New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 49 - HOME ENERGY ASSISTANCE HANDBOOK
Subchapter 2 - PROGRAM ELIGIBILITY
Section 5:49-2.3 - Income eligibility-DCA/DHS

Universal Citation: NJ Admin Code 5:49-2.3

Current through Register Vol. 56, No. 18, September 16, 2024

(a) In order to be income eligible for the program, a household's monthly gross earned and unearned income may not exceed the monthly allowable gross income limit for the household size. On an annual basis, the Department of Community Affairs shall revise the income guidelines based on the current Federal Poverty Index, which is published annually in the Federal Register by the Federal Department of Health and Human Services. The Department will use 175 percent of the current Federal Poverty Index as the maximum gross income amount for LIHEAP eligibility. However, income eligibility may not exceed 60 percent of the State median income.

(b) Regardless of income eligibility, the following households are not eligible for program benefits:

1. Persons residing in publicly operated housing unless the household can demonstrate that it has direct responsibility for payment of its heating costs. Energy costs included in rent which is subsidized do not qualify as out-of-pocket payments for heating costs;

2. Persons receiving a rent subsidy which includes all heating costs. Energy costs included in rent which is subsidized do not qualify as out-of-pocket payments for heating costs;

3. Persons for whom nonhousehold members pay for the costs of heating/cooling fuel;

4. Residents of any licensed medical facility (hospital, skilled nursing facility or intermediate care facility), publicly operated community residence, or center for the treatment of drug and/or alcohol abuse; and

5. Households consisting entirely of students who are tax dependents of another household.

(c) Earned income refers to gross income earned by an individual through the receipt of wages, tips, salaries or commissions from activities in which he or she is engaged as an employee or from his or her self-employment. It includes earnings over a period of time for which settlement is made in one payment, as in the sale of farm crops.

1. For the purpose of this program, countable income from self-employment is the gross proceeds of a trade, business or enterprise, adjusted by deducting business expenses or cost of producing the income. Personal expenses, income tax payments, lunches, transportation, child care, etc., are not classified as business expenses for this purpose.
i. Persons who are self-employed shall be required to submit evidence of business receipts and expenditures as the basis for a sound estimate of earned income. A reliable, accurate accounting system or the method utilized in reporting to the Internal Revenue Service shall be acceptable for determining countable net income.

(d) Unearned income refers to the receipt, by the household, of any property or service not included in (c) above which the household may apply, either directly or by sale or conversion, to meet basic needs for food, clothing, and shelter. Included in this definition are returns from capital investment such as dividends and interest, benefits and pensions, annuities, contributions, compensation payments, and receipts from the rental of property. (See 10:90-3.9.)

(e) The following income is not considered in the determination of gross income for this program:

1. Loans which are not to be used to meet current living costs and which are held and used in accordance with the conditions of the loan. Personal loans are excluded when such loans are evidenced by a document, signed by the borrower and the lender, which states the amount of the loan and terms of repayment (this includes loans from financial institutions);

2. Any scholarship, grant, or student loan received by a student so long as the student continues to attend school;

3. Earned income of a student, who is a member of a larger household, enrolled in any school or training program full-time which is recognized by the Federal, State or local government;

4. The value of home produce;

5. The value of food stamp benefits;

6. Benefits provided under the State Lifeline Program including supplemental payments under the Tenants Lifeline Assistance program which are included in the SSI check;

7. Benefits from energy assistance programs, including Universal Service Fund (USF), Lifeline, and New Jersey Statewide Heating and Referral for Energy Services (NJSHARES);

8. Income excluded by law:
i. Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970.

ii. Any payment under Title II (RSVP, foster grandparents, and other) and Title III (SCORE and ACE) of the Domestic Volunteer Services Act of 1973, as amended, shall be excluded.

iii. Payments from the Crisis Intervention Program administered by the Community Services Administration.

iv. Payments received from the Youth Incentive Entitlement Pilot Projects, the Youth Community Conservation and Improvement Projects, and the Youth Employment and Training Programs under Title IV of the Comprehensive Employment and Training Act Amendments of 1978 ( Public Law 95-524).

v. Payments received by eligible parents under the Child Care and Development Block Grant (CCDBG) shall not be counted as income when determining eligibility or benefit levels under LIHEAP.

vi. Payments made to individuals because of their status as victims of Nazi persecution shall not be counted as income when determining eligibility under LIHEAP.

vii. Wages and or salaries, including any training allowances under the Green Thumb Program, are to be excluded when determining eligibility under LIHEAP.

9. Medicare Part B Buy-In which is withheld from the household's Social Security check.

(f) Countable gross monthly earned and unearned income, as defined in (c) and (d) above, and verified in accordance with 5:49-4.1(d), shall be added to determine the household's total gross monthly income. Cents shall be rounded to the nearest dollar. If the monthly gross income does not exceed the income standard (see (a) above) for the household size, the household is income eligible for Home Energy Assistance.

1. In any household declaring zero income, the head of household shall be required to file a declaration of zero income. This information is to be maintained in the case record.

2. In any household reporting less than $ 100.00 in monthly income, the head of household shall be required to document how the household has been supporting itself. Such documentation may include, but is not limited to, checking or savings accounts statements documenting withdrawals, recent prior pay stubs or unemployment, welfare, disability, SSI, or social security benefits statements. In addition, a copy of a recent application for unemployment, social security, welfare, SSI or disability benefits may be accepted. If the household has been supporting itself by other means, such documentation as appropriate to the source of income, shall be accepted.
i. Any household reporting less than $ 100.00 in monthly income, in two consecutive years, the head of household shall be required to document how the household has supported itself for the past year as referenced in (d)2 above.

3. For the purpose of this program, the household shall consist of all persons residing within a single residential unit.

4. Tax dependent college students who are absent from the household solely because of college attendance must be included in the household size for the determination of eligibility.

5. Foster children placed with a family by DYFS are to be included in the household size and the allowance paid by DYFS is to be included in the household's income.

6. Roomer-boarders residing with an applicant household are not to be included in the household size and the income of such individuals is not to be considered in the eligibility determination. However, any income provided to the HEA applicant household by the roomer-boarder in excess of $ 250.00 per month shall be considered in determining the household's gross monthly income.
i. The only exception to (f)4 above will occur if the roomer-boarder is a spouse, parent, grandparent, child, brother or sister of a household member. In such instances, the roomer-boarder shall be included in the household size and his or her gross monthly income considered as part of the household's income in determination of eligibility.

7. If a household member receives Social Security benefits and/or SSI the CAA or other non-profit agency must determine the countable income as follows:
i. For individuals receiving Social Security benefits the net amount of the monthly check is countable. If the household presents an award letter rather than a check as evidence of income, the CAA or other non-profit agency must determine if the individual pays a Medicare Part B premium and deduct that amount from the gross amount of the benefit. The resulting balance shall be considered as income to the household.

ii. For individuals receiving SSI the CAA or other non-profit agency shall deduct the supplemental payment amount from the Tenants Lifeline Credit program which is included in the SSI check. The balance shall be considered as income to the household.

8. Households placed in rental assistance slots utilizing temporary emergency funding made available through the State's emergency assistance initiatives will not be excluded from eligibility for Home Energy Assistance as a tenant whose heat is included in rent.

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