The Social Security Administration has published a final rule changing the In Kind Support and Maintenance (ISM) rule. The ISM rule counted shelter that SSI recipient receives for less than fair market value as unearned income that could reduce Supplemental Security Income. Effective September 30, 2024, only rent that is less than Social Security’s defined Presumed Market Value counts as ISM. For 2024, the Presumed Market Value amount is $334.33. (Social Security Dear Colleague Letter, April 17, 2024.)
Summaries of select CalWORKs, CalFresh, Health and Housing Regulations
Author: Stephen Goldberg
Refugee Cash Assistance income disregards
Many refugees receive assistance from Reception and Placement (R&P) grants. R&P grants do not count as income for purposes of Refugee Cash Assistance. The California Department of Social Services (CDSS) has directed counties to also disregard cash grants that refugees and other eligible individuals receive through programs determined by Office of Refugee Resettlement (ORR) to be equivalent to R&P programs for purposes of Refugee Cash Assistance.
ORR has determined that Welcome Corps and the Afghan Placement and Assistance program are equivalent to R&P. CDSS will advise counties if and when ORR identifies other programs as equivalent to R&P or CDSS determines that RCA income disregards should be extended to other federal resettlement initiatives. (ACL 24-16, March 8, 2024.)
Changes to Social Security overpayment policies
The Social Security Administration has announced four changes to its policies about overpayments.
- Reducing the default withholding rate for overpayments from Social Security benefits from 100 percent of monthly benefits to 10 percent of monthly benefits.
- Shifting the burden of proof away from the claimant when determining whether the claimant was at fault in causing the overpayment. This change should make it easier to have waiver of overpayment granted.
- Increasing the possible timeframe for a payment plan from 36 months to 60 months. This change should make it easier to enter into and follow repayment agreements.
- Making it easier to request waiver of overpayment. The policy is not specific about now it will be easier to request waiver of overpayment.
The change in default withholding is effective March 25, 2024. There is an exception when the overpayment is the result of fraud.
If people who receive overpayment notices are March 25, 2024 are incorrectly subject to 100 percent withholding, they should call 1-800-772-1213 to lower their withholding rate.
For overpayments established before March 25, 2024 that have a withholding rate greater than ten percent, people can ask for a lower recovery rate by callin Social Security at 1-800-772-1213 or contacting their local Social Security office. If a beneficiary requests a withholding rate lower than ten percent, Social Security can the request if the overpayment will be repaid within 60 months. If the beneficiary’s proposed repayment rate would extend recovery of the overpayment beyond 60 months, Social Security will gather income, resource, and expense information from the beneficiary and make a determination about the repayment rate. (Social Security Dear Colleague Letters, March 20, 2024 and March 29, 2024.)
Changes to CalFresh Restaurant Meals Program
The CalFresh Restaurant Meals Program allows eligible household buy hot or prepared food at participating restaurants. Eligible CalFresh participants are adults age 60 or over and their spouses, people with disabilities and their spouses, and people experiencing homelessness.
Because of recent guidance from the United States Department of Agriculture, the CalFresh Restaurant Meals Program is limited to household where all members of the household are eligible for it. The only exception is spouses do not need to meet the age or disability criteria. Households that include a member who does not meet the Restaurant Meals criteria (except for a spouse) are not eligible for the Restaurant Meals Program. This change will be effective upon automation in the CalSAWS system, which is expected in early 2025.
After automation is completed, CalSAWS will identify existing households that are no longer eligible for Restaurant Meals and will terminate their access to it.
When automation is completed, any member of a household that is eligible for Restaurant Meals, including spouses, will be able to access the program.
When automation is completed, counties will be required to provide the CF 889 form to all households that are approved for or terminated from the Restaurant Meals Program. (ACL 24-01, January 19, 2024.)
Prepopulated SAR 7
The California Department of Social Services (CDSS) has developed a new SAR 7 semi-annual report form. Effective the date automation is complete, counties must provide the new SAR 7 form prepopulated to recipients of CalWORKs, CalFresh, California Food Assistance Program, Refugee Cash Assistance, Trafficking and Crime Victims Assistance Program, and Entrant Cash Assistance.
