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Chapter: 1800 Income Program: MSSI, SFP 13 1840.0113 Allocation of Income (MSSI, SFP) Allocation of income is a process allowing a portion of the individual's income to be set aside to meet the needs of the spouse and/or the dependents living in the community. Allocated income includes earned and unearned income. 1840.0117 Deeming of Income (MSSI) Deemed income refers to a special budgeting calculation in which a portion of an individual's income is considered available to another SFU member. Individuals whose income may be deemed differ by program. Deemed income is considered as unearned income in the budget.

For policy regarding deeming situations refer to SFU and deeming budgeting methods in Chapter 2600. 1840.0118 Vendor Payments (MSSI, SFP) A vendor payment is a money payment made for SFU expenses by an individual or organization outside the SFU from funds not legally owed to the SFU. Vendor payments are excluded as income. Any expense which is entirely paid by a vendor payment (see examples in 1840.0119.01) cannot be allowed as an expense under the income disregard policy (Chapter 2400).

Note: There is one exception to the above rule: For OSS, if the vendor payment to the facility is more than twice the recognized cost of care, the payment is included as income to the SFU/individual.

Direct payments to a creditor or vendor on behalf of an individual are vendor payments and are excluded as available income to the individual with one exception. When a vendor payment results in the individual directly receiving income, the income is included.

Payments by credit life or credit disability insurance policies are excluded. They are paid by insurance companies directly to loan companies and mortgage companies and are not available to the individual. 1840.0119.01 Examples of Vendor Payments (MSSI, SFP) Examples of vendor payments include, but are not limited to, the following:

1. rent payments made directly to the landlord by a third party; 2. rent or mortgage payments made to landlords or mortgagees by DCF, Housing and Urban Development (HUD), or by state or local housing authorities; 3. payments made directly to the utility or phone company by a third party; 4. payments by a government agency to a child care institution to provide childcare for an assistance group individual; 5. disability insurance coverage makes payments on a car due to an accident or illness of an assistance group member. The payment is not voluntary but rather is a specified part of the insurance policy. 6. legal agreement or court ordered payments that go directly to a third party rather than the assistance group; and 7. expense payments by an employer, agency, former spouse, or other person made to a third party from funds not legally owed to the assistance group.

Direct payments to the SFU by non-SFU members made directly to a member of the SFU are not vendor payments regardless of the purpose or intent of the payment.