M E M O R A N D U M

IM-61  05/21/99  POLICY FOR UTILITY COSTS IN AN UNOCCUPIED HOME


SUBJECT:
POLICY FOR UTILITY COSTS IN AN UNOCCUPIED HOME

   FOOD STAMP MANUAL REVISION #11
   SECTION 1115.035.25.35

 
DISCUSSION:
A policy clarification was received from the Food and Nutrition Service Regional Office regarding budgeting utility expenses when the household claims utility costs for an occupied and an unoccupied home.  If the household claims utility costs in an occupied home and an unoccupied home, budget actual utility costs for both homes.  If budgeting actual costs for the occupied and the unoccupied home, allow the telephone standard if the household incurs the cost of a telephone for either the occupied or the unoccupied home.  NOTE:  Regulations require verification of actual utility costs.

If the household claims utility costs only in the unoccupied home, budget the Non-Heating Cooling Standard (NHCS) for the unoccupied home.  The household is NOT entitled to the Standard Utility Allowance (SUA) for an unoccupied home.

If the household claims utility costs only for the occupied home and incurs a primary heating or cooling cost, budget the SUA for the household.  If the household incurs utility costs but is not responsible for primary heating or cooling costs, allow the NHCS.

Example:  The applicant owns a home which was damaged by fire and temporarily cannot live in the home.  The applicant claims a $200 per month mortgage payment and actual utility costs of $100 per month for the unoccupied home.  The applicant is living in an apartment until the home is repaired.  The applicant pays $150 per month rent and incurs utility costs of $75 per month.  Allow shelter costs of $525 ($200 mortgage payment and $100 for verified actual utility costs for the unoccupied home; $150 rent and $75 verified actual utility costs for the apartment).

Example:  Using the above example, the applicant claims $200 per month mortgage payment and actual utilities of $100 per month on the unoccupied home.  The applicant is living in an apartment and pays $250 per month rent which includes utilities.  The applicant incurs telephone costs for the occupied and the unoccupied homes.  Allow shelter costs of $556 ($200 mortgage payment and $80 NHCS for the unoccupied home; $250 rent for the apartment; and $26 Telephone Standard).

Example:  Using the above example, the applicant claims $200 per month mortgage payment and no utility costs for the unoccupied home.  The applicant is living in an apartment paying $250 per month rent and incurs utility costs of $75 for electricity to heat the apartment.  Allow shelter costs of $645 ($200 mortgage payment on the unoccupied home; $250 rent and $195 SUA for the apartment).

The Food Stamp Manual Section 1115.035.25.35 has been revised to reflect clarification of policy regarding an unoccupied home.

 
NECESSARY ACTION:
  • Discuss this memorandum with appropriate staff.

  •  
  • Immediately implement this policy when utility costs are claimed for an unoccupied home.

  •  
  • File the revised manual page.
HJK
Distribution #6

[ Memorandum Table of Contents ]


 
1115.035.25.30        Energy Assistance Payments
IM-#1   January 15, 1999

Energy assistance includes payments or allowances made under a federal law for the purpose of energy assistance.  These payments or allowances must be clearly identified as energy assistance by the legislative body authorizing the program or providing the funds.  For example, excluded federal payments are energy assistance payments provided through the Department of Health and Human Services, Low Income Energy Assistance Program.

Energy assistance payments are made in one lump sum to the household or the provider.

 1. Some households receive cash assistance from these programs.  Allow expenses paid by cash assistance as deductions when calculating shelter costs.  The expenses paid must be allowable expenses.

 2. Shelter expense met by any payment or allowance paid to the provider of the energy are considered an expense to the household when calculating shelter costs.


1115.035.25.35        Shelter Costs of a Vacated Home
IM-#61  May 21, 1999

Unless the household claims utility costs for an occupied home, use the NHCS in calculating the shelter costs for a vacated home not occupied by the household because of employment or training away from home, illness, or abandonment caused by a natural disaster or casualty loss.  If the household claims utility costs for an occupied and an unoccupied home, use actual utility costs for both homes.  If budgeting actual costs for both homes, allow the telephone standard if the household incurs the cost of a telephone for either the occupied or the unoccupied home.  The household must intend to return to the home for the shelter costs of the unoccupied home to be allowed as a deduction.  The home must not be leased or rented during the absence of the household.  The current occupants of the home, if any, must not be claiming shelter costs for food stamp purposes.  Charges for repair of the home damaged or destroyed due to a natural disaster may be allowed unless the household is reimbursed by public or private agencies, insurance or some other source.
 

1115.035.25.40        Homeless Shelter Costs
IM-#1   January 15, 1999

Use the NHCS in determining shelter costs for homeless households that incur or are billed for a utility expense for all or part of the month.  The household is not entitled to the NHCS if it is not billed for utility costs separately from the rent.

1115-36