SI 01140.100: Non-Home Real Property

changes
←	*	→

~~Effective Dates: 09/29/2017 - Present~~
Effective Dates: 04/17/2018 - Present
TN 34 (09-17)
SI 01140.100 Non-Home Real Property
A. Definition of non-home real property
Non-home real property (NHRP) consists of land and buildings or immovable objects (including some mobile homes) that are permanently attached to the land and do not meet the definition of a home as defined in SI 01130.100.
B. Policy for non-home real property
Unless otherwise excluded, count the current market value (CMV) of the NHRP (or the portion of it) that belongs to the claimant, recipient, or deemor as a resource (For instructions on establishing the CMV, see SI 01140.100G in this section). Absent evidence to the contrary, assume that a claimant, recipient, or deemor can sell the property at its estimated CMV. When the claimant, recipient, or deemor alleges an encumbrance against the NHRP, develop and count the equity value as a resource.
C. Non-home real property policy for full initial claims and high error profile C (HEP C) redeterminations in Supplemental Security Income (SSI) claim system
The agency now requires the verification of real property for all claimants, recipients, and deemors during full initial claims and HEP C redeterminations. We created an electronic verification process integrated in the SSI claim system (i.e. MSSICS/SSI claim) claims path to provide real property information on claimants, recipients, and deemors using a LexisNexis database. Do not use information obtained from LexisNexis to deny or suspend benefits. Only use the information from LexisNexis to establish a lead; we treat LexisNexis responses as a third-party report (see SI 02301.010C.3 for more information on third-party reports). Proceed with the verification process in this section after the claimant, recipient, or deemor answers the question(s) regarding ownership of property in the resource section of the SSI claim system.
SSA must review the LexisNexis information with the recipient or deemor prior to making a decision on the information obtained from LexisNexis. If the person concurs with LexisNexis information that makes them ineligible for SSI payments, accept the allegation, and no further verification is required.
Send a manual LexisNexis requests for reconsideration and appeal reversal claims until systems can automate this process.
EXCEPTION: This policy only pertains to full initial claims and HEP C redeterminations completed in the SSI claim system. Full initial claims and HEP C redeterminations completed outside of the SSI claim system (i.e. paper claims) are not subject to the rules in SI 01140.100C in this section.
NOTE: We only require NHRP requests for full initial claims to an allowance and HEP C Redeterminations, and manual LexisNexis requests for reconsideration and appeal reversal claims. However, you can create a request any time an event is open and the issue of NHRP is questionable.
1. Before you generate a real property request
a. Open Event
You must open an event on the associated claim before you create a NHRP request.
b. Obtain claimant, recipient or deemor’s allegation about NHRP
Collect and document a claimant, recipient or deemor’s allegation of NHRP ownership, or lack thereof, on the Real Property (REAL) page before generating a NHRP request. If the individual alleges NHRP ownership that makes them ineligible for SSI payments, due to excess resources, follow SI 01140.010D.2. Do not generate a real property request.
c. Provide privacy act notice
If you did not previously review the Privacy Act notice with the claimant, recipient, or deemor prior to this point in the interview per GN 03360.015 and SI 02305.071, before you generate a NHRP request, summarize the Privacy Act statement to inform individuals of their rights when collecting information from them as described in GN 03301.020B.3. Also, provide him or her with a copy of the Privacy Act statement, which is printed on the receipt at the end of the interview. For reference, the Privacy Act statement can be found on the SSA-8000 (Application for Supplemental Security Income (SSI) and the SSA-8202 (Statement for Determining Continuing Eligibility for Supplemental Security Income Payments).
d. Process prior requests first
The technician must a make a decision on any pending NHRP responses before initiating a new request.
2. When you need a NHRP request
Create a request for each claimant, recipient, and deemor associated with the claim if he or she has a relationship with the claimant for at least one month within the period you request NHRP information.
NOTE: Do not submit a request for all people associated with the claim at the same time unless each person provided answers to our NHRP ownership questions. Ensure each person answered the NHRP ownership questions themselves before generating a request for that individual.
D. Procedure to generate a NHRP request
The chart in this section provides the two alternative entry points to access the “Non-Home Real Property Requests” screen in the SSI claim system,
Step
Actions
1
From the SSI claim system SSI Menu page, enter the claimant or recipient’s Social Security number (SSN), and select 2 (Update) and 21 (Non Home Real Property).
Go to step 2;
or
From SSI Home webpage, select the Non Home Real Property link and enter the recipient’s SSN.
