2009 California Welfare and Institutions Code - Section 11150-11160 :: Article 4. Property Qualifications

WELFARE AND INSTITUTIONS CODE
SECTION 11150-11160

11150.  It is the intent of this article to set forth the amount of
personal or real property, or both, which an applicant for, or
recipient of, public assistance may retain and remain eligible to
receive public assistance provided he meets the other eligibility
requirements for the category of public assistance for which he or
she is an applicant or recipient.
   In the formulation of any regulations pursuant to this article and
in the administration thereof, consideration shall be given to the
ability and circumstances of the applicant or recipient in order that
undue hardship is not imposed upon any applicant or recipient in
making plans to comply with the provisions of this article. No
applicant or recipient shall be considered ineligible for retaining
property where disposition would alter or impair reasonable access
to, or the normal use of, his or her home.
   This article does not apply to aid to families with dependent
children or Chapter 3 (commencing with Section 12000) or Chapter 7
(commencing with Section 14000) of this part, unless otherwise
expressly indicated.

11151.  An applicant or recipient shall be ineligible to receive
public assistance unless the property he owns is held for the
following purposes:
   1. The property is used to provide the applicant or recipient with
a home and conforms to the provisions of Section 11152 of this code.
   2. The property is producing income for the support of the
applicant or recipient and conforms to the provisions of Section
11153.7 of this code.
   3. The property is held as a reserve to meet a contingent need,
not included within the standard of assistance for which an aid
payment is made, and conforms to the provisions of Section 11154 of
this code.
   4. The property is personal in nature, or meets a special need of
the applicant or recipient, or is part of a self-care or
rehabilitation plan, or is not available for expenditure or
disposition by the applicant or recipient and conforms to provisions
of Section 11155 of this code.

11152.  An applicant or recipient may retain personal or real
property owned by him, or in combination with any other person,
without reference to its value, if its serves to provide the
applicant or recipient with a home. The basic home may be a
multiple-dwelling unit if the units not occupied by the applicant or
recipient are producing income for the support of the applicant or
recipient consistent with their rental value.
   Any applicant or recipient who does not own a suitable home may
apply other real property or the proceeds received therefrom for the
acquisition of a home. Such property in whatever form held shall be
considered to be used as a home during such time as the following
conditions apply:
   1. A plan has been made which will provide that the property will
be used through conversion or transfer within six months for the
purpose of providing a home.
   2. Any proceeds received from the sale are used within one year of
the date of conversion or application for aid, whichever is later,
for the purchase of a home, or for the costs of moving, necessary
furnishings, or necessary repairs or alterations to the home, except
that an amount may be set aside within the limits permitted by
Section 11154 of this code.
   3. Proceeds of conversion which are received in a form not readily
applicable to the initial payment on purchase of the home are
retained, and all payments thereafter received on such proceeds are
applied to the balance due on the home, or for the costs of moving,
necessary furnishings, or necessary repairs or alterations to the
home.

11153.7.  (a) In addition to real property permitted by other
provisions of this part, real property owned by the applicant or
recipient, or in combination with his spouse, may be retained in an
amount not to exceed a market value, less the amount of any
encumbrance of record, of twenty-five thousand dollars ($25,000),
provided it is being adequately utilized or is producing income
reasonably consistent with its value which is used for the support of
the applicant or recipient.
   (b) If the real property is not producing income reasonably
consistent with its value, the applicant or recipient shall be
allowed reasonable time to rent, lease or sell the property. If the
property cannot be rented, leased or sold on the basis of the market
value, the applicant or recipient shall be allowed to submit evidence
from a qualified real estate appraiser which indicates the value for
which the property can be adequately utilized.
   (c) If the applicant or recipient provides evidence that the only
method of adequately utilizing the property is sale, the property
shall be considered to be adequately utilized provided it is listed
with a licensed real estate broker at the market value or the value
determined in accordance with subdivision (b) and the applicant or
recipient provides evidence that a bona fide and continuous effort is
being made to sell the property.
   (d) Any mortgage or note secured by a deed of trust not exceeding
a market value of twenty-five thousand dollars ($25,000) that is
obtained by the applicant or recipient, or in combination with his
spouse, through the sale of such real property shall be deemed real
property when the income from the same is used to meet the needs of
the recipient.
   For the purposes of this section, "market value" shall be defined
as four times the assessed value.

11154.  The applicant or recipient may retain as a reserve for
future contingencies any combination of personal or real property not
to exceed a total value of one thousand two hundred dollars
($1,200), or, in case of a married couple both receiving public
assistance, two thousand dollars ($2,000). Any real property held as
such reserve shall be valued at its net appraised market value.

