The Social Security Administration (SSA) oversees many programs that help vulnerable people. The SSA administers retirement benefits for adults past a certain age. There are earned disability benefits available to people who can no longer work because of medical challenges.
The SSA also oversees the Supplemental Security Income (SSI) benefits program. Unlike disability and retirement benefits, SSI benefits are available to qualifying applicants regardless of work history. Children and adults who have never worked can qualify for SSI if they have certain disabling medical conditions.
Older adults who have retired and who live on a fixed income can also qualify for SSI to help maintain a basic standard of living. SSI benefits can help supplement Social Security retirement benefits. Recently, the SSA announced the expansion of a limited existing rule that could have major implications for retired adults.
Rental subsidy rules changed
Historically, applicants seeking SSI benefits have to provide thorough financial disclosures. They need to account for their financial resources and all streams of income. They also often have to report any financial benefits that they receive, such as food benefits and rent assistance.
Rental subsidy benefits available for those with fixed or limited incomes have long affected eligibility for SSI benefits. In seven states, specifically Connecticut, Illinois, Indiana, New York, Texas and Washington, SSI recipients could still obtain or maximize SSI benefits despite receiving rental subsidies.
That rule has now expanded to include applicants in every state. Retired individuals in West Virginia may now be able to qualify for SSI if they could not before or increase how much they receive in their monthly SSI payments.
Experts familiar with SSI benefits estimate that this new rule could increase monthly payments for 41,000 current SSI recipients. They may receive, on average, an additional $132 per month because of the new rental subsidy rule. Another 14,000 people may be able to qualify for SSI benefits now that their rental subsidies do not preclude them from qualifying.
What qualifies as a rental subsidy?
Different states and municipalities have unique programs that help older adults and other vulnerable people cover the cost of rent. The SSA has historically looked at those benefits, along with financial support and even in-kind support provided by community members, when determining whether people are eligible for benefits and how much support they receive each month.
The previous rule compared what the SSI applicant paid each month in rent to the current market rental value (CMRV) in their area. In scenarios where an older adult pays less than the CMRV for their living space, the SSI has treated that difference in price as a subsidy. A subsidy is a form of unearned income that influences what other benefits an applicant may receive.
Contrary to what people think, the subsidy does not even need to be a form of government assistance necessarily. Those who have special arrangements with their landlords or who live in a property owned by friends or family members for a reduced rental rate could also face challenges when seeking SSI benefits.
Historically, the SSA has also looked at private sources of support, such as friends, family members or a local church providing food regularly, as part of an applicant’s income. However, that has changed as well. Food received directly from outside parties does not contribute to in-kind support and maintenance calculations anymore. Financial benefits for purchasing food are still a consideration.
The process of calculating all forms of financial support can be difficult for older adults in need of SSI benefits. It is very easy for applicants to make mistakes, especially if they do not have up-to-date information about program rules. Those hoping to secure SSI benefits or optimize what they receive may need help navigating the Social Security system. Reaching out to the team at Carey & Stewart by clicking here or calling 304-914-3577 can help retired adults explore their support options during their golden years.