Budgetary Units with Special Circumstances
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Certain people, when applying together or alone, make up a budgetary unit(g) with special circumstances.
Policy
Budgetary units with special circumstances may receive certain considerations when eligibility for benefits is being determined or when they are using their benefits. See all of the following for detailed information:
Boarders
A boarder is a person who pays someone for providing a room and meals. Boarders are not eligible to receive NA as a separate budgetary unit from the budgetary unit providing the room and meals. The boarder is included as a participant in the budgetary unit that provides the room and meals when all of the following apply:
●The boarder pays reasonable compensation for lodging and meals.
When less than reasonable compensation is paid for lodging and meals, all of the following apply:
The applicant is not considered a boarder.
The applicant is a mandatory NA participant and is required to be included in the NA budgetary unit.
●The budgetary unit chooses to include the boarder as a participant.
When the boarder is participating in the NA budgetary unit, all of the following apply:
●The boarder's income and resources are countable when determining eligibility for the budgetary unit.
●The boarder's rental payment is not counted as income or as a resource to the budgetary unit.
●The boarder's rental payment is allowable as a shelter expense.
When the boarder is not participating in the NA budgetary unit, all of the following apply:
●The boarder's income or resources is not countable when determining eligibility for the budgetary unit.
●The boarder's rental payment is countable as income of the participant who receives the payment.
Elderly or Has a Disability - NA Special Considerations
NA participants who are elderly or have a disability receive special considerations when budgeting and determining eligibility for their NA case, unless they are disqualified for any reason.
An NA participant is considered an elderly participant when they are 60 years of age or older. The participant is considered an elderly participant for NA beginning with the month they turn 60.
NOTE When a participant turns 60, FAA sends the Request for Medical Expenses (X003) notice. Medical expenses are allowable as a deduction for NA participants who are elderly or have a disability.
An NA participant is considered a participant with a disability when they meet at least one of the following:
●Receives any of the following:
SSI benefits under Title XVI.
SSA disability.
Benefits for persons who are blind under Title I, II, X, XIV, or XVI of the Social Security Act.
Disability compensation through the Federal Employee Compensation Act (FECA).
Disability retirement benefits from a federal, state, or local government agency because of a disability considered permanent under Section 221(i) of the Social Security Act.
NOTE For participants to be considered disabled under Section 221(i) of the Social Security Act, verification of the disability is required. The SSA’s list of permanent disabilities can be located by completing an online search for Listing of Impairments.
Long term disability payments from the Arizona State Retirement System (ASRS).
Medicare under Title XIX, Part A of the Social Security Act.
Receives a disability annuity under Section 2(a)(1)(v) of the Railroad Retirement Act of 1974 and meets any of the following conditions:
●Has been determined eligible for Medicare by the Railroad Retirement Board.
●Is considered a person with a disability based on the criteria used under Title XVI of the Social Security Act.
●Certified for, but not actually receiving SSI or RSDI, and any of the following occurs:
They present an SSA Disability Notice.
They are approved for SSI presumptive disability payments.
They are approved for SSI emergency advanced payments.
NOTE A participant may remain certified for disability benefits when their checks are entirely recouped to recover an overpayment. When this is the case, the participant meets the disability criteria.
●Is a veteran and meets any of the following:
Has a service connected or nonservice connected disability that the Veterans Administration (VA) rated as total or paid as total under Title 38 of the U.S. Code.
Is considered by the VA to be in need of regular aid and attendance, or permanently house bound, under Title 38 of the U.S. Code.
●Is a veteran's surviving spouse(g) and considered in need of aid and attendance or permanently house bound, under Title 38 of the U.S. Code.
NOTE There is no requirement that they receive payments from the VA.
●Is a veteran's surviving spouse or child and meets all of the following:
The participant is considered by the VA to be entitled to benefits for a service-connected death or pension benefits for a nonservice connected death, under Title 38 of the U.S. Code.
The participant has a disability considered to be permanent under Section 221(i) of the Social Security Act.
NOTE There is no requirement that the survivor actually receive entitled VA benefits. Entitled to benefits means they are approved for the benefits, whether they are or are not receiving the benefits yet.
●Is approved for Arizona Long Term Care System (ALTCS).
Elderly participants and participants who have a disability and their spouses (when applicable) may participate as a separate NA case when they have a disability that prevents them from purchasing and preparing food separately from other participants in their home.
NOTE Verification of who purchases and prepares separately is only required when information provided by the household is questionable.
NA participants who are elderly or have a disability receive all of the following considerations:
●A special resource limit.
●A deduction for medical expenses when their medical expenses are more than $35 per month.
●A deduction for the entire amount of their excess shelter expenses. Their NA case has no maximum shelter limit.
●They are not subject to the Gross Income Standard.
