Ala. Admin. Code r. 660-4-2-.04

Current through Register Vol. 43, No. 1, October 31, 2024

Section 660-4-2-.04 - Income And Deductions

Specific income and deductions to be considered in determining a household's eligibility and benefit level are outlined by Federal Regulation. Adopted options and waivers are as follows.

(1) OPTIONS:

(a) Income: All income, except income specifically excluded by federal regulations, is considered in determining household eligibility and benefit level. When a full month's income is anticipated but is received less often than monthly, the income is converted to a monthly figure. The anticipated income is not counted until the month in which the income is received.

(b) Deductions: Monthly shelter costs in excess of 50% of the household's income after all other deductions have been allowed up a maximum limit are the household's shelter deduction except for households that contain an elderly or disabled person (as defined in the Glossary). Such households shall receive an excess shelter deduction for the monthly cost that exceeds 50% of the household's monthly income after all other applicable deductions. If the elderly or disabled member is either hospitalized or institutionalized and is no longer a household member, the household would not qualify for an uncapped shelter deduction. The determination of the shelter expense is automated. See Enter shelter expense in OACIS

SHELTER COSTS

Shelter costs include only the following:

1. Continuing charges for the shelter occupied by the household, including rent, mortgage, condominium (condo) and association fees or other continuing charges leading to the ownership of the shelter such as loan repayments for the purchase of a mobile home, including interest on such payments. Payments on second mortgages and home equity loans are allowable shelter costs regardless of why the money was obtained or how it was used.

2. Property taxes, State and local assessments, and insurance on the structure itself, but not separate costs for insuring furniture or personal belongings.

3. The appropriate standard (SUA/BUA or telephone) for utility expenses. The household is entitled to the Standard Utility Allowance or the Basic Utility Allowance or the telephone standard.

a. An expense paid on behalf of a household under a state law to provide energy assistance shall be considered an out-of-pocket expense incurred and paid by the household.

b. One-time deposits shall not be included as shelter costs.

c. Penalty fees for being late in making payments on utilities, mortgages and/or property taxes are not to be included as a shelter cost or part of a shelter cost. These penalties are not allowable as deductions for food assistance purposes.

4. Shelter costs for the home if temporarily unoccupied by the household because of employment or training away from home, illness, or abandonment caused by natural disaster or casualty loss. Shelter costs may be allowed for the unoccupied shelter if:

a. The household intends to return to the home.

b. The current occupant of the home, if any, must not be claiming the shelter cost for food assistance purposes.

c. The home must not be leased or rented during the absence of the household.

Only one standard can be claimed for both residences. A separate SUA/BUA or telephone standard cannot be claimed for each residence.

5. Charges for the repair of the home which was substantially damaged or destroyed due to a natural disaster such as a fire or flood. Shelter costs shall not include charges for repair of the home that have been or will be reimbursed by private or public relief agencies, insurance companies, or from any other source.

6. Shelter costs for two residences may be claimed when it is necessary for a household member to be away from home and occupy a second residence for part of the month due to employment or training or illness. Only the standard can be claimed for both residences. A separate standard cannot be claimed for each residence.

G.Standard Utility Allowance

1.General Information

The Standard Utility Allowance (SUA) is a standard amount to be budgeted monthly for utility expenses that include a heating or cooling component. The SUA is determined on an annual basis and any adjustment is handled as a mass change effective October 1. See Enter utility expense in OACIS The SUA shall be made available only to households who incur heating and cooling costs separately and apart from their rent or mortgage. A cooling cost which entitles a household to the SUA is a utility expense relating to the operation of air conditioning systems or room air conditioners. These households include:

a. Residents of rental housing who are billed on a monthly basis by their landlords for individual usage, or who are charged a flat rate separately from their rent.

b. Recipients of direct or indirect energy assistance made under the Low Income Home Energy Assistance Act of 1981 even if these households incur no heating or cooling charges.

c. Recipients of direct or indirect energy assistance, other than LIHEAA, that is excluded as income if the expense exceeds the amount of the assistance.

d. Recipients of direct or indirect energy assistance that is counted as income and incurs a heating or cooling expense.

e. Recipients in public housing with shared meters that are charged for excess utility costs that include either a heating or cooling component.

