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property. Property 1 has equity of $5,000. Property 2 has equity of $3,000. The total equity of the property is $8,000. Subtracting $6,000 leaves a remaining equity of $2,000. The applicants have a bank account with a $429 balance and no other countable resources. Total resources after subtracting $6,000 equity from the income producing property is $2,429 which would meet the resource requirement. Proceed to determine if the property meets the 6% income test 6% of property 1’s equity is $300. 6% of property 2’s equity is $180. Request that the a/b’s specify the amount of rent for each property. Scenario 1 The a/b’s state that of the $300 farmland rental from renter #1, $200 is for property 1 and $100 is for property 2. Of the $250 woodland rental from renter #2, $150 is for property 1 and $100 is for property 2. Total rental for property 1 - $200 (farm) + $150 (woodland) = $350 Property 1 meets the 6% test. Total rental for property 2 - $100 (farm) + $100 (woodland) = $200 Property 2 also meets the 6% test. Since both properties meet the 6% test, the equity value of both is combined ($8,000). $2,000 is a countable resource. Scenario 2 – The a/b’s state that of the $300 farmland rental from renter #1, $225 is for property 1 and $75 is for property 2. Of the $250 woodland rental from renter #2, $175 is for property 1 and $75 is for property 2. Total rental for property 1 - $225 (farm) + $175 (woodland) = $400 Property 1 meets the 6% test. Total rental for property 2 - $75 (farm) + $75 (woodland) = $150 Property 2 does not meet the 6% test. It must produce $30 more to produce the required $180. Only property 1 meets the 6% test. Since its equity is less than $6,000 it is fully excluded. Property 2 does not meet the 6% test, so its equity ($3,000) is counted. X. LIQUID ASSETS Liquid assets include cash, bank accounts, certificates of deposit or any asset which can be converted to cash. Trust Funds (Section XI.) and life insurance policies (Section XII.) are also considered to be liquid assets. A. Ownership of Liquid Assets 63