1101 Boarders

A. Households with Boarders Persons defined as boarders in Section 102 who are not requested by the household to be treated as a household member, shall be excluded from the household, when determining the household’s eligibility and benefit level. The income of households owning and operating a commercial boarding house shall be handled as described in Section 1100. For all other households, payments from the boarder shall be treated as self-employment income and the household’s eligibility determined as follows. B. Income from the Boarder The income from boarders shall include all direct payments to the household for room and meals, including contributions to the household’s shelter expenses. Shelter expenses paid directly by boarders to someone outside of the household shall not be counted as income to the household. C. Cost of Doing Business The household will receive a 40% deduction from the gross income generated from the boarders as a cost of doing business. This procedure is automated. D. Deductible Expenses from Boarders The income from self-employment is earned income. Shelter costs the household actually incurs shall be used to determine the household’s shelter deduction, even if the boarder contributes to the household for part of the household’s shelter expenses. Shelter costs shall not include any shelter expenses paid directly by the boarder to a third party, such as to the landlord or utility company. Non-boarders for Whom Household Furnishes Meals Persons who receive meals only are not included in the definition of boarders. That portion of the cash compensation that the household receives for providing meals to such an individual that exceeds the cost of producing the meals would be considered income to the household.