When the net proceeds from the sale of the property plus other nonexempt assets does not exceed the $1,000 asset limit, eligibility continues and there is no overpayment.
To determine the net proceeds from the sale of the property, deduct amount owed on mortgage, selling costs, such as realtor fees, closing costs, current year's taxes, etc. Also deduct from net proceeds any monies the client used to repay the Department.
Example: Ms. W owns a house she does not live in with an equity value of $3,000. The equity value exceeds the $1,000 asset limit. Ms. W signs Form 2498.
Ms. W sells the house for $35,000. Ms. W owed $32,000 on the mortgage, and realtor's fees and closing costs of $1,300. This gives her a $1,700 profit ($35,000 - $32,000 - $1,300) on the sale of the house. During the 3-month exemption period Ms. W received TANF Cash of $250 per month, for an overpayment of $750. Ms. W repaid the Department the $750 from money received from the sale.
The net proceeds from the sale of the house are $950 ($3,000 - $1,300 - $750). Since Ms. W's total assets of $950 do not exceed the asset limit, eligibility continues.
When the net proceeds from the sale of the property plus other nonexempt assets exceed the asset limit, the case is ineligible. There is an overpayment for the amount of cash benefits paid during the 6-month exemption period. When the case is canceled, refer it for recovery.
Example: Property is sold during the exemption period, with net proceeds of $7,800 received from the sale. Since nonexempt assets exceed the asset limit, cancel the case.
During the exemption period, $960 in TANF Cash benefits was received, which is an overpayment. Refer the $960 overpayment for recovery.
If the family reapplies for TANF Cash, and is found eligible, report the case to the Bureau of Collections (BOC) which will recoup the overpayment. The client can voluntarily repay the overpayment. See WAG 23-04-00 and WAG 23-05-00 for reporting and recouping overpayments.
Example: Ms. P has $200 in a bank account. Ms. P sold non-homestead property for $3,000. Ms. P's total assets of $3,200 ($200 + $3,000) exceed the asset limit, so the case is ineligible.
During the 6-month exemption period Ms. P. received $750 in TANF Cash benefits. An overpayment of $750 is referred for recovery.