Government of New Brunswick

The 25% shelter deduction will only apply to situations where the client is living in the parental home. There will not be a shelter deduction unless the client is living in the same building which is occupied by his/her parents.

If the client or applicant is living in another house, mobile home, a cottage or in an apartment building owned but not occupied by the parents and the parents are not charging any rent to the client or applicant, then this would considered in determining the rate of assistance that would apply to that household. Consistent with the current policy, when the shelter cost is less than 25% of the household's basic rate, the difference between 25% of the household's basic rate and the actual shelter cost is to be deducted from the basic rate. In cases where no rent is being charged, the difference will be 25% of the household's basic rate of assistance. This is not in recognition of the dwelling as being the parental home. It is in recognition of the actual shelter cost of the household.

Shelter costs for "maintenance only" situations, may include property taxes, insurance repairs, etc. where the client or applicant can demonstrate that they have incurred these expenses. Acceptable verification that these expenditures have been paid by the applicant or client could include written acknowledgement to that effect by the property owner. Receipts for direct payment by the client or applicant will also be accepted.

For units in the Blind, Deaf or Disabled categories who are living in the parental home, a fixed amount shelter cost deduction is only applied in instances where the parental income exceeds $50,000 and is based on the unit type ($100 for a single person and $150 for two or more people).

 

Low Shelter Costs

The following applies to all households except those who are certified Blind, Deaf or Disabled.

When the shelter cost for anyone except for homeowners is less than 25 % of the household's basic rate, the difference between the basic household rate (BHR) and the actual shelter cost is to be deducted from the BHR. For homeowners with or without mortgage payments, the mortgage payment and/or the maintenance and overhead costs shall be considered to equal shelter costs of more than 25% of their BHR.

Shelter deduction effects rate and eligibility (the deduction is used to lower the BHR to which the client is eligible).

 

Parental Home

A deduction of 25% of the basic unit rate (BUR) is made for all households except those certified Blind, Deaf or Disabled who are living in their parental home. The parental home is defined to be: the home of the parent(s) of an applicant or recipient, which also includes the parent(s) of a spouse or common law partner.  Parent is defined as: “mother, father and/or legal guardian”.

For households in the Blind , Deaf and/or Disabled categories who are living in the parental home, the deduction is based on the parental income. The following schedule is used to calculate the amount of shelter deduction:

 

Parental Gross Annual Income Shelter Cost Deduction
$0.00 to $50,000 $0
$50,000.01 and over $100 for a single person
$150 for two or more people

NOTE: Parents who are self-employed are entitled to the same business expense deduction (up to 50%) as clients who are self-employed.