Identification Number:
SI 00835 TN 92
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. 92, 08/30/2019

Audience

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

Originating Component

OISP

Effective Date

09/04/2019

Background

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

Summary of Changes

SI 00835.370 Rent-Free Shelter

Subsection E.1 - Changed "a DROC" to "DROC."

Subsection E.3. - Under "NOTE" changed "claims representative (CR)" to "claims specialist (CS)".

 

SI 00835.450 Cash Income from Within and from Outside Households

Updated "CR" to "CS" throughout this document to reflect the new claim system, per modernization updates.

Updated "SSI Claim System" to "SSI Claims System" throughout this document to reflect the new claim system, per modernization updates.

Subsection D - Under "EXAMPLE 1" changed "CR" to "Claims Specialist (CS)".

Subsection G - Under "EXAMPLE 1" and "EXAMPLE 2" changed "IOTH income screen" to "Other Income page" to reflect the SSI Claims System.

Subsection H - Changed "screen" to "page" to reflect SSI Claims System.

 

SI 00835.520 Redetermination Guidelines for LA and ISM

Updated "SSI Claim System" to "SSI Claims System" throughout this document to reflect the new claim system, per modernization updates.

Updated "individual" to "claimant" throughout this document to reflect the current format.

Updated "CR" to "CS" throughout this document to reflect the new claim system, per modernization updates.

Subsection C.b. - Under "EXAMPLE 1" 1st bullet changed "CR" to "Claims Specialist (CS)".

Subsection C.2.b. - Under "NOTE" changed "claims representative" to "CS".

Subsection C.4.a. - Fourth bullet updated language to reflect update made in SI 00835.340. Removed "either" and "in the CS's judgement, a probility of inside ISM."

Subsection D.4. - Corrected the spelling of "teh" to "the."

Subsection E.2. - Changed "page" to "pages."

Subsection E.2. - Under the 3rd bullet changed the sentence from "Complete all screens in the screen path for the living arrangement iteration(s)" to "Complete all the living arrangement pages within the SSI Claim under the living arrangement iteration(s)."

Subsection F.1. - Updated language in EXAMPLE 1 AND EXAMPLE 2. Changed "a DROC" to "DROC."

SI 00835.370 Rent-Free Shelter

A. When to use rent-free shelter instructions

Use this section to develop the issue of rent-free shelter in both initial claims and post-eligibility situations if:

  • sequential development of living arrangements (LA) shows that the value of one-third reduction (VTR) does not apply; and

  • there is an allegation that no one in the household has any ownership interest in, or rental liability for, the place of residence.

B. Definitions of rent-free shelter and rent-like payments

1. Rent-free shelter

Shelter is rent- free when no household member has any ownership interest in, or rental liability for, the residence.

2. Rent-like payments

Payments are rent-like if made to, or on behalf of, a shelter provider when there is no rental liability. Rent-like payments may reduce the amount of in-kind support maintenance (ISM) in the form of rent-free shelter. Rent-like payments consist only of the following:

  • cash to the shelter provider; or

  • vendor payments for the owner's mortgage, real estate property taxes, or rent (in sublease situations) on the residence where the claimant lives.

C. Policy for rent-free shelter

Rent-free shelter is a form of ISM.

D. Process for how rent-like payments offset the current market rental value (CMRV)

The following chart explains the month(s) in which a rent-like payment offsets the CMRV and thus reduces the actual value (AV) of ISM.

When a household's rent-like payment is...

And, the CMRV is...

Then the payment offsets the CMRV...

less than or equal to the monthly CMRV

not already being offset

in the month of payment.

more than the monthly CMRV

not already being offset

  • beginning with the month of payment; and

  • extending over the number of months arrived at by dividing the payment by the CMRV.

any amount

already being offset

  • beginning with the first month there is not total offset of the CMRV from a prior payment; and

  • extending over the number of months arrived at by dividing the payment by the CMRV.

E. Procedure for developing rent-free shelter

This procedure applies in both initial claim and post-eligibility situations.

1. How to explain rent-free shelter to the claimant

Explain that

  • the value of rent-free shelter is income;

  • we will charge the presumed maximum value (PMV) unless he or she rebuts our decision; and

  • if he or she wishes to rebut, he or she must produce evidence of a value lower than the PMV.
    For information on the rebuttal procedure, see SI 00835.320.

2. Claimant’s rebuttal decision

If the claimant does not rebut, document that fact, and

  • if the claimant lives alone and alleges that he or she makes no rent-like payments, charge the presumed maximum value (PMV) without any further development; or  

  • if the claimant does not live alone or if the claimant says that he or she, or another household member, makes rent-like payments, consider the need for further development of the AV of the shelter before charging the PMV.

For further development, see rent-like payments below.

3. Rent-like payments

  1. 1. 

    Record on DROC screen the claimant’s response concerning whether anyone in the household makes a rent-like payment and the payment date(s)

  2. 2. 

    If the claimant alleges no rent-like payment, close this issue and see CMRV development, SI 00835.370E.4. in this section.

  3. 3. 

    If the claimant alleges rent-like payments, obtain a signed statement from the payer and from the shelter provider to document:

    • the amount and payment dates; and

    • what the payments are for.

NOTE: In lieu of signed statements, the claims specialist (CS) can use DROCs to document the responses of the payer and the shelter provider.

4. CMRV development

  1. a. 

    Obtain an estimate of the CMRV from the shelter provider (signed statement or report of contact (DROC)). Accept the estimate the shelter provider gives you, including an estimate of $0.00. Document the file and see the procedure for determining AV of rent-free shelter in SI 00835.370F in this section.

  2. b. 

    Contact another knowledgeable source (e.g., real estate firm, rental management agency, etc.) dealing with similar neighborhoods to obtain a CMRV for similar shelter only if the provider is unable or unwilling to provide an estimate. An estimate of $0.00 does not require contact with a knowledgeable source.

F. Procedure for determining actual value (AV) of rent-free shelter

Select the applicable method provided in this section to determine the AV of a claimant's or eligible couple's portion of rent-free shelter. Document the record to reflect your computations.

1. No rent-like payment or payment less than CMRV

When no household member makes a rent-like payment or a household member makes a payment, which is less than the CMRV, use the following method (not necessarily as a worksheet).

Step

Action

Entry

Comment

1

Enter monthly CMRV of rent-free shelter

$        

Convert to a monthly amount if necessary.

2

Subtract rent-like payment

       

 

3

Enter remainder

$        

AV of rent-free shelter to the household.

4

Divide by number of household members

÷        

 

5

Enter result

$        

AV to each household member. For a claimant, go to step 8. For an eligible couple, go to step 6.

6

Multiply by 2

×         2

 

7

Enter result

$        

AV of rent-free shelter to couple.

8

Enter lesser of AV or applicable PMV (individual PMV or couple PMV)

$        

Amount to charge for ISM in the form of rent-free shelter.

2. Rent-like payment exceeds CMRV

When any household member makes a rent-like payment, which exceeds the CMRV, use the following method.

Step

Action

Entry

Comment

1

Enter rent-like payment amount

$        

 

2

Enter monthly CMRV of rent-free shelter

$        

Convert to a monthly amount if necessary.

3

Divide amount in step 1 by amount in step 2 and enter result

÷        

Number of months in which no one in household receives ISM in the form of rent-free shelter. If there is a decimal remainder, go to steps 4 through 9.

4

Multiply any step 3 decimal remainder by CMRV and enter

$        

For example, if the decimal is .5 (1/2 mo.) and the CMRV is $200, the dollar amount is $100.

5

Subtract amount in step 4 from CMRV (step 2) and enter remainder

$        

AV of rent-free shelter to the household.

6

Divide by number of household members

÷        

 

7

Enter result

$        

AV of rent-free shelter to each household member. For a claimant, go to step 10. For an eligible couple, go to step 8.

8

Multiply by 2

×         2

 

9

Enter result

$        

AV of rent-free shelter to couple.

10

Enter lesser of AV or applicable PMV (individual PMV or couple PMV)

$        

Amount to charge for ISM in the form of rent-free shelter.

G. Related references

  • SI 00835.470 ISM and Household Conversions

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

SI 00835.450 Cash Income from Within and from Outside Households

A. Background

A claimant, who is the householder, may receive cash income as well as ISM from other members of his/her household. Also, a claimant may receive cash income as well as ISM from sources outside the household. The following section provides instructions for distinguishing between ISM and cash income and for calculating the amount of cash income.

B. Policy — cash income from within households

1. What is Cash Income

When a claimant is the householder, household members' cash contributions that exceed the household's total operating expenses result in cash income to the claimant.

Cash payments for the support and maintenance of an SSI recipient are unearned income for SSI purposes, unless excluded by law or regulations (SI 00830.600 ff.). Cash income is never subject to the presumed maximum value (PMV) rule (SI 00835.300).

When a recipient is the householder and funds are pooled to share household expenses, he/she derives cash income from the excess contributions of the other members to the extent that the pooled funds plus direct bill payments exceed total household operating expenses. (See SI 00835.340 for a discussion of excess contributions which assist a recipient in meeting his/her pro rata share of household operating expenses.)

NOTE: Funds are considered pooled when at least one other member of the household, other than the householder's spouse, makes a cash contribution to the householder (or pays a personal expense of the householder in lieu of a cash contribution). Pooling is in contrast to each person paying particular bills directly.

2. What Is Not Cash Income

Cash contributions from within the household that help a claimant to meet his/her pro rata share of household operating expenses are counted as inside ISM.

When a recipient is not the householder, he/she can receive only ISM from the other household members' contributions. In such cases, no cash income is derived from the other members' contributions toward household operating expenses. Charge the VTR if the claimant receives both food and shelter from within the household.

In a public assistance household (see SI 00835.130), it is assumed that no excess cash contribution for support and maintenance is received from within the household.