11155.  (a) Notwithstanding Section 11257, in addition to the
personal property or resources permitted by other provisions of this
part, and to the extent permitted by federal law, an applicant or
recipient for aid under this chapter including an applicant or
recipient under Chapter 2 (commencing with Section 11200) may retain
countable resources in an amount equal to the amount permitted under
federal law for qualification for food stamps.
   (b) The county shall determine the value of exempt personal
property other than motor vehicles in conformance with methods
established under the Food Stamp Program.
   (c) (1) The value of licensed vehicles shall be the greater of the
fair market value as provided in paragraph (3) or the equity value,
as provided in paragraph (5), unless an exemption as provided in
paragraph (2) applies.
   (2) The entire value of any licensed vehicle shall be exempt if
any of the following apply:
   (A) It is used primarily for income-producing purposes.
   (B) It annually produces income that is consistent with its fair
market value, even if used on a seasonal basis.
   (C) It is necessary for long distance travel, other than daily
commuting, that is essential for the employment of a family member.
   (D) It is used as the family's residence.
   (E) It is necessary to transport a physically disabled family
member, including an excluded disabled family member, regardless of
the purpose of the transportation.
   (F) It would be exempted under any of subparagraphs (A) to (D),
inclusive, but the vehicle is not in use because of temporary
unemployment.
   (G) It is used to carry fuel for heating for home use, when the
transported fuel or water is the primary source of fuel or water for
the family.
   (H) The equity value of the vehicle is one thousand five hundred
one dollars ($1,501) or less.
   (3) Each licensed vehicle that is not exempted under paragraph (2)
shall be individually evaluated for fair market value, and any
portion of the value that exceeds four thousand six hundred fifty
dollars ($4,650) shall be attributed in full market value toward the
family's resource level, regardless of any encumbrances on the
vehicle, the amount of the family's investment in the vehicle, and
whether the vehicle is used to transport family members to and from
employment.
   (4) Any licensed vehicle that is evaluated for fair market value
shall also be evaluated for its equity value, except for the
following:
   (A) One licensed vehicle per adult family member, regardless of
the use of the vehicle.
   (B) Any licensed vehicle, other than those to which subparagraph
(A) applies, that is driven by a family member under 18 years of age
to commute to, and return from his or her place of employment or
place of training or education that is preparatory to employment, or
to seek employment. This subparagraph applies only to vehicles used
during a temporary period of unemployment.
   (5) For purposes of this section, the equity value of a licensed
vehicle is the fair market value less encumbrances.
   (d) The value of any unlicensed vehicle shall be the fair market
value less encumbrances, unless an exemption applies under paragraph
(2).

11155.1.  (a) Notwithstanding Sections 11155 and 11257, the
department shall seek any federal approvals necessary to conduct a
demonstration program increasing the value of personal property that
may be retained by a recipient of aid under Chapter 2 (commencing
with Section 11200) to two thousand dollars ($2,000) and increasing
the value of the exemption for an automobile to four thousand five
hundred dollars ($4,500). The increased property limits shall not
apply to applicants.
   (b) This section shall be implemented only if the director
executes a declaration, that shall be retained by the director,
stating that federal approval for the implementation of this section
has been obtained and specifying the duration of that approval.

11155.2.  (a) In addition to the personal property permitted by this
part, recipients of aid under CalWORKs shall be permitted to retain
savings and interest thereon for specified purposes. Interest earned
from these savings and deposited into a restricted account shall be
considered exempt as income for purposes of determining eligibility
for aid and grant amounts if the interest is retained in the account.
If the interest is not deposited by the financial institution into
the account, the interest shall be treated as a nonqualifying
withdrawal of funds from the account as specified in subdivision (b).
This section shall not apply to applicants. Funds may be used by the
family for education or job training expenses for the accountholder
or his or her dependents, for starting a business, for the purchase
of a home, or for costs associated with securing permanent rental
housing or to make rent payments to overcome an episode of
homelessness. Recipients who wish to retain savings for these
purposes shall enter into a written agreement with the county to
establish a separate account with a financial institution, with the
account to be used solely for the purpose of accumulating funds for
later withdrawal for a qualifying expenditure. A qualifying
expenditure shall be defined by department regulations and shall be
verified by the recipient. The recipient shall agree to provide
periodic verification of account activity, as required by department
regulations. The agreement shall notify the recipient of the penalty
for nonqualifying withdrawal of funds.
   (b) Any nonqualifying withdrawal of funds from the account shall
result in a calculation of a period of ineligibility for all persons
in the assistance unit, to be determined by dividing the balance in
the account immediately prior to the withdrawal by the minimum basic
standard of adequate care for the members of the assistance unit, as
set forth in Section 11452. The resulting whole number shall be the
number of months of ineligibility. The period of ineligibility may be
reduced when the minimum basic standard of adequate care of the
assistance unit, including special needs, increases.
   (c) If the California Savings and Asset Project is established
pursuant to Chapter 17 (commencing with Section 50897) of Part 2 of
Division 31 of the Health and Safety Code, then to the extent
permitted by federal law, a recipient shall be eligible to receive
matching funds derived from federal contributions for the purpose of
establishing an individual account in an amount not to exceed three
thousand dollars ($3,000) in addition to the amounts specified in
subdivision (a) and a fiduciary organization may provide amounts in
excess of the first three thousand dollars ($3,000) limitation if
contributed solely through private sources.

