780-19        SHELTER ALLOWANCE

A portion of the Temporary Assistance benefit payment is designated as a shelter allowance.  The amount of the shelter allowance is 30 percent of the family’s need standard.  Families responsible for shelter costs below the amount of their shelter allowance may have their benefit payments reduced.  Families with shelter costs equal to or greater than their shelter allowance will not have their benefit payments reduced.

To determine the shelter allowance, the caseworker must identify the allowable shelter costs and verify that the family is responsible for paying the expense.  Generally, the costs must be for the home currently occupied by the family.  Exceptions are listed at manual section 780-19F.

780-19 A.   SHELTER COSTS ALLOWED

1. Rent or Mortgage Costs Allowed

• Regularly charged rental payments, including payments for a trailer or mobile home space or boat berth;
   

• For families living in public housing and those getting Section 8 Housing Choice Voucher subsidies, the amount of rent they are required to pay.  The amount designated as a utility allowance is not included in the amount allowed as the family’s rent;
   

• Mortgage payments, including payments on a trailer, mobile home, vehicle or boat, and the property on which the trailer, mobile home, or boat usually rests;
   

• Payments on second mortgages secured by the home;
   

• Payments related to a reverse mortgage, including mortgage interest payments, mortgage insurance, and bank fees;
   

• Property taxes and other assessments levied against the home property;
   

• Condominium fees and association fees.  If a portion of the fee covers the cost of a heating or non-heating utility, the family is allowed the heating or non-heating utility standard in addition to the condominium fee;
   

• Mortgage, homeowner’s, and renter’s insurance.  If the household is living in a vehicle, the insurance costs that cover the vehicle are allowed;
   

• Security deposits required to secure housing;
   

• Costs covered by earned in-kind income.  For example, the portion of the rent reduced in exchange for managing an apartment complex would be allowed;
   

2. Utility Costs Allowed

• Fuel for home heating, cooking, or lighting, including fuel oil, natural gas, liquefied petroleum gas, coal, wood, and other home heating, cooking or lighting fuel;
   

• Electricity;
   

• Telephone service – allow one phone utility standard per family.  If actual costs are used, allow only costs for basic service;
   

• Water, including water delivery;
   

• Sewage disposal, including pumping of septic tanks and holding tanks and commercial honey-bucket service;
   

• Garbage collection, including pickup of recyclable household containers;
   

• Initial installation of utilities;
   

• Home energy costs for home heating and/or electricity paid by the Heating Assistance Program or an energy assistance program administered by a Native organization;
   

• Utility costs charged by a landlord, including charges for water for a washing machine and charges for outside electric outlets for vehicles.

780-19 B.   SHELTER AND UTILITY COSTS NOT ALLOWED

• One-time deposits on utilities, including telephone;
   

• Mandatory fees such as furniture charges, pest control charges, and maintenance fees.  

Exception:  

The entire condominium fee is allowed as a shelter cost even if all or a portion of the fee covers these items.

• Home mortgage or loan closing costs, unless itemized to identify allowable deductions such as insurance and taxes;

• Gasoline costs when the household is living in a vehicle and uses the vehicle for transportation.
   

• Payments made on vehicles not used as a home;

• If the household lives in a vehicle, insurance costs that are not for the vehicle itself, such as collision and medical coverage, are not allowed.
   

• Costs covered by unearned in-kind income, an excluded reimbursement, or an excluded vendor payment.  For example, the Section 8 Housing Choice Voucher subsidies or Alaska Power Cost Equalization Program payments are not considered part of the family’s shelter cost.  

Exception:  

Home heating and/or electricity paid by the Heating Assistance Program or an energy assistance program administered by a Native organization are an allowable deduction;

• Late fees;
   

• Past due expenses previously billed.

780-19 C.   CALCULATING UTILITY COSTS

Utility costs are included in determining the shelter allowance by using the heating utility standard or non-heating utility standards.  In certain circumstances, actual costs are allowed.

