[32 Pa.B. 4435]
[Continued from previous Web Page]
EXEMPTIONS FROM RESET PARTICIPATION REQUIREMENTS § 165.21. Exemptions from RESET participation requirements.
(a) An individual's exemption status is reviewed when a change is reported that would affect the individual's exemption status, when a condition is expected to change and at each reapplication interview. The individual is notified in writing of changes in exemption status.
(b) An individual who is exempt may volunteer to participate in RESET.
(c) An individual shall participate in RESET unless the individual establishes good cause under § 165.52 (relating to good cause) or the individual is exempt. An individual may be exempt if the individual is one of the following:
(1) Mentally or physically disabled, as verified by a physician or licensed psychologist, and the disability temporarily or permanently precludes any form of employment or work-related activity.
(i) An exemption period for recuperation after childbirth as determined by a physician or licensed psychologist.
(ii) Because mentally ill or mentally retarded persons cannot always acknowledge or explain their impairment and are frequently incapable of obtaining verification, persons who, in the judgment of the worker are mentally impaired, shall be referred to the Disability Advocacy Program for further evaluation. These persons will be exempt pending the results of an evaluation.
(iii) The Department may require an applicant or recipient with a verified temporary mental or physical disability, including drug or alcohol dependency, to pursue appropriate treatment as a condition of receiving assistance.
(iv) The Department may require an applicant or recipient to submit to an independent examination as a condition of receiving assistance.
(2) The parent or other caretaker who is personally providing care for a child under 6 years of age for whom an alternate child care arrangement is unavailable.
(3) A child who is under 18 years of age and pursuing a high school diploma or a certificate of high school equivalency.
(4) The custodial parent in a one-parent household who is caring for a child who is under 12 months of age. This exemption is limited to a maximum of 12 months in the parent's lifetime.
§ 165.22. Verification of exemption.
(a) Need for verification. The applicant or recipient shall cooperate in providing necessary information and verification regarding the basis for exemption.
(1) The CAO may assist an individual in obtaining verification when help is needed.
(2) The Department may require an applicant or recipient claiming an exemption based on a physical or mental disability which temporarily or permanently precludes any form of employment or work-related activity to submit to an independent examination as a condition of receiving assistance, if the individual is exempt from RESET.
(3) An applicant or recipient with a verified physical or mental disability which temporarily precludes any form of work or work-related activity shall pursue appropriate treatment to restore or improve the individual's ability to work, as a condition of receiving assistance, if the individual is exempt from RESET.
(4) An individual is not required to verify information that was previously verified and is not subject to change.
(b) Types of verification. Verification of an exemption consists of reasonably available documentation specified by the Department and includes birth certificates or baptismal records, written statements from physicians, licensed psychologists or school officials that support the Individual's claim for an exemption.
(1) The verification of a physical or mental disability shall be established on a form specified by the Department and shall be based on acceptable clinical and laboratory diagnostic techniques rather than on the applicant's or recipient's statement of symptoms.
(2) If the individual fails to verify the claim for an exemption, the individual shall participate in RESET unless the individual has cooperated in seeking verification and verification is unavailable.
(c) Expiration of exemption. The CAO will notify the exempt individual in writing when the period of exemption is due to end.
(1) The individual will be given an opportunity to provide new or additional verification to continue the exemption.
(2) The individual will be given the opportunity to prepare to comply with RESET participation requirements under § 165.31 (relating to RESET participation requirements).
§ 165.25. RESET participation requirements following an exemption.
An individual who was formerly exempt shall participate in RESET, as specified in § 165.31 (relating to RESET participation requirements), in accordance with the following:
(1) An individual who was exempt due to a physical or mental disability is required to participate in RESET:
(i) Immediately if the condition ceases during the first 22 months that the individual receives cash assistance.
(ii) Within 8 weeks if the condition ceases after the individual has received cash assistance for 22 months or more.
(2) An individual who was exempt from RESET because the individual is providing child care for a child under 6 years of age shall participate in RESET as soon as alternate child care arrangements are available or when the child becomes 6 years of age, whichever occurs first.
