Actual value (AV) is the amount of in-kind support and maintenance (ISM) to be charged when the value of the one-third reduction (VTR) rule does not apply and the calculated AV of the ISM is less than the presumed maximum value (PMV). The number of persons in the household is a factor in AV computations, see SI 00835.020B.1.

Effective 09/30/2024, a business arrangement exists when the monthly required rent (including a flat fee payment) equals or exceeds the PMV described in SI 00835.300 (§ 416.1140(a)(1)). If the monthly required rent (including a flat fee payment) is less than the PMV, we will impute as ISM the difference between the monthly required rent and either the PMV or the current market rental value (CMRV), whichever is less.

Prior to 09/30/2024:

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  In Connecticut, New York, Vermont, Illinois, Indiana, Wisconsin, and Texas, a business arrangement exists when the monthly required rent (including a flat fee payment) equals or exceeds the PMV described in SI 00835.300 (§ 416.1140(a)(1)). If the monthly required rent (including a flat fee payment) is less than the PMV, we impute as ISM the difference between the monthly required rent and either the PMV or the CMRV, whichever is less. For instructions for processing cases in Texas, please see “Rental Subsidies for Residents of Texas Effective May 1, 1996,” per SI DAL00835.380.

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  In all other States (other than Connecticut, New York, Vermont, Illinois, Indiana, Wisconsin, and Texas), a business arrangement exists when the monthly required rent (including a flat fee payment) equals or exceeds the CMRV. If the monthly required rent is less than the CMRV, we will impute as ISM (up to the amount of the PMV) the difference between the CMRV and the monthly required rent.

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

The CMRV under rent control is the maximum rent chargeable to the current tenant under the applicable rent control law.

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.

An individual receives ISM in the form of a rental subsidy when the monthly required rent (including a flat fee payment) is less than the amount charged under a business arrangement (see A.2. above).

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

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 (e.g., Report of Contact page). For guidance on completing the Home Ownership and Rental Liability page, see MS INTRANETSSI 010.012.

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

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  If the answer is “no,” do not further develop for possible rental subsidy.

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  If the answer is “yes," go to 2.

Contact the landlord and request the monthly required rent, estimated CMRV, and the reason for accepting a reduced rent, if applicable.

If you contact the landlord by telephone or face-to-face, explain that rental subsidy generally occurs when the monthly required rent is less than both the estimated CMRV and the PMV. The amount of subsidy we charge is the difference between the monthly required rent and the CMRV or PMV, whichever is less. If rental subsidy exists, explain that we may make either lower SSI payments or none at all.

When unable to contact the landlord by phone or in person, you may use form SSA-L5061 to obtain the landlord’s responses. For instructions on completing the form or 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).” For more information on storing forms electronically, refer to GN 00301.322.

After obtaining information about the rent from the landlord, document the file as follows:

1. a. 

   Document the landlord’s responses regarding the monthly required rent and estimated CMRV on the Home Ownership and Rental Liability page in the SSI Claims System. Accept the landlord’s allegation regarding the CMRV. If the monthly required rent is equal to or greater than the CMRV or PMV, then rental subsidy does not apply. No further action is needed.

2. b. 

   If the monthly required rent is less than both the CMRV and PMV, subsidy will apply, unless there is an exception, per D.1.b., below. For guidance on completing the Home Ownership and Rental Liability page see, MS INTRANETSSI 010.012.

3. c. 

   If the landlord is unable or unwilling to provide an estimated CMRV, request an estimated CMRV from a knowledgeable source (e.g., a real estate firm or rental management agency) dealing with similar neighborhoods to obtain the CMRV for similar shelter.

1. a. 

   If the verified monthly required rent equals or exceeds either the CMRV or the PMV, no further development is needed. No rental subsidy applies.

2. b. 

