CalWORKs and winter storm disaster

The California Department of Social Services (CDSS) has issued a reminder about policy for processing CalWORKs cases for victims and evacuees of state and/or federally declared disasters. Because of the winter storms, Governor Newsom issued statewide Emergency Proclamations affecting Amador, Kern, Los Angeles, Madera, Mariposa, Mono, Nevada, San Bernardino, San Luis Obispo, Santa Barbara, Sierra, Sonoma, Tulare, Butte, El Dorado, Fresno, Humboldt, Imperial, Inyo, Lake, Mendocino, Merced, Monterey, Napa, Placer, Plumas, Sacramento, San Francisco, San Mateo, Santa Clara, Santa Cruz, Stanislaus, Tuolumne, and Yuba counties. In addition, on December 20, 2022, Governor Newsom issued an Emergency Proclamation for Humboldt County due to the effects of the 6.4 magnitude earthquake.  These disasters have made it necessary for some families to evacuate their home counties.

For evacuees who apply for CalWORKs, if the applicant and the county make a good faith effort to obtain verification and are unable to do so, including identity, time on aid, and CalWORKs eligibility factors, the county must accept the evacuee’s statements signed under penalty of perjury in lieu of verification.

When an evacuee applies for CalWORKs, counties must establish that the evacuee was living in a county designated as a federal disaster and/or state-declared emergency zone and ask if the evacuee or anyone else in their family is receiving CalWORKs from that county or another disaster county.

Counties are reminded that COVID-19 flexibilities remain in place and apply to evacuees, including flexibility regarding pregnancy verification, in-person photo identification requirements, and signature requirements.  These flexibilities should allow for effective disaster response.

Disaster evacuees applying for or receiving CalWORKs aid must be informed of their semi-annual and annual reporting responsibilities. Counties must advise evacuees to try to get documentation of eligibility factors impacting for benefits, and to ask for help from the county in getting documentation if they need it.

CalWORKs recipients may be eligible for nonrecurring special needs payments because of emergencies from the fires, such as damage to or loss of shelter or belongings. Nonrecurring special needs funds can be used to repair or replace clothing or household equipment, to provide assistance for damages to the home, or to pay for interim shelter when the AU’s home was destroyed or made uninhabitable or inaccessible. The maximum nonrecurring special needs payment is $600 for each individual incident.

Disaster assistance from federal, state or local government or disaster assistance organizations is excluded from consideration as income.

For CalWORKs applicants, counties are encouraged to offer CalWORKs diversion to evacuees to address their specific crisis or item of need. Applicants in an emergency should be evaluated for Immediate Need Payments. Both applicant and recipient evacuees should be entitled to an exception to the once in twelve months limitation on receiving Homeless Assistance. Recipient evacuees may also be eligible the CalWORKs Housing Support Program.

A written statement from the applicant is sufficient to establish intent to establish residency in California and in the county of application for the foreseeable future. Receipt of benefits at an address outside of California for two months or longer is not apparent evidence of intent to reside outside of California when return to California is prevented by a disaster.

Families who are in an emergency should be evaluated for an immediate need payment.

For income, it is expected that some evacuees will no longer have reasonably anticipated income because of the disaster. For property and resources, counties must consider the applicant’s ability to access, occupy or sell their property at the time of application because of the disaster.

For families temporarily separated because of the disaster, a family member is considered temporary absent if they expect to reunite within one full calendar month. CalWORKs recipients can maintain a home in a different county than the county they are physically residing in if they intend to return to that home within four months.

Most evacuated families will not be able to participate in welfare-to-work activities. Counties should make a good cause determination for evacuated families for nonparticipation in welfare-to-work activities. Counties should also determine if an applicant needs barrier removal services such as mental health services or housing stabilization program services and provide these services as expeditiously as possible.

Counties must maintain the ability for families to apply for Homeless Assistance benefits during normal business hours.  Temporary Homeless Assistance must be issued or denied within the same working day as the request.  Permanent Homeless Assistance must be approved or denied within one business day.

