Major SSI Policy Change: Rental Subsidies No Longer Reduce Benefits
If you or a loved one receives Supplemental Security Income (SSI), a recent policy change from the Social Security Administration (SSA) could significantly impact your monthly benefits. As of September 30, 2024, rental subsidies will no longer count as income when calculating SSI eligibility and payment amounts. This is a substantial shift that could provide a much-needed financial boost for SSI recipients nationwide.
What does this mean for SSI beneficiaries? Let's break it down:
Currently, if an SSI recipient receives free or reduced rent, such as living with a family member rent-free, the SSA considers this "in-kind support and maintenance" (ISM). The value of this ISM is counted as income, which reduces the individual's SSI payment. For example, if an SSI recipient receives $300 worth of ISM in the form of free rent, their monthly SSI payment would be reduced by $300.
Under the new rule, effective September 30, 2024, rental subsidies will no longer be counted as ISM. This means that SSI recipients who receive free or reduced rent will be able to keep their full SSI payment without any reduction. In the example above, the individual would receive their full SSI payment (e.g., $914 in 2023), even while benefiting from the $300 rental subsidy.
This policy change is a significant win for SSI beneficiaries. It allows individuals to maintain stable housing situations with support from family or other sources without jeopardizing their SSI benefits. The extra money in their monthly SSI checks can make a real difference in covering essential expenses like food, healthcare, and utilities.
Moreover, this change may allow more individuals to qualify for SSI in the first place. By excluding rental subsidies from income calculations, some people who were previously over the income limit may now be eligible for SSI benefits.
If you or someone you know receives SSI and benefits from a rental subsidy, it's important to understand how this policy change may impact your situation. As always, our team at Hogan Smith is here to help navigate the complexities of SSI and ensure you receive the maximum benefits you deserve. Contact us today to discuss your case and learn more about how this new rule may apply to you.