Go to step 2.
2
From the “Non-Home Real Property Requests” page, select the requested claimant or recipient and select the “Send Request” button.
The “Request Results” tables generate for each requested claimant or recipient and display “Request Status,” “Action Required,” and “Request ID” columns.
NOTE: The NHRP Application completes all requests in real time. You will receive a response within seconds.
Go to Step 3.
3
If the “Action Required” column shows “Property information to review,” proceed to the “Pending Real Properties” page. (For instructions to complete pending real properties, see chart in SI 01140.100E in this section).
E. Procedure to complete pending real properties
The chart in this section provides instructions to complete pending real properties in the SSI claim system.
Step
Actions
1
In the SSI claim system, (from the PERS screen) go to the Pending Real Properties (RLPN) page to display the properties if only one property is disclosed, and the “Pending Real Properties List” page will display if multiple properties are found for the requested individual. If there is no RLPN page, there are no properties pending to complete.
NOTE: There is only one RLPN screen displayed in the SSI claim system
Go to Step 2.
2
Select a pending property from the list. Go to Step 3.
3
The “Pending Real Properties” page displays. Select the following radio buttons to:
* Update existing property – Select this option to update a property address from the Pending page to the existing Real Property Page. If you select this option, go to step 4.
* Add new property – Select this option to add a new Real Property Page. If you select this option, go to step 4.
* Reject property – Select this option to reject the property. Once rejected, you cannot retrieve the property details. If you select this option, go to step 5.
* Decide Later – Select this option to decide on the property later. You will not be able to close the event until resolved. If you select this option, go to step 6.
4
~~“Update existing property” or “Add new property” option requires you to input or update:~~
“Update existing property” or “Add new property” option requires you to input or update:
* a description of the property/property usage;
* information in address fields, if incorrect or missing;
* if the property is or is not used to produce income;
* if the property is co-owned. If there is a co-owner(s) select “yes” and provide the co-owner’s name and period of co-ownership; and
* an alleged or verified value for the property and dates for each value.
After you complete these fields, proceed through the claims path.
5
~~“Reject property” option requires you to choose a “Reject reason.” List reject remarks, if necessary. The possible reject reasons are as follows:~~
“Reject property” option requires you to choose a “Reject reason.” List reject remarks, if necessary. The possible reject reasons are as follows:
* Duplicate address (select this if the property is already documented in the claims path);
* Current primary residence (select this is the property qualifies for the Home Exclusion, see SI 01130.100 for more information);
* They do not own the property
* Other – if “Other” is selected, input an “Other reason” in the generated field; and
NOTE: A “Prior Rejections” field displays when the address of the property on the “Pending Real Properties” page exactly matches a property that we previously rejected for the associated SSN. After you complete these fields, proceed through the claims path.
6
~~The “Decide later” option requires no further action to proceed through the claims path.~~
The “Decide later” option requires no further action to proceed through the claims path.
NOTE: You must complete all mandatory fields before proceeding.
F. Procedure to document NHRP ownership
Follow the steps in this section to document NHRP ownership in the SSI claim system.
1. Sole ownership
Absent evidence to the contrary, accept a claimant, recipient, or deemor’s allegation of sole ownership of property.
2. Shared ownership
Document an allegation of shared ownership with any of the following evidence:
* a tax assessment notice or bill;
* a current mortgage statement;
* a deed;
* a report of title search; or
* a will, court record, or other documentation of inheritance.
If the claimant, recipient, or deemor alleges owning anything other than an equal share of the property (e.g., alleges having a 25 percent ownership interest where there are only two owners), the evidence must support the specific ownership level alleged.
G. Procedure to establish the Current Market Value (CMV)
This section provides instructions to establish the CMV of the property.
1. When to use the claimant, recipient, or deemor’s allegation to establish the CMV
Accept the claimant, recipient, or deemor’s allegation of the property's value if:
* countable resources, including the real property, exceed the resource limit; and
* the claimant, recipient, or deemor does not allege any debts against the property that reduces countable resources to within the limit.
2. When to use a knowledgeable source estimate to establish the CMV
If you cannot use the claimant, recipient, or deemor’s allegation to establish CMV, and no other evidence is available, request that the claimant, recipient, or deemor obtain an estimate of the property's CMV from a knowledgeable source.