2.Entitlement to the SUA

A household which expects to incur a heating or cooling expense within the next 12 months will be allowed the SUA. Entitlement to the SUA may be verified by documenting the household's statement concerning qualified heating or cooling costs that are incurred during the year.

a. If the household has moved and has not established a pattern of energy use, the worker will have to anticipate whether the household will incur a heating or cooling expense in the next 12 months. This can be done by documenting that the household has the ability to incur costs which will entitle it to the SUA.

b. The SUA is not intended for households who incur infrequent and minimal expenses such as:

* A household which has no air conditioners, cuts its own firewood for heating, and only incurs the expense of gasoline for a chain saw and matches for lighting the fire.

* A household which has no air conditioners and which used only electric blankets for warmth.

* A household living in an apartment with no air conditioners, but with gas included in the rent payment, has electricity billed separately; while the household heats with gas, it runs a blower fan with electricity; this household is not entitled to the SUA.

3. When the Household Moves

The SUA is allowed for the certification period; the household is only required to report a change in its shelter deduction when it moves. A move by any household using the SUA requires the county department to determine the household's entitlement to the SUA at the new address.

a. A household loses entitlement to the SUA when it movesa. and stops incurring separate heating and cooling costs. When the county department becomes aware of such a change, it should take appropriate action, considering the applicable notice requirements, to remove the standard utility allowance from the household's net income computation, or change the standard, as appropriate, if the household establishes entitlement to the BUA or telephone standard.

b. When a household who was not entitled to SUA reports a move, the county department is required to determine if the household would be entitled to the SUA at their new address.

4.The SUA and Sharing Expense

When utility expenses are shared among different households living together in one residence, each household is entitled to receive the full SUA if the residence has qualifying heating or cooling costs. All households are not required to be participating in food assistance program for this purpose.

5. Low Income Home Energy Assistance Act Payments (LIHEAA) and the SUA

A household whose shelter arrangement does not change and who receives at least one LIHEAA payment will keep its entitlement to the SUA for a full year, the same as a household that incurs heating or cooling costs on a regular basis. If a household moves and receives a LIHEAA payment at the new address, it would continue to be eligible for the SUA. However, if it moves and its circumstances are such that it receives neither a LIHEAA payment nor incur out-of-pocket heating or cooling costs it will not receive the SUA.

H.Basic Utility Allowance

1.General Information

The Basic Utility Allowance (BUA) is a standard utility amount to be budgeted monthly for households who incur utility expenses other than or in addition to a telephone expense, but not separate heating or cooling costs or LIHEAA payments.

2.Entitlement to the BUA

To qualify for the BUA a household must be billed for at least two utility expenses separate and apart from their rent or mortgage. Qualifying expenses include: electricity, fuel for purposes other than heating or cooling, water, telephone, sewerage, garbage or trash collection, installation and maintenance of a septic tank or a well, or an excess utility cost that does not include heating or cooling for households who live in public housing or other similar rental units.

3.The BUA and Sharing Expense

When utility expenses are shared among different households living together in one residence each household is entitled to receive the full BUA if the residence has qualifying costs. All households are not required to be participating in the food assistance program for this purpose.

4.Telephone Standard

If a household only incurs the cost of a telephone (may be a cell phone), they will only be entitled to the telephone standard not the Basic Utility Allowance (BUA).

5.Actual Utility Expense

Households incurring only one utility expense other than a telephone or a heating or cooling expense are not entitled to receive a utility standard. These households will be given that utility expense as a deduction based on an average of the actual expenses incurred and anticipated for the certification period. In this situation counties are encouraged to contact the State Policy Desk for assistance in determining the deduction.

Ala. Admin. Code r. 660-4-2-.04

Effective May 10, 1985. Repealed and Replaced: Filed November 1, 1995; effective December 6, 1995. Amended: Filed May 19, 1998; effective June 22, 1998. Succedent emergency amendment effective April 20, 2000. Amended: Filed June 2, 2000; effective July 7, 2000.

Amended by Alabama Administrative Monthly Volume XXXVII, Issue No. 01, October 31, 2018, eff. 11/23/2018.

Author: Pamala Pace

Statutory Authority: Food Stamp Act of 1977, 7 U.S.C. 2011 et seq; Code of Ala. 1975, § 38-2-6(17); 7 C.F.R. Subtitle B, Chapter II Subchapter C Section 273.9(c) (12), 273.9(d) (5) (i), 273.9(d) (6) (i) and (ii), 73.9 ( 6) (iv) (c), 273.10(c) (2) (I), and 273.10(e)(1)(ii); Waiver I.D. 900017. Public Law 104-193 (Personal Responsibilities and Work Opportunity Reconciliation Act of 1996) Section 809. Waiver ID 2000511.