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Chapter: 1800 Income Program: MSSI, SFP 22 Any of these types of assistance retained beyond the month of receipt must be kept separate from countable assets to be excluded. 1840.0805 Programs Administered by HUD/USDA Rural Housing (MSSI, SFP) Individuals generally can exclude the value of any assistance from the U.S. Department of Housing and Urban Development (HUD) and the USDA Rural Housing (formerly Farmers Home Administration (FmHA)) used to offset their rent or mortgage payments. These payments may be made to landlords or mortgagees. 1840.0806 HUD/USDA Rural Housing Utility Payments (MSSI, SFP) When an assistance group lives in subsidized housing, all or a portion of its rent may be paid by HUD or the USDA Rural Housing (formerly Farmers Home Administration (FmHA)). In this situation, a rent deduction may be claimed for the amount the assistance group actually pays. The assistance group may also qualify for a HUD or USDA Rural Housing utility payment.

HUD and USDA Rural Housing utility payments are excluded as income due to these payments being made for the purpose of providing energy assistance. Additionally, when a HUD/USDA Rural Housing utility allowance is used to reduce the amount of rent, this type of "utility allowance" is not to be considered income. 1840.0808 Public Housing (MSSI, SFP) The housing assistance provided by HUD that is excluded includes items such as:

1. rent subsidies; 2. loans for housing renovations; 3. mortgage insurance; 4. loans to elderly individuals, farmers, and developers for the construction, improvement, or replacement of farm homes and other buildings; 5. guaranteed loans and mortgages; and 6. payments to mortgage holders on behalf of tenants.

Note: For the OSS Program only, any funds received by the individual are included as income. 1840.0811 Disaster Assistance (MSSI, SFP) 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 income. 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 income.

Most Federal Emergency Management Assistance (FEMA) funds are excluded. However, some payments made to homeless people to pay for rent, mortgage, food, and utilities when there is no major disaster or emergency are not excluded under this provision.

Apply this exclusion when:

1. the president determines an emergency or major disaster exists; and 2. the individual was directly affected by the disaster; and 3. the payment is received from a disaster assistance organization or a federal, state or local government.