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Housing Deduction
Allowable Expenses [63-502.362]
Include the following expenses in the housing deduction.
| Allowable expenses | Additional information or restrictions |
| Rent |
Allow rent only for the month the expense is billed, regardless of when the rent is actually paid to the landlord. A client chooses to pay a few months of rent in advance. The shelter deduction is allowed for each month that the rent is billed, regardless of when the rent was actually paid to the landlord. The rental agreement requires that the client must pay for both the first and last month, when moving into their new apartment. Even though the client is paying for the last month in the first month, the last month rent deduction will be allowed in the last month. The client cannot afford to pay both the first and last month’s rent, which is required by the rental agreement. As a result, the landlord allows the client to pay the last month’s rent in installments. Even though the client is paying the rent for the last month in installments, the expense for the last month will be allowed in the last month of the rental agreement. Include rent billed for the old and new address when the household moves in the middle of the month. Include rent paid with a loan or other exempt income. (Exception: Expenses paid by an exempt reimbursement, vendor payment or income-in-kind are not allowable.) Include rent paid with a nonexempt GA vendor payment. |
| Mortgage Payments |
Include principal and interest billed on mortgage payments. Include a second mortgage payment, regardless of the use of the money obtained from the mortgage. |
| Loan Repayments for a Mobile Home Purchase | Include principal and interest billed on these payments. |
| Property Tax | Include state and local taxes. |
| Insurance on the Structure | Only on the structure; not for separate costs on furniture or personal belongings |
| Mandatory Homeowners Association Fees |
Only if the house
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| Home Repairs | Only when homes have been substaintially damaged or destroyed due to a natural disaster, such as fire, flood, or earthquake; and the costs have not or will not be reimbursed by private or public relief agencies, insurance companies, or any other source. |
| Vacant Residence |
Only when the home is temporily unoccupied by the entire household due to
To allow a deduction:
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Nonallowable Expenses [63-502.35]
Do not allow the following expenses as a housing deduction.
| Do not allow | Additional Information |
| Late Charges | |
| Security or Cleaning Charges/Deposits | |
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Home Equity Loan |
Defined as a loan which uses the property as collateral, but which is not used to purchase property. (This is different from a second mortgage, which is allowable.) |
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Garage Rental |
When rental expenses are broken out with a separate charge for the garage, only the expense for living quarters is allowable. |
| Appliance Rental |
When expense for appliances are broken out as an identifiable cost, these are not allowable. A recipient pays $250 each month for rent and has a separate agreement (and provides a separate receipt or identification on the rent receipt) to pay an additional $35 each month for the use of a refrigerator, dishwasher and the laundry room. Only the $250 is allowed. Note: A recipient provides verification that his/her rent is $285 each month (without the breakdown of the cost for the refrigerator, dishwasher and laundry room use). $285 is used to compute the shelter deduction. |
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Insurance on the Dwelling’s Contents |
Allow insurance only on the structure itself. Insurance on the furniture and personal belongings within the dwelling is not allowable. |
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Housing Costs Claimed as a Business Expense |
The PORTION of the total housing costs that is being claimed as a self-employment business expense is not allowable as part of the household’s shelter expense. Client rents a 4-room apartment for $700 per month. She is self-employed as a manicurist and uses one of the bedrooms as her salon. She chooses actual business expenses. Total rent $700 divided by 4 rooms x 1 room used for business = $175 allowed as a business expense. Total rent ($700) minus amount claimed as a business expense ($175) = Allowable housing expense ($525) to be used in the CalFresh budget. |
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Paid by Exempt Income-in-Kind |
The head of HH works as an apartment manager and receives free rent in addition to his salary. The free rent is exempt as income-in-kind. Do not allow a rent deduction. |
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Paid By Exempt Vendor Payment |
A relative is paying the rent, for a household, directly to the landlord each month. This is an exempt vendor payment. Do not allow a deduction for the rent. If the vendor payment is paid in lieu of legally obligated money payment, it would not be considered a vendor payment and the amount paid would be counted as unearned income and the shelter deduction would be allowed. An absent parent is court ordered to pay $1,000 monthly to his ex-wife and children. The client and her husband decide that it would be easier if he paid the $750 monthly rent and gave her the remaining $250 per month. Because the payment is legally obligated and otherwise payable to the household, the entire $1,000 must be counted as unearned income and the household is entitled to the shelter deduction. |
Homeless Households
Households which are homeless and incur, or reasonably expect to incur housing costs during the month may choose between:
- The Homeless Shelter Deduction, OR
- The actual cost of housing and SUA, LUA or TUA. In order for one of these utility deductions to be allowed the homeless household must verify shelter costs.
Refer to Homeless Households for further information.
A 4-person HH’s only income is $1000 UIB. They are evicted and temporarily move into a kitchenette motel, where they must pay $200 weekly. Since they are now considered homeless, they may claim their actual housing costs.
The following chart shows the computation of their excess shelter deduction based on their actual housing costs.
Computation of Excess Shelter Deduction
| $1000 | UIB |
| -$134 | Standard Deduction |
| =866 | |
| ÷ 2 | |
| = $433 | 1/2 of income |
| $866 | ($200 x 4.33) rent |
| - $433 | |
| =$433 | Actual excess shelter deduction |
($417 MAXIMUM excess shelter deduction).
Related Topics
Overview - Shared Living Situations