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ESA SNAP Policy Manual 147 If a recurring expense is billed less often than monthly, the household may elect to have the expense averaged over the period of time the expense is meant to cover (converted to a monthly expense). Example James is disabled. He has a $60 prescription, charged every three months for a 90-day supply, and $110 monthly insurance premium. The prescription expense needs to be converted to a monthly amount. Divide $60 over the three months the prescription is meant to cover to get a monthly amount of $20. The $20 amount would then be added to the $110 monthly premium for a total monthly amount of $130. Subtract $35 to get the monthly medical deduction amount of $95. 12.7 Shelter Deductions Households with allowable shelter expenses may receive a shelter deduction. SNAP has two types of shelter deductions:  Excess shelter deduction applies to households with shelter costs (including an SUA) in excess of 50 percent of the household’s net income after all other deductions.  Homeless shelter deduction may be elected by households that incur shelter costs and in which all members are experiencing homelessness. 12.7.1 Excess Shelter Deduction ESA allows an income deduction for monthly shelter costs that are more than 50 percent of the household’s income after applying the earned income, standard, excess medical, dependent care and child support deductions. The excess shelter deduction is composed of the following:  Allowable monthly shelter expenses (e.g. rent, mortgage)  Allowable monthly utility expenses, which in the District is in the form of an SUA; see Section 12.7.3, Utility Allowance Shelter expenses include the costs necessary to maintain a residence. Allowable shelter expenses include the following:  Rent  Mortgage for real property or a mobile home (allow principal and interest for mortgage)  Mandatory personal mortgage insurance  Second or third mortgage  Liens or judgments against the property  Property taxes and state and local assessments Return