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Chapter: 1600 Assets Program: RAP 25

1660.0532 Verification (RAP) Sources of verification for farm business inventory include items such as:

1. inventory reports for equipment filed with the county tax assessor; 2. statements from reputable businesses knowing resale value of items; or 3. the county agricultural agent. 1660.0541.01 Good Faith Effort to Sell (RAP) When the individual is making a good faith effort to sell property, it can be excluded for up to nine months if the family agrees to use the proceeds from the sale to repay the Temporary Cash Assistance received. The individual must provide evidence of good faith effort to sell the property prior to approval for assistance.

The parent or relative must sign a CF-ES 2672 form, Real Property Agreement, in the presence of a witness acknowledging that the family:

1. owns real property the value of which exceeds the $2,000 asset limit (or, when combined with other assets, the total value exceeds the limit), and 2. agrees to dispose of the property and to make repayment of any Temporary Cash Assistance benefits that would not have been received had disposal occurred at the beginning of the exclusion period.

Passages 1660.0541.02 - 1660.0541.04 provide additional policy on the nine month exclusion period. 1660.0541.02 Exclusion Period (RAP) The period of exclusion is nine months, or until the property is sold, whichever is sooner.

Any proceeds from the sale remaining after repayment of excess TCA benefits are included as assets.

The individual’s case must be closed if the excluded property is not sold during the nine month period or the individual becomes ineligible for any other reason during the exclusion period. The effective date of the case closing is the month after the end of the exclusion period. 1660.0541.03 Verification (RAP) Sources of verification of the good faith effort to sell include documents such as a written statement from a real estate dealer, clippings of advertisements less than 30 days old, or copies of conditional sales contracts. 1660.0541.04 Property is Sold (RAP) Overpayment does not occur if the property is sold, and the net profit plus the value of other SFU assets at the beginning of the exclusion period are under the asset limit. When the sale of the property is reported, the eligibility specialist must reevaluate the individual's assets by the next change deadline. If the sale did not affect eligibility, no overpayment is considered to have occurred.

If the individual's assets exceed allowable limits after the sale, the case must be canceled effective the first possible payment month. A notice of the cancellation must be sent to the individual allowing 10 days advance notice.