Food Support Standard Utility Allowance Simplification

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1 # Bulletin October 18, 2010 Minnesota Department of Human Services -- P.O. Box St. Paul, MN OF INTEREST TO County Directors Tribal Human Service Directors Income Maintenance Supervisors and Financial Workers Child Care Supervisors and Staff Mille Lacs Tribal Staff Social Services Supervisors and Staff Community Organizations ACTION/DUE DATE Please read, review and implement these changes for November 1, 2010 EXPIRATION DATE October 18, 2012 Food Support Standard Utility Allowance Simplification TOPIC This bulletin outlines the Food Support (FS) Standard Utility Allowance (SUA) Simplification PURPOSE Inform county staff of this Food Support policy change for utility allowances. CONTACT Policy questions related to this bulletin should be directed to PolicyQuest. Systems questions related to this bulletin should be directed to the TSS Help Desk. SIGNED ERIN SULLIVAN SUTTON Assistant Commissioner Children and Family Services Administration

2 Page 2 I. Background: Current Food Support (FS) policy allows FS applicants/recipients to choose between actual utility expenses or three standard utility allowances (SUA) depending on the utility costs the FS household incurs. FS applicants have long been confused by the choice between actual and standard utility deductions. Data shows that most FS households have a capped shelter allowance and therefore do not benefit from the actual utility choice even if their utility bills are high. Actual utility expenses must be verified in order to be allowed as a deduction. Therefore, in an effort to simplify policy, the Department of Human Services (DHS) is implementing the use of the current Standard Utility Allowances (SUAs) effective November 1, The Food and Nutrition Service (FNS) staff has also suggested the simplification and mandatory use of the SUAs to reduce errors and provide a workload benefit reduction. Apply this policy change to new FS applications, when FS recipients report a change in address or shelter costs or at their recertification, whichever comes first. When reviewing the case for any other reason, such as the six-month report or information known to the agency, you may make the change at that time. Use MAXIS CASE/NOTEs to document this change. II. Changes to the Standard Utility Allowance for Food Support Cases: The changes to Minnesota s Standard Utility Allowance policy will include the following: Actual utility expenses will no longer be used. FS units who identify that they incur heating, cooling, electricity, and/or phone expenses will be entitled to use the mandatory SUAs. See examples for details. Standard Utility Allowances will never be prorated. Eligibility for the SUA has been expanded to include FS units that are responsible for only excess heating or cooling costs. These units will be eligible for the SUA of $305 deduction each month. Separate FS units who share meters and are responsible for a portion of the heating/cooling expenses will be eligible for the SUA of $305 each month. The three SUAs that will be allowed are: Mandatory Standard Utility Use this standard if Allowances $ 305 Heating/Cooling Allowance The FS unit incurs a heating or cooling expense OR the FS unit incurs only excess heating or cooling expenses OR separate FS units who share meters and expenses for a portion of the heating/cooling expense OR ineligible persons in a FS unit will not have the SUA prorated OR FS units on the Low Income Home Energy Assistance Program (LIHEAP), regardless of their expenses for heating and/or cooling.

3 Page 3 Mandatory Standard Utility Use this standard if Allowances $ 80 Standard Electric Allowance The FS unit incurs a utility expense for electricity but no heating/cooling expense. $ 28 Phone Utility Allowance The FS unit incurs a telephone expense/service, including a cell phone when the cell phone is their only phone. This standard can be given when a pre-paid card with a dollar value or number of minutes is used. The $305 heating/cooling allowance includes all the utilities for which a household is responsible. However, a FS unit may qualify for both the electric and phone allowance when only electric and phone expenses are incurred. Below are examples of how these changes will be applied: 1. Two separate FS Units live together. Their rent includes all utilities except their phone. They split the cost of basic phone service. Each FS Unit qualifies for the $28 phone allowance. 2. The household consists of an employed man and his wife who are ineligible noncitizens and their minor child who is a U.S. citizen. The household incurs costs for rent and all utilities including heat. The child s portion of the man s income and the household s rent (i.e., 1/3) is counted in the child s FS budget. However, the child qualifies for the full $305 heating/cooling allowance. 3. A FS Unit lives in a duplex with a shared gas meter. The heating bill is in the landlord s name. Each unit is responsible to pay ½ of the heating bill. Each FS Unit qualifies for the $305 heating/cooling allowance. 4. Same situation as Example 3, but one FS Unit has a roommate who pays ½ of his portion of the heating bill. They purchase and prepare meals separately. The roommate qualifies for the $305 heating/cooling allowance. 5. A FS Unit rents an apartment where the utilities, including heat, are in the landlord s name. The landlord verifies the client is charged $600 per month, $100 of which is for utilities. The $100 is a flat fee charge for utilities including heat. The FS Unit qualifies for the $305 heating/cooling allowance. 6. A FS Unit pays $540 per month for rent, which includes all utilities except phone. He has a window air conditioner and the landlord charges them an extra $10 per month during the summer months to subsidize the higher electricity costs. The FS Unit qualifies for the $305 heating/cooling allowance year round.

4 Page 4 7. A FS Unit incurs costs for heat. A relative of the FS Unit is paying their heating bill directly to the utility company until the client finds a job. They qualify for the $305 heating/cooling allowance even though a relative is paying the bill directly to the utility company. 8. A FS Unit is responsible for telephone and air conditioning. They receive a $90 monthly HUD utility reimbursement check, which exceeds their $75 average monthly electric bill. Since the HUD reimbursement check fully covers the FS Units cooling costs, they do not qualify for the $305 heating/cooling allowance, as they do not incur any out of pocket expense. They qualify for the $28 telephone allowance only. 9. A FS Unit resides in subsidized housing. They are charged a $25 excess utility charge for their window air conditioner, but have no other utility expenses. They are eligible for the $305 heating/cooling allowance. 10. A 24-year-old applicant lives with her parents. The parents do not want to apply for FS and they purchase and prepare separately. The applicant states her parents are responsible for all utilities including heat & air conditioning. She does not qualify for the $305 heating/cooling allowance. 11. A FS Unit s rent includes heat, but the unit is responsible for their own electricity, internet, phone, cable and garbage expenses. They have ceiling fans but no air conditioning. This FS unit is eligible for BOTH the $80 Standard Electric Allowance and the $28 telephone allowance. The MAXIS system will not be updated to remove the actual utility information as it is still used by the Diversionary Work Program (DWP). Code the appropriate SUA and code the number (#)/FS units as 01 to allow the appropriate full standard utility amount on STAT/HEST. The Combined Manual will be updated in the future to reflect these changes. Until then, please use this bulletin as your policy guidance. This policy change will be effective November 1, 2010 for all new FS applications, when FS recipients report a change in address or shelter costs or at their recertification, whichever comes first. If you are reviewing the case for any other reason, such as the six-month report or information known to the agency, you may make the change at that time. Use MAXIS CASE/NOTEs to document this change.

5 Page 5 III. Americans with Disabilities Act (ADA) Advisory This information is available in alternative formats to individuals with disabilities by calling Aaron Coonce at (651) (voice). TDD users can call the Minnesota Relay at 711 or (800) For the Speech-to-Speech Relay, call (877) For additional assistance with legal rights and protections for equal access to human services programs, contact your agency s ADA coordinator.