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Agriculture Improvement Act of 2018 Homeless Shelter Deduction Questions & Answers 1. The Information Memo indicates that the new value of the homeless shelter deduction is for FY19. It also says that States should implement the deduction as soon as possible. Are States expected to backdate this deduction to the beginning of the Fiscal Year even though the Farm Bill wasn't passed until December? This provision ofthe Agriculture Improvement Act (the Act) is considered self-executing, so States should implement immediately. However, the legislation it is not retroactive and does not apply to cases with certification periods beginning before the date the Act was enacted (December 20, 2018). While the provision was effective as.ofDecember 20, 2018, FNS understands the practical implications ofmaking such changes to systems and policies at the State level. FNS expects States to work diligently to implement this provision as quickly as possible and will continue to monitor progress in individual States via our normal Regional Office monitoring and Management Evaluation process. Any State that anticipates significant challenges to expedient implementation should notify their Regional Office immediately so that FNS can provide technical assistance and guidance. 2. How is the homeless shelter deduction budgeted? Is it part of the excess shelter deduction? The homeless shelter deduction is an alternative to the excess shelter deduction for homeless households that do not receive free shelter throughout the month (i.e., homeless households with some shelter expenses). While it was previously an option for States to provide this alternative to these homeless households, the Act made it mandatory for State agencies to offer the homeless shelter deduction. If a homeless household with qualifying shelter expenses chooses the homeless shelter deduction (in lieu ofthe excess shelter expense deduction), the deduction must be subtracted from net income in determining eligibility and allotments for the household, in accordance with 7 CFR 273.9(d)(6)(i). 3. What is the verification policy for this deduction? This provision does not require any changes to existing verification policy on shelter deductions. States may verify shelter costs at their option. Consistent with the provisions of 7 CFR 273.9(d)(6)(i), a household receiving a homeless shelter deduction cannot have its shelter expenses considered as part of the excess shelter deduction or the standard utility allowances. However, a homeless household may choose to claim actual costs under the excess shelter deduction instead ofclaiming the homeless shelter deduction if actual costs are higher and verified. Page 1 through their guidance portal, except to establish historical facts. incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available Guidance documents lack the force and effect of law, unless expressly authorized by statute or