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State of Wisconsin |
Release 24-03 |
The shelter deduction is determined by the food unit’s reported monthly expense obligation for the current place they are living.
The Shelter and Utility deduction is determined by adding the shelter expense to the utility standard (such as the HSUA or EUA), the total of these is the Shelter Utility deduction (CWW budget page shows this as shelter/utility cost). If the total shelter and utility deduction is more than 50% of the adjusted income the assistance group will receive a deduction.
The shelter and utility deduction cannot exceed the shelter maximum, this is a capped amount (see Section 8.1.3 Deductions) unless the assistance group includes an elderly, blind, or disabled individual. Assistance groups that include elderly, blind, or disabled individuals have no shelter cap.
Private payments and loans
Sometimes a relative or friend who is not a food unit member will pay the food unit's shelter directly to the provider or landlord on behalf of the food unit. In such cases, the IM worker should determine if the payment is a loan.
If the payment is a loan, it is excluded from income, and the expense is allowed in the shelter computation. If the payment is not a loan and a relative or friend makes the vendor payment, it must be excluded from income and the shelter expense is not allowed as a deduction (see Section 4.3.4.3 Disregarded Unearned Income).
Deductible shelter expenses include:
| Note | Renter’s insurance is not an allowable shelter deduction. |
See Section 1.2.6.2 Verify Only If Questionable for a list of verification sources that can verify shelter and utility expenses if the expense is found questionable.
Do not count surcharges such as pet expenses or extra garage rentals as shelter or utility expenses. The monthly amount of rent the individual is obligated to pay should be taken into consideration each month when the shelter deduction is determined without regard to when the rent is actually paid. Only allow current monthly expenses.
Do not include arrearages, late charges, or discounts for early payment.
Disregard HUD and FMHA payments paid directly to the landlord or mortgage holder as an expense. Only include the amount the food unit owes after the HUD or FMHA payments as a rent expense.
Do not allow in-kind payments as a shelter deduction. This includes arrangements such as receiving free rent for providing child care, or other services. In these situations, no rent deduction is allowed, no income is counted, and no child care deduction is allowed.
Include costs for the repair of damages to the food unit's home due to a natural disaster as a shelter expense. Examples of natural disasters are fires, floods, hurricanes, and tornadoes.
Do not count expenses for repairs that have been or will be reimbursed to the food unit by any private or public relief agency, insurance company, or any other source.
If anyone in the household shares the shelter cost with the food unit, create a separate shelter sequence for each contributor using the correct obligation amount for which each contributor is responsible.
When a self-employed food unit claims the total shelter costs as a business expense, do not allow any shelter deduction. If the food unit claims a percentage of the shelter costs as a business expense, the remaining percentage is a shelter deduction.
If the percentage used for the business expense was not self-declared, use IRS form 8829 or the “Expenses for business use of your home” line from IRS form 1040 Schedule C to determine the amount of the home that was claimed as a business expense. Any remaining amount that was not counted as a business expense should be allowed as a shelter expense.
Food units that have received a WHEAP or LIHEAP payment greater than $20 in the current month or within the past 12 months will receive the HSUA. WHEAP, LIHEAP, or other energy assistance payments may be received at any address (in or out of state) in the current month or the past 12 months.
Food units that have not received WHEAP or LIHEAP will receive the appropriate utility standard based on the utility obligation(s) incurred by the food unit as described below.
Utility Standards
A heating expense is only allowed if the food unit is responsible for the obligation separate from their rent, regardless of whether the resident lives in subsidized housing, unless an individual in the food unit has received a LIHEAP/WHEAP payment in the current month or past 12 months.
If anyone in the household shares the utility cost with the food unit, create a separate utility cost sequence for each contributor, using the correct obligation amount for which each contributor is responsible.
Ongoing expenses paid less often than monthly, such as seasonal expenses, should be budgeted monthly over the entire certification period. For example, a food unit that pays a gas bill for heat only in the winter months is allowed the HSUA for the entire certification period.
If the food unit pays an air conditioning surcharge separate from their rent, the expense is allowed as a non-heat electric utility expense. If the air conditioning expense is the only allowable utility expense, or the only other allowable utility expense is a separate, non-heat electric bill, the food unit would receive the EUA. If the food unit with the air conditioning expense has an additional allowable utility expense of a different type, the food unit would receive the LUA.
When individuals in a food unit have received a WHEAP payment greater than $20, they will always qualify for the HSUA. In rare instances, a non-heat WHEAP (also known as an energy assistance payment) is granted to some low-income housing individuals. Individuals that receive this type of energy assistance payment are eligible for the full HSUA. Verification of the energy assistance payment is needed. Enter a case comment to state the receipt of energy assistance and that the WHEAP response was marked as “Yes” to apply the HSUA.
IM workers will need to determine the payment amount from out-of-state LIHEAP or other energy assistance programs because other states’ LIHEAP payments may be less than the $20 amount necessary to qualify for the HSUA.
| Example 1 | Bob and Mary live together but are in separate food units. Bob received a WHEAP payment in the current month. He is entitled to the full HSUA. If Mary pays any portion of the heat expense, she is also entitled to the full HSUA. If she does not pay any portion of the heat expense, she is not entitled to the HSUA. |
| Example 2 | A food unit claims to have received an energy assistance payment for non-heat expenses. The food unit provides a letter from the local energy assistance office showing a grant amount of $100.00. The food unit is entitled to the full HSUA; enter a “Yes” for the question, “Has your household received WHEAP in the current month or past 12 months?” |
| Example 3 | A food unit reports paying an air conditioning surcharge (in addition to their rent) as well as a non-heat electric bill. Because both utilities are counted as an electric expense and the food unit does not have any other type of allowable utility expense, the food unit is entitled to receive the EUA. |
Special Situations
If a food unit reports a change in address, they are not required to report a change in utilities; the food unit may keep the utility standard applied to their food unit until their renewal. If, however, the food unit does report a change in utilities, enter the appropriate new shelter and utility expenses. If WHEAP was received in the current or past 12 months; the food unit is entitled to the full HSUA regardless of current utility obligations.
