6610 Allowable Shelter Costs
A shelter Is defined as a household's principal place of residence.
Only the following items will be considered allowable shelter costs.
1.Continuing charges for the shelter occupied by the household.
This includes rent or continuing charged leading to the ownership of the shelter. Such charges may be mortgage payments, payments of liens against the property (e.g. second mortgages made to repair the home or personal loans made using the property as collateral) or payments on loans for the purchase of a mobile home. Interest on all such payments will also be allowable.
When a household moves into a new residence and must pay the "first and last month's rent", both month's rent will be allowed as a shelter cost in the month in which the household is billed for the two months of rent.
2.Property taxes on the household's shelter. This includes State and local assessments as well as voluntary road or other improvement taxes. Identifiable personal property or real estate taxes on mobile homes used as a permanent residence will also be allowed.
NOTE:Personal property taxes other than those on mobile homes used as a permanent residence are not allowable.
Under the Homestead Tax Act, households in some counties may be reimbursed for part or all of their real estate taxes. Since the date of receipt or the amount of reimbursement cannot be anticipated, the full amount of the real estate tax bill Incurred will be allowed as a shelter cost.
3.Insurance on the household's shelter. Insurance on the structure itself but not separate costs for insuring furniture or personal belongings are allowable. If homeowner's insurance is sold as a package and the company does not Identify the portion of the premium paid for coverage on the contents of the home, the entire premium is allowable. The case record must contain documentation to this effect.
Membership charges paid to organizations offering insurance to members are not allowable.
4.Utility costs. Allowable utility costs include:
a.The cost of cooking fuel;
b.The cost of heating fuel;
c.The cost of cooling (a verifiable utility expense relating to the operation of air conditioning systems, room air conditioners, or evaporative [water] coolers);
d.The cost of electricity;
e.Water and sewer costs;
f.Garbage and trash collection fees;
g.The basic service fee for one telephone as shown on the telephone bill Including tax on the basic fee; and
h.Fees charged by the utility provider for initial installation of the utility.
One time deposits on any utility are ~ considered installation costs and will not be included as a shelter cost.
The amount of the basic service fee for one telephone will generally be the fee that appears on the client's telephone bill. If the amount appears high in the judgment of the worker, verification of the services covered in the basic fee may be requested.
When a household member receives two telephone bills (e.g., one from Southwestern Bell and one from AT&T), the worker will examine both bills to determine the total allowable basic fees and taxes on such fees. Basic fees will include charges for line access (including mileage charges) and for leasing of equipment for one telephone. Long distance charges are not allowable. Fees to companies specializing in reduced rate long distance call service are not allowable. When a household has "Lifeline Service", charges for local calls in excess of the number permitted will not be allowable. The reduced basic service fees such households incur will be allowable.
5.Shelter costs for a home temporarily unoccupied by its owners. Shelter costs will be allowed for those homes that are temporarily unoccupied by the owners because of employment or training away from home, illness or abandonment caused by a natural disaster or casualty loss.
In order to include the costs of a home temporarily unoccupied by the owners, all four of the following criteria must be met:
The household must be incurring these shelter costs;
The household must intend to return to the home;
The home must not be leased or rented during the absence of the owners; and
If there are occupants currently in the home, these occupants must not be claiming the shelter costs for food stamp purposes.
Verification. If a household claims expenses for a temporarily unoccupied home, the worker will verify the household's actual utility expenses for the unoccupied home in every case and will not use the standard utility allowance.
6.Charges for Re~air of Home. Charges for the repair of the home
which was damaged or destroyed due to a natural disaster such
as, but not limited to, a fire or a flood are deductible when
such charges are billed or otherwise become due. Shelter costs
will not include charges for repair of the home that have been
or will be reimbursed by private or public relief agencies,
insurance companies, or from any other source.
*7.For homeless households. a shelter estimate of $143. A home-
less household, as defined in FSC 1850, is composed entirely of
homeless individuals. All homeless households, including those
residing temporarily with another household but qualifying for
separate household status as per FSC 1630, will be eligible to
use a shelter estimate of $143 as the household~s-total shelter
cost if the household reasonably expects to incur shelter costs
during the month. Households residing temporarily with another
household must pay the other household for shelter in order to
qualify for the shelter estimate.
If the household verifies its actual costs are higher than $143, the household may use its actual costs rather than the standard.
If a homeless household has difficulty in obtaining traditional types of verification - e.g., rent receipts or receipts for utility bills, the caseworker may use collateral contact to verify actual shelter costs. Or, in the case that a homeless household has declared shelter costs which are comparable to costs incurred by other homeless households, no verification need be required. (Example, a household resides in a shelter with a basic charge known to the county office.)