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2620.20.15.05

PROPERTY NOT MARKETED WITHIN 30 DAYS (C)

If an applicant/recipient signs Form 118 but does not then offer the property for sale within 30 days, the case must be discontinued. (Refer to Section 2620.20.15.) Timely notice must be issued early enough to allow an effective date for the action which is the first of the month after the expiration of the 30-day marketing period. The reason for discontinuance would be excess resources. Cash benefits paid during this period are overpayments. 2620.20.15.10

OVERPAYMENT CALCULATION AFTER PROPERTY SALE (C)

In the event the exempted property sells, there must be a determination of the net proceeds to the recipient. Net proceeds are defined as the gross selling price minus all expenses relating to the sale of the property, for example, realtor and/or attorney fees, taxes, liens, closing costs paid by the seller, and so forth.

If the net proceeds, combined with all other resources from the original resource determination, are within the resource limit, no overpayment would exist. Continuing eligibility must be determined. 2620.20.15.15

PROPERTY UNSOLD AFTER SIX MONTHS (C)

If the exempted property is marketed for six months and fails to sell, its equity value must, at that point, be counted toward the resource limitation. Eligibility for continuing payments ceases unless the recipient no longer has excess resources due to the disposal of resources other than the property.

If assistance is to be discontinued, timely notice must be issued to make the effective date of discontinuance the first of the month after the six-month disposal period ends. If the AG becomes ineligible for other reasons during the disposal period, the case is to be discontinued in the usual manner.

Regardless of whether ineligibility occurs during the six-month period or afterwards, the amount of the resulting overpayment may not be calculated, nor may recovery be initiated until the property is sold. The situation must be monitored regarding a continuing good faith effort to dispose of the property. When the property is sold, recovery of the overpayment should be initiated.

If the net proceeds, together with all other resources from the original resource determination, exceed the resource limit, there is an overpayment. The amount to be recovered, however, cannot exceed the net proceeds from the sale of the property. Continuing eligibility based on current resources and all other factors must be determined.