Ohio Administrative Code
Title 5160:1 - Eligibility
Chapter 5160:1-3 - Medicaid for the Aged, Blind, or Disabled (ABD)
Section 5160:1-3-05.5 - Medicaid: promissory notes, property agreements, and loans
Universal Citation: OH Admin Code 5160:1-3-05.5
Current through all regulations passed and filed through September 16, 2024
(A) This rule describes the treatment of promissory notes, property agreements, and loans for purposes of determining eligibility for medical assistance.
(B) Definitions.
(1)
"Promissory note" means a written, unconditional
promise signed by a person to pay a specified sum of money at a specified time,
or on demand, to the person, corporation, or institution named on the note. It
may be given in return for goods, money loaned, or services rendered. A
promissory note making periodic payments is not considered an
annuity.
(2)
"Property agreement" means a pledge or security of
particular property for the payment of a debt or the performance of some other
obligation within a specified period.
(a)
Property
agreements on real estate generally are referred to as mortgages but also may
be called real estate or land contracts, contracts for deed, deeds of trust,
etc.
(b)
Personal property agreements (e.g., pledges of crops,
fixtures, inventory, etc.) are commonly known as chattel
mortgages.
(C) Promissory notes or property agreements held by an individual.
(1)
A promissory note
or property agreement is an available resource.
(a)
The resource
value is its outstanding principal balance unless the individual furnishes
evidence that it has a lower cash value.
(b)
The property
itself is not a resource.
(2)
Payments received
by an individual toward the principal balance of a promissory note or property
agreement are not income. The interest portion of payments received is unearned
income to the individual.
(3)
A copy of the property agreement must be recorded with
the county auditor, county recorder, or other appropriate government agency
charged with the responsibility of recording property agreements.
(a)
For the purposes
of this rule, a property agreement is not considered effective until the date
it is recorded with the county auditor, county recorder, or other appropriate
government agency charged with the responsibility of recording property
agreements. The administrative agency shall disregard any property agreement
that is not properly recorded and shall consider the entire property as an
available resource to the individual.
(b)
For the purposes
of this rule, the property agreement recording date held by the appropriate
government agency is considered the date of transfer.
(4)
Documentation must be provided by the individual verifying
his or her proportionate share of the note or agreement if ownership of the
note or agreement is shared.
(5)
A promissory note
or property agreement has no value if the individual adequately documents the
obligations under the promissory note or property agreement were discharged by
order of a bankruptcy court.
(D) Loans held by an individual.
(1)
Money an individual borrows or money received as the
principal repayment of a bona fide loan is not considered income.
(a)
Any interest
received on money loaned is unearned income.
(b)
Retained proceeds
of a loan in the month following the month of receipt are counted as a
resource.
(2)
The value of the loan is the outstanding balance due as
of the individual's application date for medical assistance.
Replaces: 5160:1-3- 05.5
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