10A NCAC 71W .0407      RESERVE

(a)  An AFDC assistance unit shall be allowed to reserve resources at a maximum of one thousand dollars ($1,000).  If the reserve level exceeds one thousand dollars ($1,000), the unit is ineligible.

(b)  Only resources that are currently available to the assistance unit shall be counted.  For applications, only those resources that are available during any month prior to disposition are counted to determine eligibility for those months.

(c)  Individuals whose reserve is counted.  Resources owned by budget unit members shall be counted as follows:

(1)           Parent.  Count unless she receives SSI.

(2)           Minor Mother.  Count unless she receives SSI.

(3)           Stepparent.  If the stepparent is included in the payment, his resources shall be counted.  If he is not included, but the parent has access to joint resources, half of the resources shall be counted.

(4)           Specified Relative.  If the specified relative is included in the payment, his resources shall be counted.  Otherwise his resources shall not be counted.

(5)           Child.  If the child is included in the payment, his resources shall be counted.

(6)           Essential Person.  If an essential person is included in the payment, his resources shall be counted.  Otherwise, his resources shall not be counted.

(7)           Jointly owned resources.

(A)          If a budget unit member owns resources jointly with another public assistance recipient, his share shall be counted as an available resource.  The resource shall be divided equally among the owners unless the owners have a signed agreement specifying division.

(B)          If a budget unit member owns resources jointly with a non‑assistance recipient, and he can dispose of the resource without the consent of the other owner, his share shall be counted as an available resource.  The resource shall be divided equally among the owners unless they have a signed agreement specifying division.

(C)          If a budget unit member owns resources jointly with a non‑assistance recipient, and he cannot dispose of the resource without the consent of the other owners, it shall be determined whether the non‑assistance recipient consents to the disposal of the resource.

(i)            If he consents, the budget unit member's share of the resource shall be counted.  Resources shall be divided equally among the owners unless they have a signed agreement specifying division.

(ii)           If he refuses, the budget unit member's share shall not be counted.

(d)  Reserve; items counted:

(1)           cash on hand, including lump sum payments received from the sale of an asset or an income tax refund;

(2)           the current balance of savings accounts;

(3)           that portion of a checking account other than the monthly income deposited to meet the family's needs;

(4)           cash value of life insurance policies;

(5)           equity on nonessential personal property limited to:

(A)          equity in excess of one thousand five hundred dollars ($1,500) for one motor vehicle;

(B)          a mobile home not used as a home site;

(C)          boats, boat trailers, and boat motors;

(D)          campers;

(E)           farm or business equipment;

(6)           stocks, bonds, mutual fund shares;

(7)           revocable trust funds;

(8)           equity in real property including income producing property not used as a home;

(9)           value of revocable prepaid burial contracts;

(10)         net proceeds from a business, including a farm, which has been discontinued;

(11)         life estate interest, if salable; and

(12)         remainder interest, if salable.

(e)  Reserve; items excluded:

(1)           personal effects and household goods;

(2)           a mobile home used as a homesite;

(3)           straight term life insurance;

(4)           burial insurance;

(5)           that portion of a checking account that is the monthly income deposited to meet the family's needs;

(6)           non‑salable life estate or remainder interest;

(7)           heir property, ie, property from an estate which has not been settled;

(8)           equity value of one thousand five hundred dollars ($1,500) or less for one car, truck, or other motor vehicle.

(f)  Verification.  Value and ownership of real property and motor vehicles shall be verified.  The client's statement of value of another reserve property available to members of the budget unit shall be accepted without further verification unless either this statement of value is incomplete, inconsistent, or unclear, or the values stated by the client would cause the budget unit's reserve to exceed the reserve maximum.

 

History Note:        Authority G.S. 108A‑41; 108A‑46; 143B‑153; 45 C.F.R. 233.20;

Eff. February 1, 1984;

Amended Eff. June 1, 1990; February 1, 1986.