VEHICLES (FSM) |
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Automobiles and other motorized vehicles such as trucks, motorboats, snowmobiles, and motorcycles. PART 411, Farm Machinery, Livestock, Tools, and Equipment, addresses farm vehicles.
DETERMINING OWNERSHIP
Inspect the vehicle’s title:
• If the title has "and" linking an assistance group member with a nonmember as co-owners, exclude the vehicle’s value when all the following conditions are met:
- the nonmember does not live in the household;
- the household member does not have possession or use of the vehicle; and
- the household member cannot sell the vehicle due to the co-owner’s refusal to provide the required signature necessary for sale.
• If the title has "or" linking a group and a nongroup member, see Jointly Owned Resources.
DETERMINING THE VEHICLE VALUE
Count or exclude the value of vehicles owned by assistance group members according to policy below.
Fair market value is defined as the "trade-in value" as specified in 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 because of, for instance, 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.
* Refer to the headings below for treatment of vehicles owned by household members.
EXCLUDED VEHICLES
*
Income-Producing Vehicles
An income-producing vehicle must meet at least one of the criteria below:
• 50% of the vehicle’s use is for income-producing purposes;
• the vehicle annually produces income consistent with its fair market value, even if only used seasonally; or
• the vehicle is necessary for long distance travel, not daily commuting, which is essential to the employment of a household member or excluded member, such as a traveling salesperson.
Vehicles Used as the Household’s Home
Leased Vehicles
Exclude vehicles for which there is a signed lease agreement with a leasing agent and the leasing agent retains the title to the vehicle for the duration of the lease agreement.
Exception: If the household member has the option to purchase the vehicle at the end of the lease agreement and exercises this option, treat the value of vehicle at the time of purchase according to the appropriate policy for vehicles owned by household members.
Vehicles for the Physically Disabled
Vehicles used to transport a physically disabled household member are excluded when certain conditions are met. If the physical disability is not self-evident, require verification.
There are 2 components to the vehicle exclusion: the individual’s disability, and the vehicle’s use.
Disability Criteria
• Disability is determined using work registration criteria (see Part 809 ) or based on receipt of state, federal, or local government disability payments (see Section 229.03 ).
• The disability can be temporary or permanent and need not render the individual unfit for work.
Vehicle’s Use
• The vehicle is designated by the case head and must meet the specific needs of the disabled individual. The case head may designate such a vehicle for each disabled member or excluded member; and
• The vehicle is used to transport a physically disabled household member or excluded member. However, the vehicle need not be used primarily for the disabled individual, nor be registered in their name.
Vehicles Needed to Carry Fuel or Water
A vehicle necessary to carry the primary source of fuel for heating or water for household use if it is anticipated that the transported fuel or water will be the household’s primary source during the certification period.
Exception: This exclusion must not be given because of a temporary interruption of other utilities such as for nonpayment of heat or water bills.
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.
Vehicles That Are Considered Inaccessible Resources
Vehicles are considered to be an inaccessible resource when they cannot be sold for significant return as defined in Part 407, TREATMENT OF RESOURCES.
Vehicles on Indian Reservations
Certain Indian reservations do not require registration of vehicles used only on the reservation.
Treatment: Count or exclude based on use, regardless of registration status.
1 Vehicle Per Adult Household Member
Exclude 1 vehicle per adult household member, including 1 vehicle per adult household member disqualified or excluded from the assistance group, regardless of use or value. Vehicles belonging to dependent children in the household may be excluded so long as the total number of vehicles excluded does not exceed the number of adult household members.
COUNTED VEHICLES
Registered Vehicles Not Otherwise Excluded Above*
Count the value of one licensed vehicle per adult household member and any licensed vehicle a minor drives to work, school, training, or to look for work,* as follows:
1. Determine the vehicle’s fair market value in excess of $4,650.
2. Compute the vehicle’s equity value.
3. Count the fair market value in excess of $4650, or the equity value, whichever is lower.
Example
A household has an extra car a minor uses to drive to work.*
1. The fair market value is $5,000. To date the household has paid $1,000 in principal on the car.
2. The fair market value of the vehicle in excess of $4,650 is $350.
3. The vehicle’s equity value is $1,000.
4. Count the $350 fair market value in excess of $4,650 towards the household’s resources because it is lower than the $1,000 equity value.*
Remaining Registered and Unregistered Vehicles
Count the equity value towards the household’s resource limit.
*
Property for Maintenance of Income-Producing Vehicle or Vehicle for the Disabled
Property directly related to the use or maintenance of an income-producing vehicle or a vehicle used to transport a physically disabled individual.
Treatment: Excluded Resource
Example
A truck driver requires a separate piece of property big enough to park his 18 wheeler truck. Only that portion of his property directly related to the maintenance and use of the truck is exempt as a resource.
References: He-W 741.01(a)-(d); RSA 161:2, XIII; RSA 161:4-a, IV; RSA 167:4, I(a); RSA 167:7, IV; 7 CFR 273.8(c)(2), (e)(3), (e)(16), (e)(18)-(19), and (f)(2); 7 USC 2014(g)(2)(B)(iv), (2)(C)-(D), and (6)(A)