42-200.L   Motor Vehicles

 

Table of Contents

 

Topic

Section

Regulation

42-200.L.1

Self-Certification

42-200.L.2

Verification For Vehicles Obtained As A Gift, Donation Or Family Transfers

42-200.L.3

Determining The Value Of Vehicles

42-200.L.4

Fair Market Value

42-200.L.5

Kelley Blue Book Value

42-200.L.6

Classic, Antique, Custom Or Vehicle Not In The Kelley Blue Book

42-200.L.7

Vehicle Encumbrances

42-200.L.8

Equity Value (EV)

42-200.L.9

Referrals to Public Assistance Fraud Division

42-200.L.10

 

 

 

42-200.L.1
Regulation

 

 

 

 

 

 

 

 

 

 

 

 

 

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Motor Vehicle Definition

The definition of a motor vehicle includes but is not limited to the following:

·         Cars

·         Trucks

·         Sports Utility Vehicles (SUVs)

·         Vans

·         Boats

·         Trailers

·         Campers

·         Recreational Vehicles (RVs)

·         Motorcycles

·         Houseboats

·         Jet Skis

·         Snowmobiles

 

42-200.L.1
Regulation

(Cont).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Exempt Vehicles

State regulation require the entire value of any vehicle to be exempt as a countable resource if that vehicle is:

 

Used primarily (over 50 percent of the time the vehicle is used) for income producing purposes such as, but not limited to, a taxi, truck or fishing boat; or

If the vehicle is used 50% or less of the time for income producing purposes, it can be excluded if it annually produces income that is consistent with its fair market value; or

Necessary for long distance travel (out of town), other than daily commuting, that is essential to the employment of the household member: for example, the vehicle of a traveling sales person or a migrant farm worker following the work stream; or

Used as the family’s home; or

Would be exempted under any of the above, but the vehicle is not in use because of temporary unemployment, such as when a taxi driver is ill and cannot work, or when a fishing boat is frozen in and cannot be used; or

Necessary to transport a physically disabled household member, including an excluded disabled family member, regardless of the purpose of the transportation.  The following requirements apply:

·         Limited to one vehicle per physically disabled household member; and

·         The vehicle need not have special equipment or be primarily used by the physically disabled household member.  If the physical disability of the individual is not evident to the Human Services Specialists (HSS), verification from a physician certifying that the individual is physically disabled must be provided by the applicant/recipient; or

Used to carry fuel for heating or water for home use, when the transported fuel or water is the primary source of fuel or water for the family; or

Leased.  Not a resource until a transfer of ownership to the client has occurred; or

Ownership of the vehicle was transferred through a gift, donation, or family transfer, as defined by the Department of Motor Vehicles - see CPG section 42-200.L.3.

 

The exclusions for vehicles will also apply for the following:

·         Vehicles used by ineligible noncitizens or disqualified persons whose resources are considered available to the family; and

·         Unlicensed vehicles on those Indian reservations that do not require vehicles driven by tribal members to be licensed.

 

42-200.L.2
Self-Certification

Clients are allowed to self-certify, under penalty of perjury, the vehicle’s Fair Market Value (FMV) and any amount of encumbrances.

 

Form CW 80 - Self-Certification Form for Motor Vehicles is required to identify:

·         If the vehicle meets one of the exemptions (other than obtained as gift, donation or family transfer) listed in CPG section 42-200.L.3;

·         Determine the vehicle’s FMV; and/or

·         Vehicle’s encumbrances.

 

If the information provided is questionable and the discrepancy could potentially affect the Assistance Unit’s (AU) eligibility, the HSS will take steps to resolve the potential discrepancies with the client.  The HSS will allow the client to correct/clarify any discrepancies, and will reevaluate the AU’s eligibility with the corrected information.  Refer to CPG section 42-200.L.10 for potential fraud issues.

 

Note:

The client is not required to declare the FMV of the vehicle or amount owed if the vehicle can be exempted.

 

42-200.L.3
Verification For Vehicles Obtained As A Gift, Donation Or Family Transfers

 

 

 

 

 

 

 

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The client is required to complete the CW 80 to state that the vehicle was obtained as a gift/donation or family transfer.  However, the client is required to provide verification from the Department of Motor Vehicles (DMV).

 

To obtain this verification, a client will be required to request a copy, via U.S. mail, of the original title transfer or bill of sale documentation from the DMV indicating that the vehicle was a gift/donation, or family transfer.

 

DMV charges a fee for this verification.  If the client needs help obtaining the documentation, or is unable to pay the DMV fee, the HSS will assist the client in obtaining the verification, including paying the DMV fee in accordance with the procedures described in CPG 40-100.J Payment of Third Party Verifications. Once the DMV documentation is received, exempt the vehicles meeting these criteria.

 

42-200.L.4
Determining The Value Of Vehicles

Each vehicle not excluded above, must be individually evaluated for the Equity Value (EV).  The EV is the FMV minus encumbrances, as described in CPG section 42-200.L.9.  HSS is required to document the value determination of each vehicle.

 

42-200.L.5
Fair Market Value (FMV)

Clients are required to complete and submit the CW 80 form to self-certify the FMV of each vehicle.  However, if the client requests assistance or is unable to determine the vehicle’s FMV on their own, the HSSs will assist clients in determining the FMV of their vehicle, using the Kelly Blue Book (KBB) or other reputable resources.

 

In determining the FMV, encumbrance(s) are not taken into consideration.

 

If the client determines that he or she overestimated or underestimated the value of the vehicle, or disagrees with the KBB value because the vehicle is damaged, inoperable, salvaged or for some other reason, the client must be given the opportunity to acquire written estimate of the value from a dealer, broker, repair facility, personal property appraiser, financial institution or other legitimate source.  The written estimate shall be accepted as the FMV.

 

42-200.L.6
Kelley Blue Book (KBB) Value

 

 

 

 

 

 

 

 

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The FMV is the basic wholesale current KBB value.  The HSS must not increase the basic value by adding the value for low mileage or optional equipment.

 

Hardcopy KBB

To use the KBB, the HSS will need the make, model, number of doors, the Vehicle Identification Number (VIN) and, in some cases, the engine size.  If the information for these items is incomplete, the HSS will use the lowest KBB value listed to the extent that the vehicle has been identified.

 

Online KBB

If using the online KBB (www.kbb.com), please take into consideration the following regulations, procedures and required staff actions:

·         Because the online KBB does not provide the wholesale value to use as the FMV, explain in the case comments the online KBB is being used as a comparable source to obtain the FMV.

·         The VIN is used in the hardcopy KBB to match the vehicle's make, model, number of doors and engine size.  However the VIN is not requested in the online version.  Therefore obtain the make, model, number of doors and engine size information from the client prior to using the online KBB.

·         The online KBB contains “Mileage” and “Optional Equipment” fields which will impact the vehicle’s value.  However regulations indicate not to allow value increases due to low mileage or optional equipment.

Therefore:

o   Use 12,000 miles per each year of the vehicle.

For example, if the vehicle is 3 years old enter 36,000 miles (3 years X 12,000 miles/year).

o   Use the existing default equipment values; and do not add additional equipment.

·         The “Trade-In” value typically will be lower than the actual wholesale value.  Therefore the trade-in value is not to be used as the wholesale value.  Instead select:

  • What's My Current Car Worth?; then
  • I Plan To Sell It Myself; then
  • Private Party.

·         Use hardcopy KBB for vehicles not found in the online KBB or allow other acceptable source as indicated in CPG sections 42-200.L.5 and 42-200.L.7

 

42-200.L.7
Classic, Antique, Custom Or Vehicle Not In The Kelley Blue Book (KBB)

If the client requests assistance and if the HSS is unable to make an accurate appraisal because the value of antique, custom made, or classic vehicles are no longer listed in the KBB, the client’s estimate of the value of the vehicle shall be accepted, unless the HSS has reason to believe the estimate is incorrect.  In that case, and if it appears that the vehicle’s value will affect eligibility, the client shall obtain an appraisal or produce other evidence of its value, such as tax assessment or a newspaper advertisement which indicates the amount for which like vehicles are being sold.

 

42-200.L.8
Vehicle Encumbrances

Clients are required to complete and submit the CW 80 form to self-certify the amount that the client owes on each vehicle. 

 

For purposes of determining the EV of the client’s motor vehicles, the encumbrance is the amount that the client is obligated to pay for the vehicle or the amount owed on the vehicle.

 

If the client determines that he or she overestimated or underestimated the amount of the encumbrances, the client must be given the opportunity to acquire verification or other legitimate documentation.  The written verification shall be accepted as the amount of the encumbrances.

 

Fees that must be paid in order to have the vehicle’s ownership transferred, overdue registration, or other charges, are not considered encumbrances when determining EV.

 

42-200.L.9
Equity Value (EV)

 

 

EV is the FMV minus encumbrances. All vehicles not excluded as described in CPG section 42-200.L.1 must be evaluated for their EV.

 

Any equity value that exceeds $9,500 shall be counted toward the AU’s maximum resource limit.

 

The Notice of Action denying an application or discontinuing benefits due to excess resources resulting from the final vehicle value used for the asset test shall inform the client of his/her right to rebut that vehicle’s value.

 

42-200.L.10
Referrals to Public Assistance Fraud Division

 

 

 

 

 

 

 

 

 

 

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Only if the HSS is unable to resolve questionable or incorrect discrepancies, or has reasonable grounds to suspect the client may be intentionally providing false information, will the HSS submit a referral to Public Assistance Fraud Division (PAFD) to request an investigation of the case.

 

Example:

A client states on the CW 80 that she has a late model vehicle valued at $2,000 but does not provide any information on the CW 80 to explain the very low value.

Since most new cars have a value that significantly exceeds $2,000, the HSS must contact the client to inquire whether the client may have made a mistake: such as the client could have written $2,000 instead of $22,000; it could be a salvage car; she could have confused EV with FMV, etc.

The HSS would permit the client to correct the CW 80 and would re-evaluate the AU’s eligibility.

 

If the client is not able to explain the low value and does not submit a corrected CW 80, the HSS may refer the matter to PAFD.