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Chapter: 1600 Assets Program: MSSI, SFP 38

All OBRA '93 special trusts (trusts for disabled under 65, pooled trusts and income trusts) must be forwarded to your Region or Circuit Program Office who will refer it to your District Legal Counsel for review and approval. 1640.0577 Real Property (MSSI, SFP) Real property includes assets (in which an individual has ownership interest) that fall into the following categories:

1. any real estate owned by the individual or couple, and 2. income producing property. 1640.0578 Real Estate (MSSI, SFP) Real estate that is not a homestead and does not involve life estate is included as an asset.

Otherwise non-excluded real property that an individual or family is making a good faith effort to sell can be excluded. Refer to passage 1640.0537 for good faith effort policies.

For, SSI-Related Medicaid, and State Funded Programs, real estate is not included as an asset if the property is producing income consistent with its fair market value (see passage 1640.0544).

Information containing the name of owner, legal description, amount of indebtedness and to whom owed, and the assessed value is required verification. Sources of verification include deeds in possession of parent or relative, liens in personal possession, county property records, or contract with lien holder. 1640.0581 Value of Real Property (MSSI, SFP) The county tax assessment of the property (minus any debts) may be used to determine the ownership and value of the property. However, because the value of the property based upon the tax assessment may be substantially lower than the property's actual fair market value (FMV), a knowledgeable source estimate of a property's FMV is required in all cases if the individual is eligible on the factor of assets using the tax assessed value of the property. Any debts on the property must be subtracted from the FMV to determine the equity value to consider an asset to the individual. 1640.0582.01 Verification of Real Property Value (MSSI, SFP) The tax assessment cannot be used when the following conditions exist:

1. The individual is eligible on the factor of assets using the tax assessment. 2. The tax assessment is more than one year old (based upon the date of the last notice). 3. An estimate of the property's FMV can be easily obtained from a knowledgeable source at no cost to the agency. 4. The tax assessment is a special purpose assessment (unless the tax jurisdiction also provides a fair market value assessment, which may be used). 5. The tax assessment cannot be used if it is under appeal. 6. The taxing authority does not provide an assessment ratio or provides only a range of the value; for example, between 50 and 75 percent (unless the individual would be ineligible using even the upper limit of the range). 7. The tax assessment cannot be used if it is based on a fixed rate per acre method. The term "fixed rate per acre," applies only to standard dollar per acre assessments for land based on land usage without regard to market prices; for example, agricultural, industrial, and residential. This term does not apply when certain conditions require that types of land be taxed similarly, regardless of location. 8. The tax assessment cannot be used to help determine home equity when an individual files an application on or after November 1, 2007 and the assessed value of the home exceeds $450,000.