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Aged, Blind and Disabled Manual Section: Financial Eligibility Requirements; Policy Manual Number: 110.032 Chapter: ABD In-Kind Support and Maintenance

Legal Authority: 20 CFR 416.1120; 20 CFR 416.1121; 20 CFR 416.1130 – 1147; Tenn. Comp. R. & Regs. 1200-13-20-.06(3)(b) 1. Policy Statement

In-kind Support and Maintenance (ISM) is food or shelter that a person is given or receives because someone else pays for it. ISM can be received from a source outside of the household or from other household members. ISM is countable unearned income for the SSI-related categories: Pickle Passalong, Disabled Adult Child (DAC), and Widow/Widower.

2. Definitions a. Current Market Value (CMV): The amount for which an item would sell on the local open market.

b. Household: A personal place of residence in which individuals share common living quarters and function as a single economic unit.

c. Household Operating Expenses: The average monthly amount in cash a household spends for shelter.

d. Pro Rata Share: An individual’s share of the household operating expenses determined by dividing the household operating expenses by the number of persons residing in the household, regardless of age.

e. Shelter: Living quarters for an individual. Shelter items are mortgage payments, property insurance (if required by a mortgage holder), rent, gas, electricity, heating fuel, water, sewer, garbage collection service, and real property taxes.

f. Third-party Vendor Payment: A payment made directly to a vendor by a third party for goods or services provided to an individual or couple.

3. Determining the Value of ISM There are two rules used to determine the value of ISM: The Value of the One-Third Reduction (VTR) rule and the Presumed Maximum Value (PMV) rule.