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STANDARDS OF ASSISTANCE 44-113 (Cont.) INCOME Regulations

44-113 NET INCOME (Continued)

2. Interest on encumbrance payments (do not deduct principal payments). 3. Insurance. 4. Utilities. 5. Upkeep and major repairs.

If a complete dwelling unit is rented the county after consultation with the recipient (a) deducts the amount actually expended each month for upkeep and repairs; or (b) deducts 15% of the gross monthly rental plus $4.17 a month.

Note: The above expenses are prorated on the same periodic basis as the periodic basis on which the rental is received (i.e., annually, quarterly, monthly, etc.). Multiply rental income received weekly by 4-1/3 to get monthly income.

Note: Under the ordinary life estate agreement, the life tenant is entitled to the use and/or income from the property and is responsible for the usual costs of ownership such as taxes, insurance, upkeep, etc. However, if the life estate agreement stipulates the remainderman is responsible for certain expenses, such payments do not represent income to the life tenant.

b. Rental of rooms

See Section 44-113.212 for computing self-employment net and Room and Board

income.

c. Sale of real

The interest received is net income (principal payments property under

represent conversion of property from real to personal contract of

property). Deduct any interest payments on prior sale, title not

encumbrances in determining net income from interest passing.

received from sale of real property under contract of sale.

d. Personal property

Deduct from gross rental all expense necessary to (rental of trucks,

maintenance, etc. equipment, etc.)

e. Personal property

All interest received is net income, except interest on savings (interest on money,

accounts as provided in W&IC 11009. stocks, bonds, etc,)

CALIFORNIA-DSS-MANUAL-EAS MANUAL LETTER NO. EAS-11-01 Effective 10/24/11

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