Table of Contents |
|
A.Section Summary |
This section describes the treatment of real
property, other than a principal residence.
MPG
Article 9, Section 2, details how to determine the ownership
and availability of property. MPG Letter 21 (6/88) |
B.Definition of Real Property |
Real property means land and improvements. Improvements include any immovable property attached to the land such as buildings, fences, and timber. It includes mines and any oil, mineral, and timber rights related to the land. Mortgages or notes secured by a deed of trust that meet the criteria in MPG Article 9, Section 9, are also considered real property. Time shares, campground memberships, etc., which have a real property deed and assessment, are treated as real property. If there is no real property deed and assessment, the property is considered personal property. MPG Letter 21 (6/88) |
A.Market Value |
The market value is entered on Form MC 176P. MPG Article 9, Section 1, gives instructions for Form MC 176P. The market value of real property is determined by applying one of the following methods:
MPG Letter 21 (6/88) |
MEM 50412 |
B.
Encumbrances
|
An
applicant/beneficiary may encumber an item of real property. Encumbrances are obligations for which the
property is security. Encumbrances
include, but are not limited to: 1)
Loans; and 2)
Attachments
for debts and taxes; and 3)
Chattel
mortgages and liens. Encumbrances are entered on Form MC 176P. MPG Letter 21 (6/88) |
MEM 50413 |
C.Joint Property |
If the property is owned jointly, the worker
must determine the applicant's/beneficiary's share of the market value and
encumbrances. This determination is
done before entering the amounts on Form MC 176P. MPG Letter 21 (6/88) |
D.Determining Share of Market Value |
The percentage of the applicant's/beneficiary's
ownership in the property may be stated by the applicant/beneficiary, e.g.,
"I own 20%," or, if shares are equal, may be computed by the
worker. The worker must divide the
number 1 by the number of owners to determine the percentage of ownership. The total market value is multiplied by the
percentage to determine the applicant's/beneficiary's share of the market
value. EXAMPLE: Four individuals own equal
shares of a piece of property with a market value of $10,000. The worker divides 1 by 4 to arrive at the
applicant's/beneficiary's share of 25%.
Twenty-five percent of $10,000 is $2,500. MPG Letter 21 (6/88) |
E.Determining Share of Encumbrances |
The worker will determine the
applicant's/beneficiary's share of
encumbrances by multiplying the total amount of encumbrances by the
percentage of the applicant's/beneficiary's ownership share of property. EXAMPLE: A piece of property worth $10,000 is owned equally by four individuals. The applicant's/beneficiary's share of ownership is 25%. The share of encumbrances is also 25%. The total encumbrances are $5,000. Twenty-five percent of $5,000 is $1,250. This is the applicant's/beneficiary's share of encumbrances. MPG Letter 21 (6/88) |
MEM
50414 |
F.Net Value |
The net market
value is the owner's equity in the property. Equity is determined by subtracting encumbrances from the market
value. The value of property owned
jointly is determined by subtracting the applicant's/beneficiary's share of
encumbrances from his/her share of the market value of the property. MPG Letter 21 (6/88) |
MEM 50415 |
B.Market Value |
The market
value of other real property must be verified prior to approval by viewing any of the following:
Appendix 9-5-B is
provided as a sample letter which may be used to verify the value of property
located out of MPG Letter 21 (6/88) |
MEM 50167 |
C.Encumbrances |
Encumbrances of record on other real property
must be verified prior to granting by viewing:
MPG Letter 21 (6/88) |
D.
Oil Leases, Mineral Rights,
Timber Rights
|
The value of these items is verified by one of
the following:
MPG Letter 21 (6/88) |
A.Net Market Value of $6,000 or less |
Other real property that has not been exempted
under any other criteria in Article 9 will be exempt if both of the following conditions are met:
MPG
Letter 21 (6/88)
|
MEM 50416 |
B.
Net Market Value of over $6,000
|
Other real property with a net market value of
more than $6,000 is treated as follows:
MPG Letter 21 (6/88) |
C.Protections for Indians under Medi-Cal |
The following property is exempt for the purpose of determining the eligibility of individuals who are native American.
The applicant/beneficiary is required to provide verification sufficient to establish the exempt status of the above described items. Verification may include a statement on Tribal Council/Government letterhead. Workers may also seek assistance from the Bureau of Indian Affairs by calling 202-208-3710. A list of federally recognized tribes can be obtained at the DOI website at the following address: MPG Letter 698 (01/10) |
ACWDL 09-26 |
A.General |
Other real
property that falls within the property reserve limits when added to the net market value of all other
property does not need to be utilized.
Other real property that exceeds the limit but
whose market value is $6,000 or less must be utilized in order to be
exempt. The computation for
utilization is done on form MC 176P. MPG Letter 21 (6/88) |
MEM 50416 |
B.
Utilization Methods
|
Utilization requirements can be met by either
of the following methods:
Treatment of income from property is detailed
in MPG Article
10, Section 5. MPG Letter 21 (6/88) |
C.
Utilization Period
|
The applicant/beneficiary will be allowed six months to meet utilization requirements. This six-month period is called the utilization period, and begins on the first of the month following issuance of a notice of action informing the applicant/beneficiary that the property is not yielding sufficient income, as required in item 09.05.05.A above. The utilization period will be stayed during periods of ineligibility (see item H below). MPG Letter 21 (6/88) |
D.