NOTE Separate NA budgetary units, who live with participants who are elderly or participants with a disability who are unable to buy and cook food alone, are subject to the Elderly or Disabled Gross Income Standard at 165% of the Federal Poverty Level. (For more information, see Optional NA Participants.)
●They are exempt from work registration. For work registration exemptions, see NA Work Requirement Exemptions.
●Elderly participants may be eligible to receive NA under a group living arrangement (GLA) when living in federally subsidized housing for elderly people.
●Participants with a disability may be eligible when living under a group living arrangement(g).
FAA calculates NA benefits using specific rules when the NA case includes an elderly participant or a participant with a disability. Special considerations do not apply to participants who are disqualified from NA participation for any reason.
Foster Care - NA Budgetary Unit
Foster Care(g) participants are not eligible to receive NA as separate budgetary units.
The NA budgetary unit has the option to include the foster care participant in their budgetary unit. This applies even when the foster care participant is related to the NA participant. When the foster care participant is included in the budgetary unit, foster care payments are countable income.
When the Primary Informant(g) is a foster care participant and is residing in a foster care facility that provides the majority of meals (over 50% of the three meals daily), the Primary Informant (PI) is not eligible for NA. See Disqualified Participants for more information.
When the PI is a foster care participant living in a foster care facility with a dependent child, the dependent child is potentially eligible for NA when the dependent child meets all of the following:
●Is not a foster care participant.
●Is not receiving the majority of meals (over 50% of three meals daily) from the facility.
Budgetary Units Experiencing Homelessness
A budgetary unit may be experiencing homelessness(g) when the participants meet any of the following criteria:
●Live in a temporary shelter for persons experiencing homelessness, a halfway house, or a similar facility(g).
NOTE A budgetary unit experiencing homelessness who resides in a public or private nonprofit shelter providing up to three meals per day can apply and be potentially eligible for NA. See Residents of Institutions for NA for more information.
●The budgetary unit does not have a fixed or regular nighttime residence.
●When all of the following apply:
A fixed or regular nighttime residence is going to be lost.
The loss of a fixed or regular nighttime residence is expected within 14 calendar days(g) of the application date.
The budgetary unit does not have the financial means to secure another fixed or regular nighttime residence.
●Live in the residence of another person rent-free for not more than 90 calendar days.
NOTE Budgetary units living in the same residence for more than 90 calendar days are no longer eligible for special considerations based on homelessness. The 90 calendar days do not apply when the participant states they are temporarily residing in an unauthorized institution(g). For more information, see Residents of Institutions for NA.
Certain participants are required to apply together. See NA Participation for more information on who is required to be included in the budgetary unit.
A participant experiencing homelessness needs to have a valid mailing address in order to receive important communications from FAA. When a participant cannot receive mail at the address of a friend or family member, mail needs to be sent to a valid United States Postal Service (USPS) General Delivery location. See General Delivery for more information about how to find a valid USPS General Delivery location.
NOTE Permission to use an unauthorized institution address for mailing purposes only needs to be verified by the facility.
Effective the benefit month of 11/01/2025, homelessness is no longer an exemption for the ABAWD work requirements. See the prior policy for the policy effective before 11/01/2025.
Special considerations for budgetary units experiencing homelessness include, and are not limited to, all of the following:
●Qualify for the Restaurant Meals Program.
●FAA reviews the budgetary unit’s shelter expenses to allow the type of shelter deduction that is to the budgetary unit’s advantage. For complete information about NA shelter deductions, see Shelter Expenses and Deductions.
Allowable shelter expenses for budgetary units experiencing homelessness include, and are not limited to, all of the following:
●Rent and taxes on a motel or hotel room.
●Fees for a campground space.
●Vehicle insurance (both comprehensive and collision are allowable) when the participant is living in the vehicle.
●Vehicle payments when the participant is living in the vehicle.
NOTE License plate fees on a vehicle that the participant is living in are not an allowable expense. For more information about allowable expenses, see Shelter Expenses and Deduction.
Certain budgetary units are required to apply together. See NA Participation for more information on who is required to be included in the budgetary unit.
Many organizations provide meals that NA participants experiencing homelessness can purchase using NA benefits including, and not limited to, all of the following:
●Soup Kitchens.
●Temporary shelters for persons experiencing homelessness.
●Food banks.
●Other meal programs.
NOTE Establishments that receive donated food items from the U.S. Department of Agriculture also have to purchase and serve other food. In order to accept EBT cards for payment, the establishment needs to be authorized by the Food and Nutrition Service(g). The Food and Nutrition Service (FNS) requirements are different for each type of institution. For complete details, see Residents of Institutions for NA.
A participant experiencing homelessness needs to have a valid mailing address in order to receive important communications from FAA. When a participant cannot receive mail at the address of a friend or family member, mail needs to be sent to a valid United States Postal Service (USPS) General Delivery location. See General Delivery for more information about how to find a valid USPS General Delivery location.
