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COMBINED MANUAL

ISSUE DATE 04/2022

SHELTER DEDUCTIONS

0018.15

If the SNAP unit is sharing housing costs with others living in their home, use the guidance below to determine what shelter cost the SNAP unit is eligible for as a deduction. ● If the SNAP unit has a lease agreement, mortgage statement or other official living agreement and has other people living with them, not in their SNAP unit, they are allowed the full lease amount, mortgage statement or living agreement as a shelter deduction. If the other people living there have an agreement to pay the SNAP unit housing costs, that money is counted as unearned income to the SNAP unit. In addition, if the other party paying the SNAP unit applies for SNAP themselves, what they are paying the other SNAP unit for housing costs can be allowed as a deduction. See 0017.15.33.27 (Self-Employment Income From Roomer/Boarder).

● If the SNAP unit has a lease agreement, mortgage statement or other living agreement that lists the person/people not in the SNAP unit, then only allow the amount the SNAP unit is paying as part of their agreement as a shelter deduction.

Housing Costs Paid by People Not Living in the Home

If a 3rd party that is not living with the client is providing funds directly to the client for their housing costs, allow the deduction. These payments are counted as unearned income. If the 3rd party is paying the housing costs to the landlord/owner, this is not counted as income and the unit is not allowed the housing costs as a deduction unless the shelter expenses are paid by initial refugee funds or match grant. Shelter expenses paid by initial refugee funds must be allowed as a deduction for SNAP. See 0029.39 (The Matching Grant Program), 0030.01(Local Resettlement Agencies).

If a unit resides in a GRH setting, or receives subsidized housing, only allow what the client is actually paying for their shelter costs as a deduction.

Maximum Shelter Costs

Once a unit verifies their shelter costs, they are allowed their adjusted shelter costs as a deduction, up to a maximum amount. Adjusted shelter costs are the unit's allowable housing costs plus their standard utility allowance minus 50% of the unit's net income. If the unit's adjusted shelter costs exceed the maximum amount, then they are allowed the maximum amount as a deduction. Currently, the maximum amount is $597. MAXIS calculates the shelter deduction in the SNAP budget based on information entered on the appropriate panels. SNAP units with an elderly or disabled member are allowed their adjusted shelter costs as a deduction even when it is less than or exceeds the maximum amount. For this purpose, elderly is defined as someone 60-years-old or older and disabled is defined as: ● Receiving SSI benefits.

● Receiving RSDI disability benefits.

● Certified 100% disabled by the VA or paid at the 100% disabled amount.

● Receiving Railroad Retirement benefits.

● Receiving other government issued disability retirement benefits.

● Having a certified disability by SMRT.

See 0012.15 (Incapacity and Disability Determinations).

For allowable shelter deductions for Uncle Harry cases, see 0022.24 (Uncle Harry Food Support Benefits).

Changes in Housing Costs

If the unit moves residences during their certification period, request verification of their housing costs at their new residence and allow the unit 10 days to return verification. If the unit does not return verification, remove any previous housing costs allowed as a deduction from the budget, allowing for proper 10-day notice. If the unit later provides verification, allow the housing cost as a deduction the month following the month the unit provided verification.