218-20-00 R.I. Code R. § 1.5

Current through April 16, 2024

Section 218-RICR-20-00-1.5 - Financial Requirements

1.5.1Categorical Eligibility

A. The following households are considered categorically eligible for SNAP benefits:

1. A household in which all members receive or are authorized to receive RIW cash assistance.

2. A household in which all members receive or are authorized to receive SSI.

3. A resident of a public institution who applies jointly for SSI and SNAP benefits prior to their release from the institution is not categorically eligible for SNAP benefits upon a finding by SSA of potential SSI eligibility prior to release.

a. This individual is considered categorically eligible at such time as a final SSI eligibility determination has been made and the individual has been released from the institution.

4. A household whose RIW or SSI benefits are suspended or being recouped.

5. A household entitled to RIW benefits but is not paid such benefits because the grant is less than ten dollars ($10.00).

6. A household in which all members receive or are authorized to receive General Public Assistance (GPA) benefits.

7. A household (including related children) authorized to receive a TANF-funded service.

a. A TANF-funded service includes receipt of the Rhode Island Department of Human Services TANF Information Publication.

b. These households must meet the Gross Monthly Income Standards (Table IV or Table V in § 1.15 of this Part) in order to be eligible for a TANF-funded service, and will receive a benefit as long as the normal benefit calculation (the Thrifty Food Plan amount for the household's size reduced by thirty percent (30%) of the household's net income in Table II in § 1.15 of this Part) results in a positive benefit amount.

(1) Households with three (3) or more members which would not receive a benefit will be denied.

(2) Categorically eligible households of one (1) and two (2) will receive at least the minimum monthly benefit of twenty-three dollars ($23.00) after the calculation is completed.

B. RIW and GPA Households

1. To facilitate participation in the program, households in which members are applying for RIW and/or GPA (PA households) must be allowed to complete a joint application for SNAP benefits at the same time they apply for such assistance. These households' SNAP eligibility and benefit levels are based solely on SNAP eligibility criteria.

2. The joint application processing procedures in this Section are used for a SNAP household in which some members are receiving RIW and/or GPA and others are receiving SSI.

a. A household consisting of some members who are receiving RIW/GPA/SSI and some not receiving assistance also may file a joint application for SNAP benefits.

3. Categorical eligibility must also be assumed at recertification in the absence of a timely RIW redetermination.

C. Reporting Changes

1. Households are not required to report changes in the assistance payment grant. Since the agency representative has prior knowledge of all changes in the assistance payment grant, action must be taken on this information.

2. Except for PA grant changes, PA households must report changes within ten (10) days.

a. PA households which report a change in circumstances to the PA worker are considered to have reported the change for SNAP purposes.

3. A household must be notified whenever its benefits are altered as a result of changes in the PA benefits. Adequate time for the agency representative to send a notice of expiration and for the household to timely reapply must be allowed.

4. Whenever a change results in the reduction or termination of the household's PA benefits within its SNAP certification period, and the agency representative has sufficient information to determine how the change affects the household's SNAP eligibility and benefit level, the agency representative takes the following actions:

a. If a change in household circumstances requires both a reduction or termination in the PA payment and a reduction or termination in SNAP benefits, the agency representative must issue a notice of adverse action for both the PA and SNAP actions.

b. If the household requests a hearing within the period provided by the notice of adverse action, the household's SNAP benefits should be continued on the basis authorized immediately prior to sending the notice.

c. If the hearing is requested for both programs' benefits, the hearing is conducted according to PA procedures and timeliness standards. However, the household must reapply for SNAP benefits if the SNAP certification period expires before the hearing process is completed.

d. If the household does not appeal, the change is made effective in accordance with the procedures specified in §1.13.1(D) of this Part.

5. If the household's SNAP benefits are increased as a result of the reduction or termination of PA benefits, the agency representative issues the PA notice of adverse action, but does not take any action to increase the household's SNAP benefits until the household decides whether it will appeal the adverse PA action.

a. If the household decides to appeal and its PA benefits are continued, the household's SNAP benefits may continue at the previous basis.

b. If the household does not appeal, the agency representative makes the change effective in accordance with the procedures specified in §1.13.1 of this Part except that the time limits for the agency representative to act on changes which increase a household's benefits are calculated from the date the PA notice of adverse action period expires.

6. Whenever a change results in the termination of a household's PA benefits within its SNAP certification period, and the agency representative does not have sufficient information to determine how the change affects the household's SNAP eligibility and benefit level, the agency representative does not terminate the household's SNAP benefits but instead takes the following action:

a. If the situation requires a reduction or termination of PA benefits, the agency must issue a request for documentation at the same time it sends a PA notice of adverse action.

b. Before taking further action, the agency must wait until the household's PA notice of adverse action period expires or until the household requests a fair hearing, whichever occurs first.

c. If the household requests a fair hearing and elects to have its PA benefits continued pending the appeal, the agency must continue the household's SNAP benefits at the same level.

d. If the household decides not to request a fair hearing and continuation of its PA benefits, the agency must resume action on the changes.

e. If the situation does not require a PA notice of adverse action, the agency must issue a request for documentation. Depending on the household's response to the request for documentation, the agency must take appropriate action, if necessary, to close the household's case or adjust the household's benefit amount.

D. Mass Changes in Public Assistance

1. When an overall adjustment to public assistance payments is made, corresponding adjustments in household SNAP benefits are handled as a mass change.

2. When there is at least thirty (30) days advance knowledge of the amount of the public assistance adjustment, SNAP benefits must be recalculated to be effective in the same month as the public assistance change.

3. If there is not sufficient notice, the SNAP change must be effective not later than the month following the month in which the public assistance change was made.

4. A notice of adverse action is not required when a household's SNAP benefits are reduced or terminated as a result of a mass change in the public assistance grant. However, the agency sends individual notices to such households to inform them of the change.

a. If a household requests a fair hearing, benefits are continued at the former level only if the issue being appealed is that SNAP eligibility or benefits were improperly computed.

E. Deemed Eligibility Factors

1. The eligibility factors which are deemed for SNAP eligibility without the required verification because of the household's RIW, GPA or SSI status are:

a. The resource limit;

b. The gross and net income limits;

c. Social Security Number information;

d. Sponsored immigrant information; and

e. Residency.

2. The eligibility factors which are deemed for SNAP eligibility without the required verification because of the household's expanded categorical eligibility status due to receipt of a TANF-funded service are:

a. The resource limit;

b. The gross and net income limits.

F. Verification of Questionable Factors

1. If any of the following factors are questionable, the agency must verify that the household which is considered categorically eligible:

a. Contains only members who are RIW, GPA TANF-funded service (TANF Information Publication) or SSI recipients;

b. Meets the household definition (§ 1.2 of this Part);

c. Includes all persons who purchase and prepare food together in one (1) SNAP household regardless of whether or not they are separate units for RIW, GPA or SSI purposes; and

d. Includes no person(s) who has been disqualified from the Supplemental Nutrition Assistance Program.

G. Households Not Categorically Eligible

1. Under no circumstances should any household be considered categorically eligible if any member of that household is disqualified for:

a. An intentional program violation in accordance with § 1.8 of this Part or

b. If head of household fails to comply with the work requirements in § 1.11 of this Part.

2. These households are subject to all SNAP eligibility and benefit provisions.

H. Verification Standards

1. The Department shall verify the following factors for TANF-funded service/expanded categorically eligible households:

a. The household is eligible for the TANF Information Publication by comparing the income of the household to appropriate standards for the SNAP-only TANF-funded Service household.

b. The household contains no individuals disqualified in accordance with §§ 1.9 and 1.11.5 of this Part.

c. The household composition meets the definition of a household in accordance with § 1.2 of this Part.

d. The household meets the verification requirements set forth in § 1.6 of this Part, with the exception of the requirement to verify resource information.

2. The Department shall verify the following factors for households applying for both PA and SNAP benefits.

a. Verification procedures described in § 1.6 of this Part apply to determine the household's eligibility for SNAP benefits.

b. Verification procedures described in PA Rules apply to determine both PA and SNAP eligibility.

c. The agency representative must not delay the household's SNAP benefits if, at the end of thirty (30) days following the date the application was filed, the agency representative has sufficient verification to meet the verification for SNAP purposes but does not have sufficient verification to meet the PA verification Rules.

I. Timeliness Standard

1. In order to determine if a household is categorically eligible due to its status as a recipient RIW/GPA/SSI, the agency may temporarily postpone, within the thirty (30) day processing standard, the SNAP eligibility determination if the household is not entitled to expedited service and appears to be categorically eligible.

a. The agency should postpone denying a potentially categorically eligible household until the thirtieth (30th) day in case the household is determined eligible for RIW, GPA and/or SSI benefits.

b. Once the RIW, GPA and/or SSI application is approved, the household is considered categorically eligible if it meets all the categorically eligible criteria in this Subsection.

2. Action on the SNAP portion of the application must not be delayed, nor may the application be denied on the grounds that the PA determination has not been made.

a. If the agency can anticipate the amount and the date of receipt of the initial PA payment but the payment is not received until a subsequent month, the agency must vary the household's SNAP benefit level according to the anticipated receipt of the payment and so notify the household.

b. The portion of the initial PA payment intended to retroactively cover a previous month is disregarded as a lump sum payment.

c. If the amount or date of receipt of the initial PA payment cannot be reasonably anticipated at the time of the SNAP eligibility determination, the PA payment must be handled as a change in circumstances.

(1) However, the agency is not required to send a notice of adverse action if the receipt of the PA grant reduces, suspends or terminates the household's SNAP benefits, provided the household was notified in advance that its benefits may be reduced, suspended or terminated when the PA grant is received.

J. Persons Not Considered Household Members

1. No person is included as a member in any household that is otherwise categorically eligible if that person is:

a. An ineligible non-citizen as defined in §1.4.2 of this Part;

b. An ineligible student under the provision in §1.2.4 of this Part; or,

c. A person who is institutionalized in a non-exempt facility as defined in §1.2.8 of this Part.

d. A household member that refuses to comply with the work requirements.

(1) For households in receipt of a TANF-funded service, the resources of this household member continue to count in their entirety to the remaining household members.

K. Income Standards for PA Households

1. All income received by the PA household, including the RIW, GPA, or SSI grant, any special allowances, and any other income, is counted in determining the net monthly SNAP income for basis of issuance purposes unless otherwise excludable for SNAP purposes.

2. Exemptions from income allowed under PA for purposes of grant computation are not allowed in determining income for SNAP purposes.

L. SSI/SNAP Joint Application Process

1. Households applying simultaneously for SSI and SNAP must be subject to SNAP eligibility criteria, and benefit levels must be based solely on such criteria until the household is considered categorically eligible.

a. However, households in which all members are either RIW or SSI recipients or are authorized to receive RIW or SSI benefits must be eligible for SNAP based on their RIW/SSI status in accordance with the provisions for categorical eligibility for SNAP benefits.

2. When a household, with an SSI application pending, is denied SNAP benefits as a non-public assistance (NPA) household, it must be informed on the notice of denial of the possibility of categorical eligibility if the person becomes an SSI recipient.

3. The SSA will accept and complete SNAP applications received at the SSA office from SSI households and forward them, within one (1) working day after receipt of a signed application to the SNAP office. SSA must verify those items for which verification can be made at the time of the interview from either SSA records or from documents provided by the applicant.

4. The SSA also refers non-SSI households and those in which not all members have applied for or receive SSI to the SNAP office.

a. Applications from such households are considered filed on the date the signed application is taken at the SNAP office, and the normal and expedited processing time standards begin on that date.

5. The SSA must also screen all applications for entitlement to expedited services on the day the application is received at the SSA office and should mark "Expedited Processing" on the first (1st) page of all applications that appear to be entitled to such service.

a. The SSA informs households which appear to meet the criteria for expedited service that benefits may be issued sooner if the household applies directly at the SNAP office.

6. The household may take the application from SSA to the SNAP office for screening and processing of the application.

7. If SSA takes an SSI application or redetermination on the telephone from a member of a pure SSI household, a SNAP application must also be completed during the telephone interview.

a. In such cases, the SNAP application is mailed to the claimant for signature and for return to either the SSA office or the SNAP office. SSA should forward any SNAP applications it receives to the SNAP office.

8. The SSA sends a notice to SSI recipients redetermined for SSI, by mail, informing them of their right to file a SNAP application at the SSA office (if they are members of a pure SSI household) or at their local SNAP office, and their right to an out-of-office SNAP interview to be performed by an agency representative.

9. SSA distributes an information sheet, provided by the DHS, to all pure SSI households informing such households of the address and telephone number of the household's correct SNAP office; the remaining actions to be taken in the application process; and, a statement that a household should be notified of the SNAP determination within thirty (30) days and can contact the SNAP office if it receives no notification within thirty (30) days, or has other questions or problems.

a. It also includes the client's rights and responsibilities (including fair hearings, authorized representatives, out-of-office interviews, reporting changes and timely reapplication), information on how and where to obtain SNAP benefits, and how to use SNAP benefits (including the commodities clients may purchase with the SNAP benefits).

10. Except for applications taken from residents of public institutions prior to their release, the DHS must make an eligibility determination and issue SNAP benefits to eligible SSI households within thirty (30) days following the date the application was received by the SSA.

a. Applications are considered filed for normal processing purposes when the signed application is received by SSA.

b. The expedited processing time standards begins on the date the DHS receives a SNAP application.

c. The agency must make an eligibility determination and issue SNAP benefits to a resident of a public institution who applies jointly for SSI and SNAP benefits within thirty (30) days following the date of the individual's release from the institution.

(1) Expedited processing time standards for such an applicant must also begin on the date of their release from the institution.

(2) SSA will notify the DHS of the date of the applicant's release.

(3) If, for any reason, DHS is not notified on a timely basis of the applicant's release, the Department must restore lost benefits, in accordance with § 1.18 of this Part, back to the date of release.

d. The DHS should not require pure SSI households to see an agency representative or to have an additional interview.

e. The SNAP application is processed by the DHS. The DHS should not contact the household further in order to obtain information for certification for SNAP benefits, unless:

(1) The application is improperly completed;

(2) Mandatory verification is missing; or,

(3) Certain information on the application is determined to be questionable.

f. In no event would the applicant be required to appear at the DHS office to finalize the eligibility determination.

g. The DHS should screen all applications received from the SSA for entitlement to expedited service on the day the application is received.

