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COMBINED MANUAL

ISSUE DATE 04/2022

SHELTER DEDUCTIONS

0018.15

MFIP, MSA, GA, GRH: No provisions.

DWP: Use family maintenance needs, see 0002.23 (Glossary: Fair Hearing...), along with personal needs allowances, see 0002.49 (Glossary: Permanent...) and countable income to determine the DWP grant. For more information on how to calculate a benefit level for MFIP/DWP/GA, see 0022.12 (How to Calc. Benefit Level - MFIP/DWP/GA).

SNAP: Shelter Deductions consist of housing and utility costs. Allow verified housing costs in the month billed, or if not billed, when they first become payable. For self-employed persons claiming housing costs as a business expense, also allow the expense as a shelter deduction following the provisions below. For utility costs, see 0018.15.09 (Utility Deductions). For verification of shelter deductions, see 0010.18.02.03 (Non-Mandatory Verifications – SNAP).

Allowable Housing Costs

Deduct housing costs only if the unit must pay someone outside the unit for the expense.

The most common examples of allowable housing costs are listed below. However, this is not an all-inclusive list: ● Rent, including mobile home lot rent. When units pay their housing costs on a monthly basis, but pay this in advance for multiple months at a time, they are allowed a shelter deduction for the period the advanced payments are intended to cover.

● Rent on a garage if the garage rental is a condition of renting the apartment.

● Homeowner's insurance for the structure of the home. Only what is paid for the structure of the home can be allowed as a deduction. If the client has a rider policy billed separately to insure items other than the structure of the home, the amount paid for this policy cannot be allowed as a deduction. See 0010.18.02.03 (Non-Mandatory Verifications – SNAP) for how to verify homeowner's insurance. Document the amount of this deduction in MAXIS CASE/NOTEs.

● Mortgage insurance that is required by the lender and the cost is verified.

● Mortgage, 2nd mortgage, or contract-for-deed payments. See MORTGAGE in 0002.43 (Glossary: Money...).

● Property taxes and state and local assessments.

● Condominium fees and association fees that are required to own a home.

● Vehicle payment and insurance if the unit lives in the vehicle.

● Room portion of charges for group residential housing or a domestic violence shelter.

● Costs not reimbursed for repair of a home damaged or destroyed by a natural disaster.

Do NOT allow a deduction for: ● Deposits on rental properties or utilities.

● Life or auto insurance or other extra coverage on personal property added on the homeowner’s property insurance policy.

● Separate insurance for personal belongings.

● Foundation, skirting, or tie-downs for mobile homes.

● Garage rent if the garage rental is not a condition of renting the apartment.