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Title 8: Medicaid Page 123 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources September 13, 2024 Property in a Homestead

Property in a Homestead (Cont.) Mr. K owns and operates the 80-acre farm on which he lives. The house, farm buildings, and farmland are exempt from consideration as a resource.

Mrs. Z owns 20 acres that is considered a homestead. Mrs. Z builds a second house and rents out the first house. Both houses are exempt as a resource because they sit on one contiguous homestead property.

Exclude the proceeds from the sale of the homestead (including homesteads sold on contract) for up to three months if the member intends to purchase another home. Ask the member to sign a statement such as the following:

“On ___(date)___ I received $___________ net proceeds from the sale of my home. I plan to use that money to replace that home with another home within three months, by ___(date)___.”

The member must report the date the new home is purchased and the purchase price. Count any excess proceeds from the sale of the old homestead that are not used to purchase the new homestead.

The homestead is sold for $45,000 on December 2. A new home is purchased on February 16 for $35,000. The $10,000 difference is a countable resource on March 1.

If the proceeds are not used within three months to buy another homestead, count the proceeds as a resource at the end of the three-month period.

Also exclude a homestead as a resource if:

 It is not occupied by the member due to a temporary absence, such as a trip, visit, or stay in a residential care facility or medical institution. To be excluded, the member must intend to return to the home. If the member does not intend to return, the home becomes a nonhomestead property, and is countable as a resource.