Update : Food Stamps Vehicle Valuation Questions and Answers

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1 Santa Clara County Social Services Agency page 1 Date: 01/27/03 References: ACIN # I Cross-References: FS Update #01-09 Clerical: Handbook Revision: Distribution: No Yes Food Stamp Update Distribution List Update : Food Stamps Vehicle Valuation Questions and Answers Background The California Department of Social Services (CDSS) has provided information to answer questions from various counties. Clarifications The following Questions and Answers clarify different issues regarding the valuation of vehicles: Evaluation Requirement Q. When does a vehicle need to be evaluated? A. A vehicle must be evaluated at initial certification and at every recertification. Any additional vehicle that a household acquires during a certification period must be evaluated at the time of acquisition. However, once a vehicle has been evaluated, it does NOT need to be re-evaluated until the next recertification. [27.8.1] Vehicle Registration Renewal Q. If a vehicle s registration expires in the middle of a certification period, must the county verify that the vehicle has been re-registered then or does it wait until recertification? A. The county would verify re-registration at recertification. [27.8.6] Nonoperative Registration Status Q. Is a vehicle registered as nonoperative considered to be licensed or unlicensed? A. To be considered licensed, a vehicle must be registered to be operated on public roads. A vehicle registered as nonoperative cannot be operated on public roads; therefore, it is evaluated as an unlicensed vehicle. [27.8.6]

2 page 2 Incomplete Vehicle Registration Update : Food Stamps Q. If a vehicle s registration fees have been paid, but the Department of Motor Vehicles (DMV) is withholding the vehicle s registration because of unpaid parking tickets, no smog certificate, or other similar reason, is the vehicle considered to be licensed or unlicensed? A. To be considered licensed, a vehicle must be registered to be operated on public roads. Until the registration process is complete, the vehicle CAN NOT be legally driven on public roads, and therefore it is considered to be unlicensed. [27.8.5] No Value Vehicle Q. What value is used when the Blue Book indicates that the vehicle has no value? A. If the Blue Book indicates that a vehicle has no value, then a value of $0 can be assigned to that vehicle. [27.8.2] Blue Book Salvage Value Q. What value is used when the Blue Book shows the value as salvage instead of showing a dollar amount or indicating that the vehicle has no value? A. When a Blue Book indicates a salvage value for a vehicle, it simply means that the Blue Book is not assigning a dollar amount nor indicating that the vehicle has no value. This is NOT the same thing as a vehicle with a salvage title. If the Blue Book indicates a salvage value, then the method used to determine the valuation for a vehicle that is no longer listed in the Blue Book is used. [27.8.2] Salvage Title Q. How is a value assigned to a vehicle with a salvage title? A. DMV defines a salvage vehicle as a vehicle which has been wrecked, destroyed, or damaged to such extent that the insurance company considers it uneconomical to make repairs to the vehicle and the vehicle is not repaired by or for the person who owned the vehicle when the damage occurred. The vehicle s title will contain a notation identifying the vehicle as a salvage vehicle. A vehicle with a salvage title must be valued in the same manner as all other vehicles. If the household disagrees with the value determined, it must be given the opportunity to acquire verification of the true value of the vehicle from a reliable source. [27.8.2] Encumbrance Q. Does the encumbrance on a vehicle include the principal and interest owed on the vehicle or the principal only? A. The encumbrance is the amount it would take to payoff the vehicle. This pay-off amount includes the principal plus any interest that is currently due on the vehicle. The pay-off amount does NOT include ALL the interest that

3 Update : Food Stamps page 3 will become due and payable in the future. The EW MUST use the pay-off (balance owing) amount showing on a current monthly statement or contact the lender for the current payoff amount. [27.8.2] Note: Under NO circumstances, is the EW to determine the encumbrance by multiplying the current monthly payment by the number of payments still owing. This would result in allowing the interest that will become due in the future as part of the encumbrance. Treatment of Jointly Owned Vehicles Q. How are vehicles that are jointly owned with excluded and nonhousehold members treated? A. The total value of the vehicle is considered if the vehicle is jointly owned by an eligible household member and a FS HH member who is excluded due to: An IPV disqualification, A felony drug conviction, A Workfare or work requirement sanction, Being a fleeing felon, parole or probation violator, A Social Security Number (SSN) disqualification, or Being an ineligible noncitizen. A vehicle jointly owned by an eligible household member and a non-household member OR a FS HH member who is excluded due to being an SSI/SSP recipient, ineligible student or ineligible ABAWD is treated as follows: If the registration shows the word or in the title, then the entire value of the vehicle is considered available to the household because access to the value of the vehicle is not dependent upon an agreement with the joint owner. If the registration shows the word and or shows a / ( / means the same thing as and ) in the title, and the joint owner agrees to sell the vehicle, then the entire value of the vehicle is considered available to the household. Although access to the vehicle is dependent upon an agreement with the joint owner, in this case, the joint owner has agreed to sell. If the registration shows the word and or shows a / in the title, and the joint owner refuses to sell, then none of the value of the vehicle would be counted. Access to the value of the vehicle is dependent upon an agreement with the joint owner and, in this case, the joint owner has refused to sell. [27.4.1]

4 page 4 Inaccessible Exclusion Update : Food Stamps Q. Can more than one vehicle be excluded for being inaccessible under the $1500 equity exclusion? A. Yes. Each vehicle is valued individually; therefore, more than one vehicle may be excluded under the $1500 equity exclusion. There is NO limit to the number of vehicles that can be excluded under this provision. This exclusion may be applied to both licensed and unlicensed vehicles. [27.4] Teenager Use Exemption Q. Can only one vehicle per household be exempted from the equity value test for household members under 18 years of age, or can more than one vehicle be exempted? A. Regulations state that any other licensed vehicle driven by a household member under 18 years of age to go to work, school, job training, or to look for work is exempted from the equity test. Therefore, more than one vehicle can be exempted under this provision as long as the vehicle is being used for one of the specified purposes. [27.8.6] Implementation These clarifications are effective upon receipt of this Update. Other Programs The vehicle clarifications also apply to CalWORKs. A CalWORKs Update on property will be issued as soon as administratively feasible. CLIFF O CONNOR, INTERIM DIRECTOR Department of Employment and Benefit Services Contact Person(s): Susan Maxwell, Food Stamp Program Coordinator, (408)

5 Santa Clara County Social Services Agency page 1 Date: 01/27/03 Filing Instructions for Update : Food Stamps Vehicle Valuation Questions and Answers Remove Replace with Chapter 27, pages 1-34 (10/11/02) Chapter 27, pages 1-36 (01/27/03)

6 page 2 Filing Instructions for Update : Food Stamps