Mississippi Administrative Code
Title 23 - Division of Medicaid
Part 103 - Resources
Chapter 3 - Non-Countable Resources
Rule 23-103-3.7 - Real Property Exclusions
Universal Citation: MS Code of Rules 23-103-3.7
Current through September 24, 2024
A. Home Property Exclusion.
1. An individual's home is property
he has ownership interest in and is his principal place of residence;
and
2. It may include the shelter
he lives in, the land on which the shelter is located, and all buildings on the
land.
a) A principal place of residence is the
dwelling that an individual considers his/her principal home. It may be:
1) Real or personal property;
2) Fixed or mobile;
3) Located on land or water.
b) Example: If a person owns and
resides in a houseboat on a lake, the boat may qualify as home
property.
3. If a person
owns land and intends to reside on it, it may be considered home property if
there is no other principal place of residence. If a person owns the land, but
not the shelter, the land is considered the residence.
a) Example: A person owns the land he lives
on, but lives in a mobile home owned by his parents. If a person owns the
shelter, but not the land, the shelter is the residence.
b) Example: A person owns the mobile home,
but rents the lot on which it is located.
4. Applying the home exclusion.
a) The home exclusion applies to:
1) The shelter in which the individual
lives;
2) All buildings on the
property;
3) The land on which the
shelter is located; and
4) Any land
adjoining it as long as it is not separated by land that neither the individual
nor spouse has an ownership interest in.
(a)
Easements and public rights of way (utility lines, roads, etc) do not separate
other land from the home plot.
5. Home Out-Of-State.
a) If an applicant's home property is located
out-of-state, policy governing state residency applies.
b) It is not permissible for the individual
to intend to return to his principal place of residence out-of-state and at the
same time intend to reside in Mississippi.
c) If the applicant intends to return home to
another state, he cannot be considered a Mississippi resident for Medicaid
eligibility purposes.
d)If the
applicant intends to reside in Mississippi, home out-of-state cannot be
excluded as his principal place of residence.
6. Treatment of Home Property Under SSI
Resource Policy.
a) An individual's home,
regardless of value, is an excluded resource if the individual:
1) Resides in the home; or
2) Is absent and intends to return to the
home.
(a) An individual is residing with her
children due to an illness, but intends to go home when health permits The
intent is based on the person's desire to return home.
(b) If the individual leaves the home and
does not intend to return home to it, it is no longer considered the person's
principal place of residence.
(i) The home
exclusion no longer applies as of the date the individual leaves with the
intent not to return or the date the individual no longer intends to
return.
(ii) The month after there
is no intent to return, the property will be considered a countable resource
unless another exclusion develops.
b) A home can be excluded without intent to
return, if:
1) A spouse or dependent relative
of an institutionalized individual continues to reside in the home while the
individual is institutionalized;
(a)
Dependency may be financial or medical;
(b) Relatives may include child, step-child,
grandchild, parent, step-parent, grandparent, sibling, step-sibling, half
sibling, aunt, uncle, cousin niece, nephew, in-laws;
2) Sale of the home would cause an undue
hardship to a co-owner due to loss of housing.
(a) Obtain a statement from the dependent
relative or the co-owner to apply either of the above exclusions.
c) Multiple Residences.
1) Only one residence can be excluded as home
property.
2) If there are multiple
residences, the principal place of residence must be determined, considering
such points as how much time is spent at each residence; where the individual
is registered to vote; and which address the individual uses for mail and tax
purposes.
7.
Treatment of Home Property Under Liberalized Resource Policy.
a) Home property can be excluded regardless
of intent to return home or whether a dependent relative lives on the
property.
b) Each client is allowed
one home that can be excluded regardless of its use.
c) If more than one residence is owned,
exclude the property that would be most advantageous to the client.
d) For long term care applications filed on
or after January 1, 2006, there is a disqualification for individuals with
equity interest in their home of greater than $500,000. This provision will not
prevent an individual from using a reverse mortgage or home equity loan to
reduce the total equity interest in the home.
1) This disqualification period means that
the homeowner who is in long term care can qualify for all Medicaid services
except vendor payment of nursing facility services as long as equity interest
exceeds the $50,000. limit.
2) If
Medicaid eligibility is dependent upon participation in the HCBS waiver, the
individual is ineligible for full Medicaid services as long as equity in the
home exceeds the limit; however, a Medicare Savings Program can be approved if
criteria are met.
3) Undue hardship
can be found to exist if a lien or legal impediment exists causing the
individual to be unable to access the equity.
