675-1 HAWAII ADMINISTRATIVE RULES TITLE 17 DEPARTMENT

675-1

HAWAII ADMINISTRATIVE RULES

TITLE 17

DEPARTMENT OF HUMAN SERVICES

SUBTITLE 6 FAMILY AND ADULT SERVICES DIVISION

CHAPTER 675

ASSETS

Subchapter 1 General Provisions

§17-675-1 Purpose

§17-675-2 Definitions

§17-675-3 (Reserved)

Subchapter 2 Personal Reserve Standards

§17-675-4 Personal reserve standards

§17-675-5 Personal reserve standards for financial

assistance

§17-675-6 Personal reserve standards for medical

assistance only

§17-675-7 Personal reserve standards for food

stamps

§§17-675-8 to 17-675-12 (Reserved)

Subchapter 3 Evaluation Of Assets

§17-675-13 Purpose

§17-675-14 Evaluating assets for financial

assistance

§17-675-15 Special provision for financial

assistance programs only - assets of

sponsor of an alien

675-2

§17-675-16 Evaluating assets for medical assistance

only

§17-675-17 Special medical assistance only

provisions for the community spouse of

a person institutionalized in a medical

institution

§17-675-18 Evaluating assets for food stamps

§17-675-19 Special provision for food stamps –

commingled funds

§§17-675-20 to 17-675-24 (Reserved)

Subchapter 4 Assets To Be Exempted

§17-675-25 Purpose

§17-675-26 Assets to be exempted in the financial

assistance, medical assistance only,

and food stamp programs

§17-675-27 Exemption of burial spaces and funeral

plans

§17-675-28 Special provision for financial

assistance programs only - temporary

exemption of real property other than

the home

§17-675-29 Special provisions for the food stamp

program - other excluded assets

§17-675-30 Special provisions for the food stamp

program - inaccessible assets

§§17-675-31 to 17-675-35 (Reserved)

Subchapter 5 Assets To Be Considered

§17-675-36 Assets to be considered

§17-675-37 Determining equity in any business

§§17-675-38 to 17-675-42 (Reserved)

Subchapter 6 Evaluation Of Real Property

675-3

§17-675-43 Equity value of real property

§17-675-44 Treatment of some special forms of

ownership of real or personal property

§17-675-45 Special provision for financial

assistance programs - real property

liens

§17-675-46 Special provision for financial

assistance programs - eligibility

pending removal of legal impediments to

ownership of real property

§17-675-47 Special provision for medical assistance

only program - removal of legal

impediments to availability

§17-675-48 Real property used as a home

§17-675-49 Special provision for the food stamp

program - income producing property

§§17-675-50 to 17-675-54 (Reserved)

Subchapter 7 Evaluation Of Motor Vehicles

§17-675-55 Evaluation of automobiles and treatment

of values in the financial assistance

programs and the AFDC-related and GA-

related medical assistance only

programs

§17-675-56 Evaluation of automobiles and treatment

of values in the medical assistance

programs for the aged, blind, and

disabled

§17-675-57 Exempt motor vehicles in the food stamp

program

§17-675-58 Evaluation of non-income producing

licensed motor vehicles in the food

stamp program

§17-675-59 Unlicensed vehicles in the food stamp

program

§§17-675-60 to 17-675-64 (Reserved)

675-4

Subchapter 8 Disposal Of Assets

§17-675-65 Disposal of assets for less than fair

market value in financial assistance

programs

§17-675-66 Disposal of assets for less than fair

market value in the medical assistance

programs

§17-675-67 Disposal of assets for less than fair

market value in the food stamp program

Historical Note: This chapter is based substantially

upon Chapter 17-620 [Eff 7/19/82; am 11/16/82; am

12/21/82; am 6/30/83; am 11/12/83; am 2/17/84; am

8/2/84; am 10/1/84; am 11/13/84; am 12/24/84; am

4/20/85; am 8/29/85; am 12/1/85; am 1/3/86; am 4/21/86;

am 9/4/86; am 5/2/87; am 8/15/87; am 10/23/87; am

4/25/88; am 6/12/90; am 12/27/90; R 3/19/93 ],

Subchapter 1 of Chapter 17-717 [Eff 7/19/82; am

10/2/82; am 4/1/83; am 7/5/83; am 5/1/86; am 9/2/86; am

12/27/86; am 7/19/87; am 1/21/88; am 4/28/88; am

5/4/89; am 9/1/89; am 10/19/89; am 8/25/90; R 3/19/93],

§17-744-2 [Eff 7/19/82; am 8/23/84; am 6/23/86; am

8/13/87; am 10/23/87; am 6/11/88; am 11/25/88; am

4/15/89; am 10/1/89; R 3/19/93 ], §17-744-3 [Eff

7/19/82; am 8/23/84; R 3/19/93 ], Subchapter 3 of

Chapter 17-744 [Eff 7/19/82; am 8/20/83; am 10/14/83;

am 5/18/84; am 8/23/84; am 12/21/84; am 8/9/85; am

9/7/85; am 6/23/86; am 7/23/86; am 6/18/87; am 9/28/87;

am 10/23/87; am 11/25/88; am 4/15/89; am 10/1/89; am

6/12/90; am 10/4/90; am 3/21/91; R 3/19/93 ],

Subchapter 4 of Chapter 17-744 [Eff 7/19/82; am

8/20/83; am 8/20/84; am 4/17/86; am 6/18/87; am

0/23/87; am 6/11/88; am 5/13/91; R 3/19/93 ], and §17-

744-44 [Eff 7/19/82; am 3/28/83; am 9/29/86; am

10/23/87; am 2/22/88; am 6/6/89; am 10/1/89; am

10/4/90; R 3/19/93 ]

SUBCHAPTER 1

§17-675-2

675-5

GENERAL PROVISIONS

§17-675-1 Purpose. This chapter describes the

types and amount of assets that an individual or a

family may retain when establishing eligibility for

financial assistance or food stamps. [Eff 3/19/93; am

8/01/94 ] (Auth: HRS §346-53) (Imp: 7 C.F.R. §273.8;

45 C.F.R. §233.20)

§17-675-2 Definitions. For the purpose of this

chapter: "Asset" means cash and any other personal

property, as well as real property, that an individual

or family:

(1) Owns;

(2) Has the right, authority, or power to convert

to cash (if not already cash); and

(3) Is not legally restricted from using for the

individual's or family's support and

maintenance.

"Automobile" means a passenger car or other motor

vehicle used to provide transportation of persons or

goods.

“Domestic violence victim” means an individual who

has been battered or otherwise subjected to extreme

cruelty. Acts which constitute domestic violence

include but are not limited to the following:

(1) Physical acts that resulted in, or threatened

to result in, physical injury;

(2) Sexual abuse;

(3) Sexual activity involving a dependent child;

(4) Nonconsensual sexual acts;

(5) Threats of, attempts at, physical or sexual

abuse;

(6) Mental or emotional abuse;

(7) Medical care deprivation or neglect; or

(8) Stalking.

"Encumbrances" means a financial claim or lien

upon real or personal property.

"Equity" means fair market value minus

encumbrances against the property.

"Fair market value" means the amount for which an

item of real or personal property is expected to sell

§17-675-2

675-6

on the open market in the geographic area involved and

under the existing economic conditions.

"Family" means, for the financial assistance

programs only, any person or persons requesting or

receiving financial assistance payments.

"Financial institution" means any bank, savings

and loan association, credit union, or other similar

organization.

"Home" means a dwelling or shelter, including a

house, building, tent, motor vehicle, boat, or trailer,

which is used as the primary residence of an

individual, family, or household.

"Individual development account (IDA)" is a

special savings account held at a qualified financial

institution which has been established as a trust by or

on behalf of an individual eligible for assistance

under the AFDC program. An IDA is funded through

periodic contributions by the establishing individual

and those contributions are matched by or through a

non-profit organization. The purpose of an IDA is to

enable the individual to accumulate funds that can be

used only for post-secondary education, first home

purchase, or business capitalization.

"Joint tenancy" means equal, undivided interst in

real property by two or more persons throughout each

respective owner's life. Upon the death of an owner,

title automatically passes to the surviving owner or

owners. An owner may sell his or her interest in the

property without the consent of the others, but this

will break the joint tenancy and change the property

ownership to tenancy in common.

"Liquid asset" means, for the financial assistance

programs, cash and any other personal property that can

be quickly converted to cash. Examples are bank ac-

counts, bonds, and stocks. For the food stamp program,

"liquid asset" means cash and other assets excluding

personal property that can be quickly converted to cash

including, but not limited to, bank accounts, stocks,

bonds, and lump sum payments.

