TN 69 (08-11)

A. Policy for sharing and the value of the one-third reduction VTR

A sharing arrangement exists when an individual's contribution equals or exceeds his or her pro rata share of the household operating expenses, provided the household expenses include both food and shelter.

An individual is not subject to the value of the one-third reduction (VTR) when sharing exists. This is because the individual is paying the pro rata share for the food and shelter he or she receives from the household.

B. Policy when sharing applies

Consider sharing only when you have ruled out each living arrangement basis that is higher on the list of sequential development per SI 00835.001.

Consider sharing when all of the following circumstances apply:

• The individual lives in a household with at least one person other than a spouse, child, as defined in SI 00501.010, or person whose income is deemable to the individual;

• The individual (or living-with spouse or deemor) does not have ownership interest or rental liability. (For home ownership, see SI 00835.110 or for rental liability, see SI 00835.120);

• A public assistance household does not exist, see SI 00835.130;

• The individual (or both members of an eligible couple) does not separately consume his food, see SI 00835.140;

• The individual (or both members of an eligible couple) does not separately purchase his food, see SI 00835.150; and

• The individual contributes toward the household operating expenses and these expenses include food and one or more shelter items.

C. Procedure for computing sharing

1. Performing the sharing computation

To perform the sharing computation:

1. Determine the average household operating expenses, see SI 00835.465 and SI 00835.475;

2. Determine the household composition, see SI 00835.485;

3. Determine the pro rata share by totaling the household operating expenses and dividing by the number of household members. Assume that all members of the household share in the food unless you obtain information to the contrary;

4. Determine the individual’s pro rata share if a member of the household does not share in the food:

   • separately determine the pro rata share for the food without that member;

   • determine the pro rata share for shelter; then

   • add these pro rata shares together to determine the individual's pro rata share;

5. Determine the eligible individual's average monthly contribution, see SI 00835.480 and SI 00835.210; and

6. Compare the contribution to the pro rata share. If the contribution equals or exceeds the pro rata share, a sharing arrangement exists and the individual is in Federal Living Arrangement A (FLA/A).

2. Five-dollar tolerance rule

If the eligible individual's contribution is within $5 of the pro rata share, consider the contribution and the pro rata share equal. Determine that sharing exists and the individual is in FLA/A. (e.g., sharing exists if the pro rata share is $150.00 and the contribution is $145.00 or more.)

NOTE: To determine sharing, a couple’s contribution must be within $5 of their combined pro rata share in order for sharing to apply.

D. Procedure for curtailed development of sharing

The individual's allegations in MSSICS are sufficient documentation that the VTR applies when the file reflects one of the following situations during an initial claim, post-eligibility event, or redetermination situation:

1. Documenting a zero contribution in MSSICS

If the individual alleges making no cash payment toward the household operating expenses, curtail development of sharing. For actions processed in MSSICS:

1. Record the individual’s allegations on the “Household of Another” page.

   NOTE: The individual’s answers on the Household of Another page are sufficient documentation of a zero contribution. For guidance on completing the Household of Another page, see MS INTRANETSSI010.014;

2. Assume that the household operating expenses include both food and shelter; and

3. Determine that the VTR applies and no further development is needed.

2. Documenting a token contribution in MSSICS

If the individual alleges his or her contribution does not equal the pro rata share:

1. Document the individual’s allegations on the Household of Another page.

   NOTE: The individual’s answers on the Household of Another page are sufficient documentation of a token contribution;

2. Ask if the individual is earmarking the contribution.

   NOTE: If the individual is earmarking, to develop see SI 00835.170, “Earmarked Sharing”;

3. If the individual alleges that the contribution is not earmarked, update the Household of Another page accordingly.

   NOTE: The individual’s answers on the Household of Another page are sufficient documentation that the contribution is not earmarked;

4. Assume that the household operating expenses include both food and shelter; and

5. If you determine that the VTR applies, you do not need to develop further.

3. Documenting a zero or token contribution on a non-MSSICS case

For actions processed outside of MSSICS, use form SSA-8006-F4 (Statement of Living Arrangements, In-Kind Support and Maintenance) or the SSA-795, (Statement of Claimant or Other Person), to document an allegation of a zero or token contribution and an allegation that the individual is or is not earmarking a contribution. Document the issue by faxing the paper form into the appropriate electronic folder and dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

NOTE: The SSA-8006-F4, if used, has questions that document earmarking. A signature is no longer required on an SSA-8006-F4 when the Claims Representative completes the interview via the telephone. The SSA-8006-F4 is not a self-help document. Therefore, completion of the form will always involve a face-to-face or telephone interview between the adjudicator and individual or representative payee.

