.Purpose

Policy

Background

Release Date:

6/25/2024

Definitions

Requirements

Verification Docs

CalWORKs

44-115 Income-In-Kind

Purpose

(  ) To release a new policy

(  ) To release a new form

(  ) To convert existing policy to new writing style only – No concept changes

(X) Revision of existing policy and/or form(s)

 

What changed?

 

This year’s Cost-of-Living Adjustment (COLA) increases the Income-In-Kind (IIK) levels by 4.32 percent, effective July 1, 2024. These changes were programmed in the system on June 13, 2024. 

 

For information regarding the Minimum Basic Standard of Adequate Care (MBSAC) increases, refer to 44.212 Minimum Basic Standard of Adequate Care.

 

Note: Changes are shown highlighted in grey throughout the document.

Policy

When a family receives a basic full need item free of charge or in exchange for something, the value of the need item is considered income in the CalWORKs eligibility determination and benefit calculations. 

 

Note:  Partial IIK need items received are not considered income and are not used in the calculation of the grant. 

 

The actual value of the IIK varies with the Assistance Unit’s (AU’s) size and need item.  The values are adjusted by the same percentage increase that is applied to the MBSAC levels. 

Background

In accordance with the Welfare and Institution Code 11453, IIK levels are to be adjusted annually to reflect any increases or decreases in COLA.

Definitions

 

Term

Description

IIK

Need items received free of charge with no obligation to repay in cash. 

 

Examples of IIK are:

 

1.    Housing;

2.    Utilities;

3.    Food; and

4.    Clothing. 

 

Note: There is no IIK for CalFresh Program.

Region 1 and Region 2 Counties

There are two levels of the MBSAC, IIK, and Maximum Aid Payment (MAP) that are assigned to California counties known as Region 1 and Region 2. The Region is determined based on the lower or higher cost of living. Region 1 is for counties with a higher cost of living and the MBSAC, IIK, and MAP levels are approximately 5.2 percent higher than the Region 2 levels.

 

Region 1 includes the following counties: Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, and Ventura.

 

Region 2 includes all other counties.

 

Los Angeles County DPSS staff should be aware of the Region 1 and Region 2 levels when processing Inter-County Transfer cases from Region 2 counties. Refer to Attachment A for Region 1 and Region 2 charts.

Requirements

 

FREE BOARD AND LODGING RECEIVED DURING TEMPORARY ABSENCE FROM HOME

Situation

Guidelines

Absence one month or less

The value of free board and lodging reasonably anticipated to be received by a recipient during a temporary absence from their home of not more than one calendar month is exempt. 

Absence exceeds one month

Semi-Annual Reporting (SAR)

 

After an absence of one-month, free board and lodging, such as food, shelter, and utilities, are considered reasonably anticipated income to be received during the SAR Payment Period.

 

Annual Reporting/Child-Only (AR/CO)

 

After an absence of one-month, free board and lodging, such as food, shelter, and utilities, are considered reasonably anticipated income to be received during the AR/CO Payment Period and are considered income.

 

Please refer to Reasonably Anticipated Income CalFresh policy when entering the income on CalWORKs/CalFresh combo cases.

Free housing

Free housing is applied to the CalWORKs budget when:

 

1.    The mortgage holder refuses to accept anything but the full payment for all house payments due;

2.    The house is in foreclosure;

3.    An insurance plan or other person or company is paying the loan payments and principal, interest, insurance, and taxes are all included in the mortgage payment; or

4.    No rent is being paid and the landlord is not attempting to collect the amount owed.

Participant does not pay the mortgage, taxes, or insurance, but must pay for repairs and upkeep

Free housing is applied and the IIK value of housing is deducted from the grant. 

Participant pays only the taxes and insurance

Insurance and property taxes are considered a part of the cost of owning a house.

 

In this instance, there is no deduction of the IIK for housing.

Participant pays a reduced rent to a landlord in exchange for their services as a manager of the apartment building

There is no IIK deduction from the grant unless the rent is totally free in return for their services as a manager. 

 

Refer to 63-502 Income Definition, Exclusions and Deductions CalFresh policy for CalWORKs/CalFresh combo cases.

Participant receives free rent in exchange for managing the apartment building

The actual value of the housing is compared to the IIK amount for housing. 

 

The lesser of the two values is treated as earned income and the disregards are deducted. 

When someone other than the applicant/participant pays the house payment or a utility bill

1.    The house payment is paid (including taxes and insurance) directly to the mortgage company; the IIK amount for housing is deducted; and/or

2.    All the utilities (including phone) payments are paid directly to the utility’s companies; the IIK amount for utilities is deducted.

 

Note: If the applicant/participant pays one of the utility bills, no deduction for free utilities can be made.

When a family receives free rent from a shelter

Any IIK provided on the basis of a private non-profit organization is exempt as income. 

 

MBSAC AND IIK VALUES

Situation

Guidelines

4.32 percent increase to the MBSAC and IIK Chart 07/01/24 – 06/30/25

 

 

IIK

AU Size

MBSAC

Housing

Utilities

Food

Clothing

1

 $899

 $408

 $86

 $223

 $68

2

 $1,476

 $541

 $99

 $477

 $132

3

 $1,829

 $593

 $102

 $611

 $197

4

 $2,170

 $624

 $107

 $755

 $263

5

 $2,476

 $624

 $107

 $916

 $335

6

 $2,785

 $624

 $107

 $1,059

 $401

7

 $3,061

 $624

 $107

 $1,181

 $468

8

 $3,331

 $624

 $107

 $1,288

 $520

9

 $3,614

 $624

 $107

 $1,418

 $598

10

 $3,922

 $624

 $107

 $1,534

 $655

More than 10

Add $35 for each extra person

 

Participant does not agree with the deduction of the need item

Applicants/Participants can provide verification that the value of the need item(s) is less than the IIK value. 

 

The verification should be accepted, and the lower amount(s) used unless there is conflicting information.

AU includes an excluded person whose needs are not considered in the AU

The IIK value to the AU is the lesser of:

 

1.    

The net market value of the IIK value paid by the AU prorated for the number of persons in the AU; or

 

 

o    

The net market value is accepted, as long as the applicant/participant provides satisfactory evidence.

 

2.    

The IIK chart value for the number of persons in the AU. 

 

Example

 

The AU consists of three individuals. They share free housing with one person who is excluded from the AU due to noncitizen status.

 

The applicant/participant provides verification that the net market value of the housing is $300. The prorated amount is $225 determined as follows:

 

$300 / 4 (AU and Non-AU Members) = $75

$75 X 3 (AU Members) = $225

 

The IIK table value for an AU of three is $593. The amount is subject to change. 

 

The IIK considered in the CalWORKs grant computation is $225, the lesser of $225 and $593.

Verification Documents

Below are types of verification that could be provided to validate the IIK income payment which is lower than the IIK income table values:

 

1.    Rent receipt;

2.    Mortgage document; or

3.    Landlord statement, etc.

 

The County will evaluate the documents provided to determine if the verification is satisfactory.

Attachment I