7 CFR § 273.9(d)(6)(ii)-(iii)


Use the EDG’s shelter expenses for the calculation of net income and the benefit amount. 

Basic Shelter

7 CFR § 273.9(d)(6)(ii)(A)


The shelter expense must be a continuing charge: 

  • leading to ownership of the residence, or 
  • rental payments for the residence. 


Only allow expenses for the residence the EDG lives in. 

Exception: Expenses for an unoccupied home are allowed if the home meets the unoccupied home requirements.

Rent and Mortgage

7 CFR § 273.9(d)(6)(ii)(A)(E)


Allow costs of current rent or mortgages including:

  • All mortgage loan repayments, including 2nd mortgages and home equity loans as long as the home property is used as collateral for the loan.
  • Condominium and association fees.
  • Escrow payments for property taxes and insurance.
  • Interest fees on mortgage/mobile home payments. 
  • Payments to buy a mobile home.
  • Rent payments, including lot rent.
  • Unreimbursed repair or replacements costs for a home that was substantially damaged by a natural disaster, such as a flood or fire. 


Do not allow the following costs:

  • Amounts added to the current rent for previously unpaid rent.
  • Deposits or down payments.
  • Extra charges, such as late payment fees.
  • Repair or replacement costs unless they result from a natural disaster such as fire or flood.  

Note:  Do not allow the costs if they will be covered by a reimbursement.

Note: Expenses can only be allowed if they are owed to someone outside of the household and the household makes a money payment.  If someone outside the household pays the household's expenses, they are not allowable.

Property Taxes

7 CFR § 273.9(d)(6)(ii)(B)


Allow property taxes, including state and local assessments, as shelter expenses. 

Property Insurance

7 CFR § 273.9(d)(6)(ii)(B)


Allow the cost of insurance on the structure itself, such as fire, flood and liability insurance, if the policy separates the costs of the structure from the contents.  Allow the entire amount if the insurance policy does not separate these costs. 


Allow service charges such as an added fee for monthly billing but do not allow late payment charges. 


Do not allow renters insurance.

Unoccupied Home

7 CFR § 273.9(d)(6)(ii)(D) and (iii)(C)


Allow shelter costs of an unoccupied home if the EDG intends to return to the home and the members are away from the home for:

  • abandonment because of a natural disaster or casualty loss,
  • employment,
  • illness, or 
  • training.


Do not allow unoccupied home costs if:

  • the home is rented out or leased during the absence of the EDG members; or
  • current residents are claiming shelter costs for the home for SNAP in any state.


Allow only one utility allowance to cover both residences. Allow the highest applicable utility allowance.  

Multiple EDGs in One Residence

7 CFR § 273.9(d)(6)(ii)(A)-(E)


Give each EDG a deduction for their part of the basic shelter expenses when separate SNAP EDGs share a residence, and one EDG gives its share of basic shelter expenses to the other who then pays the expense. See Shared Households.


Utility Allowances

7 CFR § 273.9(d)(6)(iii)(A) and (E)


Allow one utility allowance.  Assign the appropriate utility allowance based on the EDG’s utility obligation. The utility allowances are:


See Utility Allowances for amounts.


See Determining the Utility Allowance.

Allowable Utility Costs

7 CFR § 273.9(d)(6)(ii)(C)


  • Cooking Fuel n
  • Cooling (air-conditioning)
  • Electricity
  • Excess heating or cooling charges
  • Fees charged for installation of utilities
  • Garbage and trash collection
  • Heating fuel, including propane tank rental fee and wood purchases when wood is the primary heating source
  • Installation of a utility
  • Phone, includes landlines or cell phones
  • Sewage
  • Water
  • Well and septic tank installation and maintenance

Standard Utility Allowance (SUA) 

7 CFR § 273.9(d)(6)(iii)(A) and (C)



Assign the SUA to an EDG meeting one of the following:

  • Is responsible for paying any portion of the heat or cooling costs directly to the provider, landlord, or to someone with whom the EDG shares these expenses (including excess or flat fees for these costs).
  • Received a DCB payment of at least $20.01 in the current month or previous 12 months.  

Note:  The case record must contain the amount and payment date of the payment.

  • Received a SUA$ payment of at least $20.01 in the current month or previous 12 months. 

Note:  The case record must contain the amount and payment date of the payment.

  • Receives a HUD, FmHA, or other program energy assistance payment, reimbursement or vendor payment, and the EDG incurs out-of-pocket heating or cooling costs exceeding the amount of the payment. 

EDGs meeting one of these criteria are eligible for the SUA.  The SUA covers all utilities, including the phone.


Heating costs must be for primary heating and do not include:

  • Electric blankets 
  • Heat lamps
  • Use of the cooking stove to heat


Cooling costs are for central or room air conditioners, but do not include fans.

