.Purpose

Policy

Background

Release Date:

September 9, 2019

Definitions

Requirements

Verification Docs

Term

Description

Personal Property

“Belongings” or interests in belongings which may be easily transported or stored or a valuable right, such as unpaid debt.  In addition, any other property not classified as real property is considered personal property.

Note: Credit cards are not considered property or resources.

Liquid Assets

Cash on hand or property immediately convertible to cash such as Certificate of Deposit (CD) accounts, checking/savings accounts, mutual funds, uncashed checks, stocks/bonds, trust funds and other assets.

ABLE/CalABLE Account

Tax-advantaged savings accounts that allow individuals with disabilities to save and invest money for qualified
disability-related expenses without losing eligibility for benefits to public programs.

Qualified Disability Expenses (QDEs)

Any expense paid from withdrawals from a CalABLE account that assists the disabled person to improve and/or maintain their health, independence and/or quality of life.

Property Owners

The person who holds legal title to the property except when the title is held only for convenience and the applicant/participant has no right to receive the proceeds from the sale of the property (Refer to Examples Section, examples 1 & 2).

Real Property

Land and improvements, including but not limited to, houses, apartments, commercial buildings, trees and fences. Property currently in escrow as part of an estate or patent (e.g., timber or mining rights).

Cash Surrender Value (CSV)

CSV is the amount received, if an insurance policy is surrendered or converted to cash.

Motor Vehicle (MV)

An automobile, truck, bus, or similar motor-driven transportation.  MVs include, but are not limited to, cars, trucks, motorbikes, motorcycles, mopeds, minibikes, dune buggies, and electric cars.

Note:  Vehicles leased are not considered property and are not subject to the property limits.

Mobile Home

A mobile home as distinguished from a house trailer, or motor home, cannot be towed by a car, pickup truck, etc. Rather, it must be moved professionally because of its size.

Community Property

Real or personal property obtained by spouses during marriage (unless obtained as separate property).

Community property includes property purchased with:

1.     Community funds;

2.     Funds recovered from the sale of community property; or

3.     Personal credit of either spouse.

Property purchased with funds that cannot be identified as separate property is considered community property.

Lump Sum Payments

Lump sum payments are non-recurring or irregular payments that are not expected to continue.

Types of lump sum payments:

1.     Retroactive Social Security (not SSI/SSP);

2.     Veteran’s Administration benefits;

3.     Insurance and court settlements;

4.     Income tax refunds;

5.     Cash gifts;

6.     Gate monies received by inmates released from State prisons;

7.     Inheritances; and

8.     Net Lottery Winnings.

Separate Property

Property owned by spouses prior to their marriage. Also, property obtained during marriage when:

1.     Received from the sale of separate property;

2.     Purchased with funds which are separate property;

3.     Received by gift or inheritance;

4.     Awarded to a married person in a civil action for personal injuries; or

5.     Received by a spouse living apart and the couple do not plan to live together again. The income of the separated, unaided spouse and of the minor children living with that spouse or in the spouse’s custody is his/her separate property.

Transfer of Property

A transfer of property is defined as property sold or given away, in whole or in part.

Period of Ineligibility (POI)

A period of time for which an individual may be ineligible for benefits.

Shared Ownership

Those who share a title (such as joint tenancy) are presumed to have equal rights to possess, control, and use the property, (Refer to Examples Section, example 7).

Note:  This presumption, may be challenged by evidence to the contrary (e.g., the source and amount of funds invested in the property must be determined to arrive at the share that the individual and/or his or her spouse/minor children actually own).

Requirement

Limit/Condition

Personal and Real Property Limits

Note: ABLE/CalABLE savings accounts are exempt up to $100,000 for GR.

Personal Property Exemptions

Any amounts above personal property limits are to be included as part of the individual’s property in determining GR eligibility.

A.    Necessary household furnishings and personal effects as follows:

1.     Appliances, such as stoves, refrigerators, dishwashers, washer/dryer, etc.;

2.     Furniture, such as tables, chairs, beds, dressers, etc.;

3.     Televisions;

4.     Stereo equipment;

5.     Linens, towels, and clothing, except furs; and

6.     Engagement and wedding rings.

B.     Relocation benefits received from a governmental agency by the applicant/participant for being moved from a residence, whether owned or rented.

C.   Homeowner/Renter Assistance received from the State Franchise Tax Board. 

D.    Earned Income Tax Credit (EITC) received from the Internal Revenue Service as a lump sum or advanced by an employer on each paycheck.

E.     Tools normally used by the employable or unemployable applicant/participant in his/her trade.

F.     Funds in a retirement system when all of the following apply:

1.     The person is on medical leave from work;

2.     All funds are retained in the retirement system; and

3.     If it is medically determined that the person will be able to work within six months after the date of application for GR.

ABLE/CalABLE Accounts

ABLE/CalABLE accounts up to $100,000 are exempt and not counted towards an individual’s personal property.

Maximum contributions of $15,000 annually. Applicants/participants who are working can contribute an additional amount equal to their current year gross income up to $12,490.

