B CA Payment Standard (A1/A2) CA Payment Standard (A1/A2) Policy Verification Legal Authorities The CA Payment Standard is used to determine the maximum CA benefit amount. Policy A1 and A2 are the two payment standards for CA which determine the CA payment level. A1 CA Payment Standard The A1 standard is used when any of the following apply: ● When the budgetary unit has an obligation to pay a shelter cost, including any of the following: Homeowner association fees Mobile home space or taxes Mortgage Property taxes (residence or property) Rent (residence or property) ● The participant is on a lease and residing in a housing unit subsidized by a local, state, tribal, or the federal government (i.e., public or subsidized housing). Federal government subsidy includes credits or cash allowances. NOTE The A1 payment standard applies regardless of whether a participant has any obligation to pay a portion of the rent. ● The participant works in exchange for rent (in kind income). ● The participant has shelter costs paid by a third party for fewer than three months. ● A participant in the military receives Basic Allowance for Housing (BAH). NOTE Military allowances are shown on the Leave and Earnings Statement (LES) as additions and deductions. ● The participant who has the shelter cost obligation is in foreclosure action, and the mortgage company accepts back payments. ● The following do not require a shelter cost obligation: Kinship Care (KS) cases. Kinship Foster Care (KF) cases. Legal Permanent Guardian (LPG) cases. The annual A1 payment standard is 36% of the 1992 Federal Poverty Level (FPL). (See the A1 Standard Table - CA for the monthly payment standard.) A2 CA Payment Standard The A2 standard is used when any of the following apply: ● The budgetary unit is not obligated to pay shelter costs. ● The shelter costs are paid on an ongoing basis by a third party for three consecutive months or more. NOTE FAA uses the A1 payment standard when the participant is on a lease in a housing unit subsidized by a local, state, tribal, or the federal government. ● The budgetary unit has an obligation to pay shelter costs but fails to provide verification of the cost. (See Verification for verification requirements.) ● The budgetary unit is not eligible for the A1 Payment Standard. The annual A2 Payment Standard is 23% of the 1992 Federal Poverty Level (FPL). (See the A2 Standard Table - CA for the monthly payment standard.) Verification The obligation to pay a shelter expense for A1 must be verified when any of the following occur: ● New application when originally requesting CA or after a lapse in CA benefits ● Three years from the date the expenses were last verified when the case is ongoing. NOTE When the three-year period expires before the approval period ends, shelter expenses are verified at the next renewal. ● A change of address is reported. ● A change from A2 to A1 is reported. ● Information is questionable(g) . A1 Verification Verification that can be used for the A1 Payment Standard includes any of the following: ● Rent receipt ● Landlord's statement ● Lease agreement ● Mortgage records, receipts, or payment booklet ● Housing assistance payments (HAP) contract or agreement ● Tax assessment notice ● Verification of Living Arrangements/Residential Address (FAA-0065A) form ● Collateral contact to any of the following: Landlord Leasing agent Mortgage company Tax assessor's office NOTE Collateral contact can only be made to clarify documented verification or when the participant is unable to obtain the verification and asks for assistance. A2 Verification Verification is not required to verify the A2 Payment Standard when the participant states they do not have an obligation to pay shelter expense. Legal Authorities AAC R6-12-701 AAC R6-12-702 AAC R6-12-703 AAC R6-12-704 AAC R6-12-705 AZ State TANF Plan Prior Policy last revised 10/27/2025 effective 09/02/2025 This site works best with JavaScript enabled