DPSS ePolicy

Personal and Real Property Limits

Personal Property

Note: All Personal Property types fall under the Personal Property umbrella and must meet the $2,000 Personal Property amount limit. But each Personal Property type has its own property amount limit which must be met. If the property amount limit for any Personal Property type is exceeded, the applicant/participant does not meet GR eligibility requirements.

MV

Note: When the motor home, house trailer, or houseboat is not used as a residence, property utilization requirements must be met.

Real Property 

Note: ABLE/CalABLE savings accounts are exempt up to $100,000 for GR.

Personal Property Exemptions

Any amount above personal property limits is to be included as part of the applicant/participant’s property in determining GR eligibility.

1. Necessary household furnishings and personal effects as follows:
   
   
   1. Appliances, such as stoves, refrigerators, dishwashers, washer/dryer, etc.;
   2. Furniture, such as tables, chairs, beds, dressers, etc.;
   3. Televisions;
   4. Stereo equipment;
   5. Linens, towels, and clothing, except furs; and
   6. Engagement and wedding rings.
       
2. Relocation benefits received from a governmental agency by the applicant/participant for being moved from a residence, whether owned or rented.
3. Homeowner/Renter Assistance received from the State Franchise Tax Board.
4. Earned Income Tax Credit (EITC) received from the Internal Revenue Service as a lump sum or advanced by an employer on each paycheck.
5. Tools normally used by the employable or unemployable applicant/participant in his/her trade.
6. Funds in a retirement system when all of the following apply:
   
   
   1. The person is on medical leave from work;
   2. All funds are retained in the retirement system; and
   3. If it is medically determined that the person will be able to work within six months after the date of application for GR.

ABLE/CalABLE Accounts

ABLE/CalABLE accounts up to $100,000 are exempt and not counted towards an applicant/participant’s personal property.

Maximum contributions of $15,000 annually. Applicants/participants who are working can contribute an additional amount equal to their current year gross income up to $12,490.

Withdrawals

Withdrawals from an ABLE/CalABLE account are exempt if the funds were used for a QDE. For each withdrawal, the applicant/participant must provide verification of how the disbursement was used within five calendar days.

Note: Non-qualified expenditures paid for with ABLE/CalABLE withdrawals are treated as unearned income. Refer to GR 44-101 Income for additional details.

ABLE/CalABLE Withdrawals

Examples of eligible expenses paid from an ABLE/CalABLE withdrawal are:

1. Education;
2. Housing;
3. Transportation;
4. Employment support;
5. Health, prevention and wellness;
6. Assistive technology and personal support; and
7. Miscellaneous expenses:
   
   
   1. Financial management and administrative services;
   2. Legal fees;
   3. Oversight and monitoring; and
   4. Funeral and burial expenses.

Lump Sum Payments

Treatment of Lump Sum Payment
Lump sum payments are treated as personal property in the month received.

Spend Down of the Lump Sum Payment
Any lump sum payment received must be spent down to the maximum personal property limit allowed and the remaining balance reported on or before the end of the month following the termination to remain eligible. (Refer to the Examples Section, example 8)

A former GR participant, who was terminated due to excess resources, is eligible to reapply for GR benefits once the participant has spent down those resources to a level not exceeding the applicant resource limit.

Lump Sum Payment Prior to Application
When an applicant reports receiving a lump sum payment in the month of application, it is counted as personal property and subject to the limitations for an application ($100 for an applicant/participant or $200 for couples/families). (Refer to the Examples Section, examples 9 and 10)

When an applicant reports receiving a lump sum payment in the month(s) prior to application, the applicant may provide receipts showing the disposition of the funds. If receipts are not available, an affidavit is acceptable. Any funds not utilized are counted as personal property and are subject to the limitations at the time of application ($100 for an applicant/participant or $200 for couples/families).

Note: The POI is no longer applied to lump sum payments.

Real Property

The following must be evaluated as real property and is subject to property limits:

1. Real property being bought or sold under contract of sale.
2. Real property being bought or sold while held in escrow.
3. Real property held in a trust if it is available for sale, transfer, or use.
4. Real property in an undistributed estate if it is available for use.
5. Patented or unpatented mining claims, timber (standing), oil or mineral rights.

Real Property/Allowable Amounts

Used as a Residence

Applicants/participants may keep one piece of real property used as a home, whether owned by themselves or with others, if the assessed value is $34,000 or less (refer to Verification Section for acceptable types of verification(s)).

Not Used as a Residence

Applicants/participants may retain real property not used as a home if the assessed value is $34,000 or less, subject to the lien requirements.

