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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 340.07 NON-ALLOWABLE HOUSING EXPENSES A. Any expenses related to housing not actually occupied by the FNS unit, except as specified in 340.06 J. B. Down payments, closing expenses, discount points, and other expenses incidental to closing a mortgage when purchasing a home, except as specified in 340.06 H. C. An expense which is reimbursed or covered by a vendor payment. A vendor payment is a payment made in money on behalf of a household/individual by an outside party. See FNS 315.33 for information on vendor payments. D. Site preparation to locate a mobile home. E. Late charges or fees on mortgage or rent payments. F. Past due rent or mortgage amounts. G. Other expenses not directly related to shelter, such as lawn care, except as provided in 340.06 G. above. H. Deposits on rental property. I. The amount of rent being recouped by HUD for a prior underpayment made by the recipient. NOTE: If a FNS unit has been granted a suspension of rent or mortgage payments (a moratorium), do not allow the rent or mortgage expense until it is incurred again. 340.08 VERIFICATION OF HOUSING EXPENSES A. Requirements 1. Verify the expenses at initial application, at recertification if there has been a change, and when a change in residence is reported (see FNS 515.12, Change of Residence During the Certification Period). 2. Request verifications using the DSS-8650 and allow the FNS unit at least ten calendar days to provide verification. 3. If verification is not provided within ten calendar days, process the application, and allow no deduction. 4. If verification is provided within the certification period (CP), adjust benefits for the month after verification is provided if time allows. 5. If needed, offer assistance to the FNS unit in obtaining verification.