TN 14 (02-10)
SI 01150.206 Field Office Responsibilities When a Conditional Benefits Period Ends
A. Operating procedure for property sold
1. Overpayment development
Post the overpayment to the social security record (SSR) using the P TAC instructions in SM 01311.300.
2. Eligibility and notice development
Determine eligibility for regular (not conditional) benefits based on sale proceeds remaining after refund. To issue the appropriate manual notice see SI 01150.210.
B. Procedure for property not sold
1. Resources within statutory limits
If an individual depletes or converts resources so that there are no longer excess resources, even without the conditional exclusion:
compute the conditional benefits overpayment, using the original current market value (CMV) estimate (unless he or she can establish a lower value); and
determine eligibility for regular (not conditional) benefits based on countable resources after refund.
NOTE: Follow this procedure when the individual's resources fall within the limits due to the termination of deeming.
2. Personal property unsold
If the individual’s personal property remains unsold take the following steps:
Add the equity value of the excess nonliquid personal property to the value of other countable resources at the beginning of the payment period. Determine the resultant overpayment in accordance with SI 01150.202A.5; and
Issue the appropriate notices. – To issue the appropriate notices see SI 01150.210A.4.
3. Real property unsold and reasonable efforts to sell continue
If the individual’s real property remains unsold after 9 months and reasonable efforts to sell continue take the following actions:
Consider eligibility for regular not conditional benefits as described in SI 0113.140.
Issue the appropriate notice per SI 01130.140.
Enter an indicator on the SSR of the conditional benefits overpayment, computed using the property's estimated CMV.
Do not initiate recovery of the conditional benefits overpayment until:
the individual ceases to meet the requirements for unconditional exclusion of the property; or
total countable resources, even without the exclusion of the real property, drop below the applicable limit.
4. Real property unsold and reasonable efforts to sell do not continue
If real property remains unsold but the reasonable efforts to sell do not continue:
deny or suspend benefits, as appropriate,
issue the appropriate notice per SI 01150.210A.4., and
begin recovery action.
5. Request for cancellation
If the individual requests a cancellation of the agreement to sell the property:
Explanation - If the individual wishes to cancel the Agreement to Sell Property and keep the excess nonliquid resources, make sure that he/she understands that he or she:
Document - If the individual still wishes to cancel, obtain a statement either signed or recorded on a DROC that he or she:
wishes to cancel the Agreement to Sell Property;
understands that he or she will be ineligible for SSI; and
understands that he or she must refund all conditional benefits received.
Terminate the benefits immediately and begin recovery action.
C. Policy for other than cash sales
1. Contract for sale
Sales other than for cash alter the recovery of the overpayment:
When someone sells an excess nonliquid resource on a contract for sale, promissory note, installment payment contract or other property agreement, this satisfies the terms of the agreement to sell but alters the method of recovery.
When calculating the overpayment, the purchase price is:
Refund requirement - We negotiate installment refunds that are reasonable considering the individual's income and resources if he/she:
In determining the value of the contract for continuing eligibility purposes, we consider any amount that must be refunded to SSA as an encumbrance on the contract see (SI 01120.220).
If the contract is an excess nonliquid resource, the individual can, if otherwise qualified, enter into another conditional benefits agreement based on the contract subject to a 3-month disposal period for personal property.
2. Exchange of excess property
When developing an exchange of excess property, consider the following:
The exchange or trade of property does not satisfy the terms of the Agreement to Sell Property.
If the newly acquired property is an excluded resource, the individual no longer has excess nonliquid resources so the conditional benefits period ends, but the conditional benefits refund is due.
If the newly acquired property is an excess nonliquid resource, the individual can still satisfy the agreement by selling the new property within what remains of the disposal and exclusion period. The new property cannot qualify for a new conditional benefits agreement.
D. Procedure for documenting the sale
When documenting a sale, obtain the following evidence:
the gross purchase price (whether in cash, on a contract, or both);
any encumbrances on the property (taxes due and payable by seller, mortgage or other lien balance, etc.); and
any expenses incurred in connection with the sale (advertising costs, realtor or other listing fees, consignment or auction fees, attorney fees, etc.).