1. Heating Utility Standard

Families that are responsible for paying primary heating costs separate from their rent or mortgage are allowed the heating utility standard.  The heating utility standard includes the costs for home heating fuel (fuel oil, natural gas, liquefied petroleum gas, coal, wood or other heating fuel), and other non-heating utility costs including electricity, water, sewer, phone, garbage collection, and cooking fuel.  The heating utility standard is also given to:

• Families responsible for paying heating fuel costs to a vendor or utility company, even when charged irregularly, such as periodic propane or fuel oil fill-ups;
   

• Families responsible for paying heating fuel costs to their landlords, who charge the tenant on the basis of individual usage, a flat rate separate from their rent, or for excess heating costs;
   

• Families receiving Heating Assistance or energy assistance administered by a Native organization, even when the household is not responsible for heating costs.  These households are given the heating utility standard for the full year for which they received heating assistance;

• Families in public housing or that receive Section 8 Housing Choice Voucher subsidies that are charged for heating costs;

• Families who have their heat covered by condominium and association fees, if the fee includes heat;

• Families who can verify that they pay for heating expenses that are billed in another name.

Temporary use of another heating source for which the family is not charged does not end entitlement to the heating utility standard.

When the residence is shared, each family who is responsible for paying at least a portion of the heating costs is entitled to the full heating utility standard.

See Addendum 2 for the heating utility standard amounts by utility region.  For additional instructions, refer to EIS Eligibility Information System Procedures 2004-1.

Families are not entitled to the heating utility standard when:

• They use wood for their primary heating source but do not pay for it.  The costs of gathering the wood, such as gas and oil for chain saws and transportation to get the wood, cannot be counted since the shelter cost is only allowed for the heating fuel itself.
   

• The only heating costs they are responsible for are for supplemental heating sources, such as the operation of a space heater, electric blanket, or heat lamp.

2. Non-Heating Utility Standards

Non-heating utility standards are given to families that are responsible for electricity, water, sewer, and/or phone costs, yet are not responsible for paying heating costs.  Each utility standard is separate; families may be entitled to one or all of the non-heating utility standards.  

The non-heating utility standards are given to:

• Families responsible for paying utility costs to a vendor or utility company;
   

• Families responsible for paying utility costs to their landlords, who charge the tenant on the basis of individual usage, a flat rate separate from their rent, or for excess utility costs.
   

• Families in public housing or that receive Section 8 Housing Choice Voucher subsidies that are charged for non-heating utility costs.

When the residence is shared, each family responsible for paying at least a portion of the non-heating utility is entitled to the full non-heating utility standard.

See Addendum 2 for the non-heating utility standard amounts by utility region.  For additional instructions, refer to EIS Eligibility Information System Procedure 2004-1.

3. Actual Utility Costs

Families are allowed actual utility costs when:

• They are not entitled to the heating utility standard and have costs such as garbage collection, cooking fuel, and natural gas for water heaters that are not covered by a non-heating utility standard.
   

• The family’s actual utility costs are more than the heating utility standard or non-heating utility standard and allowing actual costs would result in a higher benefit payment to the family.  If actual costs are used, only the basic service fee for one telephone is allowed.

780-19 D.   SHARED SHELTER COSTS

The family is allowed the full heating or non-heating utility standard when:

• The family shares a heating or non-heating utility cost with an individual who is not a member of the family.
   

• The family in a shared living situation is solely responsible for the utility cost.

The family must provide documentation if questionable showing:

• A member of the family is responsible for the shelter cost when a shelter cost is billed to the individual who is not a member of the family.
   

• The amount of the shelter cost they are responsible for when the family is responsible for only a portion of a non-utility shelter cost, such as when they are responsible for paying only half the rent.

780-19 E.   SHELTER COSTS PAID BY A THIRD PARTY

Shelter costs are allowed when paid by:

• The Heating Assistance Program or an energy assistance program administered by a Native organization; or
   

• Temporary Assistance supportive services.

780-19 F.   SHELTER COSTS ALLOWED FOR AN UNOCCUPIED HOME

1. Shelter costs for a home temporarily unoccupied by the family because of medical reasons, employment, or training are allowed as long as:

• The family intends to return to the home;
   

• Any current occupants are not claiming shelter costs for Temporary Assistance purposes; and
   

• The home is not rented or leased during the family’s absence.

Note:  

Unlike Food Stamp policy, shelter costs for both the unoccupied home and the temporary or secondary residence are not allowed.

2. Shelter costs for two residences are allowed when the family moves in the middle of the month and has shelter expenses for both residences.  

Note:  

The family is allowed the heating utility standard or non-heating utility standard for only one residence.

780-19 G. HOMELESS SHELTER DEDUCTION

Households in which all members are homeless may be allowed a standard deduction of $143.  In order to receive the deduction, the household must incur some shelter expense.  If the household is allowed the homeless standard deduction, they are not allowed other deductions such as gas for cooking or a minimal fee charged by some homeless shelters.  The household may choose to use actual expenses instead of the homeless standard deduction if they believe their expenses exceed the $143 allowed.

