Current through all regulations passed and filed through September 16, 2024
(A) This rule describes the application of
the home replacement exclusion for purposes of determining eligibility for
medical assistance. When the home is being replaced due to loss or damage
resulting from a disaster, refer to rule 5160:1-3-05.14 of the Administrative
Code.
(B) Definitions.
(1) "Proceeds" mean the net payments received
by the seller after satisfaction of all encumbrances and sale expenses.
(2) "Sale expenses" mean all expenses that
must be paid by the seller in connection with the sale of the home, including
but not limited to broker fees, commissions, legal fees, mortgage-related fees
such as points paid by the seller, inspection and settlement fees, and transfer
and other accrued taxes paid by the seller.
(C) The home replacement exclusion allows an
individual to sell an excluded home that was the individual's principal place
of residence without having the proceeds of the sale count as
a
resource if used for the purchase of, and costs
incidental to occupying, another excluded home .
(1) This exclusion from
resources applies to the proceeds of the sale of the excluded home
when they
are used or obligated to purchase and occupy another excluded home by the
last day of the third full month following the month of receipt.
(2)
When the home is not replaced within this period,
the proceeds are to be counted as a
resource beginning with the month following the month they were received by the
individual.
(3) The exclusion does
not apply to interest earned on the proceeds of the sale.
(4) The administrative agency shall not
implement the exclusion until the statement described in paragraph (E) of this
rule is obtained.
(D)
The home replacement period begins on the date the proceeds of the sale are received by the
individual. The home replacement period ends on the last day of the third full
month following the month the proceeds are received.
(E)
When the individual states that the home is being
replaced, the administrative agency shall obtain a signed statement from the
individual containing the following required information:
(1) Date and amount of proceeds received from
the sale of the home; and
(2) The
individual's intent to replace the home with another home by a specific
date that is on or before the last day of the third full month
following the month of receipt of the proceeds; and
(3) An acknowledgement that any proceeds of
the sale not used for another excluded home by the date
identified in paragraph (E)(2) of this rule
are to
count in determining eligibility for medical assistance beginning on a
specific date that
is the first day of the first month following
receipt of the proceeds.
(4)
The
administrative agency will contact the individual to collect the information
needed. If the individual declares the verifications cannot be accessed or
submitted, the individual's statement is to be accepted.
(5)
If the
administrative agency is unable to make contact with the individual, a written
(electronic or paper) request for the necessary information or verification
documents is to be sent as set forth in rule
5160:1-2-01
of the Administrative Code.
(F) The administrative agency shall verify
the amount of the proceeds and the date they were received by obtaining a copy
of the settlement sheet or other documents prepared at settlement and received
by the individual from the sale.
(G) By the last day of the month in which the
home replacement period expires, the administrative agency shall contact the
individual to verify the
date and amount of any allowable costs or
deductions for the replacement home by obtaining written evidence (e.g.,
contracts, bills, receipts, settlement sheets) regarding the
substitute home.
(1) The administrative agency
shall charge any retained proceeds not used or contracted to be used toward the
replacement home before expiration of the replacement period as a resource
beginning with the month following the month of receipt.
(2)
When the individual
has not replaced the home as intended, all of the proceeds will
count as a resource beginning with the
month following the month of receipt.
