5101:1-39-33 Real or personal property essential to self-support.

(A) This rule governs when real or personal property owned by an individual that is essential to his or her means of self-support may be exempt. The property can be real or personal property, and can include items required by an employer. If the applicant/recipient asserts that his or her property is essential for self-support, the CDJFS must first determine whether the property qualifies under one of the three categories identified in paragraph (C) of this rule.

(B) "Basic daily living needs" is defined as any food, basic clothing, basic shelter, and any medical care that are not provided by medicaid. Items for entertainment or leisure are not basic daily living needs.

(C) Categories of property essential to self-support

(1) Income-producing property. A portion of an applicant/recipient's equity in income- producing property may be exempt from being counted as a resource. The exemption will apply only if the applicant/recipient uses the income for the sole purpose of providing for his or her own basic daily living needs. The CDJFS shall determine whether there is any excluded equity in income-producing property as follows:

(a) Establish the applicant/recipient's equity in the property up to a maximum of six thousand dollars. This will be the "maximum allowable equity." Any equity in excess of six thousand dollars shall be counted as a resource.

(b) Calculate six per cent of the maximum allowable equity.

(c) Establish the net annual income the property produces for the applicant/recipient.

(i) If the income to the applicant/recipient is equal to or greater than the six per cent calculated in paragraph (C)(1)(b) of this rule, then the maximum allowable equity is not counted as a resource.

(ii) If the income to the applicant/recipient is less than the six per cent calculated in paragraph (C)(1)(b) of this rule, then the applicant/recipient's entire equity is counted as an available resource.

(2) Property that represents the authority granted by a government agency to engage in an income-producing activity. This category includes any permit, license, or a similar instrument issued by a federal, state, or local government agency. The value of such an instrument is excluded as property essential to self support if it is:

(a) Used to engage in income-producing activity and the applicant/recipient uses the income for the sole purpose of providing for his or her own basic daily living needs; or

(b) Not used due to circumstances beyond the individual's control and there is a reasonable expectation that the use will resume.

(3) Property that produces goods or services. A portion of an applicant/recipient's equity in property that produces goods or services may be exempt from being counted as a resource. The exemption will apply only if the applicant/recipient uses the goods or service for the sole purpose of providing for his or her own basic daily living needs. The CDJFS shall determine whether there is any excluded equity in such property as follows:

(a) Determine if the property provides either a product or a service that supplies basic daily living needs for the applicant/recipient.

(i) If the property does provide basic daily living needs for the applicant/recipient, then the applicant/recipient's equity up to a maximum of six thousand dollars shall not be counted as a resource. Any equity in excess of six thousand dollars shall be counted as a resource.

(ii) If the property does not provide basic daily living needs for the applicant/recipient, then the entire equity is a countable resource.

(D) If the applicant's property falls under more than one of the above categories, the CDJFS shall apply only the provision that is most beneficial to the applicant/recipient.

(E) If there is more than one potentially excludable property, the above six per cent return requirement applies individually to each property and the six thousand dollars equity value limit applies to the total equity value of all the properties meeting the six per cent return requirement.

(F) For any of the above exemptions to apply, the property must be in current use. If the property is not in current use, it must be for reasons beyond the individual's control. If property is not in current use, there must also be a reasonable expectation that the use will resume within twelve months of last use.

(1) If an individual alleges that self-support property is not in current use because of a disabling condition of the individual, the individual must provide a treating physician's signed statement describing the nature of the condition, the date the individual ceased the self-support activity, and the date the physician will allow the individual to resume the activity, if at all.

(2) If the individual does not intend to resume the self-support activity, the property is a countable resource in the month after the month of last use.

(3) If, after property has been excluded because an individual intends to resume self-support activity, the individual decides not to resume such activity, the exclusion ceases to apply as of the date of the change of intent. The property is a resource in the following month.

(G) To verify the earnings, the CDJFS shall obtain a copy of the tax return for the tax year prior to the application or reapplication. The return shall be used to determine the net income earned for the applicant/recipient from the income-producing property. The CDJFS shall also obtain any other documentation necessary to fully and adequately distinguish between the income from the income-producing property, and income from other sources.

(H) If an individual alleges owning items that are used in his or her work as an employee, the CDJFS shall obtain his or her statement to include the name, address, and telephone number of the employer, a general description of the items, a general description of his or her duties and whether the items are currently being used.

(I) If an individual alleges owning a government license, permit, or other property that represents government authority to engage in an income-producing activity, and that has value as a resource, the CDJFS shall obtain verification of the license, permit and/or other pertinent documents and the individual's signed statement explaining the following:

(1) The type of license, permit or other property;

(2) The name of the issuing agency, if appropriate;

(3) Whether the law requires such license, permit, or property for engaging in the income producing activity at issue; and

(4) How the license, permit, or other property is being used; or

(5) Why it is not being used.

(J) If the applicant/recipient fails to produce the appropriate documentation, then the applicant/recipient's entire equity is a countable resource.

Eff 9-3-77; 2-1-79; 10-1-79; 1-3-80; 10-1-95; 11-7-02
Rule promulgated under: RC 111.15
Rule authorized by: RC 5111.01 , 5111.011
Rule amplifies: RC 5111.01 , 5111.011
Replaces: 5101:1-39-33
R.C. 119.032 review dates: 11/07/2007