(1) All SSI households entitled to expedited service are certified in accordance with procedures explained in §1.3.9 of this Part except that the expedited processing time standard begins on the date the application is received.

11. The DHS should ensure that information required in accordance with § 1.6 of this Part is verified prior to certification for initial application.

a. SSI benefit payments may be verified through information supplied by SSA or through verification provided by the household.

12. In jointly processed cases in which the SSI determination results in denial and the agency representative believes that SNAP eligibility or benefit levels may be affected, the agency representative sends the household a notice of expiration advising that the certification period will expire the end of the month following the month in which the notice is sent and that it must reapply if it wishes to continue to participate.

a. The notice must also explain that its certification period is expiring because of changes in circumstances which may affect SNAP eligibility or benefit levels and that the household is entitled to an out-of-office interview.

13. The agency representative must restore to the household benefits which were lost whenever the loss was caused by an error by the DHS or by the SSA office through joint processing.

a. Such an error includes, but is not limited to, the loss of an applicant's SNAP application after it has been filed with SSA. Lost benefits are restored in accordance with § 1.18 of this Part.

14. A household member who is applying simultaneously for SSI and SNAP benefits has the requirement for work registration waived until:

a. They are determined eligible for SSI and is thereby exempt from work registration or,

b. They are determined ineligible for SSI and, when applicable, a determination of her/his work registration status must then be made through recertification procedures, or through other means.

1.5.2Income

A. Household income means all income from whatever source excluding only the items specified in §1.5.3 of this Part.

1. Earned Income

a. The following types of income are considered earned income:

(1) Wages: All wages and salaries for services performed as an employee, including payments to individuals for providing attendant care services.

(2) Garnishments: Wages earned by a household member that are garnished or diverted by an employer and paid to a third (3rd) party for a household's expenses, such as rent, are considered income.

(AA) However, if the employer pays a household's rent directly to the landlord, in addition to paying the household its regular wages, this rent payment is excluded as a vendor payment.

(BB) In addition, if the employer provides housing to an employee, the value of the housing is not counted as income.

(3) Income from Excluded Household Members: The earned income of an individual excluded from the household for failure to comply with the requirement to provide an SSN, or of an individual determined to be an ineligible alien, must be counted as income, less the pro rata share for the individual.

(4) Income of Individuals Disqualified for Intentional Program Violation (IPV): The earned income of an individual disqualified from the household for an IPV must continue to be attributed in its entirety to the remaining household members. (Refer to §1.5.6(A) of this Part)

(5) Self-Employment: The total gross income from a self-employment enterprise, including the total gain from the sale of any capital goods or equipment related to the business, excluding the costs of doing business.

(AA) Ownership of rental property is considered self-employment. However, income derived from the rental property is considered earned income only if a member of the household is actively engaged in management of the property at least an average of twenty (20) hours per week.

(BB) Payments from a roomer or boarder and returns on rental property are also self-employment income.

(6) Training Allowances: Training allowances from vocational and rehabilitative programs sponsored by Federal, State, or local governments, to the extent they are not a reimbursement, except for allowances received through programs authorized by the Workforce Innovation and Opportunity Act (WIOA) (Pub. Law 113-128) and the Federal Welfare to Work (WTW) Program.

(7) Title I: Certain Payments under Title I (VISTA, University Year for Action (UYA), etc.) of the Domestic Volunteer Service Act of 1973, (Pub. Law 93-113), must be considered earned income and subject to the earned income deduction described in §1.5.7 of this Part and excluding any payments made on behalf of households specified under §1.5.3 of this Part ("Vendor Payments").

(8) WIOA on-the-job-training (OJT): Earnings paid to an individual who is participating in an OJT program under the Workforce Innovation and Opportunity Act.

(AA) This provision does not apply to a household member, who is under nineteen (19) years of age and under the parental control of an adult household member, regardless of school attendance and/or enrollment.

(9) Monies which are legally obligated and otherwise payable to the household, but which are diverted by the provider of the payment to a third (3rd) party for household expenses.

(AA) Such funds include wages earned by a household member and owed to the household. If an employer owes these funds to a household diverts them instead to a third (3rd) party to pay for a household expense, these payments are still counted as income to the household.

(BB) However, if an employer makes payments for household expenses to a third (3rd) party from funds that are not owed to the household, these payments are excluded as vendor payments. (Refer to §1.5.3 of this Part)

b. The term "earned income" does not include any portion of the income earned under a work supplementation or support program that is attributable to public assistance.

2. Unearned Income

a. The following types of income are considered unearned (this list is not inclusive):

(1) Assistance Payments

(AA) Assistance payments from federal or federally aided public assistance programs, such as SSI, RIW, GPA or other assistance programs based on need, are considered to be unearned income even if provided in the form of a vendor payment (provided to a third (3rd) party on behalf of the household), unless the vendor payment is specifically exempt under the provisions of §1.5.3 of this Part.

(BB) Assistance payments from programs which require as a condition of eligibility the actual performance of work without compensation other than the assistance payments themselves are considered unearned income.

(2) Pensions, Social Security

(AA) Include as income annuities, pensions, retirement, Veteran's or disability benefits, Worker's or Unemployment Insurance, Social Security benefits, including the SMI amount, or strike benefits.

(3) Support and Alimony

(AA) Any support or alimony payments made directly to the household from non-household members is counted as income.

(BB) Money deducted or diverted from a court-ordered support of alimony agreement to a third (3rd) party to pay the household's expenses are also included as income to the household.

(CC) However, payments specified by the court order or other legally binding agreement to go directly to the third (3rd) party rather than the household are excluded as vendor payments.

(DD) Support payments not required by a court order or other legally binding agreement (including payments in excess of the amount specified in a court order or written agreement) that are paid to a third (3rd) party rather than the household even if the household agrees to the arrangement are also excluded as a vendor payment.

(EE) Any Child Support Bonus paid to RIW recipients through the Office of Child Support Services (OCSS) must be counted as unearned income for SNAP purposes.

(4) Educational Loans and Grants

(AA) Include as income educational loans on which payment is deferred, scholarships, fellowships, educational grants, veteran's educational benefits and the like in excess of amounts excluded under the provisions in §1.5.3 of this Part.

(BB) Also, educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits and the like which are provided to a third (3rd) party on behalf of a household for living expenses, such as rent or mortgage, clothing, or food eaten at home must be treated as money payable directly to the household (unearned income) and are not excludable as a vendor payment.

(5) Managed Income

(AA) Any or part of a public assistance grant that is diverted to a third (3rd) party or to a protective payee for purposes such as but not limited to, managing a household's expenses, is considered income to the household and not excluded as a vendor payment except as provided in §1.5.3 of this Part.

(BB) Assistance financed by State or local funds (GPA) which is provided over and above the normal RIW or GPA payment or is not normally provided as part of such payment, is considered emergency or special assistance and is excluded if provided to a third (3rd) party on behalf of the household.

(6) Garnishments

(AA) When a household member earns wages and the wages are garnished or diverted by the employer and paid to a third (3rd) party for a household expense, such as rent, this vendor payment is counted as income.

(BB) However, if the employer pays a household's rent directly to the landlord in addition to paying the household its regular wages, the rent payment shall be excluded as income.

(7) Grants, Interest Payments

(AA) Include as income payments from government-sponsored programs, dividends, interest, royalties, and all other direct money payments from any source which can be construed to be a gain or benefit.

(8) Income from Excluded Household Members

(AA) The unearned income of an individual excluded from the household for failure to comply with the requirement to provide an SSN, or of an individual determined to be an ineligible alien, must be counted as income, less the pro rata share for the individual. (Refer to §1.5.6 of this Part)

(9) Certain Rental Income

(AA) Include as income the gross income, minus the cost of doing business, derived from rental property if a household member is not actively engaged in management of the property at least twenty (20) hours a week.

(10) Certain "Vendor" Payments

(AA) Include as income monies which are legally obligated and otherwise payable to the household, but which are diverted by the provider of the payment to a third (3rd) party for household expenses, are counted as income and not excluded as a vendor payment.

(BB) The distinction is whether the person or organization making the payment on behalf of a household is using funds that are otherwise payable to the household.

(i) Such funds include a public assistance grant to which a household is legally entitled, and support or alimony payments in amounts which legally must be paid to a household member.

(ii) If an agency, or former spouse who owes these funds to a household diverts them instead to a third (3rd) party to pay for a household expense, these payments are still counted as income to the household. However, if agency, former spouse or other person makes payments for household expenses to a third (3rd) party from funds that are not owed to the household, these payments are excluded as vendor payments. (Refer to §1.5.3 of this Part)

(11) Trust Withdrawals

(AA) Include as income monies that are withdrawn or dividends that are or could be received by a household from trust funds considered to be excludable resources, in accordance with §1.5.5 of this Part.

(BB) Such trust withdrawals must be considered income in the month received, unless otherwise exempt under the provisions of §1.5.3 of this Part.

(CC) Dividends that the household has the option of either receiving as income or reinvesting in the trust are considered as income in the month they become available to the household, unless otherwise exempt.

(12) Deemed Income from an Alien's Sponsor

(AA) The income and resources of a legal permanent resident's sponsor (and the sponsor's spouse) who has signed a legally binding affidavit of support on or after December 17, 1997 are required to be counted as belonging to the immigrant (or deemed), regardless of actual availability, when determining the sponsored immigrant's eligibility and benefit amount for SNAP benefits unless the immigrant is exempted from sponsorship deeming. §1.5.8 of this Part outlines exemptions from sponsor deeming.

(BB) If the immigrant is categorically eligible due to receipt of a TANF-funded service/publication, the resources of the immigrant's sponsor (and the sponsor's spouse) are not counted when determining eligibility for SNAP benefits.

(CC) See §1.5.8 of this Part for instructions for calculating the amounts of income and resources to be deemed.

(DD) If the sponsor signs an affidavit of support for more than one (1) immigrant, the sponsor's income is prorated among the sponsored immigrants.

(EE) Actual money paid to the immigrant by the sponsor or the sponsor's spouse is not considered income to the alien unless the amount paid exceeds the amount attributed (deemed).

(i) In such case, the amount paid that actually exceeded the amount deemed would be considered income to the non-citizen in addition to the amount deemed to the non-citizen.

(13) Income of Individuals Disqualified for an IPV

(AA) The unearned income of an individual disqualified from the household for an intentional program violation must continue to be attributed in its entirety to the remaining household members. (Refer to §1.5.6 of this Part)

(14) Foster Care Payments

(AA) Include as income foster care and/or guardianship payments for children or adults who are considered members of the SNAP household (see §1.2.6 of this Part for provisions regarding including boarders in the household providing the board).

(15) Substantial Lottery and Gambling Winnings

(AA) A cash prize won in a single game, before taxes or other amounts are withheld, which is equal to or greater than the resource limit for elderly or disabled households as defined in §1.5.5 of this Part.

(i) Any household certified for SNAP benefits that receives substantial lottery or gambling winnings must lose eligibility for benefits immediately upon receipt of winnings.

(ii) Households shall remain ineligible until they meet the allowable financial income and resource eligibility requirements as defined in §§1.5.2 and 1.5.5 of this Part, respectively.

B. Expenses Exceeding Income

1. A household's report of expenses which exceed its income are grounds for a determination that further verification is required. However, this circumstance is not, in and of itself, grounds for a denial.

a. The agency representative, instead, explores with the household how it is managing its finances, whether the household receives excluded income or has resources, and how long the household has managed under these circumstances.

C. Averaging Educational Assistance. A household that receives a scholarship, deferred education loan, or other educational grants, has such income, after exclusions, averaged over the period for which it was provided.

1.5.3Excluded Income

A. In the Food and Nutrition Act of 2008 (as amended though Pub. Law 116-94), Congress has specified the types of income which are excluded for SNAP purposes. Only the types of income listed in this Section are excluded from household income, and no other income is excluded.

1. In-Kind Income

a. Any gain or benefit, not in the form of money, payable directly to the household such as non-monetary or in-kind benefits. For example, meals, clothing, public housing, or produce from a garden.

2. Vendor Payments

a. A payment made in money on behalf of a household is considered a vendor payment whenever a person or organization outside the household uses its own funds to make a direct payment to either a household's creditors or a person or organization providing a service to the household.

b. The following types of payments may be excluded as vendor payments:

(1) An employer pays a household's rent directly to the landlord in addition to paying the household regular wages;

(2) An employer provides free housing to an employee;

(3) A RIW, SSI, or GPA payment which is not made directly to the household, but paid to a third (3rd) party on behalf of the household to pay a household expense, are vendor payments and not counted as income to the household if such payment is for:

(AA) Medicaid;

(BB) Child care assistance;

(CC) A payment or allowance as described in §1.5.3(A)(18) of this Part;

(DD) Assistance provided by a State or local housing authority;

(EE) Emergency assistance for migrant or seasonal farmworker households during the time the household is in the job stream (this assistance may include, but is not limited to, emergency vendor payments for housing or transportation); or

(FF) Housing assistance made to a third (3rd) party on behalf of the household residing in transitional housing for the homeless.

3. Energy Assistance Payments

a. Any payments or allowances made for the purpose of providing energy assistance under any Federal law other than Part A of Title IV of the Social Security Act, 42 U.S.C. § 601et seq., including utility reimbursements made by the Department of Housing and Urban Development and the Rural Housing Service, or

b. A one (1) time payment or allowance applied for on an as-needed basis and made under a Federal or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device. A downpayment followed by a final payment upon completion of the work will be considered a one (1) time payment for purposes of this provision.

4. Housing and Urban Development (HUD) Vendor Payments

a. Rent or mortgage payments paid to a landlord or mortgagee by the HUD, State or local housing authorities are vendor payments and are excluded.

b. HUD Community Development Block Grant Funds used for rehabilitation of the individual's residence are also excluded as vendor payments.

5. Grants, Support or Alimony Payments

a. If an employer, agency, former spouse or other person makes payments for household expenses to a third (3rd) party from funds not owed to the household, these payments are excluded as vendor payments.

b. Payments specified by a court order or other legally binding agreement to go directly to the third (3rd) party rather than to the household and support payments not required by a court order or other legally binding agreement (including payments in excess of the amount specified in a court order or written agreement) which are paid to a third (3rd) party rather than the household, are excluded as a vendor payment, even if the household agrees to the arrangement.

6. Child Care Payments

a. Payments by a government agency to a child care institution to provide child care for a household member are excluded as vendor payments.