Real property not used as a home may be retained if the following criteria is met:

1. The total value of real property does not exceed $34,000 in assessed value, even if the applicant/participant is part owner; and
2. The applicant/participant agrees to make a continuous and genuine effort to sell the property at Fair Market Value (FMV). A continuous and genuine effort consists of, but is not limited to, any of the following:
   
   
   1. “For Sale” sign in front of the property;
   2. Newspaper advertisements; and
   3. Listing with a real estate agent.
       
3. Funds from the sale of the property must be used by the applicant/participant to meet their needs and/or repay GR aid received.
4. Applicants have up to one year from the date of the GR application to sell the property. Participants have up to one year from the date are notified by the Department of Public Social Services (DPSS) to sell the property.
5. Failure to make a continuous and genuine effort to sell the property or to complete the sale within one year makes the applicant/participant ineligible to GR and the case is terminated.

Repayment of GR Received

Participants who become ineligible because they have or acquired property that exceeds the GR property limit should be given an opportunity to immediately repay all aid given to them.

Homeowner’s Tax Exemption

Applicants/participants who own real property and use it as a home are required to file a Homeowner’s Tax Exemption at the LA County Office of the Assessor.

In addition, emergency aid may be issued pending filing if otherwise eligible.

Real Property Held to Produce Income

Applicants/participants may have property consisting of multiple units only when the units are physically located in the same building in which the applicant/participant lives. Otherwise, the property is treated as real property not used as a home.

Units not occupied by applicants/participants must produce an annual income equaling at least 6% of their share of the assessed value of this real property. This is referred to as the 6% utilization requirement.

Shared Property

It is presumed that applicants/participants who share property ownership have equal rights to possess, control, and use the property. If ownership at a value other than half is claimed, verification of the source and the amount of funds invested in the property is required.

An applicant/participant who is a victim of domestic violence and who shares the title is exempt when:

1. Title shared is in the home the domestic violence applicant/participant left; or
2. The spouse/other title holder remains in the home.
   

Community Property

It is presumed that an applicant/participant owns half interest in community property, regardless of which spouse is in possession of the property. All property held in the name of the spouse is presumed to be community property unless evidence establishes it to be separate property.

The following exemptions apply to community property:

1. In the case of domestic violence applicant/participant, the value of the property is excluded in determining eligibility for GR.
2. Burial trusts and interment plots are considered separate property of the spouse who is to be the beneficiary or user.
   

Property is Sold/New Ownership

Sold Property:

The value of the proceeds is determined and treated as personal property.

New Ownership:

The applicant/participant is notified by mail or in person of the requirement to sell their real property via the PA 608, Notice of Requirement to Sell Real Property form.

Transferred Property

It is presumed that a voluntary transfer of real or personal property made within the last two years prior to applying for GR was made for the purpose of qualifying for GR. It is also presumed that a voluntary transfer of real or personal property made while receiving GR was made for the purpose of avoiding repayment of aid. However, the applicants/participants are provided an opportunity to rebut such a presumption. An applicant/participant will be given the opportunity to dispute the intent of transferring real or personal property. Applicant/participant can provide the verification(s) applicable to the transfer of property.

When the total value of the transferred property and other real or personal property owned at the time of the transfer or subsequently, is under the property limit, the transfer is not presumed to have been made for the purpose of qualifying for GR, or to avoid repayment of aid.
(refer to Examples Section, examples 4 and 5)

POI

Any applicant/participant who has made a voluntary transfer of property and does not have acceptable receipts or a satisfactory explanation of what happened to the property is ineligible to GR for a period of time following the date of transfer.

POI

The period of ineligibility to GR is determined by CalSAWS using the following formula:

1. The amount by which the property exceeded the limits on real and personal property is divided by the monthly basic GR budget grant for the applicants/participant.
2. The result is the number of months of ineligibility beginning with the date the property was transferred (refer to Examples Section, example 6).

Note: If CalSAWS does not determine the POI, the value must be determined manually.

Liens

As a condition of receiving GR, a lien must be taken and if possible, recorded on all real property in which the applicant/participant has an interest. The lien covers GR issued within four years prior to the date of the lien and all GR issued after the lien is taken.

A lien can be waived when the applicant/participant receives aid for 30 days or less and does not reapply and receive assistance. Should the applicant/participant reapply within 30 days, a lien must be taken. The waiver is only allowed once in any 12-month period.

Although a lien will be taken on all real property, up to $500 per applicant/participant is not counted from the sale of real property for burial expenses when the applicant/participant has no other way to pay for a burial. The signature of the applicant/participant is obtained on a lien, even if the property is owned jointly with others.

