Identification Number:
SI 00835 TN 85
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Living Arrangements and In-Kind Support and Maintenance
Type:POMS Transmittals
Program:Title XVI (SSI)
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part SI – Supplemental Security Income
Chapter 008 – Income
Subchapter 35 – Living Arrangements and In-Kind Support and Maintenance
Transmittal No. 85, 06/25/2019

Audience

FO/TSC: CS, CS TXVI, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

OISP

Effective Date

Upon Receipt

Background

This is a Quick Action Transmittal. These revisions do not change or introduce new policy or procedure.

Summary of Changes

SI 00835.150 Separate Purchase of Food

Changed "MSSICS" to "SSI Claim System" throughout this document to reflect the new claim system, per modernization updates. The term “Non-MSSICS” has not changed.

Subsection B.1.b. - Under "NOTE" added "a" between "on a DROC".

 

SI 00835.160 Sharing

Changed "MSSICS" to "SSI Claim System" throughout this document to reflect the new claim system, per modernization updates. The term “Non-MSSICS” has not changed.

 

SI 00835.380 Rental Subsidies

Changed "MSSICS" to "SSI Claim System" throughout this document to reflect the new claim system, per modernization updates. The term “Non-MSSICS” has not changed.

 

SI 00835.500 First-of-the-Month (FOM) Residence and ISM Determinations

Changed "MSSICS" to "SSI Claim System" throughout this document to reflect the new claim system, per modernization updates. The term “Non-MSSICS” has not changed.

Subsection C.2. - Updated language in the 1st bullet from "ISM to one person" to "ISM only to the claimant". The change was completed to reflect the update that took place within SI 00835.400 as of 10/2015.

Subsection G – Updated references with the actual POMS title.

SI 00835.150 Separate Purchase of Food

A. Policy

1. Separate Purchase of Food — General

  1. a. 

    Separate purchase of food exists when an individual (or at least one member of an eligible couple) physically shops for his/her own food or gives instructions and money to someone to buy the food for him/her. Any ISM received is subject to the PMV rule (SI 00835.300, SI 00835.320).

  2. b. 

    An individual is not subject to the VTR when he/she separately purchases food during a month because the individual does not receive both food and shelter from the household in which he/she resides.

2. Situations Where Separate Purchase of Food Exists

  1. a. 

    Separate purchase of food can exist when an individual shops for his/ her own food but does not use his/her own money. The money used to buy the food may constitute cash income (SI 00810.020).

  2. b. 

    Separate purchase of food can exist when the individual uses the same condiments or facilities (e.g., refrigerator, stove) as the rest of the household, or consumes meals at the same time as the rest of the household.

  3. c. 

    Separate purchase of food can exist when an eligible spouse or a person whose income may be deemed to the individual buys food on behalf of the individual, but not necessarily only for the individual.

    Example: Child Gets Food Only from Parent

    Donald Weston, an eligible child, lives with his mother, his brother, and his grandparents. His grandparents own the home and pay all of the shelter expenses for the household. Donald's mother, who works part time, buys all of the food for the household. Even though Donald does not separately purchase his own food with his own money, he is determined to be separately purchasing his own food because his mother (deemor) purchases all of his food. The VTR does not apply because Donald does not receive both food and shelter from the household. Development must be done to determine whether Donald receives ISM in the form of shelter.

3. Separate Purchase of Food in the Sequence of Living Arrangement Development

As a step in the sequence of household LA development, consider separate purchase of food when:

  • The individual lives in a household with at least one person who is not a spouse, a child (as defined in SI 00501.010), or person whose income is deemable to the individual, and

  • The individual, living-with spouse, or deemor does not have ownership interest (SI 00835.110) or rental liability (SI 00835.120), and

  • A public assistance household does not exist (SI 00835.130), and

  • The individual (or both members of an eligible couple) eats meals in the household during a month. If the individual alleges eating no meals in the household, see SI 00835.140,and

  • The individual or at least one member of an eligible couple alleges buying his/her food apart from the food of other household members.

B. Procedure — developing/documenting separate purchase

1. Developing/Documenting Separate Purchase — General

  1. a. 

    Obtain the individual's signed statement regarding separate purchase of food.

  2. b. 

    Verify the individual's allegation of separate purchase using:

    • a signed statement from a knowledgeable adult member of the household other than the individual's spouse; or

    • documentation of a contact with a knowledgeable adult member of the household other than the individual’s spouse on a DROC screen within the SSI Claims System.

    NOTE: If the individual is the householder, the individual’s statement, signed or on a DROC, is sufficient documentation.

  3. c. 

    If separate purchase of food is established, develop whether the individual gets ISM from within the household in the form of shelter (SI 00835.340).

2. Posteligibility Requirements

  1. a. 

    Verify separate purchase per SI 00835.150B.1. above only when:

    • The individual alleges separate purchase during a redetermination and the allegation cannot be confirmed by reference to the SSI Claims System, to the SSR, or through review of a prior file, if available. The allegation of separate purchase is confirmed by the SSR if the LA code is “A” and the CG field shows “LA 71” (SM 01005.525C.); or

    • The individual changes residence and alleges separate purchase for the new residence; or

    • The individual alleges having begun to separately purchase in the same residence.

  2. b. 

