Department of Human Services

Food Stamp OnlinePolicy Manual

Exempt Resources

Revised:

15.7

INCOME PRODUCING PROPERTY

Food Stamp Table of Contents

1240-1-4-.05(7)

(a)   Definitions

 

1.†† property which annually produces income consistent with other similar property in the area, with the same fair market value, even if only used on a seasonal basis

 

2.†† property such as farm land which is essential to the employment or the self-employment of a household member

 

3.†† rental homes and vacation homes (including unattached trailers or mobile homes not being used as the home place) which may be used by the household for vacation purposes at sometime during the year but which annually produce income consistent with the prevailing rate of return for similar property in the area, if not income producing, the equity value is counted.

 

4.†† work related equipment, such as a tradesmanís tools or a farmerís machinery, which is essential to a household memberís employment or self-employment

 

5.†† installment contracts for the sale of land or building(s), if the contract or agreement is producing income consistent with the prevailing rate of return for similar property. This exclusion also applies to the value of the property sold under contract or held as security in exchange for a purchase price consistent with the selling price of a similar property in the area;

 

6.†† Farm property including land, equipment and supplies may be excluded for one year beginning with the date self-employment farming ceases.

(b)   Determining If Property Is Income Producing

 

1.†† When it is necessary to determine if property is producing income consistent with the same fair market value, the caseworker may contact local realtors, county trusteeís office, the Small Business Administration, Farmerís Home Administration, or similar sources to determine the prevailing rate of return (e.g., square foot rental for similar usage of real property) in the area.

2.†† If the caseworker determines that the property is not producing income consistent with similar property in the area (for instance, the property is being leased for a token payment), such property will be counted as a resource.

 

3.†† Property exempt as essential to employment need not be producing income consistent with its fair market value. For instance, a farmerís land is essential to his employment; a good or bad crop would not affect the exemption of such a property as a resource.

Note:All findings must be documented thoroughly in the running record (CLRC) on ACCENT.

 

Glossary of Terms

Food Stamp Table of Contents