11155.3.  (a) It is the intent of the Legislature in enacting this
section to provide counties and recipients of aid under Chapter 2
(commencing with Section 11200) with increased flexibility to
determine allowable business expenses and income reporting periods in
order to facilitate local microenterprise development, maximize
opportunities for a family to become self-sufficient, and reduce
unnecessary paperwork processing by county staff.
   (b) Self-employment net income shall be used in computing the aid
grant under Chapter 2 (commencing with Section 11200).
   (c) For purposes of determining the self-employment net income for
applicants and recipients of aid under Chapter 2 (commencing with
Section 11200), applicants and recipients may choose to deduct a
standard deduction of 40 percent of gross income or verified actual
self-employment expenses to the same extent allowed in the Food Stamp
Program pursuant to Chapter 10 (commencing with Section 18900) of
Part 6. Applicants and recipients may change the method of deduction
only when a redetermination of eligibility is conducted by the county
or every six months, whichever occurs first.

11155.4.  The principal and interest in an individual development
account established in accordance with the federal requirements of
Section 604(h) of Title 42 of the United States Code or established
by a statewide individual development account program shall be exempt
from consideration when determining or redetermining eligibility and
the amount of CalWORKs assistance.

11155.5.  (a) In addition to the personal property permitted by
other provisions of this part, a child declared a ward or dependent
child of the juvenile court, who is age 16 years or older, may retain
resources with a combined value of not more than ten thousand
dollars ($10,000), consistent with Section 472(a) of the federal
Social Security Act (42 U.S.C. Sec. 672(a)) as contained in the
federal Foster Care Independence Act of 1999 (P.L. 106-169) and the
child's transitional independent living plan. Any cash savings shall
be the child's own money and shall be deposited by the child or on
behalf of the child in any bank or savings and loan institution whose
deposits are insured by the Federal Deposit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation. The cash savings
shall be for the child's use for purposes directly related to
emancipation pursuant to Part 6 (commencing with Section 7000) of
Division 11 of the Family Code.
   (b) The withdrawal of the savings shall require the written
approval of the child's probation officer or social worker and shall
be directly related to the goal of emancipation.

11155.6.  (a) (1) The principal and interest in a 401(k) plan, 403
(b) plan, or 457 plan shall be excluded from consideration as
property when determining eligibility and the amount of assistance
with respect to an applicant for benefits who is not a recipient of
CalWORKs benefits.
   (2) The principal and interest in a 401(k) plan, 403(b) plan, IRA,
457 plan, 529 college savings plan, or Coverdell ESA, shall be
excluded from consideration as property when redetermining
eligibility and the amount of assistance for recipients of CalWORKs
benefits.
   (b) For purposes of this section, the following terms have the
following meanings:
   (1) "401(k) plan" means a deferred compensation plan that
satisfies the requirements of Section 401(k) of the Internal Revenue
Code.
   (2) "403(b) plan" means a qualified annuity plan that satisfies
the requirements of Section 403(b) of the Internal Revenue Code.
   (3) "IRA" means an individual retirement account that satisfies
the requirements of Section 408 of the Internal Revenue Code.
   (4) "457 plan" means a deferred compensation plan that satisfies
the requirements of Section 457 of the Internal Revenue Code.
   (5) "529 college savings plan" means a qualified tuition program
that satisfies the requirements of Section 529 of the Internal
Revenue Code.
   (6) "Coverdell ESA" means an education savings account that
satisfies the requirements of Section 530 of the Internal Revenue
Code.

