SNAP Handbook | |
RESOURCES | |
CITATION | |
The CAO will exclude the following resources when determining eligibility: |
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the home and surrounding land and buildings which are not separated by property that is owned by others. A public road or right of way that separates any plot from the home will not affect the exclusion; |
7 CFR |
NOTE: Home may be a house, trailer or a vehicle. |
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a home temporarily unoccupied because of employment, training for future employment, casualty, illness, or natural disaster, if the household intends to return; |
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Real property (land and buildings) not used as a home if the ability to provide verification of ownership, net worth, and efforts to sell the property pose undue hardship for the household. |
P.L. 107-171 |
EXAMPLE: A household member becomes the owner of the family homestead as all other family members are deceased. The home has been abandoned and is uninhabitable. The process to seize the property has been delayed by municipal authorities several months. The household is unable to readily provide proof of the ownership and the situation. The CAO determines the property is an excluded resource and records the reason for excluding the property in the case record; and |
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a lot on which a household which currently does not own a home is building or intends to build a permanent home. The household will receive an exemption for the lot and, if partially completed, for the home. |
2. |
PERSONAL EFFECTS AND BURIAL PLOTS |
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The CAO will exclude personal possessions such as clothing, jewelry, and gift cards. |
7 CFR § 273.8(e)(2) |
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The CAO will exclude all burial plots. |
3. |
HOUSEHOLD GOODS |
The CAO will exclude household items such as furniture and appliances. |
4. |
TOTALLY EXCLUDED VEHICLES |
7 CFR § 273.8 |
The CAO will exclude the total value of all vehicles identified as totally excluded licensed vehicles in sections 540.321 and 540.322. |
5. |
LIFE INSURANCE AND PENSION PLANS |
The CAO will exclude the cash value of: |
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life insurance policies; and |
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All pension plans or funds. |
P.L. 107-171 |
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NOTE: All pension plans or funds are excluded until a household member chooses to withdraw the funds. Retirement funds, when withdrawn, will be treated either as unearned income if received as a recurring payment (See Section 550.3 Unearned Income) or as a lump sum resource if received as a non-recurring payment (See Section 540.42 Lump Sum Resources) |
6. |
INCOME-PRODUCING PROPERTY/EQUIPMENT |
The CAO will exclude: |
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real property (land and buildings) not used as a home, if it is income producing AND the income is consistent with the property's fair market value, or is essential to employment or full self-employment; |
7 CFR § |
NOTE: Rental and vacation properties should produce income similar to other rental properties of equal fair market value. |
7 CFR § |
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property essential to the employment or self-employment of a household member, such as tools of a trade or the machinery of a farmer, including essential work-related equipment of an ineligible non-citizen or disqualified individual; |
NOTE: Property essential to the self-employment of a household member engaged in farming shall continue to be excluded for one year from the date the household member terminates its self-employment from farming; and |
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the portion of real or personal property used in connection with a vehicle which is excluded as a resource because it is necessary for producing income or transporting a physically disabled household member. |
EXAMPLE: A household uses a produce truck to earn a living and is prohibited from parking the truck near its home. The household owns a 100-acre field and uses a portion of it to park and/or service the truck. Only the value of the portion used for the vehicle would be excluded, not the entire 100-acre field. |
7. |
GOVERNMENT PAYMENTS |
The CAO will exclude any government payment if the household is subject to legal sanction when the funds are not used as intended. |
7 CFR § |
EXAMPLE: Payments by the Individual and Family Grant Program or the Small Business Administration to rebuild a home or replace personal possessions damaged in a disaster. |
8. |
The CAO will exclude: |
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the cash value of resources not legally available to the household; |
7 CFR § |
EXAMPLE: Irrevocable trust funds, Pennsylvania Uniform Gifts to Minors Act accounts, property in probate, security deposits on rental property and utilities, and funds received from a non-household member that are intended and used only for the benefit of a non-member, if the household provides verification. |
NOTE: The use of “in trust for” bank account is an informal trust arrangement and is usually used to set up a bank account for a minor. The individual setting up the bank account has full access to the account. It is a resource to the individual that set up the bank account. |
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resources that cannot be sold for a significant return. The sale of these resources is unlikely to produce any significant funds for the support of the household because of the high cost of selling and/or the low equity value. Significant funds are defined as funds amounting to $1500 for the household. Verification is required if information provided by the household is questionable. |
7 CFR § |
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Funds in the department of housing and urban development’s family self-sufficiency program escrow account. |