NOTE: We can only use the alleged value information from LexisNexis to establish a lead. Do not use the LexisNexis database information to determine CMV unless the claimant, recipient, or deemor concurs with the allegation and it makes them ineligible for SSI payments.
a. What the estimate must show
The estimate must show:
* the estimated value;
* the name of the person providing the estimate;
* the name, address, and telephone number of the business or agency for whom the person providing the estimate works;
* the basis for the estimate, to include things such as a description of the property and its condition and, where appropriate, the value of similar property in the same area; and
* the period to which the estimate applies (which should correspond to the period for which the claimant, recipient, or deemor requested the estimate).
b. Knowledgeable sources
Knowledgeable sources include but are not limited to:
* real estate brokers;
* the local office of the Farmer's Home Administration (for rural land);
* the local office of the Agricultural Stabilization and Conservation Service (for rural land);
* banks, savings and loan associations, mortgage companies, and similar lending institutions;
* an official of the local property tax jurisdiction (be sure to obtain the official’s estimate rather than the office's assessment); and
* the County Agricultural Extension Service.
c. Assisting the claimant, recipient, or deemor
Provide assistance if the claimant, recipient, or deemor cannot obtain an estimate. If you obtain an estimate by phone, be sure to record all pertinent facts per the instructions in SI 01140.100G.2.a in this section.
If you cannot obtain an estimate by phone, mail form SSA-L2794 (Real Property Current Market Value) to a knowledgeable source for an estimate.
d. Obtaining more than one estimate
If you doubt the validity of an estimate furnished by the claimant, recipient, or deemor, obtain an estimate from an additional knowledgeable source. To resolve any conflicts in evidence, follow procedures in GN 00301.040.
3. CMV rebuttals
Prepare a rebuttal determination if the claimant, recipient, or deemor disagrees with CMV evidence that he or she submits or that you obtain, and the difference is material to eligibility.
* The determination must take into account:
* all the evidence previously in file (the claimant, recipient, or deemor’s original allegation and any estimates from knowledgeable sources);
* any additional evidence the claimant, recipient, or deemor submits, including evidence that the claimant, recipient, or deemor’s ownership interest in the property is worth less than the total value of the property divided by the number of owners; and
* all other facts the field office has about the property or about market conditions where the property is located.
* The rebuttal determination must:
* be supported by a preponderance of the evidence (which may require one or more additional estimates from knowledgeable sources); and
* must cover the entire period for which the value of the property is material to eligibility.
H. Procedure for developing the equity value
Follow the instructions in the section to develop the equity value of the property.
1. When to develop the equity value
Develop the equity value of the NHRP when the claimant, recipient, or deemor alleges a debt against the property and the difference between equity and CMV could mean the difference between eligibility and ineligibility. For more information on equity value, see SI 01140.042.
2. Evidence of an encumbrance on the property
* The claimant, recipient, or deemor must support an allegation of an encumbrance on the property (any legal debt, such as a mortgage, lien, loan, purchase contract, security interest, etc.) with evidence of:
* the original amount owed;
* the outstanding principal balance; and
* the schedule and amount of payments due on the principal balance.
(For a definition of encumbrance, see SI 01110.400A.1.c.)
* Obtain all necessary release forms. (SSA-8510 (Authorization for the Social Security Administration to Obtain Personal Information), SSA-4641-U2 (Authorization for the Social Security Administration to Obtain Account Records from a Financial Institution), etc.)
* Request that the claimant, recipient, or deemor submit a copy of the note or agreement establishing the encumbrance.
* Verify with the creditor (by phone, if possible) required information that the note or agreement does not show (normally, this is the outstanding principal balance).
3. Systems input
* For input to the Case Characteristics Codes (CG) field of code RE99 or RE60, as applicable via the SSI claim system input on the Miscellaneous Data (CMSC) screen, follow the instructions in SM 01005.525.
For an explanation of the RE99 and RE60 codes, see SM 01301.820.
* Scheduled payments on the property’s mortgage will increase the equity value of the property over time. A rise in the equity value of the property may cause the claimant, recipient, or deemor’s resources to exceed the SSI limit before the next scheduled redetermination. If this occurs, establish an RT diary (for the SSI claim system input, see MS BUSSR 002.019).
* Scheduled payments on the property’s mortgage will increase the equity value of the property over time. A rise in the equity value of the property may cause the claimant, recipient, or deemor’s resources to exceed the SSI limit before the next scheduled redetermination. If this occurs, establish an RT diary (for the SSI claim system input, see MS BUSSR 002.019).
When the diary matures, review the equity value and delete the diary (for batch input, see SM 01301.220 and MS BUSSR 002.019 for the SSI claim system input).