    If separate purchase is established, develop whether the individual gets ISM from within the household in the form of shelter (SI 00835.340).

SI 00835.160 Sharing

A. Policy for sharing and the value of the one-third reduction VTR

A sharing arrangement exists when an individual's contribution equals or exceeds his or her pro rata share of the household operating expenses, provided the household expenses include both food and shelter.

An individual is not subject to the value of the one-third reduction (VTR) when sharing exists. This is because the individual is paying the pro rata share for the food and shelter he or she receives from the household.

B. Policy when sharing applies

Consider sharing only when you have ruled out each living arrangement basis that is higher on the list of sequential development per SI 00835.001.

Consider sharing when all of the following circumstances apply:

  • The individual lives in a household with at least one person other than a spouse, child, as defined in SI 00501.010, or person whose income is deemable to the individual;

  • The individual (or living-with spouse or deemor) does not have ownership interest or rental liability. (For home ownership, see SI 00835.110 or for rental liability, see SI 00835.120);

  • A public assistance household does not exist, see SI 00835.130;

  • The individual (or both members of an eligible couple) does not separately consume his food, see SI 00835.140;

  • The individual (or both members of an eligible couple) does not separately purchase his food, see SI 00835.150; and

  • The individual contributes toward the household operating expenses and these expenses include food and one or more shelter items.

C. Procedure for computing sharing

1. Performing the sharing computation

To perform the sharing computation:

  1. a. 

    Determine the average household operating expenses, see SI 00835.465 and SI 00835.475;

  2. b. 

    Determine the household composition, see SI 00835.485;

  3. c. 

    Determine the pro rata share by totaling the household operating expenses and dividing by the number of household members. Assume that all members of the household share in the food unless you obtain information to the contrary;

  4. d. 

    Determine the individual’s pro rata share if a member of the household does not share in the food:

    • separately determine the pro rata share for the food without that member;

    • determine the pro rata share for shelter; then

    • add these pro rata shares together to determine the individual's pro rata share;

  5. e. 

    Determine the eligible individual's average monthly contribution, see SI 00835.480 and SI 00835.210; and

  6. f. 

    Compare the contribution to the pro rata share. If the contribution equals or exceeds the pro rata share, a sharing arrangement exists and the individual is in Federal Living Arrangement A (FLA/A).

2. Five-dollar tolerance rule

If the eligible individual's contribution is within $5 of the pro rata share, consider the contribution and the pro rata share equal. Determine that sharing exists and the individual is in FLA/A. (e.g., sharing exists if the pro rata share is $150.00 and the contribution is $145.00 or more.)

NOTE: To determine sharing, a couple’s contribution must be within $5 of their combined pro rata share in order for sharing to apply.

D. Procedure for curtailed development of sharing

An individual's allegation in the SSI Claims System is sufficient documentation that the VTR applies when the file reflects one of the following situations during an initial claim, post-eligibility event, or redetermination situation:

1. Documenting a zero contribution in the SSI Claims System

If the individual alleges making no cash payment toward the household operating expenses, curtail development of sharing. For actions processed in the SSI Claims System:

  1. a. 

    Record the individual’s allegations on the “Household of Another” page.

    NOTE: The individual’s answers on the Household of Another page are sufficient documentation of a zero contribution. For guidance on completing the Household of Another page, see MS INTRANETSSI010.014;

  2. b. 

    Assume that the household operating expenses include both food and shelter; and

  3. c. 

    Determine that the VTR applies and no further development is needed.

2. Documenting a token contribution in the SSI Claims System

If the individual alleges his or her contribution does not equal the pro rata share:

  1. a. 

    Document the individual’s allegations on the Household of Another page.

    NOTE: The individual’s answers on the Household of Another page are sufficient documentation of a token contribution;

  2. b. 

    Ask if the individual is earmarking the contribution.

    NOTE: If the individual is earmarking, to develop see SI 00835.170, “Earmarked Sharing”;

  3. c. 

    If the individual alleges that the contribution is not earmarked, update the Household of Another page accordingly.

    NOTE: The individual’s answers on the Household of Another page are sufficient documentation that the contribution is not earmarked;

  4. d. 

    Assume that the household operating expenses include both food and shelter; and

  5. e. 

    If you determine that the VTR applies, you do not need to develop further.

3. Documenting a zero or token contribution on a non-MSSICS case

For actions processed outside of the SSI Claims System, use form SSA-8006-F4 (Statement of Living Arrangements, In-Kind Support and Maintenance) or the SSA-795, (Statement of Claimant or Other Person), to document an allegation of a zero or token contribution and an allegation that the individual is or is not earmarking a contribution. Document the issue by faxing the paper form into the appropriate electronic folder and dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

NOTE: The SSA-8006-F4, if used, has questions that document earmarking. A signature is no longer required on an SSA-8006-F4 when the Claims Representative completes the interview via the telephone. The SSA-8006-F4 is not a self-help document. Therefore, completion of the form will always involve a face-to-face or telephone interview between the adjudicator and individual or representative payee.

E. Procedure for documenting household expenses and contributions when full sharing development is needed

1. Document individual’s allegations

If you cannot curtail sharing development per SI 00835.160D in this section, document the individual’s allegations about household operating expenses and his or her contribution on the Household of Another page in the SSI Claims System.

