County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Number Page Resource Exclusions 991044 1of 5 Revision Date August 1 2019 A Background This section shows the resources that are excluded from consideration in CAPI Purpose This section is revised for the sunset review No Program rules have changed B Policy 1 Resource Exclusions In determining the resources of an individual and spouse if applicable the items listed below are excluded Note if any of the following resources are held in a trust which was established on or after January 1 2000 they are to be counted as a resource Item The home any adjoining land and related outbuildings Household goods and personal effects One car Property of a trade or business Nonbusiness property which is essential for selfsupport Resources of a blind or disabled individual Stock in regional or village corporations Cash surrender value of life insurance policies Restricted Native American lands Payments or benefits paid under Provisions If the customer is residing in the home If their total equity does not exceed 2000 The following items are excluded in determining the value of household goods and from resources Wedding or engagement rings Any device such as a wheelchair hospital bed or dialysis equipment that is needed due to the customers physical condition Note If the individual claims no items of unusual value or only one such item with a current market value of 1000 or less absent evidence to the contrary Accept the claim Assume the total equity value of all household goods and personal items is 2000 or less Exempt regardless of its value or use Essential for selfsupport If the Persons equity is less than 6000 Property produces a net annual income to the individual of at least 6 of the excluded equity Necessary to fulfill a PASS Held by Alaskan natives If the combined face values of all policies on one person do not exceed 1500 Disregard term insurance None Examples include but are not limited to County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Resource Exclusions Number Page 991044 2 of 5 other federal statutes CalFresh Federal housing and utility assistance Certain payments to Native Americans Disaster relief assistance and any interest earned on the assistance None Burial funds Up to 1500 Burial spaces of any value and burial space items None Title II Social Security SSISSP or CAPI retroactive payments received by a spouse or parent For 6 months following the month of receipt The onetime 250 economic recovery payment ERP For the month of receipt and the following 9 months Earned Income Tax Credit EITC For 12 months following the month of receipt Child Tax Credit CTC For 12 months following the month of receipt Making Work Pay MWP tax credits paid monthly and tax refunds received annually For 12 months following the month of receipt Firsttime homebuyers tax credit and deemed firsttime homebuyers tax credit For 12 months following the month of receipt Federal housing subsidies None Payments from a state fund to aid victims of crime For 9 months following the month of receipt Relocation assistance For 9 months following the month of receipt 2 Home Exclusion Definitions The table below shows some definitions used in excluding a home Term Definition Home Property in which the individual has ownership interest and is the individuals principal place of residence Principal Place of Residence The dwelling which the customer considers to be hisher established or principal home and to which whenever absent heshe plans to return 3 Property Ceases to Be Principal Place of Residence Property ceases to be the principal place of residence as of the date the individual leaves and does not intend to return A statement of intent to return signed by the customer is the factor to determine that the exclusion as principal place of residence continues to apply during a temporary absence There is no time limit on how long a temporary absence can be 4 Proceeds from Sale of Excluded Home Proceeds from the sale of an excluded home are also excluded when they are intended to be used and are used to purchase a similarly excluded home within three months of the date the proceeds are received Any remaining balance is a countable resource County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Resource Exclusions Number Page 991044 3 of 5 5 Definitions for Property Essential to SelfSupport The table below shows some definitions used in determining property essential to selfsupport Term Definition Essential to selfsupport Property either used in a trade or business and nonbusiness property that produces income whether cash or inkind in current use or that will again be used within one year of its most recent use for income producing purposes Business property Necessary capital and operating assets of a business for example real property buildings inventory and equipment 6 Exclusions for Property Essential for SelfSupport The following exclusions apply to the listed types of property Type of Property Exclusion Property used In a trade or business By an individual as an employee for work Exclude property Nonbusiness property used to produce goods or services essential to daily activities for example land used to produce vegetables for consumption by the individuals household Exclude up to 6000 equity Nonbusiness incomeproducing property for example rental property Exclude up to 6000 equity if it produces a 6 rate of return 7 Burial Funds Burial funds consist of any of the following Revocable burial contracts Burial trusts Other burial arrangements Cash Accounts Other financial instruments with a definite cash value clearly designated for the individuals or spouses burial expenses and kept separate from nonburial related assets for example burial insurance If the individual is an eligible child the exclusion also includes burial funds set aside for the childs parent or parents spouse Property not included in the above list is not considered burial funds These funds must be identifiable as burial funds and not commingled with other funds 8 Burial Fund Restrictions The rules on trusts do not apply to burial funds The following restrictions do apply Up to 1500 of a revocable burial fund may be excluded This amount is reduced by the value of any excludable life insurance policy Any increased value of the burial fund due to interest earned is also excluded if the interest remains in the fund County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Resource Exclusions Number Page 991044 4 of 5 If the customer uses the burial funds for some other purpose the individuals future benefits will be reduced by an amount equal to the amount used for another purpose A customer can sign a contract with a funeral home placing up to 1800 in an irrevocable burial contract or a trust Legitimate irrevocable burial trusts are not counted as a resource because the individual has no legal access to the money 9 Burial Spaces The following are defined as burial spaces Plots Gravesites Crypts Mausoleums Urns Niches Other customary and traditional repositories of bodily remains provided such spaces are owned by the individual or are held for hisher use Necessary and reasonable improvements such as o Vaults o Headstones o Markers o Plaques o Burial containers o Arrangements for openingclosing the gravesite for burial of the deceased The value with no limit of burial spaces for the individual and immediate family is excluded from countable resources Immediate family means Customers spouse Minor and adult children Siblings Parents Spouses of those individuals 10 Excess Resources Individuals with excess nonliquid resources may receive conditional CAPI benefits if the following conditions exist Total liquid resources do not exceed three times the current Federal SSI payment rate for example 3 x 530 1590 for 2001 or The individual agrees in writing to sell the excess resources at their current market value and repay any overpaid conditional payments with the proceeds from such sale and Within 30 days of signing the conditional agreement the individual must make reasonable efforts to sell the property by listing the property with a real estate agent or other conventional advertisement The individual must accept any reasonable offer reasonable meaning at least twothirds of the current market value County of San Diego Health and Human Services Agency HHSA Cash Assistance Program for Immigrants CAPI Program Guide Resource Exclusions Number Page 991044 5 of 5 11 Conditional Payments Conditional payments do not apply to excess liquid resources The periods for disposal of nonliquid resources are in the table below Type Time Period for Disposal Real Property Nine months Personal Property Three months The total overpayments to be recovered equal the lesser of the Net proceeds received from the sale of the property The amount of CAPI payments received during the conditional period 12 Expiration of Conditional Period with Property Still Unsold If the conditional period expires with the property remaining unsold the property will be excluded in determining regular CAPI payments for as long as the person continues making reasonable efforts to sell When the property is sold the recipient is only responsible to repay the payments during the conditional period 13 Excess Real Property that Is Jointly Owned Exclude excess real property that would otherwise be countable and subject to conditional payments if the property is jointly owned and sale of the property would cause undue hardship for the other joint owners C Procedure Evaluate excluded resources as stated in the policies above Other Program Impacts None References MPP 490403 ACL 9882 ACIN 3309 SSI POMS SI 01130676 Sunset Date This policy will be reviewed for continuance by 08312022 Approval for Release Rick Wanne Director Eligibility Operations