003.01(G)(ii) COMPUTING THE SHELTER DEDUCTION.

In computing the shelter deduction, the following is considered as a deductible expense if declared by the household: (1) Continuing charges for the shelter occupied by the household, including rent payments, condominium fees, associations fees, mortgage payments, and other continuing charges leading to the ownership of the shelter: (a) Payments on second mortgages and home equity loans are allowable shelter costs regardless of how the money was used. If a second mortgage is obtained for medical expenses, repayment is treated as a shelter expense and not as a medical expense; (b) If a household moves in the middle of the month and is billed for shelter expenses for two residences, the costs of both residences are allowable for one month; or (c) If Department of Housing and Urban Development is involved in partial payment of rent costs, only the amount the household actually owes to the landlord may be allowed as a shelter expense; (2) Real estate taxes may be allowed as a shelter cost in the month billed or taxes may be prorated forward over the period between billings. The household chooses the option; (3) Homeowner’s insurance premiums covering the structure are allowable shelter costs: (a) If this expense is billed less often than monthly, the household may elect to have the expense used when billed or prorated forward over the period between billings. The household chooses the option; (b) If the household has a homeowner’s insurance policy that lists the structure and contents separately on the premium notice, only the amount on the structure and any associated administrative costs may be allowed; or (c) If the household has a homeowner’s insurance policy that includes insurance both on the structure, contents, and additional costs, but the costs cannot be separately identified, the entire premium may be allowed; (4) Only assessments related to the home and lot are allowable. Allowable assessments include special payments for civic improvements such as curb, storm sewer, sidewalks, streetlights, sewage treatment, etc.; and (5) Non-reimbursable charges for the repair of a home which has been substantially damaged or destroyed due to a natural disaster, such as a flood or fire.