Wash. Admin. Code § 182-512-0350 - SSI-related medical-Property and contracts excluded as resources
(1) The agency
excludes the following resources when determining eligibility for SSI-related
medical assistance:
(a) A client's household
goods and personal effects;
(b) One
home (which can be any shelter), including the land on which the dwelling is
located, and all contiguous property and related out-buildings in which the
client has ownership interest for long-term care programs, see WAC
182-513-1350
for home equity limits, when:
(i) The client
uses the home as a primary residence;
(ii) The client's spouse lives in the home;
(iii) The client does not
currently live in the home, but the client or the client's representative has
stated the client intends to return to the home; or
(iv) A relative, who is financially or
medically dependent on the client, lives in the home and either the dependency
is documented or a written statement of dependency is provided by the client,
the client's authorized representative, or by the client's dependent
relative.
(c) The value
of ownership interest in jointly owned real property is an excluded resource
for as long as sale of the property would cause undue hardship to a co-owner
due to loss of housing. Undue hardship would result if the co-owner:
(i) Uses the property as the client's
principal place of residence;
(ii)
Would have to move if the property were sold; and
(iii) Has no other readily available
housing.
(2)
Proceeds from the sale of an interest described in subsection (1)(b) of this
section, are excluded as a resource if the client uses the proceeds to purchase
another home by the end of the third month after receiving the proceeds from
the sale.
(3) An installment
contract from the sale of the home described in subsection (1)(b) above is not
a resource as long as the client plans to use the entire down payment and the
entire principal portion of a given installment payment to buy another excluded
home, and does so within three months after the month of receiving such down
payment or installment payment.
(4)
The value of sales contracts is excluded when the:
(a) Current market value of the contract is
zero;
(b) Contract cannot be sold;
or
(c) Current market value of the
sales contract combined with other resources does not exceed the resource
limits.
(5) Sales
contracts executed before December 1, 1993, are excluded resources as long as
they are not transferred to someone other than a spouse.
(6) A sales contract for the sale of the
client's principal place of residence executed between December 1, 1993, and
May 31, 2004, is an excluded resource unless it has been transferred to someone
other than a spouse and it:
(a) Provides
interest income within the prevailing interest rate at the time of the
sale;
(b) Requires the repayment of
a principal amount equal to the fair market value of the property;
and
(c) The term of the contract
does not exceed thirty years.
(7) A sales contract executed on or after
June 1, 2004, on a home that was the principal place of residence for the
client at the time of institutionalization is an excluded resource as long as
it is not transferred to someone other than a spouse and it:
(a) Provides interest income within the
prevailing interest rate at the time of the sale;
(b) Requires the repayment of a principal
amount equal to the fair market value of the property within the anticipated
life expectancy of the client; and
(c) The term of the contract does not exceed
thirty years.
(8)
Payments received on sales contracts of the home described in subsection (1)(b)
of this section are treated as follows:
(a)
The interest portion of the payment is treated as unearned income in the month
of receipt of the payment;
(b) The
principal portion of the payment is treated as an excluded resource if
reinvested in the purchase of a new home within three months after the month of
receipt;
(c) If the principal
portion of the payment is not reinvested in the purchase of a new home within
three months after the month of receipt, that portion of the payment is a
liquid resource as of the date of receipt.
(9) Payments received on sales contracts
described in subsection (4) of this section are treated as follows:
(a) The principal portion of the payment on
the contract is treated as a resource and counted toward the resource limit to
the extent retained at the first moment of the month following the month of
receipt of the payment; and
(b) The
interest portion is treated as unearned income the month of receipt of the
payment.
(10) For sales
contracts that meet the criteria in subsection (5), (6), or (7) of this section
but do not meet the criteria in subsection (3) or (4) of this section, both the
principal and interest portions of the payment are treated as unearned income
in the month of receipt.
(11)
Property essential to self-support (PESS) is excluded as a resource within
certain limits. There are three categories of PESS:
(a) Real and personal property used in a
trade or business:
(i) That is a resource
defined under WAC
182-512-0200;
(ii) That is in current use as described
under the Social Security Administration's Program Operations Manual System
(POMS) SI 01130.504; and
(iii)
Where the trade or business is a sole proprietorship or simple
partnership.
(b)
Nonbusiness income-producing property (i.e., property not used in a trade or
business), such as:
(i) Houses or apartments
for rent; and
(ii) Land, other than
home property.
(c)
Property used to produce goods or services essential to a client's daily
activities, such as land used to produce vegetables or livestock, which is used
only for personal consumption in the client's household. This includes personal
property necessary to perform daily functions including vehicles such as boats
for subsistence fishing and garden tractors for subsistence farming, but does
not include other vehicles such as those that qualify as automobiles (e.g.,
cars, trucks).
(12) The
agency excludes a client's real and personal property used in a trade or
business, described under subsection (11)(a) of this section, regardless of
value as long as it is in current use (as described under POMS SI 01130.504) in
the trade or business and remains used in the trade or business.
(13) The agency excludes up to $6,000 of a
client's equity in nonbusiness income-producing property, described under
subsection (11)(b) of this section, if it produces a net annual income to the
client of at least six percent of the excluded equity.
(a) If a client's equity in the property is
over $6,000, only the amount over $6,000 is counted toward the resource limit,
as long as the net annual income requirement of six percent is met on the
excluded equity.
(b) If the six
percent requirement is not met due to circumstances beyond the client's control
(e.g., illness), and there is a reasonable expectation that the activities will
again meet the six percent rule, the same exclusions as in subsection (13)(a)
of this section apply.
(c) If a
client has more than one piece of real property in this category, each is
independently evaluated to see if it meets the six percent return, and the
total equities of all those properties are added to see if the total is over
$6,000. If the total is over the $6,000 limit, the amount exceeding the limit
is counted toward the resource limit.
(d) The equity in each property that does not
meet the six percent annual net income limit is counted toward the resource
limit, with the exception of property that represents the authority granted by
a governmental agency to engage in an income-producing activity if it is:
(i) Used in a trade or business or
nonbusiness income-producing activity; or
(ii) Not used due to circumstances beyond the
client's control (e.g., illness), and there is a reasonable expectation that
the use will resume.
(14) Property used to produce goods or
services essential to a client's daily activities is excluded if the client's
equity in the property does not exceed $6,000.
(15) Personal property used by a client as an
employee for work is not counted toward the resource limit, regardless of
value, while in current use (as described under POMS SI 01130.504), or if the
required use for work is reasonably expected to resume.
(16) Interests in trust or in restricted
Indian land owned by a client who is of Indian descent from a federally
recognized Indian tribe or held by the spouse or widow/er of that client, is
not counted toward the resource limit if permission of the other people, the
tribe, or an agency of the federal government must be received in order to
dispose of the land.
(17) Receipt
of money by a member of a federally recognized tribe from exercising federally
protected rights or extraction of excluded resources, such as fishing,
shell-fishing, or selling timber from protected land, is considered conversion
of an excluded resource during the month of receipt. Any amount remaining from
the conversion of this excluded resource on the first of the month after the
month of receipt will remain excluded if it is used to purchase another
excluded resource. Any amount remaining in the form of a countable resource
(such as in a checking or savings account) on the first of the month after
receipt, will be added to other countable resources for eligibility
determinations.
Notes
11-24-018, recodified as WAC 182-512-0350, filed 11/29/11,
effective 12/1/11. Statutory Authority:
RCW
74.08.090 and ARRA of 2009,
Public Law
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