The disposal of a resource, whether exempt or countable, by the budget group may affect the eligibility of budget group members. This includes, but is not limited, to resources disposed of in the following ways:
Sale
Exchange for other property
Decreasing the value of a resource by putting an encumbrance on it
Decreasing the value of a resource by adding another person's name to the title, deed, or account
The budget group must report, prior to the sale, its intention to dispose of any real property or personal property that is not exempt. This is to protect the rights of the Commonwealth even though a reimbursement agreement has been signed.
The budget group must report the sale or exchange of all property that takes place in the month of application or after assistance is authorized. The money received is counted as a resource, even if the property itself was exempt.
Example: A client sells a stereo for $300. As part of common residence furnishings, the stereo itself was exempt. However, the money received from the sale is a resource and must be counted with other resources.
If countable resources exceed the resource limit in a month, the budget group is ineligible for assistance for that month, even if the excess resources are converted to an exempt resource.
Example: On May 2, the CAO determines that a TANF budget group has $1,500 in countable resources. An Advance Notice is sent to discontinue assistance. On May 9, the budget group provides verification that $1,000 was used to buy a motor vehicle. The budget group has no other motor vehicles. The budget group is ineligible for assistance for May.
Because the resources are within the program limits prior to the expiration of the Advance Notice, the case is not closed. An overpayment exists for the calendar months in which the resources exceeded the limits.
Reviewed December 11, 2017. Reissued September 20, 2012; replacing January 31, 2012.