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West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 18 Chapter 5 Assets

The exclusion does not apply to the portion of the proceeds that exceeds the costs of the purchase and occupancy of another home. Allowable costs need not actually be paid to qualify for the exclusion. However, the individual must have legally obligated himself to pay the costs at some future time in connection with the purchase of another home. Examples of allowable costs of purchase include, but are not limited to, the following: • Down payments • Settlement costs • Loan processing fees and points • Moving expenses • Costs of necessary repairs or replacements to the new home's existing structure or fixtures, (i.e., furnace, plumbing, or built-in appliances) • Mortgage payments on the new home for the time prior to occupancy

Client Does Not Intend to Purchase Another Home If the client indicates he has sold a home and does not intend to purchase another home, the Worker must record the contact and count the net proceeds from the sale as an asset beginning with the month following the month of receipt. If the client initially does not intend to purchase a new home but changes his mind before the end of the third full month following the month of receipt, the exclusion is applied based on the original three-month period. NOTE: Mortgage payments made on the new home after occupancy are not excluded.

When an individual has already received the proceeds from the sale of a home when he applies, the proceeds must be used or obligated by the last day of the third full month following the month of receipt.

When the exclusion period expires, the Worker must contact the client to verify the dates and amounts of costs for the new home. Count retained proceeds, not used or contracted before expiration of the exclusion period, are counted as an asset, beginning with the month following the month the exclusion period ends. The period cannot be extended for any reason.