When the lien cannot be recorded (e.g., jointly owned property where the co-owner refuses to sign a lien), the lien will be returned to the district to be imaged following CalSAWS Imaging Solutions (CIS) procedures. The applicant/participant must sign the lien in order to remain eligible for GR.

Personal Property

The personal property value can be verified by any of the following:

1. The most recent full and unaltered bank account statement;
2. A current statement from the bank, credit union or savings and loan; or
3. A passbook of their account updated by the institution.

Insurance Policy

1. The CSV using the insurance policy; or
2. A replacement of the insurance policy or statement from the insurance company if the applicant/participant does not have the actual policy.
   

ABLE/CalABLE Accounts

ABLE/CalABLE accounts must be verified via third-party documentation, examples of acceptable documents are:

1. The most recent bank account statement; and
2. A current statement from the bank.

QDE

Supporting receipts can be used as verification of any withdrawals and expenses made from the ABLE/CalABLE savings account.

MV

The ownership of a vehicle can be verified by the Department of Motor Vehicles (DMV) registration or a duplicate form obtained from the DMV if the applicant/participant does not have the vehicle registration.

License Fee

The license fee for a MV registered in California can be determined by viewing the current DMV Automobile Registration Card. The license fees on the registration form are not to be used, instead the class and year first sold is used. MV without a tow letter class designator must be referred to Property Services Unit (PSU) for evaluation.

MV Registered Out-of-State

For applicants/participants possessing a MV registered out-of-state, staff can use the Kelly Blue Book as a free online resource to determine the value of vehicles or refer to the current National Automobile Dealer Association (NADA) guide, if available in the district, before making a referral to the PSU.

Inoperable MV

If a MV owned by an applicant/participant is inoperable, the value, as determined above, may be reduced by the amount estimated to be required for necessary repairs.

The applicants/participants must secure at least two estimates for necessary repairs. The lowest estimate is used in determining the value of the MV. Property services may be able to assist in this determination if the applicant/participant is unable to get the necessary estimates.

Disagrees with MV Value

If the applicant/participant does not agree with the determined value, three appraisals by auto dealers, insurance adjustors, or personal property appraisers may be submitted for consideration.

MV Used as Residence

Homeless applicants/participants who use their MV as a residence may self-declare the use of the MV.

Real Property

Ownership and Value of Real Property

1. A property deed.
2. The most recent tax statement.

Note: If the tax statement is not available, the PSU is contacted to obtain the assessed value. The information obtained is documented on the CalSAWS Journal page.

Homeowner’s Tax Exemption

Applicants/participants who own real property and use it as a home are required to file a Homeowner’s Tax Exemption. Emergency aid may be issued pending filing if otherwise eligible. Acceptable verification is:

1. The Homeowner’s Tax Exemption receipt; or
2. The current property tax statement.

Property Service Referral

A referral to the PSU needs to be submitted for investigation when:

1. The applicant/participant is unable to obtain required lien information.
2. There are questions about the value/utilization/title of the property.
3. The applicant/participant is believed to own property not reported.
4. An applicant/participant appears to be avoiding repayment of GR.
5. A transfer of property is found which occurred within two years before application, or when the date of transfer is unclear.
6. The applicant/participant submits correspondence involving property. For example, information from the County Assessor, banking institutions, insurance companies, etc.
7. The CSV of a life insurance policy cannot be determined from the policy, or the policy is not available (and the applicant/participant has been unsuccessful in obtaining the information from the insurance company and/or agent).
8. The status of previously owned life insurance policies needs to be clarified.
9. The values of stocks or bonds need to be determined, and the required statement cannot be obtained.
10. Property is obtained as a result of a lawsuit.
11. Real property is not being used as a home, and the applicant/participant is unable to obtain or provide verification information.
12. The applicant/participant disputes the value of a MV as determined by the Eligibility Worker (EW).
13. The value of a MV cannot be determined because there is no tow letter class designator, and the value cannot be determined otherwise.
14. Further assistance is needed regarding an applicant’s/participant’s property, such as:
    1. The value of an inheritance is unknown; and/or
    2. The necessary account/financial information cannot be provided or is contradictory or inconclusive; and/or
    3. There is other personal property that must be evaluated.

Value of Motor Vehicles

A Property Services referral is needed to determine the value of the vehicles listed below if unable to determine the value using any other available resource:

1. Commercial vehicles;
2. Motor/mobile homes;
3. Boats/trailers;
4. Houseboats;
5. Antique vehicles; or
6. Any vehicle with a Vehicle License Fee (VLF) classification higher than “DB.”

Note: Property Services referrals should not be made, except in extraordinary circumstances when the value or status of property cannot be determined.