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.
Shelter expenses include the costs necessary to maintain a residence.
Utility costs include expenses for services or products such as fuel, electricity, water, and sewer.
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.
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.
Third party and/or vendor payments that are payments for shelter costs directly paid to the landlord or utility by someone outside the household is not an allowable shelter expense. If the household expense is paid on a sporadic basis, allow the deduction for the household.
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.
Allowable mortgage expenses:
Repayment of a loan to purchase a mobile home;
Repayment of a second, third, or later mortgage;
Costs for loans involving liens or judgments when failure to make the payment may result in the loss of the household’s shelter
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.
Additional shelter/utility expenses allowed:
Property taxes, state and local assessments, and insurance on the structure, but not insurance on the furniture or personal belongings;
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.
Charges for repair of a home that was substantially damaged or destroyed by a natural disaster, such as a fire or flood. Do not include charges for home repairs that have been or will be reimbursed by private or public relief agencies, insurance companies, or by any other source; and
Shelter costs for a home temporarily unoccupied by the household because of employment or training away from home, illness, or the abandonment of the home because of a natural disaster or casualty loss. For an unoccupied home to be included in the shelter costs, the household must intend to return to the home.
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.
PFS17969560 PA CAP updates to shelter costs April 21, 2016
At application, the CAO must verify shelter costs if the applicant:
Provided questionable information.
To be considered questionable:
Information on the application must be inconsistent with other information on the application or previous applications.
Information