TO:	  Commissioners; TA Directors; FS Directors; MA Directors; WMS Coordinators; CAP Coordinators

FROM:	Patricia A. Stevens, Deputy Commissioner, Division of Temporary Assistance

SUBJECT:	Change in the Family Assistance and Safety Net Assistance Vehicle Resource Exemption Policy

EFFECTIVE DATE:	August 22, 2001

CONTACT PERSON:	Central Team (TA) at 1-800-343-8859; extension 3-9344,
	Eastern Team (FS); extension 3-1469.
	Medicaid contacts: Local District Liaison at (518) 474-8216, or, for New York City, (212) 268-6855.

Chapter 207 of the Laws of 2001 changes the vehicle resource exemption policy for applicants for and recipients of Temporary Assistance (TA).  Prior to this change, the amount exempted from consideration for vehicles used to seek or retain employment, or to travel to and from work activities, was established at two times the amount exempted under food stamps, or a higher amount as established by the district.  Effective August 22, 2001, this amount is no longer tied to the amount exempted by food stamps.  Social Services Law 131-n now sets the exempted amount for vehicles used to seek or retain employment, or to travel to and from work activities at $9,300, or at a higher amount as established by the district.  Vehicles not used to seek or retain employment or to travel to and from work activities continue to be exempted from consideration if their fair market value is $4,650 or less.  This policy applies to both Family Assistance and Safety Net Assistance applicants and recipients.  This change should not require any necessary action by districts because the exemption ceilings have not changed.

Additionally, recipients of TA are now allowed to establish separate bank accounts for the sole purpose of enabling the individual to purchase a first or replacement vehicle to seek, obtain or maintain employment.  Up to $4,650 may be exempted from resource limit consideration so long as the funds are not used for any other purpose.  Once established, districts must monitor the balance of these accounts at least at recertification to ensure that the funds are not being used for any other purpose.  Once it has been determined that the account has been used for purposes other than intended, the full amount of the funds in the account at the time of the withdrawal becomes countable towards the TA household's resource limit.  This policy applies to both Family Assistance and Safety Net Assistance recipients.  This exemption does not apply when determining the initial eligibility of applicants for TA.  This includes former recipients with previously established accounts, who subsequently re-apply for TA.

Food Stamp Implications

Recipients of TA remain categorically eligible for food stamps.  The resources of a categorically eligible member of a food stamp household are not included when determining whether the household's resources exceed food stamp eligibility limits.

Medicaid Implications

As described in 98 OMM/INF-02 and in OTDA 00 ADM--5, districts have the option to exempt vehicles with fair market values above the applicable TA standard when determining Medicaid eligibility for Low Income Families (LIF) or Singles/Childless Couples (S/CC).  Referral to Medicaid for a separate determination is not necessary when a district chooses to exempt a vehicle.  If a district does not choose to exempt a vehicle for Medicaid purposes for TA-eligible individuals, referral to Medicaid is required so eligibility can be determined under other Medicaid categories or Family Health Plus. Please note that one vehicle is exempt under Medically Needy eligibility rules. There is no resource test for Family Health Plus.  A separate bank account for the purpose of purchasing a first or replacing a vehicle is not exempt for Medicaid purposes under LIF or Medically Needy budgeting.  For S/CCs, a separate account may be exempt as a plan of self-support under the provisions of 18NYCRR 352.20(f).  For LIF, if total resources including the separate account to purchase a first or replace a vehicle exceeds the LIF resource standard of $3000, referral to Medicaid is necessary.  Such a bank account must be added to other countable resources and compared to the applicable resource standard.

Details will be provided in an Administrative Directive.