SI 00835.005 - Sequential Development of Living Arrangement and In-Kind Support and Maintenance – Flowchart.
Most terms used in connection with rental subsidies are defined in SI 00835.020. However, the following definitions are unique to this section.
The Current Market Rental Value (CMRV) under rent control is the maximum rent chargeable to the current tenant under the applicable rent control law.
The required rent is the amount required by a landlord under the terms of the rental agreement, regardless of the source(s) of payment.
A rent prepayment is a payment that meets the definition of rent and exceeds the monthly required rent. A rental prepayment can offset the amount of a rental subsidy, wholly or in part, depending on the amount.
A child is a natural or adopted child, or a stepchild, regardless of age.
A parent is a natural or adoptive parent, or the spouse of such a parent. If the natural or adoptive parent dies, a surviving step-parent is not considered a parent or spouse of a parent.
An individual receives in-kind support and maintenance (ISM) in the form of a rental subsidy when the required rent (including a flat fee payment) is less than the amount charged under a business arrangement.
A business arrangement exists when the monthly required rent or flat fee payment equals the CMRV of the residence.
Exception in the S econd and S eventh circuits and Texas - In the States of Connecticut, New York, Vermont, Illinois, Indiana, Wisconsin, and Texas, a business arrangement exists when the required rent or flat fee payment equals or exceeds the applicable presumed maximum value (PMV). If the required rent or flat fee payment is less than the PMV, the value of a subsidy is the difference between the required rent or flat fee payment and the lesser of the PMV or the CMRV. For instructions for processing cases in Texas, please see “Rental Subsidies for Residents of Texas Effective May 1, 1996” SI DAL00835.380.
Apply this procedure to both initial claim and posteligibility situations. Follow the steps in sequence.
Ask the individual whether anyone in the household (including any member who is temporarily absent) is a parent or child of the landlord or landlord's spouse. Document the response on the Home Ownership and Rental Liability page or on an appropriate form. For guidance on completing the Home Ownership and Rental Liability page see, MS INTRANETSSI 010.012.
If the individual is unwilling or unable to answer, obtain the information from the landlord, the landlord's spouse, or their authorized agent.