(d) The department shall reduce cash assistance under this section to the extent that the family's shelter costs are lower than the standard shelter allowance used by the department for similar families. The shelter allowance for a family whose costs are below the standard allowance shall be an amount equal to the family's actual verified shelter costs. In this subsection,
- (1) “shelter allowance” means the portion of the cash assistance provided under this section that is allocated by the department for shelter costs;
(2) “shelter costs” means
- (A) rental payments or mortgage payments for the family's housing, including payments made for property or mortgage insurance and property taxes; and
- (B) the cost of utilities, including heat, electricity, basic telephone service, water, sewer, and garbage services incurred for the family's housing; the department may establish different utility cost standards for different areas of the state and may use an average utility cost per month based on estimated level payments over a 12-month period.