CDSS also has a blank version of the new SAR 7 form to be made available in welfare department lobbies and online for on demand access. For cash aid recipients, counties must also provide the new Domestic Abuse Addendum.
Most households are required to submit a report six months after benefits are granted, and six months after completing annual recertification. Elderly and disabled households that do not have earned income are not required to submit semi-annual reports.
Counties must continue to provide the SAR forms to the household by mail, email or in person by so that it is received by the 5th day of the month it is due.
For CalFresh households, changes in immigration status, student status, fleeing felon status or a violation of probation or parole, are not required to be reported on the semi-annual report and the new SAR 7 does not ask those questions.
For CalWORKs and other cash aid, effective the date the prepopulated SAR 7 is automated, property and/or resources will no longer be evaluated semi-annually. Property and resources will only be evaluated at application and annual redetermination.
The new SAR 7 form includes questions about exemptions from the Able-Bodies Adults Without Dependents (ABAWD rules because federal rules require that screening (and it will be needed if the ABAWD rules become effective again in California at some point in the future).
The new SAR 7DA allows households to disclose any history of domestic abuse in order to receive services or assistance. Information about domestic abuse cannot be released to any outside party, agency, or county employee who is not directly involved in the case unless the information is required to be disclosed to law enforcement or the recipient gives written authorization. When an individual completes the SAR 7DA, the county must privately contact them to provide information, resources or needed accommodations.
The SAR 7DA can only be released as part of an intercounty transfer if the recipient has signed a WTW 37 release form.
The disability question on the SAR 7/SAR 7B allows disclosure of a disability or a request for assistance because of a disability. When households report having a disability or state that they need assistance because of a disability, counties must contact the household to assist and provide information, resources or needed accommodations.
When a household checks the “I am homeless” box, counties are strongly encouraged to screen households for homeless assistance or other available services, and to identify eligibility for an ABAWD exemption when necessary. (ACL 24-06, February 2, 2024.)
Calculating CalFresh Overissuances
The California Department of Social Services (CDSS) has issued guidance regarding calculating CalFresh overissuances. This guidance supersedes ACL 15-95 for CalFresh overissuances.
When determining the amount of a CalFresh overissuance, counties must recreate the circumstances of the case, that is they must calculate the amount of the overissuance by determining the difference between the amount of benefits the household should have received and the amount the household actually received. The county must not consider income changes that the household was not required to report unless the change would result in increased benefits.
Households are required to report income that exceeds the Income Reporting Threshold, that is 130 percent of the Federal Poverty Level. This reporting is required at any time, including between semi-annual reports. Households that are eligible for CalFresh with income between 131 and 200 percent of the Federal Poverty Level are not required to report income changes between semi-annual reports.
In determing whether a household has exceeded 130 percent of the Federal Poverty Level, the county must use the household’s actual gross income. Counties cannot use the conversion factor (4.3 times weekly earnings) to determine if a recipient has missed a required report of income over the Income Reporting Threshold.
If a household misses a required report of income over the Income Reporting Threshold, the county must recalculate the monthly allotment for the months in which the household income exceeded the Income Reporting Threshold, and establish any appropriate overissuances.
Counties are required to review information they receive from the Income Eligibility Verification System (IEVS). When the county receives an IEVS match and determines there is a potential discrepancy between the match and the income the household reported, the county must ask for information from the household to verify the IEVS match. If the household does not respond, the county can use the Work Number or another third party payroll source to verify the IEVS match. Counties can only request verification related to an IEVS discrepancy that shows the client may have missed a mandatory report of income over the Income Reporting Threshold.
When reconciling IEVS matches, counties must consider prospective budgeting rules, including whether the income could have been reasonably anticipated at the time of the previous semi-annual report or annual recertification.
If benefits should have been different based on income verified after an IEVS match, the county must recalculate the monthly allotment for the months in which the household income exceeded the Income Reporting Threshold, and establish any appropriate overissuances.
When calculating the amount of an administrative error overissance, the county must apply the earned income deduction. When calculating the amount of an advertent household error or Intentional Program Violation overissance, the county must not apply the earned income deduction. (ACL 24-23, March 29, 2024.)