TN 5 (02-06)

HI 03035.030 Verification Process - Real Property

A. Background

The subsidy application asks if the individual or couple own real estate other than the home that serves as the principle place of residence. If the individual or couple answers “yes” to this question, the system sends the case to the verification process for scanned paper applications and applications submitted on the internet. Follow the general verification instructions in HI 03035.006 and the additional instructions specifically for verification of real property in this section.

NOTE: For applications taken on MAPS, the SSA employee will be able to input the value of the individual’s real property and amount owed during the initial interview.

B. Policy - Counting Real Property as a Resource

For purposes of determining subsidy eligibility, non-home real property is counted as a resource. The countable value of the property is the equity value.

C. Procedure - Real Property Verification

1. Contact the Individual

  • Follow the general verification procedure in HI 03035.006 for contacting the individual including phone contacts and sending the Evidence Request Notice.

  • If a phone contact is successful, ask the individual to describe the property (or properties), and to estimate the current market value and the value of any liens or mortgages on the property.

  • If 2 attempts to make a phone contact are unsuccessful, send the Evidence Request Notice and use the drop-down boxes to specify the types of evidence pertinent to ownership of property.

2. Determine the Value of the Property

  • Absent evidence to the contrary, accept the individual’s allegation of the property’s current market value and the amount owed on the property.

  • Use the individual’s allegation of the property’s value and any amounts owed without additional development if the allegation does not cause the individual’s total countable resources to go over the applicable subsidy resource limit. It is not necessary to document liens, encumbrances, or other factors that affect the property’s equity value.

  • Use the individual’s allegation of the property’s value and any amounts owed without additional development if counting the individual’s equity in the property causes the individual’s total resources to go over the resource limit and there is no indication of liens, encumbrances, or other factors that might affect the property’s equity value. It is not necessary to document the file that there are no liens, encumbrances etc.

  • If the CR becomes aware of liens, encumbrances, questionable ownership, or other factors that might reduce the property’s equity value and permit eligibility for the subsidy, follow SSI procedures in SI 01140.100 for developing non-home real property in order to determine the countable value (if any) of the non-home property.

  • If ownership is questionable, follow SSI policies for determining ownership beginning in SI 01110.500.

  • If the applicant or spouse who is of Indian descent from a federally recognized tribe alleges ownership interest in trust or restricted Indian lands, exclude this resource (SI 01130.150). Document the exclusion in MAPS following the procedures in HI 03035.007.

3. Document the Verification Determination

See HI 03035.007 for documentation requirements. Use the MAPS verification screens to document:

  • the verified value of the property;

  • the dates and types of contacts made;

  • the types of evidence requested and reviewed; and

  • the CR’s determination (“resolved” or “failure to cooperate”).

Do not photocopy the evidence for the file because evidence should be recorded on the verification screens.

4. Input the Determination

  • Use the “Other Real Estate” section of the verification screen to input the “current market value” and “amount owed” fields. If the individual owns more than one piece of property, it will be necessary to combine the current market values and the amounts owed before doing the input.

  • If the real property issue is resolved, go to the Issue Resolution section of the screen and select “Reso