Supplemental Nutrition Assistance Program - Impact - Housing Expenditure

Housing Expenditure

The lack of affordable housing in urban areas means that money that would have been spent on food is spent on housing expenses. Housing is generally considered affordable when it costs 30% or less of total household income; rising housing costs have made this ideal difficult to attain.

This is especially true in New York City, where 28% of rent stabilized tenants spend more than half their income on rent. Among lower income families the percentage is much higher. According to an estimate by the Community Service Society, 65% of New York City families living below the federal poverty line are paying more than half of their income toward rent.

The current eligibility criteria attempt to address this, by including a deduction for "excess shelter costs." This applies only to households that spend more than half of their net income on rent. For the purpose of this calculation, a household's net income is obtained by subtracting certain deductions from their gross (before deductions) income. If the household's total expenditures on rent exceed 50% of that net income, then the net income is further reduced by the amount of rent that exceeds 50% of net income. For 2007, this deduction can be no more than $417, except in households that include an elderly or disabled person. Deductions include:

1. a standard deduction that is subtracted from income for all recipients,
2. an earned income deduction reflecting taxes and work expenses,
3. a deduction for dependent care expenses related to work or training (up to certain limits),
4. a deduction for child support payments,
5. a deduction for medical expenses above a set amount per month (only available to elderly and disabled recipients), and
6. a deduction for excessively high shelter expenses.

The adjusted net income, including the deduction for excess shelter costs, is used to determine whether a household is eligible for food stamps.