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263 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility payment, they will have an allowable shelter expense. The contribution may be either “Contributions - from private, non-profit charitable organizations” or “Contributions - Money from Others”.

Š When an individual is approved for General Assistance and is receiving the Housing Benefit, the cost of the shelter is allowed as an expense even though it is paid by the department as a third-party payment. This is because the third-party payment is counted as unearned income. See OPEN: Chapter 2: Section 5: Financial Eligibility: Availability of Assets, in the SNAP section under Income. • If an individual has a reverse mortgage (also sometimes known as a home equity conversion mortgage) on their primary residence, the following shelter expenses are allowed in addition to any property tax and homeowner’s insurance:

Š Periodic monthly accrued interest charge

Š Recurring finance charges

Š Mortgage insurance premiums/payments (MIP)

Š Recurring fees

Š Required scheduled payments

Š Continuing charges for other mortgages on the primary residence. • Payments or proceeds from a reverse mortgage are not allowed as a shelter deduction. These payments are considered loan income. Shelter Deductions If the filing group has allowable shelter (housing) costs and/or an allowable utility allowance that information is used to determine if they receive a shelter deduction. The allowable expenses are not a deduction from the income . The shelter deduction is deducted from the income. There are two shelter deductions – the Excess Shelter Deduction (ESD) and the Homeless Shelter Deduction (HSD). Each filing group is eligible for only one shelter deduction if they have allowable costs. They are to receive the higher amount between the ESD and the HSD. Excess Shelter Deduction The ESD is determined by first totaling the gross income, less the earned income deduction, the standard deduction, dependent care deduction, medical expense deduction, and court ordered child support deduction. This gives the adjusted income amount. Next, determine the total shelter costs by adding the allowable shelter costs and the appropriate utility allowance the household is eligible for. Subtract half of the adjusted income from the total shelter. The remaining amount is the excess shelter cost. • If less than the maximum ESD limit (See OAR 461-160-0430(f)(B)(iii)), the lesser amount calculated is the ESD. • If more than the maximum ESD limit, then the maximum ESD is allowed unless there is an elderly or person with disabilities filing group member. • If there is an elderly or person with disabilities filing group member the actual amount calculated is