Withdrawals

Withdrawals from an ABLE/CalABLE account are exempt if the funds were used for a QDE.  For each withdrawal, the  applicant/participant must provide, within five calendar days, verification of how the disbursement was used.

Note:  Non-qualified expenditures paid for with ABLE/CalABLE withdrawals are treated as unearned income. Refer to GR 44-100- Income.

ABLE/CalABLE Withdrawals

Examples of eligible expenses paid from an ABLE/CalABLE withdrawal are:

1.     Education;

2.     Housing;

3.     Transportation;

4.     Employment support;

5.     Health, prevention and wellness;

6.     Assistive technology and personal support; and

7.     Miscellaneous expenses:

8.     Financial management and administrative services;

9.     Legal fees;

10.  Oversight and monitoring; and

11.  Funeral and burial expenses.

Lump Sum

Payments

Note: The POI is no longer applied to lump sum payments.

Real Property

The following must be evaluated as real property and is subject to property limits:

1.     Real property being bought or sold under contract of sale.

2.     Real property being bought or sold while held in escrow.

3.     Real property held in trust, if it is available for sale, transfer, or use.

4.     Real property in an undistributed estate, if it is available for use.

5.     Patented or unpatented mining claims, timber (standing), oil or mineral rights.

Repayment of GR Received

Individuals who become ineligible because they have or acquired property that exceeds the GR property limit should be given an opportunity to immediately repay all aid given to them.

Homeowner’s Tax Exemption

Applicants/participants who own real property and use it as a home, are required to file a Homeowner’s Tax Exemption at the Los Angeles County Office of the Assessor.

In addition, Emergency aid may be issued pending filing, if otherwise eligible.

Real Property Held to Produce Income

Applicants/participants may have property consisting of multiple units only when the units are physically located in the same building in which the applicant/participant lives. Otherwise, the property is treated as real property not used as a home.

Units not occupied by applicants/participants must produce annual income equaling at least 6% of their share of the assessed value of this real property. This is referred to as the 6% utilization requirement.

Shared Property

It is presumed that applicants/participants who share property ownership have equal rights to possess, control, and use the property.  If ownership at a value other than half is claimed, verification of the source and the amount of funds invested in the property is required.

An applicant/participant who is a victim of domestic violence and who shares the title is exempt when:

1.     Title shared is in the home the domestic violence applicant/participant left; or

2.     The spouse/other title holder remains in the home.

Community Property

It is presumed that an applicant/participant owns half interest in community property, regardless of which spouse is in possession of the property. All property held in the name of the spouse is presumed to be community property, unless evidence establishes it to be separate property.

The following exemptions apply to community property:

1.     In the case of a domestic violence applicant/participant, the value of the property is excluded in determining eligibility for GR.

2.     Burial trusts and interment plots are considered separate property of the spouse who is to be the beneficiary or user.

Property is Sold/New Ownership

Sold Property:

The value of the proceeds is determined and treated as personal property.

New Ownership:

The applicant/participant is notified by mail or in person of the requirement to sell their real property via the Notice of Requirement to Sell Real Property, PA 608 form.

Transferred

Property

It is presumed that a voluntary transfer of real or personal property made within the last two years prior to applying for GR was made for the purpose of qualifying for GR. It is also presumed that a voluntary transfer of real or personal property made while receiving GR was made for the purpose of avoiding repayment of aid.  However, the individuals are provided an opportunity to rebut such a presumption.

An applicant/participant will be given the opportunity to dispute intent of transferring real or personal property.

Applicant/participant can provide the verifications applicable to the transfer of property.

When the total value of the transferred property and other real or personal property owned at the time of the transfer or subsequently, is under the property limit, the transfer is not presumed to have been made for the purpose of qualifying for GR, or to avoid repayment of aid. (Refer to Examples Section, example 4 and 5).

Period of Ineligibility

Any applicant/participant, who has made a voluntary transfer of property and does not have acceptable receipts or a satisfactory explanation of what happened to the property, is ineligible to GR for a period of time following the date of transfer.

Period of Ineligibility

The period of ineligibility to GR is determined by LRS using the following formula:

1.     The amount by which the property exceeded the limits on real and personal property is divided by the monthly basic GR budget grant for the applicant/participant(s).

2.     The result is the number of months of ineligibility beginning with the date the property was transferred (Refer to Examples Section, example 6).

Note:  If LRS does not determine the period of ineligibility, the value must be determined manually.

Liens

As a condition of receiving GR, a lien must be taken and if possible, recorded on all real property in which the applicant/participant has an interest.  The lien covers GR issued within four years prior to the date of the lien and all GR issued after the lien is taken.

A lien can be waived when the applicant/participant receives aid for 30 days or less and does not reapply and receive assistance. Should the applicant/participant reapply within 30 days, a lien must be taken. The waiver is only allowed once in any 12-month period.

Although a lien will be taken on all real property, up to $500 per applicant/participant is not counted from the sale of real property for burial expenses when the applicant/participant has no other way to pay for a burial.  The signature of the applicant/participant is obtained on a lien, even if the property is owned jointly with others.

