Utility Standards SR 02-17, 07/02 (FSM-A)

Allow a deduction for utility costs that are incurred separately from rent or mortgage. See Part 601, Table I. Use one of the following methods:

• the actual costs that exceed the standard to which the household is entitled;

 Exception: Actual costs for telephone expenses must not exceed the current telephone standard, regardless of whether actual telephone expenses are higher than the standard.

• the heat and utilities standard for individuals who pay for heating or cooling costs, unless the actual costs exceed the standard;

 Exception: Households that live in separate residences but share a single utility meter, including households in public housing, are entitled to the full heat and utilities standard.

• the utilities-only standard for individuals who are not eligible for the heat and utilities standard but incur costs for at least 2 of the following: non-heating/cooling electricity, cooking fuel, water or sewer, installation, use, or maintenance of a well or septic system, garbage collection, or basic service fees for one household touch tone phone;

 Exception: For purposes of satisfying the 2-utility requirement, households able to verify that they own and currently use a well or septic system are not required to verify actual monthly well or septic system costs. Verified ownership and use of a well and/or septic system is automatically considered an incurred monthly expense.

• the electric-only standard for individuals who only incur costs for electricity separate and apart from rent or mortgage expenses; or

• the telephone-only standard for individuals who only incur telephone expenses separate and apart from rent or mortgage expenses and do not qualify for any of the other utility standards.

 Exception: Households who do not have regular household telephone service are entitled to the telephone-only standard if costs are incurred for cell phone service or for purchasing telephone calling cards, regardless of whether the actual costs incurred are higher or lower than the standard.

For assistance groups who share utility expenses for the same dwelling and for assistance groups with a member who is excluded due to ineligible alien status, failure to comply with ABAWD work requirements, or failure to comply with SSN requirements, prorate the appropriate standard or actual charges.

Allow switching between using a standard and using actual costs only at the end of each certification period.

Exceptions:

• Apply only the actual rental charges for individuals having costs for electricity or cooking fuel included in their rental amount even if they are billed separately for excess costs (e.g., living in public housing with central utility meters and charged only for excess costs, a penalty charge for over-usage).

• Consider households receiving payments from or who anticipate applying for the Low-Income Home Energy Assistance Program (LIHEAP) as having incurred out-of-pocket utility costs. Apply the full heat and utilities standard for 12 months after receipt of the LIHEAP payment or for the 12 months during which the household anticipates applying for the benefits:

- whether the household actually incurs separate heating or utility costs; or

- whether the assistance is paid directly or indirectly for the benefit of the household.

 Individuals who share a prorated utilities-only standard are eligible for the prorated amount of the heat and utilities standard.

• Consider households that receive HUD or FHA utility reimbursements for heating or cooling as having incurred out-of-pocket utility costs if the amount of the reimbursement is less than actual costs. Apply the higher amount of either:

- the full heat and utility standard; or

- the utilities only standard; or

- actual costs minus the reimbursed amount.

 Individuals who share utilities are eligible for the prorated amount of the appropriate standard.