Albany DSS applies the Medicaid home equity exclusion by treating a dementia applicant's primary home as exempt when intent to return or a qualifying occupant is shown and equity stays under the limit. For 2026 nursing-facility and community-based long-term care, New York caps exempt equity at $1,130,000, according to Caring Professionals citing the state health department in the 2026 limit update. The exclusion means DSS does not count the home toward Medicaid resource limits while that test is met.
Dementia often leads to nursing-facility care or community-based long-term care. Community-based long-term care means Medicaid-paid help at home or in the community. Albany DSS reviews intent, occupant, and equity proof as part of that approval.
Medical information disclaimer: This article is for general educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a physician or other qualified health professional about symptoms, medications, tests, or treatment decisions.
Official resources:
- Read the official guidance from Ny — Use this primary source to verify the official guidance.
- Read the official guidance from Caringprofessionals — Use this primary source to verify the official guidance.
Table of Contents
- Where to file in Albany County
- How much home equity stays exempt?
- How does intent to return work with dementia?
- Which household members lift the cap?
- What to document and what exemption does not cover
Where to file in Albany County
Albany County residents apply for Medicaid through Albany DSS at 162 Washington Avenue, Albany, NY 12210, phone (518) 447-7492, as listed in the state health department directory. The New York State Department of Health identifies that office for county Medicaid applications.
File the long-term-care application there when dementia care needs nursing-facility payment or community-based services. Bring home-related proof with the application. Missing proof can slow the decision.
How much home equity stays exempt?
New York exempts a primary residence when the applicant intends to return home or a qualifying family member lives there, if equity stays below the cap. LegalClarity describes this home-residence rule for New York Medicaid. Equity means the ownership value left after mortgages and liens.
If countable equity exceeds $1,130,000 and no exempt resident lives there, the applicant is ineligible for Medicaid payment of nursing-facility or community-based long-term care. LegalClarity states that loss of exemption as the direct result. Families near the limit should check equity evidence early.
How does intent to return work with dementia?
For an institutionalized person with dementia, New York accepts subjective intent to return home. NY Health Access and NYLAG explain that intent may be stated in a signed letter or affidavit by the applicant or representative even when return is medically unlikely, in the home-exemption guide.
A daughter acting for a mother with advanced dementia in a nursing facility can therefore sign a statement that her mother intends to return home. DSS can accept that statement without proof that return is medically likely. The written statement should be clear, signed, dated, and kept with the case file.
Which household members lift the cap?
The $1,130,000 equity cap does not apply when a spouse, child under 21, or blind or disabled child lives in the home. Caring Professionals, citing the state health department, reports this exception for protected households. Those households keep the exemption without meeting the equity cap.
The rule is stricter when no spouse, young child, or blind or disabled child lives there. Then equity above the cap converts the home from exempt to countable for nursing-facility or community-based long-term-care payment. LegalClarity ties that outcome to ineligibility for those Medicaid payments.
What to document and what exemption does not cover
The Davies Law Firm advises families to document intent, occupant status, and equity evidence for Albany DSS because loss of that showing can delay dementia long-term-care approval. Useful papers include: Lifetime exemption does not bar post-death recovery.
The Office of the Medicaid Inspector General states that OMIG may place a lien on real property in which a deceased recipient held an interest to preserve the Medicaid claim, in the estate-recovery guidance. Keep copies and update DSS if occupants or equity change.
- signed intent-to-return letter or affidavit from applicant or representative
- proof of who lives in the home, such as spouse or child status
- equity evidence, such as appraisal and mortgage statements
