TN 39 (09-96)

A. Policy

For purposes of ISM determinations, household operating expenses and the CMV of household operating costs must be expressed as monthly amounts. Bills for food and shelter items which are not paid or billed monthly (e.g., weekly, quarterly, annually, etc.) must be converted to monthly amounts.

B. Procedures

1. Real Property Taxes — Inside ISM

For inside ISM determinations, divide net taxes paid (total tax bill less any rebate or refund) by the number of months in the billing period, i.e., the number of months covered by the bill.

Use this amount as a household operating expense beginning with the month the bill is paid.

Continue to use this amount in the subsequent months of the billing period (regardless of the period covered by the tax bill).

Absent evidence to the contrary, assume that subsequent bills will be the same amount and will be paid at regular intervals.

2. Real Property Taxes — Outside ISM

For outside ISM determinations, divide the taxes paid by the number of months in the billing period to determine the converted monthly CMV of the third party payment (e.g., $1200 divided by 12 months = $100 converted monthly CMV).

Next, determine the tax period covered by the tax payment (e.g., the tax bill covers the period January 1995 through December 1995).

Then, follow the instructions in SI 00835.360 to determine whether or not the payment of taxes is a gift, and to determine for which months to charge the ISM.

EXAMPLE: Mrs. Jenkins, an SSI recipient, lives with her sister in a home Mrs. Jenkins owns. In July 1995, Mrs. Jenkins reports that her brother, who has no ownership interest, paid the property taxes in March 1995. The tax period was June 1994 through May 1995, and the taxes amounted to $1200. The payment of the taxes by her brother is considered a “gift” because he did not have ownership interest in the property.

The first step is to convert the $1200 payment to a monthly amount. The CR divides $1200 by 12 (the months in the billing period) which results in a converted monthly CMV of $100.

Because the brother's payment was a gift, the ISM is first charged in March when the bill was paid (See SI 00835.360 for when to charge ISM from third party vendor payments). The CR determines that Mrs. Jenkins was extended credit for the 9 elapsed months of the billing period (June 1994-February 1995). No ISM is charged for June 1994 through February 1995. The CMV of the ISM to be charged in March is $500 (i.e., 9 months X $100 plus $100 for March, divided by 2 because she has one roommate). The ISM is capped at the PMV for March. The household's ISM for April and May 1995 is $100 per month (i.e., since it is not received on credit the general rule in
SI 00835.360 applies and it is charged in the month Mrs. Jenkins has use of the item). Mrs. Jenkins' ISM for April and May is $50 per month ($100 divided between her and her roommate).

3. Rent and Mortgage

Convert mortgage and rental payments that are not monthly to monthly amounts.

• Divide a quarterly rental or mortgage payment by 3 to determine the monthly amount.

• Multiply a weekly rental amount by 13 and divide the result by 3 to determine the monthly amount.

• Divide a biweekly rental amount by 2 and continue as for weekly amounts.

• Multiply a daily rental amount by 7 and continue as for weekly amounts.

EXAMPLE: Converting a Weekly Rent to a Monthly Rent

Mr. Bishop, an eligible individual, lives in a rooming house with a weekly rent of $25. Mr. Bishop's brother pays the rent so the CR must determine the converted monthly CMV of the rent payment. The CR multiplies $25 by 13 and divides by 3 and determines that the monthly charge for rent is $108.33.

4. Electricity, Gas, Garbage Removal, Water, and Sewer

Convert vendor charges to monthly amounts to determine the CMV or the household operating expense.

• Divide the vendor charge by the number of months in the billing period.

• If the billing is more frequent than monthly, use the procedure in 3. above.

NOTE: For determinations of outside ISM, if the bills are always for past services, the exception to the general rule on charging ISM may apply. See SI 00835.360B.2. for exception when a third party vendor payment (TPVP) is a gift. In such a case, the ISM would be chargeable only in the months that the gift TPVP is made.

5. Heating Fuel

For heating fuels which are not billed monthly (e.g., oil, wood), determine the CMV or the monthly household operating expense by dividing the vendor charge by 12.

Conclude that heating fuel paid for by a third party outside the household will be first available to be used in the month the third party vendor payment is made and continues to be available in each of the following 11 months.

6. Food

Determine the CMV or household operating expense for food by establishing the monthly vendor charge.

Convert weekly grocery estimates to monthly amounts by using the procedure in 3. above. (See SI 00835.360 for when to charge ISM from third party vendor payments for food.)

C. References

• ISM and third party vendor payments, SI 00835.360

• Determining household costs, SI 00835.465