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Title 7: SNAP Page 49 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Deductions Revised September 27, 2024 Shelter Expenses Taxes and Insurance Legal reference: 7 CFR 273.9(d)(6) Deduct property taxes and state and local assessments. Allow the cost of insurance on the structure itself, if the insurance policy separates the costs of the structure from its contents. This includes things such as fire and flood insurance. If the insurance policy does not separate these costs, allow the entire amount. Do not allow renters insurance or liability insurance as a deduction, as these do not insure the structure. When insurance, property taxes, and any other allowable expenses are separately itemized as part of closing costs, allow the expenses as a shelter cost. Allow service charges such as a fee added to bills for monthly billing of an expense like insurance as a deduction. Do not allow late fees as a deduction. Rent, Mortgage, and Continuing Charges Legal reference: 7 CFR 273.9(d)(6) Deduct the costs of rent or mortgage and other continuing charges that lead to the ownership of the dwelling occupied by the household. This includes:  Both first and second mortgages.  Payments to buy a mobile home in which the household lives.  The interest on these payments.  Fees included in rent for expenses like furniture, garage, and storage. Do not allow:  A “mechanic’s lien” or similar lien as a shelter deduction.  Costs due to discounts for early payment or late fees as a shelter cost.  Down payments on the purchase of a home as a shelter deduction.  Any Housing and Urban Development (HUD) or similar program charges added to the rent to recoup for prior overpayments as a shelter deduction.  Identifiable fees charged in addition to rent for things such as a garage or pets, unless mandatory to live there. To decide if an additional fee is an allowable deduction, determine whether the tenant is able to rent the dwelling without paying the extra fee. If the person cannot live there without paying the charge/fee, it is allowable.