For the purpose of determining eligibility for the Food Stamp Program, resources are defined as assets available to the household such as money in bank accounts, certificates of deposit, stocks, bonds, land or houses that the household could sell. Vehicles are also considered to be resources.

Some assets are totally excluded from consideration as resources. Other assets are considered inaccessible if the household can demonstrate that the asset is not available and will not likely become available.

Households may not transfer resources to become eligible or remain eligible for food stamp benefits.

At initial application and at application for recertification, resources are determined at the time of the interview. If the household's countable resources exceed the limits at the time of the interview, the application will be denied. The household may reapply at any time. When the household reapplies, resources will be re-determined at the time of the next interview. See [FSC 12230] for handling reported changes in resources.

A household's eligibility will be denied or terminated when the value of the household's countable resources (both liquid and non-liquid assets) exceed the following:

• $3,000 for all households with an aged or a disabled (as defined in the [Glossary], definition of Aged/Disabled Household) member regardless of household size; 

          OR

• $2,000 for all other households.

A household where at least one member receives a TEA benefit as specified in FSC 1920 is categorically eligible and the Food Stamp Program’s resource limits will not apply to that household.

If no household member receives TEA benefits, the household is classified as categorically eligible only if all household members receive SSI benefits. If not all household members receive SSI benefits, the entire household is not categorically eligible. However, the individual household members who receive SSI benefits are categorically eligible. This means that any resources solely owned by an SSI recipient are not to be counted when the household’s total resources are determined, but all resources owned by the other household members are to be counted. If the resources owned by household members who do not receive SSI exceed the resource limit, the entire household (including the SSI recipient) is ineligible to participate in the Food Stamp Program. Co-owned resources will not automatically be excluded under this policy. Instead, the resource will be handled in the same manner as any other jointly owned resource. See [FSC 4910] and [FSC 4601] for instructions.

Resource standards are uniformly applied to all households except those in which all members are recipients of TEA and/or SSI. Except for categorically eligible households, all resources currently held by the household and all resources anticipated to be received during the certification period must be reported at the time of the interview.

01/01/03

A general list of excluded resources is provided below. Each excluded resource is explained in detail in the sections of policy immediately following.

• The household's home and lot.  ([FSC 4410])
• Household and personal goods.  ([FSC 4420])
• Life Insurance policies and pension funds.  ([FSC 4420])
• Certain vehicles.  ([FSC 4840])
• Property essential for the maintenance or use of certain excluded vehicles.  ([FSC 4430])
• Income producing property.  ([FSC 4440])
• Payments that are excluded as a resource by law.   ([FSC 4450]) 
• Resources owned by a SSI recipient in a mixed household.  ([FSC 4300])
• Resources owned by the members of a categorically eligible household ([FSC 4300])
• Earmarked resources.  ([FSC 4460])
• Indian lands and certain payments to Indians.  ([FSC 4460])
• Burial lots, limited to one per household member.  ([FSC 4460])
• Prepaid burial plans to the extent that the funds in such a plan are inaccessible.  ([FSC 4602])
• Inaccessible resources. ([FSC 4500])
• Educational Income ([FSC 4450] & [FSC 4460])

The resource exclusions in [FSC 4410-4580] apply to all eligible household members, ineligible aliens, and disqualified household members:

The home and lot is the household's residence and any surrounding property not separated from the residence by intervening property owned by others. Rights-of-way, such as roads that run through the property surrounding the home, do not affect the exemption. Other structures on the homestead will be evaluated to determine if they can be excluded as described here.

If the other structure is a house (or mobile home) that is habitable (has indoor plumbing facilities, running water and is livable), then the house (not the land on which it sits) will be counted as a resource provided it is not income producing. If the utility company has turned off  the water, the house will be considered as having "running water".

If the other structure is a building that is not a traditional house, it will be considered as an excluded resource i.e., tool sheds, corncribs, woodsheds, barns, etc

If these structures produce income (i.e. rental payments), this income is not excluded, and is treated in accordance with [FSC 5715].

1. Employment
2. Training for future employment
3. Illness of a household member
4. Inhabitability caused by casualty or natural disaster, if the household plans to return to the residence.

Verification of the value of the home and lot must be obtained if the information given by the household about the home and lot affects eligibility and is questionable. All circumstances surrounding this decision must be documented.

4420   Household and Personal Goods/Life Insurance                            10-01-08

The following items will be excluded when determining countable resources:

1.      Household goods such as, but not limited to, appliances, microwaves, lawn mowers, garden tractors, furniture and TV satellite dishes.

2.      Personal effects such as, but not limited to, tools, jewelry and clothing.

3.      The cash value of life insurance policies.

4.      Prepaid burial policies and plans to the extent the funds in such a plan are inaccessible.

NOTE:   Any amount that can be withdrawn (less a $1,500 per person disregard) 

               from prepaid burial plans without a contractual obligation to repay will be  

               counted as a resource for FOOD STAMP PROGRAM purposes. See FSC

               4602.

5.      Livestock.

FSC Manual

10/01/08

4421   Pension or Retirement Funds                                                    10-01-08

Tax-preferred retirement accounts (e.g., IRAs) and employer sponsored retirement accounts are excluded as countable resources in determining FOOD STAMP PROGRAM eligibility. This includes any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided for in 5 U.S.C. 8439. It also provides for the exclusion of any successor retirement accounts that are exempt from Federal taxes.

The chart on the following page provides guidance on pension or retirement accounts based on the Internal Revenue Code of 1986.

Real or personal property that is directly related to the maintenance or use of a vehicle will be excluded as a resource if that vehicle is excluded as a resource because it is:

1. Annually producing income consistent with its fair market value; or
2. Used primarily (over 50 percent of the time that the vehicle is used) for income producing purposes such as, but not limited to taxis, trucks, or fishing boats; or
3. Used to transport a physically disabled household member.

Only that portion of real property actually involved in the maintenance or use of an excludable vehicle is to be excluded under these provisions.

Example 1     A household owns a one-acre field but only uses 1/4 of that acre to park and maintain equipment for a self-employment enterprise.  Only the 1/4-acre actually in use will be excluded.  If the one-acre tract is worth $1,000, 1/4 of the value is $250.  $250 would be excluded as a resource.  $750 would be counted as a resource.

This method of determining the amount of resource exclusion is not affected by state or local zoning laws or by the household's ability to convert the property to a cash resource.

Example 2     The household in example 1 above declares that the one-acre tract they own is in an incorporated industrial area.  They state that local laws prevent them from selling anything less than the full one-acre tract.  In spite of this, only the $250 amount for the 1/4-acre actually used will be excluded as a resource.  $750 will be counted as a resource.

Income producing property is one of the following.

1. Property that annually produces income consistent with its fair market value, even if only used on a seasonal basis.   (For example, farmland that is rented only during the crop season would be excluded for the entire year). See [FSC 4441] for instructions on determining fair market value.
2. Property that is essential to the employment or self-employment of a household member.   (For example, farmland that is used by a household member to produce a crop of tomatoes that is sold to a cannery would be excluded as essential to self-employment.)
3. Rental homes used by households for vacation purposes at some time during the year so long as the property annually produces income consistent with its fair market value.
4. Work related equipment such as, but not limited to, the tools of a tradesman or the machinery of a farmer, which is essential to the employment or self-employment of a household member.

NOTE: Tools are excluded either as personal property or income producing property.

Property essential to the self-employment of a household member engaged in a farm operation may be excluded as a resource for one year from the date the farm operation is terminated. The exclusion extends to vehicles used in the farming operation ([FSC 4430]) as well as land and machinery used in the operation.

5.  Installment contracts payable to the household. See [FSC 4570] for instructions on excluding installment contracts when the purchaser has defaulted on the agreement.

When a county office worker must determine if property is producing income consistent with its fair market value, the property's fair market value will be based on the prevailing rate of return in the area where the property is located or used.  

Example: A house rented for $200 a month is considered to be producing income consistent with fair market value if similar houses in the same area rent for about the same amount.

When the worker cannot determine whether property is producing income at the prevailing rate of return based upon information furnished by the household, a knowledgeable source may be contacted. A knowledgeable source should, by virtue of his professional experience, be able to determine if the property is producing income consistent with fair market value. (For real property located in Arkansas, the assessed value times 5 will be used as the fair market value. See [FSC 4712] for additional information.) Local realtors, local FHA or Small Business Administration Offices or the tax assessor should be knowledgeable of the value of real property located outside Arkansas. Local car dealers should know the value of vehicles.

