The CAO will count all resources not specifically excluded.
Liquid resources are cash and resources that can be easily converted to cash. Countable liquid resources include:
Cash on hand, including in checking and savings accounts
Lump sum payments
Funds withdrawn from educational savings accounts when the funds are used for purposes other than educational expenses
Readily available amounts from trust accounts
NOTE: Formal trusts with accompanying trust documentation count as a resource. (See Section 540.5.)
Stocks, bonds, and savings certificates
Non-recurring payments from retirement plans when an individual chooses to liquidate the funds (see Section 540.5)
Jointly owned bank accounts if the funds are freely accessible and appear to be used without restrictions
Crowdfunding accounts such as GoFundMe, Kickstarter, and Indiegogo
NOTE: The CAO will count the actual value of funds accessible to the household when determining eligibility.
Non-liquid resources are resources that cannot easily be converted to cash. Countable non-liquid resources include:
The equity value of real property (land and buildings) unless specifically excluded because the property is used as a home, is income-producing, AND the income is consistent with the property's fair market value, it is essential to employment or full self-employment, or verification of the property’s ownership, market value, and efforts to sell it for fair market value, present undue hardship to client . (See Section 540.5.)
Personal property, including licensed and unlicensed vehicles, boats, aircraft, all-terrain vehicles, and mopeds
Inaccessible resources are resources the household cannot access or convert into cash. This includes jointly owned resources, property and vehicles (that would net $1500 or less if they were sold), and resources that are not freely accessible or restricted. It also includes resources the household is unaware of having. However, once the household becomes aware that resources are legally available to them, the resources must be counted from that time forward. This is the case regardless of the manner in which the household is informed.
All resources of a disqualified or ineligible household member and a portion of the resources of a noncitizen sponsor and his or her spouse are considered available to the SNAP household, even if the household member does not share ownership and the owner does not make the resource available. See Chapter 522 to determine how resources are deemed from noncitizen sponsors.
The CAO will consider all countable resources available to the SNAP household from the following ineligible household members :
An individual disqualified for committing an intentional program violation
7 CFR § 273.11(c)(1)
An individual disqualified for failure to comply with a work requirement
An individual disqualified for refusing to get an SSN
An ineligible noncitizen
An ineligible able-bodied adult without dependents (ABAWD)
An individual who is violating a condition of probation or parole under a Federal or State law
7 CFR § 273.11(n)
The household must report the resources of a disqualified person and verify any questionable information.
7 CFR § 273.11(c)(1)(i)
Reminder: The CAO must not include the ineligible person when determining the resource limit.
Reminder: The CAO must not deem the resources of ineligible students.
All vehicles licensed or unlicensed, owned by a household member or an ineligible alien or disqualified household member whose resources are countable, represent a countable non-liquid resource to the SNAP household, unless excluded. (See Appendix A of this chapter)
NOTE: Leased vehicles are not owned. They are excluded from any resource determination..
The CAO will first determine whether a vehicle is totally excluded. If a vehicle is totally excluded, the CAO will not count its value.
The CAO will exclude one licensed or unlicensed vehicle per household, regardless of its use, equity, or fair market value. The CAO will not count a totally excluded vehicle.
7 CFR § 273.8(f)(2)(ii) and Pub L. 106-387, Section 84
The CAO will exclude the following licensed vehicles:
Vehicles used to produce income, regardless of income amount. This exclusion applies to vehicles such as taxis, trucks, or fishing boats, even during temporary periods of unemployment.
Example: Mr. X. owns a taxi and operates a taxi service during the week. He also drives his taxi to church on Sunday and to Florida each year on vacation. The taxi is excluded.
NOTE: If the vehicle is no longer used in farming because the household member has stopped farming, the vehicle continues to be excluded as a resource for one year from the termination date.
Vehicles used to produce annual income consistent with fair market value, such as a vehicle with a snow plow. The exclusion continues in temporary periods of unemployment.
Example: Mr. Y. owns and uses a four-wheel-drive vehicle for transportation. In winter he attaches a snowplow and clears driveways and parking lots.
NOTE: For the vehicle to be totally excluded, Mr. Y.’s earnings for snow removal must be comparable to those of other persons providing the same services in the same area with similar equipment.
Vehicles used by a migrant or seasonal farm worker to travel from job to job.
Vehicles necessary to carry the primary fuel for heating or water for home use.
NOTE: Vehicles owned by households without heating fuel or water piped into their homes will receive the exclusion without having to meet further tests about the nature, capabilities or other uses of vehicles..
