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Shared Living Expenses Deduction
Definition [63-502.37]
Shared living expenses include allowable shelter expenses that the CalFresh eligible household member(s) shares with:
- Excluded member(s)
- Another separate household which may or may not be participating in CalFresh.
Proration Method Steps
When SEPARATE households and excluded household member(s) living in the residence share living expenses, there are TWO steps required in the proration:
- Determine each separate household’s share of the shelter and utility costs (Refer to Separate Households) and
- Determine the amount allowable to the CalFresh eligible household members. (Refer to Shelter Proration - Within CalFresh HH) for the steps in this determination.
Separate Households
Separate Household Status Determination
To determine the number of HH living in the residence, the HH composition rules apply (i.e. blood/marriage and customarily purchase and prepare food together). Refer to HH Decision for an overview chart.
A determination must be made for any individual residing in the home who is, an ineligible student, ABAWD or non-citizen, IPV or work disqualified to determine if he/she would be an otherwise eligible member of the CalFresh HH per HH composition rules.
If he/she would be a mandatory CalFresh HH member, then the individual is considered an EXCLUDED member of the CalFresh household (i.e. within the CalFresh HH).
If he/she would NOT be a mandatory CalFresh HH member, then the individual is considered a separate household.
CalWORKs mom and her IPV husband. The husband would be a member of the CalFresh household if he were not IPV. Therefore, she is an excluded member of the CalFresh HH (within the CalFresh HH) and NOT a separate household.
CalWORKs mom with 2 children on CalWORKs. Her 19-year old son works part-time (15 hours per week) and is a full-time college student. He states he buys and prepares food separately. He pays $150 for rent and utilities monthly.
Per regulations, children under age 22 cannot be granted separate CalFresh household status. If the 19-year old were not an ineligible student, he would be a mandatory member of the CalFresh HH even though he purchases and prepares food separately. Therefore, he is an excluded member of the CalFresh HH (within the CalFresh HH) and NOT a separate household.
A mom and her 2 children are on CalWORKs. Her 19-year old brother moves into the apartment and sleeps on the couch. He works part-time (15 hours per week) and is a full-time college student. He states he buys and prepares food separately. He pays $150 for rent & utilities monthly.
Per regulations, since he buys and prepares food separately and is not required to be included in his sister’s CalFresh HH (under blood/marriage rules), he is a SEPARATE household. The fact that he is an ineligible student is irrelevant.
Shelter and Utility Deductions - Separate Households
Allowable Shelter Expense
If two or more separate households share a residence with a CalFresh household, the eligibility worker must clarify the housing situation with the client to determine the correct shelter expenses. The journal entry must indicate which shelter deductions are allowed using the provided chart.
| Housing Situation | How the Rent is treated as income |
What is allowed as a Shelter Deduction |
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A CalFresh household (CF HH) rents a home with non-household member(s) & all parties are on the lease agreement.
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This is a shared housing situation. Counties must not count the rent money from the non-household member as income. |
Only CF HH’s portion of the rent must be allowed as a shelter deduction.
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A CF HH rents a home and subleases a room(s) to another nonhousehold member (s), and only the CF HH is on the lease agreement.
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CF HH receives the rental payment If the CF HH received the rental payment directly from the non-household members, the money received by the CF HH from the non-household member(s) for the rent is considered unearned income to the CF HH.
CF HH does not receive the rent payment If a nonhousehold member pays rent directly to the landlord, the money is not counted as income. |
The entire rent amount owed to the landlord is allowed for shelter deduction.
Allow the amount that the CF HH pays as the shelter expense.
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A CF HH owns a home and rents part(s) of it to non-household member(s).
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The non-household member(s) are considered roomers, and the rent they pay the CF HH (landlord) is considered self-employment income. |
Allow the entire shelter expenses as a deduction for the CalFresh household.
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A household states that it rents a house for $2,000 per month and rents out a room for $500 per month. The EW clarifies that the separate household renting the room is not on the lease agreement and pays the rent directly to the first household. The total rent of $2,000 is considered shelter expenses, while the $500 is classified as unearned income. The EW then records the household's statement about the shelter information on the journal detail page.
Shelter expenses listed on the CalFresh application, SAR 7, or recertification should be used to calculate the excess shelter cost deduction without requiring verification. If the housing information provided is unclear, the EW must communicate with the household to clarify their housing situation and document their statement in the journal detail page.
If the shelter information is still questionable, the EW can request verification and must doucument in the case journal why the information reported by the household was determined questionable.
Allowable Utility Expenses
When a CalFresh household lives with and shares shelter and/or utility expenses with another separate household (which may or may not be participating in CalFresh), each household will be allowed the full SUA.
Note: SUA is NEVER prorated. The eligible CalFresh HH members are entitled to the FULL SUA.
Related Topics
Overview - Shared Living Situations