(3) An exempt individual under 18 years of age shall participate in RESET when the individual:
(i) Reaches 18 years of age, although the individual may be able to continue to pursue a high school or equivalency program after age 18 as a work-related activity during the first 24 months of receipt of cash assistance.
(ii) Attains a high school diploma or a certificate of high school equivalency.
(iii) Ceases to pursue a high school diploma or a certificate of high school equivalency.
(4) A custodial parent in a one-parent household who was exempt to provide care to a child under 12 months of age shall participate in RESET if one of the following conditions:
(i) The child reaches 12 months of age.
(ii) The custodial parent has claimed this exemption for a total of 12 months during the parent's lifetime.
(iii) The custodial parent chooses to end the exemption.
RESET PARTICIPATION REQUIREMENTS § 165.31. RESET participation requirements.
(a) The following RESET participation requirements always apply:
(1) An individual who is not exempt under § 165.21 (relating to exemptions from RESET participation requirements) shall seek and accept any bona fide offer of employment and maintain employment.
(2) A nonexempt individual shall accept referral to, work in and retain employment in which the individual is able to engage and participate in work activities specified on the AMR.
(3) A nonexempt individual may not, without good cause, voluntarily terminate employment, reduce earnings or fail to apply for work.
(4) Information indicating noncompliance with this section will result in a compliance review in accordance with § 165.51 (relating to compliance review).
(5) A nonexempt recipient's willful failure, without good cause, to comply with this subsection will result in the imposition of sanctions as specified in § 165.61 (relating to sanctions).
(b) Requirements that apply during the first 24 months. The following RESET participation requirements apply during the first 24 months:
(1) A nonexempt individual who is not employed for an average of at least 20 hours per week shall participate in a work-related activity.
(2) A nonexempt individual who is not employed for an average of at least 20 hours per week shall accept referral to, participate in and continue to participate in an available work-related activity, including work-related activities specified on the AMR.
(3) For the initial work-related activity, the individual shall participate in an initial job search for up to 8 weeks, except as provided in paragraph (6) and subsection (f).
(i) For an applicant, the initial job search is required upon authorization of cash assistance.
(ii) The applicant or recipient shall document these efforts and present the documentation to the appropriate CAO upon request.
(4) After the initial job search, the individual may fulfill the work-related activity requirement, subject to the limitations in paragraphs (5)--(8), by participating in one or more of the following activities, as approved by the Department:
(i) Subsidized employment.
(ii) Work experience.
(iii) On-the-job training.
(iv) Community service.
(v) Workfare.
(vi) Job search, whether independent or assisted, and job readiness and job preparation activities.
(vii) Vocational education training or job skills training.
(viii) Any employment and training program funded or approved by the Department that provides one-stop access to intensive case management, training, education, job readiness training, job search and individual job development that leads to job placement.
(ix) Any employment and training program funded or approved by the Department that provides activities for a cash assistance applicant or recipient to achieve rapid attachment to the workforce.
(x) In the case of a recipient 18 years of age or older and less than 22 years of age, general education that is necessary for the recipient to obtain employment, a high school diploma or a certificate of high school equivalency, subject to the recipient maintaining satisfactory progress as defined by the school or educational program.
(5) During the first 24 months that an individual receives cash assistance, whether consecutive or interrupted, participation in an approved vocational education, general education, English-as-a-second language and job skills training counts toward fulfilling the work-related activity requirement of this subsection for a maximum of 12 months. After 12 months of education or training, the individual may continue to pursue education or training, but shall also fulfill RESET participation requirements, unless the individual establishes good cause under § 165.52 (relating to good cause).
(6) A recipient 18 years of age or older but under 22 years of age who does not have a high school diploma or its equivalent may fulfill RESET participation requirements by pursuing a high school diploma or its equivalent, provided that the individual maintains satisfactory progress, as defined by the institution.
(7) Work experience is limited to 6 cumulative months in an individual's lifetime.
(8) Notwithstanding paragraph (7), work experience may be extended beyond the 6-month lifetime limit if necessary to comply with Title II of the Americans With Disabilities Act (42 U.S.C.A. §§ 12131--12165).