7. Child Support Income Exclusion

a. Legally obligated child support payments made by a household member to or for a non-household member are an income exclusion.

b. Allowable payments include those child support payments made to a third (3rd) party on behalf of the non-household member (vendor payments).

c. Payments toward a current arrearage order(s) also count toward this exclusion.

d. Any child support payments made in excess of the amount a household member is legally obligated to pay are not allowable as an exclusion.

8. Income Excluded by Law

a. Student financial assistance received under Title IV of the Higher Education Act of 1965 (Pub. Law 105-244), or under Bureau of Indian Affairs student assistance programs, shall not be counted in the determination of eligibility of any person for benefits or assistance, or the amount of such benefits or assistance, under any Federal, State, or local program financed in whole or in part with Federal funds.

(1) Educational assistance authorized under Title IV of the Higher Education Act of 1965, includes the following:

(AA) Basic Educational Opportunity Grants (BEOG or Pell Grants);

(BB) Presidential Access Scholarships (Super Pell Grants);

(CC) Federal Supplemental Educational Opportunity Grants (FSEOG);

(DD) State Student Incentive Grants (SSIG);

(EE) Robert C. Byrd Honors Scholarship Program;

(FF) Federal or State Work Study income wholly or partially funded by Title IV of the Higher Education Act of 1965 (Pub. Law 105-244). (Note: Not all Federal work study funds come under Title IV of the Higher Education Act of 1965. Education assistance that is not funded under Title IV may still be excluded as income if it is used or will be used for paying tuition, fees, or other necessary education expenses at any educational institution);

(GG) Federal Family Education Loan Program (Formerly GSL):

(i) Supplemental Loans for students,

(ii) PLUS loans for parents,

(iii) Robert T. Stafford Student Loans;

(iv) Federal Perkins Loan Program - Direct loans to students in institutions of higher education (Perkins Loans, formerly NDSL);

(v) TRIO Grants (Go to organizations or institutions for students from disadvantaged backgrounds);

(vi) Robert C. Byrd Honors Scholarship Program;

(vii) High School Equivalency Program; and

(viii) National Early Intervention Scholarship and Partnership Program.

b. Under Titles I and II of the Domestic Volunteer Services Act of 1973 (Pub. Law 93-113), payments under Title I of that Act (including payments for such Title I programs as VISTA, University Year for Action, and Urban Crime Prevention Program) to volunteers must be excluded for those individuals receiving SNAP benefits or public assistance at the time they joined the Title I program, except that households which were receiving an income exclusion for a VISTA or other Title I subsistence allowance at the time of conversion to the Food Stamp Act of 1977 (Pub. Law 88-525 a) must continue to receive an income exclusion for VISTA for the length of their volunteer contract in effect at the time of conversion.

(1) Temporary interruptions in SNAP participation do not alter the exclusion once an initial determination has been made.

(2) New applicants who were not receiving public assistance or SNAP benefits at the time they joined VISTA shall have these volunteer payments included as earned income.

c. Payments under Title II including the Retired Senior Volunteer Program (RSVP), Foster Grandparents, and Senior Companion Program are also excluded.

d. Income received by individuals age fifty-five (55) and older, under the Senior Community Service Employment Program (SCSEP) authorized under the Title V of the Older Americans Act (OAA) of 1965 (Pub. Law 89-73).

(1) These funds are excluded by Pub. Law 100-175 as income for SNAP purposes.

e. The Workforce Innovation and Opportunity Act (WIOA)

(1) Training allowances paid to individuals participating in programs under WIOA are excluded as income with the exception of earnings paid to an individual age nineteen (19) or over, participating in an on-the-job training program.

(2) Earnings include monies paid under the WIOA and monies paid by the employer.

(3) The National and Community Service Act (NCSA) of 1990, Pub. Law 101-610 §117(d), provides that §142(b) of the WIOA applies to projects conducted under Title I of the National and Community Services Act of 1990 as if such projects were conducted under the WIOA.

(AA) Title I includes three (3) Acts:

(i) Serve-America: The Community Service, Schools and Service-Learning Act of 1990, Pub. Law 101-610 §110et seq.;

(ii) The American Conservation and Youth Service Corps Act of 1990, Pub. Law 101-610 §120et seq.; and

(iii) The National and Community Service Act, Pub. Law 101-610.

(BB) Most payments are made as a weekly stipend or for educational assistance.

(CC) The Higher-Education Service-Learning program and the AmeriCorps umbrella program come under this Title.

(DD) The National Civilian Community Corps (NCCC) is a federally managed AmeriCorps program.

f. Under The Omnibus Budget Reconciliation Act of 1990 (Pub. Law 101-508), Federal earned income tax credit (EITC) payments received either as a lump sum payment or an advance payment included as part of the paycheck (or as a reduction in taxes that would otherwise have been paid at the end of the year);

g. Payments made under the Low-Income Home Energy Assistance Act, 42 U.S.C. § 8621, in determining any excess shelter deduction, the full amount of such payments shall be deemed to be expended by the recipient household for heating or cooling costs.

h. Under provisions of the Child Nutrition Act, 42 U.S.C. § 1771et seq., the value of assistance to children under the Child Nutrition Act.

i. As provided in Pub. Law 100-435, under the Women, Infants, and Children (WIC) demonstration projects, coupons which can be exchanged for food at farmers' markets;

j. Certain child care payments:

(1) Under Pub. Law 100-485, the value of any child care payments made under Title IV-A, including transitional child care payments are excluded;

(2) "At-risk" block grant child care payments made under Pub. Law 101-508 §5801; no deduction may be allowed for any expense covered by such payments;

(3) Under Pub. Law 102-586, the value of any child care provided or any reimbursement for costs incurred under the Child Care and Development Block Grant is excluded from income from any other federal or federally assisted program in which eligibility, or amount of benefits, is based on need.

k. Certain military payments:

(1) The mandatory salary reduction amount for military service personnel that is used to fund the G.I. Bill;

(2) Payments made under the provisions of Wartime Relocation of Civilians, Pub. Law 100-383, entitled to certain United States citizens of Japanese ancestry, resident Japanese aliens and certain eligible Aleuts (natives of the Aleutian Islands).

(3) Under Pub. Law 110-246, combat-related military pay is excluded from consideration as income when determining SNAP eligibility and benefit levels if the additional pay is the result of deployment to or service in a combat zone and was not received immediately prior to serving in a combat zone.

(4) Any monetary allowances paid by the Veterans Administration under Pub. Law 104-204 §1805(d), to a child of a Vietnam veteran for any disability resulting from Spina Bifida suffered by such child.

(5) Any monetary allowances paid by the Veterans Administration under Pub. Law 106-419 §1815(a), to any individual with one (1) or more covered birth defects if he or she is a child of a female Vietnam veteran.

l. All payments from the Agent Orange Settlement fund or any other fund established pursuant to the settlement in the Agent Orange product liability litigation retroactive to January 1, 1989.

(1) The disabled veteran will receive yearly payments; survivors of the deceased disabled veterans will receive a lump-sum payment.

(2) These payments were disbursed by the Aetna Insurance Company.

(3) Note: Veterans' benefits were authorized under provisions of the Agent Orange Act of 1991, Pub. Law 102-4, to some veterans with service-connected disabilities resulting from exposure to Agent Orange. These VA payments are not excluded by law.

(4) Pub. Law 101-239 also excluded payments made from the Agent Orange settlement fund or any other fund established pursuant to the settlement in the case of In re Agent Orange Product Liability Litigation in the United States District Court for the Eastern District of New York (Multi-District Litigation No. 381 (Pub. Law 101-201, 103 Stat. 1795).

m. Utility reimbursements made by HUD directly to the household or via a two (2) party check payable to both the household and the utility provider are excluded from income and are not allowable shelter costs.

n. Under Pub. Law 103-322 §30202, an amended section of the Crime Act of 1984, 42 U.S.C. § 10602, compensation paid by an eligible crime victim compensation program is excluded as income to the household.

o. Under the Disaster Relief Act of 1974, Pub. Law 93-288 §312(d), payments precipitated by an emergency or major disaster as defined in the Act, as amended;

(1) This exclusion applies to Federal assistance provided to persons directly affected and to comparable disaster assistance provided by States, local governments, and disaster relief organizations.

(2) A major disaster is any natural catastrophe such as a hurricane or drought, or regardless of cause, any fire, flood, or explosion, which the President determines causes damage of sufficient severity and magnitude to warrant major disaster assistance to supplement the efforts and available resources of States, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby.

(3) An emergency is any occasion or instance for which the President determines that Federal assistance is needed to supplant State and local efforts and capabilities to save lives, and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe.

(4) Most Federal Emergency Management Assistance (FEMA) funds are excluded; however, some payments made to homeless people to pay for rent, mortgage, food, and utility assistance when there is no major disaster or emergency is not excluded under this provision.

p. Funds paid under the Radiation Exposure Compensation Act, Pub. Law 101-426 § 6(h)(2),

q. Certain Native American/American Indian tribal payments:

(1) Payments received under the Alaska Native Claims Settlement Act, Pub. Law 92-203 §29;

(2) Payments of relocation assistance to members of the Navajo and Hopi Tribes under Pub. Law 93-531.

(3) Income derived from certain sub marginal land of the United States that is held in trust for certain Indian tribes under Pub. Law 94-114;

(4) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians under Pub. Law 94-540;

(5) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation under Pub. Law 95-433;

(6) Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980, Pub. Law 96-420 § 9(c);

(7) Payments to the Turtle Mountain Band of Chippewas, Arizona under Pub. Law 97-403;

(8) Payments to the Blackfeet, Gros Ventre, and Assiniboine tribes, Montana and the Papago, Arizona under Pub. Law 97-408;

(9) Per capita and interest payments under Pub. Law 98-123 made to the Red Lake Band of Chippewas;

(10) Per capita and interest payments under Pub. Law 98-124 to the Assiniboine tribe of the Fort Belknap Indian Community and the Assiniboine Tribe of the Fort Peck Indian Reservation, Montana;

(11) Payments under the Old Age Assistance Claims Settlement Act, Pub. Law 98-500 § 8, made to heirs of deceased Indians except for per capita shares in excess of two thousand dollars ($2,000.00);

(12) Funds distributed for members of the Chippewas of Lake Superior under Pub. Law 99-146 § 6(b);

(13) Moneys paid pursuant to the White Earth Reservation Land Settlement Act of 1985, Pub. Law 99-264;

(14) Disbursements made under Pub. Law 99-346 to the Saginaw Chippewa Indian Tribe of Michigan; and

(15) Per capita payments to the Chippewas of Mississippi under Pub. Law 99-377.

(16) The Puyallup Tribe of Indians Settlement Act, Pub. Law 101-41, provides that none of the funds, assets, or income from the trust fund established in § 6(b) shall at any time be used as a basis for denying or reducing funds to the Tribe under any Federal, State, or local program.

(17) The Seneca Nation Settlement Act, Pub. Law 101-503, provides that none of the payments, funds, or distributions authorized, established, or directed by this Act, and none of the income therefrom, shall affect the eligibility of the Seneca Nation or its members or be used as a basis for denying or reducing funds under any Federal program.

9. Reimbursements

a. Reimbursements are excluded as income for past or future expenses to the extent they do not exceed actual expenses and do not represent a gain or benefit to the household.

b. Reimbursements for normal living expenses of the household are not excluded.

c. To be excluded, such payments must be provided specifically for an identified expense, other than normal living expenses, and used for the purpose intended.

d. Payments made to a disabled household member for attendant care services are considered to be reimbursements for expenses and are excludable income.

(1) If attendant care services are provided by a household member, the payment for these services is considered earned income of the care giver.

e. When a reimbursement, including a flat allowance, covers multiple expenses, each expense does not have to be separately identified as long as none of the reimbursement covers normal living expenses. (Reimbursements for normal living expenses are not excluded.)

f. The amount by which a reimbursement exceeds the actual incurred expense must be counted as income. However, reimbursements are not considered to exceed actual expenses, unless the provider or the household indicates the amount is excessive.

g. The following are considered excludable reimbursements:

(1) Reimbursements or flat allowances for job or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site.

(AA) Reimbursements which are provided over and above basic wages for these expenses are excluded.

(BB) However, these expenses, if not reimbursed, are not otherwise deductible.

(2) Reimbursements for the travel expenses of migrant workers.

(3) Reimbursements for out-of-pocket expenses of volunteers incurred in the course of their work.

(4) Medical or dependent care reimbursements, including payments made to a disabled individual for attendant care.

(5) Non-federal reimbursements or allowances to students for specific educational expenses, such as travel or books, but not allowances for normal living expenses such as food, rent, or clothing.

(AA) Portions of a general grant or scholarship must be specifically earmarked by the grantor for education expenses rather than for living expenses to be excluded as a reimbursement.

(6) Reimbursements received by households to pay for services provided by the Social Services Block Grant.

(7) Reimbursements for per diem transportation allowances under the SNAP E&T or RIW education and supervised job search and training components.

h. The following are not considered to be excludable reimbursements under this provision:

(1) No portion of any Federal educational grant, scholarship, fellowship, veterans' benefit and the like to the extent it provides income assistance beyond that used for tuition and mandatory school fees, is considered excludable under this provision.

(AA) This provision does not apply to educational assistance provided by a program funded in whole or in part under Title IV of the Higher Education Act of 1965 (Pub. Law 105-244) or the Carl D. Perkins Career and Technical l Education Act of 2006 (as amended through Pub. Law 115-224).

(2) No portion of any non-Federal, i.e., State, local, or private educational grant, scholarship, fellowship, veterans' benefit and the like that is provided for living expenses is considered excludable under this provision.

(AA) Thus, to be excludable, such assistance must be specifically earmarked by the grantor for education expenses, such as travel or books, but not for living expenses, such as food, rent, or clothing.

10. Educational Assistance

a. Exclude as income any educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits and the like to the extent that they are used for or made available (i.e., earmarked) by a school, institution, program, or other grantor for tuition and mandatory fees, books, supplies, transportation, and miscellaneous personal expenses (other than living expenses) of the student incidental to attending the school, institution, or program.

b. If the educational assistance is provided by a program funded in whole or in part under the Carl D. Perkins Career and Technical Education Act (as amended through Pub. Law 115-224).

c. The student must be enrolled at a recognized institution of post-secondary education, at a school for the handicapped, in a vocational education program, or in a program that provides for completion of a secondary school diploma or obtaining the equivalent thereof.