The knowledgeable source will be provided with the appropriate information and asked to determine if the property is producing income at the prevailing rate of return. Households that disagree with the assigned fair market value or prevailing rate of return may provide verification of these items.

NOTE: Property excluded as a resource because it is essential to employment does not have to produce income consistent with fair market value. For example, land used by a farmer does not have to produce any countable income to be excluded.

The current list of resources excluded by Federal statute includes the following items.

1. As authorized by the Low-Income Home Energy Assistance Act (P.L. 99-425), the amount of home energy assistance payments or allowances provided directly to or on behalf of a household.
2. Benefits received from the Special Supplemental Food Program for Women, Infants and Children (WIC) under P.L. 92-443, Sec. 9 and P.L. 100-435, which amended Section 77(m)(7) of the Child Nutrition Act of 1966.
3. Reimbursement from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646, Sec. 216),
4. Payments to Indian tribes as specified below:

• Payments received by the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation from Indian Claims Commission as designated under P.L. 95-433, Sec. 2

• Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (P.L. 96-420, Sec. 5);

• Payments received from the disposition of funds to the Grand River Band of Ottawa Indians (P.L. 94-540);

• Payments received under the Alaska Native Claims Settlement Act (P.L. 92-203, Sec. 21(a) and Section 15 of P.L. 100-241, Alaska Native Claims Settlement Act Amendments of 1987 or the Sac and Fox Indian Claims Agreement (P.L. 94-189); 

• Payments received by certain Indian tribal members under P.L. 94-114, Sec. 6, regarding submarginal land held in trust by the United States.

• Payments of relocation assistance to members of the Navajo and Hopi Tribes under P.L. 95-531.

• Payments to the Turtle Mountain Band of Chippewas, Arizona (P.L. 97-403);

• Payments to the Blackfeet, Grosventre, and Assiniboine tribes (Montana) and the Papago (Arizona) (P.L. 97-408);

• Per capita and interest payments made to the Assiniboine Tribe of the Fort Belknap Indian Community and the Assiniboine Tribe of the Fort Beck Indian Reservation (Montana) (P.L. 98-124, Section 5);

• Per capita and interest payments made to the Red Lake Band of Chippewas (P.L. 98-123, Section 3, 10/13/83);

• Payments to the Saginaw Chippewa Indian Tribe of Michigan (P.L. 99-346, Section 6(b) (2));

• Per capita payments to the Chippewas of Mississippi (P.L. 99-377, Section 4(b), 8/8/86);

• Payments to heirs of deceased Indians under the Old Age Assistance Claims Settlement Act except for per capita shares in excess of $2,000 (P.L. 98-500, Section 8, 10/17/84);

• Payments to the Puyallup Tribe of the State of Washington (P.L. 101-41, 6-21-89); and

• Payments under the White Earth Reservation Land Settlement Act of 1985 to the White Earth Band of Chippewa Indians in Minnesota (P.L. 99-264)

• Payments under the Seneca Nation Settlement Act of 1990 to members of the Seneca Nation (P.L. 101-503).

• Funds appropriated in satisfaction of judgements awarded to the Seminole Indians in dockets 73, 151, and 73-A of the Indian Claims Commission (P.L. 101-277)

• Funds distributed or held in trust for members of the Chippewas of Lake Superior (P.L. 99-146).

• Assistance paid under P.L. 95-608, the Indian Child Welfare Act of 1978.

• Payments to the Confederated Tribes of the Colville Reservation under the Grand Coulee Dam Settlement Act (P.L. 103-436).
• Funds appropriated in satisfaction of judgements awarded to the Seminole Indians by the indian Claims commission (P.L. 101-277)
• Distributions under the Michigan Indian Claims Settlement Act, Section 111, to the Ottawa and Chippewa Indians of Michigan (P.L. 105-143)

5. Per capita payments of $2,000 and less made under Public Law 98-64 to Native Americans from judgment awards and funds held in trust by the Secretary of the Interior and purchases made with certain per capita payments to specific tribes or bands of Indians.
   
   This exclusion applies on a per person and not a per household basis. It applies individually to each payment regardless of how frequently the payments are made and regardless of the number of months for which the payment is made. When such payments are deposited in a bank or financial institution, the funds remain excluded. The length of the exclusion period will be determined by the type of funds in the account. See [FSC 4960].
   
   The purchase exclusion extends only to purchases of property with funds distributed to Native Americans after December 31, 1981, but before January 12, 1983, under a plan approved by Congress. The exclusion applies to initial purchase only and not to subsequent purchases. Property remains excluded only as long as the person who originally received the exclusion holds the property.   Since more than one per capita payment may have been received during the period from December 31, 1981 to January 12, 1983, the total exclusion allowed for the property may exceed $2,000.
6. Certain payments made to Vietnam veterans and/or children of Vietnam veterans. This includes:
   • Payments authorized under P.L. 101-239, the Omnibus Reconciliation Act of 1989, Section 10405, the Agent Orange Settlement fund or any other fund established pursuant to the settlement in the Agent Orange product liability litigation, M.D.L. No 381 (E.D.N.Y.)
   • Any monetary allowances paid under P.L. 104-102, Section 1805(d), to a child of a Vietnam Veteran for any disability resulting from spina bifida suffered by such child.
   • Any monetary allowances paid under P.L. 106-419, Section 1815 (a), to any individual with one or more covered birth defects if he or she is a child of a female Vietnam veteran.
      
7. Payments to U.S. citizens of Japanese ancestry and permanent resident Japanese aliens or their survivors under the Civil Liberties Act of 1988 (P.L. 100-383).
    
8. Federal and other disaster relief payments. This resource exclusion applies to disaster relief payments received from the Federal Emergency Management Assistance (FEMA) under P.L. 93-288, Sec. 312 (d) as amended by P.L. 100-707, Section 105 (i) the Disaster Relief and Emergency Assistance Amendments of 1988. (NOTE: Not all FEMA payments are classified as disaster relief.) This resource exclusion applies to Federal assistance provided to persons directly affected and to comparable disaster assistance provided by states, local governments, and disaster assistance organizations. For payments to be excluded, the disaster or emergency must be declared by the President. This resource exclusion also applies to Disaster Unemployment Assistance paid as a result of a major disaster and to Disaster Relief Employment. See FSC 5405, items 16 and 17 for additional information.
    
9. Payments received through the Radiation Exposure Compensation Act, P.L. 101-426, Sec. 6 (h) (2), 10/15/90. This law establishes a program to compensate individuals for injuries or deaths resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada and Utah.
   
10. Income amounts necessary for the fulfillment of a PASS (Plans for Achieving Self-Support) under Title XVI of the Social Security Act. See FSC 4460 for additional IDA exclusions
    
11. The value of assistance to children under P.L. 89-642, Section 11(b) of the Child Nutrition Act of 1966 and P.L. 79-396, the National School Lunch Act.  Under P.L. 100-435 which amended section (17)(m)(7) of this act, coupons that may be exchanged for food at a farmer's market may also be excluded.
    
12. Payments under P.L. 107-171, the Food Stamp Reauthorization Act of 2002, all student financial assistance. See [FSC 1622.3]
    
13. Payments made to individuals because of their status as victims of Nazi persecution under P.L. 103-286.
    
14. Earned Income Credits payments received as a lump sum or as payments under Section 3507 of the Internal Revenue Code by any household member. ) A Federal earned income tax credit received either as a lump sum or as payments under section 3507 of the Internal Revenue Code is excluded for the month of receipt and the following month for the individual and that individual's spouse. Any Federal, State or local earned income tax credit received by any household member is excluded for 12 months, if the household was participating in the Food Stamp Program at the time of receipt of the tax credit and if the household participates continuously during that 12-month period. Breaks in participation of one month or less due to administrative reasons, such as but not limited to, delayed recertification or missing or late reports is not considered as nonparticipation in determining the 12-month exclusion
    
15. Under P.L. 103-22, compensation made to crime victims as authorized by the Crime Act of 1984.
16. Under P.L. 99-576, Veteran's Benefits and health Care Authorization Act of 1996, any amount by which the basic pay of an individual is reduced to comply with this law.
17. Funds, including interest accruing, in an individual development account under the TANF block grant program will be excluded during any period the individual maintains or makes contributions into such an account (P.L. 104-193).
18. Funds, including interest accruing, in an individual development account (IDA) under the TANF block grant program will be excluded during any period the individual maintains or makes contributions into such an account(P.L. 104-193). See FSC 4460 for additional IDA exclusions.
19. Funds in  Department of Housing Urban Development's (HUD) Family Self-Sufficiency Program escrow accounts are excluded as resources when determining eligibility for food stamps. When a Family Self-sufficiency program participant has an increase in earnings, the public housing authority increases his or her rent, but deposits the increase in an interest bearing account. When the participant successfully completes the program and can verify that no household member is receiving welfare assistance, he or she receives the funds in the account.  Funds may be withdrawn from the escrow account before completing the program with permission from the housing authority, but only for purposes related to goal of the FSS contract, e.g.-completion of higher education, job training or start up costs of a small business.  Since the funds in the escrow accounts, as well as any funds withdrawn from them prior to completion of the program are not available to buy food, the funds are inaccessible-thus excluded as resources.

