1520 Real Property

Georgia State Seal

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Real Property

Effective Date:

January 2020

Chapter:

1500

Policy Number:

1520

Previous Policy Number(s):

MT 2

Updated or Reviewed in MT:

MT-52

Requirements

The value of property in the form of land and buildings is considered in determining financial eligibility.

Basic Considerations

Real property includes the following:

  • land

  • lots

  • trees on land

  • buildings that would pass to a buyer if the land or lots were sold

  • mobile homes.

Real property is generally categorized as one of the following:

  • homeplace

  • non-homeplace

  • income producing.

Homeplace

Homeplace property includes the dwelling in which the AU lives and surrounding land and outbuildings.

Buildings on the property such as stores or other houses which are not clearly part of the home and its outbuildings must be counted as a resource.

The original homeplace may have been added to by the purchase of land contiguous to the homeplace and more than one deed may exist. The original homeplace and the contiguous land are considered the homeplace, provided all deeds are in the name of an AU member or a person whose resources are considered available to the AU and/or his/her spouse.

Public rights of way, such as roads that run through the property, do not affect the property’s designation as homeplace. The description of the property as contained in the deed shall be considered the homeplace.

To be considered part of the homeplace, surrounding property cannot be separated by property owned by others.

If the contiguous property is owned jointly by an AU member or a person whose resources are considered and a non-AU member, the contiguous property is considered part of the homeplace.

Homeplace property is exempt from consideration as a resource.

The homeplace remains exempt when temporarily unoccupied for the following reasons, provided the AU intends to return:

  • employment

  • training

  • illness

  • vacation

  • uninhabitability caused by casualty or natural disaster

  • absence due to domestic violence.

Refer to Chart 1520.1 for treatment of homeplace property that is temporarily unoccupied.

If the homeplace remains unoccupied for longer than 12 months, the absence must be reevaluated to determine if there is still an intent to return home and the absence continues to be temporary.

If an AU currently does not own a home, the value of a lot purchased to build a home is excluded for 12 months. The value of a partially built home is also excluded for 12 months if the AU currently does not own another home.

Sale of Homeplace Property

The proceeds from the sale of homeplace property must be reinvested in another homeplace within six months. Any of the proceeds not used for this purpose and still available must be counted as a resource in the month following the month another home is purchased but no later than the second month.

If another home is not purchased within six months, any of the proceeds still available are counted as a resource in the seventh month.

Non-Homeplace Property

Non-homeplace property includes all land and buildings that are not homeplace property.

The equity value of non-homeplace property is counted as a resource.

The equity value is the fair market value less any indebtedness or financial encumbrance.

The value of non-home place property must be verified. The following sources may be used as verification:

  • county tax digest

  • real estate professional.

Mortgage books or loan papers may be used to determine indebtedness.

Sale of Non-Homeplace Property

The proceeds from the sale of non-home place property are excluded during the month of sale. Any remaining in the month following the month of sale is a resource.

The accrual rights policy is applied to determine the first month in which the proceeds are counted as a resource.

Non-home place property that the AU is making a good faith effort to sell at a reasonable price may be exempt from consideration as a resource.

Good Faith Effort to Sell

A good faith effort to sell property is defined as follows:

  • actual sale attempt at a price not more than current market value

    AND

  • listing of the property with a realtor

    OR

  • appropriate advertising of the property’s availability for purchase in newspapers, on the radio, etc.

    AND

  • acceptance of any bona fide offer.

The property is exempt for six months if the AU agrees to use the net proceeds from the sale to repay the cash assistance received for the months in which the property was exempt.

A formal agreement to sell the property and repay the cash assistance must be obtained.

The AU’s refusal to sign and provide a formal agreement or similar document results in the non-home place property being counted toward the resource limit.

The six-month exemption period begins as follows:

  • at application, the first month of receipt of cash assistance,

  • for active cases, the month following the month the property is acquired.

Chart 1520.2 provides procedures to follow at the end of the six-month exemption.

Property Declared Unmarketable

Property declared unmarketable by a competent authority is excluded as a resource.

Verification of the reason the property is unmarketable must be obtained from a competent authority.

Income-Producing Real Property

Income-producing property is a countable resource. The income derived from the property is countable as income.

Examples of income-producing property include rental homes, even when used by the AU as a vacation home, farmland, and installment contracts for the sale of land or buildings.

Determining the Resource Value

Follow the steps below to determine the countable resource value of real property:

Step 1

Determine what real property the AU owns or that is owned by persons whose resources are considered available to the AU.
Step 2

Determine if any of the property can be exempted or excluded as a resource.
Step 3

Determine the equity value of the property by subtracting indebtedness from the fair market value.
Step 4

Apply the equity value to the resource limit.

Use the following chart to determine the treatment of specific types of real property:

Chart 1520.1 - Real Property
TYPE OF REAL PROPERTY TREATMENT

homeplace - home and its outbuildings, and all surrounding property.

Exempt the value of the property.

homeplace when temporarily unoccupied and the AU intends to return.

Exempt the value of the property for 12 months from the date the property became unoccupied. Reevaluate absence in the 12th month.

land purchased on which to build a home and the AU does not currently own a home.

Exempt the value of the property for 12 months from the date of purchase. Apply the equity value to the resource limit beginning with the 13th month.

land purchased on which to build a home and the AU currently owns a home

Apply the equity value to the resource limit.

property other than a homeplace, regardless of whether it is income producing or not.

Apply the equity value to the resource limit.

property which the AU is making a good faith effort to sell.

Exempt the value of the property for six months if the AU meets the conditions for this exemption.