2. Verification of the household operating expenses and contributions

Verification consists of:

  • Verifying the household operating expense and contribution alleged by the eligible individual on the Household of Another page in the SSI Claims System with the householder or knowledgeable adult member other than the eligible individual’s spouse. Document his or her verification statement on a report of contact (DROC) screen; or

  • If the householder or knowledgeable adult member is not reachable for an interview via the telephone or face-to-face, obtain a signed statement on an SSA-8011-F3 (Statement of Household Expenses and Contributions) regarding each household operating expense and the eligible individual’s contribution. Document the issue by faxing the paper form into the appropriate electronic folder and dispose of the paper form. For additional instructions for the SSA-8011-F3, see SI 00835.625B.

3. Documenting expenses and contributions for non-MSSICS cases when full development is needed

For actions processed outside of the SSI Claims System, use the:

  • SSA-8006-F4 to record the individual’s allegations, and

  • SSA-8011-F3 for the verification by the householder.

Document both by faxing the paper forms into the appropriate electronic folder and then, dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

F. Procedure for documenting household expenses and contributions using the $20 rule

1. When verification is required under the $20 rule

Obtain verification of household operating expenses and contributions from the householder if the eligible individual’s alleged contribution is within $20 of the pro rata share.

Do not obtain verification of the household operating expenses and contributions if the difference between the alleged contribution and the pro rata share is $20 or more.

2. Alleged pro rata share exceeds the alleged contribution by $20 or more

When the alleged pro rata share exceeds the contribution by $20 or more:

  • Determine that sharing does not exist;

  • Verification from a knowledgeable adult household member is not needed;

  • Ask if the individual is earmarking the contribution. If the individual is earmarking, see SI 00835.170, “Earmarked Sharing” to develop; and

  • If the individual alleges no earmarking, complete the Household of Another page accordingly and determine that the VTR (FLA/B) applies. The individual’s answers on the Household of Another page are sufficient documentation for establishing that earmarking does not apply.

NOTE: For actions processed outside of the SSI Claims System, on paper forms, for example, on an SSA-8006-F3, use the DROC screen to document that the individual is not earmarking. Document the issue by faxing the paper form into the appropriate electronic folder and dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

3. Alleged contribution exceeds the alleged pro rata share by $20 or more

When the alleged contribution exceeds the pro rata share by $20 or more:

  • Determine that sharing exists;

  • Verification from a knowledgeable household member is not needed; and

  • Cease development unless the individual alleges a prepaid contribution. If there is an allegation of a prepaid contribution, see instructions on computing the monthly contribution amount in SI 00835.480.

4. Alleged contribution is within $20 of the pro rata share

When the alleged contribution is within $20 of the pro rata share:

  • Verification of the household expenses and contributions is needed following the instructions in SI 00835.160E, in this section;

  • Determine that a sharing arrangement (FLA/A) exists if the individual's contribution is within $5 of the pro rata share;

  • Determine that the VTR (FLA/B) exist if the pro rata share exceeds the contribution by more than $5 unless the individual alleges earmarking the contribution;

  • If the individual alleges earmarking, see SI 00835.170 to develop;

  • If the individual alleges no earmarking, document the allegation on the Household of Another page. The individual’s answers are sufficient documentation that the contribution is not earmarked; and

  • When the alleged contribution is within $20 of the pro rata share, determine that the VTR applies if verification of household operating expenses and contributions cannot be obtained from the householder or a knowledgeable member of the household.

G. Examples of sharing determinations

EXAMPLE 1: Pro rata share exceeds the contribution by $20 or more

Mr. Gascon, an eligible individual, lives in an apartment with Mr. Simon and Mr. Biffel. The lease is in Mr. Simon's name.

Mr. Gascon alleges the household operating expenses are $450 per month and he contributes $100 per month. He also alleges he does not earmark his contribution.

NOTE: Document the claimant’s allegation on the Household of Another page in the SSI Claims System.

The alleged pro rata share is $150. Because the alleged pro rata share exceeds his alleged contribution by at least $20, the adjudicator determines that Mr. Gascon is receiving ISM valued at the VTR (FLA/B applies). No verification from the householder or knowledgeable household member is required.

EXAMPLE 2: Contribution exceeds the pro rata share by $20

Similar to Example1, except that Mr. Gascon alleges contributing $175 per month. Because his alleged contribution exceeds the pro rata share by at least $20, we determined Mr. Gascon to be in a sharing arrangement (FLA/A applies). No verification from the householder or knowledgeable household member is required.

EXAMPLE 3: Contribution is within $20 of the pro rata share

Similar to the above examples, except Mr. Gascon alleges contributing $140 per month. Because this alleged contribution is within $20 of the pro rata share, the file must contain verification of the household operating expenses and Mr. Gascon's contribution.

Obtain a signed statement (SSA-8011-F3) or document the verification statement on a report of contact (DROC) screen in the SSI Claims System from Mr. Biffel (householder or a knowledgeable adult householder member other than the eligible individual’s spouse). Mr. Biffel states that Mr. Gascon contributes $140 per month and that the household operating expenses total $435 per month.

Using these verified amounts, the CR determines the pro rata share is $145. Because Mr. Gascon's contribution of $140 per month is within $5 of the pro rata share, a sharing arrangement is found to exist (FLA/A with no ISM applies).