(c) Requirements that apply after the first 24 months. The following RESET participation requirements apply after the first 24 months:
(1) After receiving cash assistance for 24 months, whether the months are consecutive or interrupted, a nonexempt individual shall, as a condition of eligibility or continuing eligibility for cash assistance, participate for an average of at least 20 hours per week in any one or a combination of the following activities, as approved by the Department:
(i) Unsubsidized employment.
(ii) Subsidized employment.
(iii) Work experience.
(iv) Community service.
(v) On-the-job training.
(vi) Workfare.
(2) After 24 months of receipt of cash assistance, an individual may continue to pursue education or training, but shall also fulfill RESET participation requirements, including the minimum 20-hour-per-week work activity requirement in paragraph (1), unless the individual establishes good cause, as specified in § 165.52.
(3) Work experience is subject to the provisions of subsection (b)(7) and (8).
(d) AMR and EDP. Final approval of the work and work-related activities listed in the AMR or EDP rests with the Department. The AMR and EDP are not considered contracts. Factors to be considered in developing the AMR and EDP include:
(1) Available program services.
(2) The client's previous education and training.
(3) The client's supportive services needs.
(4) The client's skills level and aptitudes.
(5) Local employment opportunities.
(6) The client's goals and interests, to the extent possible.
(e) Self-initiated education or training. Subject to subsections (b) and (c), self-initiated education or training may be approved as part of an individual's AMR, if the person is making satisfactory progress as defined by the institution.
(f) Exempt voluntary participation. An exempt individual may volunteer to participate in RESET. An exempt volunteer is not required to conduct an initial job search before participating in RESET.
SPECIAL ALLOWANCES FOR SUPPORTIVE SERVICES § 165.41. Eligibility for special allowances for supportive services.
(a) A cash assistance or Food Stamp recipient may receive certain special allowances to pay for in advance or to reimburse costs of supportive services, as specified in this chapter, to enable the individual to prepare for, seek, accept or maintain education, training or employment. Payment for supportive services will be made in advance whenever the payment is needed by the individual to begin or maintain a RESET activity.
(b) For an individual seeking cash assistance to qualify to receive a special allowance for supportive services, the individual shall be determined eligible for cash assistance, participate in RESET unless exempt and have an approved AMR. For an individual seeking only Food Stamps, to qualify for a special allowance for supportive services, the individual shall comply with an approved EDP. The approved AMR or EDP, whichever is applicable, shall specify the activities for which the supportive services will be provided.
(c) A special allowance for supportive services is made only to the extent that the item or service is not available from another public source at no cost to the individual, does not interfere with parental choice as specified in §§ 165.46(a)(5) and 168.11(b) (relating to types of special allowances for supportive services; and general requirements), and cannot be met by educational assistance. The activity may not be secondary education or an equivalent level of vocational or technical training, unless the individual is a pregnant female or custodial parent.
(d) The CAO will inform the individual, in writing and orally, of the availability of special allowances for supportive services at application, reapplication and whenever the AMR or EDP is developed or revised.
(e) The CAO shall assist the participant to obtain supportive services to participate in employment, education, training and job search activities, including precomponent activities such as orientation.
(f) Except as otherwise restricted in this chapter, special allowances for supportive services may be granted as often as required to enable the individual to participate in an approved education or training activity and once for each job.
COMPLIANCE REVIEW AND GOOD CAUSE § 165.51. Compliance review.
(a) Need for compliance review. A compliance review will be conducted when information indicates that a recipient may be out of compliance with RESET participation requirements, as specified in § 165.31 (relating to RESET participation requirements).
(b) Scheduling the compliance review. The caseworker will inform the recipient of the need for a compliance review and the consequences of failing, without good cause, to participate in the compliance review. In scheduling the compliance review, the caseworker will reasonably take into account the individual's work schedule, family and school obligations. The compliance review may be conducted in person or by telephone, according to the individual's preference.
(c) Purpose of compliance review. With the understanding that the goal of RESET is to assist the individual in becoming employable and self-sufficient, the compliance review will seek to identify the reasons for the individual's apparent noncompliance with RESET participation requirements. The caseworker will review the facts including those presented by the individual and those facts already known by the Department. If the individual's failure to comply with RESET participation requirements is not willful or the individual has good cause under § 165.52 (relating to good cause), the individual is not subject to sanction. In that instance, the caseworker will explore ways to address the obstacles that prevented the individual from complying with RESET participation requirements.
