1. (a)

   1. (1) A homestead is a house and tract of land that a person considers his or her home.
   2. (2) A mobile home or trailer used as a home will be considered as a homestead, regardless of whether the person also owns the property on which the mobile home is situated.

2. (b)

   1. (1) Only one (1) such tract will be considered a homestead.
   2. (2) However, there is no limit to the acreage or number of lots so long as the property is contiguous.
   3. (3) Any other dwelling units or apartments on the property will be considered a part of the homestead.

3. (c) The family must:

   1. (1) Be presently residing on the property; or
   2. (2) Intend to move onto it within a period of six (6) months from the date of application or date of purchase, whichever is later.

4. (d)

   1. (1) If the family ceases to live on the property, it will continue to be regarded as a homestead for a period of six (6) months from the date they left the home or the date of application, whichever was later, provided they intend to return to it.
   2. (2) A request to extend the period beyond six (6) months may be approved by the County Administrator, if it is determined that extenuating circumstances exist in the case.
   3. (3) Unless the period has been extended, the recipient will be advised that the homestead becomes excess property after six (6) months.

5. (e)

   1. (1) If the homestead is sold, the net proceeds received from the sale will be disregarded for a period of eighteen (18) months from the date of the sale provided the casehead intends to apply such proceeds towards the purchase of another homestead.
   2. (2) A request to extend the period beyond eighteen (18) months may be approved by the County Administrator if it is determined that extenuating circumstances exist in the case.
   3. (3) When the conditions of the sale of the homestead are such that the proceeds will be received through installment payments, then such proceeds will be disregarded as they are received provided they are applied to the payment of another homestead.
   4. (4) Only that portion of the proceeds, whether received in full or through installment payments, that are actually applied towards the purchase of the new homestead may be disregarded.
   5. (5) Any remaining amount will be considered according to 20 CAR § 502-424(c)(3) or (c)(4), as appropriate. Example 1: A client receives ten thousand dollars ($10,000) for his homestead. He reinvests only eight thousand dollars ($8,000) into a new home. Therefore, the remaining two thousand dollars ($2,000) will be considered a resource. Example 2: A client sells his homestead through an installment payment contract for which the entire balance is not payable upon demand. The monthly payment from the sale is two hundred dollars ($200). He uses one hundred fifty dollars ($150) from that payment to make the payment on his new home. Therefore, the remaining fifty dollars ($50.00) will be considered as unearned income.

6. (f)

   1. (1) The casehead will be advised that if another homestead is not purchased within the eighteen-month period, then at the end of the eighteen (18) months, the proceeds will be considered a resource if received in full, or as unearned income if received in installment payments (refer to 20 CAR § 502-425) beginning with the month after the proceeds first became available.
   2. (2) Therefore, an overpayment may occur if the proceeds are not reinvested in another homestead.
   3. (3) If a client who is receiving installment payments later purchases another homestead and applies the installment payment to the new home, then that portion applied may be disregarded.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “07/01/97”