SSR 77-21: Rescinded 1977

20 CFR 416.1125

SSR 77-21

Where the claimant for Supplemental Security Income (SSI) benefits is

living in the home of his brother-in-law but purchases and prepares his

own food, held , since the claimant is not receiving both support and maintenance from his brother-in-law, his SSI benefits should

not be reduced by one-third in accordance with section 416.1125(b) of

Regulations No. 16 of the Social Security Administration.

The general issue is the nature of the claimant's living arrangements.

The specific issue is the effect the claimant's living arrangements have

upon the amount of supplemental security income payments to the claimant

if he resides in the household of another.

The claimant has been residing with his brother-in-law since 1964. He has

been paying various amounts on a weekly and sometimes monthly basis for

his room. There have been different arrangements between the two men

concerning the cost of food each consumes. The claimant now purchases food

for his own consumption and his brother-in-law buys his own food. The

claimant prepares separate meals for his brother-in-law and himself.

Section 416.1125(a)(b), and (c) of Regulations No. 16 provides the

following concerning unearned income and the receipt of support and

maintenance.

(a) General. Unearned income includes support and maintenance furnished in

cash or in kind. Support and maintenance in kind may generally be defined

as room and board, and would also include other incidentals, such as

clothing, necessary to an individual's normal sustenance. Unless otherwise

specified herein, the value of in-kind support and maintenance refers to

its current market value.

a) General. Unearned income includes support and maintenance furnished in

cash or in kind. Support and maintenance in kind may generally be defined

as room and board, and would also include other incidentals, such as

clothing, necessary to an individual's normal sustenance. Unless otherwise

specified herein, the value of in-kind support and maintenance refers to

its current market value.

(b) One-third reduction for living in another person's household.

(1) In the case of an eligible individual (or eligible individual and

eligible spouse) who lives in another person's household and receives

support and maintenance in kind from such person, the payment standard for

such eligible individual (or eligible individual and eligible spouse) will

be reduced by one-third in lieu of including the value of such support and

maintenance as unearned income to the eligible individual (or eligible

individual and eligible spouse). The one-third reduction in the payment

standard will apply only for months wholly spent in the household of

another person. Thus, the reduction is made beginning with the first full

calendar month in which an eligible individual (or eligible individual and

eligible spouse) is making any payment for support and maintenance (room

and board) to the person in whose household he is living.

(2) When the one-third reduction applies, any additional support or

maintenance or both support and maintenance, reviewed in kind from a

source other than the person in whose household the eligible individual

(or eligible individual and eligible spouse) lives is not counted as

income.

(3) For purposes of this section, "another person's" household refers to

the household of a private individual. It does not include a commercial

establishment (e.g., rooming or boarding house) or an institution.

nce, reviewed in kind from a

source other than the person in whose household the eligible individual

(or eligible individual and eligible spouse) lives is not counted as

income.

(3) For purposes of this section, "another person's" household refers to

the household of a private individual. It does not include a commercial

establishment (e.g., rooming or boarding house) or an institution.

(c) Household situations not included under paragraph (b) of this section.

The reduction in the payment standard for living in the household of

another and described in paragraph (b)(1) of this section will not apply

in the following situations and support and maintenance provided in kind

will be valued as provided herein and in paragraphs (d) and (e) of this

section:

(1) In the case of an eligible individual (or eligible individual and

eligible spouse) who lives in another person's household and receives only

support or maintenance (i.e., only room or only board) from the

householder.

* * * * * *

(d) Valuation of support and maintenance for individuals in household

situations. When an eligible individual (or eligible spouse) lives in a

household (i.e., is not in an institution) and the reduction in the

payment standard described in paragraph (b) of this section is

inapplicable and the provisions of §§416.1185 and 416.1190 do not apply,

any support or maintenance, or both support and maintenance, received in

kind is unearned income. In such cases, the maximum value of such support

and maintenance is presumed to be that amount which will reduce the

applicable payment standard by one-third; i.e., the value is presumed to

be one-third of the payment standard, plus the exclusion applicable to

unearned income. This presumption will be applied in determining the

benefits payable unless it is rebutted by the individual's establishing

that the current market value of such support and maintenance, less any

payment he makes therefore, is lower than the presumed value

by one-third; i.e., the value is presumed to

be one-third of the payment standard, plus the exclusion applicable to

unearned income. This presumption will be applied in determining the

benefits payable unless it is rebutted by the individual's establishing

that the current market value of such support and maintenance, less any

payment he makes therefore, is lower than the presumed value. This rule

will apply in the following circumstances:

(1) When an eligible individual (or eligible individual and eligible

spouse) lives in the household of another and reviews only support or

maintenance from the householder. These provisions do not apply, however,

when the provisions of paragraph (c)(2) of this section apply.

* * * * * *

The above cited regulations provide in pertinent part that the claimant's

payment standard will be reduced if he is receiving both support and

maintenance (room and board). In the event he receives only support

or only maintenance, no reduction is applicable except that the value of

support or maintenance will be charged as unearned income to the

claimant.

Based on the statement of the claimant and his brother-in-law contained in

the record and the evidence that the claimant purchases and prepares his

own food, it is concluded that the claimant is not receiving support and

maintenance and his standard payment amount should not be reduced by

one-third.