   If the monthly required rent is less than both the CMRV and the PMV, determine if rental subsidy exists or if there is another reason for reduced rent as follows:

   Ask the landlord if the reason the monthly required rent is less than the CMRV is any of the following:

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     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, enter the rent control maximum as the CMRV (see definition in B.1. above) on the Home Ownership and Rental Liability page and the system will determine that no rental subsidy exists;

   • •

     the tenant performs servicesin return for shelter (see SI 00835.390, “Food, or Shelter that is Remuneration for Work but is Not Wages”); or

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     excludable public housing assistance makes up the difference between the CMRV and the amount of the monthly required rent the household must pay (see SI 00830.630, “Federal Housing Assistance”). Enter the CMRV as the monthly required rent.

3. c. 

   Absent one of the situations in D.1.b, immediately above, determine the amount of rental subsidy by subtracting the monthly required rent from the CMRV or PMV, whichever is less. The difference is the rental subsidy.

4. d. 

   The system will divide the rental subsidy by the number of household members to determine the individual’s share that will count as ISM under the PMV.

On the Home Ownership and Rental Liability page enter the following:

1. a. 

   The amount of the monthly required rent;

2. b. 

   The household member related to the landlord;

3. c. 

   The verification of rental liability and the method of contact; and

4. d. 

   The amount of the estimated CMRV, the verification, and the method of contact.

   EXAMPLE: The recipient pays $280 monthly required rent in October 2024. The landlord (who is the recipient’s child) verifies the monthly required rent and states that the CMRV is $410.

   The technician inputs the $280 monthly required rental on the House Ownership and Liability page and records the estimated CMRV as $410. Based on landlord contact, the technician updates the claim path and creates a DROC to document confirmation of the monthly required rent and estimated CMRV.

   Because the PMV ($334.33 in 2024) is less than the CMRV ($410), the system will compute the amount of the rental subsidy as $54.33, which equals the difference between the monthly required rent ($280) and the PMV ($334.33 in 2024).

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 (e.g., Report of Contact page). For guidance on completing the Home Ownership and Rental Liability page, see MS INTRANETSSI 010.012.

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

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  If the answer is “no,” do not further develop for possible rental subsidy.

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  If the answer is “yes," go to 2.

Contact the landlord for the monthly required rent, estimated CMRV, and the reason for accepting a reduced rent, if any. See 3 and 6 below for separate instructions even though you ask for all three items via a single request.

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

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  If you contact the landlord face-to-face or by telephone, explain that rental subsidy can occur when the monthly 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 SSI payments or none at all.

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  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 a Report of Contact page 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.

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  You may also use form SSA-L5061 to document the landlord’s responses. For instructions on completing the form or electronically documenting the information obtained on the SSA-L5061, please see SI 00835.382, “Form SSA-L5061 (Letter to Landlord Requesting Rental Information)”.

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  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.”

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.

1. a. 

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

2. b. 

   If the monthly required rent is less than the CMRV go to 6.

Obtain the landlord's statement about the reason for accepting a reduced rent and if any of the following subsidy exceptions applies, document a Report of Contact page following SI 00835.380C.3, and complete the Home Ownership and Rental Liability page per SI 00835.380D.1.b. in this section.

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  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 and post the rent control maximum as the CMRV per the definition in SI 00835.380B.1 above;

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  the tenant performs services in return for shelter (see SI 00835.390 “Food or Shelter that is Remuneration for Work but is Not Wages”); or

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  excludable public housing assistance makes up the difference between the CMRV and the monthly required rent (see SI 00830.630 “Federal Housing Assistance”).

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  If the landlord's reason is none of the above, or if the landlord is unable or unwilling to provide a reason, go to 7.

1. a. 

   General - If the monthly required rent is less than the CMRV, subtract the amount of the monthly required rent from the CMRV to determine the rental subsidy. The amount of ISM is capped at the PMV.

2. b. 

   Exception - For residents of the Second and Seventh Circuits, as well as Texas (see SI DAL00835.380), determine the amount of rental subsidy by subtracting the amount of the monthly required rent from the lesser of the applicable PMV or the CMRV. The amount of ISM is capped at the PMV.