E. Procedure for documenting household expenses and contributions when full sharing development is needed

1. Document individual’s allegations

If you cannot curtail sharing development per SI 00835.160D in this section, document the individual’s allegations about household operating expenses and his or her contribution on the Household of Another page in MSSICS.

2. Verification of the household operating expenses and contributions

Verification consists of:

• Verifying the household operating expense and contribution alleged by the eligible individual on the Household of Another page in MSSICS with the householder or knowledgeable adult member other than the eligible individual’s spouse. Document his or her verification statement on a report of contact (DROC) screen; or

• If the householder or knowledgeable adult member is not reachable for an interview via the telephone or face-to-face, obtain a signed statement on an SSA-8011-F3 (Statement of Household Expenses and Contributions) regarding each household operating expense and the eligible individual’s contribution. Document the issue by faxing the paper form into the appropriate electronic folder and dispose of the paper form. For additional instructions for the SSA-8011-F3, see SI 00835.625B.

3. Documenting expenses and contributions for non-MSSICS cases when full development is needed

For actions processed outside of MSSICS, use the:

• SSA-8006-F4 to record the individual’s allegations, and

• SSA-8011-F3 for the verification by the householder.

Document both by faxing the paper forms into the appropriate electronic folder and then, dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

F. Procedure for documenting household expenses and contributions using the $20 rule

1. When verification is required under the $20 rule

Obtain verification of household operating expenses and contributions from the householder if the eligible individual’s alleged contribution is within $20 of the pro rata share.

Do not obtain verification of the household operating expenses and contributions if the difference between the alleged contribution and the pro rata share is $20 or more.

2. Alleged pro rata share exceeds the alleged contribution by $20 or more

When the alleged pro rata share exceeds the contribution by $20 or more:

• Determine that sharing does not exist;

• Verification from a knowledgeable adult household member is not needed;

• Ask if the individual is earmarking the contribution. If the individual is earmarking, see SI 00835.170, “Earmarked Sharing” to develop; and

• If the individual alleges no earmarking, complete the Household of Another page accordingly and determine that the VTR (FLA/B) applies. The individual’s answers on the Household of Another page are sufficient documentation for establishing that earmarking does not apply.

NOTE: For actions processed outside of MSSICS on paper forms, for example, on an SSA-8006-F3, use the DROC screen to document that the individual is not earmarking. Document the issue by faxing the paper form into the appropriate electronic folder and dispose of the paper form. For more information on storing forms electronically, refer to GN 00301.322.

3. Alleged contribution exceeds the alleged pro rata share by $20 or more

When the alleged contribution exceeds the pro rata share by $20 or more:

• Determine that sharing exists;

• Verification from a knowledgeable household member is not needed; and

• Cease development unless the individual alleges a prepaid contribution. If there is an allegation of a prepaid contribution, see instructions on computing the monthly contribution amount in SI 00835.480.

4. Alleged contribution is within $20 of the pro rata share

When the alleged contribution is within $20 of the pro rata share:

• Verification of the household expenses and contributions is needed following the instructions in SI 00835.160E, in this section;

• Determine that a sharing arrangement (FLA/A) exists if the individual's contribution is within $5 of the pro rata share;

• Determine that the VTR (FLA/B) exist if the pro rata share exceeds the contribution by more than $5 unless the individual alleges earmarking the contribution;

• If the individual alleges earmarking, see SI 00835.170 to develop;

• If the individual alleges no earmarking, document the allegation on the Household of Another page. The individual’s answers are sufficient documentation that the contribution is not earmarked; and

• When the alleged contribution is within $20 of the pro rata share, determine that the VTR applies if verification of household operating expenses and contributions cannot be obtained from the householder or a knowledgeable member of the household.

