For eligible couples, the AV that results from the computation above is the AV of
ISM to each member. Multiply this amount by 2 and compare the result to the PMV for
a couple receiving no other ISM.
For an eligible child, when an absent parent provides the ISM, apply the onethird
exclusion explained in SI 00830.420B.2. to the AV and then compare this amount to the PMV and charge the lesser amount.
EXAMPLE 1: Conversion of a bill and household payment
Bernie and Alex Bell are cousins who are both supplemental security income (SSI) recipients.
They share the household operating expenses of the house in which they live. Bernie
Bell has ownership interest in the house, and receives a $1,300 real property tax
bill for a prospective 12month period beginning June 1. Bernie's sibling, who lives
elsewhere, pays $400 directly to the county in June; the cousins pay the remaining
$900. After the Claims Specialist (CS) converts the CMV to $108.33 ($1,300 divided
by 12), the CS also converts the household payment to $75 ($900 divided by 12). The
CS then computes the AV to them as follows:
Converted CMV $108.33
Less Converted Household Payment Toward Item  $75.00
Balance = $33.33
Divided by Two Household Members 2
Actual Value to Each beginning June 1 = $16.66
NOTE: The CS divides the household payment of $900 by 12, just as it divided the vendor
charge by 12. It is immaterial whether Bernie and Alex split the household payment
equally; both receive the same amount of outside ISM.
EXAMPLE 2: Computing AV of ISM to a Couple
Bruce O'Neill is an eligible recipient who lives with their eligible spouse, Gracie,
in a home they own jointly. The only other household member is their 25yearold child.
Each March, an adult son (who lives elsewhere) pays all of their annual real property
taxes. These taxes, due in March, are $1,300 and cover services for the following
12 months. Thus, the O'Neill’s receive ISM from outside their household in each month
of the year (See SI 00835.474B. and SI 00835.360). To compute the amount of ISM to charge the couple, the CS performs the following
calculation for the period beginning April 1, 2010.

1.
Vendor Charge (annual taxes) $1,300.00

2.
Divide by 12 = Converted CMV of $108.33

3.
Less Household Payment  0 = $108.33

4.
Divide by 3 household members = Actual Value to each $36.11

5.
Multiply by 2 = Actual Value to couple $72.22
Since this AV is less than the couple's PMV, the couple's “H” income is $72.22.
EXAMPLE 3: Third Party Vendor Payment Involving an Arrearage
Bessie Marshall, an ineligible parent, has two eligible children, Karen and Jacob.
Bessie also has two ineligible children. They all live in an apartment, which Bessie
rents for $210 per month. In February 2010, Bessie's sibling(who lives elsewhere)
pays part of Bessie's rent ($150) to help Bessie out. This payment is a gift, and
the sibling sends it directly to the landlord. Bessie pays an additional $35 and still
owes $25. Bessie elects rebuttal and furnishes evidence of these facts. The CS computes
ISM from outside the household to the two eligible children as follows.
1.

Rent Due

$210.00

2.

Rent Arrearage

$25.00

3.

Converted CMV

$185.00

4.

Less Household Payment

 $35.00

5.

Balance (Paid by Third Party)

$150.00

6.

Divided by 5 Household Members

÷ 5

7.

Actual Value to Each

$30.00

Since $30 is less than the PMV for a recipient, we charge each disabled child “H”
income of $30 for February, the month in which the third party makes the vendor payment.
EXAMPLE 4: Individual Receives both Inside and Outside ISM
Michael O'Keefe, an eligible recipient, lives in a household with three other persons.
A third party outside the household pays the entire mortgage of $235, directly to
the bank. The household expenses are $407. (NOTE: These expenses do not include the mortgage paid by the third party.) Michael is not
paying the pro rata share ($101.75) of all household operating expenses, but Michael
is paying their share ($50) of the food expenses for the household ($200) with an
earmarked contribution of $60. Therefore, Michael is federal living arrangement (FLAA)
based on contributing an earmarked share of household food costs.
This case has issues of both ISM from within the household (in the form of shelter)
and ISM from outside the household (in the form of a third party vendor payment resulting
in shelter). The computation of ISM from within the household is as follows.
1.

Total Household Operating Expenses

$407.00

2.

Divided by Number of Household Members

÷ 4

3.

Michael's Pro Rata Share

= $101.75

4.

Less Michael's Contribution

 $60.00

5.

Actual Value

= $41.75

6.

The computation of ISM from outside the household is: CMV of Mortgage

$235.00

7.

Less Household Payment

 0

8.

Balance

= $235.00

9.

Divided by Number of Household Members

÷ 4

10

Actual Value

$58.75

11.

Add the two results:


12.

Actual Value of ISM From Within

$41.75

13

Actual Value of ISM From Outside

+ $58.75

14.

Total Actual Value

$100.50

Since the total AV is less than the PMV for an individual, the CS charges Michael
“H” income of $100.50.