Policy

The utility expenses, which are billed separate from or itemized with rent or mortgage payments on a regular basis are used to determine the allowable utility allowance for the NA budgetary unit. A utility allowance amount is used to allow a standard amount in place of the actual utility expenses. The utility allowance is also used to calculate the shelter deduction.

The amount of the utility allowance is determined by all of the following:

● An obligation to pay allowable utility expenses

● Verified allowable utility expenses

● The size of the NA budgetary unit

NOTE Participants who are disqualified are included when determining the size of the NA budgetary unit. However, household members not receiving benefits are not included when determining the size of the budgetary unit.

Budgetary units billed separately for utility expenses are allowed one of the following utility allowances:

● Standard Utility Allowance (SUA)

The budgetary unit is eligible for SUA when any of the following conditions are met:

● Obligated to pay a heating or cooling expense separately from rent or mortgage on a regular basis. (See Example 1 )

NOTE The budgetary unit may use the utility for only heating or for only cooling. See Standard Utility Allowance Expenses for the type of expenses that are considered heating or cooling sources.

● Receive Low Income Home Energy Assistance Program (LIHEAP) or Power AZ payments and the budgetary unit has a participant who is elderly or has a disability. (See Example 2 )

NOTE The payment must be $20 or more annually and be received in the application month or any of the 12 months before the application month.

● The heating or cooling expenses exceed the Energy Assistance payments. (See Example 3 )

● Arizona Simplified Nutrition Assistance Program (AZSNAP) participants who pay at least one allowable utility expense other than telephone. (See AZSNAP for more information about the program.)

● Limited Utility Allowance (LUA)

The budgetary unit is eligible for LUA when obligated to pay at least two non-heating or non-cooling utility expenses. (See Example 4 )

NOTE When determining eligibility for LUA, a telephone expense can be used as one of the two non-heating or non-cooling expenses

● Telephone Utility Allowance (TUA)

The budgetary unit is eligible for TUA when they are obligated to pay only a telephone expense.

NOTE When utility expenses are claimed for more than one residence in the same month, only one utility allowance is allowed.

(See Utility Allowance Current Amount for the current utility allowance amount)