(1) For the purpose of this provision, "institution of post-secondary education" means any public or private educational institution which either normally requires for enrollment of a high school diploma or equivalency certificate or admits persons who are beyond the age of compulsory school attendance (age sixteen (16) in Rhode Island) without a high school diploma.

(2) The institution must be legally authorized and recognized by the State to provide an educational program of training to prepare students for gainful employment.

d. Educational assistance is excluded based on the amounts earmarked by the institution, school, program, or other grantor as made available for the specific costs of tuition, mandatory fees, books, supplies, transportation, and miscellaneous personal expenses (other than living expenses).

(1) If the institution, school, program, or other grantor does not earmark amounts made available for the allowable costs involved, the student may verify the use of the educational assistance for allowable costs and thus receive an exclusion.

(2) Students may also provide verification of amounts used for allowable costs in excess of the amounts earmarked by the school or grantor to obtain an exclusion.

(3) However, excludable expenses claimed by the student must not exceed the amount of the educational assistance.

e. Origination fees and insurance premiums on student loans are excludable charges.

(1) Only the amount of the loan after these charges have been excluded is to be considered income.

11. Mandatory Fees

a. Mandatory fees encompass those charges to students including the rental or purchase of any equipment, materials, and supplies which are related to the pursuit of the course of study involved.

b. For example, uniforms, lab fees, or equipment charged to students in order to enroll in a chemistry course would be excluded. However, transportation, supplies, and textbook expenses are not uniformly charged to students and, therefore, would not be excluded as mandatory fees.

c. Tuition and mandatory fees paid from earnings, resources, or any source other than grants, deferred loans, etc. are not excluded.

12. Financial Aid under the Carl D. Perkins Act

a. Financial assistance, such as grants, loans, reimbursements or allowances, under the Carl D. Perkins Career and Technical Education Act (as amended through Pub. Law 115-224), must be for tuition, mandatory school fees, books, supplies, transportation, and miscellaneous personal expenses with the additional exclusion of payments made for dependent care expenses;

(1) Room and board expenses are not excluded under the Carl D. Perkins Act (V), (as amended though Pub. Law 115-224).

b. In order to qualify for this exclusion, the student must be attending an institution of post-secondary education on at least a half-time basis and be eligible to participate in the SNAP in accordance with the student eligibility requirements in §1.11.1(A)(9) of this Part.

c. The student is responsible for providing the agency with information to verify that:

(1) The institution considers the student to be attending the institution on at least a half-time basis;

(2) The educational assistance received is from a program funded in whole or in part under the Carl D. Perkins Act (V).

d. For financial assistance awarded under the Carl D. Perkins Act (V), exclude the amounts claimed for tuition, mandatory school fees, books, supplies, transportation, and miscellaneous personal expenses that are related to the cost of attendance at the educational institution.

e. Dependent care expenses are also considered excludable.

f. Excludable expenses claimed by the student must not exceed the value of the total amount of educational assistance granted from the Carl D. Perkins Career and Technical Education Act.

13. Monies Received for Third Parties

a. Exclude as income monies which are received and used for the care and maintenance of a third (3rd) party beneficiary who is not a household member.

b. If the intended beneficiaries of a single payment are both household and non-household members, any identifiable portion of the payment intended and used for the care and maintenance of the non-household member is excluded. If the non-household member's portion cannot be readily identified, the payment is pro-rated among intended beneficiaries and the exclusion applied to the non-household member's pro rata share or the amount actually used for the non-household member's care and maintenance, whichever is less.

14. Earnings of Children

a. Disregard the earned income of children who are members of the household if they are elementary or high school students at least half-time and are not yet eighteen (18) years of age.

b. Their income is also excluded during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment will resume following the break.

c. If the child's earnings or the amount of work performed cannot be differentiated from that of the other household members, the total earnings must be pro-rated equally among the working members and the child's pro rata share excluded.

d. Individuals are considered children for this exclusion if they are under eighteen (18) and under the parental control of another household member.

15. Cash Donations

a. Cash donations, based on need, which a household receives from one (1) or more private, nonprofit charitable organizations, are excluded as income.

b. This exclusion cannot exceed three hundred dollars ($300.00) in a quarter. For purposes of this exclusion, a quarter is defined as the Federal fiscal year quarters as follows:

(1) October, November, December - 1st quarter

(2) January, February, March - 2nd quarter

(3) April, May, June - 3rd quarter

(4) July, August, September - 4th quarter

16. Loans

a. All loans on which repayment is deferred, including loans from private individuals as well as commercial institutions and reverse mortgages, other than educational loans, are excluded as income for SNAP purposes.

b. Federal deferred payment educational loans, to the extent that they provide income assistance beyond that used for tuition and mandatory fees, are not excludable under this provision.

c. If the deferred educational loan is provided by a program funded in whole or in part under Title IV of the Higher Education Act of 1965 (Pub. Law 105-244).

d. Portions of non-Federal (State, local or private) deferred payment educational loans are excludable under this provision only to the extent that the lender specifically earmarks portions or all of such loan to provide for educational expenses such as travel or books, but not for living expenses such as rent, mortgage, personal clothing or food eaten at home.

17. Irregular Income

a. Any income in the certification period which is received too infrequently or irregularly to be reasonably anticipated but not in excess of thirty dollars ($30.00) in a quarter, is excluded as income for SNAP purposes.

18. Nonrecurring Lump Sum Payments

a. Exclude as income money received in the form of a nonrecurring lump sum payment, including but not limited to, income tax refunds, rebates or credits; retroactive lump sum social security, SSI, public assistance, railroad retirement benefits or other payments; lump sum insurance settlements; lump sum lottery winnings; or refunds of security deposits on rental property or utilities.

b. These payments are counted as resources in the month received unless specifically excluded from consideration as a resource by other Federal laws.

19. Costs of Self-Employment

a. Exclude as income the cost of producing self-employment income.

20. Income of Non-Household Members

a. The income of a non-household member (defined in §1.2.4 of this Part), is not considered available to the household.

21. Energy Assistance

a. Any payments or allowances made for the purpose of providing energy assistance under any Federal law (other than Part A of Title IV of the Social Security Act, 42 U.S.C. § 601et seq.), or a one-time payment or allowance made under a Federal or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device are excluded.

22. Payments Which Are Not Considered Income

a. Exclude as income monies withheld from an assistance payment, earned income, or other income source, or monies received from any income source which are voluntarily or involuntarily returned to repay a prior over issuance received from that income source, provided that the over issuance is not excluded under another paragraph in this Subsection.

b. However, monies withheld from an assistance program, for purposes of recouping from a household an over issuance which resulted from the household's intentional failure to comply with that program's requirements, must be included as income.

23. Child Support Payments

a. Exclude as income child support payments received by RIW recipients which must be transferred to the Child Support Agency to maintain RIW eligibility.

24. Foster Care - Guardianship Payments

a. Exclude as income for the household, foster care and/or guardianship payments for children or adults for whom the household provides care, unless the household elects to include the foster child or adult as a member of the SNAP household.

25. PASS Accounts

a. Exclude as income amounts necessary for the fulfillment of a Plan to Achieve Self-Support (PASS) of a household member under Title XVI of the Social Security Act.

1.5.4Households with Income from Self-Employment

A. Income from Rental Property

1. Income derived from rental property is considered earned income for the twenty percent (20%) earned income deduction only if a member of the household is actively engaged in the management of the property at least an average of twenty (20) hours per week.

2. Regardless, the cost of doing business is deducted from rental property. If the twenty (20) hours per week criterion is not met, the net income is considered unearned.

B. Capital Gains

1. The proceeds from the sale of capital goods or equipment are calculated in the same manner as a capital gain for Federal income tax purposes.

2. Even if only fifty percent (50%) of the proceeds from the sale of capital goods or equipment is taxed for Federal income tax purposes, the agency representative must count the full amount of the capital gain as income for SNAP purposes.

C. Costs of Producing Self-Employment Income

1. Allowable costs of producing self-employment income include, but are not limited to:

a. Payment on the principal of the purchase price of income producing real estate and capital assets, equipment, machinery and other durable goods;

b. The identifiable costs of labor, stock, raw material, seed and fertilizer;

c. Interest paid to purchase income-producing property;

d. Insurance premiums, and taxes paid on income-producing property.

2. The following items are not allowable costs of doing business:

a. Net losses from previous periods;

b. Federal, State, and local income taxes;

c. Money set aside for retirement purposes, and other work-related personal expenses (such as transportation to and from work), as these expenses are accounted for by the twenty percent (20%) earned income deduction;

d. Depreciation; and

e. Any amount that exceeds the payment a household receives from a boarder for lodging and meals.

D. Averaging Self-Employment Income

1. Self-employment income which represents a household's annual support, is annualized over a twelve (12) month period, even if the income is received in only a short period of time during the twelve (12) months.

2. However, if the average annualized amount does not accurately reflect the household's circumstances because the household has experienced a substantial increase or decrease in business, the agency must calculate the self-employment income on anticipated earnings.

3. The agency must not calculate self-employment income on the basis of prior income (e.g., income tax return) when the household has experienced a substantial increase or decrease in business.

4. For the period of time over which self-employment is determined, the agency representative adds all gross self-employment income (including capital gains), excludes the cost of producing the self-employment income, and divides the self-employment income by the number of months over which the income will be averaged.

5. If, however, the averaged amount does not accurately reflect the household's actual circumstances because the household has experienced a substantial increase or decrease in business, the agency representative calculates the self-employment income based on anticipated earnings.

6. For those households whose self-employment income is not averaged but is instead calculated on an anticipated basis, the agency representative adds any capital gains the household anticipates it will receive in the next twelve (12) months (starting with the date the application is filed) and divides this amount by twelve (12).

a. This amount is used in successive certification periods during the next twelve (12) months, except that a new average monthly amount is calculated over this twelve (12) month period if the anticipated amount of capital gains changes.

b. The agency representative then adds the anticipated monthly amount of capital gains to be anticipated monthly self-employment income and subtracts the cost of producing the self-employment income.

c. The cost of producing the self-employment income is calculated by anticipating the monthly allowable costs of producing the self-employment income.

E. Monthly Income from Self-Employment

1. If it is determined that a household is eligible based on its monthly net income, the household may have the option to have its benefit level determined by using either the same net income which was used to determine eligibility, or by unevenly pro-rating the household's total net income over the period for which the household's self-employment income was averaged to more closely approximate the time when the income is actually received.

a. If income is pro-rated, the net income assigned in any month cannot exceed the maximum monthly income eligibility standards for the household's size.

b. If the cost of producing self-employment farm income exceeds the income which is derived from self-employment as a farmer, such losses must be offset against any other countable income in the household.

(1) Losses from self-employment farm income are offset in two (2) phases:

(AA) The first (1st) phase is to offset losses against non farm self-employment income.

(BB) The second (2nd) phase is to offset the remaining losses against the total of the household's earned and unearned income.

(i) To be considered a self-employed farmer, eligible for this offset of expenses, the farmer must receive or anticipate receiving annual gross proceeds of one thousand dollars ($1,000.00) or more from the farming enterprise.

F. Determining Net Monthly SNAP Income

1. To determine the monthly SNAP income for households with income from self-employment enterprises, the monthly net self-employment income is added to any other earned income received by the household.

2. The total monthly earned income, less the twenty percent (20%) earned income deduction, is then added to all other monthly income received by the household.

3. The standard deduction, dependent care and shelter costs are computed as for any other household and subtracted to determine the monthly net income of the household.

G. Households with Boarders

1. A household that operates commercial boarding houses are considered self-employed and the criteria in §1.11.2 of this Part apply.

2. Households with boarders are allowed to deduct the cost of doing business.

3. A person paying a reasonable amount for room and board, as discussed in §1.2.6 of this Part, is excluded from the household when determining the household's eligibility and benefit level.

4. Payments from that boarder are treated as self-employment income.

5. Cost of Doing Business

a. After determining the income received from a boarder, the agency representative excludes that portion of the boarder payment which is a cost of doing business.

b. The cost of doing business is equal to one (1) of the following provided that the amount allowed as the cost of doing business does 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 is equal to 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 board to the boarder are excluded.

6. Deductible Expenses

a. The net income from self-employment is added to other earned income and the twenty percent (20%) earned income deduction is applied to the total.

b. Shelter costs which the household actually incurs, even if the boarder contributes to the household for part of the household's shelter expenses, is computed to determine if the household receives a shelter deduction.

(1) However, the shelter costs must not include any shelter expenses paid directly by the boarder to a third (3rd) party, such as to the landlord or utility company.

H. Work Registration

1. The receipt of income from self-employment does not automatically exempt a member from the work registration requirement.

2. The member must be actively engaged in the enterprise on a day-to-day basis and the agency representative must determine that the self-employment enterprise either requires at least thirty (30) hours of work per week during the period of certification or an average of thirty (30) hours per week on an annual basis or, if not working thirty (30) hours per week, is receiving weekly earnings at least equal to the Federal minimum wage multiplied by thirty (30) hours.

3. In instances when the member hires or contracts for another person or firm to handle the daily activities of such enterprise, the member is not considered as self-employed for the purpose of work registration unless the person works in such activity at least thirty (30) hours per week.

1.5.5Resources

A. The Food and Nutrition Act of 2008 (Pub. Law 116-94) requires that participation be "limited to those households whose income and other financial resources, held singly or in joint ownership, are determined to be a substantial limiting factor in permitting them to obtain a more nutritious diet." The standards are established by law and apply to all households applying for Program benefits.

1. With the exception of categorically eligible households defined in §1.5.1 of this Part, a household must report at the time of application all resources and potential resources expected during the certification period so that the value and the treatment of the resources for all eligible and ineligible household members can be determined.

2. Available resources at the time the household is interviewed are used to determine the household's eligibility.

B. Resource Eligibility Standards

1. Eligibility must be denied or discontinued if the value of non-exempt resources, both liquid and non-liquid assets, for the household exceeds either:

a. Four thousand two hundred fifty dollars ($4,250.00), for all households that consist of, or include, at least one (1) member who is disabled or sixty (60) years of age or over; or

b. Two thousand seven hundred fifty dollars ($2,750.00), for all other households.

2. These resource standards are to be applied to all applicant households, including those in which some members are recipients of PA with the exception of the following:

a. In a mixed household, i.e., a household comprised of some members receiving SSI or RIW cash assistance and some not receiving SSI or RIW cash assistance, all resources of the SSI/RIW recipient(s) are categorically excluded. The resource standards are applied to the remaining household members.

b. Households in which all members receive SSI, RIW, a TANF-funded service or GPA and which are categorically eligible as defined in §1.5.1 of this Part, do not have to meet the resource limits or definitions in this Part.

