination of Value of Real Property
For determination of CalWORKs eligibility, an applicant or recipient's net market value interest in real property is determined by subtracting any allowable encumbrance against it from its market value (42-215.21).
.11 Acceptable evidence of allowable encumbrances on real property are listed below:
(a) Mortgages
(b) Notes
(c) Deeds of trust
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(d) Payment receipts
(e) Loan payment books
(f) Delinquent tax liens
(g) Judgments items
(h) Mechanics liens
(i) Assessments
(j) Unpaid balance on property
.12 Applicant and/or Spouse Not Sole Owners
If the applicant or the applicant and his spouse are not the sole owners of property, only his or their proportionate share is included in their respective holdings.
.13 In order to identify real property holdings of recipients, the county shall, at least, contact the local county assessor, recorder or tax collector.
.2 Acceptable Evidence of Value of Real Property
.21 In CalWORKs the market value of real property shall be based on the most recent appraisal of market value from the county assessor, recorder or tax collector.
.22 Evidence of an allowable encumbrance in .21 above shall be the written document which supports it. Evidence of unwritten encumbrances shall be the sworn statements of all parties, under penalty of perjury, to the following:
.221 initial and maturity date;
.222 extent of encumbrances; and
.223 value received
.3 Determination of Value of Personal Property Other than Motor Vehicles: The county shall determine the value of personal property in conformance with methods established under the CalFresh Program. (See CalFresh regulations at Manual of Policies and Procedures Section 63-501.5.) The value of nonexcluded resources shall be their equity value. The equity value is the fair market value less encumbrances.
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.31 Repealed by Manual Letter No. EAS-98-03, effective 7/1/98. Renumbered by Manual Letter No. EAS-21-01, effective 1/5/21.
.32 Repealed by Manual Letter No. EAS-98-03, effective 7/1/98. Renumbered by Manual Letter No. EAS-21-01, effective 1/5/21.
.33 Repealed by Manual Letter no. EAS-98-03, effective 7/1/98. Renumbered by Manual Letter No. EAS-21-01, effective 1/5/21.
.4 Determination of Motor Vehicle Value: The county shall determine the value of motor vehicles in conformance with methods established below.
.41 Equity Value of Motor Vehicles
.411 All motor vehicles that are not exempted under Section 42-215.431 are subject to the equity value limits set forth in the WIC Section 11155(d)(2). Any equity value that exceeds the annual equity value limit amount shall be counted towards the AU’s CalWORKs resource limit.
(a) The equity value limit of $25,000 for non-exempt motor vehicles is subject to an adjustment annually on January 1 of every year. The update to the equity value limit is published by CDSS through an ACL. See the most recent ACL available on the CDSS website for updated equity value limit for motor vehicles (https://www.cdss.ca.gov/inforesources/letters-regulations/letters-and-notices/all-county-letters). Select the link for the most recent year, then select “Ctrl+F from your keyboard and enter “resource limit” in the pop-up search box labeled “Find:” within the tool bar. If no resource limit ACL is located in the most recent year, use the back arrow button and select the prior year in sequence and reperform the above search steps.
.412 Applicants and recipients shall be allowed to self-certify the Fair Market Value (FMV) of all motor vehicles in the AU, as well as any encumbrances. To self-certify a motor vehicle’s FMV and encumbrances, applicants, and recipients will be required to complete and submit to the CWD a Self-Certification Form for Motor Vehicles (CW 80 form) or complete the motor vehicle section of the appropriate statement of facts.
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.413 If the motor vehicle is exempt, as provided in Section 42-215.431, the client is not required to declare the FMV of the motor vehicle or amount owed for the vehicle.
.42 Self-Certification Form for Motor Vehicles - CW 80
The CW 80 form (substitutes permitted) is a required form that will be used by applicants and recipients to:
(a) Self-certify the FMV and encumbrances, if any, of their motor vehicle(s).
(b) Identify if the motor vehicle meets one of the exemptions in Section 42-215.431.
The CWD will use the information on the CW 80 form or the motor vehicle section of the appropriate statement of facts to determine the equity value of all motor vehicles and how much value to count towards the AU’s resources level.
The CW 80 form must be submitted when the AU reports on the SAR 7 that they have acquired a new motor vehicle. The same information is also collected at initial application and at each annual redetermination.
.43 Handling of Motor Vehicles.
The value of all motor vehicles shall be the equity value, unless an exemption applies as provided in Section 42-215.431.