"Motor vehicle" means any car, truck, van, camper,

motorcycle, or mobile home.

"Nonliquid asset" means, for the food stamp

program only, assets that cannot be quickly converted

§17-675-4

675-7

to cash including, but not limited to personal

property, vehicles, buildings, and real property.

"Personal property" means any asset that is not

real property.

"Real property" means land, buildings and anything

else erected on or affixed to the land or buildings.

"SSI" mean the federal supplemental security

income program for the aged, blind, and disabled,

administered by the Social Security Administration.

"Student" means a child under age nineteen,

enrolled in a public or private elementary or secondary

school, or equivalent level of vocational or technical

training.

"Tenancy" means the right to possession of real

property or otherwise, permanently or temporarily, with

or without title to the property.

"Tenancy by the entirety" means the ownership of

real or personal property jointly by husband and wife,

acquired by the couple at the same time through the

same legal document. The right of survivorship is

automatic. Neither spouse can break the tenancy by

conveying or mortgaging his or her interest without the

consent of the other spouse. A lien cannot be placed

against the interest of an individual spouse in this

type of property ownership. The ownership changes to

tenancy in common with the dissolution of the marriage.

"Tenancy in common" means ownership of property

may not be equal. Each person's interest can be sold

without the consent of the other owners. [Eff 3/19/93;

am 2/7/94; am 8/01/94; am 12/15/95; am 11/22/96; am

01/22/02 ] (Auth: HRS §§346-14; 346-53) (Imp: HRS

§§346-14, 346-53, 346-71; 7 C.F.R. §273.8(c); 45 C.F.R.

§§233.20, 233.90)

§17-675-3 (Reserved).

SUBCHAPTER 2

PERSONAL RESERVE STANDARDS

§17-675-4 Personal reserve standards. (a) The

§17-675-4

675-8

personal reserve standard is the maximum amount of

countable assets that may be held by an individual, a

family, or a household while establishing or

maintaining eligibility for financial assistance or

food stamps.

(b) An individual, a family, or a household whose

equity in non-exempt assets exceeds the personal

reserve standard for financial assistance or food

stamps shall be ineligible for benefits from the

respective program or programs. [Eff 3/19/93; am

8/01/94] (Auth: HRS §346-14) (Imp: 7 C.F.R. §273.8; 45

C.F.R. §233.20)

§17-675-5 Personal reserve standards for

financial assistance. (a) For a family, applying for

or receiving financial assistance under the aid to

families with dependent children, the personal reserve

standard is $5,000.

(b) For an individual or couple who receives SSI

benefits or is applying for or receiving financial

assistance under the general assistance or aid to the

aged, blind, or disabled programs, the personal reserve

standards shall be equal to standards employed by the

SSI program. [Eff 3/19/93; am 1/25/97; am 9/26/97 ]

(Auth: HRS §346-53) (Imp: HRS §346-29; 45 C.F.R.

§233.20)

§17-675-6 REPEALED. [R 8/01/94 ]

§17-675-7 Personal reserve standards for food

stamps. (a) For a household applying for food stamps,

the personal reserve standards, which reflect the

uniform national resource standards of eligibility,

are:

(1) $2,000 per household; or

(2) $3,000 for a household in which one or more

members are age sixty or older. If the only

member of the household who is age sixty or

older is disqualified, the personal reserve

standard of the household shall be $2,000.

(b) Households that are categorically eligible

§17-675-14

675-9

for food stamps, as defined in chapter 17-663, are not

subject to the food stamp personal reserve standards

defined in subsection (a).

assistance (GA), supplemental security income (SSI) or

aid to families with dependent children (AFDC) benefits

shall be considered to be categorically asset eligible

for the food stamp program and that member's assets

shall not be included when the household's total assets

are calculated. [Eff 3/19/93; am 2/7/94; am 8/19/96 ]

(Auth: HRS §346-14) (Imp: 7 C.F.R. §273.8(a),(b))

§§17-675-8 to 17-675-12 (Reserved).

SUBCHAPTER 3

EVALUATION OF ASSETS

§17-675-13 Purpose. This subchapter describes

the individuals whose assets will be considered and

when those assets will be evaluated for eligibility

determination purposes. [Eff 3/19/93 ] (Auth: HRS

§§346-14, 346-53) (Imp: HRS §§346-29, 346-53; 45

C.F.R. §233.20)

§17-675-14 Evaluating assets for financial

assistance. (a) The assets of a recipient shall be

evaluated as of the first of the month for which

eligibility is being determined.

(b) The assets of an applicant shall be evaluated

as of the date of application for eligibility

determination purposes.

value of non-exempt assets shall not be rounded off.

(d) The assets of an SSI recipient shall not be

considered in determining eligibility for the

AFDC category for remaining members of the household.

(e) The assets of an SSI recipient shall be

considered in determining the recipient’s eligibility

for the General Assistance and state-funded assistance

for aged, blind, and disabled individuals.

§17-675-14

675-10

(f) When individuals in the household are

eligible for financial assistance in different

categories of assistance, the equity value of the asset

shall be assigned to the individual who has legal

ownership of the asset.

(g) Assets shall be considered part of the

personal reserve both when actually available and when

the applicant or recipient has a legal interest in a

liquidated sum and has the legal ability to make such

sum available for support and maintenance.

(h) Assets of both parents, natural, legal, or

adoptive, shall be considered available for each other

and the support of their children. The natural parent,

with no legal duty to support, who is not included in

the financial assistance payment shall be counted as a

member of the assistance household in determining

whether the assets are below the personal reserve

standard.

(i) Assets that are jointly held by an applicant

or recipient and other persons shall be considered

available, unless prohibited by the legal terms of

ownership or evidence is presented to confirm the

assets are not available to the applicant or recipient.

(j) All individuals shall apply for and develop

potential sources of assets. When the individual fails

to apply for or develop sources of assets, the

department shall:

(1) Consider the amount the individual is

entitled to receive in determining

eligibility for financial assistance when the

individual provides the department with

verification of the amount; or

(2) Deny or terminate financial assistance when

the individual fails to provide the

department with verification to determine the

amount of the asset.

(k) An individual or household who fails to

provide verification of the value of their assets shall

be ineligible for financial assistance.

(1) An individual or household shall be allowed

ten days to provide the necessary

verification of the value of the individual’s

or household’s assets; and

§17-675-15

675-11

(2) The deadline may be extended because of

factors beyond the individual’s or

household’s control. [Eff 3/19/93; am

9/26/97; am 1/17/08 ] (Auth: HRS §§346-29,

346-53, 346-71) (Imp: HRS §§346-29, 346-71;

45 C.F.R. §233.20)

§17-675-15 Special provision for financial

assistance programs only - assets of sponsor of an

alien. (a) The assets of a sponsor of an alien and

sponsor's spouse living with the sponsor shall be

deemed to be the assets of the alien requesting

financial assistance until such time as the alien

becomes a United States citizen.

(b) The amount of a sponsor's assets deemed

available to the alien shall be determined by:

(1) Establishing a value of all of the sponsor's

assets according to department standards; and

(2) Exempting $1,500 from the total value of the

sponsor's assets.

exceeds the alien's personal reserve standard according

to alien's family size, the alien shall be ineligible

for financial assistance.

(d) The alien's failure to provide information

and verification regarding the alien sponsor or alien

sponsor's assets shall disqualify the alien from

receiving financial assistance.

(e) Assets which are deemed to a sponsored alien

shall not be considered in determining the need of

other unsponsored members or the alien's family except

to the extent the assets are actually available to the

unsponsored aliens.

(f) The provisions of subsections (a),(b),(c),

and (d) do not apply to an alien who is:

(1) Admitted as a conditional entrant refugee to

the United States as a result of the

application prior to April 1, 1980, under the

provisions of section 203(a)(7) of the

Immigration and Nationality Act;

(2) Admitted to the United States as a result of

an application after March 31, 1980 under the

§17-675-15

675-12

provisions of section 207(c) of the

Immigration and Nationality Act;

(3) Paroled into the United States as a refugee

under section 212(d)(5) of the Immigration

and Nationality Act;

(4) Granted political asylum by the Attorney

General under section 208 of the Immigration

and Nationality Act;

(5) A Cuban or Haitian entrant as defined in

section 501(e) of the Refugee Education Act

of 1980, (Pub. L. No. 96-422);

(6) The dependent child of the sponsor or

sponsor's spouse when residing in the same

household as the sponsor; or

(7) A domestic violence victim as defined in

section 17-675-2 and the alleged perpetrator

of the violence is the alien’s sponsor. [Eff

3/19/93; am 9/26/97; am 01/22/02 ]

(Auth: HRS §346-53) (Imp: HRS §346-29; 45

C.F.R. §233.51)

§17-675-16 REPEALED. [R 8/1/94 ]

§17-675-17 REPEALED. [R 8/1/94 ]

§17-675-18 Evaluating assets for food stamps.

