3004-5 Grant Computation

3004-5 GRANT COMPUTATION

Step 1 – Community Fuel Points

Heating cost points are assigned to each community in the state, based upon the community's annual fuel cost and climatic conditions. These points are listed in Addendum A .

ECOS Energy Community Online System calculates the points. Any point adjustments noted are only used for manual calculations.

If the household primarily uses natural gas for heat, use the community heating cost points for natural gas. If no natural gas points are listed for a specific community, use the points from the nearest community with natural gas on the listing.

If the household primarily uses self-harvested wood or coal for heat, use the community heating cost points for oil multiplied by 0.5.

If the household primarily uses purchased wood or coal for heat, use the community heating cost points for oil multiplied by 0.8.

If the household primarily uses wood pellets for heat, use the community heating cost points for oil multiplied by 0.9.

If the household primarily uses steam for heat, regardless of how the steam is produced, use the community heating cost points for oil.

If the household primarily uses electric for heat, use the community heating points for oil.

If the household primarily uses gasoline to heat their vehicle that has been used as their home for 60+ days, use the community heating points for oil

Step 2 – Dwelling Type

Multiply the community heating cost points by the first factor listed below that describes the household's dwelling:

the factor of 1.4 if the household resides in a mobile home or boat with heated living space of 980 square feet or more;

the factor of 0.4 if the household resides in a recreational vehicle, tent, or pickup camper;

the factor of 0.15 if the household resides in a one-room dwelling such as a studio apartment, hotel, or boarding home;

the factor of 0.35 if the household resides in a boat with heated living space less than 980 square feet;

the factor of 0.55 if the household resides in a one-bedroom dwelling, or a one-room house or cabin without bedrooms;

the factor of 1.3 if the household resides in a three-or-more-bedroom single family, duplex, or triplex home;

the factor of 0.7 if the household resides in a two-bedroom unit in an apartment building of four or more attached units or resides in a mobile home with less than 980 square feet of heated living space, regardless of the number of bedrooms;

the factor of 1 if the household resides in a two-bedroom single family home, duplex, or triplex home;

the factor of 0 if the household is applying for a SRHUD Subsidized Rental Housing Utility Deposit .

A loft counts as one bedroom.

If the household resides in a single residence with one or more households, the heating cost points are reduced to the household's proportionate share of the home heating expenses.

Step 3 – Household Size and Income

Verify each household's gross income for the month prior to application. Household members are considered categorically eligible if they have received federally funded assistance in any month during the following period: The month prior to the submission of the HAP1 State of Alaska's LIHEAP application through the month in which LIHEAP Low Income Home Energy Assistance Program eligibility is determined. Verification for non-categorical eligible households may be provided through documentary evidence (wage stub, award letter, etc.), DPA Division of Public Assistance and DOL Department of Labor records, or impartial third parties such as fee agents, village council representatives, or social service agencies.

Assign each household the following percentage of heating cost points based upon the household's gross monthly income and family size, expressed as a percentage of the Alaska poverty level. The Alaska poverty level figures are included in Addendum E .

100 percent of points if the household's gross monthly income is no more than 25 percent of Alaska's federal poverty level;

90 percent of points if the household's gross monthly income is more than 25 percent but no more than 50 percent of Alaska's FPL Federal Poverty Level ;

80 percent of points if the household's gross monthly income is more than 50 percent but no more than 75 percent of Alaska's FPL Federal Poverty Level ;

70 percent of points if the household's gross monthly income is more than 75 percent but no more than 100 percent of Alaska's FPL Federal Poverty Level ;

60 percent of points if the household's gross monthly income is more than 100 percent but no more than 125 percent of Alaska's FPL Federal Poverty Level ;

50 percent of points if the household's gross monthly income is more than 125 percent but no more than 150 percent of Alaska's FPL Federal Poverty Level .

40 percent of points if the household’s gross monthly income is more than 150 percent but no more than 175 percent of Alaska’s FPL Federal Poverty Level .

30 percent of points if the household’s gross monthly income is more than 175 percent but no more than 200 percent of Alaska’s FPL Federal Poverty Level .

20 percent of points if the household’s gross monthly income is more than 200 percent but no more than 225 percent of Alaska’s FPL Federal Poverty Level .

If the household's gross monthly income exceeds the maximum allowable FPL Federal Poverty Level , the household is not eligible.

