SI 01130: Resources Exclusions

Effective Dates: 07/18/2012 - Present

TN 35 (04-95)

A. Policy Principles

1. Exclusion

Real property that an individual has made reasonable but unsuccessful efforts to sell throughout a 9-month period of conditional benefits will continue to be excluded for as long as:

the individual continues to make reasonable efforts to sell it; and
including the property as a countable resource would result in a determination of excess resources.

2. Distinction Between This And The Conditional Benefits Exclusion

If the property is later sold, benefits paid during the 9-month conditional benefits period are subject to recovery as overpayments. Benefits paid as a result of this exclusion are not subject to recovery as overpayments of conditional benefits.

3. Resumption Of The Exclusion After A Period Of Suspended Payments

If payments are suspended for reasons unrelated to this exclusion and are later reinstated, the exclusion will resume upon such reinstatement if the individual resumes making reasonable efforts to sell the property within one week of such reinstatement.

4. No Resumption Of The Exclusion After Termination Of Eligibility

If eligibility is terminated for any reason, this exclusion will not resume upon a new application for benefits. Before the property can again be excluded under this provision, the individual must make reasonable but unsuccessful efforts to sell it throughout a new 9-month period of conditional benefits.

B. Development and Documentation

1. Explanation of Exclusion

When an individual has made reasonable but unsuccessful efforts to sell property throughout a 9-month period of conditional benefits, explain that:

we will continue to exclude the property for as long as reasonable efforts to sell it continue and counting it would cause resources to exceed the SSI limit;
we will continue to make periodic follow-up contacts and to request evidence of ongoing reasonable efforts to sell; and
the individual is still responsible for informing SSA promptly of any offers to buy, and for showing that any offer refused was not reasonable.

2. Frequency Of Follow-Up Contacts

a. General

Contact the owner (by phone, if possible) at 3-month intervals following the end of the conditional benefits period.

b. Exception

Contact may be at 6-month intervals if:

the individual does not have a spouse and equity in the property is $2,000 or less; or
the individual has a spouse and equity in the property is $3,000 or less.

This exception recognizes that an individual may have spent down other resources and become eligible without benefit of the exclusion.

3. Follow-Up Contact Procedures

Conduct the follow-up contacts in accordance with the instructions in SI 01150.205.

4. Determination

Evaluate reasonable efforts to sell and document the file in accordance with the instructions in SI 01150.205.

C. Related Policy

See the conditional benefits instructions in SI 01150.201 for what constitutes reasonable efforts to sell and good cause for not making such efforts.

D. Procedure — Manual Notices

1. When To Issue

Issue a manual notice whenever:

the exclusion will apply at the end of a conditional benefits period; or
the exclusion will end due to lack of continued reasonable efforts to sell.

2. How To Issue

Suppress the systems-generated notice per SM 01301.675.
See NL 00801.010 E. on sending manual notices and NL 00804.100 ff. for appropriate standard paragraphs.
Using an SSA-8166-U2 to notify the individual of the exclusion, include the language provided in E.1. below.
Using an SSA-L8155-U2 to notify the individual that the exclusion is being terminated, include the language provided in E.2. below.

NOTE: If the individual is blind or visually impaired, see instructions at NL 01001.010 for more information on the special blind or visually impaired notice options.

E. Exhibits — Notice Language

1. Excess Resources — End Of 9-Month Period, Efforts Are Reasonable But Unsuccessful

1 received Supplemental Security Income (SSI) payments for 9 months because you signed an agreement to sell 3 . The agreement ended with your SSI payment for 4 .

Although 2 have not sold the property, we find that you are continuing to try to sell it. As a result, we are not including 3 as your resource now. 1 can continue to receive SSI payments if 2 keep trying to sell the property. We will be in touch with you from time to time to find out how you are doing in your efforts to sell the property.

When the property is sold, we will take into account the amount of money you received from the sale and let you know how much you will have to repay. The most you will have to repay when the property is sold is the amount of the SSI payments you received from 5 through 4 .

If 2 stop trying to sell the property, we will have to consider whether it is a resource at that time.

Fill-Ins

a. You

b. You and your husband

c. You and your wife
a. you

b. you and the names of any deemors on the record
description of property, for example, the house at 46 Oak Avenue
month/year (9th month of payment)
month/year (payment started)

2. Denial/Suspension—Lack of Reasonable Efforts to Sell and Lack of Good Cause

1 Supplemental Security Income (SSI) payments 2 agreed to sell 3 . Because you 4 trying to sell the property, we must now count this property, which is valued at 5 , with your other resources.

This puts your resources over the 6 SSI limit. 7

Information About Your Resources

For 8 to receive SSI payments, your resources cannot be worth more than 6 in 9 . We call this amount the limit on your resources.

Resources are things that 2 own. Resources include cash,stocks, bank accounts, certain types of life insurance, buildings and land you do not live on, and some other things. We do not include as resources the home you live in, one car you use for necessary activities, and some other things.