(a) The assets of all members of a food stamp

applicant household shall be considered as of the time

of the application interview. The household shall be

given an opportunity to update any changes in its

assets at the time of the application interview. A

determination that the household did not transfer

assets to become eligible for food stamp shall be made.

The updated information shall be used to determine

whether the household's assets are below the maximum

allowable asset retention limits. In the instance when

the asset level at the time of application is above the

maximum allowable level and the asset level at the time

of interview is below the maximum level, and the dates

of application and interview are in two different

months, the household will be denied for the month of

§17-675-18

675-13

application and certified eligible for the following

month.

(b) The assets of all members of a food stamp

recipient household are evaluated as of the first day

of the corresponding issuance month.

not be counted as available to the household.

(d) The assets of excluded household member shall

be counted as available to the remaining household

members.

(e) Assets owned jointly by separate households

shall be considered available in their entirety to each

household, unless the household can demonstrate that

the assets are inaccessible to the household. If the

household can demonstrate that it has access to only a

portion of the assets, that portion of the assets shall

be counted toward the household's personal reserve. The

assets shall be considered inaccessible to the house-

hold if the assets cannot be practically subdivided and

the household's access to the value of the assets is

dependent on the agreement of the joint owner who

refuses to comply. For the purpose of this provision,

ineligible aliens or disqualified individuals residing

with the household shall be considered household

members.

(f) The branch shall, in situations where the

household has received a nonrecurring lump sum payment

as specified in section 17-675-36(c), review the case

file to determine if the amount received in addition to

the amount of assets already listed in the case file

will exceed the asset limit for the household. If the

amount does not exceed the limit, the case file shall

be documented with the information received. No

further action shall be required. If the total amount

exceeds the allowable asset limitation, the household

shall be given an opportunity to update its entire

asset statement. If the household declines to do so or

the amount of assets still exceeds the limit, the

branch shall take action to terminate the household's

certification.

(g) Households who are categorically eligible as

defined in section 17-663-143 shall be considered to

have satisfied the resource eligibility criteria for

the food stamp program. The assets of any household

§17-675-18

675-14

member who receives general assisstance (GA) benefits,

supplemental security income (SSI) benefits under Title

XVI of the Social Security Act, or benefits under Part

A of Title IV of the Social Security Act (AFDC

benefits) shall not be considered when determining the

household's total assets. Jointly owned assets, which

are considered accessible to all of the owners and

which are jointly owned by members of a mixed food

stamp household where one or more of the owners are

categorically asset eligible and the rmaining owner or

owners are not recipients of AFDC, GA, or SSI benefits,

shall be prorated by the number of owners listed on the

asset. The prorated amount that is attributed to the

owners who are nonrecipients of AFDC, GA, or SSI

benefits shall be considered a countable asset when

determining the household's total assets. [Eff

3/19/93; am 2/7/94; am 8/19/96 ] (Auth: HRS §346-14)

(Imp: 7 C.F.R. §§273.8(d),(j), 273.10(b))

§17-675-19 Special provisions for food stamps -

commingled funds. (a) Liquid assets, as defined in

section 17-675-2 that are listed in sections 17-675-26

and 17-675-29, which are kept in a separate account and

are not commingled in an account with other nonexcluded

funds, shall retain the exclusion for an unlimited

period in spite of interest accruing. The interest

shall be counted as unearned income in the month

received and after that month, the interest shall be

counted as assets.

(b) The assets of students and self-employed

households which have been prorated, counted as income,

and commingled with nonexcluded funds shall retain the

exemption for the period over which the assets have

been prorated as income.

an account with nonexcluded funds shall retain their

exemption for six months from the date the moneys are

commingled. After six months from the date of

commingling, all funds in the commingled account shall

be counted as assets. Once excluded funds are

commingled their exemption shall last only six months,

even when the funds are subsequently placed in a

§17-675-26

675-15

separate account. [Eff 3/19/93; am 8/18/94 ] (Auth:

HRS §346-14) (Imp: 7 C.F.R. §273.8(f))

§§17-675-20 to 17-675-24 (Reserved).

SUBCHAPTER 4

ASSETS TO BE EXEMPTED

§17-675-25 Purpose. This subchapter describes

assets which are exempt in the determination of

eligibility for financial assistance and food stamps.

[Eff 3/19/93; am 8/1/94 ] (Auth: HRS §346-53) (Imp:

HRS §346-53)

§17-675-26 Assets to be exempted. (a) The

following assets shall be exempted from consideration

in the individual or family personal reserve:

(1) Basic maintenance items of limited value

essential to day-to-day living including but

not limited to clothing, furniture, stove,

refrigerator, or washing machine;

(2) All or a portion of the equity or market

value of an automobile as described in

subchapter 7;

(3) Any equity in the home which is the usual

residence of the individual, family, or

household;

(4) The value of the food stamp payments under

the Food Stamp Act of 1977 (7 U.S.C. §§2011-

2027);

(5) The value of the U. S. Department of

Agriculture donated foods (surplus

commodities);

(6) Any payment received under Title II of the

Uniform Relocation Assistance and Real

Property Acquisition Policies Act of 1970 (42

U.S.C. §§4601-4655);

(7) Payments distributed per capita to or held in

trust for a member of any Indian tribe under

§17-675-26

675-16

25 U.S.C. §§1179, 1261-1265, 1305, 1401-1407,

459-459e, and 1626 and Pub. L. No. 94-540.

Effective October 17, 1975, pursuant to Pub.

L. No. 94-114, §6 (89 Stat. 577, 25 U.S.C.

459(e) receipts distributed to members of

certain Indian tribes which are referred to

in Pub. L. No. 94-114, §5 (89 Stat. 577, 25

U.S.C. 459d);

(8) Certain Indian judgment funds, as provided

under Pub. L. No. 83-134, §7 and amended by

Pub. L. No. 458, §4 (25 U.S.C. §1407),

including those funds:

(A) Held in trust by the Secretary of the

Interior (including interest and

investment income accrued while such

funds are so held in trust); or

(B) Distributed per capita to a household or

member of an Indian tribe in accordance

with a plan prepared by the Secretary of

the Interior and not disapproved by a

joint resolution of the Congress; and

This exclusion does not apply to the

proceeds from the sale of initial

purchases or to funds or initial

purchases which are inherited or

transferred;

(9) All funds held in trust (including interest

and investment income accrued while the funds

were held in trust) by the Secretary of the

Interior for an Indian tribe, distributed per

capita to a household or member of an Indian

tribe and initial purchases made with such

funds as provided by Pub. L. No. 98-64, §2

(25 U.S.C. §1179). This exclusion does not

apply to proceeds from the sale of initial

purchases, subsequent purchases made with

funds derived from the sale or conversion of

initial purchases, or to funds or initial

purchases which are inherited or transferred;

(10) As provided by Pub. L. No. 100-241, §15 (43

U.S.C. §1626), any of the following

distributions made to a household, an

individual Native, or a descendant of a

§17-675-26

675-17

Native by a Native Corporation established in

accordance with the Alaska Native Claims

Settlement Act (Pub. L. No. 92-203 as

amended):

(A) Cash distributions (including cash

dividends on stock from a Native

Corporation) received by an individual

to the extent that such cash does not,

in the aggregate, exceed $2,000 in a

year. Cash which, in the aggregate, is

in excess of $2,000 in a year is not

subject to the above exclusion;

(B) Stock, including stock issued or

distributed by a Native Corporation as a

dividend or distribution of stock;

(D) Land or an interest in land, including

land or an interest in land received by

a Native Corporation as a dividend or

distribution of stock; and

(E) An interest in a settlement trust;

(11) Payments made to volunteers under the

Domestic Volunteer Service Act of 1973

(Volunteers In Service to America (VISTA)),

student volunteers enrolled in institutions

of higher education who participate in the

University Year for Action (UYA) program,

foster grandparents, senior health aides,

senior companions (42 U.S.C. §§4951-5085) and

under the Small Business Act (Service Corps

of Retired Executives (SCORE), and Active

Corps of Executives (ACE) (15 U.S.C. §637);

(12) Value of free school lunches, provided under

the Child Nutrition Act of 1966 and the

National School Lunch program (42 U.S.C.

