article FAQs on SOAR and Permanent Supportive Housing

Are people living in PSH still eligible for SOAR?

Yes, Permanent Supportive Housing (PSH) is considered an intervention for individuals who are experiencing or at risk of homelessness. While the PSH resident is housed, SOAR considers them to be at risk of homelessness, and therefore eligible for SOAR services.

How can SOAR be incorporated into supported housing? What are examples of best practices?

SOAR services are often integrated into PSH programs to assist individuals with disabilities who are at risk of homelessness. The goal is to help them navigate the SSI/SSDI disability determination process and connect them to additional supportive services. One benefit of getting individuals SSI/SSDI is that it helps them gain access to insurance coverage for physical and mental health issues. They will be able to maintain a stable living situation with access to income and more comprehensive care thus improving the PSH program outcomes.   

What are the SSA Living Arrangements? 

The SSA uses four living arrangement categories to determine payment amounts for SSI recipients. First, Category A includes individuals who are experiencing homelessness, in qualifying transitional housing, and those paying rent, or who own their home. Second, Category B covers individuals receiving some in-kind support, and often includes individuals living with family. Third, the State Institution category includes state mental health hospitals, jails, and prisons. Finally, the Non-State Institution category includes nursing homes. Most people living in PSH would be in the Category A living arrangement and may be eligible for the full monthly Federal Benefit Rate (FBR). SSA provides helpful information and examples about SSI living arrangements on their website. 

How does In-kind Support and Maintenance (ISM) impact benefits?

SSA may reduce the full FBR when an individual is in the Category B Living Arrangement. This category applies to individuals living in another person's household and receiving shelter from others in that household. SSA refers to this support as ISM.

As of September 30, 2024, SSA no longer counts food as ISM. Only shelter expenses count, including room, rent, mortgage payments, property taxes, and utilities. SSA still asks whether others in the household provide all of a person's meals, but only to determine which reduction rule applies.

• For example, a person living in their parents' house throughout the month rent-free will have their SSI benefits reduced for ISM because the parents are providing shelter at no cost.

• If the individual receives shelter from others in the household and those household members provide all of their meals, the FBR is reduced by one-third.

• If either condition is not met, the FBR is reduced by the lesser of one-third of the FBR plus $20 or the actual value of the ISM (if it can be documented by the applicant).

It is important for the applicant and beneficiary to document and report the type of ISM received. 

Can living with someone who receives SNAP or other public assistance prevent an ISM reduction?

Yes. Effective September 30, 2024, SSA expanded the definition of a public assistance household. A household now qualifies if it includes the SSI applicant or recipient and at least one other member who receives a qualifying public income-maintenance payment. Previously, every member of the household had to receive one. SSA also added SNAP to the list of qualifying programs. If a person lives in a public assistance household, SSA considers that the person is not receiving ISM from other members of that household. Case managers should ask whether anyone else in the household receives SNAP, TANF, general assistance, or a needs-based VA pension.

Will someone living in PSH who receives a rental subsidy be impacted by ISM?

SSA calculates the FBR for beneficiaries in PSH programs receiving rental subsidies based on specific criteria. 

Rental Subsidy Definition

An individual receives ISM in the form of a rental subsidy when the required rent (including a flat fee payment) is less than the amount charged under a business arrangement. The rental subsidy bridges the gap between the required rent and the actual amount paid.

Calculating Rental Subsidy

Beginning September 30, 2024, SSA expanded its SSI rental subsidy policy, and now the rental subsidy is calculated by subtracting the required rent from the lesser of the applicable Presumed Maximum Value (PMV) or current market rental value (CMRV). 

Income Considerations

In PSH, the amount of rent or occupancy charges owed by the program participant is based on their annual income less allowable deductions. Generally, six factors are considered: number of people in the household, age of household members, anticipated income, anticipated expenses, anticipated allowances, and anticipated household-paid utilities.

What can PSH residents do to maximize their benefits and avoid the ISM reduction?

Income from PSH vouchers may affect SSI benefits depending on the individual’s living arrangement and the type of voucher they receive. It is important to collect documentation to bring to the SSA Pre-effectuation Review Contact (PERC) appointment when benefits are started or submitted to SSA when living arrangements or ISM changes. 

Example Scenarios

• If you live in your own place and receive a PSH voucher that pays for all or part of your rent or utilities, the SSA may count this as ISM, which is a type of unearned income. ISM can reduce your SSI benefit by up to one-third of the FBR.
• If you live in someone else’s household and receive a PSH voucher that pays for less than your fair share of the housing costs, the SSA may also count this as ISM and apply the one-third reduction rule. 
• If you live in a PSH project that is funded by the Continuum of Care (CoC) Program, the SSA may not count the PSH voucher as income at all, as long as you meet the eligibility criteria for the CoC Program. 
• If you live in a PSH project that is funded by the Project-Based Voucher (PBV) Program, the SSA may count the PSH voucher as income based on the rental value of the unit or the actual charge to you, whichever is lower. 

• Each state may have its own guidelines and rules related to PSH. These rules can vary based on local policies, funding sources, and available resources.
• The HUD Exchange provides information on CoC programs, including PSH. You can explore the CoC Program Components section to learn more about PSH eligibility, requirements, and resources.
• State-specific housing agencies often publish guidelines and information related to PSH within their respective states.
• Local community organizations that specialize in homelessness prevention and housing stability can provide insights into state-specific PSH programs and rules.
• HUD has additional information on how income and assets impact eligibility for housing in a Public Housing Authority. The Income and Assets Fact Sheet provides an overview of recent changes to the law and policy.