Limited Utility Allowance (LUA) 

7 CFR § 273.9(d)(6)(iii)(A) and (C)


The LUA amount includes all non-heating/non-cooling costs including installation/maintenance.

       

The LUA is only used to determine expedited service.  Assign the LUA to an EDG that does not qualify for the SUA, but is responsible for paying any portion of at least 2 of the following expenses directly to the provider, landlord, or to someone with whom the EDG shares these expenses (including flat fees for these costs):

  • Electricity
  • Garbage/trash collection
  • Gas or other fuel used for any purpose other than heating or cooling
  • Phone 
  • Water/sewage 
  • Well and septic tank installation and maintenance

Telephone Allowance (TUA)

7 CFR § 273.9(d)(6)(iii)(A) and (D)


Give the telephone allowance to EDGs when this is their only utility expense.  Allow the full TUA, including when the EDG shares telephone expenses. Telephone includes landlines and cell phones. 

Multiple EDGs in One Residence

7 CFR § 273.9(d)(6)(iii)(E)-(F)


Give each EDG the full amount of the appropriate SUA, LUA or TUA as long as each EDG is responsible for the cost. 

Example: Two EDGs split the heating costs for the residence, each receives the full SUA. 


Excess Shelter Deduction 

7 CFR § 273.9(d)(6)(ii) & 7 CFR § 273.11(c)(2)(iii)


Allow an excess shelter deduction for the total costs of the Basic Shelter and Utility Standard in excess of 50% of the EDG’s income, after all other deductions are subtracted, up to the excess shelter deduction maximum. 

Exception: EDGs with a elderly or disabled member do not have a maximum for the shelter deduction, unless the only elderly or disabled member is ineligible. 


Homeless Shelter Deduction 

7 CFR § 273.9(d)(6)(i) 


Allow a homeless shelter deduction for the total costs of shelter and utility expenses in excess of 50% of the EDG’s income, after all other deductions are subtracted when the household meets the definition of homelessness and the household incurs, or is reasonably expected to incur shelter costs in that month. If a homeless household incurs shelter costs in excess of the homeless shelter deduction maximum, the household can claim actual costs up to the excess shelter deduction maximum. Note that some homeless households may have shelter/utility costs outside of the norm - i.e. laundry costs, payments to a hotel/motel, costs of living in a vehicle, etc. which can be applied toward the homeless shelter deduction. There is no limit to the number of times a homeless household can claim this deduction.


Exception: Homeless households who are in receipt of the SUA$ or who are entitled to the traditional SUA are not eligible to receive this deduction. 

Verification

7 CFR § 273.2(f)(1)(iii) and (2)(i) and (3)(i)-(ii)


Verification is not required unless the information is questionable.

Exception: Verify utility expenses for an unoccupied home if claiming the expense.

Provide the EDG with form W-1348, Proofs We Need, for any required verification. Allow the EDG 10 days to provide the verification. Treat verification not provided in time to meet the action timeliness standard, but submitted later, as a verified change. 

Take the following actions only if verification is requested.

Application 

7 CFR § 273.2(f)(3)(ii) and (i)(3) and (4)(B)


Process the application without the expense if verification for a questionable expense is not submitted prior to the end of the 30-day processing period. 


Postpone verification for expedited service month(s), unless verification can be provided in time to meet the 7-day standard of promptness.

Periodic Report

7 CFR § 273.12(c)(1)-(2)


For increased benefits, act on the reported change if not questionable. 

  • If questionable, send the EDG a W-1348, Proofs We Need, requesting any required verifications not provided with the PRF.  Allow the EDG 10 days to verify the reported change.
  • If required verification is not provided by the due date:
  • If a new expense was reported (at the current address or due to a move), do not allow the expense.
  • If a change in a current expense was reported, do not act on the change. 
  • Verify and act on the change at renewal.

For decreased benefits/closes case, act on the reported change.  Verify questionable changes at renewal if verification is not provided with the PRF.''

Interim Change

7 CFR § 273.12(c)(1)-(4)


For increases, act on the reported change if not questionable.

  • If questionable, send the EDG a W-1348, Proofs We Need, requesting any required verifications not provided with the PRF.  Allow the EDG 10 days to verify the reported change.
    • If required verification is not provided by the due date:
  • If a new expense was reported (at the current address or due to a move), do not allow the expense.
  • If a change in a current expense was reported, do not act on the change. 
  • Verify and act on the change at renewal.


Decreases are not processed for interim changes with certain exceptions. See Change Processing, Benefit Decrease/Case Closure. Verify questionable information at renewal.

Renewal

7 CFR § 273.2(f)(8)(i)-(iv) & 7 CFR § 273.14(b)(4)


Process without the expense if a new expense or a change in expense is reported and required verification is not submitted by requested due date.