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E-8210 Household of Another Person
Revision 09-4; Effective December 1, 2009
E-8211 Contributing Less Than Pro-Rata Share
Revision 09-4; Effective December 1, 2009
Reference: Appendix XIV, Chart A
If a person contributes less than his or her pro-rata share of general household expenses, use the one-third reduction rule. No opportunity for rebuttal is offered.
Example: Alice Beckham lives with her son in his home. General household expenses total $350 ($175 pro-rata share). Mrs. Beckham contributes only $125 per month. Count 1/3 FBR as support and maintenance.
E-8212 Contributing an Earmarked Share of Food and Shelter
Revision 15-4; Effective December 1, 2015
If a person contributes a specific amount for food and/or shelter, but the amount contributed is less than the person's pro-rata share for each earmarked expense, use the one-third reduction rule. No rebuttal is offered.
Example 1: A person lives in his sister's home with his sister, the sister's spouse and child. The monthly household food expenses total $240 ($60 pro-rata share); the monthly household shelter expenses total $320 ($80 pro-rata share). The person pays his sister $55 a month for food and nothing for shelter. The person does not pay his pro-rata share of either food or shelter expenses. Count 1/3 FBR as S/M.
Example 2: Another person lives in his daughter's home with her family of five. The household receives SNAP food benefits for all six members, but these benefits do not cover the household's total food expenses. The person does not contribute toward the food expenses not covered by SNAP, nor does he pay anything toward shelter costs. Count 1/3 FBR as S/M.
E-8213 Contributing an Earmarked Share of Either Food or Shelter
Revision 09-4; Effective December 1, 2009
If a person contributes an earmarked pro-rata share of either food or shelter expenses, but not both, count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial the person must be given an opportunity to rebut and show that actual value is less.
Example: Emily Fairchild lives with her brother and his family of three. Ms. Fairchild contributes her pro-rata share of shelter expenses but not of food expenses. Count 1/3 FBR + $20 as S/M. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial Mrs. Fairchild must be given an opportunity to rebut and show that the actual value is less. Monthly household food expenses total $240 ($60 pro-rata share); monthly household shelter expenses total $320 ($80 pro-rata share). Ms. Fairchild contributes $50 per month for food and $85 per month for shelter. The actual value is $5.00 ($140 client's total pro-rata share - $135 client's total contribution = $5.00).
Example: Gladys Haley lives with her son in his home. She pays her pro-rata share of food expenses but not of shelter expenses. Count 1/3 FBR + $20 as S/M. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial Ms. Haley must be given an opportunity to rebut and show that the actual value is less. Monthly household food expenses total $200 ($100 pro-rata share); monthly household shelter expenses total $400 ($200 pro-rata share). Ms. Haley contributes $100 for food, but does not contribute anything for shelter. In this situation the actual value is $200 ($300 total pro-rata Share - $100 client's contribution = $200.) Count the presumed maximum S/M of 1/3 FBR + $20 if this is less than the actual value.
E-8214 Separate Food Purchases
Revision 15-4; Effective December 1, 2015
If the person purchases his food separately from other household members, then shelter is the only consideration. Count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, the person must be offered an opportunity to rebut and show that the actual value is less.
Example: A person lives in her daughter's home. The daughter's spouse and their two children also live there. The person purchases her food separate from the rest of the household, but does not pay her pro-rata share of shelter expenses. Count 1/3 FBR + $20. If the person is income-eligible, no further development is required. If counting 1/3 FBR + $20 results in ineligibility, prior to denial, the person must be given an opportunity to rebut and show that the actual value is less. The monthly household shelter expenses total $700 ($140 pro-rata share), and the person contributes $100. The actual value is $40 ($140 pro-rata share – $100 person's contribution = $40).
E-8220 Ownership or Rental Liability
Revision 09-4; Effective December 1, 2009
A person has an ownership interest or rental liability, and someone else is directly paying all or part of the person's pro-rata share of household expenses. Cash is not given to the person.
If the person is the householder (has ownership interest or rental liability), count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial the person must be given an opportunity to rebut and show that the actual value of the S/M is less.
Note: The one-third reduction rule never applies if the person is the householder.
E-8221 Receipt of Support and Maintenance (S/M) from Inside the Household
Revision 09-4; Effective December 1, 2009
A person living in his or her own household may be provided in-kind S/M from other household members living in the household.
Note: S/M should be developed only if the 1/3 FBR + $20, in combination with other countable income, would cause ineligibility.
If the person is the householder, others live with him/her, but he/she pays a pro-rata share of household expenses, there is no S/M.
Example: Scott Nance lives in his own home. His daughter and her two children live with him. Household shelter expenses are as follows: annual property taxes of $1,200 ($100 monthly) and monthly utility costs of $110. The pro-rata share of shelter costs is $52.50 ($100 taxes + $110 utilities = $210 total shelter expenses divided by 4 household members = $52.50 pro-rata share). Household food expenses total $550 ($137.50 pro-rata share). Thus, the pro-rata share of total household expenses is $190 ($52.50 for food + $137.50 for shelter = $190). Mr. Nance's daughter pays the taxes and utilities of $210 per month; Mr. Nance pays the $550 for food. Since Mr. Nance pays more than his pro-rata share of household expenses, there is no S/M.
If the person is the householder and others live with him/her, but he/she does not pay his pro-rata share of household expenses, count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial the person must be given an opportunity to rebut and show that the actual value is less.
