Real Property SR 94-04, 04/94 (FSM-A)

Real estate in the form of land or buildings. The treatment of real property varies depending on the type of property it is.

The various types of real property are listed below with the appropriate treatment:

• Burial Plots

Treatment: See Burial Plots.

• Home

Real property consisting of the house or mobile home and any land or buildings that are owned and occupied as the residence of the assistance group. However, in order for land to be considered as part of the home, it must be adjacent to the lot on which the house rests. The adjoining land will still be considered adjacent even when it is divided by a road or the boundary of a political subdivision.

A vehicle used as an assistance group’s home is treated as a home rather than a vehicle.

If the household does not already own a home, the value of a lot purchased to build a home is excluded. If the new home is partially completed, the value of it is also excluded.

Treatment: Excluded Resource

• Income-Producing Property

To be exempted, income-producing property may or may not be required to produce income consistent with its fair market value.

1.  Property which annually produces income consistent with its fair market value, even if only used on a seasonal basis.

Examples

- Rental homes used by households or excluded members for vacation purposes at some time during the year.

- Installment contracts for the sale of land or buildings. The value of the property is also excluded when it is sold under contract or held as security in exchange for a purchase price consistent with the fair market value.

To determine if property income is consistent with fair market value, contact local realtors, local tax assessors, or other similar sources to determine the prevailing rate of return for equivalent property.

2.  It is not required that property produce income consistent with its fair market value when that property is essential to the employment or the self-employment of a household member or excluded member.

For instance, a bad crop year does not affect the exemption of a farmland property as a resource, nor will a temporary vacancy in a rental house.

See also Farm Machinery, Livestock, Tools, and Equipment in part 411.

Treatment: Excluded Resource

• Jointly Owned Real Property

Real property which is owned jointly with a non-assistance group member.

Treatment: Counted Resource

Exceptions:

- If the household can demonstrate that it has access to only a portion of the resource, count only that portion of the resource.

- If the resource cannot be practically subdivided and the household’s access to the value of the resource is dependent on the agreement of the joint owner who refuses to surrender their share, consider the resource inaccessible.

• Unoccupied Real Property

The home temporarily unoccupied by all members of the assistance group due to temporary absence.

Treatment: Excluded Resource

The home permanently unoccupied by the assistance group or any other unoccupied real property that is not:

- income-producing;

- considered an inaccessible resource due to the terms of joint ownership.

Treatment: Counted Resource.

• Vacation Property

A home used part of the year that does not produce income consistent with its fair market value.

Treatment: Count the equity value.