§§1771-1789);

(13) Any meals provided to senior citizens, such

as congregate meals or home delivered meals

funded by the Older Americans Act of 1965 (42

U.S.C. §§3001-3057);

(14) Effective October 17, 1975, pursuant to Pub.

L. No. 94-114, §6 (89 Stat. 577, 25 U.S.C.

§459e) receipts distributed to members of

certain Indian tribes which are referred to

§17-675-26

675-18

in Pub. L. No. 94-114, §5 (89 Stat. 577, 25

U.S.C. §459d);

(15) Refunds of utility and rental deposits paid

by the department;

(16) Cash payments to the assistance unit

responsible for household bills by a non-unit

household member for his or her share of

common household expenses;

(17) Restitution payments provided under the Civil

Liberties Act of 1988, Title I of Pub. L. No.

100-383, and the Aleutian and Pribilof

Islands Restitution Act, Title II of Pub. L.

No. 100-383;

(18) Payments made from the Agent Orange

Settlement Fund or any other fund established

pursuant to the settlement in the In Re Agent

Orange product liability litigation, M.D.L.

No. 381 (E.D.N.Y.) effective to January 1,

1989;

(19) All student educational assistance benefits,

such as but not limited to, educational

grants, loans, scholarships, fellowships, and

deferred student loans;

(20) Assistance payments received as a result of a

declared federal major disaster or emergency

from the federal emergency management agency

(FEMA) and other comparable disaster

assistance provided by any state or local

government agency or disaster assistance

organizations;

(21) Payments received under the Radiation

Exposure Compensation Act (Pub. L. No. 101-

426) to compensate individuals for injuries

or deaths resulting from the exposure to

radiation from nuclear testing or uranium

mining;

(22) Payments made to individuals because of their

status as victims of Nazi persecution (Pub.

L. 103-286);

(23) Payments made to a victim of a crime by the

Criminal Injuries Compensation Commission.

If the compensation is kept in a separate

account and not commingled in an account with

other non-excluded funds it shall retain the

§17-675-27

675-19

exclusion for an unlimited period, even if

interest is accruing; and

(24) All funds held in an individual development

account (IDA) as defined in section 17-675-2.

(b) The following shall be exempted from

consideration in the individual or family personal

reserve for the financial assistance programs:

(1) Foster care payments to the foster care

provider;

(2) The assets of the foster child; and

(3) Bonafide loans from any source shall be

exempt from consideration in the individual's

or family's personal reserve. A bonafide

loan is a debt that the borrower has an

obligation to repay; and

(4) Earned income tax credits (EITC) for the

month in which an EITC payment is received

and for the following month.

shall be exempt from consideration in the individual or

family personal reserve:

(1) One wedding ring and one engagement ring; and

(2) Payments received by aged, blind, or disabled

individuals under paragraphs 500 to 506 of

the Austrian General Insurance Act.

(d) All of the funds in a checking or savings

account jointly held with one or more SSI recipients,

shall be exempt for federally funded AFDC purposes if

the funds in the account were counted for SSI purposes.

[Eff 3/19/93; am 2/7/94; am 8/1/94; am 12/15/95; am

9/26/97; am 7/16/99; am 01/22/02 ] (Auth: HRS §346-

53) (Imp: HRS §346-29; 7 C.F.R. §273.8(e); 45 C.F.R.

§233.20)

§17-675-27 Exemption of burial spaces and funeral

plans. (a) In the financial assistance programs, one

burial space, including plots, vaults, and niches, per

family member is exempt. In addition, bonafide funeral

plans or agreements up to a total of $1,500 of equity

value for each family member is exempt.

(b) In the food stamp program, one burial plot

per household member, except any amount that can be

withdrawn from a prepaid burial plan without a

§17-675-30

675-20

contractual obligation to repay, shall be excluded.

Funds from a prepaid burial plan that are borrowed or

used with an agreement to repay shall be considered a

loan. [Eff 3/19/93; am 8/01/94 ] (Auth: HRS §346-53)

(Imp: HRS §346-29; 7 C.F.R. §273.8; 45 C.F.R. §233.20)

§17-675-28 Special provision for financial

assistance programs only - temporary exemption of real

property other than the home. Real property not used

as a family home may be exempted for a period of six

months during which the family is making a good faith

effort to sell subject to the following provisions:

(1) The family shall sign a written agreement to

sell the real property and to repay the

amount of financial assistance received

during the six months that would not have

been paid had the real property been sold at

the beginning of the period;

(2) The family has five working days from the

date it realizes cash from the sale of the

property to repay the overpayment; and

(3) If the property was intentionally sold at

less than fair market value or if it is

otherwise determined that a good faith effort

to sell the property is not being made, the

overpayment amount shall be computed using

the fair market value determined at the

beginning of the conditional six-month

eligibility period. [Eff 3/19/93; am

3/14/94; am 9/26/97 ] (Auth: HRS §§346-29;

346-53) (Imp: HRS §§346-29.5, 346-53; 45

C.F.R. §233.20)

§17-675-29 Special provisions for the food stamp

program - other excluded assets. The following assets

are excluded in the food stamp program.

(1) Household goods, such as appliances,

furniture, and televisions;

(2) Personal effects, such as clothes, shoes, and

jewelry not intended for investments;

(3) The cash value of life insurance policies;

§17-675-30

675-21

(4) The cash value of pension plans or funds,

except for Keogh plans which involve no

contractual relationship with individuals who

are not household members;

(5) Property which annually produces income

consistent with its fair market value, even

if only used on a seasonal basis;

(6) Property such as farm land and rental homes,

except certain vacation homes, which is

essential to the employment or the self-

employment of a household member. Property

essential to the self-employment of a

household member engaged in farming shall

continue to be excluded for one year from the

date the household member stopped farming;

(7) Rental homes which are used by households for

vacation purposes at some time during the

year which annually produces income consist-

ent with the home's fair market value. The

equity value of a vacation home used part of

the year by the household which does not pro-

duce income consistent with the home's fair

market value shall be counted as a resource;

(8) Work related equipment, such as the tools of

a tradesperson or the machinery of a farmer,

which is essential to the employment or self-

employment of a household member;

(9) Installment contracts or an agreement of sale

for the sale of land or buildings if the

contract or agreement is producing income

consistent with its market value. The value

of the property sold under contract or held

as security in exchange for a purchase price

consistent with the fair market value of that

property is also excluded;

(10) Non-liquid assets against which a lien has

been placed as a result of taking out a

business loan and the household is prohibited

by the security or lien agreement with the

lien holder from selling the asset;

(11) Property, real or personal, to the extent

that it is directly related to the mainte

§17-675-30

675-22

nance or use of a vehicle excluded in

subchapter 7;

(12) Any governmental payments which are desig-

nated 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 include

those 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;

(13) Assets, such as those of students or self-

employed persons, which have been prorated

and counted as income;

(14) Monthly income including, but not limited to,

1earnings, SSI, or retirement, survivors, and

disability insurance (RSDI) payments directly

assigned to the banks. The income received

for that month shall be excluded in determin-

ing the resource amount for that month;

(15) Indian lands held jointly with the tribe, or

land that can be sold only with the approval

of the Bureau of Indian Affairs;

(16) Any benefits received in the form of earned

income tax credits (EITC) shall be considered

as excluded assets in the first two months of

the household's receipt of the EITC. The

first two months are defined as the month of

receipt and the following month. Any

remaining balance that is still available to

the household after these two months shall be

considered countable assets to the household.

Effective September 1, 1994, the EITC shall

be considered as excluded assets for a period

of twelve months from the month of receipt if

the individual receiving the EITC is partici-

pating in the food stamp program when the

EITC is received and participates continu-

ously during the twelve month period. Breaks

of one month or less due to administrative

reasons, such as delayed recertification,

shall not be considered as nonparticipation

§17-675-30

675-23

in determining the twelve month exclusion;

(17) The assets of any household member who

receives supplemental security income (SSI)

benefits under Title XVI of the Social

Security Act, aid to the aged, blind or

disabled under Title I, X, XIV, or XVI of the

Social Security Act, or benefits under Part A

of Title IV of the Social Security Act (AFDC

benefits); and

(18) Retirement funds in a plan, contract, or

account, described in sections 401(a),

403(a), 403(b), 408, 408A, 457(b), and

501(c)(18) of the Internal Revenue Code of

1986, and the value of funds in a Federal

Thrift Savings Plan count as provided in

section 8439 of title 5, United States Code;

(19) Any successor retirement programs or accounts

that are exempt from tax under the Internal

Revenue Code of 1986; and

(20) The value of any funds in a qualified tuition

program described in section 529 of the

Internal Revenue Code of 1986 or in a

Coverdell education savings account under

section 530 of the Internal Revenue Code of

1986. [Eff 3/19/93; am 2/7/94; am 8/18/94;

am 11/22/08 ] (Auth: HRS §346-14) (Imp: 7

C.F.R. §273.8; Pub. L. No. 110-246)

§17-675-30 Special provision for the food stamp

program - inaccessible assets. (a) If the cash value

of an asset is not accessible to the household,

including, but not limited to, irrevocable trust funds,

security deposits on rental property or utilities,

property in probate, and real property which the

household is making a good faith effort to sell at a

reasonable price, then the personal or real property

shall be exempted as an asset. The branch shall verify

that the property is for sale and the household has not

declined a reasonable offer. Verification shall be

obtained through a collateral contact or documentation,

such as an advertisement for public sale in a newspaper

of general circulation or a listing with a real estate

broker.