EXAMPLE 4: Eligible child sharing determination

Samantha, an eligible child, lives with her mother, her younger sister, and her grandmother in a home owned by the grandmother. The CR determines that Samantha's mother does not have rental liability and that public assistance household, separate purchase, separate consumption, and earmarking do not apply.

Although Samantha lives with her mother and sister, the CR must develop sharing because they live in the household of another (the grandmother's home).

Samantha's mother does not contribute any of her own money toward the household operating expenses. Samantha's mother alleges that $150 per month from Samantha’s SSI goes toward total household operating expenses of $1200 per month. Samantha's contribution does not meet her $300 pro rata share, so the CR determines that the VTR applies.

Because Samantha's contribution is not within $20 of the pro rata share, verification from a householder or knowledgeable household member is not required.

NOTE: Although Samantha lives in her grandmother's home, we still consider her to be living with her mother for deeming purposes.

EXAMPLE 5: Eligible child sharing determination

Same situation as in Example 4, except that Samantha's mother now also contributes $600 of her own funds toward the household expenses. Following the procedure in SI 00835.210, “The One-Third Reduction Provision and Deeming,” the CR allocates the mother's contribution as follows:

  • allocates $300 to cover the mother's own pro rata share;

  • divides the excess $300 equally between Samantha and her sister, and the resulting $150 is considered a contribution by Samantha;

  • adds this amount to the $150 that Samantha contributes from her SSI check, resulting in a total contribution by Samantha of $300 per month; and

  • determines that sharing exists (FLA/C) and the VTR does not apply once he or she obtains verification of the $300 pro rata share and $300 contribution.

Because Samantha's alleged total contribution is within $20 of the pro rata share, verification by a householder or knowledgeable household member other than the eligible individual’s spouse is required.

The CR documents the contact with the grandmother on a DROC screen; if the grandmother is not available by phone or in person, the CR mails an SSA-8011-F3 to obtain verification of sharing over the grandmother’s signature.

H. References

  • SI 00835.210, The One-Third Reduction Provision and Deeming

  • SI 00835.340, Computation of In-Kind Support and Maintenance from Within a Household

  • SI 00835.465, ISM and Households - Household Costs

  • SI 00835.480, Contributions Toward Household Operating Expenses

  • SI 00835.600, SSA-8006-F4 – Statement of Living Arrangement, In-Kind Support and Maintenance

  • SI 00835.625, SSA-8011-F3 – Statement of Household Expenses and Contributions

SI 00835.380 Rental Subsidies

A. When to develop a subsidy

Develop for a possible rental subsidy only if:

  • sequential living arrangement (LA) development shows that someone in the household has rental liability and the value of one-third reduction (VTR) does not apply; and

  • someone in the household is related as a parent or child to the landlord or landlord's spouse.

Reference :

SI 00835.005 - Sequential Development of Living Arrangement and In-Kind Support and Maintenance – Flowchart.

B. Definitions of terms used in rental subsidy situations

Most terms used in connection with rental subsidies are defined in SI 00835.020. However, the following definitions are unique to this section.

1. CMRV under rent control

The Current Market Rental Value (CMRV) under rent control is the maximum rent chargeable to the current tenant under the applicable rent control law.

2. Required rent

The required rent is the amount required by a landlord under the terms of the rental agreement, regardless of the source(s) of payment.

3. Rent prepayment

A rent prepayment is a payment that meets the definition of rent and exceeds the monthly required rent. A rental prepayment can offset the amount of a rental subsidy, wholly or in part, depending on the amount.

4. Child

A child is a natural or adopted child, or a stepchild, regardless of age.

5. Parent

A parent is a natural or adoptive parent, or the spouse of such a parent. If the natural or adoptive parent dies, a surviving step-parent is not considered a parent or spouse of a parent.

6. Rental subsidy

An individual receives in-kind support and maintenance (ISM) in the form of a rental subsidy when the required rent (including a flat fee payment) is less than the amount charged under a business arrangement.

7. Business arrangement

A business arrangement exists when the monthly required rent or flat fee payment equals the CMRV of the residence.

Exception in the S econd and S eventh circuits and Texas - In the States of Connecticut, New York, Vermont, Illinois, Indiana, Wisconsin, and Texas, a business arrangement exists when the required rent or flat fee payment equals or exceeds the applicable presumed maximum value (PMV). If the required rent or flat fee payment is less than the PMV, the value of a subsidy is the difference between the required rent or flat fee payment and the lesser of the PMV or the CMRV. For instructions for processing cases in Texas, please see “Rental Subsidies for Residents of Texas Effective May 1, 1996” SI DAL00835.380.

C. Procedure for developing possible rental subsidy

Apply this procedure to both initial claim and posteligibility situations. Follow the steps in sequence.

1. Identify a parent/child relationship

Ask the individual whether anyone in the household (including any member who is temporarily absent) is a parent or child of the landlord or landlord's spouse. Document the response on the Home Ownership and Rental Liability page or on an appropriate form. For guidance on completing the Home Ownership and Rental Liability page see, MS INTRANETSSI 010.012.

  • If the individual is unwilling or unable to answer, obtain the information from the landlord, the landlord's spouse, or his authorized agent.

  • If the answer is “no”, determine that a business arrangement exists and there is no rental subsidy.

