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MS 5470 [2]
However, in most situations, some type of separate agreement is arranged by the bank to allow monthly payments to be made.
4. Actual property taxes, not the discounted or penalty amount, including State and local assessments.
5. Insurance on the shelter structure itself, including flood and earthquake insurance. Allow state and local taxes, assessments, and the 1.8 percent state-mandated surcharge, which are added to the cost of the insurance premium as deductions. Do not allow service fees mandated by insurance companies to cover processing costs as deductions.
6. For households who pay their mortgages yearly when a crop is sold, process these cases like an open-ended mortgage.
7. Promissory note payments are not an allowable deduction unless they lead to ownership and there is a verifiable lien.
8. Subsidy recapture payments are not an allowable shelter deduction unless the household has a continuing repayment agreement with the United States Department of Agriculture (USDA)/rural Development. They must provide verification of the established payment schedule before allowing the deduction.
B. Utility expenses including fees charged by the utility provider for initial installation.
C. Charges for the repair of a home substantially damaged or destroyed due to a natural disaster, such as fire or flood, which have not or will not be reimbursed.
D. Shelter costs for an unoccupied home if the home is temporarily unoccupied because of employment or training away from home, illness, or abandonment caused by a natural disaster or casualty loss. To receive a deduction, the following criteria must be met:
1. The household must intend to return to the home;
2. The current occupants of the home, if any, must not be claiming the shelter costs for SNAP benefits purposes;
3. The home must not be leased or rented during the absence of the household; and
4. If a household has both an occupied and an unoccupied home, only one Standard Utility Allowance (SUA) can be used.
E. Any household that operates a self-employment enterprise at their home must be given the option of having their expenses treated as a business expense or a shelter deduction. If treated as a business, refer to MS 5320. During the interview, advise the household of the following: