Transfer of Property

[EAS 42-221]

A POI results when a recipient has a nonexcluded resource that would cause the AU to exceed the property limit for a month and then disposes of that property for less than its fair market value.

The following transfers do not affect eligibility:

  • Property transferred between members of the same AU.
  • Property sold or traded at or near fair market value. (The EW must use their best judgement when making the determination of whether the value received is "near" market value. This may be completed in consultation with the EW Supervisor, if necessary.)
  • Property exempt for CalWORKs eligibility.

Note: The transfer of property rule does not affect applicants.

Period of Ineligibility

The POI is computed based on the amount the property limit would have been exceeded, if the property had been transferred at its fair market value. The length of the period of ineligibility is calculated by taking the following steps:

  1. Establish the fair market value of the property transferred.
  2. Add all other countable property.
  3. Subtract the amount of the AU’s property limit.
  4. Subtract the amount actually received for the property from the fair mar- ket value determined in Step #1.
  5. Compare the amount determined in Step #3 with the amount determined in Step #4 and determine the lesser of the two amounts.
  6. Divide the lesser of the two amounts from Step #5 by MBSAC for the AU.
  7. Round the resulting amount down to the nearest whole number to deter- mine the number of months in the POI.

Example:

While on aid, a recipient AU of two persons inherited a piece of land with fair market value of $20,500. The value of this inherited property, when added to the other countable property of the AU ($1,500) caused the AU to exceed the property limit of $10,211. The AU sells the land for $6,500 which is $14,000 less than the fair market value. The POI is determined belowbelow. 

The period of ineligibility for this AU is 9 months.

Applying the POI for Transfer of Property

If... Then...
A POI is determined,
  • Cash aid must be discontinued, and
  • The POI begins the first month of the next SAR Payment Period following the transfer and will continue for the determined number of months of ineligibility.

Note: Any aid received by the AU during the ineligible months of the period is an overpayment.
The transfer is discovered too late to discontinue for the first month of the SAR Payment Period,
  • The POI begins the first of a month within that SAR Payment Period after a timely and adequate NOA is given to the client. Any cash aid received by the AU during the ineligible months of the current period is an overpayments.
The transfer is made in the first or second month of aid,
  • Any resulting POI begins the first month of the next SAR Payment Period and will continue for the determined number of months.

Note: Refer to Transfer of Income [EAS 42-221] for the rules on transfer of income.

Related Topics

Property Limit

AU Determination of Property

Availability and Inaccessibility

Inaccessible Property

Verifications

Conversion of Property