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Page 8 of 9 § 10:71-5.7 Post-eligibility treatment of income; institutionalized individuals the overage was. A.D. v. DMAHS and Morris Cnty. Bd. of Social Servs., OAL DKT. NO. HMA 18804-2013, 2014 N.J. AGEN LEXIS 907, Final Administrative Determination (June 3, 2014). Combined income of a petitioner and her spouse was so low that petitioner's spouse was entitled to retain their resources totaling $ 139,284.25 in order to increase his monthly income closer to his Minimum Monthly Maintenance Needs Allowance of $ 1,750. M.M. v. DMAHS, OAL Dkt. No. HMA 13911-08, 2009 N.J. AGEN LEXIS 670, Final Decision (August 24, 2009). Initial Decision (2007 N.J. AGEN LEXIS 189) adopted, which concluded that in calculating the Community Spouse Resource Allowance, repayments on home equity loans or lines of credit are not deductible as a shelter expense unless there is a direct relationship to preserving the marital home, such as when the loan proceeds are used for major repairs or capital improvements necessary to protect the home. A.F. v. DMAHS, OAL Dkt. No. HMA 12301- 06, 2007 N.J. AGEN LEXIS 330, Final Decision (May 24, 2007). In an institutionalization case, although the community spouse's income clearly exceeded the minimum monthly maintenance needs allowance (MMMNA), and although rental property is not an excluded resource, sale of the couple's rental property, which was necessitated by the division of the couple's resources, would reduce her income substantially; therefore, under N.J.A.C. 10:71-5.7(d) and due to the unique circumstances, the community spouse was entitled to protect the entire value of the rental property to increase her income in an attempt to reach the MMMNA and still meet the resource standard. N.S. v. DMAHS, OAL Dkt. No. HMA 4902-06, 2007 N.J. AGEN LEXIS 331, Final Decision (March 9, 2007). Medicaid community spouse met the "exceptional circumstances" standard of proof of 42 U.S.C.A. 1396r-5 and N.J.A.C. 10:71-5.7; therefore, the community spouse's Minimum Monthly Maintenance Needs Allowance was to be recalculated and adjusted upward, beyond the standard allowances, with the inclusion of monthly adult disability child expenses not covered by SSI, monthly bankruptcy court ordered payments, and monthly expenses of a refinance loan to prevent foreclosure. Hill v. DMAHS, OAL Dkt. No. HMA 11006-03, 2006 N.J. AGEN LEXIS 83, Initial Decision (January 12, 2006). Community spouse was entitled to increase her community spouse resource allowance under 42 U.S.C.A. 1396r-5 and N.J.A.C. 10:71-5.7, thereby protecting additional resources and making her deceased husband, who had no income, eligible for Medicaid (adopting and modifying 2005 N.J. AGEN LEXIS 595). W.S. v. DMAHS, OAL Dkt. No. HMA 2126-05, 2005 N.J. AGEN LEXIS 1111, Final Decision (September 14, 2005). Husband's application to recalculate his Medicaid benefit was properly denied because the husband and his wife transgressed the permissible limits of Medicaid planning by entering into a divorce from bed and board and agreeing, in a consent order without judicial fact finding, that the institutionalized husband's pension benefits would be paid to the wife as alimony. H.K. v. Division of Medical Assistance and Health Services, 379 N.J. Super. 321, 878 A.2d 16, 2005 N.J. Super. LEXIS 238 (App.Div. 2005). Both interest and principal of community spouse's monthly annuity payments constituted income for purposes of determining minimum monthly maintenance allowance under Medically Needy Program. J.M. and E.M. v. Division of Medical Assistance and Health Services, 96 N.J.A.R.2d (DMA) 86. Full amount of Medicaid applicant's Social Security benefits would be included as "available income" and applied to his long-term care costs, even though applicant used portion of his benefits to satisfy pre-existing alimony obligation. L.C. v. Division of Medical Assistance and Health Services, 96 N.J.A.R.2d (DMA) 73. Exceptional circumstances resulting in significant financial distress warranted an upward adjustment in community spouse maintenance amount. M.G. v. Division of Medical Assistance, 95 N.J.A.R.2d (DMA) 47. Research References & Practice Aids