.431 The entire value of any motor vehicle shall be exempt if any of the following apply:
(a) It is used primarily (over 50 percent of the time the vehicle is used) for income-producing purposes such as, but not limited to, a taxi, truck or fishing boat;
(b) It annually produces income that is consistent with its fair market value, even if used on a seasonal basis;
(c) It is necessary for long distance travel, other than daily commuting, that is essential to the employment of a household member; for example, the vehicle of a traveling sales person or a migrant farm worker following the work stream;
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(d) It is used as the family’s residence.
(e) It is necessary to transport a physically disabled family member, including an excluded disabled family member, regardless of the purpose of the transportation.
Example:
(1) If the physical disability of the individual is not evident to the eligibility worker, verification shall be required.
(2) The individual shall be required to provide a statement from a physician certifying that the individual is physically disabled. The disability may be temporary or permanent.
(3) There shall be a limit of one motor vehicle per physically disabled household member.
(4) The motor vehicle need not have special equipment or be primarily used by or for the transportation of the physically disabled household member. However, a motor vehicle shall be considered necessary for the transportation of a physically disabled household member if the motor vehicle is specially equipped to meet the specific needs of the disabled person or if the motor vehicle is a special type of motor vehicle that makes it possible to transport the disabled person.
(f) It would be exempted under any of Sections 42-215.431(a) through (d), inclusive, but the motor vehicle is not in use because of temporary unemployment, such as when a taxi driver is ill and cannot work, or when a fishing boat is frozen in and cannot be used.
(g) It is used to carry fuel for heating or water for home use, when the transported fuel or water is the primary source of fuel or water for the family.
(h) Ownership of the motor vehicle was transferred through a gift, donation, or a family transfer, as defined by the Department of Motor Vehicles.
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.44 Any equity value of a motor vehicle that is not exempted as specified in Section 42-215.43 and in excess of the motor vehicle value limit will be counted as a resource attributable toward the AU’s maximum resource limit. Any equity value of a motor vehicle that is not exempted as specified in Section 42-215.43 and in excess of the motor vehicle value limit shall be counted as a resource attributable toward the AU’s maximum resource limit.
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.441 When computing the value of a motor vehicle which has not been totally excluded, determine the equity value of the motor vehicle which is the FMV amount of the motor vehicle less the encumbrances (amount owed), if any. When the remaining equity value amount is greater than the motor vehicle asset limit, the excess amount is counted in the resource limit.
Example: Computation of equity value of a non-exempt motor vehicle.
Computation of Equity Value
$ 40,000 FMV
- 10,000 Amount Owed
30,000 Equity Value
The equity value is $30,000 which is greater than the motor vehicle asset limit of $25,000. The excess amount of $5,000 is counted against the AU’s maximum resource limit. (See Section 42-215.41 for the current motor vehicle equity value limit and Section 42-207 for the resource limit.)
.45 Steps in Evaluating Motor Vehicles:
.451 Step One
Determine if any motor vehicle in the household is excludable as a resource. Motor vehicles in this category include those that are:
(a) Income producing;
(b) Annually producing income consistent with FMV, even if used on a seasonal basis;
(c) Necessary for long distance travel to employment other than daily commuting, e.g., traveling salesman;
(d) Used as a home;
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(e) Necessary to transport a physically disabled household member;
(f) Previously used as income producing by a self-employed household member who is temporarily unemployed. Exclude for one year period from date of termination of self-employment in farming.
(g) Household depends on vehicle to carry fuel for heating or water for home use when such fuel or water is the primary source of fuel or water for the household.
(h) Transferred as a gift, donation, or family transfer.
If none of the motor vehicles in the household are categorized as excludable from resource consideration, or there are remaining motor vehicles left to be evaluated after others have been determined excludable, go to Step 2.
.452 Step Two
Exclude any motor vehicle from Step One. Evaluate each non-excludable motor vehicle at initial application, when the AU reports on the SAR 7 that the household has acquired a new motor vehicle, and at each annual redetermination.
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.453 Step Three
For any remaining motor vehicles compute the equity value of each and use the resultant amount as a countable resource value.
Add the values of the above values to arrive at the total motor vehicle resource value.
.46 The exclusions for motor vehicles as specified in Section 42-215.431 shall also apply to:
.461 motor vehicles on those Indian reservations that do not require motor vehicles driven by tribal members to be licensed;
.462 motor vehicles used by ineligible noncitizens or disqualified persons whose resources are considered available to the family.
.5 Repealed by Manual Letter No. EAS-98-03, effective 7/1/98.
.6 Repealed by Manual Letter No. EAS-98-03, effective 7/1/98.
NOTE: Authority cited: Sections 10553 and 10554, Welfare and Institutions Code. Reference: Sections 10063, 10554, 11155 and 18901.9 (Ch. 743, Stats. of 2003), Welfare and Institutions Code; and Federal Register Volume 68, No. 168, Page 51933 published on August 29, 2003.
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