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explain to a/b that it is his responsibility to assure that required PML amount is paid to the facility.
X. Roomer/Boarder Income
Roomer/Boarder income is a form of rental income in which an individual pays an amount (usually weekly or monthly) to the head of household in return for room and/or board in the household. When an a/b receives income from an individual for whom he has no financial responsibility, always evaluate the living arrangement to determine whether it is a roomer/boarder situation as opposed to a shared household.
Refer to MA-2261, One Third Reduction, to determine criteria for a shared household and whether 1/3 reduction is applicable.
1. Verify the amount paid by the roomer/boarder(s). If variable, obtain a monthly average for the base period.
2. Refer to Rental Income above to determine base period and allowable and non-allowable operational expenses.
3. Verify monthly operational expenses.
a. If rent does not include food, food costs are an unallowable operational expense. If the rent includes food, verify food costs by receipts or statement of a/b.
b. Determine the number of rooms in the house. Exclude bathrooms and any rooms such as attics, basement, or garages unless they have been converted into living quarters.
c. Divide total operational expenses by the total number of rooms.
4. Determine countable income.
a. Multiply the average operational expense per room obtained in 3.c. above by the number of rooms rented.
b. The resulting amount is deducted from the rent to determine net countable income.
Example – Roomer/Boarder rents one room in a 5-room house for $100.00 per month. Total operational expenses are $200.00 per month. $200.00/5 = $40.00. $100.00 - 40.00 = $60.00 per month countable income.