If, for some reason, the lien cannot be recorded (i.e., jointly owned property where the co-owner refuses to sign a lien), the lien will be returned to the district to be imaged following Electronic Document Management System (EDMS) procedures. The applicant/participant must sign the lien in order to remain eligible for GR.

Category

Acceptable Documents

Personal Property

The personal property value can be verified by any of the following:

1.     The most recent account statement; 

2.     A current statement from the bank, credit union or savings and loan; or

3.     A passbook of his/her account updated by the institution.

Insurance Policy

1.     The CSV using the insurance policy; or

2.     A replacement of the insurance policy or statement from the insurance company, if the applicant/participant does not have the actual policy.

ABLE/CalABLE Accounts

ABLE/CalABLE accounts must be verified via third-party documentation, examples of acceptable documents are:

The most recent bank account statement; and

A current statement from the bank.

QDE

Supporting receipt verification of any withdrawals and expenses made from the ABLE/CalABLE  savings account.

Motor Vehicles

The ownership of a vehicle can be verified by:

1.     A Department of Motor Vehicles (DMV) registration; or

2.     A duplicate form obtained from the DMV, if the applicant/participant does not have the vehicle registration.

License Fee

The license fee for a motor vehicle registered in California can be determined by viewing the current DMV Automobile Registration Card. The license fees on the registration form are not to be used, instead the class and year first sold is used.  Motor vehicles without a tow letter class designator must be referred to Property Services for evaluation.

Vehicle Registered Out of State

For applicants/participants possessing a motor vehicle registered out of State, staff can use Kelly Blue Book as a free, online resource to determine the value of vehicles or refer to the current National Automobile Dealer Association (NADA) guide, if available in the district, before making a referral to the Property Services Unit. 

Inoperable Vehicle

If a motor vehicle owned by an individual is inoperable, the value, as determined above may be reduced by the amount estimated to be required for necessary repairs.

The individuals must secure at least two estimates for necessary repairs. The lowest estimate is used in determining the value of the motor vehicle. Property services may be able to assist in this determination if the individual is unable to get the necessary estimates.

Disagrees with Motor Vehicle Value

If the applicant/participant does not agree with the determined value, three appraisals by auto dealers, insurance adjustors, or personal property appraisers may be submitted for consideration.

Motor Vehicle Used as Residence

Homeless applicants/participants who use their motor vehicle as a  residence may self-declare the use of the vehicle.

Real Property

Ownership and Value of Real Property

The most recent tax statement.

Note:  If the tax statement is not available, the Property Services Section is contacted to obtain the assessed value.  The information obtained from the telephone contact is documented on the LRS Journal page.

Homeowner’s Tax Exemption

Applicants/participants who own real property, and use it as a home, are required to file a Homeowner’s Tax Exemption.  Emergency aid may be issued pending filing, if otherwise eligible.  Acceptable verification is:

1.     The Homeowner’s Tax Exemption receipt; or

2.     The current property tax statement.

Property Service Referral

There are different kinds of property services referrals: hotline and written (email) referrals.  All pertinent information including account and policy numbers, effective dates, etc., should be noted.

A referral to the Property Service Unit needs to be submitted for investigation when:

1.     The applicant/participant is unable to obtain required lien information (precluding the use of the Hotline referral method).

2.     There are questions about the value/utilization/title of property.

3.     The applicant/participant is believed to own property not reported.

4.     An applicant/participant appears to be avoiding repayment of GR.

5.     A transfer of property is found which occurred within two years before application, or when the date of transfer is unclear.

6.     The applicant/participant submits correspondence involving property. For example, information from the County Assessor, banking institutions, insurance companies, etc.

7.     The CSV of a life insurance policy cannot be determined from the policy or the policy is not available (and the applicant/participant has been unsuccessful in obtaining the information from the insurance company and/or agent). 

8.     The status of previously owned life insurance policies needs to be clarified.

9.     The values of stocks or bonds need to be determined and the required statement cannot be obtained.

10.  Property is obtained as a result of a lawsuit.

11.  Real property is not being used as a home and the applicant/participant is unable to obtain or provide verification information.

12.  The applicant/participant disputes the value of a motor vehicle as determined by the Eligibility Worker.

13.  The value of a motor vehicle cannot be determined because there is no tow letter class designator and the value cannot be determined otherwise.

14.  Further assistance is needed regarding an applicant’s/ participant’s property, such as:

a.    The value of an inheritance is unknown;

b.    The necessary account/financial information cannot be provided or is contradictory or inconclusive; and

c.    There is other personal property that must be evaluated.

Value of Motor Vehicles

A Property Services referral, via Hotline or written (email) referral method is needed to determine the value of the vehicles listed below:

1.     Commercial vehicles;

2.     Motor/mobile homes;

3.     Boats/trailers;

4.     Houseboats;

5.     Vehicle registered in another State;

6.     Antique vehicles; or

7.     Any vehicle with a Vehicle License Fee (VLF) classification higher than “DB.”

Note:  Property Services referrals should not be made, except in  extraordinary circumstances when the value or status of property cannot be determined.