4460 Other Excluded Resources                                                                                         10/01/08

Burial Lots

One burial lot per household member will be excluded as a resource.

Cash and Counseling Demonstration

Money received from the Cash and Counseling Demonstration for Medicaid recipients is excluded as a resource. This program provides cash to certain Medicaid recipients so that they can purchase personal care services.

Earmarked Resources

Earmarked resources are governmental payments such as those made by the Department of Housing and Urban Development through the Individual and Family Grant Program or disaster loans or grants made by the Small Business Administration. Earmarked resources must be designated for the restoration of a home damaged in a disaster, and the household must be subject to a legal sanction if the funds are not used as intended.

Educational Income

Educational income will be excluded as a resource in its entirety when received by eligible students. This exclusion includes all federal, state and privately funded educational assistance including VA educational assistance paid under the Montgomery GI Bill. 

Educational Savings

Educational savings/account plans that receive tax-preferred status under the federal tax code are excluded as a resource to the household. 

• Section 529 qualified tuition program, which allows owners to prepay a student’s education expenses or to contribute to an account to pay those expenses.

• Coverdell education savings account, an IRA type of account designed to pay a student’s education expenses. 

Indian Lands

Lands held jointly with the tribe, or lands that can be sold only with the approval of the Bureau of Indian Affairs are considered Indian Lands. Indian Lands are excluded as a resource.  

Individual Development Accounts  

Funds, including interest accruing, in an individual development account under the TANF block grant program will be excluded during any period the individual maintains or makes contributions into such an account (P.L. 104-193).

Under the Family Savings Initiative Act of 1999 (Arkansas Act 1217) households with low income and few assets may accumulate assets by opening an individual development account (IDA). An IDA Program participant must be a resident of the State of Arkansas and a member of a TEA recipient family or a member of a family with income below 185% of the federal poverty level. The family must have a net worth of $10,000 or less disregarding their primary dwelling and one motor vehicle. Account contributions are matched at a rate of $3.00 for each $1.00 contributed by the account holder. Matching dollars may not exceed $2,000 per account holder or $4,000 per household. 

A Family Savings IDA may be used for any of the following reasons:

• Home purchase (limited to qualified first-time home buyers)*

• Business capitalization*

• Post secondary educational expenses*

• Individual retirement account

• Vehicle purchase or repair (if not the sole purpose of the IDA)

(* If Federal TANF funds are used as a match, only purposes 1, 2 and 3 are allowable.)

The value of the IDA is not a countable resource. Matching funds deposited into the account will not be counted as income. (See FSC 5413.1.)

Funds in Department of Housing and Urban Development's (HUD) Family Self-Sufficiency Program escrow accounts are excluded as resources when determining eligibility for food stamps. When a Family Self-sufficiency program participant has an increase in earnings, the public housing authority increases his or her rent, but deposits the increase in an interest bearing account. When the participant successfully completes the program and can verify that no household member is receiving welfare assistance, he or she receives the funds in the account. Funds may be withdrawn from the escrow account before completing the program, with permission from the housing authority, but only for purposes related to the goal of the FSS contract, e.g. - completion of higher education, job training, or start up costs of a small business. Since the funds in the escrow accounts, as well as any funds withdrawn from them prior to completion of the program are not available to buy food, the funds are inaccessible - thus excluded as resources.

The Good Faith Fund is operating a demonstration program called the Savings for Education, Entrepreneurship, and Down Payment (SEED) Program. The Program helps 3 and 4 year old child and their families save and plan for college. A savings account is opened and initially deposited with $500, which will be matched by $500 deposited by the Good Faith Fund. Any deposits made by the household will be matched dollar for dollar by the Good Faith Fund. Withdrawal from a SEED account requires two signatures – the account holder and a designated employee of the Good Faith Fund. The Good Faith Fund will not permit withdrawal unless there is a documented emergency – e.g., so the child will not be without shelter or medical care. The SEED account will be excluded as a resource and any deposits made by the Good Faith Fund into the child’s savings account will be excluded as income per FSC 5413.1.

Prorated Income

Monies that have been prorated and considered as income are excluded as a resource. For example, annualized or prorated self-employment income is excluded as a resource during the period it is being counted as household income. Refer to FSC 5630 for the procedures for handling self-employment income.

Excluded resources will be verified when questionable. Acceptable verification includes documentation or collateral contacts which establish that the resource is excludable.

The county office worker must document:

1. The type of resource;
2. The status of the resource as excluded; 
3. The reason for the exclusion.

Inaccessible resources are resources with a cash value not accessible to the household. Inaccessible resources include the following:

1. Irrevocable trust funds  ([FSC 4510])
2. Property in probate  ([FSC 4520])
3. Real property for sale  ([FSC 4530])
4. Resources of residents of shelter for battered women  ([FSC 4540])
5. Security deposits  ([FSC 4550])
6. Non-liquid resources against which a lien was placed to obtain a business loan  ([FSC 4560])
7. Installment contracts that are not producing any income  ([FSC 4570])
8. Resources unlikely to produce any significant amount of funds if sold  ([FSC 4580])

Any funds in or transferred to a trust and the income produced by that trust are considered inaccessible if all of the following conditions exist.

1. The funds held in irrevocable trust are either:

1. Established from the household's own funds and used by the trustee solely to make investments on behalf of the trust or to pay the educational or medical expenses of the beneficiary; or
2. Established from non-household funds by a non-household member, and totally unavailable to the household.

NOTE: If the household can petition the court to obtain money from a trust for reasons such as purchasing personal items or paying living expenses, the fund is not considered an irrevocable trust.

2. The trust arrangement will not likely cease during the certification period, and no household member has the power to revoke the trust arrangement or to change the name of the beneficiary.
3. The trustee administering the funds is a:

1. Court, institution, corporation, or organization not under the direction or ownership of any household member; or
2. An individual appointed by the court that has court imposed limitations placed upon the use of the funds.

4. The trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction or influence of a household member.

The status of the trust account must be verified if questionable.   Acceptable verification of inaccessible trust accounts include:

1. Statements from the financial institution managing the trust describing the terms of the trust; or
2. Court orders or letters from the court describing the terms of the trust.

The county office worker must document:

1. The amount of the trust fund;
2. The name of the person for whom the account is held in trust;
3. The name of the trustee, and the name of the financial institution handling the trust; 
4. The reasons for the decision to consider the trust accessible or inaccessible.

Property that household members expect to inherit following a decision of the court is considered an inaccessible resource.

Property that is in probate must be verified if questionable. Acceptable verification includes:

1. A statement from an attorney; or
2. A legal document, such as a court order.

The county office worker must document:

1. A description of the property the household expects to inherit;
2. When the household expects to receive the property; and
3. If verification is required, why the inaccessible resources were considered questionable, and the verification obtained.

Real property that the household is making a good faith effort to sell at a reasonable price is considered an inaccessible resource.

Verification of real property for sale must be supplied if the status of the property is questionable.   The worker will accept as proof of a good faith effort to sell real property at a reasonable price any of the following:

1. Collateral statements, 

2. Listings from real estate brokers, or 

3. Advertisements in local newspapers.

The worker must document:

1. Information about the property for sale - i.e. number of acres of land, location of house, etc.; and
2. The information used to establish a good faith effort to sell the property at a reasonable price.

Resources are considered inaccessible to residents of shelters for battered women and children if:

1. The resources are jointly owned by the residents and any members of their former household; and
2. The resident's access to the value of the resources is dependent upon the agreement of a joint owner who still resides in the former household.

The county office worker must verify that resources of shelter residents are inaccessible only when questionable. In no instance will the worker request verification if such verification will jeopardize the safety of the resident.

Acceptable verification includes:

1. Bank statements, pass books or correspondence indicating that an account is jointly owned;
2. Car payment books or loan agreements indicating that vehicles are jointly owned; or
3. Payment books, loan agreements or correspondence indicating that property is jointly owned.

