1. (a) For the adult categories of financial assistance, real property resources, as defined in He-W 601.07, shall be treated as follows when determining eligibility:

   1. (1) The home occupied by the individual shall not be counted;
   2. (2) An unoccupied home shall not be counted during periods of temporary absence such as short-term hospitalization or institutionalization;
   3. (3) Income-producing property shall not be counted;
   4. (4) Any real property not otherwise excluded shall not be counted if it is necessary as the residence for the individual’s spouse, minor child, or disabled child;
   5. (5) One burial plot per assistance group (AG) member shall not be counted; and
   6. (6) The equity value of real property which is not specifically excluded above shall be counted as a resource.

2. (b) For adult categories of financial assistance, the AG shall take action to dispose of the property within 6 months of being notified by the department of health and human services (department) that the property must be liquidated, and:

   1. (1) The equity value of the property shall not be counted during the disposal period; and

   2. (2) The disposal period shall be extended as long as:

      1. a. The individual verifies that action has been taken to sell the property and that there are valid reasons for inability to sell the property; or
      2. b. The individual’s hospitalization or institutionalization, although long term, is not expected to be permanent and it is likely that the individual will return to the home.
3. (c) If disposal does not occur within the disposal period, as specified in (b) above, financial assistance shall be denied or terminated.

4. (d) For financial assistance to needy families (FANF), disposal of real property shall be treated as follows:

   1. (1) The AG shall take action to dispose of the property within 6 months of being notified by the department that the property must be liquidated;
   2. (2) Individuals shall have an additional 3 months to dispose of excess unoccupied real property, when the individual verifies that a good faith effort has been made to sell the property;
   3. (3) The equity value of the property shall not be counted during the disposal period described in (1) and (2) above; and
   4. (4) When the property is sold, the net proceeds from the sale of the property shall count as a lump sum resource, in accordance with He-W 654.03.
5. (e) For FANF, real property resources of a sponsor or sponsor’s spouse shall not be deemed available to a non-citizen.

Source. (See Revision Note #1 at Chapter Heading He-W 600) #5171, eff 6-26-91; ss by #6531, INTERIM, eff 6-27-97; ss by #6614, eff 10-24-97; ss by #8452, eff 10-22-05; amd by #8865, eff 4-13-07; ss by #9136, eff 4-22-08; ss by #11058, INTERIM, eff 3-24-16; ss by #11187, eff 9-20-16; ss by #14053, eff 8-17-24, EXPIRES: 8-17-34