(A) Who is considered a boarder?
(1) Individuals or groups of individuals who live with someone who is providing their meals and lodging in exchange for a "reasonable amount" of money; and
(2) Adults or children placed in foster care by a government agency.
(B) How is a "reasonable amount" determined for meals and lodging?
To determine if an individual is paying a reasonable amount for meals and lodging, only the amount paid for meals shall be used. A reasonable monthly payment shall be either of the following:
(1) For individuals who are provided more than two meals a day, reasonable compensation shall be an amount that equals or exceeds the maximum monthly supplemental nutrition assistance program (SNAP) allotment for the appropriate size of the boarder household; or
(2) For individuals who are provided two meals or less per day, reasonable compensation shall be an amount that equals or exceeds two-thirds of the maximum monthly SNAP allotment for the appropriate size of the boarder household.
(C) Are boarders eligible to receive SNAP?
(1) Boarders are not eligible to participate in SNAP by themselves.
(2) Boarders may participate as a member of the assistance group providing their meals and lodging, only at the assistance group's request.
(D) How is a boarder's income and resources counted for the assistance group?
(1) The income and resources of a boarder who is not included as a member of the assistance group are not counted toward the assistance group. The amount of payment that the boarder gives the household is considered self-employment income.
(2) When the boarder is an assistance group member, his or her income and resources are available to the assistance group and are counted in the eligibility determination as described in division 5101:4 of the Administrative Code.
(3) Foster care payments for children or adults who are members of the assistance group shall be considered unearned income when received by the assistance group.
(E) How is the payment from boarders counted for the assistance group?
(1) Payments from a boarder, except individuals in foster care, shall be treated as self-employment income.
(2) The income from boarders shall include all direct payments to the assistance group for meals and lodging, including contributions to the assistance group's shelter expenses. Shelter expenses paid directly by boarders to someone outside of the assistance group shall not be counted as income to the assistance group.
(3) The income of the assistance group owning and operating a commercial boarding house shall be handled as self-employment income and the criteria in rule 5101:4-6-11 of the Administrative Code shall apply.
(F) How is the cost of doing business determined?
In determining the income received from boarders, the county agency shall exclude the portion of the boarder payment that is a cost of doing business. The amount allowed as a cost of doing business shall not exceed the payment the assistance group receives from the boarder for lodging and meals. The county agency may elect one of the following methods to determine the cost of doing business:
(1) The maximum monthly SNAP benefit for an assistance group that is equal to the number of boarders; or
(2) The actual documented cost of providing lodging and meals, when the actual cost exceeds the appropriate maximum monthly benefit amount or the self-employment standard deduction as set forth in rule 5101:4-6-11 of the Administrative Code. When actual costs are used, only separate and identifiable costs for lodging and meals shall be excluded.
(G) What deductible expenses are used to determine the monthly allotment?
The net income from self-employment shall be added to other earned income and the twenty per cent earned income deduction is applied to the total. Shelter costs the assistance group actually incurs, even if the boarder contributes to the assistance group's shelter expenses, are computed to determine if the assistance group will receive a shelter deduction. The shelter costs shall not include any shelter expenses directly paid by the boarder to a third party, such as the landlord.
Five Year Review (FYR) Dates: 05/13/2016 and 09/01/2021
Promulgated Under: 111.15
Statutory Authority: 5101.54
Rule Amplifies: 5101.54 , 329.04, 329.042
Prior Effective Dates: 6/02/80, 4/1/89, 1/1/95, 2/1/99, 6/1/01 (Emer.), 8/27/01, 3/1/02 (Emer.), 5/13/02, 5/1/06, 8/1/11