42-221 TRANSFER OF PROPERTY OR INCOME

.1 The receipt of aid shall not limit or restrict a recipient’s right to give, receive, sell, exchange, or change the form of property. A period of ineligibility (POI) shall result when a recipient AU gives away or transfers, for less than fair market value (FMV), nonexcluded property (including cash) that would cause the AU to exceed its eligibility for cash aid. (See Section 42-207 for property limits.)

.2 Property

.21 The POI shall be computed based on the amount that, when added to other countable property, would have exceeded the property limit if the property had been transferred at its FMV. The county shall determine the POI as follows:

.211 Establish the FMV of the property transferred;

.212 Add other countable property;

NONLINKING FACTORS OF PUBLIC ASSISTANCE ELIGIBILITY

.213 Subtract the amount of the property limit;

.214 Subtract the amount actually received for the property from the FMV amount determined in Section 42-221.211;

.215 Compare the amount calculated in Section 42-211.213 with the amount calculated in Section 42-221.214 and determine the lesser of the two amounts;

.216 Divide the lesser of the two amounts in Section 42-221.215 by the MBSAC for the AU;

.217 Round the resulting figure down to the nearest whole number to determine the number of months in the POI.

HANDBOOK BEGINS HERE

.3 Example: While on aid, a recipient AU of two persons inherits a parcel of real property with a FMV of $1,300. The value of this inherited property, when added to other ($2,050) countable property held by the AU, causes the AU to exceed the allowable property limit ($2,050). The AU sells the parcel for $100, which is less than its $1,300 fair market value.

.31 Computation Factors:

$ 1,300 FMV of the parcel of real property

+ $2,050 Property held by the AU

$ 3,350

- $ 2,250 AU property limit. (See Section 42-207.)

$ 1,100 Amount in excess of the property limit

$1,300 FMV of the parcel of real property

- 100 Amount actually received by the AU for the real property

$1,200 Difference between the FMV and the amount received for the property.

$1,100 is less than the $1,200 difference between the FMV and the amount received for the transferred property

$1,100 divided by $1,070 current MBSAC for AU of 2* = 1.03 months

POI = 1 month (rounded down from 1.03 months) of ineligibility

*MBSAC for AU of 2 = $1,070; MBSAC amounts are subject to change.

HANDBOOK ENDS HERE

NONLINKING FACTORS OF PUBLIC ASSISTANCE ELIGIBILITY

.4 Income

Nonrecurring lump sum income/payments shall be treated as property and shall be subject to any application of POI rules for a transfer of property for less than FMV.

.41 Income is considered nonrecurring if all of the following apply:

.411 the income is not interest income or contractual income as specified in MPP Section 44-102 which requires a specified treatment;

.412 the income is for a period of more than one month, and

.413 the income is not from a source expected to occur regularly.

.5 Applying the Period of Ineligibility (POI)

.51 When the family has transferred property which results in a POI, cash aid shall be discontinued and the POI begin as follows:

(SAR) (a) The first month of the next SAR Payment Period following the transfer and shall continue for the determined number of months of ineligibility. Any aid received by the AU during the ineligible months of the SAR Period is an overpayment.

(AR/CO) The first month of the next AR/CO Payment Period following the transfer and shall continue for the determined number of months of ineligibility. Any aid received by the AU during the ineligible months of the AR/CO Payment Period is an overpayment.

(SAR) (b) When the transfer is discovered too late to discontinue for the first month of the SAR Payment Period, the POI shall begin the first of a month within that SAR Payment Period after timely and adequate notice is given. Any aid received by the AU during the ineligible month(s) of the current SAR Payment Period is an overpayment.

(AR/CO) When the transfer is discovered too late to discontinue for the first month of the AR/CO Payment Period, the POI shall begin the first of a month within that AR/CO Payment Period after timely and adequate notice is given. Any aid received by the AU during the ineligible month(s) of the current AR/CO Payment Period is an overpayment.

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NONLINKING FACTORS OF PUBLIC ASSISTANCE ELIGIBILITY

(c) Section 42-221.51(c)(QR) shall become inoperative in a county on the date SAR becomes effective in that county, pursuant to the County's SAR Declaration.

(QR) When the transfer is in the first or second month of aid, any resulting POI shall begin the first month of the next QR Payment Quarter and shall continue for the determined number of months.

.6 Transfer of property rules do not apply to applicant families.

NOTE: Authority cited: Sections 10553 and 10554, Welfare and Institutions Code. Reference: Sections 11155, 11155.2, 11157.5 (Ch. 270, Stats. of 1997 and Ch. 902, Stats. of 1998), 11265.1, 11265.2, 11265.3, 11450, 11452 and 11453, Welfare and Institutions Code; Administrative Notices 14-55 and 14-56; The Food, Conservation, and Energy Act of 2008, Sections 5(g) and 4104(B).