WAG 07-01-04-a: Temporary Exemption of Nonexempt Real Property (Cash)

PM 07-01-04-a

When total assets exceed the asset limit, temporarily exempt the equity value of nonexempt real property for 6 consecutive months if the client:

• is making a good faith effort to sell the property, and
• signs Agreement Regarding Sale or Transfer of Real Property (Form 2498) agreeing to repay the Department when the property is sold.

The amount to be repaid is the amount of cash benefits received during the 6-month exemption period.

For applicants, the first month of the exemption period is the fiscal month of the date of decision on the application.

Example: A Group 01 client applies for TANF on 03/30. Eligibility is determined on 05/02 with the IPE starting 04/29, the 30th day after application. Since eligibility was determined in fiscal May, the first month of the exemption period is May.

Enter the last month and year of the exemption period in Form 552 Item 91 code 710. The Family Community Resource Center receives a list titled "Cases with Real Property" in the 5th month. Review the case's eligibility.

The exemption period runs for 6 consecutive months regardless of whether cash benefits are received during the entire period.

Example: A family applies for TANF Cash in 03/01. Their real property is exempt for 6 months starting in 03/01. The 6-month exemption period runs from 03/01 through 08/01.

In 05/01 the case is canceled for failure to cooperate. The family reapplies for TANF Cash in 10/01. Since the exemption period ended in 08/01, the equity value of the property is used to determine eligibility.