D.C. Mun. Regs. tit. 29, r. 29-6703

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 29-6703 - UNDUE HARDSHIP

6703.1

Undue hardship shall exist if one of the following criteria has been met:

(a) The heir, legatee, devisee or other interested person may become eligible for assistance payments without the proceeds from the estate;

(b) The decedent's home is the sole-income producing asset of a family business and recovery would result in an heir, legatee, devisee or other interested person losing their means of livelihood. The following two conditions shall be met to qualify under this criteria:

(1) The family business has been in operation at the property for at least twelve (12) months preceding the death; and

(2) Income from the business provides one hundred percent (100%) of a surviving heir, legatee, devisee or other interested person's livelihood;

(c) If the heir, legatee, devisee or other interested person is allowed to collect the proceeds from the estate, that individual may become ineligible for assistance payments; or

(d) Recovery would deprive the heir, legatee, devisee or other interested person of shelter and that individual lacks the financial means to obtain and maintain shelter.

6703.2

Undue hardship shall not exist under any of the following circumstances:

(a) When recovery would merely inconvenience or restrict the lifestyle of the heir, legatee, devisee or other interested person;

(b) The heir, legatee, devisee or other interested person divest assets to qualify under the undue hardship provision; or

(c) Recovery will merely prevent the heir, legatee, devisee or other interested person from receiving an anticipated inheritance.

6703.3

MAA may compromise its claim when collection of the full amount would result in an undue hardship. Consideration may be given to the following factors:

(a) Contribution by the heir, legatee, devisee or other interested person to the value of the asset or to the support or care of the decedent;

(b) Any outstanding debt with a higher priority, such as a mortgage, which has been assumed by the heir, legatee, devisee or other interested person; and

(c) Other compelling circumstances as determined by the District.

6703.4

Any waiver for undue hardship described in section 6703.1 shall only apply to the proportionate share of the decedent's estate that passes to the heir, legatee, devisee or other interested person.

D.C. Mun. Regs. tit. 29, r. 29-6703

Final Rulemaking published at 53 DCR 6353 (August 4, 2006)