TITLE 8 SOCIAL
SERVICES
CHAPTER 150 LOW
INCOME HOME ENERGY ASSISTANCE PROGRAM
PART 520 INCOME
8.150.520.1 ISSUING AGENCY: New Mexico Human Services Department.
[7-1-95, 11-1-95; 8.150.520.1
NMAC - Rn, 8 NMAC 22.LHP.000.1, 10-1-01]
8.150.520.2 SCOPE: The rule applies to the general public.
[7-1-95, 11-1-95;
8.150.520.2 NMAC - Rn, 8 NMAC 22.LHP.000.2, 10-1-01]
8.150.520.3 STATUTORY
AUTHORITY: 27 NMSA 1978 (1992 Repl.) provides for the
department to “...adopt, amend and repeal bylaws, rules and regulations...”. It
also provides for administration of public assistance programs.
[7-1-95, 11-1-95; 8.150.520.3 NMAC - Rn, 8 NMAC
22.LHP.000.3, 10-1-01]
8.150.520.4 DURATION:
Permanent.
[7-1-95, 11-1-95;
8.150.520.4 NMAC - Rn, 8 NMAC 22.LHP.000.4, 10-1-01]
8.150.520.5 EFFECTIVE
DATE: November 15, 1996, unless a different date is
at the end of a section or paragraph.
[7-1-95, 11-1-95;
1-15-96, 8.150.520.5 NMAC - Rn, 8
NMAC 22.LHP.000.5, 10-1-01]
8.150.520.6 OBJECTIVE: The
objective of these regulations is to provide policy and procedures for the
administration of the low income home energy assistance program.
[7-1-95, 11-1-95;
8.150.520.6 NMAC - Rn, 8 NMAC 22.LHP.000.6, 10-1-01]
8.150.520.7 DEFINITIONS: [RESERVED]
8.150.520.8 EARNED
GROSS INCOME:
A. Definitions: Earned gross income is defined as income
received in the form of wages paid on a predetermined regular basis, pay
received irregularly for work performed irregularly, or income resulting from
self-employment activities. Income from rental property, if 20 hours or more
per week are spent working as a landlord, is also countable as earned income.
B. Exclusions: The
following are not counted as gross income:
(1) in-kind benefits: (i.e. good or services realized, provided or
exchanged for non-monetary compensation);
(2) vendor payments: (i.e. payments made on behalf of a household
to a third party);
(3) lump sum payments: see food stamp regulations on lump sum
payments in 8.139.520.9 NMAC;
(4) loans;
(5) charitable contributions from
nonprofit agencies to meet household expenses;
(6) earned income tax credits;
(7) value of food stamps;
(8) TANF annual clothing allowance;
(9) monies received for the care of a
third party beneficiary who is not a household member; and
(10) monies excluded by federal statute, a
listing of which can be found in food stamp policy citation 8.139 NMAC.
[7-1-95, 11-1-95,
11-15-96, 10-15-98, 10-1-99, 10-1-00; 8.150.520.8 NMAC - Rn, 8 NMAC
22.LHP.520.2, 10-1-01; A, 10-1-06; A, 10-1-12]
8.150.520.9 SELF EMPLOYMENT GROSS INCOME:
A. Definition: Ongoing self-employment income intended to
support the household through the year, that is averaged over a 12 month
period, even if the household earns the money in a concentrated period.
Self-employment income intended to support the household only for a portion of
the year must be averaged over the months it is intended to provide support.
B. Verification sources:
Monthly business records detailing profits and expenses or the
household’s federal income tax return are needed to annualize the household’s
self-employment income.
C. Gross income calculation: For self-employment income, the
net income of the business activity is considered the gross income of the
household member. The net income of the business is derived by subtracting the
allowable costs of doing business from the business’s gross income.
D. Business expenses:
(1) Allowable costs are, generally, those
required to produce the business’s gross income. These include, but are not
limited, to: raw materials, stock, labor, insurance premiums, interest paid on
income producing property, taxes paid on income-producing property,
transportation for business purposes.
(2) Costs specifically not allowed are
payments on the principal of the purchase price of income-producing property,
assets, equipment, or machinery, net losses from previous periods, personal
income taxes, money set aside for personal expenses, transportation to and from
work, charitable contributions, entertainment, and depreciation.
E. Annualizing income:
From gross self-employment income, subtract allowable expenses to derive
the net self-employment income. Divide the net self-employment income by 12 to
produce a monthly (average) figure. This
figure is the countable monthly gross income. To determine the household’s
total gross, this figure must be added to any other income the household
receives.
