Practically speaking, it won’t happen. No tzedaka organization has enough funds to cover every need, especially these kind of expenses, so they’ll first allocate funds for those whose needs are more basic. This halacha is still very relevant though; if someone owns a nice house but is now faced with little or no income, he will still receive tzedaka money even if he does not sell his house. (Whether he should sell or not is a different issue.)
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