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Shelter expenses paid directly by boarders to someone outside of the AG are not counted as income to the AG.

NOTE: This does not include the income of payments made to persons in foster care who are considered boarders for SNAP purposes when they are not included in the AG. 3415.05.00 BOARDER COST OF BUSINESS (S)

After determining the income received from the boarders, the portion of the boarder payment which is a cost of doing business is excluded as income. Provided that the amount allowed as the cost of doing business does not exceed the payment the AG received from the boarder for lodging and meals, the cost of doing business is equal to one of the following: • The maximum SNAP allotment for an AG size that is equal to the number of boarders; or • The actual documented cost of providing room and meals if the actual cost exceeds the maximum SNAP allotment. o If actual costs are used, only separate and identifiable costs of providing room and board to the boarder are excluded. 3415.05.05 NET BOARDER INCOME (S)

The net income from self-employment is added to other earned income and the 20% earned income deduction applied to the total. Shelter costs the AG incurs, even if the boarder contributes to the AG for part of the AG's shelter expenses, is computed to determine if the AG will receive a shelter deduction. However, the shelter costs must not include any shelter expenses directly paid by the boarder to a third party, such as the landlord or utility company. 3415.10.00 BUDGETING ROOMER AND BOARDER INCOME (S)

In a roomer and boarder situation, net rental income is determined by deducting allowable expenses (see Section 3420.05.05) proportionately to the number of rooms (excluding bathrooms) in a private house or by the number of people living in the house.

EXAMPLE ROOMER SITUATION:

The applicant owns a seven-room house (excluding bathrooms) and rents one bedroom. The roomer pays $100 a month. All allowable expenses equal $400 a month. One-seventh of those expenses ($57.14) is deducted from gross rental income. $42.86 is budgeted as net rental income.

EXAMPLE BOARDER SITUATION:

The applicant and his wife have a five-room house (excluding bathrooms) and rents one room with meals provided. The boarder pays $200 a month. Allowable income producing costs equal