HAR §17-1725.1-33. 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 as exempt shall be considered an available asset counted towards the individual's personal reserve. (c) The fair market value of real property shall be determined by considering the following variables: (1) Geographic location; (2) Land use; (3) Amenities; and (4) Land configuration. (d) Acceptable verification of the current fair market value other than the county property tax assessment shall specify how the value was established based on the variables in subsection (c) and may include, but are not limited to the following sources: (1) A licensed appraiser’s written appraisal of the current fair market value of the property; (2) A current sales agreement that reflects the current property appraisal or an accurate valuation of the fair market value of the property; or UNOFFICIAL 1725.1-27 (3) A licensed realtor’s written appraisal of the current fair market value of the property. [Eff 09/30/13] (Auth: HRS §346-53; 42 C.F.R. §§431.10, 435.601, 435.845; 45 C.F.R. §233.20) (Imp: HRS §346-29; 42 C.F.R. §§431.10, 435.601, 435.845; 45 C.F.R. §233.20) §l7-1725.1-34 Treatment of special forms of ownership of real or personal property. (a) The individual's interest in property shall be determined by the type and form of ownership which may affect the value of the property in determining eligibility. (b) Property held in joint tenancy shall be determined by: (1) An appraisal of the current fair market value of the individual’s interest in the property; or (2) Dividing the current fair market value of the property by the number of joint tenants; and (3) Upon the death of one of the joint tenants, the survivor or survivors become the sole owner or owners of the entire interest. (c) Property held in tenancy by the entirety shall be determined by: (1) An appraisal of the current fair market value of the individual's interest in the property; and (2) Dividing the current fair market value of the property equally between the husband and wife. (d) Property held by tenancy in common: (1) Shall be determined by an appraisal of the current fair market value based on the percentage of ownership of two or more individual owners; (2) Each owner may sell, transfer or dispose of his or her share of the property without the permission of the other owner or owners but UNOFFICIAL 1725.1-28 cannot do so with respect to the entire property; and (3) There is no automatic survivorship rights to a deceased's ownership interest as it passes to his or her estate or heirs. (e) Property under an agreement of sale shall be allocated between the buyer and seller in accordance with their respective interests as follows: (l) The buyer's interest shall be the fair market value of the real property minus the balance due on the agreement of sale; and (2) The seller's interest shall be the balance on the agreement of sale. (f) Property subject to a life estate interest: (1) Is established by a will or deed which conveys property to a life estate owner or life tenant for life and to one or more remaindermen upon termination of life estate; (2) The current value of the property shall be allocated between the life tenant and the remainderman by determining the present worth of their respective interests using the Life Estate and Remainder Interest Table (26 C.F.R §20.2031-7 and 49 FR Vol. 49 No. 93/5-11-84), that corresponds to the age of the life tenant; (3) The life tenant: (A) Owns the physical property for the duration of the life estate; (B) Has the right to possess, use, and obtain profits from the property; (C) Can sell his or her life estate interest; but (D) Cannot take any action concerning the interest of the remainderman. (4) The remainderman: (A) Has ownership interest in the physical property; (B) Does not have the right to possess and use the property until termination of life estate; and UNOFFICIAL 1725.1-29 (C) Unless restricted by will or deed, is able to sell his or her interest in the physical property before the life estate interest expires but the market value of the remainder interest may be reduced as the sale is subject to life estate interest. (g) The individual's interest in real property shall not be considered available as an asset if a co- owner would be affected by the sale of the individual’s interest under the following: (1) The co-owner resides on the property; (2) The co-owner would have to move if the property was sold; and (3) The co-owner owns no other real property that could be used as the co-owner’s home property. [Eff 09/30/13] (Auth: HRS §346-53; 20 C.F.R. §§416.1201, 416.1245, 416.1246; 42 C.F.R §§435.230, 435.601, 435.840, 435.845) (Imp: HRS §346-53; 20 C.F.R. §§416.1201, 416.1245, 416.1246; 42 C.F.R §§435.230, 435.601, 435.840, 435.845) §17-1725.1-35 Special provision for removal of legal impediments to availability. Medical assistance shall be provided to an otherwise eligible individual while legal impediments to the current availability of real property are being removed or title is being cleared based on the condition that the individual’s plan of action is submitted within thirty days of the date of request by the department to remove those legal impediments or to clear title. (1) Failure to meet the deadline shall disqualify the individual from receiving further medical assistance. (2) The department shall periodically review the status of the plan of action and determine whether a recipient's failure to take appropriate action shall disqualify the recipient from further assistance. UNOFFICIAL 1725.1-30 [Eff 09/30/13] (Auth: HRS 346-14; 20 C.F.R. §§416.1201, 416.1245; 42 C.F.R. §§431.10, 435.601) (Imp: 20 C.F.R. §§416.1201, 416.1245; 42 C.F.R. §435.601)