16.7 Transfer of Resources.

A. Households will be asked to provide information regarding whether any resources have been transferred within a 3-month period immediately prior to the date of application. B. Households that knowingly transfer resources for the purpose of qualifying or attempting to qualify for SNAP benefits will be disqualified from participation for up to one (1) year from the date of the discovery of the transfer. C. This disqualification period will be applicable if the resources are transferred knowingly in the 3-month period prior to the application or if they were knowingly transferred after the household has been determined eligible for SNAP benefits. D. Allowable Transfers: The following are allowable transfer of resources which will not affect SNAP eligibility: 1. Resources of excluded personal property such or furniture or money that is less than the allowable resource limit; 2. Resources sold or traded at or near fair market value; 3. Resources which are transferred between members of the same household; and 4. Resources that are transferred for reasons other than qualifying or attempt to qualify for SNAP benefits such as placing funds into an educational trust fund. E. Notice of Denial: If MDHS determines that a household knowingly transferred resources for the purposes of qualifying or attempting to qualify for SNAP, the household will be sent a denial notice that explains the reason and length of the disqualification. A notice of adverse action will be sent if the household is participating in SNAP at the time of discovery. F. Effective Date of Disqualification: The disqualification period will begin in the month of the application. However, for those participating, the disqualification period will be effective with the first issued allotment after the notice of adverse action time period has expired unless the household has requested a fair hearing with continued benefits. MDHS provides SNAP applicants and/or recipients an opportunity to appeal adverse administrative decisions and provide supporting documentation challenging the adverse or noncompliant action. Please refer to Title 18 of the Administrative Code, Part 23, Programmatic Administrative Agency Appeal Hearing Policy, Chapter 3. G. Disqualification Period: The length of the disqualification is based on the amount that the nonexempt transferred resources, when added with other countable resources, exceeds the allowed resource limit. The following penalties apply: 1. One month of disqualification for $0 to $249.99 in excess of the resource limit; 2. Three months of disqualification for $250 to $999.00 in excess of the resource limit; 3. Six months of disqualification for $1,000 to $2999.99 in excess of the resource limit; 4. Nine months of disqualification for $3000 to $4,999.99.00 in excess of the resource limit and 5. Twelve months of disqualification for $5,000 or more in excess of the resource limit. Source: 7 CFR §273.8(h) Revised: March 2022