(d) Results of compliance review. The caseworker will document the results of the compliance review. If the caseworker determines that a recipient has willfully failed, without good cause, to comply with RESET participation requirements, the recipient is subject to sanction under § 165.61 (relating to sanctions). For a noncompliant recipient not subject to sanction, the caseworker will review program requirements, help identify obstacles to compliance, and with the recipient's involvement, develop a new AMR to help achieve and maintain compliance. A recipient may appeal the Department's decision that the recipient is subject to sanction as specified under § 275.1 (relating to policy).
(e) Special provision for individuals with disabilities. If the caseworker knows that an individual has a disability, the caseworker considers this fact, and those presented by the individual. If the facts reveal that the individual did not comply with RESET participation requirements due to disability, no sanction is imposed. In that case, the caseworker and the individual will develop a new AMR to address the disability and, if applicable, other obstacles to self-sufficiency.
§ 165.52. Good cause.
(a) Good cause includes the following circumstances beyond the individual's control:
(1) The job was beyond the capacity of the individual.
(2) The individual reasonably attempted and is unable to secure or to maintain transportation.
(3) The individual reasonably attempted and cannot secure or maintain appropriate child care, as defined in § 165.2 (relating to definitions), or appropriate adult care for an incapacitated adult living in the same home, within a reasonable distance from the individual's home, as defined in § 165.2.
(4) The working conditions are substandard; that is, the place of employment is not free of recognized hazards that are causing or are likely to cause death or serious physical harm, or the wages paid are below the minimum wage if applicable for that type of employment or are below the prevailing wage normally paid in the community for that specific kind of employment.
(5) The individual establishes a basis for a claim of discrimination by an employer or fellow employees based on age, race, sex, color, handicap, religious beliefs, national origin or political beliefs or other unlawful discrimination.
(6) The individual leaves a job in connection with patterns of employment in which workers frequently move from one employer to another, such as migrant farm labor, construction work or temporary work through an agency. Even though employment at the new site has not actually started, leaving the previous employment shall be considered good cause it if is part of the pattern of that type of employment.
(7) Personal illness or illness of another household or family member.
(8) A personal emergency.
(9) The individual failed to receive notice at least 2 days prior to the date of a scheduled RESET activity.
(10) The individual ends a sporadic work relationship that does not hold a reasonable possibility for permanent, full-time work to participate in an approved RESET activity or to accept full-time employment.
(11) A job offer is rejected because it will result in a net loss of cash income to the budget group of the RESET participant. Net loss of cash income results if the budget group's gross income less actual work-related expenses plus a cash assistance payment for which the budget group remains eligible is less than the cash assistance previously received. The actual work-related expenses include mandatory payroll deductions as well as the actual cost of the child care, cost of care of an incapacitated individual living in the same home and transportation.
(12) The individual was placed in an education or training activity that was beyond the capacity of the individual to complete, and the individual is willing to participate in another activity better suited to the individual's needs and aptitudes.
(13) A required employment and training activity conflicts with scheduled hours of employment or a job interview.
(14) The location of a RESET site or job is more than 2 hours round-trip by reasonably available public or private transportation from the individual's residence.
(15) The individual is claiming to be exempt from RESET participation requirements under § 165.21 (relating to exemptions from RESET participation requirements) and is cooperating in an attempt to provide verification of exemption.
(b) In determining good cause, the worker will give the individual the benefit of the doubt and consider all the facts and circumstances, especially if the transgression is relatively minor (such as reporting to a component a few minutes late) or isolated in nature (such as forgetting to keep an appointment, despite good overall attendance). Even after the CAO has made a preliminary determination of the lack of good cause, an individual may offer evidence of good cause to avoid sanction.
(c) The Department may grant good cause for up to 6 months to an individual, when strict application of any RESET participation requirement would not promote an individual's approved plan for self-sufficiency, as recorded on the AMR, and would make it more difficult for the individual to fulfill the plan. Examples of good cause for not strictly complying with a RESET participation requirement include:
(1) Hours that an individual is participating in an approved education or training activity which began during the first 24 months of receipt of cash assistance, if the total hours of instruction, lab time and work or work-related activity, whichever applies, equals at least 20 hours per week.
