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Chapter: 1600 Assets

Program: FS 7 Exception: Disaster related insurance settlements or assistance from other sources received for the replacement or repair of a lost, damaged or stolen excluded asset is excluded as income and assets in the determination of food stamp eligibility.

Exception: Up-front diversion payments are considered unearned lump sum payments and are excluded as income in the food stamp budget.

If the lump sum payment is earned income, such as a bonus or commission, a lump sum for annual leave, etc. it must be counted as earned income in the month of receipt. Any earned income left over after the month of receipt will be considered an asset.

Recurring SSI lump sum payments are included as unearned income. Generally, recurring SSI lump sum payments are for drug and alcohol addictions and are not paid in one non-recurring lump sum, but over a period of time until a lump sum is paid off. 1610.0521 Prorated Money (FS) Money received as a lump sum intended to be used over a specified period by self-employed individuals or students is not included as an asset. This type of money is prorated income. The exclusion period covers the entire period for which the income is prorated. Any of the excluded funds that are combined with other funds in a checking or savings account will be excluded for six months from the date they were combined. 1610.0526 Disaster Assistance (FS) Permanently exclude:

1. payments, including disaster unemployment assistance, received under the Disaster Relief Act of 1974 {P.L. 93-288, Section 312(d)}, as amended by the Disaster Relief and Emergency Assistance Amendments of 1988 {P.L., 100-707, Section 105(i)] from assets. 2. National Flood Insurance Program (NFIP) payments made under the National Flood Insurance Act of 1968, as amended by Public Law 109-64, enacted on September 20, 2005.

Exclude interest earned on disaster assistance payments from assets.

Excluded funds commingled in an account with other funds are excluded for six months from the date they were combined. Excluded funds kept in a separate account are excluded from assets for an unlimited amount of time.

Disaster assistance funds are not restricted to restoration of a home but are subject to legal sanction if misused.

Sources of verification of disaster assistance include official government notices, disaster loan or grant documents, and the individual’s financial records of deposits, withdrawals and expenditures. 1610.0529 Energy Assistance Payments (FS) Payments or allowances made for energy assistance are excluded if federal, state, or local laws authorize them.

These payments or allowances must be clearly identified as energy assistance by the legislative body authorizing the program or providing the funds. Examples of federal payments that would be excluded are energy assistance payments provided by programs such as the Department of Health and Human Services' Low-Income Energy Assistance Program, and the Community Services Administration's Energy Crisis Assistance and Crisis Intervention Programs.