Yearly Archives: 2018

Net worth, asset transfer and income exclusions for needs-based veterans benefits programs

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The Department of Veterans Affairs has issued final regulations regarding net worth, asset transfer and income exclusions for needs-based veterans benefits programs.  The regulations adopt the Community Spouse Resource Allowance from the Medicaid program as the net worth limit for eligibility for needs-based veterans benefits programs.  In 2018, the Community Spouse Resource Allowance is $123,600.

The regulations include several provisions about calculating net worth.  These provisions include the claimant’s primary residence is excluded as an asset, the income and assets of a child living in the primary residence are counted in the applicant’s net worth, assets of the claimant’s spouse are counted even if the claimant does not live with the spouse and assets of a guardian are counted for a surviving child’s claim, an income deduction for disabled veterans, and both the principle and distributions from individual retirements accounts are counted.  The regulations do not distinguish between liquid and non-liquid assets.

The regulations also implement a penalty for transfer of assets for less than fair market value.  The maximum penalty is 5 years of benefits eligibility.  Assets transferred as a result of fraud, misrepresentation or unfair business practice related to sale or marketing of financial products or services are not considered transferred for less than fair market value.

Amounts paid by a veteran, veteran’s spouse or surviving spouse on behalf of a veteran’s child for unreimbursed medical expenses are deductible if expenses exceed 5 percent of the veteran’s benefit amount.  In addition, expenses for institutional care and in home care are deductible.

The pension rate is reduced when a pension recipient is receiving Medicaid-covered nursing home care.  The regulations implement a statutory change that this provision applies to surviving children.  The regulation also adds that this provision should not cause an overpayment of benefits unless there is willful concealment of information.  (83 Fed. Reg. 47246, September 18, 2018.)

Demolition and/or disposition of public housing property

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The United States Department of Housing and Urban Development (HUD) has issued guidance regarding demolition and/or disposition of public housing.  A public housing authority must apply to HUD to demolish or dispose of public housing property.

For disposition of public housing property, the application must be based on at least one of three reasons: 1) The conditions in the area surrounding the project adversely affect the health or safety of residents or the feasible operation of the project, which can be supported by either conditions that present serious obstacles ion maintaining the under as healthy and safe housing an why the housing authority cannot cure or mitigate those conditions in a cost-effective manner or lack of demand for the units; 2) disposition allows for the development of other properties that will be more efficiently or effectively operated as low-income housing; 3) disposition is in the best interest of the residents and the housing authority, which can include unit obsolescence, very small (50 or fewer units) housing authority, comprehensive rehabilitation or replacement through rental assistance demonstration, improved efficiency or effectiveness through on-site development of low-income housing or scattered site units that are no longer sustainable.

For non-dwelling and vacant land, the housing authority must certify that the property exceeds the needs of the project or disposition of the property is incidental to, or does not interfere with, continued operation of the project.

Disposition at below fair market value requires a finding of commensurate public benefit, which HUD determines on a case-by-case basis.  Generally, the disposed property is developed for affordable housing serving low-income families.

For demolition of public housing, HUD reviews demolition requests in accordance with the following criteria: 1) substantial physical issues of the building or units; 2) the location of the units causes obsolescence, including physical deterioration of the neighborhood, change in neighborhood from residential to industrial or commercial, or environmental conditions of the cite jeopardize residential use; 3) other factors that impact the marketability, usefulness or management of the units that seriously impedes operation of residential use.

In any 5 year period, a housing authority can demolish the lesser of 5 units or 5% of the total public housing units without HUD approval.

As part of HUD’s approval of an application for disposition or demolition, a housing authority may be eligible for tenant protection vouchers.  The housing authority must apply to HUD separately for tenant protection vouchers.

Other requirements for disposition or demolition include that the housing authority should not re-rent units while HUD is consideration an application unless it is necessary for community needs or other reasons consistent with the public housing authority plan, and that the housing authority certifies compliance with applicable civil rights requirements.

If residents are relocated because of demolition and/or disposition, the housing authority must follow the requirements in 24 CFR 970.21 instead of the Uniform Relocation Act.  However, if CDBG or HOME funds are used in subsequent acquisition, rehabilitation or demolition, the project may be subject to the Uniform Relocation Act, including relocation assistance and one-for-one unit replacement.  (PIH Notice 2018-04, March 22, 2018.)

Expulsion from California State Preschool Programs

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Expulsion from California State Preschool Programs

The California Department of Education (CDE) has issued instructions regarding expulsion or disenrollment from California State Preschool Programs for behavior.  These instructions implement AB 752 (2017).

Prior to expulsion or disenrollment for a child’s persistent and serious challenging behavior, the California State Preschool Program (CSPP) contractor must, within 180 days, take the following steps:

  1. Consult with the child’s parents or legal guardians and teacher to maintain the child’s safe participation in the program.
  2. Inform the parents or legal guardians of a child exhibiting persistent and serious challenging behaviors of how the CSPP will assist the child in order to safely continue to participate in the program.
  3. If the child has an Individualized Education Plan (IEP) or Individualized Family Support Plan (IFSP), and with the parent or guardian’s written consent, consult with the local educational agency or the local regional center on how to serve the child.
  4. If the child does not have an IEP or IFSP, consider (a) completing a universal screening including social and emotional development, (b) referring the parent or guardian to local community resources, and (c) implementing behavior supports, before referring the child to the local educational agency to request an assessment to determine the child’s eligibility for special education support and services, including a behavior intervention plan.
  5. If after these steps concerns about safe participation remain, the contractor will consult with the child’s parents or legal guardians, the child’s teacher, and if applicable, the local educational agency providing special education services to the child.
  6. If the contractor determines that the child’s continued enrollment would present a continued serious safety threat to the child or other enrolled children the contractor shall refer the parents or legal guardians to other potentially appropriate placements such as Resource and Referral agencies and programs, or other local referral services available in their community.
  7. Once the reasonable steps outlined above have been completed, the contracting agency may then disenroll the child, subject to the due process requirements and procedures.

