780-19        SHELTER ALLOWANCE

A portion of the ATAPAlaska Temporary Assistance Program 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 in ATAPAlaska Temporary Assistance Program MSManual 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;

Exception:

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

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; 

Note:

Caseworkers must review ECOSEnergy Community Online System for heating assistance eligibility prior to making an eligibility determination.

For Native organization energy assistance eligibility, verification must be received from the Native organization prior to making an eligibility determination. See HAPHeating Assistance Program Addendum B for an updated list of HAP Tribal Providers.

• 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;

• An increase to the rent expense due to a pet living in the home is not an allowable shelter expense. The portion of rent that was increased will not be allowed as a shelter cost.

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 EISEligibility 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 EISEligibility 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 
• ATAPAlaska Temporary Assistance Program 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 ATAPAlaska Temporary Assistance Program purposes; and 
• The home is not rented or leased during the family’s absence.

Note:  

Unlike SNAPSupplemental Nutrition Assistance Program 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 $167.

If the household is allowed the homeless standard deduction, they are not allowed other shelter or utility 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 $167 allowed.

If the homeless shelter deduction is allowed, code the expense on the DEMHDependent / Medical / Household Expenses (Eligibility Information System Screen) as HS $167.

780-19 H. VERIFICATION OF SHELTER COSTS

The family must verify shelter costs:

• At initial application, when the cost would result in an increased benefit.

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

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 I. ACCEPTABLE VERIFICATION

Acceptable verification of 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.

780-19 J. CODING SHELTER/UTILITY EXPENSE WHEN ONE OF TWO PARENTS IS RECEIVING APAAdult Public Assistance OR SSISupplemental Security Income

When one of two parents is not included in the assistance unit due to receipt of APAAdult Public Assistance or SSISupplemental Security Income, the family's shelter and utility expenses should be entered in EISEligibility Information System next to the parent included in the TATemporary Assistance case. This action ensures the shelter and utility allowances are maximized for the TATemporary Assistance household, since shelter and utility expenses are not a factor considered when determining eligibility or benefit amount for APAAdult Public Assistance.