In determining the resources for a household, the following
shall be excluded from consideration.
A. Vehicles
All of a household's licensed and unlicensed automobiles,
motorcycles and vehicles, including recreational vehicles and seasonal
vehicles, shall be totally exempt as a resource.
B. Home and Property
The home and surrounding property, which is not separate from
the home by intervening property owned by others, will be an exempt resource.
Public rights of way, such as roads that run through the surrounding property
and separate it from the home, will not affect the exemption of the property.
The home and surrounding property shall remain exempt when temporarily
unoccupied for reasons of employment, training for future employment, illness,
or not habitable as a result of casualty or natural disaster, if the household
intends to return. The property owned or being purchased by households that
currently do not own a home and on which the household intends to build or is
building a permanent home shall be exempt.
C. Prorated Income
Monies that have been prorated and considered as income for
eligibility purposes will be an exempt resource. Prorated student and
self-employment income is exempt as a resource as long as a portion is still
being counted as income.
D.
Household Goods, Personal Effects, and Retirement Accounts
1. Household goods, personal effects,
including one burial plot per household member, the cash value of life
insurance policies, and livestock not excluded as income producing property are
exempt resources.
2. All retirement
accounts with Federal tax preferred retirement status are exempt resources. The
following retirement accounts are exempt:
a.
Pension or traditional defined benefit plan;
b. 401(K) plan and simple 401(K);
c. 501C(18);
d. 403(A) and 403(B) plans;
e. 408 plans including traditional individual
retirement accounts (Roth IRA, SIMPLE IRA, and myRA), traditional Individual
Retirement Annuities
f. 457
plan;
g. Federal employee thrift
savings plan;
h. Keogh
plan;
i. 529A funds including funds
in a qualified ABLE program
j.
Simplified employer plan;
k. Profit
sharing plan; and,
l. Cash balance
plans.
3. All tax
deferred education accounts are exempt resources. The two types of tax deferred
education savings accounts are:
a. Section
529 qualified tuition programs, which allow owners to prepay a student's
education expenses or to contribute to an account to pay those
expenses.
b. Coverdell education
savings accounts and IRA type of account designed to pay a student's education
expense.
4. One bona
fide pre-purchased funeral agreement per household member, which may include
one burial plot per household member, shall be excluded provided that the
agreement does not exceed one thousand five hundred dollars ($1,500) in equity
value; the equity value over one thousand five hundred dollars ($1,500) is
counted as a resource. If a burial plot is included in the agreement, the
burial plot portion will be exempted prior to determining the equity value of
the funeral agreement.
E. Income-Producing Property, Including
Vehicles
1. Any property that is producing an
annual income consistent with its fair market value in the community, even if
it is used only on a seasonal basis, shall be an exempt resource. Such property
includes farmland and rental homes, or work- related equipment, such as the
tools of a tradesman or the machinery of a farmer, and vehicles which are
essential to the employment or self-employment of a household member such as
semi-tractor/trailer, boat, motor home, utility trailer, or seasonal or
recreation vehicles used for income-producing purposes. Such property also
includes livestock.
2. Installment
contracts for the sale of land or buildings if the contract or agreement is
producing income consistent with its fair market value shall be an exempt
resource. The exclusion shall also apply to the value of the property sold
under the installment contract or held as security in exchange for a purchase
price consistent with the fair market value of that property retained by the
seller.
3. Income-producing
vehicles such as, but not limited to, a taxi, tractor, fishing boat, a vehicle
used for deliveries, motor home, snowmobile, or camper is an exempt resource if
it annually produces income consistent with its fair market value, even if only
used on a seasonal basis. The exemption will apply when the vehicle is not in
use because of temporary unemployment. This exemption also applies to
ineligible non-citizens or disqualified persons whose resources are being
considered available to the household.
4. Property essential to the self-employment
of a household member engaged in farming (including land, machinery, equipment,
and supplies) shall be excluded for one (1) year from the date the household
member terminates his or her self-employment from farming.
F. Inaccessible Resources
1. Resources having a cash value which is not
accessible to the household include, but are not limited to, irrevocable trust
funds, property in probate, or property prohibited from sale by a creditor
holding a lien, and real property which the household is making a good faith
effort to sell at a reasonable price, and which has not been sold. In such
cases, the local office shall establish that the property is for sale and that
the household will accept a reasonable offer.
2. Non-exempt, non-liquid resource, as
defined in Section 4.408.1, B, that would have a net return of one thousand
five hundred dollars ($1,500) or less if sold, shall be considered an
inaccessible resource. The equity value shall be used to determine this amount.
The equity value is fair market value less verified encumbrances (amount
owed).
