In-Kind Support and Maintenance (ISM)

ISM is a type of unearned income defined as “shelter that is provided to the applicant/recipient by another person inside or outside the house.” ISM also applies when an applicant or recipient does not pay their pro rata share of shelter.

Note: Any outside assistance that is not counted as income in the CAPI budget, does not count as income for ISM. Example: Section 8 housing subsides, CalFresh benefits, and any assistance based on need wholly funded by a federal, state, county, or city government.

Inside and Outside ISM

CAPI applicants/recipients may be fully or partially supported by ISM, and ISM may be “inside” (provided by someone residing in the CAPI applicant’s/recipient’s household) or “outside” (provided by someone residing outside the household).

Inside ISM

Inside ISM occurs when a CAPI applicant/recipient resides in a non-public assistance household with at least one person (other than his/her spouse or minor child), and either:

The CAPI applicant/recipient receives contributions from others within the household and has rental liability or ownership interest, or
The CAPI applicant/recipient purchases his/her own food separately (regardless of whether the food is purchased with earned income or with unearned income such as CalFresh benefits) or earmarks food or shelter payments.

Example 1Example 1

A CAPI applicant resides in a non-public assistance household consisting of her daughter, son-in-law, and their children. The CAPI applicant purchases her own food and gives her daughter $50 per month to help with shelter and utilities. However, her pro rata share is much higher than $50. Since she pays less than the pro rata share for rent and utilities, then ISM applies.

NOTE: If she pays at least pro rata share, then she is deemed to reside in her own household and inside ISM would not apply.

Outside ISM

Outside ISM applies when a third party who does not live in the household makes a payment to a vendor for any item of the household’s shelter.

Example 1Example 1

A CAPI couple resides in their own apartment. The lease states that their monthly rent is $800, utilities included. The couple have no income other than CalFresh benefits. Their daughter pays the $800 directly to the landlord each month. ISM would apply. However, if their daughter provides them with $800 cash each month, so they can pay their rent, the $800 constitutes regular unearned income (not ISM) and must be counted in full.

If the applicant/recipient is receiving ISM from both outside and inside the household, the total of the outside ISM and the inside ISM must be counted as income to the claimant (Subject to thePMV).

When ISM Applies

The most common situations when ISM applies are when the applicant/recipient:

Receives free shelter and purchases food with CalFresh benefits
- (The pro rata share of shelter expenses is counted as ISM in the CAPI budget (subject to PMV). the CalFresh benefits are not counted as ISM because CalFresh is not counted as income).
Receives some free shelter or some free food.
- IMPORTANT: If he/she receives some or all free shelter and some or all free food, the situation is of a HOA and reduced needs payment standard will apply.

Receives full or partial support from outside of the household
- All shelter and food is paid on behalf of the applicant/recipient by one or more persons or organizations outside of the household (outside ISM).

When ISM Does Not Apply

ISM does not apply when the CAPI applicant/recipient:

Lives alone or with a spouse and/or minor children only. (There is no one in the household who can provide ISM).
Is homeless (not considered to be living in a household).
Receive full support from within the household (HOA-reduced needs payment standard applies).

Note: ISM can only be budgeted in non-public assistance households.

ISM in Minors

When a minor resides with one or both parents, the minor is presumed to be fully supported. When a parent is ineligible for either CAPI or SSI/SSP, the value of ISM received by the minor from the parent is accounted for through the parent-to-child deeming process. The minor’s CAPI eligibility and payment amount is calculated using the SOC 452A worksheet and the reduced needs standard for disabled/blind minors is used from the CAPI payment standards table. However, when a disabled or blind minor receives ISM from sources other than a parent he/she resides with, including ISM provided by other relatives and non-relatives residing inside or outside the household, the ISM is treated as unearned income to the child and is listed on the SOC 452A in Column B on line 2.

Determining and Calculating Income Support and Maintenance (ISM)

Reminder: The "CAPI ISM Cheat Sheet" is available in reference materials as an additional resource.

To determine ISM follow the steps below:

Evaluate all countable income to determine whether ISM is applicable (Use SOC 453).
Determine pro rata share: Divide the household expenses by the total number of household members (including children).
1. If the CAPI individual is paying at least his/her pro rata share, then ISM does not apply (use Independent Living Payment Standard).
2. If the CAPI individual is NOT paying at least a pro rata share, then continue to evaluate for reduce needs payment standard.
  1. If CAPI Individual is receiving free food and shelter, then ISM does not apply (use the reduce payment standard for Household of Another situation).
  2. If CAPI Individual is NOT receiving free food and shelter, then determine ISM amount (value) using shelter expenses only.
    1. If ISM less than the PMV, then Enter actual value of ISM on the SOC 452
    2. If ISM is more than the PMV, then Enter PMV on the SOC 452

Note: If the reduced needs payment standard applies (HOA), then ISM does not apply [MPP 49-035.521(b)]. See table under Living Arrangements.