Section 17-663-76 - Treatment of boarders and boarder payments(a) Persons paying a reasonable amount for room and meals shall be excluded from the household when determining the household's eligibility and benefit level.(b) Payments from the boarder shall be treated as self-employment income as provided below: (1) The income from boarders shall include all direct payments to the household for room and meals, including contributions to the household's shelter expenses; and(2) Shelter expenses paid directly by boarders to a person outside of the household shall not be counted as income to the households.(c) That portion of the boarder payments which is a cost of doing business shall be excluded by the branch after the branch determines the income received from the boarder. The cost of doing business shall consist of one of the following amounts, provided the amount allowed as the cost of doing business shall not exceed the payment the household received from the boarder for lodging and meals: (1) The cost of the thrifty food plan for a household size that equals the number of boarders; or(2) The actual documented cost of providing room and meals, if the actual cost exceeds the thrifty food plan. If actual costs are used, only separate and identifiable costs of providing room and meals to the boarder shall be excluded. If the cost of doing business equals or exceeds the board payment, no boarder income shall be included as income to the household. In no case shall a loss be offset against other income; and
(d) The net income from self-employment shall be added to other earned income and the earned income deduction shall be applied to the total earned income amount. Shelter costs the household actually incurs, even if the boarder contributes to the household for part of the household's shelter expenses, shall be computed to determine if the household will receive a shelter deduction. The shelter costs shall not include any shelter expenses directly paid by the boarder to a third party, such as the landlord or utility company.[Eff 3/19/93; comp 11/19/05; am and comp OCT 07 2010] (Auth: HRS § 346-14) (Imp: 7 C.F.R. §§273.1(b) (3); 273.9(b) and (c); 273.11(b) and (c))