3. Any funds in a trust or
transferred to a trust, and the income produced by that trust shall be
considered inaccessible to the household if:
a. The trust arrangement will not likely
cease during the certification period, and no household member has the power to
revoke the trust arrangement or change the name of the beneficiary during the
certification period; or
b. The
trustee administering the funds is either a court, an institution, corporation,
or organization which is not under the direction or leadership of any household
member; or an individual appointed by the court who has court-imposed
limitation placed on his/her use of funds which meet requirements of this
section; or
c. The trust
investments made on behalf of the trust do not directly involve or assist any
business or corporation under the control, direction, or influence of a
household member; or
d. The funds
held in irrevocable trust are either established from household's own funds and
are used solely to make investments on behalf of the trust or to pay
educational or medical expenses of persons named by the household creating the
trust; or established from non-household funds by a non-household member; or
e. Monies which are withdrawn from
trust and dividends that are or could be received by the household shall be
considered as income.
G. Resources with No Significant Return
Resources that, as a practical matter, the household is
unlikely to be able to sell for any significant return because the household's
interest is relatively slight or because the cost of selling the household's
interest would be relatively great and shall be considered inaccessible. A
resource shall be so identified if its sale or other disposition is unlikely to
produce any significant amount of funds for the support of the household.
Verification of the value of a resource to be excluded shall not be required
unless the eligibility worker determines that the information provided by the
household is insufficient to permit a determination of the resource value or
the technician believes that the information is questionable.
This provision regarding no significant return does not apply
to negotiable financial instruments (as defined in C.R.S section
4-3-104). A significant return or a
significant amount of funds shall be any return/funds after estimated costs of
sale or disposition and considering the ownership interest of the household. A
significant return or a significant amount of funds is an amount that is
estimated to be more than one thousand five hundred dollars ($1,500).
H. Resources of Battered Women in
Shelters
Residents of shelters for battered women and children may not
have been able to retain access to all the resources of their former household.
Therefore, in cases where access to a resource, such as jointly held bank
accounts requiring both signatures, vehicles, and property, is dependent upon
the agreement of a person who still resides in the household where the woman
was abused, the resource shall be considered inaccessible to the
applicant.
I. Resources
Used by Household Members
Where an exclusion applies because of use of a resource by or
for a household member, the exclusion shall also apply when the resource is
being used by or for an ineligible non-citizen or disqualified person whose
resources are being counted as part of the household's resources.
J. Government Payments
The following government payments are received for a specific
purpose or services and shall be excluded as a resource for SNAP
eligibility.
1. P.L. No. 89-642.
Section (11b) of the Child Nutrition Act of 1966 excludes the value of
assistance to children under this Act from resources for SNAP
purposes.
2. Payments received from
the youth incentive entitlement pilot projects, the youth community
conservation and improvement projects, and the youth employment and training
programs under Youth Employment and Demonstration Act of 1977 (P.L. No. 95-93)
and extended under Title IV of the Comprehensive Employment and Training
Amendments of 1978 (P.L. No. 95-524). (Note: Does not include other payments
under the Comprehensive Employment and Training Act (CETA) or payments under
the Youth Adults Conservation Corps.)
3. Any governmental payments which are
designated for the restoration of a home damaged in a disaster, if the
household is subject to a legal sanction if the funds are not used as intended:
for example, payments made by the Department of Housing and Urban Development
through the individual and family grant program or disaster loans or grants
made by the Small Business Administration, Section 312(d) of Disaster Relief
Act of 1974.
The Disaster Relief Act of 1974. P.L. No 93-288 as amended by
P.L. No. 100-707, Section 105(i). the Disaster Relief and Emergency Assistance
Amendments of 1988. Payments precipitated by an emergency or major disaster as
defined in this Act, as amended, are not counted as income or resources for
SNAP purposes. This exclusion applies to Federal assistance provided to persons
directly affected and to comparable disaster assistance provided by states,
local governments, and disaster assistance organizations.
4. Reimbursements from the Uniform Relocation
Assistance and Real Property Acquisition Policy Act of 1970 (P.L. No. 91-646.
section 216).
5. Benefits received
from the special supplemental food program for women, infants and children
(WIC) (P.L. No. 92-443). This payment is excluded as an in-kind
benefit.
6. Payments or allowances
made under any federal laws for the purpose of energy assistance, other than
Part A of Title IV of the Social Security Act (42 U.S.C.
601 through
42 u.S.C. 619), or a one-time
payment or allowance made under federal or state law for the cost of
weatherization or emergency repair or replacement of an unsafe or inoperative
furnace or other heating or cooling device is exempt as a resource.
7. HUD rental refund payments made pursuant
to settlement of a series of class action lawsuits such as Underwood v. Harris,
originally brought in the District of Columbia Federal District Court, are
excluded in the month received and the following month.
8. Mandatory deductions from military pay for
educational purposes while the participant is enlisted. (P.L. No. 99-576,
Veterans' Benefits Improvement and Health-Care Authorization Act of 1986,
Section 303(a) (1)) Section 216 of P.L. No. 99-576 authorizes stipends for
participation in study of Vietnam-Era veterans' psychological problems that are
not excluded from income.