8. Reverse Mortgages.
a) A reverse mortgage is an agreement in
which a lending company:
1) Makes a lump sum
(subject to being counted as a resource the month following month of
receipt);
2) Available line of
credit (subject to being counted as a resource the month following month of
receipt; or
3) Regular payments
(treated as loan proceeds) to a homeowner during a specific period of
time.
b) The amount of
payment is determined by the amount of equity the homeowner has in the
home.
c) The homeowner is allowed
to remain in the home until his/her death. At that time, the home is sold
and/or the lender is repaid.
d)
Reverse mortgages are available to homeowners age 62 or older who own a
debt-free or nearly debt-free home.
e) Funds received from a reverse mortgage in
any form that are transferred, either in the month of receipt or subsequent
months, are subject to a transfer penalty unless an allowable exception applies
(such as spousal transfers).
B. Exclusion of Home Replacement Funds.
1. If an individual sells an excluded home,
the proceeds may be an excluded resource if he:
a) Plans to buy another excluded home;
and
b) Buys the home within 3 full
calendar months following the month the proceeds are received.
C. Exclusion of Installment Sales Contracts.
1. If the
proceeds from the sale of an excluded home are received under an installment
sales contract, the contract is excluded if the individual:
a) Plans to use the entire down payment and
the entire principal portion of a given installment payment to buy another
excluded home; and
b) Purchases the
new home within 3 full calendar months following the month the down payment or
installment payment is received.
2. The proceeds of the sale include the
following:
a) Lump sum. The net amount the
seller receives at closing/settlement;
b) Installments. Down payment and principal
portion of any installment payment.
3. Use of Proceeds. Use of the proceeds to
buy another excluded home includes payment of any costs that stem from the
purchase. These include, but are not limited to:
a) Down payment;
b) Closing/settlement costs;
c) Moving expenses;
d) Loan processing fees and points;
e) Necessary repairs and replacement of the
new homes structures and fixtures costs, if identified and documented before
the new home is occupied and stem directly from the purchase or occupancy of
the new home.
1) This may include: roof,
heating and cooling, plumbing, built-in appliances, etc.
f) Mortgage payments;
g) Use of proceeds to pay other costs will
warrant their exclusion if such costs are identified and documented prior to
occupancy and stem directly from the purchase or occupancy of the new
home.
4. Proceeds Not
Re-Invested in a Timely Manner.
a) If the home
is not replaced within the allowable 3-month period, the unused proceeds are a
countable resource retroactive to the month following the month of receipt as
follows:
1) Lump sum. The exclusion of the
unused funds is revoked retroactively to the date of receipt;
2) Installment contract. The exclusion of the
contract itself and the unused portion of any installments received are revoked
retroactively to the date the unused proceeds were received.
3) The exclusion of an installment contract,
once revoked, will be reinstated if the individual intends to and does use the
entire principal portion of a subsequent installment payment toward the
purchase of another excluded home within 3 full calendar months of receiving
such installment payment.
(a) The exclusion
does not apply to that portion of the proceed of the sale of the original home
that is in excess of the costs of the purchase and occupancy of the new
home.
5. Exclusion of Jointly Owned Property Whose
Sale Would Cause Undue Hardship.
a) The value
of an individual's ownership interest in the jointly-owned property is an
excluded resource for as long as the sale of the property would cause an undue
hardship, due to loss of housing, to a co-owner.
b) Undue hardship would result if the
co-owner:
1) Uses the property as his
principal place of residence;
2)
Would have to move if the property were sold;
3) Has no other readily available
housing.
c) The
exclusion ends when any one of the above conditions no longer exists.
1) Example: Mr. Allen and his son jointly own
a piece of land. The son and his family live on the property and have no other
place to live. Mr. Allen applies for Medicaid. The property is excluded because
the sale would cause an undue hardship to his son. However, if the son owned
another house nearby which was vacant and habitable, there would be other
available housing. Under these circumstances, undue hardship would not exist
and the value of Mr. Allens interest would be countable.
E. Exclusion of Real Property Due to Reasonable Efforts to Sell.
1.
Real property may be excluded from resources if the owner is making reasonable
efforts to sell it and those efforts have been unsuccessful.
2. The individual must maintain their efforts
to sell unless good cause, i.e., circumstances beyond the individual's control
prevent his taking the required actions to accomplish reasonable efforts to
sell, exists.
3. In addition, the
individual must accept a reasonable offer for the property. The specific
requirements listed below must be met in order for this exclusion to apply:
a) Reasonable Efforts To Sell.
