FREE BOARD AND LODGING RECEIVED DURING TEMPORARY ABSENCE FROM HOME
Absence one month or less
The value of free board and lodging reasonably anticipated to be received by a recipient during a temporary absence from their home of not more than one calendar month is exempt.
Absence exceeds one month
Semi-Annual Reporting (SAR)
After an absence of one month, free board and lodging, such as food, shelter, and utilities, are considered reasonably anticipated income to be received during the SAR Payment Period.
Annual Reporting/Child-Only (AR/CO)
After an absence of one month, free board and lodging, such as food, shelter, and utilities, are considered reasonably anticipated income to be received during the AR/CO Payment Period and are considered income.
Please refer to AR Reasonably Anticipated Income CalFresh policy when entering the income on CalWORKs/CalFresh combo cases.
Free housing
Free housing is applied to the CalWORKs budget when:
- The mortgage holder refuses to accept anything but the full payment for all house payments due;
- The house is in foreclosure;
- An insurance plan or other person or company is paying the loan payments and principal, interest, insurance, and taxes are all included in the mortgage payment; or
- No rent is being paid, and the landlord is not attempting to collect the amount owed.
Participant does not pay the mortgage, taxes, or insurance, but must pay for repairs and upkeep
Free housing is applied and the IIK value of housing is deducted from the grant.
Participant pays only the taxes and insurance
Insurance and property taxes are considered a part of the cost of owning a house.
In this instance, there is no deduction of the IIK for housing.
Participant pays a reduced rent to a landlord in exchange for their services as a manager of the apartment building
There is no IIK deduction from the grant unless the rent is totally free in return for their services as a manager.
Refer to 63-502 Income Definition, Exclusions and Deductions CalFresh policy for CalWORKs/CalFresh combo cases.
Participant receives free rent in exchange for managing the apartment building
The actual value of the housing is compared to the IIK amount for housing.
The lesser of the two values is treated as earned income and the disregards are deducted.
When someone other than the applicant/participant pays the house payment or a utility bill
- The house payment is paid (including taxes and insurance) directly to the mortgage company; the IIK amount for housing is deducted; and/or
- All the utilities (including phone) payments are paid directly to the utility’s companies; the IIK amount for utilities is deducted.
Note: If the applicant/participant pays one of the utility bills, no deduction for free utilities can be made.
When a family receives free rent from a shelter
Any IIK provided on the basis of a private non-profit organization is exempt as income.
MBSAC AND IIK VALUES
3.42 percent increase to the MBSAC and IIK Chart 07/01/25 – 06/30/26
| NA | IIK | ||||
|---|---|---|---|---|---|
| AU Size | MBSAC | Housing | Utilities | Food | Clothing |
| 1 | $930 | $422 | $89 | $231 | $70 |
| 2 | $1,526 | $560 | $102 | $493 | $137 |
| 3 | $1,892 | $613 | $105 | $632 | $204 |
| 4 | $2,244 | $645 | $111 | $781 | $272 |
| 5 | $2,561 | $645 | $111 | $947 | $346 |
| 6 | $2,880 | $645 | $111 | $1,095 | $415 |
| 7 | $3,166 | $645 | $111 | $1,221 | $484 |
| 8 | $3,445 | $645 | $111 | $1,332 | $538 |
| 9 | $3,738 | $645 | $111 | $1,466 | $618 |
| 10 | $4,056 | $645 | $111 | $1,586 | $677 |
| More than 10 |
Add $36 for each extra person |
NA | |||
Participant does not agree with the deduction of the need item
Applicants/Participants can provide verification that the value of the need item(s) is less than the IIK value.
The verification should be accepted, and the lower amount(s) used unless there is conflicting information.
AU includes an excluded person whose needs are not considered in the AU
The IIK value to the AU is the lesser of:
- The net market value of the IIK value paid by the AU prorated for the number of persons in the AU; or
- The net market value is accepted, as long as the applicant/participant provides satisfactory evidence.
- The IIK chart value for the number of persons in the AU.
Example
The AU consists of three individuals. They share free housing with one person who is excluded from the AU due to noncitizen status.
The applicant/participant provides verification that the net market value of the housing is $300. The prorated amount is $225 determined as follows:
$300 divided by 4 (AU and Non-AU Members) equals: $75
$75 times 3 (AU Members) equals: $225
The IIK table value for an AU of three is $613. The amount is subject to change.
The IIK considered in the CalWORKs grant computation is $225, the lesser of $225 and $613.