9.
Payments to U.S. citizens of Japanese ancestry and resident Japanese
non-citizens for up to twenty thousand dollars ($20,000) each and payments to
certain eligible Aleuts of up to twelve thousand dollars ($12,000) each. P.L.
No. 100-383. Section 105(f)(2) Civil Liberties Act of 1988.
10. P.L. No. 100-435, Section 501, amended
Child Nutrition Act to allow under WIC demonstration projects, benefits that
may be exchanged for food at farmers' markets.
11. Payments made from the Agent Orange
Settlement Fund (P.L. No. 101-201). All payments from the Agent Orange
Settlement fund or any other fund established pursuant to the settlement in the
Agent Orange product liability litigation are excluded from income retroactive
to January 1, 1989. The veteran with disabilities will receive yearly payments.
Survivors of deceased veterans with disabilities will receive a lump-sum
payment. These payments were disbursed by the AETNA insurance
company.
12. A federal earned
income tax credit received either as a lump sum or as payments under Section
3507 of the Internal Revenue code for the month of receipt and the following
month for the individual and that individual's spouse (P.L. No. 101-508).
A federal, state, or local Earned Income Tax Credit (EITC)
would be exempted for twelve (12) months from receipt for any household member
if the individual receiving the EITC was participating in SNAP when the EITC
was received and participation continues for twelve (12) months. Temporary
non-participation due to administrative reasons, such as a delayed
recertification, shall not affect the twelfth (12th) month participation
requirement (P.L. No. 103-66, Mickey Leland Childhood Hunger Relief Act of
1993).
13. Any money
received from the Radiation Exposure Compensation Trust Fund, pursuant to P.L.
No. 101-426 as amended by P.L. No. 101-510.
14. P.L. No. 103-286, Section 1(a) provides,
in part, that payments made to individuals because of their status as victims
of Nazi persecution shall be disregarded in determining eligibility for, and
the amount of, benefits or services to be provided under any federal or
federally assisted program which provides benefits or services based, in whole
or in part, on need.
15. Amendments
to Section 1403 of the Crime Act of 1984 (42 U.S.C.
10602)
provide in part that, notwithstanding any other law, if the compensation paid
by an eligible crime victim compensation program would cover costs that a
federal program or a federally financed state or local program would otherwise
pay:
a. Such crime victim compensation
program shall not pay that compensation;
b. The other program shall make its payments
without regard to the existence of the crime victim compensation program.
Based on this language, payments received under this Program
must be excluded from income for SNAP purposes.
16. P.L. No. 104-204 requires that allowances
paid under this law to children of Vietnam veterans who were born with spina
bifida be excluded from resources.
17. P.L. No. 111-312 and The American
Taxpayer Relief Act of 2012 requires that Federal income tax refunds received
beginning January 1, 2010 must be disregarded as a resource for twelve (12)
months from the date of receipt by the client.
Notes
10 CCR 2506-1-4.410
37
CR 15, August 10, 2014, effective 9/1/2014
37
CR 21, November 10,2014, effective 12/1/2014
38
CR 23, December 10, 2015, effective 1/1/2016
39
CR 01, January 10, 2016, effective
2/1/2016
39
CR 05, March 10, 2016, effective
4/1/2016
39
CR 07, April 10, 2016, effective
5/1/2016
39
CR 15, August 10, 2016, effective
9/1/2016
39
CR 17, September 10, 2016, effective
10/1/2016
39
CR 19, October 10, 2016, effective
11/1/2016
39
CR 23, December 10, 2016, effective
1/1/2017
40
CR 11, June 10, 2017, effective
7/1/2017
40
CR 17, September 10, 2017, effective
10/1/2017
41
CR 15, August 10, 2018, effective
9/1/2018
40
CR 23, December 10, 2017, effective
12/30/2018
42
CR 01, January 10, 2019, effective
2/1/2019
42
CR 03, February 10, 2019, effective
3/15/2019
42
CR 17, September 10, 2019, effective
10/1/2019
42
CR 18, October 10, 2019, effective
10/1/2019
42
CR 23, December 10, 2019, effective
12/30/2019
43
CR 01, January 10, 2020, effective
1/30/2020
43
CR 05, March 10, 2020, effective
2/7/2020
43
CR 07, April 10, 2020, effective
4/30/2020
43
CR 21, November 10, 2020, effective
11/30/2020
44
CR 21, November 10, 2021, effective
11/30/2021
45
CR 05, March 10, 2022, effective
3/30/2022
45
CR 19, October 10, 2022, effective
10/1/2022
45
CR 19, October 10, 2022, effective
11/1/2022
45
CR 21, November 10, 2022, effective
11/30/2022