When utility bills are not in a food unit member’s name, but the food unit claims responsibility for the bill and the address for the utility bill is the same as the food unit’s address, allow the appropriate utility standard. If separate food units share utility expenses and a residence, each food unit should be granted the full utility standard, regardless of which food unit receives the bill.
If a homeless food unit claims to have both temporary shelter and utility costs, the appropriate shelter and utility standards should be granted. If this is determined questionable, follow the verification policy below.
Self-employed food units who claim 100% of utility expenses as a business deduction on their tax forms are not entitled to a utility allowance. If less than 100% is claimed as a business deduction, the food unit is entitled to the appropriate utility allowance.
Verification
If a food unit claims to have received WHEAP, verification will be required. IM workers have access to this verification via the WHEAP information data exchange. A WHEAP and/or LIHEAP payment must be received in order to qualify for the HSUA. In some instances, a WHEAP payment might not display on the WHEAP Information data exchange. If the individual is stating that they did receive a WHEAP payment and the information does not display, a worker should request verification from the food unit.
| Note | If a household receives WHEAP, there will be no WHEAP Information data exchange match if the payee is not a food unit member. The food unit is entitled to the HSUA if the heating expense is shared among the household and the food unit. |
Regardless of whether an applicant or member received a WHEAP payment in the current or prior 12 months, workers should still enter the expenses declared by the applicant or member on the Utility Costs page. For food units that have not received a WHEAP payment, verification of the food unit’s utility obligation(s) will be required only if determined questionable. If verification is requested and not submitted, the utility expense would not be considered when determining which utility allowance is appropriate for the food unit.
| Example 4 | A food unit owns their home. If the applicant or member claims responsibility for all household utilities, including heat, verification should not be required as this is not questionable. |
| Example 5 | A food unit claims to be responsible for paying heat in their apartment. The lease indicates heat is included in the rent. Because there is conflicting information, the utility expense claimed would be considered questionable. |
7 CFR 273.9(d)(6)(ii)(D)
Allow shelter and utility expenses for a dwelling. The food unit is considered temporarily absent when the absence is caused by any of the following:
For costs of a home vacated by the food unit to be included as an allowable shelter or utility expense, the following must be true:
Allow the appropriate utility allowance for a resident of a qualified group home if the utilities are identified separately. Residents of group living arrangements have no limit on the amount used as a shelter deduction because they are disabled. Allow shelter and medical deductions for room and medical costs that can be separately identified.
Sometimes room, meals, and medical costs cannot be identified separately. If the cost of room and meals are combined into one amount, the amount of the payment that exceeds the maximum allotment for a one-person FoodShare assistance group can be used as the shelter deduction.
If the amount paid for medical and shelter cost cannot be separately identified by the group home, no deduction is allowed for the cost.
| Example 6 | Bev pays the community-based residential facility (CBRF) $500 and receives shelter, meals, and medical care. Separate costs cannot be identified. Do not allow a deduction. |
| Example 7 | Shirley is in a CBRF and her room and meal costs are combined into one amount of $600 per month. Separate costs cannot be identified. A one-person allotment is $281 (effective October 1, 2022). $600 - $281 = $319. The shelter expense is $319. |
7 CFR 273.9(d)(6)
Homeless food units may be eligible for a shelter deduction using shelter expenses if they incur monthly expenses for shelter and a standard utility allowance (see Section 4.6.7.3 Standard Utility Allowances) if they are responsible for utility expenses separate from shelter expenses or have received a LIHEAP or WHEAP payment in the previous 12 months.
Determine eligibility for shelter residents using only their income. Include only expenses they are responsible for. Count room payments to the shelter in the food unit's shelter expenses. Homeless food units with reported shelter costs will receive the homeless shelter deduction (see Section 8.1.3 Deductions). Homeless food units with reported shelter costs have the option to choose between the homeless shelter deduction and the excess shelter expense deduction.
Do not include back payments on previously owed shelter expenses since the expenses were incurred before the budgeting period. The exception to this is vendor payments that must be repaid. Food units who have shelter expenses paid with a vendor payment can count the actual shelter costs if they repay the vendor payment.
| Example 8 | A third party pays Gwen's shelter expenses while she is living in a homeless shelter during March. She agrees to pay the money back when she starts work. She is employed in April and moves. She incurs her March shelter costs in April since that is when she is expected to repay the third party. Her new shelter costs also are due in April. Include both March and April shelter costs for April. |
This page last updated in Release Number: 24-02
Release Date: 08/22/2024
Effective Date: 08/22/2024
Notice: The content within this manual is the sole responsibility of the State of Wisconsin's Department of Health Services (DHS). This site will link to sites outside of DHS where appropriate. DHS is in no way responsible for the content of sites outside of DHS.
Publication Number: P-16001