Sharma

MEMORANDUM **

Surya P. Sharma (“Sharma”) appeals the district court’s summary judgment order affirming the administrative law judge’s (“ALJ’s”) application of the one-third reduction rule to Sharma’s supplemental security income (“SSI”) benefits. We reverse. Because the parties are familiar with the factual and procedural history of this case, we will not recount it here.

I

If a social security claimant lives in the household of another and receives free food and shelter from the person in whose household the claimant is living, the claimant’s income (for the purposes of social security benefit calculation) is considered to be increased by one-third of the federal benefit rate. 20 C.F.R. § 416.1131 . If such a claimant pays his or her pro rata share of a reasonable estimate of the monthly household operating expenses, then the one-third reduction rule does not apply. 20 C.F.R. § 416.1133 . Under the applicable regulations, proceeds of a loan are not considered income to the borrower. 20 C.F.R. § 416.1103 . “A loan can be cash or an in-kind advance in lieu of cash. For example, an advance of food or shelter can represent a loan of the pro rata share of household operating…