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copy of the loan agreement is needed to verify when the homeowner will repay the loan.

Home Equity Conversion Sale Leaseback Program:

· Under this program, an investor purchases the home and pays the purchase price in a series of payments while leasing the home to the homeowner for a specific period of time, sometimes until death.

ACA: Exclude monthly payments. ABD and Family Medically Needy: Each sale-leaseback transaction must be reviewed to determine if the proceeds are considered income or a resource.

INTEREST: ACA: Count all interest received.

ABD and Family Medically Needy:

· Exclude interest earned on a countable resource. · Count interest earned on an excluded resource. · Prorate income over period intended to cover. IRREGULAR OR INFREQUENT INCOME: ACA: Count or exclude based on income type (e.g. gifts, contributions, etc.). ABD and Family Medically Needy: Count any amount of income that can reasonably be prospected.

LEASE INCOME: Count lease income not related to Native American resources. See CMA 501-2 Native American Income for Native American lease income. Prorate lease income over period intended to cover.

Example: For a six-month lease that is paid only once in the six-month period, prorate the payment over six months beginning with the month of payment. Exclude all periodic lease payments received prior to Medicaid eligibility. Prorate lease payments received during a Medicaid eligibility month over the period intended to cover. Lease income is considered self-employment only when the client is in the business of buying and selling leases or managing lease property.