Examples:
- Vicki Neal lives in her own home. Her adult son lives with her. Ms. Neal and her son purchase their food separately, but she does not pay her pro-rata share of shelter expenses. Count 1/3 FBR + $20 as S/M. If Ms. Neal is income-eligible, no further development is required. If counting 1/3 FBR + $20 results in ineligibility, prior to denial Ms. Neal must be given an opportunity to rebut and show that the actual value is less. Ms. Neal pays the cost of butane, which is $35 per month. Her son pays the entire electricity bill of $80 per month directly to the vendor. Thus, shelter costs total $115 ($57.50 pro-rata share). The actual value is $22.50 ($57.50 pro-rata share - $35 client's contribution = $22.50 S/M).
- Donna Hipple lives in her own home. Her adult son lives with her. Ms. Hipple does not pay her pro-rata share of household expenses. Count 1/3 FBR + $20 as S/M. If Ms. Hipple is income-eligible, no further development is required. If counting 1/3 FBR + $20 results in ineligibility, prior to denial Ms. Hipple must be given an opportunity to rebut and show that the actual value is less. Monthly household expenses consist of $500 for shelter ($250 pro-rata share) and $300 for food ($150 pro-rata share). Ms. Hipple buys all food ($300), and her son pays all shelter costs ($500). Since the pro-rata share of total household expenses is $400 ($250 pro-rata for shelter + $150 pro-rata for food = $400), the actual value of S/M is $100 ($400 pro-rata share - $300 Ms. Hipple's contribution = $100).
E-8222 Receipt of Support and Maintenance (S/M) from Outside the Household
Revision 18-4; Effective December 1, 2018
If the person is the householder (has ownership interest or rental liability) and someone else outside the household is directly paying all or part of the person's pro-rata share of household expenses, count 1/3 of the Federal Benefit Rate (FBR) + $20.
If counting 1/3 FBR + $20 does not make the person ineligible, no further development of S/M is needed.
If counting 1/3 FBR + $20 results in ineligibility, prior to denial, allow the person the opportunity to rebut and show that the actual value of the S/M is less.
Example: Elizabeth Smith lives alone in a rented apartment. Her rent is $1400 a month. Ms. Smith pays $700 and her daughter, who does not live in the household, pays the other $700 directly to the landlord. Ms. Smith pays all other bills. Current Market Rental Value (CMRV) $1400 -$700 = $700 > 1/3 FBR +$20. S/M = 1/3 FBR + $20.
Note: The one-third reduction rule never applies if the person is the householder.
E-8222.1 Rental Subsidy - Receipt of Support and Maintenance (S/M) from Outside the Household
Revision 18-4; Effective December 1, 2018
Reference: Appendix XIV, Chart B
Rental subsidy is unearned income that represents S/M from outside the household. Rental subsidy policy applies only when:
- someone in the household has a rental liability;
- the rental property is owned by a parent or child of someone in the household; and
- the One-Third Reduction Rule (1/3 FBR) does not apply.
If the amount of rent required by the property owner equals or exceeds either the current market rental value (CMRV) or 1/3 FBR + $20, then there is no rental subsidy countable as outside S/M.
If the amount of rent required by the property owner is less than both the CMRV and 1/3 FBR + $20, then the rental subsidy countable as outside S/M is the lessor of the:
- difference between 1/3 FBR + $20 and the amount of rent required; or
- difference between the CMRV and the amount of rent required.
Example: Royce Jones, a disabled adult, lives alone in a home owned by his parents. He pays all his own utilities, but does not pay the CMRV. Mr. Jones pays $50 per month rent. His parents state that the normal rate to rent the house is $250 per month (not including utilities). The difference between the CMRV and the rent value is $200 ($250 - $50). The difference between 1/3 FBR + $20 and the amount of rent required is $126.66 ($176.66 - $50). Because $126.66 is less than $200, $126.66 is countable S/M.
Notes:
- As Rental Subsidy considers only the rental expense, explore potential S/M for remaining household expenses (e.g., utilities or food).
- Accept owner declaration of CMRV. Contact with a knowledgeable source, such as a realtor, is not required unless the eligibility specialist considers the value questionable.
Related Policy
Receipt of Support and Maintenance (S/M) from Inside and Outside the Household, E-8223
E-8223 Receipt of Support and Maintenance (S/M) from Inside and Outside the Household
Revision 09-4; Effective December 1, 2009
If a person receives S/M from both inside and outside the household, count 1/3 FBR + $20. If the person is income-eligible, no further development is needed. If counting 1/3 FBR + $20 results in ineligibility, prior to denial the person must be given an opportunity to rebut and show that the sum of S/M from inside the household and S/M from outside the household is less.
Example: Bob Davis lives in his own home. His daughter and her child live with him. He receives S/M from both inside and outside the household. Count 1/3 FBR + $20 as S/M. If he is income-eligible, no further development is required. If counting 1/3 FBR + $20 results in ineligibility, prior to denial Mr. Davis must be given an opportunity to rebut and show that the actual value is less. Monthly household food expenses total $300 ($100 pro-rata share). Monthly household shelter expenses total $600 ($200 pro-rata share). The daughter buys the food, but Mr. Davis gives her $50 per month. Mr. Davis' son pays all shelter costs directly to the vendors (taxing authority and utility company). In this situation, the actual value of S/M is $250 ($100 pro-rata share for food - $50 client's contribution = $50 S/M from inside the household + $200 S/M from outside the household = $250). Count the maximum S/M of 1/3 FBR + $20 if this is less than the actual value.