11156.  If a recipient purchases with cash an essential item, and
such purchase under the rules and regulations of the department would
have entitled him to a special need allowance each month to meet
monthly installments on such purchase had he paid for the item in
monthly installments, the recipient shall be considered to have
purchased the item from his personal property holdings, and shall be
allowed to place in his savings, each month, without deduction from
his grant, an amount of income equivalent to the special need
allowance he would have been granted had he paid for the item on a
monthly installment basis, if he reports the purchase to the county
department within 90 days after the date on which it was made. The
income placed in his savings shall be considered personal property.
   The county department, for good and sufficient reason, may extend
the period during which a recipient may report a purchase under this
section. The department, in its rules and regulations, shall indicate
what constitutes good and sufficient reason for extending that
period.

11157.  (a) Notwithstanding Section 11008, all lump-sum income
received by an applicant or recipient shall be regarded as income in
the month received except nonrecurring lump-sum social insurance
payments, which shall include social security income, railroad
retirement benefits, veteran's benefits, worker's compensation, and
disability insurance.
   (b) Except as otherwise provided in this part, for purposes of
this chapter and Chapter 2 (commencing with Section 11200), "income"
shall be deemed to be the same as applied under the Aid to Families
with Dependent Children program on August 21, 1996, except that the
following shall be exempt from consideration as income:
   (1) Income that is received too infrequently to be reasonably
anticipated, as exempted in federal food stamp regulations.
   (2) Income from college work-study programs under Title IV of the
federal Higher Education Act or Article 18 (commencing with Section
69950) of Chapter 2 of Part 42 of the Education Code or college
work-study program, as established in the annual Budget Act, for
individuals receiving aid under Chapter 2 (commencing with Section
11200).
   (3) Any award or scholarship provided by a public or private
entity to, or on behalf of, a dependent child based on the child's
academic or extracurricular achievement or participation in a
scholastic, educational, or extracurricular competition.

11157.5.  The receipt of aid under Chapter 2 (commencing with
Section 11200) shall not impose any limitation or restriction upon a
recipient's right to sell, exchange, or change, the form of property
holdings. However, a gift or any other transfer of assets, including
income and resources, by a recipient for less than fair market value
shall result in a period of ineligibility for aid under Chapter 2
(commencing with Section 11200) for the number of months, rounded
down to the nearest whole number, that equals the quotient of the
difference between the fair market value of the asset and the amount
received for the asset divided by the standard of need applicable to
the family under Section 11452. This section shall only apply to
transfer of income or resources that would otherwise affect a
recipient's eligibility for benefits or the amount of benefits to
which he or she would be entitled.

11158.  The Legislature recognizes that certain property and rights
owned by a recipient, including a recipient of aid to families with
dependent children, are of negligible value in enabling the recipient
to meet his or her present needs, and should not be classified as
available resources of the recipient. It is the purpose of this
section to designate such property and rights.
   Resources available to a recipient, including a recipient of aid
to families with dependent children shall not include all of the
following:
   (a) Money or securities placed in an irrevocable trust for
funeral, cremation, or interment expenses with any of the trustees
mentioned in Section 7736 of the Business and Professions Code or
Section 8775 of the Health and Safety Code.
   (b) Money or securities placed in an irrevocable trust created by
a deposit in an insured savings institution made by one person of his
or her own money in his or her own name as trustee for a funeral
director to provide payment for funeral services rendered by the
funeral director upon the depositor's death.
   (c) Life or burial insurance purchased specifically for funeral,
cremation, or interment expense, which is placed in an irrevocable
trust or which has no loan or surrender value available to the
recipient.
   (d) Securities issued by a licensed cemetery authority which by
their terms are convertible only into payment for funeral, cremation,
or interment expenses.
   (e) Other funeral agreements to the extent consistent with federal
law.
   For the purposes of evaluating the personal property of a
recipient, interment plots as defined in Section 7022 of the Health
and Safety Code shall be deemed to have no value.

11159.  No payment received by, or for the benefit of any members
of, an eligible household occupying an assisted unit under Chapter 9
(commencing with Section 50735) of Part 2 of Division 31 of the
Health and Safety Code, shall be considered as income or resources to
any recipient, including a recipient of aid to families with
dependent children, and such payments shall not be deducted from the
amount of aid to which the recipient would otherwise be entitled
under any other provision of law.

11160.  To the extent federal financial participation is available,
any state agency responsible for the administration of any program
under this division may establish procedures for common eligibility
determination for public social service programs that aid needy
families to the extent consistent with the eligibility of each
program, so as to improve the efficiency of the operation of the
welfare program, improve the cost-effective use of state dollars, and
simplify the process for permitting qualified recipients to
establish their eligibility.

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