20 C.F.R. § 416.1212

Exclusion of the home

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(a) Defined. A home is any property in which an individual (and spouse, if any) has an ownership interest and which serves as the individual's principal place of residence. This property includes the shelter in which an individual resides, the land on which the shelter is located and related outbuildings.

(b) Home not counted. We do not count a home regardless of its value. However, see §§ 416.1220 through 416.1224 when there is an income-producing property located on the home property that does not qualify under the home exclusion.

(c) If an individual changes principal place of residence. If an individual (and spouse, if any) moves out of his or her home without the intent to return, the home becomes a countable resource because it is no longer the individual's principal place of residence. If an individual leaves his or her home to live in an institution, we still consider the home to be the individual's principal place of residence, irrespective of the individual's intent to return, as long as a spouse or dependent relative of the eligible individual continues to live there. The individual's equity in the former home becomes a countable resource effective with the first day of the month following the month it is no longer his or her principal place of residence.

(d) If an individual leaves the principal place of residence due to domestic abuse. If an individual moves out of his or her home without the intent to return, but is fleeing the home as a victim of domestic abuse, we will not count the home as a resource in determining the individual's eligibility to receive, or continue to receive, SSI payments. In that situation, we will consider the home to be the individual's principal place of residence until such time as the individual establishes a new principal place of residence or otherwise takes action rendering the home no longer excludable.

(e) Proceeds from the sale of an excluded home. (1) The proceeds from the sale of a home which is excluded from the individual's resources will also be excluded from resources to the extent they are intended to be used and are, in fact, used to purchase another home, which is similarly excluded, within 3 months of the date of receipt of the proceeds.

(2) The value of a promissory note or similar installment sales contract constitutes a “proceed” which can be excluded from resources if—

(i) The note results from the sale of an individual's home as described in § 416.1212(a);

(ii) Within 3 months of receipt (execution) of the note, the individual purchases a replacement home as described in § 416.1212(a) (see paragraph (f) of this section for an exception); and

(iii) All note-generated proceeds are reinvested in the replacement home within 3 months of receipt (see paragraph (g) of this section for an exception).

(3) In addition to excluding the value of the note itself, other proceeds from the sale of the former home are excluded resources if they are used within 3 months of receipt to make payment on the replacement home. Such proceeds, which consist of the downpayment and that portion of any installment amount constituting payment against the principal, represent a conversion of a resource.

(f) Failure to purchase another excluded home timely. If the individual does not purchase a replacement home within the 3-month period specified in paragraph (e)(2)(ii) of this section, the value of a promissory note or similar installment sales contract received from the sale of an excluded home is a countable resource effective with the first moment of the month following the month the note is executed. If the individual purchases a replacement home after the expiration of the 3-month period, the note becomes an excluded resource the month following the month of purchase of the replacement home provided that all other proceeds are fully and timely reinvested as explained in paragraph (g) of this section.

(g) Failure to reinvest proceeds timely. (1) If the proceeds (e.g., installment amounts constituting payment against the principal) from the sale of an excluded home under a promissory note or similar installment sales contract are not reinvested fully and timely (within 3 months of receipt) in a replacement home, as of the first moment of the month following receipt of the payment, the individual's countable resources will include:

(i) The value of the note; and

(ii) That portion of the proceeds, retained by the individual, which was not timely reinvested

(2) The note remains a countable resource until the first moment of the month following the receipt of proceeds that are fully and timely reinvested in the replacement home. Failure to reinvest proceeds for a period of time does not permanently preclude exclusion of the promissory note or installment sales contract. However, previously received proceeds that were not timely reinvested remain countable resources to the extent they are retained.

Example 1.On July 10, an SSI recipient received his quarterly payment of $200 from the buyer of his former home under an installment sales contract. As of October 31, the recipient has used only $150 of the July payment in connection with the purchase of a new home. The exclusion of the unused $50 (and of the installment contract itself) is revoked back to July 10. As a result, the $50 and the value of the contract as of August 1, are included in a revised determination of resources for August and subsequent months.Example 2.On April 10, an SSI recipient received a payment of $250 from the buyer of his former home under an installment sales contract. On May 3, he reinvested $200 of the payment in the purchase of a new home. On May 10, the recipient received another $250 payment, and reinvested the full amount on June 3. As of July 31, since the recipient has used only $200 of the April payment in connection with the purchase of the new home, the exclusion of the unused $50 (and of the installment contract itself) is revoked back to April 10. As a result, the $50 and the value of the contract as of May 1 are includable resources. Since the recipient fully and timely reinvested the May payment, the installment contract and the payment are again excludable resources as of June 1. However, the $50 left over from the previous payment remains a countable resource.