§17-675-30

675-24

(b) Any funds in a trust or funds transferred to

a trust, and the income produced by that trust to the

extent it is not available to the household shall be

considered inaccessible to the household if:

(1) The trust arrangement is not likely to 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;

(2) The trustee administering the funds is either

a court or an institution, corporation, or

organization, not under the direction or

ownership of any household member, or an

individual appointed by the court who has

court imposed limitations placed on the

individual's use of the funds which meet the

requirement of this paragraph;

(3) 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; and

(4) The funds held in irrevocable trust are

either:

(A) Established from a household's own

funds, if the trustee uses the funds

solely to make investments on behalf of

the trust or to pay the educational or

medical expenses of any person named by

the household creating the trust; or

(B) Established from nonhousehold funds by a

nonhousehold member.

persons residing in shelters for battered women and

children if:

(1) The assets are jointly owned by such persons

and by members of their former household;

(2) The shelter resident's access to the value of

the assets is dependent on the agreement of a

joint owner who still resides in the former

household.

(d) An asset shall also be considered inacces

sible if the household is unable to sell the asset for

any significant return to the household because the

§17-675-36

675-25

household's interest is relatively slight or because

the costs of selling the household's interest would be

relatively great. An asset shall be so identified if

its sale or any other disposition taken against that

asset is unlikely to produce any significant amount of

funds for the support of the household. The assets

affected by this subsection are all nonliquid assets,

except vehicles, as defined in section 17-675-2, and

does not apply to financial instruments such as stocks,

bonds, and negotiable financial instruments. In

determining whether the asset is to be exempted based

on this subsection, the following standard shall be

used:

(1) "Significant return" shall be any return,

after estimated costs of sale or disposition,

and taking into account the ownership

interest of the household, that is estimated

to be one-half or more of the applicable

resource limit for the household; and

(2) "Any significant amount of funds" shall be

funds amounting to one-half or more of the

applicable resource limit for the household.

[Eff 3/19/93; am 2/7/94; am 4/1/96 ] (Auth:

HRS §346-14) (Imp: 7 C.F.R. §273.8(e)(8))

§17-675-31 REPEALED. [R 8/1/94 ]

§§17-675-32 to 17-675-35 (Reserved).

SUBCHAPTER 5

ASSETS TO BE CONSIDERED

§17-675-36 Assets to be considered. (a) Unless

exempted in subchapter 4, the following assets shall be

considered in the individual or family personal

reserve:

(1) Cash on hand;

(2) Cash in savings and checking accounts;

§17-675-36

675-26

(3) Stocks and bonds. The individual shall

obtain verification of the value of stocks

and bonds from a stock brokerage firm;

(4) Time deposits and savings certificates. The

individual shall obtain verification of the

value of assets from the financial

institution where the funds are deposited;

(5) State tax refunds, including state excise tax

credits and state income tax credits;

(6) Governmental debenture bonds, such as savings

bonds, treasury notes, or municipal bonds.

The individual shall obtain verification of

the value of these assets from financial

institutions or stock brokerage firms;

(7) Mutual fund shares. The individual shall ob-

tain verification of the value of the mutual

fund shares from a stock brokerage firm;

(8) The equity in burial plots, funeral plans or

agreements, or burial vaults, not exempt in

section 17-675-27. Equity shall be

determined by subtracting all encumbrances

from the market value. The individual shall

provide verification of the equity value of

burial plots, funeral plans or agreements, or

burial vaults;

(9) The nonexempt value of motor vehicles;

(10) Any equity in real property not used as the

family home, not exempt in section 17-675-26

or 17-675-48;

(11) Moneys or assets in trust funds;

(A) For the financial assistance program

only, if an irrevocable trust is

involved or there is a legal impediment

to the current availability of money or

assets of the trust, the applicant,

recipient, or trust owner shall execute

an agreement to allow the department of

human services to institute proceedings

for disbursement of moneys from the

trust. The department of attorney

general shall represent the department

of human services in the proceedings.

The applicant, recipient, or trust

owner’s failure to execute the agreement

§17-675-36

675-27

to obtain moneys or assets from the

trust shall make the applicant,

recipient, or trust owner ineligible for

financial assistance.

(B) The provision in subparagraph (A) does

not apply to the food stamp program;

(12) Stocks or equity in any profit sharing plan.

(A) The value of any profit sharing plan

shall not be counted as an asset as long

as the individual continues to be

employed by the firm which controls the

profit sharing plan. Any payments made

to the individual or family from the

profit sharing plan shall be counted as

part of the personal reserve.

(B) For the food stamp program, profit

sharing plan shall be counted as a

resource if the cash value is

accessible. The cash value of any

profit sharing plan shall not be counted

as a resource if the cash value is

inaccessible as specified in section

17-676-30(a).

individual has terminated employment and

receives the profit sharing funds as a

nonrecurring lump sum payment, then the

payment shall be counted as resource as

specified in section 17-676-36(c).

(13) Money received by the individual or family

from the sale of assets shall be counted as

part of the personal reserve;

(14) Investments in diamonds, gold, silver, or

other precious metals;

(15) The equity value of any assets not exempt

under sections 17-675-26, 17-675-27,

17-675-28, and 17-675-29. The individual

shall submit verification of the value of

these assets;

(16) Federal tax refunds;

(17) Refunds of utility and rental deposits not

paid by the department.

§17-675-36

675-28

(b) For the financial assistance programs, the

following assets shall be considered in the individual

or family personal reserve:

(1) The equity value of life insurance policies.

Equity value of a life insurance policy shall

be determined by subtracting any outstanding

loans or encumbrances from the cash value of

the policy. The individual shall obtain

verification of the equity value of the

policy from the insurance company;

(2) Any equity in personal property, such as

jewelry, a boat, or boat trailer, not exempt

in subchapter 4;

(3) Any equity in any business;

(4) The dollar value of interest received by the

family or credited to any accounts for the

family from banks, loans, or other sources;

and

(5) Cash dividends from stocks, life insurance,

or other sources.

curring lump sum payments, such as, but not limited to

the following, shall be considered as countable assets

to the food stamp household in the month received

unless specifically excluded from consideration as an

asset by other federal law:

(1) Retroactive payments for past months, such as

social security, SSI, public assistance,

railroad retirement benefits, unemployment

compensation benefits, Department of Housing

and Urban Development rental refund payments,

or other payments;

(2) Retroactive annual adjustment payments in the

veteran administration's (VA) disability

pensions; and

(3) Lump sum insurance settlements.

Nonrecurring lump sum payments are defined as one-time

payments to the food stamp household. [Eff 3/19/93; am

2/7/94; am 8/1/94; am 2/10/97; am 01/22/02 ] (Auth:

HRS §§346-53, 346-71) (Imp: HRS §§346-29, 346-71; 7

C.F.R §273.8; 45 C.F.R. §233.20)

§17-675-36

675-29

§17-675-37 Determining equity in any business for

the financial assistance programs. (a) Equity in a

business shall be determined by subtracting current

liabilities from the current book value of the assets.

(b) The department shall exempt the following

assets essential to the production of goods or services

in determining equity in a business:

(1) Stock and inventory;

(2) Tools and equipment; and

(3) Motor vehicles required for use in the

business.

responsible for submitting the applicant's or

recipient's information to the department.

(d) Failure on the part of the applicant or

recipient to provide information to determine the

interest in a business shall disqualify the individual

from receiving financial assistance. [Eff 3/19/93; am

2/7/94; am 8/1/94 ] (Auth: HRS §346-53; 45 C.F.R.

