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Chapter: 2400 Budgeting Income Program: RAP 51 2460.0328 Incapacitated Adult Care Disregard (RAP) The cost of care for an incapacitated adult can be deducted only when:

1. the incapacitated individual lives in the home with the employed individual and the dependent child; 2. the incapacitated adult is included in the assistance group; and 3. the individual requires care due to a physical, mental, or emotional condition that precludes the individual from remaining alone in the home during the hours of employment.

The incapacitated individual's need for care must be verified, if questionable, by a statement from a physician, nurse or other health care professional. The amount billed must be documented or verified, only if questionable. 2460.0338 Shelter Obligation (RAP) The payment standard for an assistance group’s benefits is established by the legislature to meet the basic maintenance needs of families. Basic maintenance needs are those items required for survival, including food, clothing, personal incidentals, household incidentals and shelter expressed in one combined dollar amount. This amount is based on the size of the assistance group and the amount of the shelter obligation, if any. 2460.0339 Vendor/Subsidized Payments (RAP) 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. 2460.0340 Three Tier Payment Standard (RAP) 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.

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.