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of the claimant’s gross income at the time of the request for compromise. If the claimant’s shelter cost is more than one-half of the claimant’s monthly gross income, reduce the claim by the difference of the claimant’s shelter cost and one-half of the claimant’s gross income.

If a reduction due to compromise results in a balance of less than $0.00, no previous payments by the claimant will be restored to the claimant.

Example 1 Ms. Parker has been charged a $3000 Food Stamp over-issuance. After applying the rules in “ Determining if the Claim Can Be Repaid Within Three (3) Years” above, she is expected to repay $1500 within three years. Ms. Parker’s monthly income is $900 in Social Security. Her shelter cost consisting of her rent of $650 and a Heating and Cooling Standard Utility Allowance of $300 totals $950. As seen in the calculation that follows, Ms. Parker’s Food Stamp claim may be reduced by an additional $500 because of her high shelter costs. Total Shelter Costs $950 - ½ of Gross Income ($900/2 = $450) $450 Additional Reduction $500 After the added hardship reduction, Ms. Parker’s Food Stamp claim may be reduced to $1,000 ($1,500 - $500 = $1,000) through compromise Example 2 Mr. Jones was over-issued $1,500 in Food Stamps. He repaid $1,100 through recoupment, leaving a balance of $400 and then requested a compromise. After applying the rules in “Determining if the Claim Can Be Repaid Within Three (3) Years” above, he is expected to repay $1,000 within three (3) years which is $500 less than the original claim amount. Mr. Jones’ shelter cost is less than one-half of his gross income so he is not eligible for a hardship reduction. Mr. Jones's’ claim can be reduced by only $500 ($1,500 - $1,000 = $500) through compromise. Since he only owes $400, the remaining balance is compromised, but he will not receive any restoration of payments that he already made.

Restoring Compromised Benefits to a Food Stamp Claim

The Food Stamp claimant must comply with his/her repayment agreement. If the claimant fails to make a required repayment for three consecutive months, the compromise will be voided, and the claimant must repay the full amount of the over-issuance. In addition, any portion of a claim that was compromised must be restored to the full amount of the over-issuance when there is a subsequent finding by the Office of Administrative Hearings or DC Superior Court that the claim is the result of fraud or an intentional program violation.

Restrictions on the Number of Compromises

Only one compromise may be made on any individual Food Stamp claim. The amount of benefits that were compromised may not be recalculated even if the claimant’s income, expenses, or group size changes.

Notification That a Compromise May Be Requested