§233.20) (Imp: HRS §§346-29, 346-53; 7 C.F.R. §273.8;

45 C.F.R. §233.20)

§§17-675-38 to 17-675-42 (Reserved).

SUBCHAPTER 6

EVALUATION OF REAL PROPERTY

§17-675-43 Equity value of real property. (a)

The equity value of real property shall be determined

by subtracting all encumbrances from the fair market

value.

(b) The equity value of any real property not

designated within this chapter to be exempt shall be

considered assets countable toward the family's or

household's personal reserve. [Eff 3/19/93 ] (Auth:

HRS §346-53) (Imp: HRS §346-29; 7 C.F.R §273.8 (c); 42

C.F.R. §431.10; 45 C.F.R. §233.20)

§17-675-44

675-30

§17-675-44 Treatment of some special forms of

ownership of real or personal property. (a) The fair

market value of the individual's interest in property

shall be determined on a case-by-case basis by

considering the following variables:

(1) Geographic location;

(2) Land use (developed, undeveloped, income-

producing, etc.);

(3) Amenities (utility hookups, access to public

roads, etc.);

(4) Land configuration (flag lot, landlocked,

etc.);

(5) Marketability; and

(6) Type of ownership.

(b) Acceptable verification of the fair market

value includes:

(1) A current sales agreement provided the

selling price reflects the current property

appraisal or an accurate valuation of the

property;

(2) A licensed realtor's written statement which

reflects an asessment of each of the

variables in paragraph (a);

(3) A licensed appraiser's current valuation of

the property; or

(4) The current property tax assessment if the

applicant or recipient feels that it

represents an accurate valuation of the

property.

property shall be determined as a separate unit, on a

case-by-case basis by considering the variables listed

in subsection (a).

(1) The current value of property under an

agreement of sale shall be allocated between

the buyer and seller in accordance with their

respective interests as follows:

(A) The buyer's interest shall be the fair

market value of the real property minus

the balance due on the agreement of

sale; and

(B) The seller's interest shall be the

balance on the agreement of sale.

§17-675-46

675-31

(2) The current value of property subject to life

estates with remainder interest shall be

allocated between the life tenant and the

remaindermen by determining the present worth

of their respective interests using the

Social Security Life Estate and Remainder

Interest Table (attached at the end of this

chapter).

(3) For the financial assistance programs only,

the treatment provided in this section is

complemented by the procedures set forth in

this chapter for providing financial

assistance pending removal of legal

impediments to ownership of real property and

through use of real property liens. [Eff

3/19/93; am 5/27/97 ] (Auth: HRS §346-53)

(Imp: HRS §346-53; 7 C.F.R. §273.8; 42 C.F.R

§435.851; 45 C.F.R. §233.20)

§17-675-45 Special provision for financial

assistance programs - real property liens. (a) The

department shall require a lien on real property not

used as a home by the applicant or recipient, pursuant

to section 346-29.5, H.R.S., when financial assistance

is provided pursuant to section 17-675-28.

(b) The lien shall be for all amounts of

financial assistance provided to the family, subject to

all the provision of section 346-29.5, HRS. [Eff

3/19/93 ] (Auth: HRS §346-29.5) (Imp: HRS §346-29.5)

§17-675-46 Special provision for financial

assistance programs - eligibility pending removal of

legal impediments to ownership of real property. (a)

Financial assistance shall be provided to an otherwise

eligible individual or family while legal impediments

to ownership of real property not used as a home are

being removed, on condition the individual or family:

(1) Agrees, within thirty days of the date the

family is notified of the requirement, to

execute a lien on the property as required by

paragraph (3);

§17-675-46

675-32

(2) Submits a plan of action, within thirty days

of the date the family is notified of the

requirement, to remove the legal impediments

to ownership of real property; and

(3) Executes the real property lien within ninety

days of the date the family is notified of

the requirement.

(b) Failure to meet these deadlines shall

disqualify the individual or family from receiving

further financial assistance, and financial assistance

provided shall constitute an ineligible payment

recoverable by the department.

plan of action and a recipient's failure to take

appropriate action shall disqualify the recipient from

further financial assistance. [Eff 3/19/93; am

1/30/95] (Auth: HRS §§346-53, 346-29.5) (Imp: HRS

§§346-53, 346-29.5; 45 C.F.R. §233.20)

§17-675-46.01 Special provisions for financial

assistance programs only - temporary exemption of real

property other than the home. Real property not used

as a family home may be exempted for a period of six

months during which the family is making a good faith

effort to sell subject to the following provisions:

(1) The family shall sign a written agreement to

sell the real property and to repay the

amount of financial assistance received

during the six months that would have been

paid had the real property been sold at the

beginning of the period;

(2) The family has five working days from the

date it realizes cash from the sale of the

property to repay the overpayment; and

(3) If the property was intentionally sold at

less than fair market value or if it is

otherwise determined that a good faith effort

to sell the property is not being made, the

overpayment amount shall be computed using

the fair market value determined at the

beginning of the conditional six-month

eligibility period. [Eff 9/26/97 ] (Auth:

§17-675-48

675-33

HRS §§346-29; 346-53) (Imp: HRS §§346-29.5,

346-53; 45 C.F.R. §233.20)

§17-675-47 REPEALED. [R 8/01/94 ]

§17-675-48 Real property used as a home. (a)

Real property, which is considered the home or usual

place of residence of the applicant or recipient family

or household, is generally exempt from consideration as

a countable asset.

(b) For the financial assistance programs, the

exemption of home property is limited to the parcel of

land and a single structure, which is considered the

usual residence of the family. Any other structure or

structures on the parcel of land are not included in

the home property exemption.

(1) For the purposes of this subsection, whether

an applicant or recipient is living on or

away from real property shall determine

whether the real property is to be considered

home property or not, irrespective of the

form of the individual's interest such as a

life tenant, remainderman, a buyer or seller

under an agreement of sale, settler or

beneficiary under a trust, or any other form

of lesser or divided interest.

(2) Any interest in any real property owned by an

individual living in a domiciliary care home

shall be considered as real property not used

as the family home.

generally consists of the structure in which the

household resides and the land immediately surrounding

the structure. Land, separated from the home by

intervening property, not public rights of way but land

owned by other parties, shall not be considered part of

the home.

(1) Provided the household members intend to

return, the home property shall remain exempt

when temporarily not occupied for reasons of

employment, training for future employment,

§17-675-48

675-34

illness, or uninhabitability caused by

casualty or natural disaster.

(2) If any part of the home property is rented,

the income producing test normally required

to exempt such real property shall not apply.

The entire parcel of real property, provided

it remains the home of the household, shall

continue to be exempt.

(3) If a household does not already own a home,

the value of land purchased for the purpose

of building a structure to be the home of the

household shall be exempted. If the building

which will be the household's home is

partially completed, the value of the

structure shall be exempt.

(4) Other structures, which are located either on

the same or on a contiguous lot as the

household's first home, that are designed,

converted, or remodeled into a dwelling unit

that is or can be used in whole or in part as

a home, residence, or sleeping place by one

or more individuals shall be counted towards

the household's assets unless the structure

can be excluded under one of the other asset

exemptions listed in this section.

(A) These other structures, excluding

vehicles, can be permanent or mobile in

nature;

(B) The structure shall be considered exempt

if a member of the food stamp household

is residing in this other structure

because of space limitations in the

household's first home. [Eff 3/19/93;

am 8/01/94; am 12/9/94 ] (Auth: HRS

§346-53) (Imp: HRS §346-53; 7 C.F.R

§273.8(e); 45 C.F.R. §233.20)

§17-675-49 Special provision for the food stamp

program - income producing property. (a) For the food

stamp program, equity in real property which annually

produces income consistent with its fair market value,

even if only used on a seasonal basis are exempt

assets.

§17-675-49

675-35

(1) Property such as farm land and rental home,

except certain vacation homes, which is

essential to the employment or self-employ-

ment of a household member are exempt.

Property essential to the self-employment of

a household member engaged in farming shall

continue to be excluded for one year from the

date the household member stopped farming.

(2) Rental homes which are used by households for

vacation purposes at some time during the

year which annually produces income

consistent with the home's fair market value

shall be exempt. The equity value of a

vacation home used part of the year by the

household which does not produce income

consistent with the home's fair market value

shall be counted as part of the household's

personal reserve.