Extension of Utilization Period
|
The utilization period may be extended for the following reasons:
MPG Letter 21 (6/88) |
E.
Property Utilized by
|
If the applicant/beneficiary utilizes the property by sale, the property must be sold for at least market value. EXCEPTION: The property was sold under either of the following situations:
The applicant/beneficiary must submit evidence that there was a bona fide attempt to sell at market value. MPG Letter 21 (6/88) |
F. Miscellaneous Requirements
|
An existing environmental impact report involving a property must be considered by the worker in determining the utilization potential of the property. A life estate interest in real property must be utilized in accordance with this section. (See MPG Article 9, Section 9 for treatment of life estate interests.) MPG Letter 21 (6/88) |
G.
Reassessment of Property
|
The applicant/beneficiary may arrange for a reassessment of the property during the utilization period. The assessment affects utilizations as follows:
MPG Letter 21 (6/88) |
H.
When to Apply Utilization Period
|
A six-month utilization period will begin at the following times:
EXCEPTION: When a utilization period has already begun and the beneficiary becomes ineligible for Medi-Cal prior to its expiration, the remainder of the utilization period must be applied if eligibility is subsequently reestablished and the property is not utilized at that time. However, if the beneficiary can verify that the property was utilized at any time during the period of ineligibility, a new utilization period will begin. EXAMPLE: An applicant is determined
eligible and has other real property with a net market value of $5,000 that
is not being utilized. The six-month
period is 1-8X through 6-8X. The beneficiary
moves out of state on MPG Letter 21 (6/88) |
I.
Good Cause
|
Good cause, for purposes of this section, is found only if the applicant/beneficiary has made a bona fide effort to meet the utilization requirements and is unable to do so because of circumstances beyond the applicant's/beneficiary's control. Circumstances beyond the applicant's/beneficiary's control include the following:
MPG Letter 21 (6/88) |
MEM 50417 |
J.
Co-Owned Property
|
The applicant/beneficiary must meet the utilization criteria outlined below when he/she owns an interest in other real property with a person for whom there is not responsibility.
The net income received by the applicant/beneficiary is considered income from property. (See MPG Article 10, Section 5.) MPG Letter 21 (6/88) |
MEM 50351 50416 |
ORP
includes any property which has a real property deed and tax assessment such as
house(s) on lots, apartments, condos, time shares, campground memberships,
etc., which are not exempt as a principal residence.
PROCEDURE
FOR:
1. New applicants or
beneficiaries who own real property not exempt as a principal residence.
NOTE: Net Market Value is abbreviated as
NMV. Property Reserve is abbreviated as
PROP. RES.
CASE SITUATION FOR AN MFBU OF ONE
(1) |
ELIGIBILITY CONDITIONS |
UTILIZATION
REQUIREMENTS |
PROCEDURE |
A. ORP under $6000 NMV; PROP.
RES. including ORP is under limit. |
Eligible. |
|
Complete MC 176P. Use any net
income from property in SOC determination. |
Example: ORP $1200 NMV, $200
CSV insurance, $1400 property reserve total is under limit for one. ($1900) |
|
|
|
B. ORP under $6000 NMV; PROP.
RES. including ORP is over limit. Example: ORP $1000 NMV, $500
savings, $500 CSV. Total PROP. RES.
$2000. Over limit for one. ($1900) |
Eligible, if utilization requirements are met for ORP. |
Util=6% of NMV in net rent or
property is sold or in escrow. Time Limit = 6 months from 1st of month
after MC 239U issued. |
Complete MC 176P. 1. Property meets util. req.: a. Send MC 239U with approval NOA. b. Set tickler to review util. in 6 months. 2. Property does not meet util.
req. |
C. ORP over $6000 NMV; PROP.
RES. including ORP in excess of $6000 is under limit. Example: ORP $7200 NMV. $100 savings, $1200 excess ORP. Total PROP. RES. $1300. Under limit for one. ($1900) |
|
Can extend 12 months for good cause. Can extend indefinitely if Util can only be met by sale. |
a. Send MC 239U with
approval NOA. b. Set tickler for the 5th
month following month in which MC239U is sent. c. In 5th month review for
Util met or can extension be granted and new control set for 5 more months. d. Send new MC239U if Util
is met or if time is extended. e. Discontinue at end of 6th
month if Util is still not met. Must
have timely and adequate NOA of disc. |
D. ORP over $6000 NMV; PROP.
RES. including ORP in excess of $6000 is over limit. Example: ORP $10000 NMV. $1000 savings, $4000 excess ORP. Total PROP. RES. $5000. Over prop. limit for one. ($1900) |
Ineligible |
Not applicable. |
Complete MC 176P. Send MC
239Y. |
NOTE: Time
shares, campground memberships, etc., which do not include real property deed
and assessment are treated as personal property.
TO: Assessor and/or Recorder of
Appropriate County
RE: [Applicant/Beneficiary,
Spouse, and Case Name(s)]
CASE NUMBER:
(Client's Name) is an applicant beneficiary of Medi-Cal in
(List
any known properties in the receiving county)
Thank you,
(Worker signature and number)
(District Address)
ASSESSOR:
Description of Property(ies) -
Assessed or Market value - Land
$ Improvements $
Completed
by
Date
RECORDER:
Acquired or conveyed property(ies) in last two years -
from to date
Completed
by
Date