Persons appointed by SSA to be representative payees do not derive unearned cash income because of the fiduciary role they perform for beneficiaries and recipients.

EXCEPTION: Cash income may be derived when a fee for services as payee is received or there has been a misuse of funds. In addition, a representative payee who is also an SSI recipient may receive ISM because of these funds (i.e., the funds are used as contributions toward household expenses). (See SI 00810.120.)

C. Procedures — cash from within households

Determine whether a recipient, who is the householder, receives cash income from within a household by comparing the household's operating expenses to the household's cash contributions (i.e., cash contributions from all household members including the recipient). Use only the household costs listed in SI 00835.465D.1. when computing household operating expenses.

Determine the amount of cash income a recipient receives in the following manner:

AMOUNT OF RECIPIENT'S CASH CONTRIBUTIONS    

(NOTE: This includes the excess contribution, if any, of a deemor. This also includes the contributions of both members of an eligible couple.)

MINUS AMOUNT OF RECIPIENT'S PRO RATA SHARE OF EXPENSES    

BALANCE EQUALS RECIPIENT'S “EXCESS” CASH CONTRIBUTION    

TOTAL HOUSEHOLD CASH CONTRIBUTIONS (INCLUDING RECIPIENT'S)    

MINUS RECIPIENT'S “EXCESS” CASH
CONTRIBUTION    

BALANCE OF HOUSEHOLD CASH CONTRIBUTIONS    

MINUS TOTAL HOUSEHOLD OPERATING
EXPENSES    

CASH INCOME TO RECIPIENT    

(Follow the development instructions in SI 00835.340 and SI 00835.465-SI 00835.485 when determining pro rata share of expenses and contributions. Follow SI 00835.210B. to determine the amount of the claimant's contribution when the claimant lives with a deemor.)

NOTE: The reduction of the household's total cash contributions by the amount of excess cash contributed by the recipient is an essential step in the computation. This step eliminates the possibility of charging the recipient with unearned income because of an excess contribution that the recipient may have made. If the recipient has an ineligible spouse, determine whether the ineligible spouse has any excess contribution which can be applied to those involved in the deeming computation before figuring the recipient's “excess” contribution.

If there is more than one owner or person liable for the rent, divide the cash income by the number of persons in the household who own or rent to determine the amount of the claimant's cash income. If the claimant lives with a spouse, consider that spouse an “owner” or “renter” if the eligible individual owns or rents. However, only the claimant is charged with cash income.

D. Examples — cash from within households

EXAMPLE 1: Cash Income Received — Recipient Contributes Pro Rata Share

Philip Beck, an SSI recipient, lives in an apartment and has rental liability. He shares the apartment with two friends; neither receives public assistance payments. Mr. Beck states that all three share the household expenses. Household operating expenses average $675 a month. Mr. Beck contributes $225 in cash each month. The other two each contribute $240 in cash. Mr. Beck meets his pro rata share of expenses; therefore, no ISM is charged to him. The cash income to Mr. Beck is computed as follows:

 
Amount of Mr. Beck's Cash Contribution $225
Minus Amount of Mr. Beck's Pro Rata Share of Expenses -225
Balance Equals Mr. Beck's “Excess” Cash Contributions $ 0 Total
Total Household Cash Contributions $705
Minus Mr. Beck's “Excess” Contribution   0
Balance of Household Cash Contributions $705
Minus Total Household Operating Expenses - 675
Cash Income to Mr. Beck $ 30

 The FO charges Mr. Beck with $30 cash income.

In the SSI Claims System, on the Household Expenses and Contributions page, the CS would input $225 as the AMOUNT CLAIMANT CONTRIBUTES, and input $480 as the AMOUNT OTHERS CONTRIBUTE. The SSI Claims System computes the amount of cash income.

EXAMPLE 2: Cash Income Received—Recipient Contributes More than Pro Rata Share

Sarah North, an aged recipient, lives with her two adult daughters in a home that she owns. The monthly household expenses average $450. Mrs. North contributes $155 in cash; therefore, she meets her pro rata share. One daughter contributes $165; the other contributes $140. Cash income to Mrs. North is computed as follows:

 
Amount of Mrs. North's Cash Contribution $155
Minus Mrs. North's Pro Rata Share of Expenses -150
Balance Equals Mrs. North's “Excess” Cash Contribution $ 5
 
Total Household Cash Contributions $460
Minus Mrs. North's “Excess” Contribution - 5
Balance of Household Cash Contributions $455
Minus Total Household Operating Expenses -450
Cash Income to Mrs. North $ 5

The FO credits Mrs. North with her excess contribution and thereby charges her with $5 cash income.

In the SSI Claims System, on the Household Expenses and Contributions page, the CS would input $155 as the AMOUNT CLAIMANT CONTRIBUTES, and input $305 as the AMOUNT OTHERS CONTRIBUTE. The SSI Claims System computes the amount of cash income.

