The proceeds from the sale of an excluded resident home which are used, or obligated, to purchase another excluded home and to pay the costs incidental to occupying the new residence are excluded. Incidental costs include, but are not limited to, moving expenses.

1. (1) The proceeds are the net payments received by the seller after satisfaction of encumbrances and sales expenses.
2. (2) This exclusion does not apply to that portion of the net proceeds of the sale of the original home that is in excess of the costs of the purchase, move to, and occupancy of the new home.
3. (3) Interest earned on the proceeds is treated as income under Chapter 181 (relating to income provisions for NMP-MA and MNO-MA).
4. (4) Mortgage payments made on the new home for any period after occupancy are not considered a purchase and occupancy cost for purposes of this exclusion.

5. (5) The purchase of the new excluded home shall be made within 3 months. The 3 month replacement period begins on one of the following schedules:

   1. (i) On the date MA eligibility begins for the person who received the proceeds before applying for MA.
   2. (ii) On the date of receipt of the proceeds for the person who receives the proceeds while an MA recipient.

Cross References

This section cited in 55 Pa. Code § 178.91 (relating to deeming of resources); 55 Pa. Code § 178.121 (relating to general); 55 Pa. Code § 178.122 (relating to determining the spousal share of resources if the institutionalized spouse is not applying for MA); and 55 Pa. Code § 178.123 (relating to determining the spousal share of resources at the same time the institutionalized spouse applies for MA).