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Title 8: Medicaid Page 120 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources September 13, 2024 Mortgages and Contracts Mortgages and Contracts (Cont.) If the contract is not a resource and the principal is not treated as a resource, count the total payment on the contract as income.

Mr. H bought a property on contract that he is selling on contract. The value of the second contract is established at $1,500. He has a checking account that had $100 the first moment of the first day of the month, and no other resources. Mr. H is within resource limits.

Mr. H receives $150 per month payment from the contract. Of this $150 payment, $40 a month is interest.

He pays $12 a month interest in his payment for the property. The countable interest income for eligibility and client participation is $28 per month. ($40-$12=$28) The remaining $110, if retained is counted as a resource.

Mortgages and contracts must be reviewed to determine if the purchase constitutes a transfer of assets for less than fair market value. See Purchases Considered Transfers for Less Than Fair Market Value. Other Excluded Federal Payments 20 CFR 416.1124, 20 CFR 416.1236, P. L. 101-239, P. L. 101-426, P. L. 101-510 P. L. 106-398 Exclude the following federal payments:  Compensation provided to volunteers by the Corporation for National and Community Services (CNCS) (previously referred to as ACTION), unless CNCS determines that the hourly rate is equal to or over the minimum wage. (So far, CNCS has never made this determination. Central Office will contact staff if that happens.) Programs under CNCS include:

• University Year of Action (UYA). • Volunteers in Service to America (VISTA). • Foster Grandparents. • Retired Senior Volunteer Program (RSVP). • Senior Companion Program. • Special and Demonstration Volunteer Program.