Real Property NOT Counted 415-25-10-05-05

(Revised 10/1/07 ML #3094)

View Archives

 

 

  1. Primary residence

A home which is owned and occupied by a family as its main place of residence is not subject to any limitation in value. A house, an apartment unit, duplex unit, or a mobile home, if used by the family for living purposes, is considered a "primary residence."

A "primary residence" is further defined as including the land on which it is located provided the acreage does not exceed 160 contiguous acres, if rural, and two contiguous acres, if located in town. Acreage in excess of these amounts, as well as a house, apartment unit, duplex unit, or mobile home owned but not occupied by the family are to be regarded as real property with equity which is an available resource to the family.

In some cases, city zoning laws prohibit a home owner from sub dividing his property below a minimum acreage. In these cases the primary residence may have more than two contiguous acres, not to exceed the minimum acreage required by city zoning laws for the section of the city in which the home is located.

  1. Real property that is being farmed, produces rent, or is otherwise operated as a business by the applicant household is NOT counted in the determination of assets. The real property must be producing income commensurate with prevailing rental or leasing rates in the community. However, the income produced by this real property is included under the income limitations for eligibility.

  1. Contractual rights to receive money payments, such as the face value of a note, mortgage, or Contract for Deed (see - Contracts for Payment 415-25-10-25)

  1. Real property which has been demonstrated to produce little or no income despite "good faith" efforts of the owner to rent and/or sell at acceptable community rates.

"Good faith efforts" may include but not be limited to repeated attempts to sell and/or rent the property at an acceptable community rate through classified ads, listing the property with appropriate realtors, banks, etc.

Any property NOT counted under this provision must be carefully reviewed at least annually to be certain the household is making every reasonable effort to produce income from the property.