Utilization Rules for Income Producing Property

1. Utilization Rules for Income Producing Property EAS 63-501.3; ACL 97-66;§50416.

2. CalWORKs & CalFresh For these two programs property utilized as income producing are EXEMPT from resources meaning they do not count at all toward the property limits.

3. Utilization: Income Producing for CalWORKs & CalFresh • Property which annually produces income consistent with its fair market value, even if only used on a seasonal basis. Such property shall include rental homes and vacation homes. • Property which is “essential to the employment or self-employment” of a household member.

4. Medi-Cal For Medi-Cal the properties which are utilized as income producing may be only partially exempt from resources. Any amount after deducting the $6000 standard and verified encumbrances from the market value is counted toward the property limit. If the value is less than $6000 the entire property value would be exempt.

5. Utilization: Income producing for Medi-Cal • The beneficiary is receiving net yearly income from the property of at least six percent of the net market value of the property. • Use of the form MC176P is recommended to verify the value and whether or not the property meets the utilization requirement for Medi-Cal only.

6. Utilization: Income producing for Medi-Cal (Monthly vs. Yearly Income)… • For property not limited to seasonal use, this requirement is met if the net monthly income from the property is one-twelfth of six percent of the net market value of the property. • For property limited to seasonal use, this requirement is met if the net yearly income is six percent of the net market value of the property. (Example: Farmland, Summer Cabins, Pools etc.)

8. C-IV functionality • C-IV is currently designed to run all programs correctly as long as the information is entered correctly into the system.

9. Questions