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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources
September 1, 2026 Division of TennCare 16 • The entrance fee does not confer an ownership interest in the community.
It is not necessary for the CCRC to provide a full, lump-sum refund of the entrance fee to the resident in order to satisfy the first condition. If portions of the fee can be refunded or applied to pay for care as required, the condition is met.
In order to meet the second condition listed above, it is not necessary for the resident to actually receive a refund of the entrance fee or deposit. This condition is met as long as the resident could receive a refund were the contract to be terminated, or if the resident dies. Contract for Deed or Mortgage Resource Type The value of a contract for deed or mortgage may be a countable asset depending on the circumstances of the loan, including the individual’s role as lender or borrower and the accessibility of the asset.
1. Definition
A security held by the lender on a particular property for the repayment of debt by the borrower within a particular time period. A contract for deed, land contract, and deed of trust are all mortgages on real property.
2. Individual is the Lender
a. Countable Value
When the individual is the lender for a contract for deed, he may sell or transfer the instrument to have immediate access to the unpaid loan principal. The value of the resource equity value is a countable asset.
Any subsequent payments to the principal made by the debtor after approval are considered a resource because the unpaid loan principal is a resource.
b. Excluded as a Resource
The value of the contract may be excluded from countable resources if the individual can demonstrate that the contract cannot be sold without his realizing a net loss.