1110.020.20 Real and Personal Property – DSS Manuals

IM-92 December 29, 2009 ; IM-14 February 23, 2007 ; IM-120 August 15, 2000

Real property is entered on the Real Property (FMW4) screen. Personal property is entered on the Personal Property (FMW2) screen. FAMIS excludes the property based on policy as listed below.

That portion of property determined necessary for the maintenance or use of a vehicle(s) used to transport physically disabled individuals (including an ineligible alien or disqualified person whose resources are considered available to the EU) is excluded. Enter the property on the Real Property (FMW4) screen and enter usage code MD to exclude.

That portion of property determined necessary for the maintenance or use of a vehicle(s) used 50 percent of the time to produce income, and/or used and producing income consistent with its fair market value is excluded. Enter the property on the Real Property (FMW4) screen and enter usage code MI to exclude. EXAMPLE: The EU owns a produce truck used in business and is prohibited from parking the vehicle in a residential area. The EU owns five acres and uses a quarter acre as a garage and maintenance area for the produce truck. The one-quarter acre is excludable under this provision.

Investment property that annually produces gross income consistent with its fair market value, even if only used seasonally, is excluded. Investment property is defined as a non-liquid resource used to produce income excluding that property used in self-employment enterprises. Enter the investment property on the Real Property (FMW4) or Personal Property (FMW2) screen using usage code IP , and the property will be excluded. If the investment property is not producing income consistent with fair market value, enter using usage code NP . The property will be included in the resource determination. A fair return depends on existing conditions in the community. Utilize the prudent person concept. Fair market value is the full value that could be received if the property is sold on the open market. Rental homes used by the EU for vacation purposes at some time during the year must be producing income annually consistent with fair market value to receive this exclusion.

Real property that has not yet sold, but the EU is making a good faith effort to sell at a reasonable price, including property in addition to the excluded home, is excluded. Establish that the property is for sale and that the EU has not declined a reasonable offer. Obtain verification through a collateral contact or documentation, such as an advertisement for public sale in a newspaper of general circulation or a listing with a real estate company. To exclude this from the resource determination, enter Y in the Good Faith Sell field on the Real Property (FMW4) screen.

Personal property including household goods and personal effects (such as jewelry, coin collections, stamp collections, etc.) are excluded. Enter these resources on the Personal Property (FMW2) screen using type codes JE for jewelry or HH for household furnishings.

Non-exempt or non-excluded real or personal property, an EU is unlikely to sell for any significant return or of which the sale or disposition is unlikely to produce any significant amount of funds for support of the EU is excluded. Reasons property is unlikely to bring a significant return are that the EU’s interest is relatively slight or the cost of selling the resource would be relatively great. A return is the amount an individual could expect to receive from the sale or disposition of a resource, minus any cost associated with the sale or disposition. To be a significant return, the return amount must be at least $1,500. If the return amount is less than $1,500, the resource is excluded. If the return is $1,500 or more, it is included as a resource. Consider the following when applying significant return policy: Significant return policy is only applicable when determining the value of real property (RP) and personal property (PP). The $1,500 applies to each resource. If the individual is a joint owner, only the amount s/he would receive is used in the significant return determination. Client statement of personal property value and selling costs is acceptable unless questionable. If the individual is a joint owner, only the amount s/he would receive is used in the significant return determination. To exclude the resource from the resource determination, enter N in the Significant Return (Y/N) field on the Real Property (FMW4) screen or Personal Property (FMW2) screen. John and Susan have applied for Food Stamp benefits and have declared these resources: Resource Class Resource Type Owner Value Loan Cost to Sell Return Entry in Significant Return Field Value of Resource FAMIS considers PP Boat Susan $20,000 $19,000 $0 $1,000 N $0 RP Lot John/Susan $10,000 $8,000 $500 $1,500 Y $1,500 RP Lot John and his brother Joseph own half each $10,000 $7,000 $500 $2500, but only half ($1250) is John’s. N $0 RP Building John/Susan $30,000 $28,000 $1,000 $1,000 N $0 TOTAL AVAILABLE RESOURCES $1,500

Always review the Financial Resource Detail Summary (FMWG) screen prior to authorizing a case action to ensure resources you expect to be included are included in the determination. From the Action Authorization (FM3H) screen, press F15=RESOURCE to view the Financial Resource Detail Summary (FMWG) screen. If the resource is incorrect, select the resource and press F6=DETAILS to return to the appropriate screen and correct the inaccurate information.