MS 1980(1)
[Non-homerealproperty is propertythat an individual owns, but does not designate as their homestead.This includes, but is not limited to, rental property, business property, vacation property, or land not adjoining the homestead. Homestead property becomes non-home real property after 6 months of institutionalization in a facility; for more information, refer to MS 1975.
Note: Non-home real property may also be referred to as non-homestead property.
A.Verification of non-home real property.
1.Use Eligibility Advisor (EA) to verify if an individual owns property or has purchased, sold, or transferred property. For property that has been sold or transferred for less than fair market value (FMV), refer to MS 2050.
- If an individual reports no property and EA returns no property, no additionalverification is required.
- If the information returned from EA is incomplete, if the individual disputes the results, or if the results are unclear, refer to MS 1971.
- If the individual reports owning, selling, or transferring property, but EA returns no results or returns incomplete results, the worker must request appropriate verification. The worker should assist the individual by contacting the Property Valuation Administrator (PVA) or County Clerk’s office to obtain verification.
- If the individual reports owning property out-of-state, and EA does not return verification of property, request appropriate verification. It is the individual’s responsibility to provide verification.
2.County tax records or an appraisal completed by an independent licensed appraiser may also be used to verify FMV.
3.The individual must verify any debt reported on the property to determine equity value. If the individual does not provide verification of debt, the entire FMV of the property is considered.
4.Document case notes regarding ownership of real property and indicate method of verification.
B. Worker Portal determines the equity value of non-home real property by subtractingany debt owed on the property from the FMV.
Example: Applicant reports owning a one-acre tract, which is not her home. The FMV of the property is $30,000. The applicant has verified that she owes $10,000 on it. The countable equity value of the property is $20,000 ($30,000 - $10,000).
C.Consideration of jointly owned property.
If non-home property is jointly owned, determine the recipient’s share by dividing the equity value by the number of owners, unless the deed specifies percentage of ownership. Exclude the property from resource consideration if the other owner(s) refuse to sell. The other owner(s) must verify in writing an unwillingness to sell his/her interest in the property. This does not apply to community spouses. Verify the joint owner’s refusal to sell at each application and recertification.
D.Exclusion of property due to inability to sell.
Non-home real property may be excludedfrom resource consideration for a reasonable effort to sell. This exclusion is not permanent. At each recertification or reapplication, it must be reviewed and verified that there has been and continues to be a reasonable effort to sell the property at FMV.
A reasonable effort to sell the property shall consist of:
1. Listing the property with a real estate agent. Obtain a copy of thesales agreement or contract and verify:
a. A “For Sale” sign has been placed on the property which is clearlyvisible from the nearest public road; and
b. The property is advertised in the local newspaper, on localtelevision or radio stations, or the internet.
2. If the individual is trying to sell the property privately, a combination ofat least two of the following actions must occur:
a. Advertising the property in the local newspaper, on localtelevision or radio stations, or the internet;
b. Placing a “For Sale” sign on the property, which is clearly visiblefrom the nearest public road;
c. Distributing fliers advertising the property for sale;
d.Posting notices regarding availability of the property oncommunity bulletin boards; or
e.Showing the property to interested parties on a continuing basis,documented on a log with dates.]