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.
Authority The provisions of this § 177.21 amended under sections 201(2), 403(b) and 432 of the Public Welfare Code (62 P. S. § § 201(2), 403(b) and 432); Titles I and III of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. No. 104-193) (PRWORA), creating the Temporary Assistance for Needy Families (TANF) Program, and amending 42 U.S.C.A. § § 601—619, 651—669(b) and 1396u-1; and the Federal TANF regulations in 45 CFR 260.10—265.10.
Source The provisions of this § 177.21 adopted August 4, 1977, effective August 5, 1977, 7 Pa.B. 2180; explained November 6, 1981, 11 Pa.B. 3954; amended November 6, 1981, effective November 7, 1981, 11 Pa.B. 3972; amended July 9, 1982, effective July 10, 1982, 12 Pa.B. 2175; amended August 26, 1988, effective November 1, 1988, 18 Pa.B. 3893; amended July 28, 2000, the provisions under Act 49 effective September 1, 1994, the savings for education exemption applicable to the TANF Program effective retroactive to March 3, 1997, 30 Pa.B. 3779; amended September 13, 2002, effective September 14, 2002, 32 Pa.B. 4435. Immediately preceding text appears at serial pages (268338) to (268341).
Notes of Decisions In order to prove that a vehicle has an encumbrance, an applicant for assistance must provide evidence that: (1) the money was borrowed for the purpose of purchasing a vehicle; (2) the lender expects repayment and the claimant acknowledges an obligation to repay the loan; and (3) a timetable and plan for repayment has been established. Lambert v. Department of Public Welfare, 631 A.2d 815 (Pa. Cmwlth. 1993).
The discontinuance of AFDC benefits to a recipient because of her failure to apply for state retirement funds is proper, given her agreement in an assistance application form to pay the Department such funds and the provisions of 55 Pa. Code § § 177.21(b), 177.22 (relating to definitions), and 177.23(a)(1), (3) and (6) (relating to requirements). Waller v. Department of Public Welfare, 443 A.2d 1222 (Pa. Cmwlth. 1982).
The denial of benefits to an applicant because of her failure to apply for the railroad retirement benefits of her late husband serves to further the purpose of the welfare system, since the applicant is not a ‘‘needy’’ person which the program is designed to assist, and assistance is intended to supplement, not to replace, the resources of an individual. Armlovich v. Department of Public Welfare, 411 A.2d 893 (Pa. Cmwlth. 1980).
Since a hospital patient was eligible for both MA benefits and no-fault motor vehicle insurance benefits, the allegations of the patient that the hospital exercised unreasonable care in seeking no-fault insurance benefits for his expenses instead of MA benefits set forth a valid claim. Harleysville Mutual Insurance Co. v. Yocolano, 9 Pa. D. & C.3d 226 (1978).
Cross References This section cited in 55 Pa. Code § 133.23 (relating to requirements); 55 Pa. Code § 177.11 (relating to identification and verification of resources); 55 Pa. Code § 177.23 (relating to ownership); and 55 Pa. Code § 177.24 (relating to determining value of resources).
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