(2) Hours that an individual is participating in an internship, student teaching, or practicum assignment required as part of an approved education or training curriculum, if the individual is maintaining satisfactory progress as determined by the school or training agency, and the total hours of this activity and work or work-related activity, whichever applies, equals at least 20 hours per week.
(d) The Department may also grant good cause to a pregnant or parenting individual under 22 years of age who is enrolled in high school or attending a minimum 20-hour per week GED program, until the individual graduates from high school, receives a GED or reaches 22 years of age, whichever occurs first.
SANCTIONS § 165.61. Sanctions.
(a) A sanction will be imposed on an individual who is required to participate in RESET if the individual willfully, and without good cause, does one or more of the following:
(1) Fails to accept a bona fide offer of employment in which the individual is able to engage.
(2) Voluntarily terminates employment.
(3) Fails or refuses to accept referral to, participate in, or continue to participate in an available work-related activity, including work-related activities specified on the AMR.
(4) Fails to accept referral to, work in, or retain employment in which the individual is able to engage and participate in work activities specified on the AMR.
(5) Fails to seek employment.
(6) Fails to maintain employment.
(7) Reduces earnings.
(8) During the first 24 months of cash assistance, fails to participate in one of the following work-related activities, if not employed at least 20 hours per week:
(i) Subsidized employment.
(ii) Work experience.
(iii) On-the-job training.
(iv) Community service.
(v) Workfare.
(vi) Job search, whether independent or assisted, and job readiness and job preparation activities.
(vii) Vocational education training or job skills training.
(viii) Any employment and training program funded or approved by the Department that provides one-stop access to intensive case management, training, education, job readiness training, job search and individual job development that leads to job placement.
(ix) Any employment and training program funded or approved by the Department that provides activities for a cash assistance applicant or recipient to achieve rapid attachment to the workforce.
(x) In the case of a recipient 18 years of age or older and less than 22 years of age, general education that is necessary for the recipient to obtain employment, a high school diploma or a certificate of high school equivalency, subject to the recipient maintaining satisfactory progress as defined by the school or educational program.
(9) After receiving 24 months of cash assistance, fails to participate for an average of at least 20 hours per week in one of the following work activities:
(i) Unsubsidized employment.
(ii) Subsidized employment.
(iii) Work experience.
(iv) Community service.
(v) On-the-job training.
(vi) Workfare.
(10) Fails to agree to fulfill RESET participation requirements.
(11) Fails to apply for work at the time and in the manner the Department may prescribe.
(b) The sanction period shall be:
(1) For the first occurrence, ineligibility for cash assistance for 30 days, or until the recipient is willing to comply, whichever is longer.
(2) For the second occurrence, ineligibility for cash assistance for 60 days, or until the recipient is willing to comply, whichever is longer.
(3) For the third occurrence, permanent ineligibility for cash assistance.
(c) Applicability of the sanction is as follows:
(1) During the first 24 months, the sanction is imposed only on the individual who failed to comply.
(2) After 24 months, the sanction is imposed on the entire budget group.
(d) In lieu of the sanctions in subsections (b)(1)--(3) and (c)(1), if an employed individual voluntarily, without good cause, reduces his earnings during the first 24 months that assistance is received by not working an average of at least 20 hours per week, the grant will be reduced by the dollar value of the income that would have been earned if the recipient had not voluntarily reduced the hours of employment to less than an average of 20 hours per week. Unless the individual verifies an exemption from RESET participation requirements or establishes good cause for noncompliance, the reduction will continue until the minimum 20-hour weekly work requirement is met.
(e) If the individual under sanction in the first 24 months is the only dependent child in the TANF budget group, the caretaker will continue to receive TANF during the sanction period, if otherwise eligible.
(f) If the individual under sanction in the first 24 months is a parent or other caretaker, protective payments for the remaining members of the budget group will be made to the caretaker under sanction.
NOTIFICATION § 165.71. Notification.
