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The equity value (fair market value minus liens) of nonexempt real property is to be counted as a resource.

However, real property that the AG is making a good faith effort to sell at a reasonable price is exempt as a resource. The eligibility worker must verify that the property is for sale and that a reasonable offer for the property has not been refused. Verification may be obtained through a collateral contact, a newspaper ad, or a real estate broker. 2620.20.15 EXEMPTION OF REAL PROPERTY (C)

The equity value of any real property other than the home is a resource and must be counted toward the resource limitation. If the AG has excess resources due to the equity value of non- exempt real property, the property can be exempted for one six-month period if the owner is willing to offer it for sale and agrees to repay Cash Assistance received during the period that the property is exempted. • If the applicant/recipient is unwilling to offer the property for sale, the case is to be denied/discontinued due to excess resources. • If the applicant/recipient chooses to comply, or if the property is already up for sale, State Form 37588/FI-0118, Agreement to Offer Property for Sale and Repay Public Assistance, must be signed. The signature on the form must be witnessed by an eligibility worker. The date that the agreement was signed must be entered in the eligibility system. • State Form 37588/FI-0118 is a twofold agreement. First, the owner of the property must agree to offer it for sale. Second, there is an agreement to repay assistance that was received during the disposal period.

Assistance can be awarded upon the signing of the Form 118 if all other eligibility factors are met. The property must be offered for sale within 30 days of the date the Local Office mails the notice of eligibility or of the date the Form 118 is signed, whichever is later.

The eligibility system will monitor the 30-day period that is allowed to actually offer the property for sale or rent and will issue an alert. The owner must list the property with a realtor or place a sign in a conspicuous location on the property. The sign must clearly indicate the property is for sale and provide instructions for contacting the seller. The selling price should be a reasonable figure reflecting the fair market value of the property.

Within the 30-day limit, the eligibility worker must verify and document in the case record that the property has been offered for sale. Use of Form 118, Report on Property for Sale or Rent, is suggested, but not mandatory. The eligibility worker must also stress to the recipient the responsibility to notify the agency when the property is sold.

When the Form 118 is signed and the property is offered for sale, the equity value of the property is exempted as a resource for up to six months. The six-month disposal period begins on the date Form 118 is signed. It ends on the last day of the sixth month.

The AG is entitled to only one six-month disposal period. (f18) This total can be accumulated during one unbroken six-month period or in increments if there is intermittent assistance.