607 Expenses Exceed Income

 

 

 

Revised 09/27/2022

Policy

Expenses Exceed Income (EEI) may be indicated by one or more of the following:

·         The customer reports a living expense, like a mortgage payment, that is higher than the amount of income reported;

·         The customer reports little or no income and would be unable to pay for food, clothing or shelter;

·         The customer reports living off savings or other resources, but proof does not show enough resources to cover the expenses.

If the EEI is...

AND the customer...

Then...

An ongoing situation, not caused by a recent loss of income or other change

Cannot or will not explain how expenses are being paid

A written statement from the customer or knowledgeable source that explains how the customer’s living expenses are met.

AND

·        Bills showing the expenses are unpaid; or

·        Proof of how the customer is paying the expenses. (See proof section for details)

Explains how the living expenses are being met

The customer’s statement is acceptable proof unless questionable or inconsistent with other information.

Due to a new change in circumstances

Does not know yet how expenses will be met

The customer’s statement is acceptable proof. A review of the customer’s situation will be needed in 6 months.

Explains how the living expenses are being met

The customer’s statement is acceptable proof unless questionable or inconsistent with other information.

 

Definitions

 

Term

Definition

Expenses Exceed Income (EEI)

EEI is a situation that occurs when the monthly living expenses reported are higher than the monthly income reported. This is either at the time of the initial determination of eligibility or later.

 

Proof

The customer’s statement explaining how basic living expenses are being met is usually enough to resolve expenses exceed income. However, if the customer’s explanation is questionable or inconsistent with other information received by the agency, proof of expenses and how the expenses are being paid is needed.

See Expenses Exceed Income for examples of questionable or inconsistent information.

Proof of expenses includes:

·         Receipts;

·         Statements;

·         Bills;

·         Insurance Policies;

·         Payment Books;

·         Contracts; and

·         Collateral contacts with knowledgeable sources.

 

Proof of how the customer is paying the expenses includes:

·         Credit card statements showing payments for expenses;

·         Bank statements showing expenses being paid from savings;

·         Statements from anyone giving or loaning money to the customer; and

·         Statements showing that an expense has been waived or deferred and for how long.

 

Legal Authority

This requirement applies to the following programs:

Program

Legal Authorities

All programs

42 CFR 435.952