Manufactured home space rental with Housing Choice Voucher

The United States Department of Housing and Urban Development (HUD) has issued guidance about using Housing Choice Vouchers for manufactured home space rent.  A Housing Choice Voucher now covers monthly payments to amortize the cost of purchasing a manufactured home in addition to space rent, utilities and owner maintenance and management charges for the space.  Monthly payments toward purchasing of the manufactured home include principal, interest, property taxes and insurance, and debt service costs.  Any increase in debt service costs from refinancing while living in the manufactured home are excluded.

If the HAP amount exceed the the rent to the space owner, the housing authority can either pay the remaining balance to the family or pay the remaining balance to either the lender or the utility supplier or both if they are willing to accept HAP payments.

The family is obligated to promptly report any changes in the loan payment amount.

The housing authority must recalculate the manufactured home space rent HAP at the first regular reexamination after April 18, 2017.  (PIH Notice 2017-18, September 7, 2017.)

Eligibility for children with exceptional needs for part day preschool

The California Department of Education (CDE) has issued instructions implementing eligibility for children with exceptional needs for Part-day California State Preschool Programs (CSPP).

Part-day CSPPs operate no less than three hours and no more than four hours per day for at least 175 days per year.  These programs serve children who are three or four years old before September 1 of the fiscal year in which they are served.

Children are enrolled on a priority basis.  First priority is three or four year olds who are receiving child protective services or who are identified as at-risk of abuse, neglect or exploitation.  Second priority is eligible four year olds who are not enrolled in transitional kindergarten, in income ranking order.  Third priority is eligible three year olds in income ranking order.  Fourth priority is children in families whose income is no more than 15 percent above the income eligibility threshold, with up to 10 percent of the enrolled children over the income eligibility threshold.

Contractors may enroll age eligible children with exceptional needs whose family income is above the income eligibility threshold after all otherwise eligible children have been enrolled.  Children with exceptional needs are children who have an individualized family service plan or an individualized education plan, receive early intervention and related services or appropriate special education, and require the special attention of adults in a child care setting.  Families with children who have exceptional needs and have income above the eligibility threshold are considered income eligible for Part-day CSPP.  (Management Bulletin 17-12, September, 2017.)

12-month child care eligibility

The California Department of Education (CDE) has issued instructions implementing the 12-month eligibility requirement in AB 99.  When a family establishes eligibility child care, the family shall be considered to meet all eligibility and need requirements for not less than 12 months.  During the 12 month eligibility period, families are only required to report changes in income that are above 85 percent of the state median income.  Income increase to over 85 percent of State Median Income must be reported within 30 days.  Families can report reductions in income or increases in service need, and those reports will be processed decrease fees or increase services.  Families can also voluntarily request reduction in service hours.

As a result of the new 12 month certification period, the three month limit on services on the basis of a child at risk of abuse, neglect or exploitation is removed.  The 60 day extension for seeking employment is also removed.

The 12 month certification period does not change the manner in which contractors are reimbursed or attendance reporting requirements.  (Management Bulletin 17-14, September, 2017.)

Changes to child care family fees schedule

The California Department of Education (CDE) has issued a Management Bulletin about changes in the child care family fee schedule.  The Management Bulletin has a link to a chart of new the family fee schedule based on the revised minimum income ceilings from AB 99.

The Management Bulletin also contains guidance about charging the family fee.  Families are assessed a flat monthly fee based on number of hours of care, income and family size.  Families with a certified need of less than 130 hours per month are assessed a part-time fee.  Contractors must use the new fee schedule when assessing a family at initial application or recertification, a parent voluntarily reports changes to reduce their family fees and when  recalculating fees to determine the amount of a refund because of changes in the family fee.  Agencies cannot increase fees because of the new schedule fees unless the change results from recertification.

Several types of families are exempt from the family see.  These families are families receiving CalWORKs, families enrolled in part-day preschool, families with children at risk of abuse, neglect or exploitation, and families whose children are receiving Child Protective Services services.

When the parent has a predictable schedule, the contract uses the that schedule to determine the number of hours of child care.  For families with unpredictable schedules, the contractor uses the average number of work hours for the four months prior to certification.  If there is not work history, the fee is based on verified hours the employer expects the parent to work, or self-employment documentation provided by the parent.  The contractor reassesses the fee every 12 months unless the family requests a reduction by reporting a change.

When a family requests a reduction to their family fee by reporting a change such as family income, days and hours of care needed, or family size, the contractor must reassess the family fee.  The parent must provide documentation to support the reported change.  The family fee reduction takes effect on the first of the month following receipt and approval of the verification of the change.  The documentation cannot be used to make any other changes to the service agreement.

A Notice of Action must be issued immediately upon receipt and approval of the documentation supporting the change.  The fee reduction is effective immediately upon receipt of the Notice of Action.  (Management Bulletin 17-11, August, 2017.)

Changes to child care income eligibility and fees

The California Department of Education (CDE) has issued three Management Bulletins about changes in child care income eligibility.  For purposes of initial eligibility for a family’s adjusted monthly income must be at or below 70 percent of State Median Income.  Once the family is eligible, the family remains eligible until their adjusted monthly income exceeds 85% of State Median Income.  A schedule of the initial income eligibility amounts is in Management Bulletin 17-08.

The family must report income increases that exceed the 85% threshold.  The contractor must notify parents in writing at the time of initial eligibility and at recertification of the dollar amount that equals the 85% threshold, and of the requirement to report when income exceeds this dollar amount.  After reporting, the contractor must redetermine eligibility, including evaluating eligibility for other state of federally funded child care programs.  A schedule of the 85% threshold reporting amount is in Management Bulletin 17-09.

In addition, CDE has adopted a new income ranking table.  First priority for child care services are to children who are receiving Child Protective Services, or have been identified as as-risk of abuse, neglect or exploitation.  Second priority is by income ranking order.  Management Bulletin 17-10 includes a link to spreadsheet of the new table to determine the income ranking order for enrollment and disenrollment.  (Management Bulletins 17-08, 17-09 and 17-10, July, 2017.)

EITC changes

CDSS has notified counties about changes to the federal and state Earned Income Tax Credit (EITC) programs.  The maximum income and credit limits for federal EITC has increased for the 2017 tax year.  CDSS’ notice includes a table of the 2017 tax year maximum income and credit limits.

The California EITC is expanded to increase the income limit and to allow self-employment income to be eligible for the California EITC starting in the 2017 state tax year.  CDSS’ notice includes a table of the California maximum income and credits for the 2017 tax year.

EITC payments are exempt from consideration as income when determining CalWORKs eligibility and grant levels.  EITC payments are permanently excluded as income when determining eligibility and grant amounts for CalWORKs and CalFresh.

EITC payments are exempt from resource consideration for CalWORKs and CalFresh for 12 months starting with the month of receipt of payment.  Counties are encouraged to inform CalWORKs recipients that EITC payments are exempt from consideration as property for 12 months so that they do not need to spend down the EITC payment to maintain CalWORKs eligibility.  (ACL 17-120, December 5, 2017.)