Households with boarders.
(1) Households with boarders. Persons paying a reasonable amount for room and board shall be excluded from the household when determining the household's eligibility and food stamp benefit level. Unless the household with whom the boarder lives requests that the boarder be part of their household as specified in section 387.14 of this Part, the household's eligibility is determined as follows:
(i)Income from the boarder.#
(i) Income from the boarder. The income from boarders shall include all direct payments to the household for room and meals, including contributions to the household's shelter expenses. Shelter expenses paid directly by boarders to someone outside of the household, such as to the landlord or the utility company, shall not be counted as income to the household.
(ii)Cost of doing business.#
(ii) Cost of doing business. After calculating the income received from boarders, the local department must exclude that portion of the boarder payment which is a business cost. Furthermore, such costs cannot exceed the payments received from the boarder. The cost of doing business must equal one of the following:
(a) the cost according to thrifty food plan for a household size that is equal to the number of boarders; or
(b) the actual documented cost of providing room and meals, if the actual cost exceeds the appropriate thrifty food plan. If actual costs are used, only separate and identifiable costs of providing room and meals to boarders shall be excluded.
(ii)(a)the cost according to thrifty food plan for a household size that is equal to the number of boarders; or#
(a) the cost according to thrifty food plan for a household size that is equal to the number of boarders; or
(ii)(b)the actual documented cost of providing room and meals, if the actual cost exceeds the appropriate thrifty food plan.#
(b) the actual documented cost of providing room and meals, if the actual cost exceeds the appropriate thrifty food plan. If actual costs are used, only separate and identifiable costs of providing room and meals to boarders shall be excluded.