(h) Interest payments. If interest is received as part of an installment payment resulting from the sale of an excluded home under a promissory note or similar installment sales contract, the interest payments do not represent conversion of a resource. The interest is income under the provisions of §§ 416.1102, 416.1120, and 416.1121(c).

[50 FR 42686, Oct. 22, 1985, as amended at 51 FR 7437, Mar. 4, 1986; 59 FR 43285, Aug. 23, 1994; 75 FR 1273, Jan. 11, 2010]

Notes of Decisions

Cited in 22 cases (4 in the last 5 years), 1976–2024 · leading case: Daley v. Secretary of the Executive Office of Health and Human Services

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Daley v. Secretary of the Executive Office of Health and Human Services (2017) mass · cites it 2× “See also 20 C.F.R. § 416.1212 (b) (SSI regulation).”

C.M. Higbee v. Louis W. Sullivan, M.D., Secretary of Health and Human Services (1992) ca9 “We do not decide whether the mobile home was excluded from the $1,700 limit by 20 C.F.R. § 416.1212 (a), which excludes the value of an individual’s "principal place of residence.”

Evelyn Hart v. Otis R. Bowen, Secretary of Health and Human Services (1986) ca9 · cites it 4× “The Secretary found Hart’s installment sales contract was a “proceed[ ]” from the sale of her former home with a cash value of $4,800, which was not reinvested within three months of receipt, and thus was not excludable under the Home Reinvestment Regulation, 20 C.F.R. §…”

California Advocates for Nursing Home Reform v. Bonta (2003) calctapp “SSI rules generally govern Medicaid eligibility of the aged, blind and disabled.”

Stafford v. Idaho Department of Health & Welfare (2008) idaho · cites it 2× “20 C.F.R. § 416.1212 . The State has taken legislative and administrative action to implement the MCCA and its implementing regulations.”

Collins v. Department of Social Services, Family Support Division (2004) moctapp “” Hence, the definition of home in a rural area includes a surrounding measure of land, not another house on land adjoining the property. The Division also argues that its interpretation of its own regulation is entitled to deference, and is consistent with Social Security…”

West Virginia Ex Rel. McGraw v. United States Department of Health & Human Services (2001) wvsd “§§ 1396a(a)( 10)(A)(i)(II), 1396a(a)(10)-(A)(ii)(V) and 1396a(a)( 10)(A)(ii)(III); 20 C.F.R. § 416.1212 . 3 . The Medicaid Act contains a provision which governs the failure to substantially comply with any of the provisions contained therein, including the amendments concerning…”

C.M. Higbee v. Louis W. Sullivan, M.D., Secretary of Health and Human Services (1991) ca9 “” 20 C.F.R. § 416.1212 (a). Higbee has stated that his mobile home, assessed by the county at $6,700, was in storage, and he has admitted that he was not living in it.”

ANNA W. v. Bane (1993) nywd · cites it 2× “4(k) of this Part, and no spouse, child under 21 years of age, certified blind or certified disabled child, or other dependant relative is living in the home____ Plaintiff asserts that these regulations conflict with the provisions of the SSI regulations, 20 C.F.R. § 416.1212…”

Savage v. Toan (1986) ca8 “§ 1382b(a)(1); 20 C.F.R. § 416.1212 . Under Missouri’s 1972 Medicaid plan, a medicaid recipient living in a nursing home could have his or her family home excluded from available resources “during the period of time the * * * recipient [remained] a patient in [a] nursing home or…”

Potter v. Bowen (1987) ord “20 C.F.R. § 416.1212 (d). Ms. Potter concedes that she moved out of her house in August 1983.”

Higbee v. Bowen (1989) casd “” 20 C.F.R. § 416.1212 (a) (1987). The government asserts, even assuming arguendo that plaintiff was living in the United States during the relevant period, he admits he was not living in his mobile home.”

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— 20 C.F.R. § 416.1212(d) — 1 case

Zeringue v. Lafourche Parish Office of Eligibility Determination (1992) lactapp

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