C. Verification of Resources

1. Documentary evidence is used as the primary source of verification, although collateral contacts may also be sources of verification if written verification is unavailable.

D. Exempt Resources

1. In determining the resources of a household, only the following types, are exempted:

a. Resources of RIW/SSI Recipients

(1) The resources of any household member who receives SSI or who receives benefits under Part A of Title IV of the Social Security Act, 42 U.S.C. Chapter 7, (RIW) shall be considered exempt for SNAP purposes.

(2) This applies whether or not the household receives SNAP benefits as categorically eligible.

b. Home and Lot

(1) The home and surrounding property which is not separated from the home by intervening property owned by others.

(2) Public rights of way, such as roads, which run through the surrounding property and separate it from the home, do not affect the exemption of the property.

(3) The home and surrounding property remains exempt when temporarily unoccupied for reasons of employment, training for future employment, illness, vacation or is not inhabitable because of a casualty or natural disaster, if the household intends to return.

(4) If the household does not already own a home but owns or is purchasing a lot on which it intends to build or is building a permanent home, it receives an exclusion for the value of the lot, and if it is partially completed, for the home.

c. Household Goods, Life Insurance amp; Pensions

(1) Exclude as a resource household goods, personal effects, including one (1) burial lot per household member, and the cash value of life insurance policies.

(2) The cash value of pension plans or funds is excluded.

d. Excluded Vehicles

(1) Exclude the value of vehicles as specified below:

(AA) One (1) vehicle (licensed or unlicensed) for each adult household member, but not to exceed two (2) vehicles per household, shall not be counted as resources of the family.

(BB) Exclude the entire value of any licensed vehicle, such as, but not limited to, a taxi, truck, tractor, or fishing boat, if:

(i) The vehicle is used primarily (over fifty percent (50%) of the time the vehicle is used) for income-producing purposes.

(ii) Licensed vehicles which have previously been used by a self-employed household member engaged in farming, but are no longer used over fifty percent (50%) of the time in farming because the individual has terminated her/his self-employment from farming, continue to be excluded for one (1) year from the date the individual terminated her/his self-employment from farming.

(iii) The vehicle annually produces income consistent with its fair market value, even if used only on a seasonal basis.

(iv) The vehicle is necessary for long distance travel, other than daily commuting, which is essential to the employment of a household member (or an ineligible or a disqualified person whose resources are being considered available to the household). Such vehicles include that of a traveling salesperson or a migrant farmworker following the work stream.

(v) The vehicle is used as the household's home. This exemption applies during temporary periods of unemployment when the vehicle is not in use and for unlicensed vehicles on Indian reservations which do not require vehicles driven by tribal members to be licensed.

(2) Maintenance of excluded vehicles

(AA) Exclude any property, real or personal, to the extent that it is directly related to the maintenance or use of a vehicle excluded above.

(BB) Only that portion of real property determined necessary for maintenance or use is excludable under this provision.

(3) Vehicles for the Disabled

(AA) Exclude the entire value of any licensed vehicle if the vehicle is necessary to transport a physically disabled household member (or disabled ineligible or disqualified person whose resources are being considered available to the household) regardless of the purpose of such transportation.

(BB) This exemption is limited to one (1) vehicle per physically disabled household member. A vehicle is considered necessary for the transportation of a physically disabled household member if the vehicle is specially equipped to meet the specific needs of the disabled person or if the vehicle is a special type of vehicle which makes it possible to transport the disabled person.

(CC) The vehicle need not have special equipment or be used primarily by or for the transportation of the physically disabled household member.

(4) Fuel or Water Carrier

(AA) Licensed vehicle if the vehicle is necessary to carry fuel for heating or water for home use when the transported fuel or water is anticipated to be the primary source of fuel or water for the household during the certification period.

(5) Inaccessible Resource

(AA) Exclude from resources the value of a vehicle that is inaccessible, in accordance with §1.5.5(F) of this Part, because its sale would produce an estimated return of not more than one thousand five hundred dollars ($1,500.00).

(6) Income-Producing Property

(AA) Exclude property which annually produces income consistent with its fair market value, even if only used on a seasonal basis. Such property includes a rental home and a vacation home.

(BB) Exclude property such as farmland which is essential to the employment or the self-employment of a house-hold member.

(CC) Exclude work-related equipment, such as the tools of a tradesperson or the machinery of a farmer which is essential to the employment or self-employment of a household member.

(i) Property essential to the self-employment of a household member engaged in farming continues to be excluded for one (1) year from the date the individual terminates her/his self-employment from farming.

(7) Exclude installment contracts for the sale of land or buildings, if the contract or agreement is producing income consistent with its fair market value.

(AA) The value of the property sold under installment contract or held as security in exchange for a purchase price consistent with the market value of that property.

E. Determining Fair Market Value of Property

1. If the agency representative determines that the property is not producing income consistent with its fair market value, such property must be counted as a resource.

a. However, if the property is leased for a return that is comparable to other property in the area leased for similar purposes, it is considered as producing income consistent with its fair market value and is not considered a resource.

2. Property exempt as essential to employment need not be producing income consistent with its fair market value.

F. Inaccessible Resources

1. Resources with cash value that is not accessible to the household, such as but not limited to, irrevocable trust funds, security deposits on rental property or utilities, property in probate and real property which the household is making a good faith effort to sell at a reasonable price and which have not been sold are exempted.

a. In such cases, the agency representative verifies that the property is for sale and that the household has not declined a reasonable offer.

2. Any funds in a trust or transferred to a trust, and the income produced by that trust, to the extent it is not available to the household, is considered inaccessible to the household if:

a. The trust arrangement is not likely to cease during the certification period and no household member has the power to revoke the trust arrangement or change the name of the beneficiary during the certification period;

b. The trustee administering the funds is either:

(1) A court, or an institution, corporation, or organization which is not under the direction or ownership of any household member; or,

(2) An individual appointed by the court who has court-imposed limitations placed on their use of the funds which meet the requirements of this Section;

(3) Trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction, or influence of a household member; and,

(4) The funds held in irrevocable trust are either:

(AA) Established from the household's own funds, if the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational or medical expenses of any person named by the household creating the trust; or,

(BB) Established from non-household funds by a non household member.

G. Resources Excluded by Law

1. Under Pub. Law 103-66, earned income tax credits (EITC) received by any member of the household shall be excluded from financial resources for twelve (12) months from receipt if the household member is participating in the program at the time of its receipt and participates continuously during the twelve (12) month period.

2. Benefits received from the special supplemental food program for women, infants, and children (WIC).

3. Under the Child Nutrition Act, 42 U.S.C. § 1771et seq., the value of assistance to children.

4. As provided in the Child Nutrition Act, 42 U.S.C. § 1771et seq.: under WIC demonstration projects, coupons that can be exchanged for food at farmers' markets.

5. Under the Low-Income Home Energy Assistance Act, 42 U.S.C. § 8621, the amount of any home energy assistance payments or allowances provided directly to, or indirectly on behalf of, a household is excluded.

6. Financial assistance provided by a program funded in whole or in part under Title IV of the Higher Education Act in accordance with Pub. Law 105-244.

7. Payments made under Pub. Law 98-524, the Carl D. Perkins Career and Technical Education Act of 2006 as amended by Pub. Law 115-224.

8. Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 (Pub. Law 91-646).

9. Payments made under provisions of the Disaster Relief Act of 1974, Pub. Law 93-288, as amended. This exclusion applies to Federal assistance provided to persons directly affected and to comparable disaster assistance provided by States, local governments, and disaster relief organizations.

10. Payments made under the provisions of "Wartime Relocation of Civilians," Pub. Law 100-383, to certain United States citizens of Japanese ancestry, resident Japanese aliens and certain eligible Aleuts (natives of the Aleutian Islands).

11. All payments from the Agent Orange Settlement fund or any other fund established pursuant to the settlement in the Agent Orange product liability litigation retroactive to January 1, 1989. The disabled veteran will receive annual payments; survivors of the deceased disabled veterans will receive a lump-sum payment. These payments were disbursed by Aetna Insurance Company.

12. Payments made under the Radiation Exposure Compensation Act, Pub. Law 101-426 § 6(h)(2).

13. Payments received under the Alaska Native Claims Settlement Act, Pub. Law 92-203 §29, or the Sac and Fox Indian claims agreement under Pub. Law 94-189.

14. Funds distributed under Pub. Law 94-189 § 6, to the Sac and Fox Indians.

15. Payments of relocation assistance to members of the Navajo and Hopi Tribes under Pub. Law 93-531.

16. Payments received by certain Indian tribal members under Pub. Law 94114 § 6, regarding sub marginal land held in trust by the United States.

17. Payments received from the disposition of funds to the Grand River Band of Ottawa Indians under Pub. Law 94-540.

18. Funds paid under Pub. Law 98-123 § 3, to members of the Red Lake Band of Chippewa Indians.

19. Payments received by the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation from the Indian Claims Commission under Pub. Law 95-433.

20. Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980, Pub. Law 96-420.

21. Payments to the Blackfeet, Grosventre, and Assiniboine tribes, Montana, and the Papago, Arizona under Pub. Law 97-408.

22. Funds distributed per capita or held in trust under Pub. Law 99-146 § 6(b), for members of the Chippewas of Lake Superior.

23. Moneys paid under the White Earth Reservation Land Settlement Act of 1985, Pub. Law 99-264.

24. Payments to the Saginaw Chippewa Indian Tribe under Pub. Law 99-346.

25. Funds distributed under Pub. Law 99-377 § 4(b), to the Chippewas of the Mississippi.

26. Moneys paid under Indian Child Welfare, Pub. Law 95-608.

27. Payments to the Turtle Mountain Band of Chippewas, Arizona under Pub. Law 97-403.

28. Funds paid to members of the Assiniboine Tribe, Fort Belknap and Fort Peck, Montana under Pub. Law 98-124.

29. Under the Old Age Assistance Claims Settlement Act, Pub. Law 98-500, payments to heirs are excluded except for per capita shares in excess of two thousand dollars ($2,000.00).

30. Payments made under the Puyallup Tribe of Indians Settlement Act, Pub. Law 101-41.

31. Funds awarded to the Seminole Indians in dockets 73, 151, and 73-A of the Indian Claims Commission are excluded except for per capita shares in excess of two thousand dollars ($2,000.00) paid under Pub. Law 101-277.

32. Payments made under Seneca Nation Settlement Act, Pub. Law 101-503.

33. Any monetary allowances paid by the Veterans Administration under Pub. Law 104-204 §1805(d), to a child of a Vietnam Veteran for any disability resulting from Spina Bifida suffered by such child.

34. Any monetary allowances paid by the Veterans Administration under Pub. Law 106-419 §1815(a), to any individual with one (1) or more covered birth defects if he or she is a child of a female Vietnam veteran.

35. Under Pub. Law 103-322 §30202, amended §1403 of the Crime Act of 1984 (42 U.S.C. § 10602), compensation paid by an eligible crime victim compensation program.

36. Under the Food, Conservation and Energy Act of 2008, Pub. Law 110-246, which revised the Food Stamp Act, any funds in a plan, contract or account described in §§401(a), 403(a), 403(b), 408, 408A, and 501(c)(18) of the Internal Revenue Code of 1986, U.S.C. Title 26, and the value of funds in a Federal Thrift Savings Plan account as provided in 5 U.S.C. § 8439; and any retirement program or account included in any successor or similar provision that may be enacted and determined to be exempt from tax under the Internal Revenue Code of 1986.

37. Included in the above exclusion are: Pension or traditional defined-benefit, 401(k), SIMPLE 401(k), 501(c)(18), 403(b), 457, Federal Employee Thrift Savings, Keogh, IRA, Roth IRA, SIMPLE IRA, Simplified Employer, Profit Sharing and Cash Balance plans.

38. Under the Food, Conservation and Energy Act of 2008, Pub. Law 110-246, which revised the Food Stamp Act, any funds in a qualified tuition program described in §529 of the Internal Revenue Code of 1986 or in a Coverdell education savings account under §530 of that code.

H. Other Excluded Resources

1. Earmarked Resources

a. Any governmental payments which are designated for the restoration of a home damaged in a disaster, if the household is subject to a legal sanction should the funds not be used as intended.

2. Pro-rated Income

a. Resources, such as those of students or self-employed persons, which have been pro-rated and counted as income.

3. Indian Lands

a. Indian lands held jointly with the Tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs.

4. Energy Assistance

a. Energy assistance payments or allowances are considered excluded income under §1.5.3 of this Part.

5. Inaccessible Resources

a. Non-liquid asset(s) against which a lien has been placed as a result of taking out a business loan when the household is prohibited by the security or lien agreement with the lien holder (creditor) from selling the asset.

6. Resources which cannot be sold for a significant return

a. A resource is excluded if a household is unlikely to be able to sell that resource for a significant return because the household's interest is relatively slight or because the cost of selling the household's interest would be relatively great. Such a resource is considered inaccessible.

b. This inaccessibility provision does not apply to financial instruments such as stocks, bonds, or negotiable financial instruments.

c. This provision does apply to vehicles. For example, the value of a vehicle is considered inaccessible because its sale would produce an estimated return of not more than one thousand five hundred dollars ($1,500.00).

d. A complete description of the reasons for the determination of inaccessibility of the resource must be notated in the eligibility system.

e. For the purposes of this Subsection:

(1) Significant return means any return, after estimating costs of sale or disposition, and taking into account the ownership interest of the household, that the State agency determines are more than one thousand five hundred dollars ($1,500.00);

(2) Any significant amount of funds means funds amounting to more than one thousand five hundred dollars ($1,500.00).

I. Handling Excluded Funds

1. Excluded monies which are kept in a separate account and are not commingled in an account with non-excluded (countable) funds, retain their resource exclusion for an unlimited period of time.

2. The resources of students and self-employed households which are excluded (per above) and are commingled in an account with nonexcluded funds retain exclusion for the period of time over which they have been pro-rated as income.

3. All other excluded monies which are commingled in an account with non-excluded funds retain their exclusion for six (6) months from the day they are commingled.

a. After six (6) months from the date of commingling, all funds in the commingled account must be counted as a resource.

