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Allowable costs include rent, mortgage payments and other continuing charges leading to ownership of the property, such as mandatory maintenance and homeowner association fees.

Consider the following when determining if the shelter cost is allowable:

For mortgage payments, an amount that goes into an escrow account is part of the total allowable cost of the mortgage payment. Do not allow another separate deduction for shelter costs paid from an escrow account. Example: If property taxes are paid from the escrow account, do not allow property taxes as a separate deduction.

Costs to repay a loan are allowable shelter costs only if the lender places a lien on the property because of the loan. The loan may be for home repair or improvement, or for purposes unrelated to the home, but the payments due are considered a mortgage if the loan results in a lien on the property.

Maintenance fees must be mandatory as a condition for the continuation of residence for renters and homeowners. The fees must be a required fee payment, not a requirement to maintain the property.

Taxes and insurance on the shelter, but not its contents, are allowed. The cost of insurance for the shelter and the contents are allowed if they cannot be separated.

The cost of mandatory renter’s insurance is allowable, regardless of what the insurance covers, provided the renter’s insurance is a requirement of the tenant’s lease.

Charges for fuel, utilities, sewage and garbage collection are used to determine if the household may be eligible for one of the utility allowances.

Costs related to phone service, including a mobile phone, are used to determine if the household may be eligible for the phone standard deduction.

Unreimbursed costs for the repair of a home damaged by a natural disaster are allowed.

Note: Shelter costs do not include one-time deposits.