Vehicles necessary for employment-related long-distance travel (not regular commuting to and from work) This exclusion continues during periods of temporary unemployment.
Example: A salesperson’s vehicle.
Vehicles used as the household's home, such as a car or a motor home.
Vehicles necessary to transport a physically disabled household member, including an ineligible noncitizen or disqualified member, whose resources are deemed available.
NOTE: This exclusion is limited to one vehicle for each physically disabled person. The vehicle does not need to be specially equipped or used primarily by or for the physically disabled person. The physical disability may be temporary (for example, a broken leg), be ongoing (for example, a respiratory illness), or require ongoing treatment (for example, chemotherapy) and does not have to meet the requirements in Chapter 510.
Vehicles with an inaccessible value that would net $1500 or less if they were sold.
The CAO must evaluate the fair market value of each licensed vehicle that is not excluded.
The CAO will use the wholesale value from an official used-car valuation book to determine the fair market value of a vehicle. Values listed at the following Web sites are also acceptable:
CarPrices.com: www.carprices.com
AutoWorld: www.autopricing.com
IntelliChoice: www.intellichoice.com
Edmunds.com: www.edmunds.com/used/
Kellybluebook: http://www-kbb.com
Reminder: CAO workers must include in the case notes the book or Web site that was used to figure out the vehicle's value.
The CAO will not increase the basic value by adding the value of low mileage, optional equipment, or special equipment for a handicapped person.
Exception: If the household does not agree with the book value, it must provide proof of the vehicle's value from a reliable source, such as a car dealer or a bank.
If the vehicle is not listed in the car validation book, the CAO will accept the household's estimate of the vehicle's value. If the CAO has reason to question the estimate, and if the value of the vehicle may affect eligibility, the household must get an appraisal from a car dealer or produce other evidence of its value. The CAO will accept a tax assessment or a newspaper advertisement which lists the selling price of similar vehicles.
If a new vehicle is not yet listed, the CAO must get the wholesale value by other means, such as by contacting a car dealer who sells that type of vehicle.
NOTE: For licensed antique, custom-made, or classic vehicles, the household must provide proof of the value from a reliable source.
If the household owns more than one vehicle, the CAO must appraise each vehicle individually. The CAO will not add the fair market value of two or more vehicles together to reach total fair market value in excess of $4,650.
The CAO will compute the excess fair market value of each licensed vehicle by subtracting $4,650 from its fair market value. The remainder is the excess fair market value and may be counted toward the household’s resource limit.
Example:
Vehicle
1 |
|
Vehicle
2 |
||
FMV |
$7,390 |
|
FMV |
$4,350 |
|
-4,650 |
|
|
-4,650 |
Excess value |
$2,740 |
|
Excess value |
$0 |
Important: Do not combine $7,390 and $4,350 before deducting $4,650. Only $2,740 is to be considered a resource, as long as there are no encumbrances (amount currently owed, excluding interest) on the vehicles.
NOTE: If there are encumbrances, the CAO must compute the equity value on the vehicle to determine whether the excess fair market value or the equity value will be used as the resource amount.
The CAO will evaluate remaining licensed and unlicensed vehicles for their equity value unless they are exempt from the equity-value test.
The following vehicles are exempt from the equity value test:
One licensed vehicle per adult household member, including ineligible noncitizens and disqualified household members, regardless of vehicle use
Any other vehicle a household member under age 18, including ineligible noncitizens and disqualified household members, uses to commute to and from employment (applies during temporary periods of unemployment) or to drive to training or education in preparation to employment
NOTE: Training or education includes any school attendance that will lead to a high school diploma, including vocational and technical classes.
Example: A two person household consisting of one adult and one student age 17 has three vehicles. One vehicle is exempted. The CAO must exempt both from the equity value test. However, the CAO must count the excess fair market value for the remaining two vehicles. (See Section 540.354 for computing excess fair market value).
Any vehicle already determined to be excluded from the resource determination
NOTE: Mini motorized bikes are classified as unlicensed vehicles. Enter the value on the vehicle screen.
The CAO will compute equity value by subtracting encumbrances (amount currently owed, excluding interest) from the fair market value.
The CAO will count the equity value (fair market value minus encumbrances) whenever the equity values is over $1,500.
Example: 2000Mazda 626
FMV |
$7,390 |
amount owed |
-3,900 |
equity value |
$3,490 |
The CAO would count the equity value of this vehicle because it is greater than the excess fair market value determined in Section 540.354.
Reminder: For each vehicle, the CAO must count only the excess fair market value or the equity value, whichever is greater.
Reissued January 29, 2016, replacing June 1, 2012