A.

Definition

The term vehicle pertains to methods of transportation and includes, but is not necessarily limited to, the following:

1.

Automobiles;

2.

Boats;

3.

Trucks;

4.

Animals (horses, donkeys, etc.);

5.

Animal drawn vehicles (carts, wagons, etc.);

6.

Motorcycles;

7.

Bicycles

B.

Treatment

Under the general vehicle exclusion, a vehicle is conditionally excluded or counted when it is identified under one of the three groups below. These rules are applied to all vehicles, which includes vehicles that are temporarily inoperable, unregistered, needing repair or in similar circumstances.

1.

Totally Excluded Based on Use

The value of one vehicle is totally excluded, regardless of its amount, for the customer or a member of the customer's household if it is used for one of the conditions outlined below:

a.

It is necessary for employment;

b.

It is necessary for medical treatment of a specific or regular medical problem;

c.

It is modified for operation by, or transportation of, a handicapped person;

d.

It is necessary because of climate, terrain, distance or similar factors to provide necessary transportation to perform essential daily activities.

2.

Partially or Totally Excluded Based on Value:

a.

If the value of no vehicle is excluded in B.1. above, one vehicle is conditionally excluded from being counted as a resource if its CMV does not exceed $4,500.00.

b.

The CMV in excess of $4,500.00 is a countable resource.

NOTE:

The CMV, instead of the equity value, is used for the $4,500.00 test

c.

If the vehicle cannot be excluded under the vehicle exclusion, evaluate whether the vehicle can be excluded as property essential to self-support (MS 706.42).

3.

Counted

a.

Any vehicle used strictly for recreation or for a purpose other than transportation, such as selling parts or racing, is considered a countable resource using the equity value as the considered amount.

b.

Any vehicle not excluded in B.1. ‑ 2. above is considered a countable resource using the equity value as the considered amount.

C.

Specific Verification

1.

Verification of Ownership

a.

Sole Ownership

The statement on the application that the customer solely owns a vehicle is accepted unless there is evidence to the contrary. 

If a question of ownership arises, obtain verification of one of the following:

i.

Automobile registration;

ii.

Bill of sale;

iii.

Automobile title.

b.

Joint Ownership

Verification of ownership is required if the value of a vehicle is not totally excluded by B.1. ‑ 2. However, vehicles with a CMV not exceeding $4,500.00 per B.2 does not require verification.

i.

The ownership documents in C.1., above will be used to verify ownership of the automobile.

ii.

In all cases of conflict between the different forms of verification presented, the person(s) named on the vehicle title will be considered the owner(s).

iii.

When the value of one vehicle is totally excluded because it meets one of the conditions listed in B.1. ‑ 2. above, verification of the vehicle's description and the determination of the CMV are not necessary.

2.

Verification of Conditionally Excluded Vehicles

For vehicles whose value is totally excluded for the reasons listed in B.1. above, the applicable information which follows is to be documented in the case record.

a.

Employment

Verification of income from work activity is sufficient to establish use of the vehicle for employment.

If the vehicle is used by a non‑budget‑unit member, a statement signed by the person involved will be acceptable evidence of the automobile's use for employment.

b.

Medical Transportation

Absent evidence to the contrary, accept the customer's allegation as recorded on the Application Part II (DE‑102) that the vehicle is necessary for medical transportation.

For example, evidence to the contrary exists when the customer lives in a nursing facility, assisted living home or other living arrangement where necessary medical care is normally provided within the facility or transportation to medical treatment is provided by the facility' s staff.

When there is evidence to the contrary, obtain a written declaration from the customer or Representative on a DE-118 explaining how and when the vehicle is actually used. Also obtain supporting documentation from at least one other person who is familiar with the situation. To qualify for the exclusion, the supporting documentation must confirm that the customer is receiving necessary medical treatment outside the facility and that the vehicle is used to transport the customer for this medical treatment.

c.

Modified for Handicapped

Obtain the customer's written statement that the vehicle is specially equipped for a handicapped person. This statement must include an explanation of the nature of the modification.

d.

Necessary for Daily Activities

Absent evidence to the contrary, accept the customer's written statement that the vehicle is used to provide necessary transportation to perform essential daily activities because of climate, terrain, distance or similar factors.

For example, evidence to the contrary exists if the customer is living in a nursing facility, assisted living home or other living arrangement where essential daily activities are performed within the facility or transportation is provided by the facility.

When evidence to the contrary exists, obtain a written statement on a DE-118 from the customer or Representative explaining what activities the vehicle is used for and when it is used. Also obtain supporting documentation from at least one other person who is familiar with how the vehicle is used.

3.

Partially or Non-excluded Vehicles

When the value of a vehicle is not totally excluded because it does not meet one of the conditions listed in B.1. above or because the customer has more than one vehicle, determine the exact description. The exact description should be included on the Application Part II (DE‑102) and must include the following information:

a.

Vehicle year;

b.

Vehicle manufacturer;

c.

Vehicle model;

d.

Body style;

e.

Number of cylinders;

f.

All of the optional equipment.