NOTE Permission to use an unauthorized institution address for mailing purposes only needs to be verified by the facility.
Migrant Farm Workers
A migrant farm worker is a person who travels away from home on a regular basis to seek work in a field related to agriculture. Consider migrant farm workers in the work stream from the time they leave their homes until they return. Migrant farm workers are exempt from NA work requirements when they meet any of the following criteria:
●They are in the work stream.
●They are under contract to begin work within 30 calendar days(g).
Migrant worker budgetary units may have income that is averaged on an annual basis or averaged over the period the income is intended to cover. FAA determines how the income is budgeted and whether the migrant worker budgetary unit is destitute.
The budgetary unit is considered a migrant farm worker budgetary unit when any participant is engaged in migrant farm labor during the approval period.
Migrant farm worker budgetary units may be eligible for NA expedited services and have verification postponed.
Migrant farm workers are considered as seasonal farm workers when all of the following apply:
●They are in the work stream.
●They are in their home project area.
For more information, see Seasonal Farm Workers.
For CA, migrant farm workers are considered residents of Arizona when all of the following apply:
●They are not receiving CA benefits in another state.
●They live in Arizona at the time of application.
Seasonal Farm Workers
A participant is considered a seasonal farm worker when all of the following conditions are met:
●The participant is employed in agricultural work of a temporary nature.
●The participant is not required to be away overnight from their permanent place of residence.
●The participant is employed doing any of the following:
On a farm or ranch, performing work related to planting, cultivating, or harvesting. This includes loading trucks in the field and all farming activities normally required to plant, harvest, or produce.
The participant performs canning, packing, ginning, seed conditioning and related research or processing operations. The participant is transported to or from work by a day-haul operation.
The budgetary unit is considered a seasonal farm worker budgetary unit when any participant is engaged in seasonal farm labor during the approval period.
Seasonal farm worker budgetary units may have income that is averaged on an annual basis or averaged over the period the income is intended to cover. FAA determines how the income is budgeted and whether the seasonal farm worker budgetary unit is destitute.
Seasonal farm workers are exempt from NA work requirements when they meet all of the following criteria:
●They are in the work stream.
●They are under contract to begin work within 30 calendar days(g).
For CA, seasonal farm workers are considered residents of Arizona when all of the following apply:
●They live in Arizona at the time of application.
●They are not receiving CA benefits in another state.
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
Verification of Disability
Any of the following can be used to verify disability:
●Workers documented observation that the participant has one of the disabilities listed in SSA’s most current list of permanent disabilities.
●Statement from a physician or licensed or certified psychologist certifying that the participant has one of the permanent disabilities listed by SSA.
●A statement from a qualified medical source.
●Documentation from SSA or the Veterans Administration (VA).
Verification of Living Arrangements
Verification of living arrangements includes, and is not limited to, any of the following:
●Group home records.
●Landlord statement which includes all of the following:
Address of the person providing the statement.
Contact number.
Date the statement was written.
Listing of everyone living in the home.
Name of the person providing the statement.
Signature of the person providing the statement.
●Manager.
●Neighbors.
●Other collateral contact sources who know the names of all persons living together.
NOTE Collateral contact verification can only be used to clarify documented verification or when the participant is unable to obtain the verification and asks for assistance.
When the previous listed sources are not available, use any of the following secondary sources:
●Relatives
●Roommates
●School records
Homeless Shelter Expenses
Verification of homeless shelter expenses includes, and is not limited to, any of the following:
●Receipts from rent and taxes on a motel or hotel room.
●Receipts from fees paid for a campground space.
●Vehicle insurance documents.
●Payment booklet or receipts for a vehicle used as shelter.
See Providing Verification for different types of verification and how to provide it.
Verifying Purchase and Prepare Separate for NA
Examples of what can be used to verify purchase and prepare separately include, and are not limited to, any of the following:
●A written statement from each of the adult household members indicating they purchase and prepare separately from the budgetary unit. The written statement must include all of the following:
Address of the person providing the statement.
Contact number.
Date the statement was written.
List of everyone in the home they purchase and prepare separately from.
Name of the person providing the statement.
Signature of the person providing the statement.
●Collateral contact to each of the adult household members verifying they purchase and prepare separately from the budgetary unit.
NOTE Collateral contact can only be made to clarify documented verification the participant has provided or when the participant asks for assistance.
Legal Authorities
7 CFR 273.1(b)(3)(ii)
7 CFR 273.1(b)(4)
7 CFR 273.1(b)(7)
7 CFR 273.2(f)(1)(vi)
7 CFR 273.2(f)(2)
7 CFR 273.2(f)(4)(v)
7 CFR 273.2(n)(4)(i)(D)
7 CFR 273.9(d)(6)(i)
7 CFR 273.11(c)(1)
7 CFR 273.11(n)
7 CFR 273.11(s)
AAC R6-12-101.46
last revised 04/27/2026