[7-1-95, 11-1-95,
11-15-96; 8.150.520.9 NMAC - Rn, 8 NMAC 22.LHP.520.3, 10-1-01; A, 10-1-12]
8.150.520.10 GROSS
INCOME OF INELIGIBLE ALIENS: The gross income received by any ineligible
alien household member must be prorated and counted to establish the benefit
amount.
A. Definition: If any
member of the household providing income to the household is an ineligible
alien for TANF purposes, that member’s income is not counted in its entirety
but is prorated. Prorating results in excluding a portion of the ineligible
alien household member’s income from consideration because the ineligible alien
is not a recipient of public assistance benefits.
B. Proration calculation:
Calculate the gross income of the ineligible alien and divide the total
by the number of members, eligible and ineligible, in the household. The
resulting figure is the pro-rata portion of the income for each member,
eligible and ineligible. To determine the portion of the income to be counted,
multiply the pro rata portion by the remaining number of eligible household
members.
[7-1-95, 11-1-95,
11-15-96; 8.150.520.10 NMAC - Rn, 8 NMAC 22.LHP.520.4, 10-1-01; A, 10-1-06; A,
10-1-12]
8.150.520.11 GROSS
INCOME OF MIGRANT HOUSEHOLDS:
A. Definition: A
migrant household is a group that travels away from home on a regular basis
with a group of laborers to seek employment in an agriculturally related
activity.
B. Verification sources:
The household’s federal income tax return is needed to annualize the
household’s income.
C. Calculation: The
household’s annual income reported on their federal income tax return should be
divided by 12 to determine the household’s average monthly income.
[10-15-98;
8.150.520.11 NMAC - Rn, 8 NMAC 22.LHP.520.5, 10-1-01; A, 10-1-12]
8.150.520.12 GROSS
INCOME DETERMINATION: Gross income of the household member is
defined as all income received prior to deductions, including taxes,
garnishments, whether voluntary or involuntary and net business income.
A. Income sources: Gross income includes income from both earned
and unearned sources.
B. Countable income: The gross unearned income of all household
members is counted in its entirety, and the gross earned income of all
household members over the age of 18 is counted in its entirety, unless:
(1) the income is specifically exempted;
or
(2) the income is self-employment, in
which case the income is annualized (see
LIHEAP 8.150.520.9 NMAC); or
(3) the income is that of an ineligible
alien, in which case the income is prorated
(see LIHEAP policy 8.150.520.10 NMAC);
(4) the income is a full month's income
and is anticipated to be received on a weekly or biweekly basis; in these
circumstances, the income shall be converted to a monthly amount as follows:
(a) income
received on a weekly basis is averaged and multiplied by 4.0;
(b) income
received on a biweekly basis is averaged and multiplied by 2.0;
(c) averaged
income shall be rounded to the nearest whole dollar prior to application of the
conversion factor; amounts resulting in $.50 or more are rounded up; amounts
resulting in $.49 or lower are rounded down.
C. Gross income
receipt period: HSD shall establish
income by utilizing the gross income of the household for the 30 day period
immediately preceding the date on which LIHEAP eligibility is determined by ISD.
D. Current income
verified in other public assistance programs: Current income that has been verified by ISD
in another active public assistance programs may be used to verify income for
the LIHEAP application, unless deemed questionable.
[8.150.520.12 NMAC
- Rn, 8.150.500.10 NMAC & A, 10-1-12]
8.150.520.13 UNEARNED
INCOME:
A. Definition: Unearned income is income received in the
form of entitlement, disability, retirement, unemployment benefits or payments,
including but not limited to the following:
(1) child support;
(2) alimony;
(3) temporary assistance to needy
families (TANF) benefits;
(4) general assistance (GA) payments;
(5) royalties;
(6) dividends and interest; or
(7) tribal benefits.
B. Gross unearned income:
The gross amount of the benefit or payment must be counted. In the case
of OASDI benefits, the gross amount of the benefit includes the amount deducted
for the medicare premium, if applicable.
C. Real estate contracts:
Monthly payments resulting from the sale of property and contributions
from family or friends are also countable unearned income.
D. Exclusions: The
following are not counted as income:
(1) in-kind benefits (i.e. goods or
services realized, provided or exchanged for non-monetary compensation);
(2) vendor payments (i.e. payments made
on behalf of a household to a third party);
(3) lump sum payments: as defined in food stamp regulations at
8.139.520.9 NMAC;
(4) loans;
(5) charitable contributions from
nonprofit agencies to meet household expenses;
(6) earned income tax credits;
(7) value of food stamps;
(8) TANF annual clothing allowance;
(9) monies received for the care of a
third party beneficiary who is not a household member; and
(10) monies excluded by federal statute, as
listed at 8.139.527 NMAC.
