TN 37 (04-96)
SI 01130.630 Cash and In-Kind Items Received for the Repair or Replacement of Lost, Damaged, or Stolen Excluded Resources
20 CFR 416.1232 , as amended, March 17, 1994 (59 FR 12544) and February 15, 1996 (61 FR 5943)
A. Policy Time Periods
1. The Policy - Initial Period
Cash and in-kind receipts (ISM and other) from any sourcefor the replacement or repair of lost, damaged, or stolen excluded resources are themselves not treated as resources for 9 months from the date of their receipt. (See B.1. below regarding permanent exclusion of funds from certain sources.)
2. 9-Month Extension for Good Cause
For cash and in-kind receipts, the initial 9-month period can be extended for a reasonable period up to an additional 9 months if the individual shows good cause why repair or replacement was not possible during the first 9 months.
b. Definition - Good Cause
Good cause is present if circumstances beyond the individual's control:
prevent repair or replacement of the lost, damaged, or stolen property; or
keep the individual from contracting for such repair or replacement.
c. Example - Good Cause
An individual's home was destroyed by a severe hurricane. Due to the extent of the devastation to the area, there were not a sufficient number of contractors available to rebuild the house. There were so many homes to rebuild and repair that the contractors could not estimate when they could begin to rebuild the recipient's home and could not accept any new contracts at the time.
3. Victims of Hurricane Andrew
Effective March 17, 1994, for victims of Hurricane Andrew only (which occurred in August 1992 and affected South Florida and Louisiana), the period within which the cash or in-kind replacement is not treated as resources can be extended for up to an additional 12 months beyond the 9-month extension in 2. above if the individual continues to show good cause.
4. Presidentially-Declared Major Disasters
Effective February 15, 1996, for individuals who incurred damage to or loss of excluded resources as the result of a catastrophe which is declared to be a major disaster by the President of the United States (other than Hurricane Andrew), the 18-month period (9-month initial period plus 9-month good cause extension) within which cash or in-kind replacement is not counted as resources can be extended for up to an additional 12 months for a maximum non-resource counting period of 30 months if:
the excluded resource is geographically within the disaster area as defined in the presidential order;
the individual intends to repair or replace the excluded resource; and
the individual presents evidence of good cause, as defined in A.2.b. above.
NOTE: History has shown that 18 months is usually sufficient time for individuals to repair or replace damaged or destroyed excluded resources, even in the case of major disasters. Therefore, this extension should not be granted automatically, but only after a thorough examination of the evidence of good cause.
b. Original 9-Month and 9-Month Extension Periods Expire Before February 1996
If the 18-month noncounting period (9-month initial period plus 9-month good cause extension) has expired prior to February 15, 1996 (the effective date of the regulation related to the 12-month extension in the case of presidentially-declared disasters), we may extend the period for not counting the funds and in-kind receipts if the requirements in a. above are met. The extension is applicable March 1, 1996 (the month following the effective date of the regulation) and can remain applicable for a period not to exceed the number of months remaining in the 30-month period that commences with the month following the month of receipt of the funds or in-kind receipts. There is no retroactive effect.
EXAMPLE: If an individual's 18-month noncounting period expired in August 1995 (6 months prior to the effective date of the regulatory change), we can extend the period for not counting the funds as resources prospectively for up to an additional 6 months, from March 1996 through August 1996. The resources would still be countable September 1995 through February 1996.
5. Maximum Exclusion Period
The maximum exclusion period for victims of Hurricane Andrew and presidentially-declared major disasters cannot exceed 30 months (9-month initial period, 9-month good cause extension period, additional 12-month good cause extension) following the month of receipt.
B. Policy Funds Not Treated As Resources
1. Funds Subject to Policy
There are no restrictions on where cash and/or in-kind items come from for purposes of this policy (e.g., it may come from an insurance company, a Federal or State agency, a public or private organization, or an individual).
However, funds received from the following sources are to be excluded in accordance with SI 01130.620 rather than these instructions:
the Disaster Relief and Emergency Assistance Act;
some other Federal statute because of a presidentially-declared major disaster;
comparable assistance received from a State or local government; or
a disaster assistance organization.