Collateral contacts may be used as verification only if the resident has designated the collateral; and contact with the collateral will not jeopardize the safety of the resident.

 The worker must document why the resources of the resident are inaccessible. If inaccessibility is questionable, documentation must include:

1. Why the inaccessibility is questionable; and
2. How the questionable information was resolved. Due to the resident's special circumstances, questionable resources will be resolved through available sources. The co-owner of the resources must not be contacted.

Deposits paid by the household to secure rental property or utilities are considered inaccessible resources.

NOTE: Security deposits become accessible resources when they are refunded to the household.

If questionable, the county office worker must accept as verification of security deposits receipts or statements from the holder of the deposit.

The county office worker will document:

1. The nature of the questionable information;
2. How the questionable circumstances were resolved; and
3. The method/document used to verify the deposits.

Non-liquid resources such as land, crops, buildings, timber, farm equipment or machinery will be considered an inaccessible resource if all the following conditions are met:

1. A lien has been placed against the property; 
2. The lien results from a member of the household having obtained a business loan; 
3. The owner of the business has agreed not to sell the property until the note is paid. (This insures that the creditor's collateral interest is protected.)

This exclusion will not apply if the property owner could sell the mortgaged property and use the proceeds to pay off the loan. It applies only when the household is prohibited by the agreement from selling the mortgaged property.

Installment contracts are agreements under which an individual receives a monthly payment on property which has been sold. See [FSC 5710] for instructions on determining the amount of income received under an installment contract which is to be counted as income in the food stamp budgeting process.

When installment contracts are not producing any income because the purchaser is defaulting on the payments, the contract is considered an inaccessible resource. This is true until the property legally reverts back to the seller.

A resource is considered inaccessible if, as a practical matter, the household is unable to sell the resource for any significant return. A significant return is any return estimated to be more than $1,500 after estimated costs of sale or disposition and taking into account the ownership interest of the household.

Example - A household member owns a lot jointly with three siblings who are not household members. The lot is valued at $4,000. Costs of selling the lot are estimated at $500. $4,000 - $500 = $3,500 / 4 = $875. $875 is less than $1,501.

This policy does not apply to stocks or bonds or to other negotiable financial instruments.  It does apply to vehicles.  See [FSC 4860].

Verification of the value of a resource to be excluded will be required only if the information provided by the household is questionable.

To determine a household's total countable resources, the county office worker must consider the resources available to all eligible household members and the resources available to any household member disqualified for one of the following reasons:

1. Intentional Program Violation;
2. Failure to comply with the SSN requirement; 
3. Failure to comply with the Food Stamp E&T Program or Workfare.

The countable resources of ineligible aliens are also considered if the alien would otherwise be considered a household member.

Listed below are examples of liquid resources.

1. Bonds.
2. Cash on hand.
3. Funds held in individual retirement accounts (IRA's).
4. Funds held in Keogh Plans (when held solely by the household members).
5. Money in checking or savings accounts including Christmas clubs and children's accounts. (See [FSC 4601] for information about ownership of bank accounts.)
6. Mutual Funds.
7. Savings certificates. (See [FSC 4601] for information about ownership.)
8. Stocks.
9. Funds that may be withdrawn (less a $1,500 per-person disregard) from prepaid burial plans without a contractual obligation to repay. (See [FSC 4602]).

Liquid resources must be verified at initial application and thereafter when a new liquid resource is reported or when information about previously reported resources is incomplete, inaccurate, inconsistent or outdated. See the [Glossary], definition of "Verification" for additional information.  A full description of each type of resource, acceptable verification, and documentation is contained in [FSC 4601 - 4670].

When a food stamp household member holds a joint bank account or certificate of deposit with a member of another household and this ownership will make the household ineligible for food stamp benefits, the county office worker must determine how much, if any, of the funds will be counted a resource to the household. This determination will generally be based upon ownership of the funds.

Ownership is defined as to have or to hold as property or to possess. Normally, a person is considered as the owner of funds in a bank account if that person earned, received, or was given the funds that were deposited into the account.  For example, a food stamp household is not considered to be the owner of the funds in an account when no household member earned, received or was given any of the funds in the account.

The owner of the bank account is usually the one who deposits the money into the account or for whom deposits are made.

Example - An elderly client deposits her social security checks into a checking account each month. Her daughter's name has been added to the account. None of the daughter's funds have been deposited into the account. The client is the sole owner of the account.

There are exceptions.

Example - A legally married husband and wife are considered joint owners of the funds in a bank account as long as both names appear on the account. This is true regardless of which spouse deposits money to the account.

Ownership of funds in jointly owned bank accounts will be established through written statements from each of the joint owners. In the event that at least one of the joint owners cannot be located or refuses to cooperate, the worker will attempt to establish ownership of the funds in the account through collateral contact. Suggested sources of collateral contact include bank officers, attorneys, accountants or friends or relatives familiar with the arrangements of the co-owners of the bank account.

If no collateral contact familiar with the arrangement can be located or will cooperate, the household may be certified based only upon the written statements of any co-owner who is a household member. However, all efforts to obtain verification must be fully documented in the case record. Such documentation must contain a statement of why any collateral contact received could not be used.

If none of the money is owned by the food stamp household but the owner states the household is permitted to use some or all of the money in the account, then the amount that the household has been given permission to use will be counted as a resource. In this situation, ownership is transferred to the food stamp household.

NOTE: This policy does not apply to burial insurance. Insurance policies, including burial insurance, are totally excluded as a resource. See [FSC 4420].

Prepaid burial plans purchased from funeral homes, insurance companies, etc. are totally excluded to the extent the money in the prepaid account is inaccessible to the household. A prepaid burial fund is inaccessible when the household is not allowed to withdraw money from the account or is only allowed to withdraw funds with a written agreement to repay the missing funds. Even if funds are never withdrawn from a prepaid burial plan, the ability to make withdrawals is sufficient to qualify the funds in these plans as a resource.

Funds which may be withdrawn from prepaid burial plans without a written agreement to repay the funds are considered to be an accessible resource; however, a disregard of $1,500 per individual applies to accessible prepaid burial plans.

Example: A household consists of a man age 75 and his wife age 75. Both the man and his wife have prepaid burial plans in the amount of $2,500. The funds in both accounts are accessible. To calculate the amount of countable resources, the worker will subtract $1,500 from each account. [$2,500 - $1,500 = $1,000. $1,000 x 2 = $2,000.] The amount of countable resources in the prepaid burial plans is $2,000.

The total current surrender value of all bonds held by the household will be considered a countable resource. Cash surrender value of bonds is determined by use of a schedule. Schedules may be obtained from the household or from a bank, savings and loan, or broker. Information about the redemption value of U. S. Savings Bonds may be obtained from most banks or through the internet at  http://www.savingsbonds.gov/BC/SBCPrice.   Information is also available from:

Federal Reserve Bank
325 W. Capitol
Little Rock, AR 72201

Acceptable forms of verification include:

1. The bonds and verification of redemption value; or
2. Collateral contact with the broker, attorney or bank handling the bonds. The collateral must specify the number of bonds held by the household and the current redemption value.

Documentation must include:

1. The type of bond;
2. The number of bonds held by the household;
3. The current cash surrender value of each bond;
4. The figures used to determine the total value of the bonds; and
5. The verification obtained.

The current amount of cash on hand (less any current income) will be considered a countable resource.

The household's statement will be accepted as verification of cash on hand.

Documentation must include:

1. The total amount of cash on hand available;
2. The amount of cash on hand which is current income; 
3. The figures used to determine cash on hand less current income.

Please see chart in FSC 4421

Please see chart in FSC 4421

The current amount in any checking account, savings account, money market account, or credit union account (less any current income) will be considered a countable resource. This includes accounts established for minor children (except trust funds as specified in [FSC 4510]) and special accounts such as Christmas clubs. Also included are accounts belonging to non-household members when a household member has access to such accounts. See [FSC 4601] for instructions on determining ownership of and access to such accounts.

NOTE: Interest paid on checking and savings accounts will be considered income and handled as specified in [FSC 5711].

Acceptable verification includes updated passbooks; current bank statements; or collateral contact with the bank that specifies the household's current balance and recent withdrawals or deposits. The period of time for which withdrawals or deposits must be indicated may be specified by the caseworker. The caseworker will consider the balance declared by the household, the current income, and any large amounts of income recently available to the household.

