Expected to Work/Barriers to Full Employment Policy & Procedures

Published Date: June 15, 2009
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11 Income

Third Party Payments

A direct payment made by a third party on an applicant or recipient’s behalf is usually not considered to be income.

Example 1
A recipient’s family member pays all or part of the recipient’s rent directly to the landlord. The money is not income. If the recipient has shelter costs remaining, core shelter should be issued.

Example 2
A family member gives money to the recipient to pay rent. The money is income and must be reported. It is not exempt.

Exception
Payments made to an applicant’s or recipient’s agent (e.g., lawyer) are considered income. Paying money to someone’s agent is the same as paying that person directly.

Example 1
A recipient owns a house, but does not live in it. The recipient rents the house to another person, on a rent-to-own (agreement for sale) basis. The tenant pays rent to the recipient’s lawyer, who in turn makes the mortgage payments. The full amount of the rent is income of the recipient, because it is paid to the recipient’s agent (lawyer). It is not exempt.

Example 2
A recipient owns a house, but does not live in it. The recipient rents the house to another person, on a rent-to-own (agreement for sale) basis. The tenant pays the rent directly to the mortgage company. The rent is not income. However this house would be an asset.

Payments made to an agency, business or person (e.g. landlord) on an applicants or recipients behalf in lieu of paying child or adult support are treated the same as if those payments were made to the person directly.