Vehicles SR 00-23 Dated 06/00 (FAM-A)

Automobiles and other motorized vehicles such as trucks, motorboats, snowmobiles, and motorcycles. See Part 411, FARM MACHINERY, LIVESTOCK, TOOLS, AND EQUIPMENT, for treatment of farm vehicles.

Determining Ownership

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• If the vehicle’s title has "and" linking an assistance group member with a nonmember as co-owners, do not count the equity value.

• If the title has "or" linking a group and a nongroup member, see Jointly Owned Resources above.

Determining the Vehicle Value

Count or exclude the value of vehicles according to policy below.

Fair market value is the "trade-in value" as specified in the most recent edition of the National Automobile Dealers Association (N.A.D.A.) Official Used Car Guide, also known as the "Blue Book":

• fair market value is not increased because of special equipment for the handicapped, low mileage, or optional equipment;

• if the client states that the fair market value in the Blue Book does not apply, for instance, because of body damage, the client must present verification of the true fair market value of the vehicle from an auto dealer or an individual who is engaged in a vehicle sales or service business; and

• if a vehicle is custom made, too old, or too new to be listed in the Blue Book, the client must verify its fair market value by:

- obtaining an appraisal from an automobile dealer or an individual who is engaged in a vehicle sales or service business;

- submitting a tax assessment on the vehicle indicating its value; or

- submitting a newspaper advertisement which indicates the amount for which like vehicles are being sold.

Equity Value is defined as the fair market value of the vehicle, minus any encumbrances. Determine the equity value by subtracting any encumbrances, such as the principal owed on a loan, from the fair market value. Use any documentation that reasonably establishes the amount of equity owned by the client.

Types and Treatment of Vehicles

• Household Vehicle(s)

Treatment: Exclude 1 vehicle per adult household member for NHEP or FAP financial assistance, NHEP or FAP categorically or medically needy medical assistance, and Extended Medical Assistance households. Allow 1 vehicle each for any adult household member disqualified or excluded from the NHEP or FAP assistance group.

• Junk Vehicles

Junk vehicles are:

- vehicles used only to supply parts for the individual’s main vehicle;

- vehicles that are too dilapidated to be reasonably repaired for sale or use; or

- vehicles which can be sold only for scrap or parts.

Treatment: Exclude the value.

• All Other Household Vehicles

Treatment: Count the equity value of all other non-junk vehicles, registered or unregistered, owned by a household member.