Utility Standards SR 03-06, 04/03 (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 utility standards:

• the heat and utilities standard for individuals who pay for heating or cooling costs.

 Exceptions:

 Households living in subsidized housing arrangements with heat included are not entitled to the heat and utilities standard.

 Households that live in separate residences but share a single utility meter, including households in public housing in which heat is not included, 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 two (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.

Prorate the appropriate standard for assistance groups with a member who is excluded. See FSM 611.05, Income of Disqualified and Excluded Individuals, for a definition of excluded members.

Do not prorate the appropriate standard for households sharing living quarters. Each household is eligible for the full utility standard applicable to their household circumstances.

Exceptions:

• No household charged only for excess costs for heat or electricity is entitled to a standard that includes heating or cooling costs. Regardless of shelter type, apply only the actual rental charges for individuals having costs for heating or cooling, electricity, or cooking fuel included in their rental amount even when 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).

• Unless the household lives in subsidized housing in which heat is included, apply the full heat and utilities standard utility allowance for the household’s certification period up to 12 months, when the household:

- intends to apply for the Low-Income Home Energy Assistance Program (LIHEAP);

- has applied for LIHEAP;

- is a current recipient of LIHEAP; or

- has been a recipient of LIHEAP in the previous 12 months.

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• 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.

• Roomers charged for heat or utilities separately from rent costs are entitled to the appropriate standard, even if the monthly cost for the heat or utility is a fixed amount. If the room charge includes all shelter costs, with no separate amount specified for heat or utilities, the roomer is not entitled to a standard, and their monthly incurred cost is considered to be the shelter allowance.