Documentation must include:

1. The current amount in each checking and/or savings account;
2. Any current income included in the accounts;
3. The figures used to calculate the countable resource amount; and
4. The verification obtained.

The total amount currently invested by a household in a mutual fund will be considered a countable resource unless the mutual fund is a retirement account set up by an employer that is inaccessible to the household.

Mutual funds are accounts set up with money deposited by a group of individuals. Usually, a minimum deposit is required and the depositor is said to "own" so many "shares" of the mutual fund. The money in the fund is used by a manager/broker to make a variety of investments on behalf of the investor. For example, the funds may be placed in CD's or used to purchase stocks or bonds. In return, each investor receives a pro-rata share of any profits from the investment.

NOTE: The income received as profits from the fund will be considered unearned income in the month received or will be prorated over the period of intended use. 

Normally, the money invested in a mutual fund is accessible to the household. Although there may be a 6 to 7 day delay in the receipt of the money; usually, there is not a penalty for withdrawal. When a household has funds in a mutual fund set up as a retirement account by a member's employer, the household may not have access to the funds or may only have limited access. Such situations will be evaluated on a case by case basis.

Acceptable verification of the amount invested in a mutual fund includes a current statement from the fund; or collateral contact with the financial institution handling the fund.  In the case of mutual funds set up as a retirement fund, a statement from the employer. This statement should also verify the household's accessibility to money invested in the fund.

Documentation must include:

1. The name of the financial institution, broker etc. managing the fund;
2. The amount the household currently has invested in the fund; and
3. If the fund is a retirement fund, the terms under which the household may gain access to the money in the fund.

The total current amount of money held in savings certificates (i.e.- certificates of deposits) will be considered a countable resource. Penalties that might be extracted for early withdrawal will not be deducted.  Any certificates owned by a non-household member are a countable resource when a household member is a co-owner and the certificate is accessible to the household member.   To determine if the certificate is available to the household member,  the worker must review the terms of the contract. For example, if the certificate specifies that the certificate would be payable to the household member only upon the death of the owner, the funds are considered inaccessible. See [FSC 4601] for instructions on determining ownership of and access to such accounts.

NOTE: Interest paid on savings certificates will be considered income and handled as specified in [FSC 5711].

Acceptable verification includes current statements of account or collateral contact with the financial institution.  The collateral must specify the current value of the savings certificate and the most recent interest payment.  The certificate itself will be acceptable only if it reflects the current amount in the account.

The worker must verify accessibility to jointly owned certificates when questionable.  Acceptable verification includes the certificate if it establishes the terms of the co-ownership or collateral contact with an attorney or lending institution if the contact establishes the terms of the co-ownership.

Documentation must include::

1. The kind of savings certificate;
2. The terms of the certificate (i.e., when it will come to maturity);
3. The owner or owners of the certificate; and
4. The current amount of the certificate.

When establishing accessibility to jointly owned accounts, the worker must document:

1. The terms of the co-ownership;
2. Whether or not the terms of the co-ownership were considered questionable; and
3. If co-ownership was considered questionable, how the terms were verified.

The current per-share value multiplied by the total number of shares held by the household will be considered a countable resource. Anticipated sale costs like broker's fees are not deductible.  To determine the current per-share value of stocks, the county office worker may refer to the stock exchange report in the current daily newspaper.  For stocks not listed in the newspaper, the worker may obtain the information from an internet site, may contact a stockbroker, local financial institution, or the company that issued the stock.

Acceptable verification of the number of stocks held includes the stock certificates or collateral contact with the broker, local financial institution or the company issuing the stock. The contact must verify the name of the stock and the number of shares held by the household.

Acceptable verification of per-share amount includes an original or copy of the most recent stock exchange report from a daily newspaper or documentation of the contact with a stockbroker, financial institution, or the company that issued the stock.  If the value of the stock was verified via the internet, the internet page must be printed and filed in the case record as documentation.

Document must include:

1. The name of the stock;
2. The number of the stocks held by the household;
3. The per-share value;
4. The figures used to calculate the total value of the stock; and
5. The verification obtained.

When stock is sold the household is converting a resource from one form to another. The net amount received will be considered a liquid resource.

Non-liquid resources are non-excluded, accessible assets such as land or vehicles that may be converted to cash such as, but not limited to, the non-liquid resources listed below.

1. Buildings/houses/mobile homes not used as the household's residence.
2. Burial lots in excess of one per household member.
3. Vacation homes/time-share condominiums/RV-park shares.
4. Vehicles (licensed and unlicensed) including cars, trucks, vans, recreational vehicles, motorcycles, all terrain vehicles, golf carts, go-carts, mopeds, campers, and boats/boat motors/boat trailers.
5. Any personal property not specifically excluded in [FSC 4420].
6. Land not excluded in [FSC 4410].

For all non-liquid resources except vehicles, the equity value will be considered a countable resource. (See [FSC 4850] for instructions for determining the countable resource value of vehicles.) The equity value is the fair market value of the resource less encumbrances.

Generally, fair market value is the price which a willing seller could obtain for a property from a willing buyer. Fair market value is usually dependent upon several factors including the condition of the property and the rate at which similar property is being sold.

For food stamp purposes, the fair market value of real property located in Arkansas will be the current assessed value times 5. (The current assessed value represents 20% of the fair market value. By multiplying the assessed value X 5, the current fair market value will be obtained.) For example, if the assessed value is $250, the caseworker must multiply $250 X 5 to obtain fair market value. $250 X 5 = $1,250. $1,250 is the fair market value.

NOTE  To establish the fair market value of real property located outside Arkansas or of personal property, the caseworker is not required to use the assessed value.

Encumbrances are defined as the balance of the debt owned on the property excluding interest payments and other fees.

Non-liquid resources will be verified when the household makes application for food stamps for the first time, the household declares the resource for the first time; or information about the resource becomes incomplete, inaccurate, inconsistent or outdated. See the [Glossary], definition of "Verification" for additional information.

NOTE: If the declared equity value of the resource makes the household ineligible, no verification will be requested.

Acceptable verification of fair market value of real property located in Arkansas is a statement from the assessor in the county in which the property is located. This includes the household's notice of reappraisal and/or a tax bill if it reflects the assessed value of the property after the reappraisal.

Acceptable verification of fair market value of real property located outside Arkansas is a statement from a source knowledgeable of the fair market value of the property. Examples of such sources include local realtors, local Farmer's Home employees, or local tax assessors.

Acceptable verification of an encumbrance may include payment books, bank schedules, or a statement from the lender specifying the total principle amount of the indebtedness.  Any verification of an encumbrance must specify the amount of the principle owed.

Documentation of non-liquid resources must include:

1. A complete description of the non-liquid resource (This includes the legal description of real property if it is available.);
2. The household's statements regarding the fair market value of the non-liquid resource and any encumbrances; and
3. A statement of whether the declared value of the non-liquid resource is questionable.

If the declared value of the resource is questionable, the documentation must provide the following information::

1. Why the value of the non-liquid resource is questionable; and
2. The verification obtained.

Also, the worker must document the figures used to determine the equity value of a non-liquid resource.

All vehicles, licensed and unlicensed, must be evaluated to determine how much, if any resource value will be counted in the food stamp budget. The term vehicle includes cars, trucks, vans, recreational vehicles, motorcycles, all terrain vehicles, golf carts, go-carts, mopeds, campers, and boats/boat motors/boat trailers. "Junked" cars must be evaluated as well.

A licensed vehicle is a vehicle currently licensed by a state to operate on public roads and highways. Vehicles that bear a temporary dealer's permit are considered licensed.

An unlicensed vehicle is one that is not currently licensed by a state to operate on public roads and highways. This includes expired licenses. Unlicensed vehicles will be evaluated even if they are not running.

Resource value is determined for each vehicle individually.

Questions about the ownership of a vehicle arise when:

The title to a vehicle is held jointly in the name of two people but only one person has possession of the vehicle;

The title is held solely by one person, but the vehicle is considered to belong to someone else because that person is paying for the vehicle and drives and maintains the vehicle.

Example: A parent allows his child to purchase a vehicle in his name because the child cannot get the necessary credit approval.

Under Arkansas law, when one person buys property using the money or assets of another person, that property actually belongs to the person who furnished the money or assets to purchase the property. Therefore, when the title to an automobile is held by a member of a food stamp household, yet he or she verifies that he or she has no access to the vehicle and is not paying for the vehicle, the vehicle should not be counted as a resource to his or her household. (The vehicle will be considered a resource to the household of the person who furnished the money to purchase the vehicle and who drives and maintains the vehicle.)

