SHELTER DEDUCTIONS Department for Cmmunity Based 住房扣除部门以社区为基础的.ppt

Shelter Deductions Volume II, MS 5470 Limitations Remember that the Shelter Deduction is limited to only shelter costs that are in excess of 50% of the households income after all other deductions are applied. There’s an example of this on the next slide... Example Net Income (after deductions): $1250.00 Shelter Expenses: $895.00 Half (50%) of Net income: - $625.00 Excess Shelter Costs: $270.00 Since the excess is less than the Shelter Maximum, the deduction will be $270.00. Shelter Maximum After excess shelter costs are calculated, KAMES will not allow a deduction which exceeds the Maximum. Exception: The shelter maximum does not apply to households with elderly or disabled members. So, be sure to answer questions regarding age and disability correctly on KAMES! Allowable Shelter Deductions Allow shelter expenses as billed or otherwise become due. When do we request Verification? At application and recertification Interim change if a shelter increase would increase the benefit allotment. Rent Expense Request information from the landlord or documentation, such as a current lease, to verify the current monthly rent expense. Do not include past due amounts as part of the ongoing rent deduction. Rent Expense on KAMES Mortgage Expenses Request documentation from the lender listing costs included in the mortgage payment. Do not consider credit life as part of the mortgage deduction. Do not include amounts paid to an escrow account, because taxes and insurance are listed separately on KAMES. Mortgage Payment Example Mortgage costs include: Principle and Interest: $450.00 Payment to Escrow: $175.00 Credit Life Insurance: + $25.00 Total Payment: $650.00 Subtract the Credit Life and the Escrow payment, before entering on KAMES. Property Taxes Allow the actual property taxes, not the discounted or penalty amount. Example: The base tax bill amount is $845.00, and this payment is due by 10/31. If paid prior to 9/30, they only pay $805.00 If not paid by 10/3