7 CFR § |
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A vehicle is considered an inaccessible resource if the equity value of the vehicle is $1,500 or less. There are no limits on the number of vehicles per household when determining the “significant return.” |
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Reminder: an inaccessible resource does not count towards the household’s resource limit. |
NOTE: this provision does not apply to negotiable financial instruments, such as stocks and bonds. These assets are counted towards the household’s resource limit. |
EXAMPLE: A household owns a non-resident property with numerous liens placed against it. If the income from the sale of the home, at fair market value, after payment of all liens would be less than half of the household resource limit, the property is excluded as an inaccessible resource. |
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frozen bank accounts used as security for a loan or due to bankruptcy proceedings; |
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real property if the household is making a good faith effort to sell it at a reasonable price. The CAO may verify that the property is for sale and the household has not refused a reasonable offer. Record the reason for excluding the property and the household's efforts to sell it in the case record; |
NOTE: Abandoned or uninhabitable property is considered inaccessible. If the ability to provide verification of ownership, net worth and efforts to sell the property pose undue hardship for the household. |
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trust funds not readily available due to early withdrawal penalties, the special permission provisions required for withdrawal and/or the restrictions on their use. |
P.L. 107-171 |
NOTE: Dividends earned or money withdrawn from a trust is income, not a resource. |
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Funds from the Worker’s Compensation Medicare Set-Aside Arrangement (WCMSA) (the original amount plus any interest) should be considered inaccessible for Food Stamp purposes because a Worker’s Compensation ruling has placed restrictions on the use of the WCMSA payment. |
9. |
INSTALLMENT CONTRACTS |
The CAO will exclude installment contracts for the sale of land and buildings if the contract or agreement is producing income consistent with the property's fair market value. |
7 CFR |
The CAO will exclude property being sold under an excluded installment contract or held as security for the fulfillment of an excluded installment contract. |
10. |
RESOURCES PREVIOUSLY PRORATED AS INCOME |
The CAO will exclude resources, such as those self-employed individuals, which have previously been prorated as income. If this money is combined with countable funds, such as a bank account, exclude the prorated amount for the period it is prorated. After the period, the total amount of combined funds is a countable resource. |
7 CFR |
11. |
NON-LIQUID RESOURCES WITH LIENS |
The CAO will exclude a non-liquid resource which has a lien placed against it if: |
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the lien is a result of taking out a business loan; and |
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the household is prohibited by the security or lien agreement with the lender from selling the asset. |
12. |
ENERGY ASSISTANCE |
The CAO will exclude payments or allowances for energy assistance made under any federal law that are excluded as income, subject to FNS approval. |
7 CFR |
The CAO will exclude payments, allowances or tax credits for energy assistance made under state or local law that are excluded as income. |
13. |
DISASTER AND EMERGENCY ASSISTANCE PAYMENTS |
The CAO will exclude the following: |
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Payments precipitated by an emergency or major disaster as defined in the Disaster Relief Act of 1974. |
Pub. L. 100-707 |
NOTE: Federal Emergency Management Assistance (FEMA) funds are excluded if they are made to individuals affected by a major disaster or emergency including rental assistance funds. |
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Disaster Unemployment Assistance (DUA) will not be considered as a resource when determining eligibility and benefit levels. |
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Payments made to farmers resulting from a declaration by the Secretary of Agriculture that a farm emergency exists due to a natural disaster. |
Pub. L. 100-387 |
14. |
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The CAO will exclude the following resources: |
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All tax refunds. |
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Federal child tax credits received either as a lump sum or as payments under 26 U.S.C. Section 24 for the month of receipt and the following month. |
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Federal advance earned income tax credits received either as a lump sum or as payments under section 3507 of the internal revenue code for the month of receipt and the following month for the individual and that individual’s spouse. |
7 CFR § |
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Earned income tax credits for 12 months from receipt if the individual receiving the EITC was participating in the Food Stamp Program when the EITC was received and participates continuously during the 12 month period. |
NOTE: Households do not lose the exclusion because of temporary periods of non-participation which, for example, can be caused by semi-annual reporting sanctions or missing the recertification appointment. |
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Benefits from special supplemental food programs for women, infants, and children (e.g., WIC). |
7 CFR § |
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Coupons that may be exchanged for food at farmer's markets under WIC demonstration projects. |
Pub. L. 100-435 |
