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Nevada Division of Welfare and Supportive Services Energy Assistance Program Manual D. Irregular Income

Irregular income is income received on an intermittent basis. It is typically a voluntary cash contribution, loan or gift received from a relative or friend. Irregular income can also be commission-based employment, intermittent and sporadic employment such as mowing lawns, babysitting, and the like. This type of income is used to meet daily living expenses. The policy for budgeting irregular income follows: I. Income received, that is expected to continue is annualized. Add the total income together and divide by the number of months the income was received. This figure is then multiplied by twelve and counted in determining eligibility and benefit amount. Example: If the household receives $150 each month for eight (8) months, the total amount received is $1,200.00. To determine the annual income, divide the $1,200 by 8 and then multiply by the result by 12 for a total of $1,800.00. II. If the income is not anticipated to continue, only count what was received in the last 60 days, from date of application or date of application review/case processing. E. Reverse Mortgage

Reverse mortgage is a loan for people of qualifying age. When the loan is approved, the lending institution will pay off any existing mortgages first. If an applicant has a 1st and 2nd mortgage both have to be paid off first. The result will be that the only lien on the home will be the Reverse Mortgage. Therefore, the client will not have any mortgage payments due, for the rest of their life or until they move out of that home.

I. If there is any money left over and above the mortgage amounts: 1. It can be taken as a one-time lump sum at closing; or 2. It can become a Line of Credit. If this is done, the applicant has the following options: a. Pull down money whenever the client deems necessary; or b. Receive money in monthly payments until death or for a set amount of time. If the applicant chooses a monthly payment, it may have tenure listed on the statement form, which means until death. Otherwise, if you cannot determine the length of the payments based on the paperwork provided, request the original signed loan document, showing the monthly payment schedule to determine how long the applicant will be receiving monthly payments. II. How to calculate a Reverse mortgage: 1. If the Line of Credit is available for the client to draw down, calculate the current available Line of Credit and budget annually; or 2. If the applicant is receiving scheduled payments, calculate the monthly amount of money received by the applicant. F. Educational Assistance I. Educational assistance is any financial aid for vocational or educational courses from 1. an organization (such as fraternal, alumni, etc.); or 2. government program or agency (such as U.S. Office of Education, Veteran's Administration). MTL 01/24 June 25, 2024 - 9 - Section 700 – Income