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Chapter: 2400 Budgeting Income Program: TCA 24 2420.0339 Vendor/Subsidized Payments (TCA) For those cases subsidized by Public Housing Authority, the payment standard will be based on the amount the individual is actually obligated to pay. If the person's rent obligation is zero, then cash benefits are based on Tier III. However, if the shelter is being vendor paid by a friend, parent, or some other person, directly to the landlord, the cash benefit is based on the amount of the person's shelter obligation. Vendor payments differ from rent subsidies. 2420.0340 Three Tier Payment Standard (TCA) Tier I: Tier I standards are recognized for assistance groups who have a shelter obligation greater than $50, such as a mortgage payment, rent, room and board payment, purchase contract, etc. An individual is also considered to have a shelter obligation when there is a documented lien against their homestead that has been used as collateral on a loan. This includes the homeless, individuals living in shelters and battered women living in shelters, even if they are not obligated to pay rent or other shelter expenses. Teen parents living in alternate living arrangements are entitled to the Tier I shelter obligation.

Tier II: Tier II standards are recognized for assistance groups who have a shelter obligation of $.01 to $50, such as a mortgage payment, rent, room and board payment, purchase contract, etc. An individual is considered to have a shelter obligation when there is a documented lien against their homestead that has been used as collateral on a loan.

Tier III: Tier III standards are recognized for assistance groups who are responsible for shelter related costs such as water, sewage, taxes, insurance and upkeep, and do not have a purchased shelter obligation. Tier III standards are also recognized for those who have no shelter or shelter related costs. Tier III standards are also recognized for teen parents living in the home of a parent, legal guardian, or other adult relative.

Note: This applies to Temporary Cash Assistance only. Medicaid policy would still allow a shelter obligation to teen parents living in the home of a parent, legal guardian, or other adult relative. 2420.0341 Verification of Shelter Obligation (TCA) The applicant’s statement of the shelter obligation is acceptable at application unless questionable. The recipient’s statement of a shelter obligation is acceptable at scheduled complete eligibility reviews, whenever a recipient moves, or an increase in shelter obligation is reported that would result in a higher Tier standard being applied, or if the shelter obligation is not questionable. If the shelter obligation is questionable and proof of a shelter obligation is not provided, Tier III is to be budgeted at application and complete review. If proof is later provided, the correct shelter standard will be applied to the TCA budget beginning with the first TCA payment month following the receipt of proof of the shelter obligation.

Recipients who have a shelter obligation are considered to have this obligation even if they are in the process of being evicted.

Tier I and Tier II are budgeted for applicants who have a shelter obligation even if they had no shelter obligation prior to their application for Temporary Cash Assistance.

In stepparent situations, both spouses are responsible for the obligation, whether or not both names are on the lease or mortgage. The monthly amount of the shelter obligation is used in determining which payment Tier applies. The obligation should be divided equally between the spouses in double stepparent cases. When the parent or stepparent payee’s needs are not included in the benefits and he claims that the children are required to share in his or her shelter cost, the shelter obligation of the parent, stepparent, or parent and stepparent (when both are residing together in the home) is included in the budget.