If the homeless shelter deduction is allowed, code the expense on the DEMH as OE AT $143.

780-19 H. VERIFICATION OF SHELTER COSTS

Verification of shelter costs is only required for any expenses that are questionable. If verification of shelter costs is requested, the reason the expense was found questionable must be documented.

Note:

The Alaska Annual Rental Market Survey shows average rent costs throughout the state and is updated by the Department of Labor each May.  The survey can be accessed at http://labor.alaska.gov/research/housing/rental.pdf.  If a caseworker finds the client’s statement on the amount of rent they pay questionable, they can compare their statement to the contract rent on this chart for the individual’s living area.  If the amount of rent reported is significantly different than the amount listed in the “Contract” column, rent should be verified.

780-19 I.   wHEN SHELTER COSTS MUST BE VERIFIED

The family must verify a questionable shelter cost:

• At initial application, when the cost would result in an increased benefit and the amount is questionable.

Note:  

If obtaining verification of expenses would delay the initial application, the family may choose to have the application processed without the allowance.  The caseworker will determine the family’s eligibility and allotment without the allowance if the expense is not verified within 30 days of the application filing date.

• During the review period, when the family reports their shelter costs have changed and the amount is questionable.
   

• At review, when the family reports new shelter costs or when the previously verified expenses have changed by more than $25 and the amount becomes questionable.

When the heating utility standard or non-heating utility standard is allowed, the family’s responsibility for the heating cost must be verified, however, it is not necessary to verify the amount.  

When the family has recently moved into the home and has not yet received a bill, the caseworker can verify the family’s responsibility for the cost by contact with the landlord or by confirming with the utility company that the family has an active account with them.

Note:

Shelter costs for households living in subsidized housing must be verified at initial application, during the review period or at review if the amount has changed more than $25.00 or if the client has moved to a new location.
 

780-19 J. ACCEPTABLE VERIFICATION

Acceptable verification of questionable shelter and utility costs includes contact from the company or person charging the cost (such as the landlord, utility company, mortgage holder) or documentation, such as a lease agreement showing who is responsible for paying for utilities.

Itemized receipts showing monthly charges are acceptable verification of the monthly charges.  Receipts showing only an amount paid are generally not acceptable since the amount paid may include additional charges such as late fees that are not allowed.

The following table provides examples of acceptable shelter cost verification when shelter costs are questionable.

780-19 K.  Examples

Example:  Homeless Family

Joe has applied for ATAP Alaska Temporary Assistance Program benefits.  He reports he and his son are currently homeless and living in a tent.  He states he spends about $20 a month to buy propane for cooking.  Because Joe does have some shelter expenses, he is allowed the standard shelter deduction of $143 per month.  Verification that he purchases propane is not required because he has reported a reasonable amount.

Example:  Verification of Rent and  Utilities Not Required

Vanessa and her two children have applied for benefits.  She reports she owns her own trailer.  She paid it off last year.  She now pays space rent of $400 per month, electricity of $50 per month and receives Heating Assistance to pay for fuel.  Vanessa is allowed the $400 expense for space rent and the SUD Standard Utility Deduction.  Because the amounts reported are not questionable, verification of the expenses are not required.

Example:  Verification of Shelter Required

Colleen and Levi have submitted an application for benefits. They report they have not worked for the last 2 months since they were both laid off their seasonal jobs.  Colleen is receiving UIB Unempoyment Insurance Benefits of $500 per month.  They report their rent is $1000 per month plus electricity.  They state they are not behind on their rent but have no explanation of how they’ve been paying for shelter.  In this situation, verification of shelter expenses should be requested because it is questionable.  If not provided, the application is worked without allowing a deduction for their unverified rent or electricity.

Example:  Subsidized Housing

Kristina has an ongoing ATAP Alaska Temporary Assistance Program case.  She reports she and her daughter were finally able to move into subsidized housing.  She states her new rent is $850 and she pays electric heat.  Because there is often confusion from those in subsidized housing about the difference between the unit rent and the portion they must pay, the caseworker must verify the amount Kristina is required to pay for her rent.  The caseworker must also verify whether heat is included in the rent.  Many housing complexes have oil heat which is paid by the owner with the residents paying their own electricity.