The new rule changes paragraph (b) of the existing regulation on Inkind Support and Maintenance, 20 CFR 416.1130 to read as in new paragraph (b).
The old rule of paragraph (b) provided:
(b) How we define in-kind support and maintenance. In-kind support and maintenance means any food or shelter that is given to you or that you receive because someone else pays for it. Shelter includes room, rent, mortgage payments, real property taxes, heating fuel, gas, electricity, water, sewerage, and garbage collection services. You are not receiving in-kind support and maintenance in the form of room or rent if you are paying the amount charged under a business arrangement. A business arrangement exists when the amount of monthly rent required to be paid equals the current market rental value (see § 416.1101). Exception: In the States in the Seventh Circuit (Illinois, Indiana, and Wisconsin), a business arrangement exists when the amount of monthly rent required to be paid equals or exceeds the presumed maximum value described in § 416.1140(a)(1). In those States, if the required amount of rent is less than the presumed maximum value, we will impute as in-kind support and maintenance, the difference between the required amount of rent and either the presumed maximum value or the current market value, whichever is less. In addition, cash payments to uniformed service members as allowances for on-base housing or privatized military housing are in-kind support and maintenance.
That has been published to be changed to the new paragraph (b) (1) below on September 30, 2024.
PART 416—SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND DISABLED
Subpart K—Income ■
1. The authority citation for subpart K of part 416 is revised to read as follows: Authority: 42 U.S.C. 902(a)(5), 1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, 1383, and 1383b; sec. 211, Pub. L. 93–66, 87 Stat. 154 (42 U.S.C. 1382 note). ■
2. In §416.1130, revise paragraph (b)(1) to read as follows:
20 CFR §416.1130 Introduction. * * * * *
(b) * * *
(1) We calculate in-kind support and maintenance considering any shelter that is given to you or that you receive because someone else pays for it. Shelter includes room, rent, mortgage payments, real property taxes, heating fuel, gas, electricity, water, sewerage, and garbage collection services. You are not receiving in-kind support and maintenance in the form of room or rent if you are paying the amount charged under a business arrangement. A business arrangement exists when the amount of monthly required rent to be paid equals or exceeds the presumed maximum value described in §416.1140(a)(1). If the required amount of rent is less than the presumed maximum value, we will impute as in-kind support and maintenance the difference between the required amount of rent and either the presumed maximum value or the current market rental value (see §416.1101), whichever is less. In addition, cash payments to uniformed service members as allowances for on-base housing or privatized military housing are in-kind support and maintenance.
* * * * * [FR Doc. 2024–07675 Filed 4–10–24; 8:45 am]
Example:
Mom has rental home that she normally leases to strangers for $1,500 per month. She leases instead to her disabled son and his wife and kids for $350 (a few dollars more than this year’s PMV amount).
Before the rule change, SSA would calculate the difference between the Fair Market Value of $1,500 and the rental agreement of $350 as a “rental subsidy” and say that the disabled person is receiving $1,150 as “countable income” making the disabled person not eligible for SSI benefits. SSA lost case-after-case when they were challenged in court.
The Seventh and Second Circuit Court of Appeals decisions are now accepted by the new published regulation, as official SSA policy nationwide beginning 9/30/24.
As of that date if the disabled person in the example has a lease for the amount of the “presumed maximum value” rule [calculated as 1/3 of the Federal Benefit Rate +$20], or greater, there can be no reduction in the maximum SSI check and SSA has to pay the full $943 per month SSI check unreduced by the PMV because the disabled claimant has enough from his SSI check to fully pay his own shelter expenses.