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Educational assistance, including funds withdrawn from Educational Savings Accounts, Tuition Accounts or College Savings Bonds purchased under the Tuition Account Act or College Savings Bond Act, when the funds are used for educational expenses of an eligible student. See Chapter 514, Students. |
7 CFR § |
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Payments received from the Youth Incentive Entitlement Pilot Projects, the Youth Community Conservation and Improvement Projects and the Youth Employment and Training Program under the Youth Employment and Demonstration Project Act of 1977, but not payments from the Young Adults Conservation Corps under that Act nor any payments under WIA. |
7 CFR § |
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Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970. |
7 CFR § |
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Payments received under the Wartime Relocation Act to the United States Citizens of Japanese ancestry, and permanent resident Japanese aliens or their survivors, and Aleut residents of the Pribilof Islands and the Aleutian Islands West of Unimak Island. |
Pub. L. 100-383 |
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Payments received from the Agent Orange Settlement Fund, or from any fund established according to the Agent Orange product liability settlement. This resource exclusion is effective retroactively to January 1, 1989. |
Pub. L. 101-201 |
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Payments received under the Radiation Exposure Compensation Act to compensate individuals for injuries or death resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada and Utah. |
Pub. L. 101-426 |
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Payments received by children of Vietnam veterans who are born with spina bifida. These payments will be paid by the Department of Veterans Affairs and will be a monthly allowance based on the degree of disability suffered by the child. |
Pub. L. 104-204 |
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Payments received under The National and Community Service Trust Act of 1993 and Americorps. |
Pub. L. 101-610 |
15. |
INDIAN FUNDS AND LANDS |
The CAO will exclude land and payments to certain Indian tribal members based on the provision of various Federal laws. The individuals should have documentation showing where the payments originate. The CAO will direct any questions about such resources to the Policy Clarification Unit in the Bureau of Policy where a current list of these exclusions is maintained. |
7 CFR § |
16. |
RESOURCES OF TANF AND SSI HOUSEHOLD MEMBERS |
The CAO will exclude all of the resources of mixed household members who receive TANF or Supplemental Security Income (SSI). If all of the household members are recipients of TANF and/or SSI, the household is categorically eligible. The CAO will also exclude the resources of participants in the TANF Family Works (FW) initiative. |
7 CFR § 273.8 |
EXCEPTION: This provision does not apply to households containing ineligible non-citizens. |
EXAMPLE: Lump sum payments of retroactive benefits to disabled children as a result of the Sullivan v. Zebley case are exempt as resources. |
NOTE: Dedicated accounts established by representative payees for deposit of retroactive Social Security and SSI payments for individuals under 18 are excluded as resources. |
The interest accrued on these accounts, if not withdrawn from the account, is also excluded as a resource. See Chapter 550, Income. |
Dedicated accounts are established in accordance with the law which sets parameters on how deposited funds can be used. These accounts are audited periodically by the Federal government. |
17. |
GERMAN REPARATION PAYMENTS |
The CAO will exclude all of the resources which are comprised of payments made to individuals because of their status as victims of Nazi persecution. |
Pub. L. 103-286 |
18. |
FAMILY SAVINGS ACCOUNT (FSA) |
P.L. 104-193 |
The CAO will exclude funds deposited into and interest accrued on FSA(s) during the period of time the individual maintains or makes contributions into the account. Funds withdrawn under the provisions of the Department of Community and Economic Development approved savings plan continue to be excluded. |
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19. |
SEED ACCOUNTS |
All funds deposited into SEED accounts, including interest, are excluded as income and as a resource when determining eligibility. |
SEED accounts are accounts established for children born on or after January 1, 2006. |
An account is identified as a SEED account if: |
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It is a savings account held at a PfP (People for People) Credit Union. |
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It has restricted access (withdrawals may only be made with PFP’s permission). |
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It is intended to be used for post-secondary education, career-specific training, to start a small business or to purchase a home. |
If an excluded resource is kept in a separate account, the CAO will continue to exclude it for an unlimited period of time. |
7 CFR § |
EXAMPLE: A household receives an energy assistance payment of $300 and deposits the payment in a new savings account. The household has another savings account with a balance of $1,800. The household will continue to meet the resource limits as long as the excluded money is kept separate and the other account remains within the resource limits. |
If an excluded resource is combined with other countable resources, the CAO will not count the resource for six months from the date the funds are combined. After six months, the CAO will count the total amount of combined resources. |
EXAMPLE: A household receives a reimbursement payment of $1,500 from the Uniform Relocation Assistance and Real Property Acquisition Act. On 3/4/88, they deposit this payment in their savings account which already contained $1,100. The $1,500 is only excluded for six months. The household will become ineligible in 9/88 unless it has reduced its resources to within the resource limits. |
Reissued: January 15, 2008 replacing March 1, 2006