Step 4 – Priority Groups

Add one point to the income adjusted heating cost points if the household meets the vulnerable population definition per HAP MS 3000-2.

Step 5 – Heating Points of 2.0 or More

Households must have heating cost points of 2.0 or more to be eligible for HAP Heating Assistance Program . If the household's total points compute to less than 2.0, the household is denied as "Limited Heating Points."

Step 6 – Round Points

Round the final total heating cost points to the nearest whole number. The total heating cost points is limited to 35 points.

Step 7 – Multiply by the Benefit Rate to Determine Household Benefit

ECOS Energy Community Online System will multiply the final heating points by the benefit rate to determine the amount of the household's heating assistance.

Step 8 – Subsidized Housing Adjustment – If Applicable

Households residing in any type of subsidized housing who are responsible for paying all or a portion of their heating costs directly to a vendor and who also receive a utility allowance as part of their housing cost calculation shall have their total benefit reduced by 50 percent, regardless of their utility allowance amount.

Note: Applicants living in subsidized housing and participating in a step-down program that automatically decreases the rental assistance subsidy paid by the authority after year one, for example AHFC Alaska Housing Finance Corporation , should be treated as a regular application with no utility allowance after the first year.

Note: The amount of the HAP Heating Assistance Program grant may be reduced by the amount of the unpaid balance that the household owes the division for previously awarded heating assistance to which the household was not entitled. The division will use this method of recoupment of overpayments only if the household has not responded to the division's request for repayment or the household defaults on its repayment agreement.

The following examples illustrate how a household's heating assistance benefit is determined using a price per point. For the FY Fiscal Year 2027 heating assistance season, this rate is $175 per point for LIHEAP Low Income Home Energy Assistance Program eligible households and $130 per point for AAHP Alaska Affordable Heating Program eligible households.

Example 1 Benefit Calculation: Step 1. Community, Fuel Anchorage , N Gas 5 points Step 2. Dwelling 3 bedroom house 5 points x 1.3 = 6.5 points Step 3. Household Size, Income 4, $3,500 100.1-125% of poverty = 60% 6.5 points x 0.6 = 3.9 points Step 4. Household includes elderly, disabled or child under age 6 No N/A Step 5. Heating points of 2.0 or more Yes 3.9 points Step 6. Round points Rounded = 4 points Step 7. Multiply by benefit rate 4 points x $175 = $700 Step 8. Subsidized Housing Adjustment Yes $700 x 0.5 = $350 Example 2 Benefit calculation: Step 1. Community, Fuel Fairbanks , Oil 10 points Step 2. Dwelling 2 bedroom, 4+ unit bldg 10 points x 0.7 = 7 points Step 3. Household Size, Income 2, $2,800 125.01-150% of poverty = 50% 7 points x 0.5 = 3.5 points Step 4. Household includes elderly, disabled or child underage 6 Yes 3.5 points + 1 = 4.5 points Step 5. Heating points of 2.0 or more Yes 4.5 points Step 6. Round points Rounded = 5 points Step 7. Multiply by benefit rate 5 points x $175 = $875 Step 8. Subsidized Housing Adjustment No $875 x 1.0 = $875 Example 3 Benefit calculation: Step 1. Community, Fuel Savoonga, Oil 27 points Step 2. Dwelling 2 bedroom house No adjustment Step 3. Household Size, Income 5, $3,000 75.01-100% of poverty = 70% 27 points x 0.7 = 18.9 points Step 4. Household includes elderly, disabled or child underage 6 Yes 18.9 points + 1 = 19.9 points Step 5. Heating points of 2.0 or more Yes 19.9 points Step 6. Round points Rounded = 20 points Step 7. Multiply by benefit rate 20 points x $175 = $3,500 Step 8. Subsidized Housing Adjustment No $3,500 x 1.0 = $3,500 Example 4 Benefit calculation: Step 1. Community, Fuel Anchorage , N Gas 5 points Step 2. Dwelling Studio apartment 5 points x 0.15 = 0.75 points Step 3. Household Size, Income 1, $2,100 125.01-150% of poverty = 50% .75 points x 0.5 = 0.375 points Step 4. Household includes elderly, disabled or child underage 6 No N/A Step 5. Heating points of 2.0 or more No 0.375 points = less than 1 point Step 6. Round points N/A Step 7. Multiply by benefit rate Ineligible Step 8. Subsidized Housing Adjustment n/a n/a

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