(b) When it is necessary to determine if property

is producing income consistent with its fair market

value, the branch shall contact local realtors, local

assessors, the Small Business Administration, the

Farmer's Home Administration, or other similar sources

to determine the prevailing rate of return, for

example, square foot rental for similar usage of real

property in the area.

not producing income consistent with its fair market

value, for example, the property is being leased for a

token payment, the equity amount of the property shall

be counted as an asset. However, if the property is

leased for a return that is comparable to other

property in the area leased for similar purposes, it

shall be considered as producing income consistent with

its fair market value and shall not be considered an

asset.

(d) All findings shall be thoroughly documented

in the case file.

(e) Property exempt as essential to employment

need not be producing income consistent with its fair

market value. For instance, the land of a farmer is

essential to the farmer's employment and a good or bad

crop year shall not affect the exemption of the

§17-675-49

675-36

property as an asset. [Eff 3/19/93 ] (Auth: HRS §346-

14) (Imp: 7 C.F.R. §273.8(e))

§§17-675-50 to 17-675-54 (Reserved).

SUBCHAPTER 7

EVALUATION OF MOTOR VEHICLES

§17-675-55 Evaluation of automobiles and

treatment of the values in the financial assistance

programs. (a) For those eligible for GA or AABD, one

automobile owned by the individual shall be exempt if

it is:

(1) Necessary for employment;

(2) Necessary for the treatment of a specific or

regular medical problem;

(3) Utilized to transport a disabled person; or

(4) Necessary for daily use.

(b) If no automobile is exempt under the

provisions of subsection (a), the first $4,500 of the

fair market value of one automobile is excluded.

Equity value is not a consideration for purposes of

this exclusion.

regardless of value shall be disregarded and not

included in the personal reserve.

(d) The equity value of any other automobile owned by

the individual or family shall be considered in the

individual's or family's personal reserve.

(e) The equity value of an automobile shall be

determined by subtracting all encumbrances from the

fair market value of the vehicle. If an automobile is

equipped with apparatus for the handicapped, the

apparatus shall not increase the value of the vehicle.

(f) The fair market value of the automobile shall

be determined by considering:

(1) The Kelly blue book retail value;

(2) Newspaper advertisements on the retail value

for the same make, model, size, year, and

condition of the automobile; or

§17-675-57

675-37

(3) Opinions of retail value by qualified

automobile appraisers.

(g) The equity value of automobiles owned or

registered jointly by a member of the assistance unit

and non-members, including SSI recipients, shall be

determined by dividing the equity value by the number

of legal or registered owners. If a legal impediment

exists, the equity value shall be exempt. [Eff

3/19/93; am 8/1/94; am 12/15/95; am 1/25/97; am

9/26/97] (Auth: HRS §346-53) (Imp: HRS §346-29; 45

C.F.R. §233.20; 47 Fed. Reg. 5674; Waiver Terms and

Conditions, August 16, 1996, Administration for

Children and Families - Department of Human Services)

§17-675-56 REPEALED. [R 8/1/94 ]

§17-675-57 Exempt motor vehicles in the food

stamp program. (a) The entire value of any licensed

vehicle, including, but not limited to, a taxi,

tractor, or fishing boat, shall be totally exempt if

the vehicle:

(1) Is used primarily (over fifty per cent of the

time the vehicle is used) for income

producing purposes. Licensed vehicles which

have previously been used by a self-employed

household member engaged in farming but are

no longer used over fifty percent of the time

in farming because of the termination of the

member's self-employment from farming shall

continue to be excluded as a resource for one

year from the date of termination of the

household member's self-employment from

farming;

(2) Annually produces income consistent with its

fair market value, even if used only on a

seasonal basis;

(3) Is necessary for long distance travel, other

than daily commuting, that is essential to

the employment of a household member (or an

ineligible alien or disqualified person whose

resources are being considered available to

the household). For example, the vehicle of

§17-675-57

675-38

a traveling sales person or a household

member who would be fired or not hired if a

vehicle could not be provided shall be

exempted;

(4) Is necessary for subsistence, hunting, or

fishing, such as a snowmobile in the remote

areas of Alaska;

(5) Is currently used as the household's home;

(6) Is necessary to transport a physically

disabled household member (or an ineligible

alien or disqualified person whose resources

are being considered available to the

household) regardless of the purpose of the

transportation.

(A) One vehicle shall be excluded for each

physically disabled person.

(B) A vehicle is excluded if the vehicle is

specially equipped to meet the specific

needs of the disabled person or if the

vehicle is a special type of vehicle

that makes it possible to transport the

disabled person.

specially equipped or used for

particular purposes.

(D) The vehicle need not be exclusively or

primarily used by the physically

disabled household member since a

vehicle may be necessary for a

physically disabled person even if other

household members also use the vehicle.

(E) A household with a member who has a

temporary physical disability is also

entitled to the resource exclusion of

the value of a vehicle used to transport

the disabled member. If the disabled

person loses the disability during the

certification period, the household

shall be required to report the change

in circumstances; or

(7) Is necessary to transport fuel for heating or

water for home use when such transported fuel

or water is the primary source of fuel or

water for the household.

§17-675-58

675-39

(b) The vehicle exemption shall also apply during

temporary periods of unemployment when the vehicle is

not in use. For example, when a taxi driver is ill or

a fishing boat is frozen in the harbor, the vehicles

shall be exempted.

include:

(1) One licensed vehicle for each household other

than those exempted in subsection (a);

(2) Any additional licensed vehicle necessary for

household members (or an ineligible alien or

disqualified person whose resources are being

considered available to the household) to

accept or continue employment, seek employ-

ment, or to attend training or school

preparatory to employment. A vehicle

customarily used to commute to and from

employment shall be excluded by this

provision during temporary periods of

unemployment; and

(3) Vehicles excluded in subsection (a). [Eff

3/19/93; am 8/18/94 ] (Auth: HRS §346-14)

(Imp: 7 C.F.R. §273.8(h))

§17-675-58 Evaluation of non-income producing

licensed motor vehicles in the food stamp program. (a)

All licensed vehicles, except boats, not excluded under

section 17-675-57 shall individually be evaluated for

fair market value, as discussed in subsection (d). That

portion of the value of an individual vehicle which

exceeds $4,650 shall be attributed in full toward the

household's resource level, regardless of any

encumbrances on the vehicle, unless the vehicle has

both fair market value and equity value. The value of

two or more vehicles shall not be added together to

obtain a total fair market value in excess of $4,650.

For example, a household may own a car with a fair

market value of $5,500. Since the value of the car is

in excess of $4,650, the amount in excess, $850, shall

be added to the household's resource level. A

household may own two cars and no other resource. One

car has a fair market value of $3,000 and the other

$4,000. If both cars are exempt for equity value, then

§17-675-58

675-40

the household has no resource according to the fair

market value test.

(b) All non-income producing licensed vehicles

shall be individually evaluated for the equity value

except for the vehicles exempted in section 17-675-57.

market value in excess of $4,650, as in subsection (a),

and an equity value, only the greater of the two

amounts shall be counted as a resource. For example, a

household has two cars. The second car is not used for

commuting to work. The fair market value is $5,000 and

the household has paid $1,000 on the loan. The excess

fair market value is $450 and the equity value is

$1,000. The $1,000 which is the greater of the two

shall be counted towards the household's resource level

and the $450 excess fair market value shall not be

counted.(

d) The fair market value of licensed automobiles,

trucks, and vans shall be determined by the wholesale

value of those vehicles as listed in publications

written for the purpose of providing guidance to

automobile dealers and loan companies. Publications

listing the value of vehicles are usually referred to

as "blue books." The blue book shall be used and

updated every six months.

(1) The branch shall assign the wholesale value

to vehicles. If the term "wholesale value"

is not used in a particular blue book, the

branch shall assign the listed value which is

comparable to the wholesale value. The basic

value of a vehicle shall not be increased by

adding the low mileage, or other factors such

as optional equipment. A household may

indicate that for some reason, such as body

damge or inoperability, a vehicle is in less

than average condition. Any household which

claims that the blue book value does not ap-

ply to its vehicle shall be given the oppor-

tunity to acquire verification of the true

value from a reliable source such as a used

car dealer.

(2) Households shall be asked to acquire verifi-

cation of the value of licensed antique, cus

§17-675-59

675-41

tom made, or classic vehicles, if the branch

is unable to make an accurate appraisal.

(3) If a vehicle is specially equipped with

apparatus for the handicapped, the apparatus

shall not increase the value of the vehicle.

The blue book value shall be assigned as if

the vehicle was not so equipped.

(4) If a vehicle is no longer listed in the blue

book, the household's estimate of the value

of the vehicle shall be accepted, unless the

branch has reason to believe that the esti-

mate is incorrect. If it appears that the

vehicle's value will affect eligibility, the

household shall obtain an appraisal or pro-

duce other evidence of its value, such as a

tax assessment or a newspaper advertisement

indicating the sale price of similar

vehicles.

