In the Winter 2016 issue of this e-newsletter, we discussed the implications of ABLE [¹] accounts on individuals’ eligibility for the SSI Program and the amount of benefits.  Under current rules for the SSI Program, ABLE account distributions for housing expenses are not counted as the SSI beneficiary’s resources if the funds are spent within the calendar month in which the distribution is taken.[²]  “Housing expenses” here refer to qualified disability expenses, or QDEs, for mortgage payments, property insurance required by the mortgage holder, real property taxes, rent, and utilities (see POMS SI 01130.740 for details).

A distribution taken for a housing expense is counted as a resource for SSI purposes if the beneficiary takes a distribution for housing expenses but then retains the funds into the calendar month following the distribution.  For example, if the beneficiary takes a distribution for housing expenses in May, but does not use it to pay rent until June 2, the distribution is counted as a resource.  Ironically, this rule penalizes the people who can least afford it: People with disabilities who have low incomes and few financial resources.  Rather than create rules that contribute to a weakened safety net for a vulnerable population, we urge the SSA to change the rule such that distributions for housing expenses that are retained into a following calendar month are no longer considered a countable resource for SSI benefits.

In the meantime, we reiterate our note of caution from the Winter 2016 e-newsletter:

Since the timing of distributions taken for housing QDEs can affect whether the distribution is counted as a resource (i.e., received and spent within the same month or not), it is important that the designated beneficiary or person with signature authority carefully manage the timing of the distributions and corresponding housing QDE payments.