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COMBINED MANUAL

ISSUE DATE 10/2020

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. 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 (Mandatory Verifications – SNAP).

Some examples of allowable housing costs are:

● Rent, including mobile home lot rent.

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

● 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.

● 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.

● Homeowner's insurance for the structure of the home when it can be separately identified. Discuss with the unit how the homeowner’s insurance is paid and if the policy includes any extra coverage on personal property. If the structure portion of the bill cannot be separated from other insurance amounts such as liability and medical, allow the entire amount. Verification must be provided to confirm that the expense for the home structure cannot be separated from other insurance amounts. Document the amount of this deduction in MAXIS CASE/NOTEs.

NOTE: When expenses are paid through escrow, clarify which expenses are included and the cost of each item, such as property taxes or homeowner's insurance. Additional verifications may be needed.

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.