(5) If a new vehicle is not yet listed in the

blue book, the branch shall determine the

wholesale value through some other means such

as contacting a new car dealer which sells

that make of vehicle. [Eff 3/19/93; am

8/18/94; am 4/1/96; am 10/28/96 ] (Auth: HRS

§346-14) (Imp: 7 C.F.R. §273.8(g) and (h);

Pub. L. No. 104-193 (1996))

§17-675-59 Unlicensed vehicles in the food stamp

program. Unlicensed vehicles, unless exempt as

described in section 17-675-57(a) shall be evaluated

for equity value. The equity value shall be attributed

toward the household's resource level. If an

unlicensed vehicle is a "junker," not running, half the

frame and parts not intact, etc., thus having no fair

market value, then the vehicle shall have no equity

value and therefore, no value as assets. [Eff 3/19/93;

am 12/9/94 ] (Auth: HRS §346-14) (Imp: 7 C.F.R.

§273.8(c)(2))

§§17-675-60 to 17-675-64 (Reserved).

§17-675-65

675-42

SUBCHAPTER 8

DISPOSAL OF ASSETS

§17-675-65 Disposal of assets for less than fair

market value in financial assistance programs. (a)

Any applicant who disposed of any assets valued at an

aggregate of more than $5,000, for less than fair

market value, within the preceding twenty-four months

shall be ineligible for financial assistance if the

applicant disposed of the assets for the purpose of

establishing eligibility for financial assistance.

(1) Any such disposal shall be presumed to be for

the purpose of establishing eligibility for

financial assistance unless the applicant

proves by a preponderance of evidence that

the transfer was for some other purpose;

(2) The value of the asset shall be the fair

market value at time of disposal less the

amount of compensation received for the

asset, if any; and

(3) The period of ineligibility shall be

determined by dividing the proceeds for the

liquidated property that would have been used

to meet the applicant's needs by two hundred

per cent of the department's standard of

assistance for the family in the month of

application. The standard of assistance

shall be 62.5 per cent of the standard of

need as defined in section 17-678-4. The

period of ineligibility shall be not more

than twenty-four months.

(b) Any recipient who disposes of any assets

valued at an aggregate of more than $5,000 for less

than fair market value, shall be ineligible for

financial assistance for the period of time the

proceeds for the liquidated property would have been

used to meet two hundred per cent of the family's needs

according to the department's standard of assistance

for the family. The period of ineligibility shall be

not more than twenty-four months. [Eff 3/19/93; am

9/26/97 ] (Auth: HRS §346-53) (Imp: HRS §§346-34,

346-53)

§17-675-67

675-43

§17-675-66 REPEALED. [R 8/1/94 ]

§17-675-67 Disposal of assets for less than fair

market value in the food stamp program. (a) At the

time of application, households shall be asked to

provide information regarding any resources which any

household members (or ineligible alien or disqualified

person whose resources are being considered available

to the household) had transferred, including, but not

limited to, bank accounts, title on a car, a trust, or

property which is not producing income equal to the

fair market value, within the three-month period

immediately preceding the date of application.

Households which have knowingly transferred resources

for the purpose of qualifying or attempting to qualify

for food stamp benefits shall be disqualified from

participation in the FSP for up to one year from the

date of the discovery of the transfer. This

disqualification period shall be applied if the

resources were transferred knowingly in the three-month

period prior to application or if the resources were

transferred knowingly after the household was

determined eligible for benefits.

(b) Eligibility for the program shall not be

affected by the following transfers:

(1) Resources which do not otherwise affect

eligibility;

(2) The sale or trade of resources at or near

fair market value; and

(3) Resources transferred between members of the

same household (including ineligible aliens

or disqualified persons whose resources are

being considered available to the household)

or transferred for reasons other than

attempting to qualify for FSP benefits.

a household determined to have knowingly transferred

resources for the purpose of qualifying or attempting

to qualify for FSP benefits shall be based on the

amount by which the transferred resources, when added

to other countable resources, exceeds the allowable

resource limits. The following amounts shall be used

to determine the period of disqualification:

§17-675-67

675-44

Amount in Excess of Period of

the Resource Limit Disqualification

$ 0 - 249.99 1 month

250 - 999.99 3 months

1,000 - 2,999.99 6 months

3,000 - 4,999.99 9 months

5,000 and up 12 months

For example, if a one person household with $1,750 in a

bank transferred ownership of a car worth $5,000, only

$250 would be considered as in excess of the resource

limit. The first $4,500 of the car's fair market value

is exempt, then $250 of the transferred asset is

applied toward the $2,000 resource limit which leaves

$250 as the amount in excess of the resource limit. The

household shall be disqualified for three months for

transferring a resource of $250.

(d) If the branch establishes that an applicant

household knowingly transferred resources for the

purpose of qualifying or attempting to qualify for food

stamp benefits, the branch shall send the household a

notice of denial explaining the reason for and length

of the disqualification. The period of

disqualification shall begin in the month of

application. If the household is participating at the

time of the discovery of the transfer, a notice of

adverse action explaining the reason for and length of

the disqualification shall be sent. The period of

disqualification shall be effective with the first

allotment issued after the adverse action notice period

has expired, unless the household requests a fair

hearing and continued benefits. [Eff 3/19/93; am

8/18/94 ] (Auth: HRS §346-14) (Imp: 7 C.F.R.

§273.8(i))

675-45

SOCIAL SECURITY LIFE ESTATE AND

REMAINDER INTEREST TABLES

49 Federal Register Vol. 49 No. 93 05/11/84

AGE LIFE ESTATE REMAINDER

0 .97188 .02812

1 .98988 .01012

2 .99017 .00983

3 .99008 .00992

4 .98981 .01019

5 .98938 .01062

6 .98884 .01116

7 .98822 .01178

8 .98748 .01252

9 .98663 .01337

10 .98565 .01435

11 .98453 .01547

12 .98329 .01671

13 .98198 .01802

14 .98066 .01934

15 .97937 .02063

16 .97815 .02185

17 .97700 .02300

18 .97590 .02410

19 .97480 .02520

20 .97365 .02635

21 .97245 .02755

22 .97120 .02880

23 .96986 .03014

24 .96841 .03159

675-46

AGE LIFE ESTATE REMAINDER

25 .96678 .03322

26 .96495 .03505

27 .96290 .03710

28 .96062 .03938

29 .95813 .04187

30 .95543 .04457

31 .95254 .04746

32 .94942 .05058

33 .94608 .05392

34 .94250 .05750

35 .93868 .06132

36 .93460 .06540

37 .93026 .06974

38 .92567 .07433

39 .92083 .07917

40 .91571 .08429

41 .91030 .08970

42 .90457 .09543

43 .89855 .10145

44 .89221 .10779

45 .88558 .11442

46 .87863 .12137

47 .87137 .12863

48 .86374 .13626

49 .85578 .14422

50 .84743 .15257

51 .83674 .16126

52 .82969 .17031

53 .82028 .17972

54 .81054 .18946

675-47

AGE LIFE ESTATE REMAINDER

55 .80046 .19954

56 .79006 .20994

57 .77931 .22069

58 .76822 .23178

59 .75675 .24325

60 .74491 .25509

61 .73267 .26733

62 .72002 .27998

63 .70696 .29304

64 .69352 .30648

65 .67970 .32030

66 .66551 .33449

67 .65098 .34902

68 .63610 .36390

69 .62086 .37914

70 .60522 .39478

71 .58914 .41086

72 .57261 .42739

73 .55571 .44429

74 .53862 .46138

75 .52149 .47851

76 .50441 .49559

77 .48742 .51258

78 .47049 .52951

79 .45357 .54643

80 .43659 .56341

81 .41967 .58033

82 .40295 .59705

83 .38642 .61358

84 .36998 .63002

675-48

AGE LIFE ESTATE REMAINDER

85 .35359 .64641

86 .33764 .66236

87 .32262 .67738

88 .30859 .69141

89 .29526 .70474

90 .28221 .71779

91 .26955 .73045

92 .25771 .74229

93 .24692 .75308

94 .23728 .76272

95 .22887 .77113

96 .22181 .77819

97 .21550 .78450

98 .21000 .79000

99 .20486 .79514

100 .19975 .80025

101 .19532 .80468

102 .19054 .80946

103 .18437 .81563

104 .17856 .82144

105 .16962 .83038

106 .15488 .84512

107 .13409 .86591

108 .10068 .89932

109 .04545 .95455