  • If the answer is “yes”, go to 2.

2. Contact the landlord

Contact the landlord for information on the required rent, estimated CMRV, and the reason for accepting a reduced rent, if any. See 3, 5, and 7 below for separate instructions even though you ask for all three items via a single request.

3. Obtain the required rent

Obtain information about the amount of the required rent from the landlord and document the file.

  • If you make contact with the landlord face-to-face or by telephone, explain that rental subsidy can occur when the required rent is less than the amount the landlord would charge other renters. If a rental subsidy exists, explain that we may make either lower payments or none at all.

  • Record the landlord’s responses to the rental subsidy issue on the Home Ownership and Rental Liability page in the SSI Claims System. Document on the DROC screen in the SSI Claims System (e.g., “CR spoke with landlord and the Home Ownership and Rental Liability page has been updated.”). For guidance on completing the Home Ownership and Rental Liability page see, MS INTRANETSSI 010.012.

  • When it is not feasible to use DROC, use form SSA-L5061 to document the landlord’s response. For instructions on completing the form, storing, or electronically documenting the information obtained on the SSA-L5061, please see SI 00835.382, “Form SSA-L5061 (Letter to Landlord Requesting Rental Information)”.

  • If the individual lives in Connecticut, New York, or Vermont (Second Circuit), or Illinois, Indiana, or Wisconsin (Seventh Circuit) or Texas see 4; otherwise, go to 5.

For more information on storing forms electronically, refer to GN 00301.322 “Retention of Paper Material After Faxing into Either the eDIB folder or Claims Folder using NDRed”.

4. Make a determination for Second or Seventh Circuit cases or Texas

  1. a. 

    For residents of the Second and Seventh Circuits or Texas, determine that there is no rental subsidy if the required rent equals or exceeds the applicable PMV. No further development is needed.

  2. b. 

    If the required rent is less than the PMV, go to 5.

    NOTE : For residents of Texas, please refer to “Rental Subsidies for Residents of Texas Effective May 1, 1996” – SI DAL00835.380.

5. Obtain the estimated CMRV

Contact an appropriate source for information about the current market rental value (CMRV) for the shelter:

  1. a. 

    Landlord - Using the same procedure as in SI 00835.380C.3. in this section, contact the landlord for an estimate of the CMRV. Accept whatever estimate the landlord gives you and document the file as stated in subsection 3. (first bullet).

  2. b. 

    Other knowledgeable source - If the landlord is unable or unwilling to provide a CMRV estimate, contact another knowledgeable source (e.g., a real estate firm or rental management agency) dealing with similar neighborhoods to obtain the CMRV for similar shelter.

    • Provide the source with an explanation of rental subsidy as described in 3. (first bullet) in this section; and

    • Document the landlord’s response using the instructions provided in 3. (second and third bullet) in this section.

6. Compare the required rent with the CMRV

  1. a. 

    If the required rent equals or exceeds the CMRV, determine that there is no rental subsidy. No further development is needed.

  2. b. 

    If the required rent is less than the CMRV go to 7.

7. Find the reason for reduced rent

Obtain the landlord's statement about the reason for accepting a reduced rent, following SI 00835.380C.3. in this section.

If the landlord’s reason is:

  • rent control, obtain a copy of the most recent rent control document showing the maximum amount of rent chargeable to the tenant. If the landlord is charging that amount, determine that no rental subsidy exists;

  • that the tenant performs services in return for shelter, go to SI 00835.390 “Food or Shelter that is Remuneration for Work but is Not Wages”;

  • that excludable public housing assistance makes up the difference between the CMRV and the amount the household must pay, see SI 00830.630 “Federal Housing Assistance”; or

  • none of the above, or if the landlord is unable or unwilling to provide a reason, go to 8.

8. Determine the amount of rental subsidy

  1. a. 

    General - If the required rent is less than the CMRV, subtract the amount of required rent from the CMRV to determine the rental subsidy.

  2. b. 

    Exception - For residents of the Second and Seventh Circuits, determine the amount of rental subsidy by subtracting the amount of required rent from the lesser of the applicable PMV or the CMRV.

9. Identify additional development

If there is any indication of prepayment, see SI 00835.380E in this section. For computation of the subsidy’s AV if the individual rebuts the PMV, go to SI 00835.380F.

D. Procedure for developing rental prepayments

Use this procedure when there is an indication of rental prepayment. For any given month, apply the prepayment first to any part of the required rent not paid separately. Unless the prepayment is designated, use any remaining prepayment to offset the subsidy for that month.

1. Verifying the required rent and the CMRV

Verify the required rent and CMRV using SI 00835.380C.3. and 5. above unless there is current information in file (i.e., obtained within the last 4 months).

RATIONALE:  A prepayment or increase in payment may indicate an increase in the CMRV or required rent.

2. Month(s) covered by prepayment

  1. a. 

    Apply the prepayment to the months and in the amounts designated by the payer. To compute the actual value (AV) of any rental subsidy in the prepayment period, see SI 00835.380E.4. Substitute “designated prepayment” for “prepayment” in Step 1.

  2. b. 

    If the prepayment is undesignated, determine the month in which the individual made the prepayment. Treat that month as the first month of the prepayment period and go to SI 00835.380E.2. or 3, as appropriate, to compute the length of the prepayment period and the AV of any rental subsidy in that period.

