Definition and Types of Resources

This document defines resources and their treatment for SNAP eligibility purposes. It describes liquid resources as those readily converted to cash, such as cash, bank accounts, stocks, and crowdfunding accounts. Non-liquid resources include property and vehicles. The equity value of non-liquid resources is determined by fair market value minus any amount still owed. Household resources are counted against the resource limit to determine eligibility either at application or for ongoing eligibility purposes each month. Commingled exempt and countable resources only retain the exempt status of part of the funds for six months.

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Definition and Types of Resources

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Kim So-Hyun

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DEFINITION AND TYPES OF RESOURCES

Resources must be verified when questionable. See MS 601-4 for
verification procedures. Sources of verification are described in the
Administrative Procedures Manual. The following describes the
definition of resources for purposes of SNAP.

1. Liquid Resources

a. Liquid resources are those that can be readily

converted to cash. Examples of liquid resources
include: cash on hand, uncashed checks, money in a
checking/savings account, money in a credit
union, U.S. savings bonds, lump sum payments,
stocks and bonds, Crowdfunding accounts
(GoFundMe, Kickstarter, etc.), monies held by third
parties, and bona fide loans. Refer to MS 602-2B for a
list of exempt resources.

All bona fide loans received, other than deferred

repayment educational loans, are counted as a liquid
resource the month after receipt if the money is
retained as cash or in a bank account.

Note:

Money in a crowdfunding account is

considered an accessible liquid resource if the
account was set-up by the household. If the
account was set-up by someone outside of the
household, the money in the crowdfunding
account is not considered an accessible liquid
resource until the funds have been given to the
household.

b. The net value of liquid resources is the total amount

of cash or liquid resources the household has.

Note:

The Eligibility Technician should count the

actual value of funds accessible to the
household at the time of interview.

c. Credit card company gift cards that can be spent as

cash are considered cash on hand and are counted
toward the resource test in the month after receipt.

Example:

Paul received a credit card company gift card

from his mother two months ago with
$1,200.00 preloaded on it when he moved into
his new apartment. He states that he will not
receive another gift card, no future funds will be
deposited to this card it, and that there is
$1,120.00 available now after purchasing a
lamp. The $1,120.00 is counted as a liquid
resource by the eligibility technician.

2. Non-liquid Resources

a. Non-liquid resources are those that cannot be readily

converted to cash. Examples of non-liquid resources
are real property such as houses, buildings and land,
and personal property such as cars, trucks, boats,
snow machines, planes, travel trailers, campers,
business inventory, and livestock. Refer to MS 602-
2B for a list of exempt resources.
b. Calculate the equity value of non-liquid resources as
follows:

Step Determine the fair market value. The fair market value is
1: how much the household could reasonably expect to
receive for the property if it were sold.

Step Subtract from the fair market value the amount the
2: household owes on the property. The remainder is the
equity value of the resource. Non-liquid resources with
an equity value of $1500 or less are excluded. Refer
to MS 602-2B(27).

3. Determining Resource Eligibility

a. Applicant Households:

 Interview held during the month the application is filed

- The total value of all household resources on the
date of the interview is used to determine the eligibility
for that household. If the household's total countable
resources exceed the resource limit, the household is
ineligible and the application is denied. The household
can reapply anytime.
 Interview held during the month following the month
the application is filed - The total value of all household
resources on the date of the interview is used to
determine eligibility for both the month of application
and the following month. If household resources
exceed the limit on the date of the interview, the
household is ineligible for both the month of application
and the following month.

Note:

The SNAP application may not be denied solely

based on the knowledge that the household
listed resources in the SNAP application, which
exceed the SNAP resource limit. An interview
must be conducted before a determination of
eligibility may be made.

When the household confirmed their resources

exceed the SNAP resource limit during the
interview, we may deny the SNAP application at
that time, but not prior to the household verbally
confirming ineligibility during the interview.
(See MS 601-5D)

b. Participant Ongoing Households:

For prospective eligibility determinations, the value of the
resources anticipated to be held by the household on the first
day of the issuance month will be used to determine ongoing
eligibility. Countable resources are considered held by the
household until such time as they are spent, sold, or otherwise
disposed of and the household no longer has interest or
ownership in the resource.

4. Commingled Resources

When any money considered an exempt resource is
commingled with a countable resource, the exempt portion is
disregarded for six months from the date funds were
commingled. After the six months the entire amount is counted
toward the resource limit.

If only excluded money is in an interest bearing account, the
interest earned does not constitute commingling with the
excluded money. The interest, which must be counted as
unearned income, is identifiable from the excluded funds
through the account history of deposits.

Exempt resources that are kept separate and identifiable from
other countable resources retain their exempt status
indefinitely.