EXAMPLE 3: Cash Income Received—Couple Does Not Meet Pro Rata Share

Jerry and Jamie Johnson, an aged couple, live in their own house with their adult son, Bob. They contribute $100 towards household expenses each month. Bob contributes $130 in cash per month to “pay for my expenses.” Total household expenses are $210. Total household contributions are $230. Pro rata share of expenses is $70.

Part of Bob's contribution pays the $40 difference between the parents' contribution ($100) and their pro rata share ($140), so $40 is counted as ISM to the couple ($40 is used since it is less than the couple's PMV). The couple does not meet their pro rata share of expenses, so there is no excess contribution on their part. The difference between total household expenses and total household contributions is $20, which is the cash income to the couple. ($10 each).

In the SSI Claims System, on the Household Expenses and Contributions page, the CS would input $100 as the AMOUNT CLAIMANT CONTRIBUTES, and input $130 as the AMOUNT OTHERS CONTRIBUTE. The SSI Claims System knows this is a couple's claim and compares the AMOUNT CLAIMANT CONTRIBUTES against twice the pro rata share.

EXAMPLE 4: Ineligible Spouse's Contribution Exceeds the Pro Rata Share for the Couple

Mr. Jameson, an SSI recipient, lives with his ineligible wife in their own home. Their two adult sons live with them. Mrs. Jameson contributes $500 a month towards household expenses, but Mr. Jameson contributes nothing. The sons contribute a total of $450 a month. The total household operating expenses are $800 a month.

His wife's excess contribution of $300 ($500 minus her $200 pro rata share) is added to Mr. Jameson's $0 contribution resulting in an excess contribution of $100 for Mr. Jameson ($300 minus his $200 pro rata share). This $100 excess is subtracted from the total household cash contributions of $950. Household cash contributions exceed total household operating expenses by $50 ($850 minus $800). This cash income to Mr. and Mrs. Jameson is then divided by two and only Mr. Jameson is charged with $25 cash income.

In SSI Claims System, on the Household Expenses and Contributions page, the CS would input $0 as the AMOUNT CLAIMANT CONTRIBUTES, input $500 as the AMOUNT DEEMOR CONTRIBUTES, and input $450 in the AMOUNT OTHERS CONTRIBUTE. The SSI Claim System computes the amount of cash income.

E. Policy — cash income from outside the household

Cash payments received by the claimant from outside the household for household operating expenses are treated as cash income, not ISM.

Cash payments to a member of the household may be intended for the use of that member only, or for a few members, or for all members of the household.

If the cash payment from outside the household is for household expenses, the claimant's share of the payment is also included in the claimant's contribution to the household expenses. This is true even if the payments are given directly to the householder (or other agent) on the claimant's behalf.

NOTE: Payments for household operating expenses made directly to a vendor (third-party vendor payments) do not result in cash income to the claimant. (See SI 00835.360 for when to charge ISM from third party vendor payments).

F. Procedure — cash income from outside the household

When an allegation of cash payments for household operating expenses from outside the household is made, determine for whose use the payment is intended.

Divide the cash payment by the number of beneficiaries of the payment to determine the amount attributable to the claimant.

If the claimant is included in the payment, obtain a statement (signed or on DROC) from the claimant regarding the amount and intended beneficiaries of the payment.

G. Examples — cash income from outside the household

EXAMPLE 1: Claimant's Contribution Equals His Pro Rata Share

The claimant, John Smith lives with his brother, Edward Smith, in a house that Edward is buying. The household operating expenses are $600 per month. John Smith's pro rata share is $300. Each brother pays $200 towards the household expenses. The Smiths' sister, Mabel White, sends $200 to Edward each month to help out with expenses. John indicates that her contribution is for both him and Edward.

Although Ms. White's contribution is used to pay for household operating expenses, it is counted as cash income, not ISM.

Ms. White's $200 contribution is split equally between the two brothers. John Smith's contribution toward his pro rata share is $300 ($200 from his own funds plus $100 received from Ms. White). The $100 dollar contribution from Ms. White is counted as cash income. However, since his contribution equals his pro rata share, he receives no ISM.

In the SSI Claims System, on the Household of Another page, the CS would input $300 as the CLAIMANT'S CONTRIBUTION, and $100 of “OTHER” income on the Other Income page.

EXAMPLE 2: Claimant's Contribution Does Not Equal His Pro Rata Share

The case facts are the same as Example 1 except that the claimant, John Smith, contributes only $100 toward the household operating expenses from his own funds.

John Smith contributes $200 ($100 from his own funds plus $100 received from his sister). The $100 contribution from Ms. White is counted as cash income. However, since Mr. Smith's total contribution is only $200 and his pro rata share is $300, he is also subject to the one-third reduction (VTR).

In the SSI Claims System, on the Household of Another page, the CS would input $200 as the CLAIMANT'S CONTRIBUTION, and $100 of “OTHER” income on the Other Income page. The SSI Claims System would determine FLA/B (VTR) and count $100 of cash income.