CDE identified several resources regarding children with challenging behavior.  (Management Bulletin 18-06, August, 2018.)

Transfer from Stage 1 to Stage 2 child care

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The California Department of Education (CDE) has issued instructions regarding transition from Stage 1 child care to Stage 2 child care. Stage 1 is child care for CalWORKs recipients participating in welfare-to-work activities.  Stage 1 is administered by the California Department of Social Services through county welfare departments or Alternative Payment Programs (APP) under contract with county welfare departments.  Stage 2 is child care for CalWORKs recipients who are found to be stable on the program or former CalWORKs recipients.  Stage 2 is administered by CDE through contracts with APPs.

Stage 2 contractors must develop efficient coordinated systems for transferring families from Stage 1 to Stage 2 to ensure that families do not experience a break in child care services.  The sending Stage 1 program and the receiving Stage 2 program are responsible for data sharing and coordination to ensure the transfer of the nine data elements needed for child care eligibility and payment.  Only those nine data elements must be received to transfer the family to Stage 2.  If the nine data elements are incomplete or are missing information, the family should continue to receive Stage 1 child care until the nine data elements are transferred.  The Stage 2 contractor cannot require the family to provide documentation to transfer to Stage 2.

When the Stage 2 contractor receives all nine data elements and informs the Stage 1 contractor that the nine data elements are complete, the family’s enrollment is transferred to Stage 2.  The family’s 12 month eligibility period for Stage 2 begins on the date the nine data elements are received and confirmed.  There is no need to for the family to complete an application for Stage 2.  Starting on the date the nine data elements received and confirmed, the Stage 2 contractor must assume full responsibility for reimbursing the provider and provide written notice informing the parent of the transfer.

Current CalWORKs recipients are categorically eligible for Stage 2 until they are certified no sooner than 12 months after transfer.  If a CalWORKs family would have their child care terminated for violation of a child care contractor’s reasonable policies, the contractor must notify the county welfare department about possible actions including transfer to Stage 1.

Families who transfer to Stage 2 as former CalWORKs recipients must report if their income exceeds 85 percent of State Median Income.  (Management Bulletin 18-05, August, 2018.)

Definition of homeless for child care eligibility

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The California Department of Education (CDE) has issued instructions regarding the definition of homeless for purposes of child care eligibility.  Families who are homeless can be eligible for child care and development services.  CDE child care programs now use the definition of homeless in the federal McKinney-Vento Act.

The McKinney-Vento Act defines homeless children and youth as individuals lacking a fixed, regular, and adequate nighttime address and includes: 1) Children and youths who are sharing the housing because of loss of housing, economic hardship, or a similar reason;  2) Children and youths who may be living in motels, hotels, trailer parks, or camping grounds due to lack of alternative adequate accommodations; 3) Children and youth living in emergency or transitional shelters or are abandoned in hospitals; 4) Children and youths who have a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings; 5) Children and youths who are living in cars, parks, public spaces, abandoned buildings, substandard housing, bus or train stations, or similar settings; or 6) Migratory children who qualify as homeless because they are children who are living in similar circumstances listed above.

To meet child care eligibility requirements for being homeless, families must provide either 1) a written referral from a legal, medical or social services agency; a local education agency liaison for homeless children; a Head State Program; or an emergency or transitional shelter or 2) a written parental declaration that the family is homeless and a statement describing the family’s current living situation.

To meet the need requirement for receiving services as homeless, the family must either 1) provide a written referral from one of the entities listed above or 2) a written parental declaration of homelessness supported by documentation of at least one need requirement which includes seeking permanent housing for family stability, seeking employment, engaging in vocational training, participating in an education program for English Language Learners, or participating in a program to obtain a high school diploma or GED.

Agencies should support homeless families by enrolling homeless families pending submitting eligibility and need documentation, allowing immediate enrollment of homeless families without immunization records and giving a grace period to submit proof of immunization, not requiring a fixed address or mailing address, conducting outreach to homeless families, and providing or participating in training and technical assistance on identifying the homeless and serving homeless families.  (Management Bulletin 18-04, July, 2018.)

Child care eligibility for parents in ELL, GED or high school diploma program

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The California Department of Education (CDE) has issued instructions implementing AB 273 which makes parents engaged in English Language Learners (ELL) programs, high school diploma programs or GED certificate program eligible for child care and development services.  There is no longer a requirement that these educational programs be related to attaining a vocational goal to confer eligibility for child care.

Contractors should approve a family for child care and development services when the parent has a need for services based on enrollment in an ELL, high school diploma or GED program.  Once certified, families will be certified for have a need for child care for at least 12 months.  Families must submit written documentation of enrollment in an ELL, high school diploma or GED program to the contractor.  Child care hours should be based on the number of hours attending the program and reasonable hours for travel and study time.  (Management Bulletin 18-02, February, 2018.)