EXAMPLE 1: Separate Households in a Private Dwelling
Mr. Smith, an eligible individual, lives with a family. Mr. Smith rents an upstairs
bedroom and bathroom for $200 per month. Mr. Smith tells the CS that he considers
himself to be living in a separate household from the family. He tells the CS that
he eats some of his meals in restaurants. The landlord states that Mr. Smith does
not pool his money with the family's for food and utility bills or pay any money toward
property taxes or household repairs. Mr. Smith is allowed to make local phone calls
but pays for any long distance calls he makes. He frequently uses the family's kitchen
to prepare his own food which he stores on a shelf reserved for him in the family's
refrigerator. Based on the facts in this case, the CS determines that Mr. Smith is
living in a separate household and documents the file as required. The CS determines
that Mr. Smith has rental liability based on “room rental in a private
dwelling.”
EXAMPLE 2: Not Separate Households
Ms. Jones, an aged individual, lives with her brother, Mr. White, in a home he owns.
Ms. Jones signs a statement that she considers herself a separate household and pays
$200 a month rent to her brother each month. To determine whether Ms. Jones' payment
is actually a rent payment, the CS proceeds to develop whether Ms. Jones is in a separate
household. The CS discovers that Ms. Jones pays $200 per month most of the year, but
pays more in the winter when utility bills are higher. Ms. Jones states that she and
her brother each put $125 in a drawer on the first of the month and use this money
for groceries. They take turns shopping and cooking, and if the grocery money runs
out before the end of the month, they both contribute additional money. Mr. White
confirms this information and tells the CS that the amount his sister pays is based
on what it costs to operate the home. Based on all the facts, the CS determines that
Ms. Jones and Mr. White are not in separate households operating as separate economic
units. Therefore, the CS rules out rental liability and flat fee, and proceeds with
sequential development per SI 00835.001B.