H. References

SI 00835.520 Redetermination Guidelines for LA and ISM

A. Introduction of redeveloping LA and ISM during redeterminations

This section provides instructions for redeveloping living arrangements (LA) and in-kind support and maintenance (ISM) during redeterminations.

This section supplements the development instructions in the following sections:

POMS Section

Reason

SI 00835.100 - SI 00835.200

LA Basis Instructions

SI 00835.340

Inside ISM instructions

SI 00835.350

Outside ISM instructions

SI 00835.400

ISM only to the Claimant instructions

SI 00835.482,

Loans of ISM instructions

SI 00835.510

Changes in ISM instructions

SI 02305.001

Redetermination instructions

B. Policy for redeveloping LA and ISM in redeterminations

1. General rule

Do not redevelop LA and ISM determinations on record for the period of review unless:

  • an undeveloped change is indicated at the redetermination; or

  • allegations pertinent to the period of review do not support the information on the Supplemental Security Record (SSR) or on the SSI Claims System living arrangement path.

2. Exceptions to the general rule

Redevelop the following issues as of the month the current redetermination is initiated. Redevelop these issues whether a redetermination is processed using a paper form or the SSI Claims System:

  • Outside ISM and ISM only to the claimant;

  • Inside ISM;

  • Sharing or earmarked sharing; and

  • Value of One-Third Reduction (VTR).

3. Chart summary on when to redevelop LA and ISM

The following chart summarizes when redevelopment of ISM is required for redeterminations processed on paper forms and in the SSI Claims System when seeding is not required. For the redevelopment procedures see sections SI 00835.520C. and SI 00835.520D.

NOTE: If a redetermination within the SSI Claims System requires seeding for redevelopment requirements, see SI 00835.520E.

LA/ISM SITUATION ON
SSR or SSI Claims System

IF RECIPIENT
REPORTS....

REDEVELOPMENT
PERIOD IS....

1. ISM based on a vendor
charge

information that conflicts with SSR/SSI Claims System

redevelop for any months where information conflicts

2. "

he or she does not know the value of the ISM

redevelop for entire period of review

3. "

information that agrees with SSR/SSI Claims System

do not redevelop the ISM

4. ISM based on estimate of Current Market Value (CMV)/Current Market Rental Value (CMRV)

no changes

redevelop starting with the initiation month of the redetermination

5. "

a breakpoint

redevelop starting with the breakpoint effective month

6. ISM due to rental subsidy

 

no changes

redevelop starting with the initiation month of the redetermination

7. "

a breakpoint

redevelop starting with the breakpoint effective month

8. Inside ISM, Sharing, Earmarked Sharing, and the VTR

no breakpoints

redevelop starting with the initiation month of the redetermination

9. "

a breakpoint

redevelop starting with the breakpoint effective month

10. Continuing Loan of
ISM

contributing towards household expenses; or

not contributing towards household expenses

develop living arrangement and ISM beginning the month after the loan period ended.

For information on developing loans of ISM see SI 00835.482C.

11. “

loan of ISM has not ended

develop whether a new bona fide loan exists beginning with the month after the previous loan ended (i.e., the month that SSI benefits started) If a bona fide loan does not exist, redevelop living arrangements beginning with first month of the redetermination review period.

For information on developing whether a loan is bona fide see SI 00835.482C.

C. Procedure for completing non-MSSICS redeterminations

1. Outside ISM and ISM only to the claimant

These types of ISM are generally discovered from direct allegation by the claimant. A claimant is usually able to report that outside ISM or ISM only to the claimant continued, began, or stopped over the period of review. Compare the claimant's allegations on the redetermination forms with the SSR.

a. ISM based on a vendor charge

If ISM is based on a vendor charge, compare the claimant's allegations on the redetermination forms with the SSR:

  • Do not redevelop the ISM if the claimant's allegation of the vendor charge matches the SSR;

  • Redevelop the ISM for any months the allegation of the vendor charge conflicts with the SSR (For information about computing outside ISM, see SI 00835.350. For information about ISM from vendor payments, see SI 00835.360);

  • Redevelop the ISM for the period of review if the claimant does not know the value of the ISM received and an actual value of ISM is on the SSR; and

  • Offer rebuttal if the claimant does not know the value of the ISM and the PMV is shown on the SSR. For information about rebuttal, see SI 00835.320.

b. ISM based on a CMV or CMRV estimate

When ISM is based on CMV or CMRV estimate:

  • Redevelop the CMV or CMRV beginning with the month the redetermination is initiated and follow the instructions in SI 00835.350C.

    EXAMPLE 1: The Claims Specialist (CS) contacts the provider of rent-free shelter to redevelop the CMRV of the recipient's residence. The landlord indicates that the CMRV has gradually increased in value from $150 to $250 during the period of review. The CS uses the new CMRV as of the initiation month.