You do not need a redetermination of all factors of eligibility.
I. Procedure for property in the Northern Mariana Islands
For property in the Northern Mariana Islands, use an SSA-562-U3 (Request for Assistance Certification) to ask the Resident Representative in Saipan to obtain evidence that we cannot obtain locally (see GN 00904.080).
For information that the request should contain, see SI 01140.100J in this section.
J. Procedure for foreign property
Determine the CMV and equity value for foreign property applying the same rules as domestic property.
NOTE: Do not use LexisNexis to check foreign property, which includes Puerto Rico properties.
1. Obtaining evidence of ownership, CMV, or equity value for foreign property
If needed, request evidence from the claimant, recipient, or deemor of ownership, CMV, or equity value for the foreign property.
a. When the necessary documents are not readily available
If a claimant, recipient, or deemor does not have the documents necessary to support a determination of ownership and CMV or equity value, he or she may be able to write for them directly or with the aid of a local organization.
b. Assisting the claimant, recipient, or deemor
If the claimant, recipient, or deemor is unable to obtain the necessary documents, we must provide assistance. Request the Foreign Service Post to develop through the Office of Earnings and International Operations (OEIO). Submit your request to mailbox ||OCO OEIO INTERNATIONAL. Include an SSA-8510 with your request along with the following information:
* a detailed description of the property, its location, and any other background information the claimant, recipient, or deemor can provide;
* the specific information needed; e.g., CMV, the details of any restrictions on removing the proceeds of a sale from the country, etc.; and
* the source(s) of the necessary documents or information, to the extent known.
2. CMV estimate in foreign currency
If the CMV estimate is in foreign currency, use the Currency Converter or contact a local bank for the current exchange rate. Apply the current rate retroactively and prospectively unless the claimant, recipient, or deemor provides reliable evidence of a different rate.
3. Foreign property with legal bars
Follow the instructions in this section for foreign properties with legal bars.
a. Legal bars
Do not develop for CMV if there is evidence of a legal bar to the sale of property or removing the full proceeds of a sale from the country. If the claimant, recipient, or deemor alleges such a bar, attempt to verify it by phone with an acceptable source of information before you develop per SI 01140.100J.1 in this section.
Document the information you obtain on an SSA-5002 (Report of Contact).
b. Acceptable sources of information
To verify an allegation of a legal bar, contact one of these acceptable sources of information: a consulate, mission, or embassy of the country, or the United States (U.S.) Department of State.
The number for the General Information Desk at U.S. Department of State is (202) 647-4000. Each country has an office at the Department of State. You can find the appropriate office using the telephone directory at the U.S. Department of State’s website: https://www.state.gov/m/a/gps/directory/index.htm.
Contact your regional office if you need help.
4. Effect of partial restrictions
a. Legal restriction on the amount that a claimant, recipient, or deemor can remove from the country
If a legal restriction limits the amount a claimant, recipient, or deemor can remove from the country, that limit is the maximum value the property can have as a resource.
b. Legal restriction affects when a claimant, recipient, or deemor can remove proceeds of a sale from the country
If a legal restriction affects when the claimant, recipient, or deemor can remove the proceeds of a sale from the country (e.g., once a year), such proceeds are income when the proceeds can be removed, and are not resources before then.
c. Property already sold and the claimant, recipient, or deemor can remove a portion of the proceeds from the country
If the claimant, recipient, or deemor already sold property and can remove a portion of the proceeds before the next scheduled redetermination:
* input the appropriate amount as unearned income for the expected month of receipt; and
* if the amount the claimant, recipient, or deemor will receive is likely to affect eligibility based on resources for the month after receipt, set a diary for the month after receipt to make a resource determination.
K. References
* SI 00830.105 Payments in Foreign Currency
* SI 01130.100 The Home Exclusion
* SI 01130.130 Real Property Whose Sale Would Cause Undue Hardship, Due to Loss of Housing, to a Co-Owner
* SI 01130.140 Real Property Following Reasonable but Unsuccessful Efforts to Sell It Throughout a 9-Month Period of Conditional Benefits
* SI 01130.500 Property Essential to Self-Support- Overview
* SI 01150.003 Summary of Procedures for Processing Resource Transfers
* SI 01150.200 Conditional Benefits
* SM 01005.525 Case Related Data
* SM 01301.820 Case Characteristics Codes

POMS Reference

SI 01140.100: Non-Home Real Property