E. Procedure for computing the actual value (AV) of the rental subsidy

Select the applicable method below to determine the actual value of an individual's or couple's portion of a rental subsidy. Document the file.

In all of the subsections below, for residents of the Second and Seventh Circuits and Texas , substitute the applicable PMV for the CMRV if the PMV is lower.

1. No prepayment

Use the following method if there is no prepayment involved.

NOTE: If the case is processed in the SSI Claims System, the computation of rental subsidy is done by the SSI Claims System.

STEP

ACTION

ENTRY

COMMENT

1

Enter monthly CMRV

 

$       

 

2

Subtract monthly required rent

-$       

An arrearage does not affect the monthly required payment.

3

Enter the difference

$       

AV of subsidy to household.

4

Divide by number in household

 

÷       

 

5

Enter the result

 

$       

AV to each household member. For an individual, go to 8. For an eligible couple, go to 6.

6

Multiply by 2

x 2

 

7

Enter result

$       

AV of subsidy to couple.

8

Enter lesser of AV or applicable PMV

 

$       

Amount to charge for subsidy.

2. Undesignated prepayment/no monthly rental payment

When any household member makes an undesignated prepayment but no household member makes a monthly payment, use the following method:

  1. a. 

    Divide the prepayment by the CMRV. The result is the number of whole months for which there is no rental subsidy.

  2. b. 

    If the division in a. above does not result in an even number of whole months:

    • multiply the decimal remainder by the CMRV to arrive at the amount of rent prepaid for the final month of the prepayment period;

    • subtract the greater of the prepayment remainder amount or the required rent from the CMRV; and

    • proceed as in steps 4-8 of the chart in 1. above.

EXAMPLE:  A household consists of an eligible individual and one other person living in an apartment that is owned by the eligible individual's son.

The apartment has a CMRV of $200 and the required rent is $100.

In April, the eligible individual makes a single undesignated payment of $650; the household makes no other rent payment until September.

  • Dividing the $650 prepayment by the $200 CMRV gives us 3.25 months of prepayment. Therefore, the household does not receive any rental subsidy for 3 full months (April, May, and June).

  • Multiplying the $200 CMRV by the .25 remainder yields a $50 prepayment applicable to July, the fourth month.

  • Subtracting the greater of the prepayment remainder ($50) or the required rent ($100) from the $200 CMRV results in a $100 subsidy.

  • Dividing the $100 subsidy by the 2 household members results in $50 AV of the subsidy to the eligible individual.

  • Because this is less than the PMV, we charge $50 as the subsidy.

3. Undesignated prepayment/monthly required rental payment

If any household member makes an undesignated prepayment and there is also payment of the monthly required rent, use the following method:

  1. a. 

    Divide the prepayment by the amount of the rental subsidy being charged (i.e., the difference between the CMRV and the required rent). The result is the number of months for which there is no subsidy.

  2. b. 

    If the division in a. above does not result in an even number of whole months:

    • multiply the decimal remainder by the rental subsidy to arrive at the amount of rent prepaid for the final month of the prepayment period;

    • subtract the rent prepaid for the final month from that month's rental subsidy; and

    • proceed as in steps 4 - 8 of the chart in 1. above.

4. Worksheet for a designated prepayment or prepayment plus changes in rent factors

Use of the following worksheet is optional. You may use it in any rental prepayment situation, selecting applicable entries. You are likely to find it most helpful in those situations where, in addition to a prepayment, there is a change in the CMRV, the required rent, or the amount paid on a recurring basis.

                                              WORKSHEET FOR MO/YR      /    

STEP

ACTION

ENTRY

COMMENT

1

Enter the prepayment

 

$      

You may use a dollar product from first bullet in this section at SI 00835.380F.2.b. or F.3.b., or the 7.b. remainder below.

2

Add any other payment

 

+$       

 

3

Enter the total

$       

Month's rental payment.

4

Enter the required rent

$       

 

5

Enter the CMRV

$       

 

6

Subtract the greater of the amounts in 3 or 4

 

-$____   

 

7

Enter the difference

 

$       

  1. a. 

    If the difference is positive, this is the AV of subsidy to household. Go to 8.

  2. b. 

    If the difference is negative, there is no subsidy for month. Enter the amount as a positive figure at 1 and repeat for as many months as needed to produce zero or a positive balance.

8

Divide 7a. balance by the number in the household

 

÷       

 

9

Enter the result

 

$       

AV to each household member.
 
For an individual, go to 12. For an eligible couple, go to 10.

10

Multiply by 2

x 2

 

11

Enter the result

$       

AV of subsidy to couple.

12

Enter the lesser of the AV or PMV

 

$____      

Amount to charge for subsidy.

F. References

  • SI 00835.120A.5. – Rental Liability as LA Basis -- Flat fee payments

  • SI 00835.120B – Rental Liability as LA Basis -- Landlord defined

SI 00835.500 First-of-the-Month (FOM) Residence and ISM Determinations

A. Introduction

The first-of-the-month rule is an adjudicative expedient. It eliminates the need to develop ISM in each residence during a month when an individual moves.

B. Policy — FOM and ISM

1. First of the Month Rule

When an eligible individual changes his/her place of residence during a month, the ISM (if any) is based on the permanent residence as of the first moment of the month.