  • Redevelop the CMV or CMRV as of the breakpoint effective month if a breakpoint occurred during the period of review which changed the CMV or CMRV. For breakpoints see SI 00835.510; and

    EXAMPLE 2: The rent-free apartment occupied by a recipient is damaged by fire and the landlord has not repaired the damage. The abrupt change in the CMRV of this apartment is a breakpoint that is effective with the month of the fire (i.e., when the CMRV sharply declined). This change in the CMRV is a breakpoint belonging to the category “change in CMV of the household cost”. For information on outside ISM breakpoints see SI 00835.510B.2.).

    EXAMPLE 3: A provider stops supplying meals to the recipient in a particular month. The change from separate consumption (a breakpoint) is effective the month it occurs.

  • Do not redevelop the CMV or CMRV as of the initiation month if a new CMV or CMRV is obtained in connection with developing a breakpoint.

c. ISM due to a rental subsidy

When ISM is due to a rental subsidy:

  • Redevelop rental subsidy for the month the redetermination is initiated if someone in the household is related to the landlord or landlord's spouse as a parent or child;

  • Obtain a new CMRV from the landlord effective with the month that the redetermination is initiated (For information on developing rental prepayments, see SI 00835.380D);

  • Redevelop rental subsidy as of the breakpoint effective month if a breakpoint is alleged which may affect rental subsidy during the review period. For example, someone who is related to the landlord moved in, or a new landlord took over, or the household changed its payment to the landlord, or there is a residence change; and

  • Do not redevelop the CMRV estimate as of the redetermination initiation month if a CMRV estimate is obtained in connection with developing a breakpoint.

2. Inside ISM, sharing, earmarked sharing, and the VTR

a. No breakpoints reported

When no breakpoints are reported:

  • Assume that the living arrangements and inside ISM shown for the period of review are correct if the claimant reports no breakpoints; and

  • Redevelop the LA and ISM as of the month the redetermination is initiated to uncover any changes in LA and ISM which may be due to gradual changes in average expenses or contributions since the last redetermination. For information on gradual changes in ISM see SI 00835.515.

NOTE: Follow the developmental requirements and curtailments in SI 00835.140 - SI 00835.170. When an SSA-8006 (Statement of Living Arrangements, In-Kind Support and Maintenance) is required see SI 00835.520C.3.

b. Breakpoint reported

When a breakpoint is reported:

  • Develop a breakpoint reported at the redetermination if it was not developed previously (For information on breakpoints see SI 00835.510);

  • Do not redevelop a breakpoint that occurred during the period of review if it was already developed. Assume that the determination made for a previously reported breakpoint was correct and redevelop LA and ISM as of the initiation month per SI 00835.520C.2.a.

    NOTE: For non-MSSICS LA and ISM changes, it is sometimes difficult to determine whether a breakpoint was previously reported and developed. This is especially true if a previously reported breakpoint resulted in no change to LA or ISM. The CS must rely on the SSR as well as any prior files or development maintained at the field office. If, after reviewing these records, there is any doubt about the event having been developed, develop the breakpoint.

  • Do not redevelop the LA and ISM as of the month the redetermination is initiated when a breakpoint is developed at the redetermination.

3. Loan of ISM

If a continuing loan of ISM is indicated by the last living arrangement iteration in the SSI Claims System or by the remarks on the SSR, fully develop the living arrangement, household operating expenses, and the claimant's contributions starting the first month of the redetermination review period to determine the claimant's living arrangement and ISM.

4. When to use an SSA-8006 (Statement of Living Arrangements, In-kind Support and Maintenance)

a. SSA-8203 is completed

Complete an SSA-8006 when an SSA-8203 (Statement for Determining Continuing Eligibility for Supplemental Security Income Payments) is completed and the household is not a public assistance household, and one of the following exists:

  • the claimant lives with someone other than a spouse, child (as defined in SI 00501.010), or a person whose income is deemable to the claimant;

  • the claimant is an eligible child who lives with someone other than a parent (and children if present);

  • the claimant is the householder and alleges that someone is contributing to household expenses; or

  • the claimant lives only with children who have income, and there is an indication of unstated income. For information for computing inside ISM see SI 00835.340B.

b. SSA-8202 is completed

Complete an SSA-8006 when an SSA-8202 (Statement for Determining Continuing Eligibility for Supplemental Security Income Payments) is completed for a Data Operations Center (DOC) exclusion redetermination (RZ) because ISM less than the PMV is posted on the SSR.

NOTE: An SSA-8006 is not required when the redetermination is completed in the SSI Claims System because any LA and ISM information provided by the claimant can be documented directly within the SSI Claim. However, when needed, an SSA-8011 (Statement of Household Expenses and Contributions) or an SSA-L5061 (Letter to Landlord Requesting Rental Information) is still used in the SSI Claims System to process redeterminations in order to document issues such as sharing and rental subsidy.