(a) If the compliance review results in a finding that the recipient was willfully, and without good cause, failed to comply with RESET participation requirements, the CAO will notify the recipient in accordance with Chapter 133 (relating to redetermining eligibility). This notice will indicate the sanction to be imposed and the reason for the sanction.
(b) An individual whose failure to comply results in a sanction, as specified in § 165.61 (relating to sanctions), will be reminded in writing before the end of the minimum durational sanction period of the individual's option to end the sanction by correcting the failure to comply. The CAO will send the reminder to the individual 10 days prior to the end of the sanction period.
(c) The CAO shall inform applicants and recipients of the availability of transitional child care and extended medical care at application and reapplication.
Subpart D. DETERMINATION OF NEED AND AMOUNT OF ASSISTANCE
CHAPTER 177. RESOURCES
TREATMENT OF RESOURCES § 177.21. Personal property.
(a) Applicants and recipients. For an applicant and recipient, the following personal property is not counted in determining eligibility:
(1) Basic items essential to day to day living, such as the following:
(i) A household furnishing.
(ii) A major appliance.
(iii) An item used to provide, equip and maintain a household for the applicant or recipient.
(iv) A personal effect of limited value, including clothing, a child's toy, a wedding or engagement ring.
(v) Pets and family heirlooms.
(vi) A farm animal for domestic use.
(vii) A piece of farm equipment or a farm animal needed for employment.
(viii) A piece of equipment needed for employment, rehabilitation or to implement a self-care plan.
(2) The full value of one vehicle per TANF or GA budget group. The equity value of all other vehicles will be counted and applied toward the resource limit.
(3) A retroactive assistance payment received as a result of a prehearing conference, a fair hearing decision or a court order. This exemption will be only for the calendar month of receipt and the following calendar month. If an amount remains after the period of exemption, it is considered nonexempt and is subject to the resource limits under § 177.31 (relating to resource limit).
(4) A retroactive assistance payment authorized to correct underpayments to current recipients. The exemption will be only for the calendar month of receipt and the following calendar month. If an amount remains after the period of exemption, it is considered nonexempt and is subject to the resource limit under § 177.31.
(5) The value of food stamps received by a participant in the food stamp program.
(6) A Home Energy Assistance (HEA) benefit furnished in-kind by a private, nonprofit organization or furnished as cash or in-kind assistance by a supplier of home heating oil or gas, by an entity providing home energy whose revenues are primarily derived on a rate-of-return basis and regulated by the Pennsylvania Public Utility Commission or by a municipal utility providing home energy. HEA benefits may include payments for heating or cooling, storm doors, weatherization services, blankets or other items. HEA benefits do not include food or clothing.
(7) In-kind Support or Maintenance Assistance (SMA) benefits provided by a private, nonprofit organization. SMA benefits may include in-kind provisions of food, clothing, temporary emergency shelter, furniture, appliances or other items.
(8) Benefits received from the Low Income Home Energy Assistance Program (LIHEAP).
(9) A revocable burial reserve, as defined in § 177.2 (relating to definitions), of up to $1500 for each member of the budget group.
(10) If a burial reserve is in irrevocable form under § 177.24(l)(i) (relating to determining value of resources), it has no effect on eligibility for assistance.
(11) An educational savings account established by an individual at a bank or other financial institution to pay for education expenses, including tuition, books and incidental expenses related to attendance at a vocational school, community college, college or university. The account shall be clearly identified as having been established for or restricted to payment of educational expenses.
(i) The savings account, its ownership, the account balance and the fact that the account is restricted for payment of educational expenses shall be verified by written documentation. Documentation may include, but is not limited to, a copy of the passbook or a copy of the current account statement from the bank or other financial institution.
(ii) Moneys deposited in an account plus interest earned on the account shall be exempt in determining eligibility as long as the funds remain on deposit.
(iii) Moneys withdrawn to pay for educational expenses are exempt. Documentation shall be provided that verifies the expenses were incurred and related to attending school.
(iv) Moneys withdrawn from an educational savings account that are used for a purpose unrelated to education shall be added to the budget group's resource amount and used to determine eligibility beginning with the date of withdrawal.
