4002.6 Disposal of Real Property

Real property that is not used as a residence is excluded as a resource for a period not to exceed six months if the following conditions are met: 1. The family is making a good faith effort to sell the property. This effort must be documented in the case record. Examples of acceptable documentation include a current newspaper sales advertisement, or a current sales contract with a real estate firm; and 2. The family signs Form 212, an agreement to dispose of the property and to repay the assistance received during the exemption period. The amount of assistance that must be repaid after the property is sold is determined as follows: 1. Compare the net proceeds of the sale plus the value of other countable resources available at the time the exemption period began to the program resource limit. 2. If the amount is less than $1,000 for GA, or $10,000.00 for TANF, there is no overpayment. 3. If the amount is more than the program resource limit, the amount of the proceeds that is in excess of the resource limit is recovered as an overpayment. Note: The amount recovered cannot exceed the assistance that was received. Any proceeds in excess of the amount to be recovered are considered as an available resource to the family. 4. If the property is not sold within six months, the assistance case must be closed. All the assistance payments are overpayments. 5. If the assistance case is closed for some other reason during the six- month exemption period and the property has not been sold, all payments are overpayments. NOTE: The exemption period runs for six calendar months. If the assistance case closes and the client reapplies during this period, the exemption will continue for the remainder of the initial six- month period. 13 DE Reg. 663 (11/01/09)