D. Procedure for SSI Claim redeterminations when a pending file exists and seeding not required

For an SSI Claim, redeterminations and redevelopment of LA and ISM are required for the same issues as for redeterminations processed on paper forms. Regardless of the redetermination profile (e.g., HEP, MEP, LEP), all SSI Claim redeterminations are processed in one of two ways, full path redetermination or redetermination via the Living Arrangement Recap pages. The choice of whether to use the full path or the Living Arrangement Recap path is not based on the presence of any specific LA and ISM issue.

The following procedures apply to redeterminations for cases that already have an active SSI Claim pending file (i.e., seeding is not required). If seeding is required to process the redetermination, see SI 00835.520E (in this section).

1. Procedures for developing LA and ISM redeterminations

Follow these procedures when developing LA and ISM in redeterminations:

  • Assume, absent information to the contrary, that all prior living arrangement periods are correct. Therefore, the current living arrangement on the SSI Claim is usually the beginning point of the review;

  • Review thoroughly all of the current LA and ISM information on the full path pages or Living Arrangement Recap page with the recipient to determine whether the information is still correct and to detect breakpoints, if any;

  • Develop a breakpoint by entering the date of the breakpoint on the Living Arrangement Change page to establish a new living arrangement period (LA iteration). Document the breakpoint and its effect on LA and ISM by completing the new living arrangement iteration provided by the SSI Claims System;

  • Curtail development of LA and ISM if no breakpoint occurred and all the LA and ISM information on the full path or the Living Arrangement Recap pages are correct, unless one of the ISM issues requiring redevelopment is present; and

  • Follow instructions in SI 00835.520D.2. and SI 00835.520D.3. (in this section) when an ISM issue requiring redevelopment is present.

2. Outside ISM and ISM only to the claimant

a. ISM based on a vendor charge

When ISM is based on a vendor charge:

  • If the claimant's allegation of the vendor charge matches the information on the SSI Claim or the SSR for non-MSSICS cases do not redevelop the ISM;

  • If the claimant's allegation conflicts with the SSI Claim or the SSR for non-MSSICS cases, redevelop the ISM . Use the Living Arrangement Change page in the SSI Claim to establish a new LA iteration starting with the month that the allegation and the information on the pages conflict; and

  • If the claimant does not know the value of the ISM received, redevelop the ISM. Use the Living Arrangement Change page in the SSI Claim to establish a new LA iteration beginning from the first month where the value of the ISM is in question.

b. ISM based on a CMV or CMRV estimate

When the claimant gets ISM based on a CMV or CMRV estimate:

  • Redevelop the ISM. Establish a new LA iteration as of the first day of the initiation month of the redetermination.

    NOTE: To establish a new LA iteration date as of the first day of the initiation month, input the last day of the prior month as the date of change on the Living Arrangement Change page.

  • Redevelop the ISM if a breakpoint occurred during the period of review which changed the CMV or CMRV estimate. Establish a new LA iteration as of the date of the breakpoint.

  • Do not redevelop the CMV or CMRV as of the initiation month if a new CMV or CMRV is obtained in conjunction with developing a breakpoint.

c. ISM due to a rental subsidy

When ISM is due to a rental subsidy:

  • Redevelop rental subsidy if someone in the household is related to the landlord or the landlord's spouse as parent or child;

  • Obtain a new estimate of the CMRV as of the redetermination initiation month;

  • Establish a new LA iteration as of the first day of the month the redetermination review period begins. This is required even if the new estimate of the CMRV has not changed;

  • Develop the breakpoint if a previously unreported breakpoint is uncovered which affects rental subsidy. Establish a new LA iteration in the SSI Claim as of the date of the breakpoint; and

  • Do not redevelop the CMRV as of the initiation month if a new CMRV estimate is obtained in conjunction with developing a breakpoint.

3. Inside ISM, sharing, earmarked sharing, and the VTR

Follow these procedures when developing inside ISM, sharing, earmarked sharing, and the VTR in redeterminations:

  • If the claimant reports no breakpoints, assume that the living arrangements and ISM for the period of review are correct.

  • If any reported breakpoint was not developed previously, develop it at the redetermination. Establish a new LA iteration as of the date of the breakpoint.

  • If no breakpoints are uncovered, establish a new LA iteration as of the first day of the initiation month of the redetermination to redevelop these LA and ISM issues and to uncover any gradual changes in expenses and contributions that may affect the LA and ISM determination.

  • Do not redevelop the LA and ISM as of the initiation date when a breakpoint is developed as part of the redetermination.

4. Loan of ISM

If a continuing loan of ISM is indicated by the last LA iteration on the SSI Claim or by the remarks on the SSR, fully develop the LA, household operating expenses, and the claimant's contributions starting the first month of the redetermination review period to determine the claimant's LA and ISM.

E. Procedure for SSI Claim Redeterminations when seeding is required

Use the following procedures to redevelop ISM for redeterminations in an SSI Claim that require seeding:

1. Seed living arrangements

When seeding is required:

  • Retrieve living arrangement information from the Seed Living Arrangement page, see MS 08110.005. View the Representative Payee information within the SSI Claims System on the Mailing/Payment Address Comparison (CPAD) screen, see MS 04427.006.