(12) Savings accounts established and bonds purchased under the Tuition Account Program and College Savings Bond Act (24 P. S. §§ 6901.101--6901.701).
(13) Educational assistance in the form of loans, grants and scholarships, and work-study income.
(14) The face and cash surrender value of a life insurance policy.
(15) A family savings account established under Chapter 21 of the Job Enhancement Act (73 P. S. §§ 400.2101--400.2103).
(i) The account shall be clearly identified as a family savings account.
(ii) The savings account, its ownership and the account balance shall be verified by written documentation. Documentation may include a copy of the passbook or a current statement from the bank or other financial institution.
(iii) Moneys deposited into the account plus interest earned on the account shall be exempt in determining eligibility as long as the funds remain on deposit.
(iv) Moneys withdrawn to pay for expenses outlined in an approved savings plan for this account are exempt. Documentation shall be provided that verifies the expenses were incurred.
(v) Moneys withdrawn from a family savings account that are used for a purpose unrelated to the approved savings plan shall be added to the budget group's resource amount and used to determine eligibility beginning with the date of withdrawal. Exception: moneys withdrawn to pay for educational expenses shall be exempt.
(b) SBP and SSI recipients. Personal property of SBP and SSI recipients is considered exempt in determining eligibility of the budget group, even if the recipient is an LRR to a budget group member.
(c) LRRs. An LRR is eligible for the personal property exemptions in subsection (a). The following requirements apply:
(1) An LRR who resides with the budget group and is not receiving cash assistance will have nonexempt personal property counted in determining eligibility of the budget group.
(2) An LRR who is not residing with the budget group will not have his nonexempt personal property resources counted when determining the eligibility of the budget group.
(d) Individual sponsor of an alien. An individual sponsor of an alien is eligible for the personal property resource exemptions in subsection (a).
(e) Stepparents. Personal property of a stepparent who is not included in the budget group is exempt in determining eligibility for stepchildren.
§ 177.22. Real property.
(a) Resident property owned by an applicant or recipient. The equity value of resident property is not counted toward the resource limit. The owner shall acknowledge liability of the resident property for reimbursement of assistance received on behalf of himself and persons for whom he is an LRR as defined in § 257.24(b) (relating to procedures) by signing an agreement consenting to the placement of a lien against the property.
(1) The Department will not force the sale of, or execute on a lien against, resident property as long as the property is used as a home by the applicant or recipient owner or his spouse or minor or incompetent adult children.
(2) Although a lien is placed against resident property, the lien does not include assistance paid during the period the owner or someone else in the budget group worked in a CWEP assignment. The amount disregarded from the lien will equal the number of hours worked in a CWEP assignment multiplied by the hourly minimum wage at the time of the work assignment.
(b) Nonresident property owned by an applicant or recipient. Nonresident property, including a burial space, is considered in the following manner:
(1) One burial space for each household member is exempt. This exemption also applies to LRRs and sponsors of aliens.
(2) If nonexempt property is legally available, the equity value of the applicant's/recipient's interest in the property plus the equity value of other nonexempt resources is totaled and considered against the resource limits in § 177.31 (relating to resource limit).
(3) If the equity value of nonexempt property, either alone or in combination with other nonexempt resources, exceeds the resource limit, each separately deeded parcel of nonexempt property receives an exemption for 9 consecutive budget months beginning with the date assistance is authorized for applicants, and the date the resource becomes legally available for recipients, if the following requirements are met:
(i) The applicant or recipient makes a good faith effort to dispose of the property and shall sign an agreement acknowledging liability for reimbursement of assistance received on behalf of himself and persons in the budget group for whom he is an LRR.
(ii) In cases when the budget group has been unable to sell nonresident property for reasons beyond its control, the 9-month time limit for disposing of the property will be extended for additional 9-month periods as long as the Department determines that the budget group is continuing to make a good-faith effort to sell the property.
(iii) The applicant or recipient repays the amount of assistance received during the exemption period, not to exceed the net proceeds of the sale. The assistance received is treated as an overpayment.
(4) If the nonexempt property has not been sold within each of the 9-month exemption periods, and the budget group cannot substantiate that a good-faith effort to sell the property is still being made, the recipient and members of the budget group for whom he is an LRR are ineligible, and the assistance received is treated as an overpayment. If the assistance stops and restarts during the 9 consecutive month exemption period, the assistance received is treated as an overpayment.