[8.150.520.13 NMAC
- Rn, 8.150.522.8 NMAC & A, 10-1-12]
8.150.520.14 TOTAL
GROSS INCOME: The household's total gross income is
determined by adding countable earned and unearned income. Income received from
self-employment and by ineligible aliens is not counted in full. The income of
migrant households may be annualized and averaged. The household's total gross income must be
equal to or less than income standards published annually in the LIHEAP state
plan.
[8.150.520.14 NMAC
- Rn, 8.150.524.8 NMAC & A, 10-1-12]
8.150.520.15 INCOME STANDARD: Income guidelines for eligibility will be updated at the
beginning of each federal fiscal year as required by federal statute. The guidelines
will be effective for the entire federal fiscal year beginning October 1 and
ending September 30. The income guidelines will be determined by the secretary
of the human services department before the beginning of the new federal fiscal
year and published annually in the LIHEAP state plan.
[8.150.520.15
NMAC - Rn, 8.150.524.9 NMAC & A, 10-1-12]
8.150.520.16 CRISIS
INTERVENTION STANDARDS: Households who are over the income standards
but meet the crisis intervention requirements may be eligible for a crisis
LIHEAP benefit. If a household is over
the income standards, HSD staff should explore the household's financial
circumstances and take into account any financial crisis in the
household that may have resulted in the household's inability to meet its
utility or fuel expenses in the past 30 days. In these cases, the household's
net income, rather than gross income, may be considered to determine income
eligibility for LIHEAP benefits.
[8.150.520.16 NMAC
- Rn, 8.150.500.9 NMAC & A, 10-1-12; A, 10-1-15]
8.150.520.17 NET
INCOME:
A. Definition: Net
income, except for net business income, for the purposes of LIHEAP policy, is
not gross income minus deductions. Rather, it is gross income minus household
emergency expenses incurred and paid in 30 days prior to the application date
or the initial payment, during that period, of a bill resulting from a recent
household emergency.
B. Calculation: To
determine the net income for a household, subtract any allowable household
emergency expenses from the household's gross income.
C. No emergency expenses:
If the household did not incur and pay household emergency expenses or
an initial payment for a recent household emergency in the 30 days prior to the
application date for LIHEAP benefits, gross income is to be used to make the
determination of eligibility.
[8.150.520.17 NMAC
- Rn, 8.150.526.9 NMAC & A, 10-1-12]
8.150.520.18 HOUSEHOLD
EMERGENCY EXPENSES:
A. Definition:
Household emergency expenses are defined as expenses incurred and paid
in full or in part by the household in the 30 days prior to the application
date.
B. Examples of emergency expenses include:
(1) hospital, ambulance, doctor and
dental bills;
(2) laboratory and other testing bills;
(3) prescriptions and non-prescription
items ordered by a licensed health care professional; and
(4) services provided or ordered by a
licensed health care professional; or
(5) non-elective medical expenses;
(6) emergency medical expenses, such as:
(7) hospital bills; and
(8) ambulance bills;
(9) expenses resulting from the death of
a household member or other major household crisis; or
(10) repair or replacement of the
household's primary vehicle.
C. Licensure exemption:
Native American practitioners (medicine men), though not licensed by the
state, are specifically recognized by HSD as health care providers under this
policy.
[8.150.520.18 NMAC
- Rn, 8.150.526.10 NMAC & A, 10-1-12]
8.150.520.19 VERIFICATION: To be considered, the household must provide
proof of the incurred expense(s) and proof of payment.
[8.102.520.19 NMAC
- Rn, 8.150.526.11 NMAC & A, 10-1-12]
HISTORY
OF 8.150.520 NMAC:
Pre-NMAC
History: The material in this part was derived from
that previously filed with the State Records Center and Archives:
ISD 600.0000, Energy Assistance Programs,
11-12-82.
ISD 600.0000, Low Income Energy Assistance
Program, 1-9-84.
ISD 710.0000, Energy Assistance Programs,
11-15-85.
ISD 620.0000, Crisis Intervention
Assistance, 11-12-82.
ISD 620.0000, Energy Crisis Intervention
Assistance, 12-27-83.
ISD 714.0000, Energy Crisis Intervention,
11-20-85.
ISD 630.0000, Program Administration,
11-12-82.
ISD 630.0000, Program Administration,
12-27-83.
ISD 715.0000, Administration of Energy
Assistance Programs, 11-20-85.
ISD FA 710, Energy Assistance Programs,
12-5-89.
ISD CAS 700, Energy Assistance Program,
11-13-91.
ISD CAS 700, Energy Assistance Program,
11-10-92.
ISD/CACB/LHP 700, Low Income Home Energy
Assistance Program, 5-6-94.
ISD/CACB/LHP 700, Low Income Home Energy
Assistance Program, 7-28-94.
History
of Repealed Material: [RESERVED]