J. The following non-exempt resources must be counted in determining the total value of the household's resources:

1. Liquid Resources

a. These include, but are not limited to, cash on hand, a checking or savings account in a bank or other financial institution, savings certificates, stocks or bonds, and lump sum payments.

(1) In determining the resources of a household with an Education account (e.g., 529 plan), or an IRA or countable Keough plan, see §1.5.3 of this Part, Resources Excluded by Law.

2. Non-Liquid Resources

a. These include real and personal property, such as but not limited to, licensed and unlicensed vehicles, buildings, land, recreational properties, boats, vacation homes, mobile homes and other property not specifically excluded in this Subsection.

3. Deemed Resources

a. For a household containing a sponsored non-citizen (as defined in §1.5.8 of this Part), its resources also include the resources of the alien's sponsor and the sponsor's spouse (if any) which are deemed to the alien in accordance with the procedures described in §1.5.8 of this Part.

4. Resources of Excluded/Non-Household Members

a. The resources of non-household members must not be counted as available to the household. (See §1.2.4 of this Part)

b. The resources of ineligible household members must be counted in their entirety as available to the remaining household members. (See §1.5.6 of this Part)

5. Jointly Owned Resources

a. Resources owned jointly by separate households must be considered available in their entirety to each household, unless the household can demonstrate otherwise.

b. A household member who states that they are not the owner, or is only the partial owner of the resource must be required to demonstrate the ownership of the funds.

c. A household member who states that they have no access, or only partial access to the resource, must be required to demonstrate such lack of access.

d. If the household can demonstrate that it has ownership of, or access to, only a portion of the resource, only that portion must be counted toward the household's resource level.

K. Evaluating Ownership of a Resource

1. If the applicant/recipient can verify the lack of either access to, or ownership of, a resource that resource is not counted towards the resource limit when determining eligibility for SNAP benefits.

2. A resource is considered inaccessible to the household if the resource cannot be practically subdivided or the household's access to the value of the resource is dependent on the agreement of the joint owner who refuses to comply.

3. Resources must be considered inaccessible to a person residing in a shelter for battered persons and children (as defined in §1.4.8 of this Part) if:

a. The resources are jointly owned by such a person and by members of their former household; and,

b. The shelter resident's access to the value of the resources is dependent on the agreement of a joint owner who still resides in the former household.

4. In order for a household member to demonstrate a lack of ownership, or only partial ownership of a resource, two (2) of the following sources of documentation must be presented as evidence:

a. Documents showing the origin of the resource. For example, if a bank account was opened, who opened it or whose money was used to open the account;

b. Documentation through Federal or State tax records as to which of the joint account holders declares the tax on the interest credited to the account as income;

c. Records of who makes deposits and withdrawals and, if appropriate, of how withdrawn funds are spent.

(1) The person claiming a lack of ownership (or accessibility) should not have made any withdrawals.

d. A notarized affidavit which details a written or oral agreement made between the parties listed on the resource or by someone who established or contributed to the resource, with respect to the ownership of the funds in the resource;

e. When the household member states that they do not own a bank account but is listed as a co-holder solely as a convenience to the other co-holder to conduct bank transactions on their behalf, evidence of the age, relationship, physical or mental condition, or place of residence of the co-holder must be provided;

f. A signed, notarized statement from the household member and from either other individual(s) listed in the joint account, or the person who established or contributed to the account, stating that the applicant or recipient had no knowledge of the existence of the account.

g. A document or piece of evidence submitted to verify a particular fact does not count as more than one (1) verification under the above Subsection.

(1) However, a document, piece of evidence or a statement may address more than one (1) fact needed for verification.

h. For a bank account, a change in the account designation removing the household member's name or restricting access to the funds in the account must be made.

L. Nonrecurring Lump Sum Payments

1. Money received in the form of a nonrecurring lump sum payment, including, but not limited to, income tax refunds, rebates, or credits; retroactive lump sum social security, SSI, public assistance, railroad retirement benefits or other payments; lump sum insurance settlements; lump sum lottery winnings; or refunds of security deposits on rental property or utilities.

2. These payments are counted as resources in the month received, unless specifically excluded from consideration as a resource by other Federal laws.

3. If the total amount of resources exceeds the allowable resource limit, the household must be given an opportunity to update its entire resource statement.

a. If it declines to do so, or the amount of resources still exceeds the limit, the agency representative takes action to discontinue the household's certification.

M. Non-Excluded Vehicles

1. If a vehicle is not excluded under this Section, the agency representative then handles each vehicle as follows:

a. Individually determines the resource value of each vehicle not excluded by:

(1) Determining the amount, if any, in excess of four thousand six hundred fifty dollars ($4,650.00) of the vehicle's Fair Market Value.

(2) Calculating the vehicle's equity value, unless specifically exempt from the equity value test.

(AA) Unlicensed vehicles and non-income producing licensed vehicles, except for those excluded, are evaluated for equity value.

(BB) Equity value is fair market value less encumbrances.

(CC) Equity value is attributed toward the household's resource level except when a vehicle's equity value is less than one thousand five hundred dollars ($1,500.00).

(3) Counts as a resource only the greater of the two (2) amounts if the vehicle has a countable fair market value of more than four thousand six hundred fifty dollars ($4,650.00) and also has a countable equity value.

2. Determining Fair Market Value (FMV) of Licensed Vehicles

a. The fair market value of licensed automobiles, trucks and vans is determined by the wholesale value of the vehicle as listed in publications written for the purpose of providing guidance to automobile dealers and loan companies.

b. The agency representative must not increase the basic value of a vehicle by considering such variables as low mileage or other factors such as optional equipment.

c. Any household that claims the blue book value does not apply to its vehicle must be given the opportunity to acquire verification of the true value from a reliable source.

(1) Households are asked to acquire verification of the value of a licensed antique, custom made, or classic vehicle, if the agency representative is unable to make an accurate appraisal.

(2) If a vehicle is specially equipped with apparatus for a disabled person, the apparatus must not increase the value of the vehicle.

(3) If a vehicle is no longer listed in the blue book, the household's estimate of the value of the vehicle is accepted, unless the agency representative has reason to believe that the estimate is incorrect.

(AA) In such a case, if it appears that the vehicle's value may affect eligibility, the household must obtain an appraisal or produce other evidence of its value, such as a tax assessment or newspaper advertisement indicating the sale price of similar vehicles.

(BB) If a new vehicle is not yet listed in a blue book, the agency representative determines the wholesale value through some other means, such as contacting a car dealer who sells that make of vehicle.

3. When Fair Market Value is Counted

a. All non-income producing licensed vehicles must be evaluated individually for fair market value.

b. That portion of the value which exceeds four thousand six hundred fifty dollars ($4,650.00) is attributed in full toward the household's resource level, regardless of any encumbrances on the vehicles unless the vehicle has both fair market and equity value.

c. Any value in excess of four thousand six hundred fifty dollars ($4,650.00) must be attributed to the household's resource level, regardless of the amount of the household's investment in the vehicle, and regardless of whether or not the vehicle is used to transport household members to and from employment unless the criteria in §1.5.5(M)(5) of this Part below, is applicable.

d. Each vehicle must be appraised individually. The values of two (2) or more vehicles must not be added together to reach a total fair market value in excess of four thousand six hundred fifty dollars ($4,650.00).

4. Vehicles Exempt from the Equity Test

a. Only the following vehicles are exempt from the equity value test:

(1) Vehicles excluded in this Subsection;

(2) One (1) licensed vehicle per adult household member (or an ineligible alien or disqualified household member whose resources are being considered available to household), regardless of the use of the vehicle; and

(3) Any other vehicle a household member under age eighteen (18) (or an ineligible alien or disqualified household member under age eighteen (18) whose resources are being considered available to household) drives to commute to and from employment, or to and from training or education which is preparatory to employment, or to seek employment.

5. Counting Either Fair Market Value or Equity Value

a. When a licensed vehicle is assigned both a fair market value in excess of four thousand six hundred fifty dollars ($4,650.00) and an equity value, only the greater of the two (2) amounts is counted as a resource if the vehicle is not otherwise excluded.

b. Count the Higher of:

(1) Fair Market Value Over four thousand six hundred fifty dollars ($4,650.00); or

(2) Equity (Fair Market Value Less Encumbrances)

Table on Treatment of Vehicles
TOTALLY EXEMPT	NON-EXEMPT COUNT FAIR MARKET VALUE OVER FOUR THOUSAND SIX HUNDRED FIFTY DOLLARS ($4,650.00)
A vehicle (licensed or unlicensed) for each adult household member, not to exceed two (2) vehicles per household	One (1) vehicle per adult household member, regardless of use
Income producing	Used to transport household members under age eighteen (18) to work, school, other or training to look for work
Necessary for long-distance travel, other than daily commuting, that is essential to the employment of a household member (or ineligible non-citizen or disqualified person whose resources are being considered available to the household)
Necessary to transport a physically disabled household member
Used as household's home
Necessary to carry fuel for heating or water for home use
when such transported fuel or water is the primary source of fuel or water for the household
Classified as an inaccessible resource

N. Vacation Homes

1. A vacation home used part of the year by the household and that is not producing income consistent with its fair market value has its equity value counted toward the resource limit.

O. Transfer of Resources

1. Households which have knowingly transferred resources for the purpose of qualifying or attempting to qualify for SNAP benefits must be disqualified from participation in the program for up to one (1) year from the date of the discovery of the transfer.

a. This disqualification period must be applied if the resources are transferred knowingly in the three (3) month period prior to application or if they are transferred after the household is determined eligible for benefits.

2. Eligibility for the program is not affected by transfer of a resource which:

a. Would not otherwise affect eligibility;

b. Is sold or traded at or near fair market value;

c. Is transferred between members of the same household (including an ineligible non-citizen or a disqualified person whose resources are being considered available to the household); or,

d. Is transferred for reasons other than qualifying or attempting to qualify for SNAP benefits.

3. The length of the disqualification period is based on the amount by which the transferred resource, when added to other countable resources, exceeded the allowable resource limit.

a. The following chart is used to determine the period of disqualification:

Amount in Excess of the Resource Limit	Period of Disqualification
$1.00 - $249.99	One (1) Month
$250.00 - $999.99	Three (3) Months
$1,000.00 - $2,999.99	Six (6) Months
$3,000.00 - $4999.99	Nine (9) Months
$5,000.00 and up	Twelve (12) Months

b. In the event the agency establishes that an applicant household knowingly transferred resources for the purpose of qualifying or attempting to qualify for SNAP benefits, the agency sends the household a notice of denial explaining the reason for and length of the disqualification.

c. The period of disqualification begins in the month of application.

d. If the household is participating at the time of the discovery of the transfer, a notice of adverse action explaining the reason for and length of the disqualification period is sent.

e. The period of disqualification is effective with the first (1st) allotment issued after the adverse notice period has expired, unless the household has requested a hearing and continued benefits.

1.5.6Special Situations

A. Income/Resources of Ineligible Members

1. The following procedures are used to determine the eligibility and benefit level of any remaining household member(s) of a household containing an individual determined ineligible for SNAP benefits:

a. For households with an ineligible non-citizen, an individual ineligible for failing to attest to their U.S. citizenship or immigration status, an individual ineligible because of disqualification for failure or refusal to obtain or provide an SSN or an individual ineligible due to meeting the time limit for able-bodied adult without dependents:

(1) Resources: The resources of such an ineligible member(s) continue to count in their entirety to the remaining household members.

(2) Income: pro rata share of the income of such an ineligible member(s) is counted as income to the remaining members.

(AA) This pro rata share is calculated by first subtracting the allowable exclusions from the ineligible members' income and dividing the income evenly among the household members, including the ineligible members.

(BB) However, if the ineligible member receives no income of their own, the RIW payment shall not be pro-rated.

(3) Deductible Expenses: The twenty percent (20%) earned income deduction applies to the pro-rated income earned by such an ineligible member(s) which is attributed to the household.

(AA) That portion of the household's allowable shelter and dependent care expenses which are either paid by or billed to the ineligible members(s), is divided evenly among the household's members, including the ineligible member(s).

(BB) All but the ineligible members' share is counted as a deductible shelter or dependent care expense for the remaining household members.

(CC) If the expense is paid in full by an eligible member, the expense is allowed in full for the household.

(DD) The mandatory Standard Utility Allowance (SUA) will not be pro-rated - the full SUA will be provided to the household if it is entitled to it.

(EE) If a household contains an ineligible member with no income of their own, the full shelter and/or dependent care costs are allowed in the determination of eligibility and benefit level for SNAP.

(4) Eligibility and benefit level: Such an ineligible member(s) must not be included when determining the household's size for the purposes of:

(AA) Assigning a benefit level to the household;

(BB) Assigning a standard deduction to the household;

(CC) Comparing the household's monthly income with the income eligibility standards; or,

(DD) Comparing the household's resources with the resource eligibility limits.

b. For households with an individual who is ineligible because of disqualification for an IPV or ineligible because a sanction has been imposed for failing to comply with work requirements in § 1.11 of this Part:

(1) Income, Resources and Deductible Expenses

(AA) The income and resources of the ineligible household member(s) continue to count in their entirety, and the entire household's allowable earned income, standard, medical, dependent care, and excess shelter deductions continue to apply to the remaining household members.

(2) Eligibility and Benefit Level

(AA) The ineligible member is not included when determining the household's size for the purpose of:

(i) Assigning a benefit level to the household;

(ii) Assigning a standard deduction to the household;

(iii) Comparing the household's monthly income with the income eligibility standards; or

(iv) Comparing the household's resources with the resource eligibility limits.

c. The agency representative must ensure that no household 's benefit allotment is increased as a result of the exclusion of one (1) or more household member(s).

2. If a household's benefits are reduced or terminated within the certification period because one (1) of its members was determined ineligible because of disqualification for intentional program violation, the agency must notify the remaining members of their eligibility and benefit level at the same time the ineligible member is notified of their disqualification.

a. The household is not entitled to a notice of adverse action but may request a fair hearing to contest the reduction or termination of benefits.

3. If a household's benefits are reduced or terminated within the certification period because one (1) or more of its members is an ineligible non-citizen, is ineligible because a sanction has been imposed while the individual was participating in a household disqualified for failing to comply with work requirements, or ineligible because they were disqualified for refusal to obtain or provide an SSN, the agency must issue a notice of adverse action which informs the household of the ineligibility, the reason for the ineligibility, the eligibility and benefit level of the remaining members, and the action the household must take to end the ineligibility.