G. Examples of sharing determinations

EXAMPLE 1: Pro rata share exceeds the contribution by $20 or more

Mr. Gascon, an eligible individual, lives in an apartment with Mr. Simon and Mr. Biffel. The lease is in Mr. Simon's name.

Mr. Gascon alleges the household operating expenses are $450 per month and he contributes $100 per month. He also alleges he does not earmark his contribution.

NOTE: Document the claimant’s allegation on the Household of Another page in MSSICS.

The alleged pro rata share is $150. Because the alleged pro rata share exceeds his alleged contribution by at least $20, the adjudicator determines that Mr. Gascon is receiving ISM valued at the VTR (FLA/B applies). No verification from the householder or knowledgeable household member is required.

EXAMPLE 2: Contribution exceeds the pro rata share by $20

Similar to Example1, except that Mr. Gascon alleges contributing $175 per month. Because his alleged contribution exceeds the pro rata share by at least $20, we determined Mr. Gascon to be in a sharing arrangement (FLA/A applies). No verification from the householder or knowledgeable household member is required.

EXAMPLE 3: Contribution is within $20 of the pro rata share

Similar to the above examples, except Mr. Gascon alleges contributing $140 per month. Because this alleged contribution is within $20 of the pro rata share, the file must contain verification of the household operating expenses and Mr. Gascon's contribution.

Obtain a signed statement (SSA-8011-F3) or report of contact (DROC) entry on MSSICS from Mr. Biffel (householder or a knowledgeable adult householder member other than the eligible individual’s spouse). Mr. Biffel states that Mr. Gascon contributes $140 per month and that the household operating expenses total $435 per month.

Using these verified amounts, the CR determines the pro rata share is $145. Because Mr. Gascon's contribution of $140 per month is within $5 of the pro rata share, a sharing arrangement is found to exist (FLA/A with no ISM applies).

EXAMPLE 4: Eligible child sharing determination

Samantha, an eligible child, lives with her mother, her younger sister, and her grandmother in a home owned by the grandmother. The CR determines that Samantha's mother does not have rental liability and that public assistance household, separate purchase, separate consumption, and earmarking do not apply.

Although Samantha lives with her mother and sister, the CR must develop sharing because they live in the household of another (the grandmother's home).

Samantha's mother does not contribute any of her own money toward the household operating expenses. Samantha's mother alleges that $150 per month from Samantha’s SSI goes toward total household operating expenses of $1200 per month. Samantha's contribution does not meet her $300 pro rata share, so the CR determines that the VTR applies.

Because Samantha's contribution is not within $20 of the pro rata share, verification from a householder or knowledgeable household member is not required.

NOTE: Although Samantha lives in her grandmother's home, we still consider her to be living with her mother for deeming purposes.

EXAMPLE 5: Eligible child sharing determination

Same situation as in Example 4, except that Samantha's mother now also contributes $600 of her own funds toward the household expenses. Following the procedure in SI 00835.210, “The One-Third Reduction Provision and Deeming,” the CR allocates the mother's contribution as follows:

• allocates $300 to cover the mother's own pro rata share;

• divides the excess $300 equally between Samantha and her sister, and the resulting $150 is considered a contribution by Samantha;

• adds this amount to the $150 that Samantha contributes from her SSI check, resulting in a total contribution by Samantha of $300 per month; and

• determines that sharing exists (FLA/C) and the VTR does not apply once he or she obtains verification of the $300 pro rata share and $300 contribution.

Because Samantha's alleged total contribution is within $20 of the pro rata share, verification by a householder or knowledgeable household member other than the eligible individual’s spouse is required.

The CR documents the contact with the grandmother on a DROC screen; if the grandmother is not available by phone or in person, the CR mails an SSA-8011-F3 to obtain verification of sharing over the grandmother’s signature.

H. References

• SI 00835.210, The One-Third Reduction Provision and Deeming

• SI 00835.340, Computation of In-Kind Support and Maintenance from Within a Household

• SI 00835.465, ISM and Households - Household Costs

• SI 00835.480, Contributions Toward Household Operating Expenses

• SI 00835.600, SSA-8006-F4 – Statement of Living Arrangement, In-Kind Support and Maintenance

• SI 00835.625, SSA-8011-F3 – Statement of Household Expenses and Contributions