If the EU incurs an allowable utility expense, budget the appropriate mandatory utility standard(s). Use client statement for verification of utility expenses, unless questionable. If questionable, record a comment on the Shelter Expense (SHELEXP/FMXK) screen explaining why the shelter expenses are questionable.
Utility expenses are charges for:
The following are not considered utility costs:
The mandatory utility standards are as follows:
The standard utility allowance is $380 per month. The SUA is a mandatory standard expense that includes all utility charges, heating/cooling and cooking fuel, electricity, water, garbage, sewer, trash collection fees, and telephone cost.
Assess the EU's eligibility for the SUA at each application and reapplication. For the SUA to be used in calculating shelter cost, the EU must:
OR
NOTE: LIHEAP payments must be more than $20 to qualify an individual for the SUA.
EXCEPTION: Allow the use of the full SUA for EUs in public housing with shared meters that are only charged for excess utility costs.
DMH participants who pay a portion of utilities are entitled to the SUA if the utility expenses meet the criteria above.
Primary heating costs are verifiable utility expenses relating to the operation of the primary source of heat. Heating costs can be for operation of a furnace, wood stove or fireplace if wood is purchased, or electrical or kerosene space heater if the space heater is used as the primary source of heat. Utility costs for the operation of a space heater, electric blanket, heat lamp, or a cooking stove, etc. when used as a supplemental heating source do not qualify the EU for the SUA. The cost of electricity to power an electric blower for a furnace does not qualify the EU for the SUA when they are not charged for the fuel such as oil or gas to power the furnace.
Primary cooling costs are defined as verifiable utility expenses relating to the operation of air conditioning systems or room air conditioners. Cooling costs related to the operation of fans are not included as a primary cooling cost.
EUs not incurring any separate utility charges or billed separately for water, cooking fuel, sewer and/or garbage collection are not entitled to the SUA. The EU may be entitled to the non-heating cooling standard if they are billed for any of these utility expenses.
The NHCS is $303 per month. If the EU does not qualify for the SUA, but incurs two or more utility expenses, they may qualify for the NHCS. The NHCS includes utility charges which the EU incurs other than for primary heating/cooling.
Assess the EU's eligibility for the NHCS at each application and reapplication. For the NHCS to be used in calculating shelter cost, the EU must:
EUs with primary heating/cooling costs included in the rent, but who are billed separately for two utility expenses of electricity, water, gas/cooking fuel, sewer, and/or garbage collection are entitled to the NHCS.
NOTE: The NHCS does not include telephone costs. The telephone standard may be used with the non-heating/cooling standard.
DMH participants, who pay a portion of two utility costs but are not entitled to the SUA, are entitled to the NHCS.
The LUA is $125 per month. If the EU does not qualify for the SUA or NHCS, but incurs one utility expense, they may qualify for the LUA. The LUA includes utility charges other than for heating/cooling which the EU incurs.
Assess the EU's eligibility for the LUA at each application and reapplication. For the LUA to be used in calculating shelter cost, the EU must:
EUs with primary heating/cooling costs included in the rent but who are billed separately for one utility expense of electricity, water, gas/cooking fuel, sewer, or garbage collection are entitled to the LUA.
NOTE: The LUA does not include telephone costs. The telephone standard may be used with the non-heating/cooling standard.
DMH participants, who pay a portion of one utility cost but are not entitled to the SUA or NHCS, are entitled to the LUA.
The telephone standard is $61 per month. If the EU is not entitled to use the SUA but has a qualifying telephone expense, use the standard telephone allowance. The telephone standard may be used with the NHCS or LUA when the EU is entitled to both mandatory utility standards.
Qualifying telephone expenses are:
Pre-paid phone cards that are not associated with a specific phone are not eligible for the telephone standard.
Determine the appropriate standard for utility expenses for each EU at the following times:
If the EU reports an address change, but does not report a change in shelter expenses:
If the EU reports an address change and a change in shelter expenses:
Use the following policy for EUs with special circumstances.
Example: An elderly individual resides in a senior citizen housing complex. Utilities are included in the rent, but the individual is billed $10 per month for excess cooling costs in June, July, and August for the use of an air conditioner. Allow the SUA during the entire certification period.
The EU is eligible for utility expenses of a vacated home not occupied by the EU because of employment or training away from home, illness, or abandonment caused by a natural disaster or casualty loss. The EU must intend to return to the home for the shelter costs of the vacated home to be allowed as a deduction. The home must not be leased or rented during the absence of the EU. The current occupants of the home, if any, must not be claiming shelter costs for food stamp purposes.
Use the NHCS or LUA in calculating the shelter costs for the vacated home If the EU incurs or is billed for two or more utility expenses at the vacated home, allow the NHCS. If the EU incurs or is billed for only one utility expense at the vacated home, allow the LUA.
EXAMPLE: Mr. Y's is attending training away from home but plans to return when his training is complete. He is temporarily living with friends; however he is still responsible for shelter expenses at his home. He has the following monthly expenses for his vacant home: rent of $500, electric expense for heating and cooling of $100 and telephone expense of $40. The ES will enter shelter expenses of
Use actual utility costs for both homes. If budgeting actual costs for both homes, allow the telephone standard if the EU incurs the cost of a telephone for either the occupied or the vacated home.
EXAMPLE: Mr. X's home was damaged in a natural disaster, and is uninhabitable. He is temporarily living in an apartment until he gets his home fixed. He has the following monthly expenses for his vacant home: a house payment of $1200, gas for heat of $80, electric of $200 per month and telephone expense of $40. The rent for his apartment is $800 per month; he is paying gas of $20, and electric of $50 for heating and cooling. The ES will enter shelter expenses of
Use the NHCS in determining shelter costs for homeless EUs that incur or are billed for two or more utility expense for all or part of the month. Use the LUA in determining shelter costs for homeless EUs that incur or are billed for only one utility expense for all or part of the month. The EU is not entitled to the NHCS or LUA if it is not billed for utility costs separately from the rent.