  • Assume, absent evidence to the contrary, that LA data on the SSR is correct.

  • Select “full LA development” on the Seed Living Arrangement page starting with the LA in effect as of the redetermination initiation month. The SSI Claims System establishes LA iteration as of the first day of that month.

  • Develop prior LA periods only if the adjudicator determines that full development of prior LA period(s) is needed (e.g., there is an indication of previously unreported breakpoints or a continuing loan of ISM).

NOTE: If a change earlier than the selected period is discovered during the interview, the CS must select an earlier LA period for full development using the Period List and Living Arrangement Summary page. The Period List page allows selection of an earlier period and full LA development is requested on the appropriate Living Arrangement Summary page. To view the Period List page in MSOM see MS 08110.006 and to view the Living Arrangement Summary page in MSOM see MS 08110.002.

2. Completing the SSI Claim living arrangement pages

When completing the living arrangement pages within the SSI Claim:

  • Begin with the earliest living arrangement period selected for full development and completely develop that living arrangement period (and subsequent periods if any) up through the current month;

  • Contact the recipient (or payee) to obtain information so that all of the data on the pages can be completed and updated through the current month; and

  • Complete all the living arrangement pages within the SSI Claim under the living arrangement iteration(s).

NOTE: Full development of the appropriate living arrangement period(s), done in conjunction with seeding, takes the place of the redevelopment of ISM that is normally required for the redetermination. For documentation requirements see SI 00835.520F (in this section).

F. Procedures for documenting ISM redevelopment

1. When documentation is required

Whether the redetermination is processed on paper or in the SSI Claims System, obtain the required documentation for the ISM issue that is being redeveloped.

Example 1: Non-MSSICS redetermination: rental subsidy

The CS is conducting a redetermination for a claimant who rents a house from his adult daughter. Rental subsidy must be redeveloped for the redetermination. Redevelopment requires contacting the landlord and documenting the new CMRV estimate on a report of contact (DROC) screen in the SSI Claim. For non-MSSICS cases use the SSA-L5061 (Letter to Landlord Requesting Rental Information). Fax the paper form in the appropriate electronic folder. Do not retain the paper form after the issue is documented electronically. For information on rental subsidy, see
SI 00835.380.

Example 2: SSI Claim redetermination: loan of ISM (Seeding not required)

The LA pages in the SSI Claim indicate that the claimant has a continuing loan of ISM that covers his pro rata share of household operating expenses. In this case, the SSI Claim has no information about household expenses and contributions. Development of the household expenses and contribution is needed beginning with the first month of the review period to verify the claimant is contributing and to determine the countable ISM amount, if any. See SI 00835.482I. for instructions on documenting loans of ISM. In certain sharing situations a statement from a knowledgeable household member verifying the household expenses and contributions is required on DROC screen. Refer to SSA-8011, Statement of Household Expenses and Contributions, to ensure that all information is documented accordingly. For non-MSSICS cases use the SSA-8011 and fax the paper form in the appropriate electronic folder. Do not retain the paper form after the issue is documented electronically. For information on developing sharing see SI 00835.160.

Example 3: SSI Claim redetermination: rental subsidy (Seeding required)

The CS is conducting a redetermination for a claimant who rents a house from a parent. By seeding an SSI Claim and contacting the claimant, the CS obtains the information needed to complete the LA period. However, since rental subsidy is an issue that must be redeveloped for the redetermination, the CS must contact the landlord to obtain a new estimate of the CMRV as of the redetermination initiation month. Document the rental subsidy amount on DROC screen within the SSI Claim. For non-MSSICS cases use the SSA-L5061 (Letter to Landlord Requesting Rental Information). Fax the paper form in the appropriate electronic folder. Do not retain the paper form after the issue is documented electronically.

2. When documentation is not required

Do not obtain documentation of LA and ISM issues when redevelopment is not required.

Example: Verification of rental liability not required

The CS is conducting a redetermination for a claimant who lives with two adult roommates and has rental liability. The CS seeds the case within the SSI Claim and contacts the claimant to complete the LA pages. Although verification of rental liability is required if this was an initial claim, it is not necessary to redevelop rental liability for a redetermination. Therefore, the CS does not ask for verification of rental liability. The CS assumes, absent evidence to the contrary, that this issue was correctly developed in the past. In the SSI Claims System on the Home Ownership and Rental Liability page the “Rental liability verified” question should be answered “Yes.”

G. References

  • SI 00835.320 Rebuttal Procedures and Presumed Maximum Value Rule

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

  • SI 00835.350 Computation of In-Kind Support and Maintenance (ISM) from Outside a Household (Including Vendor Payments by a Third Party Outside the Household)

  • SI 00835.380 Rental Subsidies

  • SI 00835.510 Breakpoints

  • SI 00835.515 Gradual Changes in ISM

  • MS 08110.001 Living Arrangements - Overview


SI 00835 TN 92 - Living Arrangements and In-Kind Support and Maintenance - 9/04/2019