If the customer is unable to provide the information described above, obtain a registration form, insurance policy, itemized bill of sale, or similar record that contains a complete description. Documentation of this information must be contained in the case record.

4.

Verifying Kelley Blue Book Values Via the Internet

The Kelley Blue Book Web Site provides verification values of vehicles manufactured up to 21 years ago.  Generally, vehicles are located under the used car value link. However, if the vehicle you are looking for is too new, you may find the value under the new car pricing link. If you have a vehicle which was manufactured more than 21 years ago, you may use the value for the make and model for the oldest year listed, unless it is a historical or luxury vehicle (see Subsection 5.b., below). To accurately verify the vehicle value, use the vehicle description provided on the Part II (DE-102), which includes all the information described in MS 706.60.C.3.

With the Netscape Navigator Browser Open, type http://www.kbb.com in the Location bar and press enter. This connects you to the Kelley Blue Book home page, which provides used car values.

a.

Select the used car values by left-clicking your mouse pointer on the words "Used Car Values". This connects you to the next screen, where you have two options.

b.

Left-click "Trade-In" to determine the value of a used vehicle. This starts the vehicle selection process throughout a series of screens.

c.

Select the year of the vehicle.

d.

Select the make of the vehicle.

e.

Select the vehicle model.

f.

Select the vehicle.

g.

The standard attributes for the make and model will be automatically checked. Assume the vehicle has the standard equipment unless you have verification that it does not. If not, select or de-select as appropriate.

h.

Assume the vehicle is in "good" condition, unless you have verification that it is in less than good condition.

i.

When all selections are made, left-click on the submit button and wait for the report to be downloaded to the screen.

j.

Print the hard copy report for the file.

5.

Evaluating the Vehicle Value

a.

The CMV of all motor vehicles whose value is not totally excluded by B.1. - 2. above, between zero and seven years old, must be determined by the Kelley Blue Book Internet site. The trade-in value assigned to the vehicle is used to determine the CMV of any vehicle not totally excluded.

i.

If the specific vehicle in question is between zero and seven years old, and is not listed in the Kelley Blue Book website, the CMV is determined by contacts with other knowledgeable sources (as described in C.5.c., below) in the local area.

ii.

If, for the specific vehicle in question, there is a range of values shown on the website, any of which may apply, use the highest listed trade‑in value.

b.

When the vehicle is too old to be listed in the Kelley Blue Book website, but it is less than 25 years old, assume that the CMV is equal to the oldest listed vehicle of like make, model, equipment, etc., unless there is a reason to believe the vehicle may have an unusually high value, such as the vehicles listed below:

i.

Luxury vehicle (foreign or domestic), e.g., Jaguar, Mercedes‑Benz, Cadillac, Lincoln, Corvette, Mustang, etc.;

ii.

Classic or antique vehicles (vehicles which are 25 model years old or older);

iii.

Customized or specially modified vehicles, except for those specially modified for use by a handicapped person.

c.

When use of the Kelley Blue Book website is inappropriate for any reasons other than the customer disagreeing with the website value (i.e., vehicle is over 25 years old, luxury car, customized automobile, etc.), determine the CMV by contacting a disinterested knowledgeable source as described in C.5.d, below.

i.

Provide the contact with the following information:

• A complete vehicle description;
• Optional equipment;
• Condition.

ii.

Request an estimate of the trade‑in value for the vehicle from a knowledgeable source contact in the local geographic area.

d.

Rebuttal of Value

If the customer disagrees with the value determined by using the website and the determined value will adversely affect eligibility, advise him of his right to provide a statement, at his expense, from a disinterested knowledgeable source.

A disinterested knowledgeable source may be any of the following:

i.

Car or truck dealer;

ii.

Vehicle insurance company;

iii.

State Motor Vehicle Department;

iv.

If a disagreement between the use of the Kelley Blue Book website and an independent appraisal arises, document the case record explaining the disagreement and supporting the use of either the Kelley Blue Book website or an appraisal.

v.

Animals which have been determined to meet the criteria of a vehicle must have their value determined by contacting a knowledgeable source in the local geographic area

D.

Calculation

1.

Where more than one vehicle is owned, calculate the amount of countable resources as follows:

a.

If the value of one vehicle can be totally excluded under the conditions specified in B.1. - 2. of this Subsection, apply the total exclusion to the vehicle with the greatest equity value regardless of which vehicle is actually used to meet the condition specified. Count the equity value of any vehicles that are not totally excluded.

b.

If none of the vehicles owned can be totally excluded under the conditions specified in B.1. - 2. of this Subsection and the customer owns more than one vehicle, apply the $4,500.00 exclusion from the CMV to the vehicle with the highest equity value. The equity value of all additional vehicles will be considered in the resource computation.

2.

If the customer owns more than one vehicle, clearly document the case record to show which vehicle has the highest equity value and the type of exclusion being applied (e.g., $4,500.00 exclusion, used for employment, etc.).

3.

In cases of joint ownership of an automobile determined to have a CMV in excess of $4,500.00, deduct the $4,500.00 from the CMV and prorate the excess CMV among all owners in amounts proportionate to their ownership interest. The result is the considered amount of the resource.