(c) Real property owned by an SSI or SBP recipient. The equity value of real property of an SSI or SBP recipient is not counted in determining eligibility of a budget group, regardless of whether or not he is an LRR to the budget group. The SBP recipient shall acknowledge liability for reimbursement of assistance provided to members of the budget group for whom the SBP recipient is an LRR, and a lien in favor of the Department will be placed against only the resident property. The SBP recipient who is an LRR is subject to the requirements under subsections (a) and (b). The SBP recipient is not required to sell his resident property as a condition of eligibility of the budget group, nor will the Department force the sale of, or execute on, the lien against the property.
(d) Resident property owned by an LRR. The following requirements apply:
(1) The equity value of resident property of an LRR who resides with the budget group, and who does not receive cash assistance, is not counted when determining eligibility of the budget group. Subject to the requirements of subsection (a), the LRR shall acknowledge liability of the property for reimbursement of assistance received by members for whom he is legally responsible if the LRR sells the resident property.
(2) Subject to the requirements under subsection (a), the LRR who owns resident property but is not residing with the budget group shall acknowledge liability for assistance received by members for whom the LRR is responsible. Failure by the LRR to agree to acknowledge liability does not affect the eligibility of the budget group.
(e) Nonresident property owned by an LRR. The following requirements apply to nonresident property owned by an LRR:
(1) For an LRR who resides in the home of the budget group and who is not receiving cash assistance, SSI or SBP and who has an ownership interest in nonresident property, his equity value of the property plus the equity value of other nonexempt resources of those members for whom the LRR is responsible are totaled and counted against the resource limit found in § 177.31. The conversion requirements of subsection (b) apply to the LRR. If the property is not legally available, the value of the property is not counted. The LRR shall acknowledge liability for reimbursement of the assistance received by budget group members for whom the LRR is legally responsible under subsection (b).
(2) For an LRR who is absent from the home, the procedures at § 257.24(a)(4) apply.
(f) Real property owned by a stepparent. Real property or a portion of real property owned by a stepparent is exempt when determining the eligibility of the stepchild. It is not subject to acknowledgement of liability for reimbursement of assistance received by the stepchild.
(g) Real property owned by the sponsor of an alien. Real property owned by a sponsor of an alien is treated under § 177.11(h)(1)(ii) and (iii) (relating to identification and verification of resources).
§ 177.24. Determining value of resources.
Unless specifically exempt under § 177.21 or § 177.22 (relating to personal property; and real property), the equity value of real and personal property is subject to the resource limits in § 177.31 (relating to resource limit).
(1) Determining value of personal property. An applicant, recipient, guardian, trustee or sponsor of an alien shall provide documentation verifying value of personal property. This documentation includes a written estimate from a car dealer of the fair market value of a motor vehicle, a title of ownership and a written statement from financial institutions. Special requirements regarding certain personal property resources are as follows:
(i) An irrevocable burial reserve shall be in a form which restricts the use of the money to the client's burial, and shall provide that no part of the burial reserve may be withdrawn prior to the death of the client. If the interest earned on the reserve can be withdrawn, the interest is treated as income. If the CAO questions whether the document supports irrevocability, the Executive Director will send a copy of the document through proper channels for a review by the Office of Legal Counsel.
(ii) An irrevocable burial reserve owned by an applicant or established by a recipient is exempt. The value of a revocable burial reserve shall be counted as a resource available to the AFDC or GA budget group under § 177.21(a).
(iii) The establishment of an irrevocable or revocable burial reserve from excess resources does not reduce the individual's liability to repay the Department for the assistance granted during the time that the individual's total resource equity value exceeded the resource limit.
(2) Determining value of nonresident property. Documentation of the fair market value of nonresident property includes the estimate of value provide by value based property tax bills, by a licensed real estate broker or a financial institution--or, in the case of burial spaces, a statement from a representative of a cemetery or memorial garden--verifying ownership, conditions of resale and value. An encumbrance is deducted from the fair market value to determine the equity value.
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