B. RIW, GPA and SSI Households

1. To facilitate participation in the program, households in which members are applying for RIW and/or GPA (PA households) must be allowed to complete a joint application for SNAP benefits at the same time they apply for such assistance.

a. These households' SNAP eligibility and benefit levels are based solely on SNAP eligibility criteria.

b. The joint application processing procedures in this Section are used for a SNAP household in which some members are receiving RIW and/or GPA and others are receiving SSI.

c. A household consisting of some members who are receiving RIW/GPA/SSI and some not receiving assistance also may file a joint application for SNAP benefits.

d. The RIW and GPA application form contains all the information necessary to determine a household's SNAP eligibility and level of benefits.

C. Income/Resources of a Non-Household Member

1. For all other non-household members who are not specifically mentioned in §1.5.6(B) of this Part above, such as a roomer or an ineligible student, the income and resources of such individuals must not be considered available to the household with whom the individual resides.

2. Voluntary cash payments from a non-household member to the household are considered income under the normal income standards.

3. Vendor payments are excluded as income.

4. If the household shares deductible expenses with the non-household member, only the amount actually paid or contributed by the household is deducted as a household expense.

a. If the payments or contributions cannot be differentiated, the expenses must be pro-rated evenly among persons actually paying or contributing to the expense and only the household's pro rata share is deducted.

b. The mandatory SUA will not be pro-rated - the full SUA will be granted to the household if the household is entitled to it.

5. When the earned income of one (1) or more household members and the earned income of a non-household member are combined into one (1) wage, the income of the household member(s) is determined as follows:

a. If the household's share can be identified, the agency representative counts that portion due to the household as earned income.

b. If the household's share cannot be identified, the agency representative must pro-rate the earned income among all those whom it was intended to cover and counts that pro-rated portion to the household.

6. Such non-household members must not be included when determining the size of the household for the purposes of:

a. Assigning a benefit level to the household;

b. Assigning a standard deduction to the household;

c. Comparing the household's monthly income with the income eligibility standards; or,

d. Comparing the household's resources with the resource eligibility limits.

1.5.7Deductions and Expenses

A. Deductible expenses include only certain medical, dependent care, and shelter costs as described in this Subsection.

1. Categorically eligible SSI recipients entitled to the excess medical deduction and the uncapped shelter expense must receive such deductions, if they incur such expenses, for the period for which they are authorized to receive SSI benefits or the date of the SNAP application whichever is later as discussed in the categorical eligibility provisions (§1.5.1 of this Part).

a. Such individuals who are entitled to restored benefits in accordance with those provisions must have their benefits restored using these special deductions if they have such expenses.

2. Disallowed Expenses

a. An expense covered by either an excluded reimbursement or vendor payment, except an energy assistance vendor payment made under the Low-Income Home Energy Assistance Act of 1981, 42 U.S.C. §§ 8621 through 8630, is not deductible.

b. Expenses are only deductible if the service is provided by someone outside of the household, and the household makes a money payment for the service.

c. If the household reports an allowable medical expense at the time of certification but cannot provide verification at that time, and if the amount of the expense cannot be reasonably anticipated based upon available information about the individual's medical condition and public or private medical insurance coverage, the household shall have the non-reimbursable portion of the medical expense considered at the time the amount of the expense or reimbursement is reported and verified.

3. Except as provided in §1.5.7(A)(5) of this Part for averaged expenses, a deduction is allowed in the month the expense is billed or otherwise becomes due, regardless of when the household intends to pay the expense.

a. Amounts carried forward from past billing periods are not deductible even if included with the most recent billing and actually paid by the household.

b. A repayment agreement or verification indicating that a household still incurs a bill on a one (1) time medical expense is allowable in the month that each installment is due, even if the household was initially billed and established a payment plan before the certification period began.

c. An expense may only be deducted and applied to a case once and must be non-reimbursable.

4. Anticipating Expenses

a. The agency representative calculates a household's expenses based on those expenses the household expects to be billed for during the certification period.

b. Anticipation of an expense is based on the most recent month's bills, unless the household is reasonably certain a change will occur.

c. The SNAP allotment is adjusted for the remainder of the certification period and, if necessary, a supplemental allotment is provided for the month in which the change is verified.

d. The household may elect to average its expenses (see §1.5.7(A)(5) of this Part below).

5. Averaging Expenses

a. Households may elect to have fluctuating expenses averaged.

b. Households may also elect to have expenses which are billed less often than monthly averaged forward over the interval between scheduled billings, or, if there is no scheduled interval, averaged forward over the period the expense is intended to cover.

c. Households reporting one (1) time only medical expenses during their certification period may elect to have a one (1) time deduction or to have the expense averaged over the remaining months of their certification period.

d. Averaging begins the month the change becomes effective.

e. For households certified for twenty-four (24) months that have one

(1) time medical expenses, the agency will utilize the following procedure:

(1) In averaging any one (1) time medical expense incurred by a household during the first (1st) twelve (12) months, the agency will give the household the option of deducting the expense for one (1) month, averaging the expense over the remainder of the first (1st) twelve (12) months of the certification period, or averaging the expense over the remaining months in the certification period.

(2) One (1) time expenses reported after the twelfth (12th) month of the certification period will be deducted in one (1) month or averaged over the remaining months in the certification period, at the household's option.

f. Averaging Energy Assistance Payments

(1) Except for payments made under the Low-Income Home Energy Assistance Act of 1981, 42 U.S.C. §§ 8621 through 8630, any energy assistance payments which a household receives are pro-rated over the entire heating (or cooling) season for which the payment is intended to cover.

6. The SNAP allows five (5) deductions from a household's gross income. These deductions are:

a. The earned income deduction

(1) A household with earned income shall be allowed a deduction of twenty percent (20%) of all earned income to compensate for taxes, other mandatory deductions from salary, and work expenses.

(2) The term "earned income" does not include any portion of the income earned under a work supplementation or support program that is attributable to public assistance. For the definition of earned income, see §1.5.2 of this Part.

(3) Exception: the deduction described above shall not be allowed with respect to determining an over issuance due to the failure of a household to report earned income in a timely manner.

b. The standard deduction

(1) The standard deduction is adjusted annually on October 1 to reflect changes in the Consumer Price Index for All Urban Consumers (CPI-U).

(2) Each household is allowed a standard deduction as outlined below:

Household Size	Standard Deduction Amount (eff.10/1/23)
1	$198.00
2	$198.00
3	$198.00
4	$208.00
5	$244.00
6	$279.00
7	$279.00
8	$279.00

(3) The amounts above are provided annually by Food and Nutrition Services and equal 8.31% of the Federal Poverty Level (FPL) but not more than 8.31% of the Federal Poverty Level for a household of six (6).

c. The excess medical expense deduction

(1) An excess medical deduction is that portion of total medical expenses in excess of thirty-five dollars ($35.00) per month, excluding special diets, incurred by all household members who are elderly or disabled (Including disabled veterans or surviving disabled spouses/children of veterans).

(AA) The thirty-five dollar ($35.00) disregard applies to the entire household and not individual members.

(2) A spouse or other person receiving benefits as a dependent of the SSI or disability and blindness recipient is not eligible to receive this deduction, but persons receiving emergency SSI benefits based on presumptive eligibility are eligible for this deduction.

(3) The household's monthly medical deduction for the certification period shall be based on the information reported and verified by the household, and any anticipated changes that can be reasonably expected to occur during the certification period based on available information about the individual's medical condition, public or private health insurance coverage, and the current verified medical expenses.

(AA) The household shall not be required to report changes in its medical expenses during the certification period.

(BB) If the household voluntarily reports a change in its medical expenses, the worker will verify the change in accordance with procedures described in §1.13.1 of this Part.

(4) Allowable medical costs are:

(AA) Medical and dental care, including psychotherapy and rehabilitation services, provided by a licensed practitioner authorized by State law or other qualified health professional.

(BB) Hospitalization, outpatient treatment, nursing care, and nursing home care, including payments by the household for an individual who was a household member immediately prior to entering a hospital or nursing home provided by a facility recognized by the State.

(CC) Prescription drugs when prescribed by a licensed practitioner authorized under State law, and other over-the-counter medication (including insulin), when approved by a licensed practitioner or other qualified health professional (exception: medicinal marijuana is not an allowable medical cost for purposes of determining SNAP eligibility and/or benefit level);

(i) In addition, postage for prescription drugs, costs of medical supplies, sick room equipment (including rental) or other prescribed equipment are deductible.

(DD) Health and hospitalization insurance policy premiums.

(i) The costs of health and accident policies, such as those payable in lump sum settlements for death or dismemberment, or income maintenance policies, such as those which continue mortgage or loan payments while the beneficiary is disabled, are not deductible.

(EE) Medicare premiums, and any cost-sharing or spend-down expenses incurred by Medicaid recipients.

(FF) Repayments made on a loan when the loan is used to pay a one (1) time only medical expense.

(i) Loan expenses, such as interest, are not allowable as part of the medical expense.

(ii) If a second (2nd) mortgage is obtained for medical expenses, repayment is treated as a shelter expense and not as a medical expense.

(GG) Dentures, hearing aids, and prosthetics.

(HH) Securing and maintaining a seeing eye, hearing dog or service animal, including the cost of food for the animal and veterinarian bills.

(II) Eye glasses prescribed by a physician skilled in eye disease, or by an optometrist.

(JJ) Reasonable cost of transportation and lodging to obtain medical treatment or services.

(KK) Maintaining an attendant homemaker, home health aide, or child care services necessary due to age, infirmity, or illness. In addition, an amount equal to the one (1) person SNAP allotment is deducted if the household furnishes the majority of the attendant's meals.

(i) The allotment is that which is in effect at the time of initial certification.

(ii) The allotment amount is updated at the next scheduled recertification.

(iii) If a household incurs attendant care costs that could qualify under both the medical deduction and dependent care deduction, the cost is treated as a medical expense.

d. The dependent care deduction

(1) Payments for the actual cost for the care of a child under the age of eighteen (18) or an adult who is incapacitated when necessary for a household member to accept or continue employment, comply with the employment and training requirements as specified in § 1.11 of this Part (or an equivalent effort by those not subject to those requirements), or attend training or education preparatory to employment.

(AA) Incapacitation refers to any permanent or temporary condition that prevents an individual from participating fully in normal activities without supervision (including but not limited to work or school) and that requires the care of another person to ensure the health and safety of the individual, or a condition or situations that makes a lack of supervision risky to the health and safety of the individual.

(2) The agency will accept the household's statement of these expenses unless the statement is questionable as defined in §1.6.2 of this Part.

e. The excess shelter deduction

(1) Monthly shelter costs in excess of fifty percent (50%) of the household's income after all the above deductions have been allowed. Shelter costs include only the following:

(AA) A standard shelter expense estimate per household for all homeless households where all members are homeless and not receiving free shelter throughout the calendar month of one hundred seventy-nine dollars and sixty-six cents ($179.66).

(i) All homeless households which incur or reasonably expect to incur shelter costs in a month shall be eligible for the estimate unless higher costs are claimed, at which point the household may use actual shelter costs rather than the estimate.

(ii) Homeless households which incur no shelter costs shall not be eligible for the standard estimate. A homeless household may not receive both the homeless shelter estimate and the SUA.

(BB) Continuing charges for the shelter occupied by the household, including rent, mortgage, or other continuing charges leading to the ownership of shelter, such as loan repayments for the purchase of a mobile home, including interest on such payments.

(i) Payments on second (2nd) mortgages and home equity loans are allowable shelter costs.

(ii) Payments on personal loans that are not secured by a lien on the property are not allowable costs even if the bank is listed as a beneficiary on the homeowner's insurance policy.

(iii) If a household owns a home and lot and later purchases a connecting piece of property, the mortgage payments on the new property can only be allowed as shelter costs if the new property was financed by a second (2nd) mortgage or other loan secured by the home and lot.

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

(DD) Charges for heating, cooling, and cooking fuel; electricity; water and sewer; garbage and trash collection fees; the basic service fee for one (1) telephone, including tax on the basic fee; and fees charged by the utility provider for initial installation of the utility.

(i) One (1) time deposits are not included as shelter costs.

(ii) Note that the Standard Utility Allowance must be utilized instead of actual charges if the household incurs charges for heating and/or cooling expenses.

(EE) The above shelter costs for the home if not actually occupied by the household because of employment away from home, illness, or abandonment of the home due to natural disaster or casualty loss.

(i) For the costs of a vacated home to be included in shelter costs, the household must intend to return to the home; the current occupants of the home, if any, must not be claiming the shelter costs during the absence of the household; and the home must not be leased or rented in the household's absence.

(ii) The Standard Utility Allowance must be used if the household incurs heating and/or cooling expenses.

(iii) A household that incurs expenses for both an occupied and unoccupied home is only entitled to one (1) Standard Utility Allowance.

(FF) Charges for the repair of the home which was substantially damaged or destroyed due to a natural disaster such as a fire or flood.

(i) Shelter costs do 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.

(ii) The cost of repairs as a result of wear and tear, incidental repairs, and improvements are not allowed for homeowners, renters who work-off their rent, or other renters.

(GG) For condominium owners, the entire condominium fee is allowable as a shelter cost.

(2) The maximum excess shelter deduction per household per month for households incurring shelter costs is six hundred seventy-two dollars ($672.00).

(AA) The maximum does not apply to households with an individual age sixty (60) and older and/or a disabled household member as defined in §1.4.11 of this Part.

(i) Such households receive an excess shelter deduction for the monthly cost that exceeds fifty percent (50%) of the household's monthly income after all other applicable deductions.

(ii) The maximum shelter cost deduction is subject to change annually.

B. Standard Medical Deduction

1. Households that contain elderly and/or disabled members who claim to have medical expenses of more than thirty-five dollars ($35.00) will be given a standard medical deduction of one hundred eighty-three dollars ($183.00).

2. At initial application or when an active case containing a qualifying member reports medical expenses, the agency must verify if monthly medical expenses are more than thirty-five dollars ($35.00).

a. If the household fails to verify any medical expenses, the household is not entitled to a Standard Medical Deduction.

b. If total medical costs for the qualifying member(s) are more than thirty-five dollars ($35.00) per month, allow the appropriate Standard Medical Deduction.

