Shelter Deduction SR 19-10 Dated 09/19 (FSM-A)

Allow the household to average shelter costs, as charged, if claiming actual expenses. Shelter costs may be averaged:

- over the period the bill is intended to cover;

- over the interval between scheduled payments if the household is billed less often than monthly; or

- over the certification period if the shelter costs are reported at certification.

• For non-target population households, deduct the amount of the verified unreimbursed monthly shelter costs, as charged, which exceed 50% of the assistance group's adjusted income, up to the maximum shelter deduction (See Part 601, Table I). See PART 601, Table J: Shelter Treatment, for shelter types, treatment and verification, and Section 603.09,Other Allowable Deductions: Utility Standard for more information.

• For target population households, deduct the total amount of verified unreimbursed monthly shelter costs, as charged, which exceeds 50% of the assistance group's adjusted income. There is no maximum deduction. The assistance group must have at least one member who meets the target population criteria.

• Prorate shelter costs, as charged, for assistance groups with members excluded for ineligible alien status, noncompliance with SSN enumeration or verification requirements, or noncompliance with ABAWD work requirements.

See Section 611.05, Income of Disqualified and Excluded Individuals, for proration procedures.

• Apply the deduction when the home is unoccupied by the assistance group due to employment away from the home, natural disaster, illness, or casualty loss. Allow the deduction as long as the home is not leased or rented in the assistance group's absence, the current occupants are not claiming shelter costs, and the assistance group intends to return to the home.

• Apply the homeless shelter deduction when the household:

- is charged for shelter for any part of the month;

- meets the definition of homeless as specified in PART 303.05, How to Verify Residence; and

- chooses to have the homeless shelter deduction applied rather than actual shelter costs, as charged.

• Apply the community residence shelter allowance if an individual resides in a certified community residence. (See PART 601, Table I: Food Stamp Deductions.) Do not allow actual shelter costs if the individual is entitled to the community residence shelter allowance. Do not deduct standard utility allowances in addition to the community residence shelter allowance.

Exception: Allow the telephone-only standard if an individual living in a certified community residence incurs telephone expenses. See Section 603.09, Other Allowable Deductions: Utility Standards.

Allowable shelter deductions include:

• rent, as charged, e.g., "net" family contribution for those in subsidized housing;

• condominium fees, as charged;

• all payments, as charged, related to the ownership of one’s home (mortgage, private mortgage insurance (PMI), taxes, assessments, insurance on the structure, but not on the personal property);

• unreimbursed incurred repair expenses, as charged, when the shelter is damaged due to natural disasters;

• water and sewer fees, as charged;

• costs, as charged, for installation, use, or maintenance of a well or septic system;

• basic service fees, as charged for one household touchtone phone, up to the amount of the telephone standard;

• installation fees as charged by a utility provider, minus any deposit required;

• heating/cooling and cooking fuel, as charged;

• non-heating/non-cooling electric costs, as charged; and

• garbage collection, as charged.

Exception: Reduce shelter cost by the amount paid by the town/city welfare agency in the month of application. For subsequent months, reinstate the actual shelter cost unless the town/city welfare agency states that it intends to pay an individual’s rent, or portion of the rent, on an on-going basis, in which case the shelter cost is reduced by the amount of the assistance for the specified time period. (See Part 601, Table J: Shelter Treatment.)

Reference: 7 CFR 273.9(d)(6)(ii)(A)&(B)