2329 Real Property: Non-Homeplace | Medicaid

Georgia Division of Family and Children Services
Medicaid Policy Manual

Policy Title:

Real Property: Non-Homeplace

Effective Date:

July 2022

Chapter:

2300

Policy Number:

2329

Previous Policy Number(s):

MT 59

Updated or Reviewed in MT:

MT-65

Requirements

The equity value of the applicant/recipient’s (A/R’s) interest in non-homeplace real property is a countable resource for all ABD and Family Medicaid Classes of Assistance (COAs).

Basic Considerations

Non-homeplace real property includes the following:

land
lots
trees on land
buildings on non-homeplace property which would transfer to a buyer if/when the land or lot were sold
houses and mobile homes, whether occupied or unoccupied

Equity value (fair market value less any indebtedness) is the countable value of non- homeplace property.

Indebtedness is the total amount of debt that remains to be paid, including principal, interest, and any liens and/or encumbrances.

Non-homeplace real property may be totally or partially excluded if it meets one of the following conditions:

the property is jointly owned, and the sale of the property would cause undue hardship to a co-owner(s). Refer to 2345 Undue Hardship Provision for ABD Medicaid.
the A/R is making a bona-fide or good faith effort to sell the property. Refer to 2304 Treatment of Resources For ABD Medicaid.
the property is restricted allotted Indian land. Refer to 2304 Treatment of Resources For ABD Medicaid.
the property meets undue hardship provisions. Refer to 2345 Undue Hardship Provision for ABD Medicaid.
the property is essential to self-support (this applies only to ABD COAs). Refer to 2327 Property Essential to Self-Support.
the property is declared unmarketable by a competent authority
the A/R owns a life estate interest in the property (ABD Non-FBR COAs only). Refer to 2322 Life Estate and Remainder Interests.

Sale of Non-Homeplace Real Property

The proceeds from the sale of excluded non-homeplace real property are excluded during the month of sale. Any proceeds remaining the month following the sale are a countable resource.

Bona-fide or Good Faith Effort to Sell

A bona-fide or good faith effort to sell is defined as follows:

actual sale attempt at a price not more than current market value
listing with a realtor OR
appropriate advertising such as in newspapers, radio, etc.
acceptance of any reasonable offer.

Refer to 2304 Treatment of Resources For ABD Medicaid. See 2304-2 Bona Fide Effort to Sale.

Income Producing Property: ABD Medicaid

Refer to 2327 Property Essential to Self-Support.

Income Producing Property: Family Medicaid

Income producing property is considered a countable resource when determining eligibility for Family Medicaid COAs.

Income producing property is defined as follows:

property which produces income, even if used only on a seasonal basis
property essential to the employment or self-employment of a household member (rental homes, farmland, etc.)
rental property which is used for vacation purposes at some time during the year and which produces income
installment contracts for the sale of land or buildings if the contract or agreement produces income.

Refer to 2410 Rental Income.

Procedures

Verify ownership interest and Current Market Value (CMV) of non-homeplace real property using one of the following documents:

property search (Form 991)
legal documents indicating value of the property.

Determine the equity value of the property.

If the A/R rebuts the CMV indicated in the Tax Digest, the A/R may obtain written appraisals or estimates from two reliable sources, such as realtors or appraisers, as to the accurate CMV. Average the two appraisals or estimates to determine CMV.