(See SI 00830.620 for income treatment.)
2. Interest on Funds Not Treated as Resources
Interest earned by funds not treated as resources under this provision is not treated as income and resources for the period during which the funds themselves are not considered resources.
3. Funds for Temporary Housing
This policy applies to funds received for the purchase of temporary housing.
4. Personal Injury Payments
This policy does not apply to funds received on account of personal injury. However, see SI 01120.200, Trusts, or SI 01140.215, Conservatorship Accounts, as applicable .
C. POLICY - INTENDED USE
1. During First 9 Months
What the individual intends to do with the funds does not affect their treatment for the first 9 months.
2. Role in Extension for Good Cause
An individual cannot qualify for an extension of the initial 9-month period unless he/she intends to use the funds for their designated purpose, i.e., repair or replacement of excluded resources.
3. Change of Intent During Extension
The good cause extension will terminate as of the date of the change of intent. The funds previously not treated as resources will be taken into account in determining resources for the following month.
1. When to Develop
When an individual would otherwise be ineligible due to excess resources, determine if applying this policy would permit eligibility for regular or conditional benefits (SI 01150.200 ff.). If the policy would permit eligibility, develop per the following instructions.
NOTE: If the individual is resources-eligible even without the application of this policy, it is not necessary to develop under this section.
Make sure the evidence shows the source, value, date(s), and intended purpose of the items received, including whether any cash received is for a purpose other than the replacement or repair of the lost, damaged, or stolen (and excluded) resource.
b. Individual's Records
Obtain a copy of any evidence the individual has.
c. Verification From Source
If the individual cannot provide evidence that suffices for a determination, obtain the necessary information from the source of the payment(s). Do so by telephone, if possible, recording the facts on an RC or on an appropriate MSSICS screen.
a. Initial 9-Month Period
Prepare a manual diary or listing to contact the individual at least 30 days before the initial 9-month period expires to determine if a good cause extension is necessary and if the individual qualifies for the extension.
NOTE: FOs may establish earlier diaries as necessary.
b. Victims of Hurricane Andrew and Presidentially-Declared Disasters
For victims of Hurricane Andrew and presidentially-declared disasters only, prepare a manual diary to recontact the individual at least 30 days before the expiration of the 9-month extension, if applicable, to determine if an additional extension is needed.
NOTE: FOs may establish earlier diaries as necessary.
If, after the 9-month extension for good cause, you grant an additional extension under the Hurricane Andrew or presidentially-declared disaster provisions and that extension is:
for 6 months or less: Prepare a manual diary at least 30 days before the extension period expires to determine if continuation of the good cause extension is warranted.
in excess of 6 months: Prepare a manual diary at the mid-point of the extension period to recontact the individual.
4. Recontact Evidence Requirements
Obtain evidence of the amount of payment(s) not treated as resources that are still unspent.
If payment(s) remain unspent, but the individual alleges:
good cause (see A.2. above); and
the intent to use the funds for their designated repairs or replacement,
obtain his/her statement either signed or recorded on a DROC regarding intent. Also have the individual submit evidence to substantiate the allegation of good cause, (e.g., letters from contractors, etc.)
a. No Extension for Good Cause
If the evidence does not establish good cause, document your determination and include the unspent payment(s) in determining countable resources as of the first moment of the first month after the month in which the policy is no longer applicable.
If the evidence shows good cause, discuss with the individual how much additional time is needed and why. On the basis of that discussion, extend the initial 9-month period for a reasonable period up to an additional 9 months (or, after an initial 9-month good cause extension, up to an additional 12 months in the case of victims of Hurricane Andrew or presidentially-declared disasters), repeating development steps 3. and 4. above, as appropriate. Document your determination for the file.
6. Systems Coding
If you grant an extension for victims of:
Hurricane Andrew, enter the codingANDY; or
a presidentially-declared major disaster, enter the coding PDMD
in the CG field of the SSR to indicate that resources are not being counted under this provision. At your option you may enter the month and year that the funds were received.
Excluded funds commingled with nonexcluded funds, SI 01130.700
Income treatment of items to replace or repair resources that have been lost, damaged, or stolen, SI 00815.200