In these instances, the household will be asked to provide verification that someone other than a household member is making payments on the vehicle and is driving and maintaining the vehicle. Verification of non-accessibility must be in the form of canceled checks or money order receipts that show the name of the person who actually makes the car payments and other documents (gas tickets, repair bills, etc.) that show this vehicle is being used and maintained by a person who is not a household member. In the absence of any of these documents, the household may provide collateral statements to verify the vehicle is inaccessible.

NOTE   This policy will not be applied to those situations where one person owns a vehicle but allows another person to drive it. The policy will only apply when the person who has possession of the vehicle is making payments on the vehicle and is using his own funds to maintain the vehicle.

Generally, a leased vehicle will not be considered a resource unless the title to the vehicle is registered in the customer's name and the lease stipulates that the payments are credited towards ownership of the vehicle. Each lease must be evaluated individually to determine if the payments can be credited towards ownership of the vehicle.

• A "Smart Buy" lease leads to ownership of the vehicle. The person who purchases a vehicle under the "Smart Buy" plan is considered to be the vehicle's owner immediately at the time of purchase. Vehicles purchased under a "Smart Buy" plan will be considered a resource to the household.
• An open-ended lease provides the customer an option to buy at the end of the lease period. Each open-ended lease must be evaluated individually. Generally, open-ended leases with the car title in the dealership's name are not considered a resource to the household and open-ended leases with the car title in the customer's name are considered a resource to the household.
• A close-ended lease does not provide the customer with an option to buy at the end of the lease period. A vehicle listed under a close- ended lease will not be counted as a resource to the household.

If a household is categorically eligible under the definition in [FSC 1920], all resources, including any vehicles, licensed or unlicensed, owned by household members, will be excluded.

Each food stamp household may exclude at least one vehicle, licensed or unlicensed.  If a household owns only one vehicle, that vehicle will be excluded.  The DHHS county office worker will document that the household owns only one vehicle and that vehicle is excluded.

If a household owns more than one vehicle, the county office worker must establish if any of those vehicles can be excluded under the rules provided below.  Under these rules, any vehicle, licensed or unlicensed, owned by the household will be excluded as a resource if: 

·        The vehicle is necessary for the employment of a household member.  Vehicles necessary for employment include only those used for job-related travel other than travel back and forth to the job site.  This includes vehicles such as, but not limited to, vehicles used by traveling salespeople or migrant farm workers following the job stream or home health aids traveling from home to home.  This exclusion applies during temporary periods of unemployment when the vehicle is in use.                                                                                 

·      The vehicle is classified as an income producing vehicles.  Income producing vehicles are those vehicles used primarily (over 50% of the time) for income producing purposes or those vehicles annually producing income consistent with their fair market value even if used only on a seasonal basis.  See FSC 4870 for instructions on determining fair market value.  This exclusion applies during temporary periods of unemployment when the vehicle is not in use.  For example, a taxi retains its exclusion while the driver is ill and unable to work, or a migrant's vehicle retains its exclusion if the migrant temporarily leaves the job stream.  A vehicle essential to the self-employment of a household member engaged in a farming operation may continue to be excluded as a resource for one year from the date the farm operation was terminated.  See FSC 4440 for additional information. 

·        The vehicle is used as the household's residence.  This includes boats, campers, travel trailers and travel homes when used as the household's principal residence 

·        The vehicle is used to transport a physically disabled household member.  (This exclusion will not apply to disabilities based strictly on a mental condition.)  Any vehicle may be excluded under these provisions as long as the vehicle issued to transport a physically disabled household member.  There is no requirement that the vehicle be either a special type of vehicle or be specially equipped.  There is a limit of one vehicle per physically disabled member.   

Disabled, as it relates to the exclusion of a vehicle to transport a physically disabled member, means either a permanent or a temporary disability.  Permanent disabilities are those that entitle an individual to receive a disability check from a source such as Social Security, SSI or VA.  Temporary disabilities are conditions such as, but not limited to, a broken leg, the recovery period following major surgery or conditions that require ongoing treatment such as dialysis or chemotherapy.  (Vehicles owned solely by a SSI recipient are excluded under the provisions in FSC 4300.) 

If the disabling condition is not obvious to the county office worker, the household will be asked to furnish verification.  Acceptable verification includes receipt of a check based on the disabling condition or a statement from a physician or other health professional such as a physical therapist.  The worker must document the cause of the disability and the period of time during which the disabling condition is expected to continue. 

·        The vehicle is necessary to carry the primary source of fuel for heating or water for home use. Households without either heating fuel or water piped into their homes may exclude one vehicle without meeting further tests about the capability or actual use of the vehicle.  For the purpose of applying this exclusion, all-electric homes will be considered to have fuel "piped in" if the household has electric heating devices in the home. The exclusion will apply for the entire year so long as the household expects to use the vehicle to haul fuel and/or water at some time during the year.

Example 1     A household uses a four-wheel drive vehicle to haul firewood.  The firewood is used in a wood furnace that is the household's primary source of heat.  The vehicle is totally excluded as a resource. 

Example 2     A household must haul its water from a neighbor's house.  Since they use their only vehicle to haul the water, this vehicle will be totally excluded as a resource. 

Example 3     A home is equipped with an electric heat pump.  However, the household actually uses a wood heater as its primary source of heat.  The household uses one of its vehicles to cut and haul the wood off of its property.  The vehicle will be excluded as a resource. 

Verification that the household does not have either water or heating fuel piped into its home may be requested if the household's statements are questionable.  Households (including all electric homes) which have both fuel and water piped into the home must verify that the excluded vehicle is used to transport the household's primary source of heating fuel or water.  Verification may be obtained through utility companies, collateral contacts, or through documentary evidence such as receipts for the purchase of wood.

Each food stamp household may exclude at least one vehicle as a resource.  Other additional vehicles may be excluded if they meet one of the conditions in FSC 4840. 

The resource value assigned to all non-excluded vehicles for purposes of determining food stamp eligibility will be either: 

·        The fair market value less a $4,650 limit; or

·        The equity value (fair market value less encumbrances). 

See FSC 4851 for instructions on determining fair market value.   

Fair market value less $4,650 will be assigned to: 

·        One non-excluded licensed vehicle per adult (age 18 or older) household member.

·        Any additional licensed non-excluded vehicles driven by a household under age 18 to commute to work or school or to look for work. 

When a non-excluded vehicle has a fair market value of less than $4,650, no resource value is counted when food stamp eligibility is determined.  When the fair market value exceeds $4,650, only the amount that exceeds the $4,650 benchmark is counted as a resource. 

For all other non-excluded vehicles both licensed and unlicensed, the GREATER OF the vehicle’s fair market value less $4,650 OR the vehicle’s equity value will be counted as a resource. 

Example 1     A household owns a licensed 1996 Plymouth Neon that is not excluded.  The current fair market value of the vehicle is $4,575.  $4,575 - $4,650 = 0.  No resource value is counted.   

Example 2     A household owns a 1998 Escort GT that is not excluded.  The current fair market value of the vehicle is $7,050.  Only $2,400 is counted as a resource.  ($7,050 fair market value – $4,650 benchmark =$2,400.) 

Example 3     A household owns a non-excluded all terrain vehicle (ATV) that is not licensed.  The fair market value, according to the dealer is $5,000.  The household owes $4,000 on the ATV.  The fair market value less $4,650 is $350.  The equity value is $1,000.  $1,000 will be counted as a resource to the household.  (See FSC 4860 for instructions on determining accessibility.) 

Example 4     A household owns a non-excluded boat, motor and trailer with a fair market value of $1,000.  The household owes nothing on the rig.  The household values the trailer at $500.  The fair market value less $4,650 is zero.  Since the trailer is licensed, an equity test is not applied.  The household values the boat and motor at $500.  The fair market value less $4,650 is zero.  The equity value is $500.  $500 will be counted as a resource to the household.  (See FSC 4860 for instructions on determining accessibility.)

Fair market value will be based on the wholesale value as verified by one of following free web sites: 

§         CarPrices.com

§         Autopricing.com

§         Intellichoice.com

§         Edmunds.com

§         Kelley Blue Book (kbb.com).   

No other web sites will be considered acceptable.  When the wholesale value is not available, a comparable value (i.e., trade-in or loan value) must be used.  The DHHS county office worker will print a copy of the web page showing the vehicle value and file it  in the case record. 

Fair market value is the average trade-in value of the vehicle as listed on the selected web site unless the household disputes the value and presents conclusive proof that the information obtained from the web site is inaccurate. 