3. If the household claims that its monthly medical expenses exceed two hundred eighteen dollars ($218.00) per month, the agency will grant the household the option of verifying and utilizing its actual monthly medical expenses instead of the Standard Medical Deduction.

a. If the household verifies that medical expenses exceed thirty-five dollars ($35.00) per month but fails to verify total monthly medical expenses over two hundred eighteen dollars ($218.00), the household's benefits will be calculated using the Standard Medical Deduction.

4. Participating households will remain eligible for the Standard Medical Deduction at recertification if they declare that the medical expenses continue to exceed thirty-five dollars ($35.00) per month.

a. Verification is not required at recertification unless the declaration is questionable. Declaration is a verbal statement, written statement, or appropriate response to a question supplied on a form. No further verification is required.

C. Utility Expenses

1. There are three (3) methods of calculating utility expenses for households:

a. The Standard Utility Allowance which is used only when the household is billed for heating and/or cooling costs on a regular basis or has received a LIHEAA payment at its current address;

b. The actual utility expenses, not including heating and/or cooling costs, which the household incurs and pays for separately.

(1) These utility amounts are then added to the rent or mortgage payments (including property taxes, insurance and local assessment) to obtain the total shelter expense; and,

c. The Standard Telephone Allowance of twenty-five dollars ($25.00), which is used for a household that incurs the expense of a basic service charge for one (1) telephone and is not eligible to use the Standard Utility Allowance.

(1) If a household can demonstrate that its cost for basic service for one (1) telephone is greater than the Standard Telephone Allowance, then the actual cost is used.

(2) If the expense is shared by separate households, each household can claim the Standard Telephone Allowance.

2. Standard Utility Allowance (SUA)

a. The Standard Utility Allowance (SUA) which includes a heating or cooling component must be used by households which incur heating and/or cooling costs separately and apart from their rent or mortgage.

b. The Standard Utility Allowance includes the cost of heating and/or cooling, cooking fuel, electricity, or gas not used to heat or cool the residence, the basic service fee for one (1) telephone, water, sewerage and garbage and trash collection.

c. To qualify, the household must be billed on a regular basis for its heating or cooling costs or have received a LIHEAA payment in the month of application or in the immediately preceding twelve (12) months.

(1) These households include:

(AA) Residents of rental housing who are billed on a monthly basis by their landlords for actual usage through individual metering;

(BB) Recipients of indirect energy assistance payments (vendor payments), made under a program other than the Low-Income Home Energy Assistance Act of 1981 (LIHEAA) 42 U.S.C. § 8621, who also incur out-of-pocket heating or cooling expenses during any month covered by the certification period; or

(CC) Recipients of energy assistance payments made under the Low-Income Home Energy Assistance Act of 1981 (LIHEAA), 42 U.S.C. Chapter 94.

(i) These households are deemed to have incurred out-of-pocket heating or cooling costs even if heat and utilities are included in their rent.

(ii) If a household received a LIHEAA payment at its current address in the month of application or in the immediately preceding twelve (12) months, the household is entitled to the SUA.

d. A household which incurs cooling or heating fuel costs on an irregular basis but is otherwise eligible to use the Standard Utility Allowance, continues to use the allowance between billing periods.

e. A cooling cost is a utility expense relating only to the operation of air conditioning systems or room air conditioners.

f. A household living in a public housing unit, or other rental housing unit which has central utility meters and charges the household only for excess heating or cooling costs must use the Standard Utility Allowance.

g. If the household shares utility expenses with, and lives with, another individual not participating in the SNAP, another household participating in the SNAP, or both, the household is entitled to the full Standard Utility Allowance.

h. The SUA is seven hundred and eighty-nine dollars ($789.00) per household per month based on an annualized (twelve (12) month) average of utility costs.

i. Verification for Use of the SUA

(1) If a household is to qualify for the Standard Utility Allowance based on incurring heating or cooling expenses, the household must be billed on a regular basis for those costs and the household's statement of the costs is accepted as verification, unless the statement is questionable, as defined in §1.6.2 of this Part.

(2) If a household is to qualify for the Standard Utility Allowance based on the receipt of a Low-Income Home Energy Assistance Payment (LIHEAP), the household's statement is used as acceptable verification unless questionable as defined in §1.6.2 of this Part.

(3) When a household moves, its entitlement to the SUA is redetermined.

3. If the household claims expenses for an unoccupied home, the household must provide its actual utility expenses if it is not entitled to the SUA for the unoccupied home.

a. If the household incurs expenses for heating or cooling the unoccupied home, the SUA may be used but the household cannot receive the SUA for both an occupied and unoccupied home.

4. Expenses verified only if questionable (as defined in §1.6.2 of this Part), and if allowing the expense would actually result in a deduction.

a. If a deductible expense must be verified, and obtaining the verification may delay the household's certification, the agency representative advises the household that its eligibility and benefit level may be determined without providing a deduction for the claimed but unverified expense.

(1) If the expense cannot be verified within thirty (30) days of the date of application, the agency representative determines the household's eligibility and benefit level without providing a deduction for the unverified expense.

(AA) The household is entitled to restoration of any benefits retroactive to the month of application only if the expense could not be verified within the thirty (30) day processing standard because the agency representative failed to allow the household sufficient time, to verify the expense.

D. Shelter Costs for Unoccupied Homes

1. A household that wishes to claim shelter costs for a home which is unoccupied because of employment, training away from the home, illness, or abandonment caused by a natural disaster or casualty loss, is responsible for providing verification of the expense if it is questionable (as defined in §1.6.2 of this Part) and if the expense would result in a deduction.

a. The agency representative is not required to assist a household in obtaining verification of this expense if the verification would have to be obtained from a source outside of the State.

b. The SUA is allowed if the household incurs heating or cooling expenses on the home.

(1) A household that incurs expenses for both an occupied and unoccupied home is only entitled to one (1) SUA.

1.5.8Deeming

A. Households Containing Sponsored Non-Citizen

1. For purposes of determining the eligibility and benefit level of a household in which an eligible sponsored non-citizen is a member, the agency must deem the income and resources of the sponsor and the sponsor's spouse, if they have executed INS Form I-864 or I-864A on or after December 19, 1997, as the unearned income and resources of the LPR.

2. The sponsor's income and resources shall be deemed until the LPR alien gains U.S. citizenship or has worked or can receive credit for forty (40) qualifying quarters of work covered under Title II of the Social Security Act, 8 U.S.C. §§ 1631 and 1645.

a. And in the case of any such qualifying quarter creditable for any period beginning after December 31, 1996, did not receive any Federal means-tested public benefit during any such period, or they or the sponsor dies.

B. Income Deeming

1. The monthly income of the sponsor (and sponsor's spouse) who executed INS Form I-864 or I-864A deemed as that of the eligible sponsored immigrant shall be the total monthly earned and unearned income of the sponsor and sponsor's spouse at the time the household containing the sponsored alien member applies or is recertified for participation, reduced by:

a. A twenty percent (20%) earned income amount for that portion of the income determined as earned income of the sponsor and the sponsor's spouse; and

b. An amount equal to the monthly gross income eligibility limit for a household equal in size to the sponsor, the sponsor's spouse, and any other person who is claimed or could be claimed by the sponsor or the sponsor's spouse as a dependent for Federal income tax purposes.

c. If the sponsor has signed an affidavit of support for more than one (1) immigrant, the sponsor's income is pro-rated among the sponsored immigrants.

C. Resource Deeming

1. All but one thousand five hundred dollars ($1,500.00) of the total resources of the sponsor are deemed available to the sponsored non-citizen.

a. Non-citizens exempt from income deeming are exempt from resource deeming.

D. Exemptions from Sponsor Deeming

1. The following classifications of non-citizens are not subject to deeming Rules:

a. Sponsor in same SNAP household:

(1) If the sponsor lives in the same household as the noncitizen, deeming does not apply because the sponsor's income and resources are already counted.

(2) There is, however, no deeming exemption if the sponsor receives SNAP in another household.

b. Ineligible Member:

(1) If the sponsored non-citizen is ineligible for SNAP benefits because of immigration status (i.e., is not a qualified non-citizen or is an LPR without five (5) years of residency), the sponsor's income is not deemed to other eligible members of the immigrant's household.

c. Immigrant whose sponsor has not signed a legally binding affidavit of support:

(1) This category includes all but family-based and a few employment-based LPRs who applied on or after December 19, 1997 and all immigrants who became LPRs or whose sponsors signed affidavits of support before December 19, 1997.

(2) Non-citizens, such as refugees, who are sponsored by an organization or group also fall into this category.

d. Immigrant without sponsors:

(1) In general, qualified non-citizens who enter the country under provisions of immigration law other than the family-sponsored categories do not have sponsors of the type that incur a liability when the immigrant obtains means-tested benefits.

(AA) Included in this group are refugees, asylees, persons granted withholding of deportation, Amerasians, and Cuban or Haitian entrants. (While it is possible for these individuals to be "sponsored" by an organization such as a church, they are not sponsored on an I-864 Affidavit of Support and that organization does not have to sign a legally binding affidavit of support that would subject that individual to deeming requirements.)

e. Indigent Exception:

(1) If the immigrant's own income and any assistance provided by the sponsor or any other individuals is not enough for the immigrant to obtain food and shelter without the program, the amount of the income and resources attributed to the non-citizen through deeming cannot exceed the amount actually provided for up to a twelve (12) month period.

(2) The State agency must notify the U.S. Citizenship and Immigration Services (USCIS) if such determinations are made.

(3) An immigrant is considered "indigent" if the sum of the immigrant's household's own income and any cash or in-kind assistance provided by the sponsor or others is less than one hundred thirty percent (130%) of the poverty income line.

(4) Each indigence determination is effective for twelve (12) months and may be renewed for additional twelve (12) month periods.

f. Battered Spouse or Child Exception:

(1) Deeming also does not apply during any twelve (12) month period if the non-citizen is a battered spouse, battered child or parent, or child of a battered person providing the battered non-citizen lives in a separate household from the person responsible for the battery.

(2) The exemption can be extended for additional twelve (12) month periods if the non-citizen demonstrates that the battery is recognized by a court, administrative order, or by the USCIS and if the agency administering the benefits determines that the battery has a substantial connection to the need for benefits.

g. Children under eighteen (18) years old.

h. Immigrant whose deeming period has ended.

E. Eligibility Determination

1. The amount of income and resources deemed to be that of the sponsored non-citizen must be considered in determining the eligibility and benefit level of the household of which the non-citizen is a member.

2. If an immigrant is subject to deeming, the eligible sponsored immigrant is responsible for obtaining the cooperation of the sponsor and for providing the State agency at the time of application and recertification with the information and documentation necessary to calculate deemed income and resources.

a. The State agency must assist the household in obtaining the necessary verification.

b. If necessary, USCIS through its SAVE program can provide the sponsor's name, address, and Social Security Number.

c. Immigrants who are exempt from deeming do not need to provide information about the sponsor's income and resources.

3. The agency representative must obtain from the immigrant or immigrant's spouse the following information:

a. The income and resources of the immigrant's sponsor and the sponsor's spouse (if any) at the time of the immigrant's application for SNAP assistance.

b. All other information which is determined questionable and which affects household eligibility and benefit level in accordance with procedures established in §1.6.2 of this Part for verifying questionable information.

c. While the agency representative is awaiting receipt and/or verification from the immigrant of information necessary to carry out the deeming provisions of this Section, the sponsored immigrant is ineligible until such time as all necessary facts are obtained.

(1) The eligibility of any remaining household members must be determined.

(2) The income and resources of the ineligible non-citizen (excluding the deemed income and resources of the immigrant's sponsor and sponsor's spouse) are considered available in determining the eligibility and benefit level of the remaining household members in accordance with §1.5.6 of this Part.

d. If the sponsored non-citizen refuses to cooperate in providing and/or verifying needed information, the other adult members of the non-citizen's household must be responsible for providing and/or verifying information required in accordance with the provisions of §1.6.7 of this Part.

(1) If the information and/or verification is subsequently received, the agency representative acts on the information as a reported change in household membership in accordance with the timeliness standards in §1.13.1 of this Part.

(2) If the same sponsor is responsible for the entire household, the entire household is ineligible until such time as needed sponsor information is provided and/or verified.

F. Enforcing Sponsor Liability Claims

1. A sponsor who has signed a legally binding affidavit of support on or after December 19, 1997 for an immigrant they sponsored may be liable for reimbursement of the value of SNAP benefits received by that sponsored immigrant.

a. Only the sponsors who signed binding affidavits of support (INS Form I-864) may be responsible for SNAP benefits received by immigrants they sponsor if those benefits were received during the period of time the affidavit of support was in effect.

b. The affidavit of support remains in effect until the sponsored immigrant becomes a naturalized citizen, can be credited with forty (40) qualifying quarters of work, is no longer an LPR and leaves the United States permanently, or until the sponsor or the sponsored immigrant dies.

(1) The sponsor is not responsible for benefits the sponsored immigrant receives after the support period has ended.

(2) If, however, benefits were received by sponsored immigrants during the period when the agreement was in effect, the sponsor or the sponsor's estate is liable to repay the cost of these benefits for ten (10) years after benefits were last received.

c. Sponsors who fail to support the immigrants they sponsor can be sued by government entities providing means-tested benefits as well as by the immigrants they sponsor.

(1) However, the agency cannot request reimbursement from the sponsor during any period of time that the sponsor receives SNAP benefits.

1.5.9Treating Lost Income Due to Noncompliance

A. The agency must ensure that, in most cases, there is no increase in SNAP benefits to households on which a sanction resulting in a decrease in benefits has been imposed for failure to comply with a requirement of a Federal, State, or local welfare program (for example, RIW) which is means-tested and distributes publicly funded benefits.

1. The procedures for determining SNAP benefits when there is such a decrease in benefits are as follows:

a. The agency will calculate the SNAP allotment using the other program's reduced benefit amount, then apply a twenty percent (20%) reduction to that allotment.

b. If the person is also non-compliant with work requirements of the SNAP, action is taken according to §1.11.5 of this Part, and the twenty percent (20%) reduction is not applied.

c. With the exception of agency error cases, if the household's other program benefit is subject to recoupment due to a prior over issuance, the full amount of that program's benefit will be used in the SNAP computation.

218 R.I. Code R. § 218-RICR-20-00-1.5

Amended effective 4/4/2019
Amended effective 12/24/2019
Amended effective 8/1/2021
Amended effective 9/23/2021
Amended Effective 12/4/2021
Amended effective 11/10/2022
Amended effective 1/1/2023
Amended effective 5/14/2023
Amended effective 10/1/2023
Amended effective 12/15/2023