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Effective immediately, we will no longer be using the DFS 105 Contribution/Eating Arrangement/Shelter Statement for SNAP. There are also changes in regards to how pass-through income for rent and/or mortgage is counted.We will accept client’s statement for whether the client purchases and prepares separately from a roommate(s).
- The narrative must specify whether the client stated s/he purchases and prepares separately from his/her roommate(s) and document the roommate’s name(s). If the roommate is a parent or child, the age of the child must be documented in order to determine whether separate households are allowed.
If the rent/mortgage is split:
- If rent/mortgage is in the client’s name, the total obligated amount must be verified;
- Client’s statement will be used for verification of the amount each member is responsible for.
- As long as the rent/mortgage is being shared, whether money for the rent/mortgage and/or utilities is given to the client or paid directly to the vendor, the pass-through money is not countable income.
- If the client is renting out part of his/her home for a profit (self-employment), the money received for rent and/or utilities is countable income. (Remember to use the net income = profit minus billed mortgage.)
- CFR 273.9(b)(c)(1)(ii)… Ownership of rental property shall be considered a self-employment enterprise; however, income derived from the rental property shall be considered earned income only if a member of the household is actively engaged in the management of the property at least an average of 20 hours a week. Payments from a roomer or boarder, except foster care boarders, shall also be considered self-employment income.
- If the client is actively engaged in the management of the property at least an average of 20 hours a week, the income is counted as earned self-employment income and coded as such on the SEEI screen in EPICS; and
- If the client is not actively engaged in the management of the property at least 20 hours a week, the income is counted as unearned income and coded RE on the UNIN screen in EPICS.
- CFR 273.9(b)(c)(1)(ii)… Ownership of rental property shall be considered a self-employment enterprise; however, income derived from the rental property shall be considered earned income only if a member of the household is actively engaged in the management of the property at least an average of 20 hours a week. Payments from a roomer or boarder, except foster care boarders, shall also be considered self-employment income.
- If rent/mortgage is in the roommate’s name, verification of rent and utilities (if applicable) must be obtained (Rental Verification or written statement for rent, utility bill for utilities):
Example 1. Anna and Elsa are roommates. Anna is applying for SNAP benefits, she claims she and Elsa purchase and prepare food separately. Anna owns the home in which they live and Elsa pays her $250/month (cash) for rent; Anna pays the entire heating bill. Anna claims she is billed $1000/month for her mortgage.
- Client’s statement is used for verification that Anna and Elsa purchase and prepare food separately. The narrative is documented indicating this statement.
- Verification of the billed monthly mortgage is required since the mortgage is in the client’s name, as well as the heating bill. Client’s statement is used for the amount Elsa contributes to the mortgage. Since the amount Elsa pays for rent is less than the billed monthly mortgage obligation, there is not any countable income. Since the cash given to Anna for the mortgage is just being passed through for the mortgage, zero income is countable.
- On the DEMH screen, rent of $750 is allowed since that is the portion Anna is responsible for, as well as the SUA.
Example 2. Ron and Brick are roommates. Brick is applying for SNAP benefits, he claims he and Ron purchase and prepare food separately. The lease is in Ron’s name and total rent is $700/month, Brick and Ron each pay $350/month. Utilities are included in the rent.
- Client’s statement is used for verification that Brick and Ron purchase and prepare food separately. The narrative is documented indicating this statement.
- Verification of the amount of rent Brick is responsible for is required. When given the options, Brick opted to have Ron fill out a Rental Verification form.
- On the DEMH screen, rent of $350 (RU) is allowed.
Example 3. Cher and Dionne are roommates. Cher is applying for SNAP benefits, she claims she and Dionne purchase and prepare food separately. Cher owns her home and doesn’t have a mortgage obligation, Cher pays the heating bill. Cher charges Dionne $500/month in rent. Cher is not actively engaged in the management of the property.
- Client’s statement is used for verification that Cher and Dionne purchase and prepare food separately. The narrative is documented indicating this statement.
- Client’s statement is used for verification of Dionne’s rent contribution. Verification of the heating bill is required.
- The rent of $500 received by Cher is coded as unearned income (RE) on UNIN.
- The SUA is allowed on DEMH.
Example 4: Linda provides verification of her bank account that shows money being deposited on a regular basis. Linda explains to her benefit specialist she allows her friend to use her bank account in order to pay her car insurance. The benefit specialist will need to verify that the funds are in fact coming from a non-household member (statement from non-household member) as well as verify the amount of the deposit is being used to pay car insurance (copy of bill) in her friend’s name. If verified, we would consider this pass through, if not, we will count the deposits as unearned income to the client.
Example 5: Robert lost his job 5 months ago and states to his benefit specialist that his uncle gives him money to pay his rent and utility expenses. Because the money is given directly to Robert, the contribution counts as unearned income and Robert is eligible to receive the deductions for his rent and utilities.
*If Robert’s uncle were making payments directly to his landlord and utility company, it would be considered a vendor payment, we would not count any income and Robert would not receive deductions.