2. First of Month Residence

  1. a. 

    An individual's FOM residence is his/her permanent residence as of the first moment of the calendar month.

  2. b. 

    An individual may be physically absent from FOM residence without affecting applicability of this section. This may be due to a temporary absence (SI 00835.040) or to the circumstances described in SI 00835.500E.2. below.

3. FOM Rule's Relationship to Throughout-a-Month Requirements

The FOM rule does not affect or supersede the throughout-a-month requirements related to:

C. When to use the FOM rule

1. When the FOM Rule Applies

The FOM rule applies to ISM in any month in which an individual or couple has a permanent residence as of the first moment of the month and moves during the month.

2. When the FOM Rule Does Not Apply

The FOM rule does not apply to:

  • ISM only to the claimant (SI 00835.400) since such ISM is often not residence related and can be received at any point in a month; or

  • individuals who do not have a permanent residence (transients).

    Example: Mr. Jones, a transient (SI 00835.060), lived in 3 residences in June including a week in the county jail, and received ISM in all three places. Because he had no permanent residence, the FOM rule does not apply. The ISM from all 3 residences is countable for June under the PMV rule.

D. Procedure — developing FOM residence

1. FOM Residence Apparent

Do not undertake any special documentation if the FOM residence is apparent from information in the file.

2. FOM Residence Not Apparent

If the FOM residence is not apparent because the individual was in the process of moving to a new permanent residence, but was not physically occupying it:

  • Obtain the individual's signed statement of intended physical FOM residence and the reason that he/she did not occupy it as of the first moment of the month (e.g., individual was in the hospital, the house was not ready for occupancy, individual moved on the first day of the month, etc.); and

  • Accept available evidence, if any, of intent (e.g., householder's statement, rental agreement, etc.); and

  • record your FOM determination within the SSI Claims System or on a paper Report of Contact.

E. Procedure — evaluating ISM for month of residence change

1. General Rules

  1. a. 

    When an individual changes his/her place of residence during a month, ISM is valued based on the permanent residence as of the first moment of the month.

    Example: The eligible individual's permanent living arrangement is an apartment in which he pays for all of his food and shelter. On 08/06/ 98, he moves to a house with several roommates who provide him with both food and shelter. Under the FOM rule, the field office determines the ISM based on the individual's residence as of the first moment of the month of August. Thus, he is not charged ISM for August.

  2. b. 

    Use the PMV rule to charge an individual with a month's worth of ISM received in the FOM residence just as if he/she had lived there the entire month. We determine the ISM as if the individual lived in the FOM residence for the entire month.

    Example: An eligible individual leaves his permanent residence and enters jail on 03/15/98. He is released on 05/06/98 to his home where he has rental liability and pays for all of his own food and shelter. Based on the FOM rule, no ISM is charged in March for the period spent in jail. The CR determines that the individual was ineligible (N22) in April. Based on the FOM rule, the CR charges a month's worth of ISM for May capped at the PMV for the food and shelter the individual received while in jail from May 1-6.

  3. c. 

    For purposes of rebutting the PMV, use only contributions toward expenses in the FOM residence to establish the AV of the ISM for the month. Any contribution the individual makes toward expenses in the new residence are not considered a contribution toward expenses in the FOM residence.

2. Exceptions to the General Rules

a. Month of Birth

Treat an individual's place of birth as the FOM residence for the month of birth (See SI 01410.020 for instructions on determining the state and county of residence).

b. Month of Move From Public Institution to Medical Treatment Facility

Treat a medical facility as an individual's FOM residence even though he/she had a prior residence, if:

  • the only prior residence in the month is a public institution where the individual would have been ineligible had he/she remained there throughout the month; and

  • the new residence is one in which the individual will be subject to the $30 payment limit (SI 00520.011).

EXCEPTION: The $30 payment would not apply if the individual enters a medical facility during an authorized absence from a penal institution (SI 00520.009B.1.). During such an absence, the individual remains ineligible for SSI.

c. Month of Move and VTR Continues to Apply

Determine that the VTR continues to apply, if the FOM residence is one where the VTR would apply, and:

  • all subsequent residences in the month qualify as someone else's household; and

  • the individual receives both food and shelter in each such residence.

d. Month of Move and VTR Does Not Apply

Determine that the VTR does not apply in a month when the individual, who has been subject to the VTR, moves to another residence and makes a contribution toward the household operating expenses of the subsequent residence.

  • Use the PMV rule to charge the individual with a month's worth of ISM received in the FOM residence just as if he/she had lived there the entire month.

  • Do not use the contributions to the subsequent residence to establish the AV of ISM from the FOM residence (see SI 00835.500E.1.c. above).

F. Examples of ISM determinations based on FOM residence

Example 1: FOM Residence is a Medical Facility

Mr. Rose left his apartment and entered a medical facility on 08/05/98 and he did not intend to return to his residence. Mr. Rose's FOM residence in November was a medical facility. On 11/11/98 he was discharged to his daughter's home where he did not contribute toward any of the household operating expenses. The field office did not charge ISM in November because his FOM residence was the medical facility. Food and shelter received during a medical confinement are not income (SI 00815.100).