NOTE:    The value of special or optional equipment or low mileage will not be considered when determining the average trade-in value of a vehicle. 

When a non-excluded vehicle is too new to appear on the web sites, the worker may determine the current average trade-in value by contacting a local car dealer or by consulting a recent newspaper ad for used cars of the same make, model and year.  (A copy of the ad should be placed in the case record as documentation.)  Information such as contracts for purchase may be inaccurate because vehicles decrease in value substantially once they become "used." 

When a non-excluded vehicle is too old to appear on the web sites, the worker may accept the household's statement of value if the statement is not questionable.  To determine if the statement is questionable, the worker will consider the age and make of the vehicle.  For example, luxury cars such as Cadillac’s, Mercedes, and Porsches do not lose value as quickly as other cars.  A four-wheel drive vehicle will usually retain a high value also.  Antique vehicles may have a high resale value if such vehicles have been properly maintained or have been restored.  If the assigned value is questionable and information about the vehicle cannot be found on any of the designated web-sites, the worker may accept a statement from a dealer or a copy of a newspaper ad for a similar vehicle.  (A copy of the ad should be placed in the case record as documentation.) 

A household may indicate that for some reason such as body damage, inoperability due to motor failure or other major malfunction, or high mileage, a vehicle is in less than average condition.  Households are allowed to contest the web sites value of a vehicle when its depreciated condition, in comparison with the average condition of the same make, model and year of vehicle, makes its value "less than average."  The worker may accept statements from reputable repair shops to verify high mileage motor failures or other major malfunctions.  Police reports or insurance documents may be accepted as proof of the current condition if a vehicle has been wrecked.  Other proof may be accepted if it is conclusive in the worker's judgment. 

The fair market value of non-excluded unlicensed vehicles is determined in the same manner as the fair market value of non-excluded licensed vehicles.  See FSC 4821 above. 

Example        A household owns a 1968 Ford Thunderbird that is currently being restored.  It is unlicensed.  The household estimates that the current fair market value of the Thunderbird is $1,000.  The household owes nothing on the car.  $1,000 will be added to the household's other resources. 

Normally, the fair market value of a "junked" vehicle will be the price the household anticipates it could receive if the vehicle were sold for scrap.  Antique car and truck bodies may sell for more if they are in a condition to be restored.  The worker will accept the household's statement of the value of a "junked" vehicle unless it is questionable.  For vehicles that do not appear on the web sites, the vehicle's current value may be substantiated by statements from dealers or newspaper ads.  (See above.)

It is the household's responsibility to provide conclusive proof of the vehicle's current fair market value.  If documentation submitted by a household is inconclusive or questionable, the worker may request additional documentation.  Or, the worker may contact collateral sources such as dealers to determine how the value was assigned to the vehicle.  Before contacting the dealer, the worker may wish to consult publications similar to the "NADA Book" or may check newspaper ads to determine the value of similar vehicles. 

The worker must document: 

1.      Why the documentation provided is considered questionable or inconclusive - e.g. was the value stated by a dealer substantially less than the web site value?  Was any reason given by the dealer for this difference in value?  Is the reason plausible? 

2.      What the household was instructed to do to clear up the questionable documentation.  The household must be issued a Request for Information (DCO-191) specifying what action the household must take.  

3.      How the worker finally arrived at the fair market value of the vehicle which is the subject of the dispute.  The worker must include all contacts made by the worker or information obtained by the worker as well as any information provided by the household.  When a newspaper ad is used to establish the fair market value of a vehicle, either a dated copy of the ad or a dated original must be attached to the case record. 

The fair market value of boats, motors, campers, motorcycles, recreational vehicles, etc. not listed on the web sites will be determined through current newspaper advertising or a dealer’s statement.  The worker may accept the household’s statement about the value of older model vehicles, “junked” vehicles and vehicles that are generally known to be inexpensive.

If resource value of any non-excluded vehicle makes the household ineligible to receive food stamp benefits due entirely or in part to the countable value of a vehicle, the county office worker must determine if that vehicle is an inaccessible resource. A vehicle is considered to be inaccessible if, as a practical matter, the household would be unable to sell the vehicle for a significant return. This means that unless the household would receive more than $1,500 for the sale of the vehicle, the vehicle would not produce a significant return and would be considered an inaccessible resource. If the estimated return (equity value) assigned to the vehicle is $1,500 or less, the vehicle will not be considered an available resource. None of the vehicle’s value will be counted as a resource.

To determine the equity value, the worker will subtract the amount owed by the household on the vehicle from the far market value of the vehicle.  See [FSC 4851] for instructions on establishing fair market value.  the amount owed on the vehicle will be verified if the information provided by the household is questionable.

Example:  A household owns a 1999 Honda Civic with a fair market value of $9,450. The countable resource value is calculated as $9,450 - $4,650 = $4,800. The worker must determine if the vehicle is accessible by subtracting the amount owed on the vehicle from the fair market value - $9,450 fair market value - $9,000 amount owed on vehicle = $450 estimated return. The countable resource value is $0.

If the estimated return on the vehicle is $1,501 or more, only the amount of the estimated return (equity value) would be counted as a resource.

Example A household owns a 1999 Honda Civic with a fair market value of $9,450.  The countable resource value is calculated as $9,450 - $4,650 = $4,800. The worker must determine if the vehicle is accessible by subtracting the amount owed on the vehicle from the fair market value - $9,450 fair market value - $7,500 amount owed on vehicle = $1,950 estimated return. The vehicle is an accessible resource.

Accessibility will be determined whenever a vehicle is first reported.  Thereafter, accessibility will be re-determined only at application, initial and recertification.  Accessibility will be determined only so long as the value of the vehicle makes the household ineligible to participate in the food Stamp Program.

4910 Jointly Owned Resources

See [FSC 4601] for instructions on handling jointly owned bank accounts. Other resources owned jointly by two or more households are considered totally available to the household unless it can be demonstrated that the resource is inaccessible. A jointly owned resource is considered inaccessible if it cannot be practically subdivided, and the household's access to the resource is dependent upon the agreement of the joint owner who refuses to comply.

If a household only has access to a portion of a resource, only the accessible portion is counted. If a resource is totally inaccessible because the joint owner refuses to cooperate, the entire value of the resource is disregarded.

NOTE: When determining accessibility to jointly owned resources, ineligible aliens and disqualified individuals residing with the household are considered household members.

Resources owned jointly by individuals who are awaiting a decision of the court to determine ownership will not be considered when determining the resource value for either individual.

When the property is awarded by the court to one or the other of the individuals, it becomes a resource to the individual who was awarded the property.

The total value of resources belonging to disqualified or ineligible household members will be considered totally available to the household if:

• The individual is disqualified from the program for intentional program violation per [FSC 1623.2];

• The individual is an ineligible alien per [FSC 1621] who would otherwise be considered a household member; or

• The individual is disqualified for failure to comply with the SSN requirements or work registration requirements. See [FSC 1623.1].

The same resource exclusions that apply to eligible household members will apply to resources claimed by ineligible aliens or disqualified persons when determining a household's total resources.

Example: Work related equipment essential to the employment of an ineligible alien or disqualified person will be excluded per [FSC 4440].

One burial lot per ineligible alien or disqualified person will be excluded per [FSC 4460].

See [FSC 1621.6] for the procedures for handling the resources of sponsored aliens when a portion of the sponsor's resources has been deemed to the household.

Non-recurring lump sum payments are considered a resource in the month received unless otherwise excluded. Examples of lump sum payments include, but are not limited to the following payments.

1. Federal and state income tax refunds, rebates, or credits.
2. Child support when received as the result of the interception of a State or Federal income tax refund. Other child support payments that cover a prior period of time will be handled as explained in [FSC 5704].  (Child support for a prior period that is paid in a lump sum to catch up on payments is not considered to be a non-recurring lump sum payment.)
3. Refunds of security deposits on rent or utilities.
4. Lump sum insurance payments such as, but not limited to, settlements for damages to a household member's property, life insurance payoffs, crop insurance payments and lump sum Worker's Compensation settlements.
5. Loans with the exception of deferred payment student loans. See [FSC 1622.4] for instructions on handling student loans.
6. One-time payments for damages received through a court or through an out of court settlement.
7. Cash gifts, awards, or prizes when received on a one-time basis. See [FSC 5709] for instructions on handling recurring payments.
8. The proceeds (net) from the sale of personal property when payment is received on a one-time basis. See [FSC 5710] when payments are received in installments.
9. Work incentive payments received upon the completion of the program;
10. Retroactive Social Security, or Railroad Retirement payments or any other retroactive benefit payment.  TEA and SSI lump sum payments will be excluded as a resource so long as the recipient continues to be eligible for the benefit. See [FSC 4951] for instructions. If the recipient is no longer eligible for SSI or TEA, the lump sum payment will be considered a resource.
11. Retroactive wages (net) paid on a one-time basis to correct a previous underpayment or to otherwise adjust wages.
12. Vacation pay (net) when received as a one-time payment after termination or layoff.
13. Severance pay (net) when received as a one-time payment. See [FSC 5716] for instructions on handling severance pay received in installments.
14. Salary bonuses (net) which cannot be considered to be annual bonuses. See [FSC 5502] for additional information.

