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Title 8: Medicaid Page 26 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Non-MAGI-Related Income Revised April 11, 2025 Home Equity Conversion Plans Home Equity Conversion Plans (Cont.) The payments the homeowner receives from a time sale contract are considered as a conversion of a resource and are not considered income. If the payments are retained into the following month, they become a countable resource. Home Produce for Personal Consumption Section 1612(b)(8) of the Social Security Act; 20 CFR 416.1124(c)(4) Exclude home produce used for personal consumption and produce that is traded. When produce is sold, consider net earnings as earned income. When the client is engaged in commercial farming, see Non-MAGI-Related Self- Employment Income. Housing Assistance 20 CFR 416.1124(b); U.S. Housing Act of 1937, Section 8; U.S. Housing Act of 1959, Section 202(h); National Housing Act; Housing Act of 1949, Title V; Housing and Urban Development Act of 1965, Section 101 (12 USC Section 1701, 42 USC Section 1451) Exclude rent subsidies, cash toward utilities, and indirect assistance (guaranteed loans, mortgages, and mortgage insurance) provided to home buyers by the Department of Housing and Urban Development (HUD) and the Farmer’s Home Administration (FMHA). Exclude any rent reduction to a person in low-income housing when the assistance is under the U.S. Housing Act of 1937, as amended. Verify the authority for the client’s federal or federally assisted housing. If the client cannot get verification, contact the local public housing authority. If HUD and a private owner have entered into a contract directly, contact the owner or manager of the project to verify the nature and authority for the housing assistance payments. Document the findings in the client’s case record. Income Replacement 20 CFR 416.1102, 20 CFR 416.1103; P. L. 130-60 If a person’s income is lost, stolen, or destroyed, then is replaced, the replacement is not considered income. For example, if the person loses a January paycheck and receives a replacement check in March, the pay is considered as income only for January.