1) Reasonable efforts to sell real property
consist of taking all necessary steps to sell it through media serving the
geographic area in which the property is located.
2) Reasonable efforts specifically mean that
within 30 days of signing the Agreement to Sell Property, the owner(s) must:
(a) List the property with an agent;
or
(b) Begin to advertise in at
least one of the appropriate local media, place a "For Sale" signs on the
property (if permitted),
(c) Begin
to conduct open houses or otherwise show the property to interested parties on
a continuing basis and attempt any other appropriate methods of sale;
and
(d) Except for gaps of no more
than 1 week, the owner must maintain efforts the type listed above;
and
(e) The owner does not reject
any reasonable offer to buy the property and accepts the burden of
demonstrating to Medicaids satisfaction that an offer was rejected because it
was not reasonable.
b) Reasonable Offer To Buy.
1) Assume that an offer to buy the property
at a particular price is reasonable if it is at least two-thirds of the
estimated current market value (CMV), as evidenced by the tax receipt. If the
owner disagrees with CMV as evidenced by the tax receipt, he must provide
convincing evidence of a different CMV. Verification presented by the owner to
support a CMV other than that evidenced by the tax receipt must be submitted to
state office for review.
c) Good Cause.
1) Good cause exists when circumstances
beyond an individuals control prevents the required action to accomplish
reasonable efforts to sell. If good cause exists for failure to meet any of the
criteria specified above, the exclusion can continue provided action is taken
to resume efforts to sell.
2) Good
cause includes:
(a) No offer to buy is
received;
(b) A legitimate offer
does not result in a sale;
(c)
Escrow begins, but closing does not take place within the disposal period; and
(a) Incapacitating illness or injury, such as
the individual becomes homebound or hospitalized for a prolonged period due to
illness or injury and cannot take steps necessary to sell the property or to
arrange for someone to sell it on his behalf.
(b) Eample: Sandy Patterson is a Medicaid
recipient whose property has been excluded due to a bona fide effort to sell.
She accepted a reasonable offer for the property; however, the buyer backed out
of the deal at closing. Ms. Patterson immediately started sales efforts again.
Good cause exists.
d) Failure To Make Reasonable Efforts.
1) Unless there is good cause, failure to
meet any of the criteria specified above means that:
(a) An individual is not making reasonable
efforts to sell the property and is not accepting a reasonable offer to
buy;
(b) The individuals countable
resources include the value of the property beginning with the month following
the month in which reasonable efforts to sell stop or the month following the
month the owner failed to accept a reasonable offer to buy; and
(c) The individual will be charged with an
improper payment, if applicable.
e) Initial Verification of Efforts To Sell.
1) The effort to sell must be documented in
the case record within the 30-day time period for applying the exclusion by
requiring all proof such as:
(a) Copy of the
listing agreement with the real estate agent in current use;
(b) Dated advertisement(s) indicating the
property is for sale;
(c) Contracts
with local media to advertise the property;
(d) A photograph of the "For Sale" sign on
the property, in conjunction with other efforts; or
(e) Any other relevant items.
f) Effective Date of
Exclusion.
1) If the appropriate proof is
submitted, the exclusion is applied back to the first of the month in which the
effort to sell as initiated.
2) If
a reasonable effort to sell was in existence prior to the date of application,
the exclusion can be applied retroactively provided the effort is documented
and DOM-320A is signed.
3) If the
effort to sell is just beginning, the exclusion applies effective with the
first month DOM-320A is signed (provided it is signed within 30 days). If not
signed within 30 days, the exclusion applies as of the first month a reasonable
effort to sell is initiated.
g) Follow-Up Contacts.
1) Contacts must be scheduled at 90-day
intervals until the property is sold or the exclusion ends.
2) Follow-up contacts may be by telephone to
determine efforts being made to accomplish the sale and to document whether
there has been any offer to buy since the prior contact.
3) If an offer to buy has been refused, a
statement must be submitted explaining the refusal.
4) The refusal of an offer to buy must be
evaluated under the "Reasonable Offer to Buy" guidelines. If the refusal is
unacceptable, the exclusion ends beginning with or retroactive to the month
after the month of the refusal to sell.
5) If the reasonable efforts to sell are not
continuing at each follow-up contact, determine if good cause exists. If good
cause does not exist, the exclusion ends beginning with or retroactive to the
month after the month the reasonable efforts stopped.
Social Security Act §1902 (r) (2); 42 CFR §435.601(b) (Rev 1994).
Disclaimer: These regulations may not be the most recent version. Mississippi may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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