Only the amount of the lump sum payment available to the household will be considered a resource. For applicant households, the county office worker must consider the amount of the payment available as of the day of the interview to be a countable resource. For active households, the county office worker must consider the amount of the payment available as of the date of change or the end of the applicable ten-day notice period to be a countable resource.

To determine the countable resource amount, the worker will consider only the net amount of the payment. For example, a client may be entitled to a $10,000 settlement from Workman's Compensation but receive a check for $7,000 after legal fees. $7,000 would be considered the amount of the lump sum payment.

After the net amount of the payment has been determined, the worker must deduct any expenditures the household claims to have made from the payment. For example, a household receives a $7,000 lump sum payment, and claims expenditures as follows:

1. $3,000 to a car dealer for a used car.
2. $500 to a furniture store.
3. $800 for repairs to the house.
4. $400 for clothes and shoes for the children.
5. $500 to a relative to repay a loan.
6. $400 to a doctor to pay a previous bill incurred for one of the children.

After expenditures the balance of the lump sum payment remaining is $1,400. The household would continue to be eligible if no other resources were available.

When a lump sum payment is reported, the household will be given an opportunity to establish the net amount of the payment and any expenditures. For applicant households, see [FSC 8500]. For active households, see [FSC 11422].

The net amount of the payment may be verified through letters or documents provided by the source of the payment. Collateral contact with the source of the payment may also be used as verification.

Expenditures declared by the household will be verified if questionable. It will be sufficient to verify any declared liquid resources if the expenditures declared by the household are not questionable.

Questionable expenditures may be verified through receipts furnished by the household. If the household claims it has no receipts and cannot obtain them, all expenditures including the ones determined questionable will be listed in a signed statement completed by the household. The household will then be asked to furnish proof of current bank account levels and a listing of recent withdrawals.

If the household claims the payment was never deposited in the bank and has been expended to the point that the household is eligible, the county office worker must request the following information:

1. Verification of the lump sum payment;
2. Receipts or other documentation of any questionable expenditures; and
3. The household's written, signed statement of the amount remaining from the payment.

Collateral statements may be requested when the household is unable to furnish any other verification of a lump sum payment and/or questionable expenditures. When neither the household nor the county office worker can obtain the needed verification, the client's statement of the amount remaining will be accepted along with proof that the household has no accounts currently active in local banks and/or savings and loans.  This proof must include statements of accounts recently closed and/or transferred.  Either the household may furnish this proof, or the county may obtain the household's written consent to contact these banks by letter to request this information.  If the household refuses to furnish this proof or refuses to consent to the county contacting these institutions, the application will be denied.  (Active cases will be closed.)

The county office worker must document the amount and the source of the payment and must specify the gross and net amount if applicable. All expenditures claimed by the household must be documented.

All verification obtained for the amount of the payment and questionable expenditures must be documented. The documentation must state why expenditures are considered questionable. When the household claims to be having difficulty establishing the amount of questionable expenditures, all attempts made by either the household or the worker  to obtain verification must be documented. The worker must also document how the current available amount of the payment was established.  If the household refuses to verify questionable expenditures or the amount of the payment, the worker must document the refusal including the date of the refusal and the reason for the refusal if one was given.

Funds designated as excluded resources retain their exclusion when combined with non-excluded funds in a single bank account. The period of exclusion is determined by the reason for the exclusion.

1. Resources Excluded by Law

   NOTE: Funds excluded as a resource by law and kept in an account separate from non-excluded funds retain their exclusion indefinitely. (See [FSC 4450] for a list of resources excluded by law.)

   Excluded funds combined in one account with countable funds retain their exemption for six months from the date they are combined. After expiration of the six month period, all funds in the account are counted as a resource. If withdrawals are made prior to the end of the six-month period of exclusion, the entire account immediately becomes a countable resource.

2. Resources Excluded as Income

Resources excluded as income (e.g. the income of students or self-employed individuals) that are combined in an account with non-excluded funds retain their exclusion for the entire period of proration.

Example: A farmer reports a $1,000 checking account at application interview. Between the time of the interview and the date of certification, he sold some soybeans for $5,000. This money was deposited into the checking account increasing the balance to $6,000 which exceeds the allowable resource limit. However, since the money deposited from the sale of the crops is prorated income and excluded as a resource, the household's resources are determined to be $1,000.

Combined accounts will be verified when questionable. Acceptable verification include bank statements verifying the current amount in the combined account and indicating recent withdrawals and deposits or collateral statements verifying the amount of the excluded resource and the date deposited.

The following information must be documented:

1. Total amount in the account;
2. The amount determined to be an excluded resource;
3. The amount determined to be a non-excluded resource;
4. Whether the excluded resource is excluded by law or prorated income; and
5. If verification was requested, why the account was considered questionable and the verification obtained.

4971  Determining if a Transfer Has Occurred

At the time of the application interview, households must be asked if any household member (or disqualified person whose resources are considered available to the household) has transferred any resources during the 3-month period immediately preceding the date of the application interview.

Households that knowingly transfer countable resources during this period for the purpose of qualifying or attempting to qualify for food stamp benefits must be disqualified from participating in the Food Stamp Program for up to one year from the date of discovery of the transfer. The disqualification penalty also applies to households that transfer resources after they are determined eligible in order to remain eligible.

Example: A household acquires a resource after being certified, and transfers the resource to prevent the household from exceeding the resource limit.

Eligibility for food stamps is not affected by the transfers listed below.

• Resources which would not otherwise affect eligibility. This includes the transfer of resources that are already excluded or resources that, when added to all other non-exempt resources, would not put the household over the resource limit. For example, if a parent who is participating in the Program transfers his home to a child but continues to live in it, no disqualification will be imposed. The home was already excluded as a resource.

• .Resources that are sold or traded at or near fair market value.

• Resources transferred between members of the same food stamp household (including disqualified persons whose resources are being considered available to the household).

• Resources transferred for reasons other than qualifying or attempting to qualify for benefits.  A parent places funds into an inaccessible educational trust fund.
   
• The removal of an individual's name from a bank account by the major owner of the account. The major owner is the original owner of the funds deposited into the account.

Households must be given a reasonable opportunity to explain the circumstances surrounding a transfer of resources. If the household can establish a valid reason for the transfer (other than the intent to qualify), the household will not be disqualified.

If an applicant household has transferred resources knowingly, with the intent to qualify, the application will be denied. The denial notice will state the reason for and the length of the disqualification as well as the household's right to an administrative hearing. The disqualification period will begin with the month of application.

If the household is certified at the time the transfer is discovered, a notice of adverse action that explains the reason for and the length of the disqualification must be sent.  The disqualification period begins with the first benefits authorized after the expiration of the adverse action period, unless the household requests an administrative hearing and continued benefits.

NOTE: A disqualification penalty can be imposed only once for the same transfer.

To determine the length of the disqualification period, the county office worker must add the value of the transferred resource to the total countable resources and then subtract the resource limit. The remainder will be used to determine the period of disqualification as explained in the following chart.

AMOUNT IN EXCESS                     PERIOD OF

OF THE RESOURCE LIMIT            DISQUALIFICATION

                                    $ 0 - $ 249.99                                    1 month

                                    250 - 999.99                                      3 months

                                    1,000 - 2,999.99                                6 months

                                     3,000 - 4,999.99                               9 months

                                     5,000 - and up                                   12 months

Example A 54 year old lady made application for food stamp benefits as a one person household. One week before she submitted the application, the lady transferred $3,000 from a bank account to a relative leaving a balance of $1,000 in the account. The household’s total countable resources are $1,000. The value of the transferred resources is $3,000.

$1,000 countable resources + $3,000 amount of transfer = $4,000

$4,000 - $2,000 resource limit = $2,000.

The transfer will result in a six-month disqualification.