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1. Family Allowance (FA) – A family allowance is determined when there is a non-LTSS community spouse residing with family members who are the dependents of the spouse or the LTSS beneficiary. The LTSS living arrangement of the beneficiary is not a factor in determining whether this allowance applies. The family allowance is the sum total of the allowances determined separately for each family member as follows: a. Determination of gross income. The earned and unearned income for each family member is calculated without any disregards or exclusions. b. Family allowance standard. The minimum monthly maintenance of needs allowance standard is multiplied by one third (1/3). The result of this computation is the family allowance standard that applies when determining the allowance for each family member. c. Individual family member’s allowance. The gross income of each family member is subtracted from the family allowance standard. The amount remaining from this calculation is the family allowance for that family member. d. Total Family Allowance. The individual allowances for each family member are added together to determine the total family allowance. The family allowance counts toward the maximum MMN allowance. 2. Family maintenance of need allowance – When the Medicaid LTSS beneficiary does not have a spouse, a family maintenance of need allowance is established that provides for a broader range of expenses than are considered when there is a monthly spousal allowance. This family maintenance of needs allowance is calculated in accordance with the following: a. Determination of gross income. The earned and unearned income for each family member is calculated without any disregards or exclusions. b. Family maintenance of need (FMN) standard. The gross income of each family member is added together and deducted from the FMN standard, which is the medically needy income limit based on family size. (1) If the Medicaid LTSS beneficiary resides with family members in a HCBS living arrangement, he or she is included in the family when determining family size; (2) If the Medicaid LTSS beneficiary is in a health care institution or does not reside with family members, family