Example 2: FOM Residence is a Public Institution

Mr. Payne entered the county jail on 01/23/99. Mr. Payne's FOM residence in March was the county jail. He was released on 03/04/99 and returned to his home. He made no payment to the jail for food or shelter which had a monthly value of $300. The field office determined that he received a month's worth of ISM for March. The ISM was valued at $300, so he was charged the PMV. (Although he was in jail for only 4 days, the monthly value of the ISM is counted. The amount is not prorated just because he was in jail for only part of the month. If Mr. Payne wants to rebut the value of the ISM, he would need to show that the monthly value was less than $300, or verify that he made a payment to the jail.)

Example 3: Move From Public Medical Institution to Medical Care Facility

Mr. White's FOM residence in 11/98 was a public medical institution where he would have been ineligible (N02) if he had remained there throughout the month. He did not pay for any of his food or shelter. On 11/04/98 he became ill and was transferred to a nearby hospital, where he remained until 11 /20/98 when he returned to the FOM public institution. Since Medicaid paid for his stay at the hospital, Mr. White was eligible for the $30 payment for November. Because the $30 payment cap applies in November, ISM is not counted in that month. See SI 00835.500E.2.b.

NOTE:Had this public institution been a penal facility, Mr. White would have remained ineligible (N22) for November if his transfer to the medical facility was an authorized absence (SI 00520.009B.1.).

Example 4: Temporary Absence Due to Incarceration

For about 7 months, Mr. Young had been living in an apartment and paying for all of his own household expenses when he was sent to the county jail on 05/ 18/98. While in jail he intended to return to his apartment, and on 06/05 /98 he did return. The period of incarceration was a temporary absence from his permanent living arrangement. ISM received during a temporary absence is not counted. Therefore, he is not charged with any ISM for the period he spent in jail. His FOM residence for June is his apartment (his permanent residence). ISM, if any, is based on his FOM residence, and since he was not receiving ISM in his apartment, no ISM is charged for June.

Example 5: No Permanent Residence on the First of the Month

Ms. Harris is an eligible individual who normally lives with her mother. However, she had a dispute with her mother, and for the past 5 months has been staying at different friends' homes for a few weeks at a time. On 5/15/98 she is arrested and put in jail. On 05/28/98 she posts bail and she returns to live with her mother.

Since Ms. Harris did not have a permanent residence in May, the FOM rule is not applicable. For May, ISM is counted from each place that she lived. Her short stays in the jail, with friends', and with her mother cannot be considered temporary absences because she had no permanent residence.

If Ms. Harris chooses to rebut the PMV in May, the actual value of ISM would include ISM she received 05/01-05/15 while staying with friends, ISM received 05/15-05/28 while in jail, and ISM received 05/28-05/31 in her mother's home.

Example 6: FOM Residence is a Household Where the VTR Would Apply

Ms. Morris had been subject to the VTR for the past 8 months. She lived with 3 roommates and did not contribute to household expenses. On 08/15/ 98 she moved into an apartment where she has rental liability. The VTR does not apply for August because she did not live in another person's household throughout a month. Therefore, the field office uses the PMV rule to charge her with a month's worth of ISM received from her FOM residence. The field office determines that, in August, she received ISM with an actual value of $200 which was capped at the PMV. Any money she spent in August toward household expenses in her new residence is not considered when computing ISM from the FOM residence.

NOTE:Assume that, instead of making no contribution, Ms. Morris had contributed $100 toward expenses in the FOM residence and that she decides to rebut the value of the ISM she received in August in the FOM residence. Assume that the field office determines that the monthly household operating expenses are $800. With 4 household members in the FOM residence, Ms. Morris' pro rata share was $200. She paid $100 toward the household expenses of the FOM residence. Therefore, the actual value of Ms. Morris' ISM is $100 for August.

Example 7: Intended FOM Residence Would be Subject to the VTR

Ms. Appleby had been living alone in her own apartment. She decided to move to her sister's home across the country where she would not pay for any food or shelter. She left on 02/24/99, intending to arrive the last week of February, but bad weather delayed her arrival until 03/02/99. Although she intended to be in the sister's home as of the first moment of March, she was still in transit. The VTR does not apply in March because she did not meet the throughout the month requirement. However, her intended FOM residence was her sister's home and we use the PMV rule to charge a month's worth of ISM there for March.

Example 8: Transients/Homeless and the FOM Rule

A homeless individual sleeps on park benches and gets food from a private nonprofit homeless shelter which has been certified by the State as a nonprofit provider of in-kind support and maintenance (SI 00830.605 and SI 00835.331). The FOM rule does not apply because the individual has no permanent residence. ISM, if any, would be counted from all of the sources during the month. However, he is not charged with ISM for sleeping on the park benches since that is considered ISM of no value. The food received at the homeless shelter is excluded per SI 00830.605.

G. References

  • SI 00520.001 Resident of a Public Institution

  • SI 00520.011 Determination of Applicability of $30 Payment Limit

  • SI 00835.040 Temporary Absence from Federal Living Arrangement (LA)

  • SI 00835.060 Transients, Homeless Individuals, and LA/ISM Determinations

  • SI 00835.400 In-Kind Support and Maintenance (ISM) only to the Claimant


SI 00835 TN 85 - Living Arrangements and In-Kind Support and Maintenance - 6/25/2019