By memorandum dated August 19, 1996, you asked us for an opinion on whether funds
provided by the Ohio Department of Mental Retardation and Developmental Disabilities
to subsidize the cost of maintaining individuals in community living arrangements,
rather than in institutions, could be excluded from income considered in determining
SSI eligibility and payment amount. In our opinion, for the reasons indicated below,
such payments are not "income" to the claimant for SSI purposes.
For the purpose of determining SSI eligibility, the income of an individual does not
include assistance based on need, furnished to or on behalf of the individual by a
State or political subdivision of a State. 42 U.S.C. § 1382a(b)(6). Furthermore, payments
such as those made by the Ohio Department of Mental Retardation and Developmental
Disabilities (ODMRDD) to subsidize the cost of maintaining individuals in community
living arrangements and allow for noninstitutional care of the type that is generally
provided in group homes or halfway houses, may be excluded from consideration as income
based on being social service assistance. Assistance provided in cash or in kind under
a Federal, State, or local governmental program whose purpose, as appears to be ODMRDD's
in this community living subsidy program, is to provide social service, is excluded
from income. 20 C.F.R. § 416.1103(b)(1) (1996). For SSI purposes, a social service
is any non-medical service intended to assist a handicapped or socially disadvantaged
individual to function in society on a level which is comparable to an individual
who is without such handicap or disadvantage. POMS SI 00815.050C.1. Social service programs include those whose goal is to prevent or reduce inappropriate
institutional care by providing for community-based care, home-based care, or other
forms of less intensive care. POMS SI 00815.050C.2.a.4. The ODMRDD's community living subsidy payments are clearly made to provide for
community-based or home-based care, as indicated by their Medicaid waiver, and meet
the definition of social service assistance. These payments should therefore be excluded
from income.