560.8 Shelter/Utility Deduction

A household is entitled to a shelter/utility deduction when shelter and utility expenses are more than 50 percent of the monthly countable gross income after all other deductions.

A household that has an elderly or disabled person may receive a deduction for the full amount of its excess expenses. For all other households, see Chapter 560, Appendix A for the maximum allowable deduction.

NOTE:  The CAO may need to restore benefits if an SSI applicant is later found eligible for SSI benefits. In computing the amount to be restored, the CAO must allow an appropriate utility allowance retroactive to the SNAP application date or the initial SSI eligibility date, whichever is later.

The CAO must allow a deduction for expenses the household has to pay, whether the expenses are paid or not.

560.81 Allowable Shelter Expenses

The CAO must allow the principal and interest charges for continuing costs for the shelter occupied by the household, such as, rent, mortgage, or other costs including condominium and association fees.

560.811 Rent

Living arrangements are not dependent on ownership of the property where the household lives. If a person who lives in a rented house or apartment rents a room in the residence to someone else, the payment is considered self-employment income. SNAP rules do not limit self-employment from renting rooms to persons who own their residence.

Example:  X rents an apartment for $550 a month. Y moves in and pays X $250 a month. X receives SNAP benefits. Y buys and prepares food separately. How to treat the payment from Y depends on the arrangement between X and Y. When households share a residence, the CAO must discuss the situation with the household to determine if the households are actually sharing expenses or if a roomer situation exists.

If the two households are sharing expenses, the payment made from Y to X is not considered income to X, since the payment is simply passed on to the landlord.  X would be allowed shelter costs of $300 for the rent X pays.  If Y applies for SNAP, Y would be allowed shelter costs of $250. 

If the agreement between X and Y is that Y is paying X for a room, then the $250 payment is considered earned self-employment income for X.  Shelter costs of $550 would be allowed for X.

560.812 Mortgage

Allowable mortgage expenses:

Example: An arrested person borrowed money for bail, using his home as collateral. Payments are allowable as shelter costs, because failure to pay the loan, including interest, would result in the loss of the household’s shelter.

560.813 Other costs

Additional shelter/utility expenses allowed:

NOTE:  Delinquent property taxes and late/penalty fees for taxes, assessments, and insurance are not allowable shelter expenses.

NOTE:  Late fees and penalties on mortgages, utilities, and/or property taxes are not to be included as a part of shelter costs.

NOTE: If the caseworker determines that the taxes and insurance are escrowed with the mortgage, they are not considered allowable separate expenses and should be entered together on the shelter/utility screen and narrated. If they are not escrowed, they are allowable separate expenses and should be entered into eCIS and narrated.

 

NOTE:   The current occupants of the home, if any, must not be claiming the shelter costs for SNAP purposes. The home may not be leased or rented during the household’s absence.

560.82 Verification of Shelter Expenses

PFS17969560   PA CAP updates to shelter costs      April 21, 2016

At application, the CAO must verify shelter costs if the applicant:

To be considered questionable: