Temporarily exempt nonexempt real property for 6 consecutive months when:
- the property's equity value, plus other nonexempt assets, exceeds the unit's asset limit; and
- the family is making a good faith effort to sell the property; and
- the family agrees in writing to repay DHS after the property is sold, for the amount of TANF benefits received during the 6-month exemption.
NOTE: A client who agrees to sell their property and repay DHS for any benefits received must sign a sale and repayment agreement.
A good faith effort to sell the property must include at least one of the following actions:
- listing the property with a local realtor, or
- advertising the property for sale in a local newspaper, or
- putting a "for sale" sign on the property, or
- scheduling and/or holding an auction of the property, or
- taking legal action to gain access to the property when the property is jointly owned and the client does not have access to the equity value of the property.
The listed sale price of the property cannot be higher than the fair market value.
For applications, the first month of the 6-month exemption period is the fiscal month that the date of decision on eligibility was made. For example, if a case in Group 2 was approved on 05/18/95, the first month of the 6-month period is 05/95. For active cases that acquire property, the 6-month period begins with the fiscal month they obtained the property. When the Family Community Resource Center discovers that a client has unreported nonexempt property, the 6-month exemption begins with the fiscal month of discovery, and all previous months are an overpayment.
Once started, the period runs continuously for 6 consecutive months regardless of whether or not benefits are received during the entire period. If a case is canceled before the 6-month period ends and the family reapplies before the end of the period, the family is only entitled to the balance of the original 6-month period. The months the family did not receive benefits are still counted.
If a case is canceled before the 6-month period ends and the family reapplies after the 6-month period has ended, the family is not eligible for an additional exemption in the use of its assets.