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Title 7: SNAP Page 50 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Deductions Revised September 27, 2024 Shelter Expenses
1. Britta, who has a pet dog, rents a house. Base rent is $850 and the landlord allows pets, but you must pay an additional $50 if you have one. This is clearly spelled out in the lease. Even though Britta pays $900 to her landlord each month, she is only entitled to a deduction for $850. She is not allowed a deduction for the $50 she is charged for choosing to have a dog. 2. Abed reports rent of $785. The lease specifies that rent is $700 plus $50 for a garage, which is optional. He also pays an additional $35 mandatory service fee charged to all tenants to cover incidental costs, such as light bulbs in the hallways or damage to the common areas. Even though the $35 is a separate fee that is specified in the lease, Abed cannot rent the apartment without agreeing to pay this fee. This is allowable. However, because the garage is optional and he could rent the apartment without it, the $50 he spends on that is not allowable. Abed is allowed a shelter deduction of $735. 3. Troy has a lease verifying monthly rent is $450, but “discounted” to $425 if paid by the 5th of the month. While it appears to be a perk for paying early, this is just another way of saying rent is $425 and a $25 late fee will be assessed if not paid by the 5th. Allow Troy a shelter deduction of $425. 4. Annie rents an apartment for $660 per month. When you receive the lease, you see that the rent is broken down as $600 for rent and $60 for her garage. However, the lease shows that every unit comes with a garage and tenants do not have the choice to decline it. Even though the landlord breaks down the charges, she has no choice and must pay the full $660 in order to live there. Allow $660 as a deduction. In addition, she pays $360 annually to her insurance carrier for renters insurance. She is not allowed a deduction for that charge, as it does not lead to her ability to rent this dwelling. Condominium or Association Fees Legal reference: 7 CFR 273.9(d)(6) Deduct the cost of condominium or association fees. Repair Costs Legal reference: 7 CFR 273.9(d)(6) Do not allow repair or replacement costs, unless they resulted from a natural disaster such as fire or flood.