Homeless Assistance can be issued in one lump sum payment for 16 days when homelessness is caused by a declared disaster.  Counties must accept sworn statements of how homeless assistance money is spent, or counties can grant good cause for not providing paper verification such as motel receipts.  Homeless Assistance applications are not required to be made in person or to include a face-to-face interview.  Counties can complete the homeless assistance Statement of Facts on behalf of the family and accept electronic signature or oral attestation.

The CalWORKs Housing Support Program can provide interim housing, including hotels and motels, for disaster evacuees.  CDSS does not limit the number of days the Housing Support Program can cover hotels or motels.

Counties must notify CDSS when they will be closed during normal business hours.  CDSS asks counties to report closures because of a disaster to CDSS as soon as it is safe to do so. (ACWDL, April 3, 2023.)

Addendum — Contra Costa, Riverside, San Diego, and Yolo counties are also now declared disaster counties and are subject to these policies.  (ACWDL. April 27. 2023.)

 

Potential Intentional Program Violation policy

The California Department of Social Services (CDSS) has issued a policy about potential Intentiional Program Violations (IPVs).  Counties can only establish nonfraudulent CalWORKs overpayments and CalFresh overissuances for two years prior to the date of discovery.  Any benefits paid more than 24 months prior to the date of discovery cannot be included in a nonfraudulent overpayment or overissuance claim.

A fraudulent overpayment or overissuance claim is a claim caused by an IPV.  An IPV can only be established by an administrative disqualification hearing, a signed administrative disqualification hearing waiver, a criminal court conviction, or a signed disqualification consent agreement.  If a county determines that a claim previously established as nonfraudulent is fraudulent, the county must reclassify the claim as an IPV and issue a new notice.

CDSS has created the potential IPV claim for cases where the county believes there is an IPV, and the claim is beyond the 24-month establishment period.  When the county creates a potential IPV claim, there will be two claims on the case, the nonfraudulent claim and the potential IPV claim.  Collection on the potential IPV claim must be immediately suspended.

IPV claims are limited to six years before the date of discovery.

If a potential IPV claim is substantiated through either criminal prosecution or the administrative disqualification hearing process, the county must change the potential IPV to an IPV.  If a potential IPV is not substantiated through either criminal prosecution or the administrative disqualification hearing process, the county must delete the potential IPV claim.

Starting March 1, 2023, if a county investigation reveals sufficient evidence to refer the case for either criminal prosecution or an administrative disqualification hearing, the county must send a potential IPV informing notice to inform the client of the potential IPV amount beyond the 24-month period. (ACL 23-19, February 2, 2023.)

CalFresh waivers for the end of the Public Health Emergency

California has been approved for three federal waivers to assist with the end of the federal COVID-19 Public Health Emergency.

California has a waiver for address changes that will be effective from April 1, 2023 to March 31, 2024.  Under the waiver, if a county receives a verified change of address, but does not receive updated shelter cost information, the county will not change the household’s shelter cost.  The county must send a notice encouraging the household to report any changes in shelter costs.  The county must also ask about shelter cost at the household’s next recertification or periodic report.  If the county believes the change of address information is questionable or unclear, the county must respond to the information as required in 7 C.F.R. 273.12(c)(3).

The waiver of the initial application and recertification interview is extended until March 31, 2024.  As part of the waiver extension, starting April 1, 2023 or upon completion of automation, counties must send a written explanation of simplified reporting to all households; provide a verbal explanation of the work requirement if the county contacts the household or the household is subject to mandatory employment and training; send a written notice to all households subject to the general work requirements, the Able-Bodied Adults without Dependents work requirements, and mandatory employment and training; and screen all households for exemptions from work requirements and the Able-Bodied Adults without Dependents work requirements.

The waiver of the recording requirement for telephonic signatures for initial applications and recertifications is extended to March 31, 2024. (ACWDL, March 28, 2023.)

Treasury Offset Program and Franchise Tax Board Intercept for CalFresh overissuances

The California Department of Social Services (CDSS) has issued guidance on suspending collection of CalFresh overissuances by Treasury Offset Program (TOP) and Franchise Tax Board Intercept.  TOP is the federal program to collect overissuances from federal tax refunds or other federal benefits such as Social Security.

When an individual has an overissuance that becomes delinquent, it is referred to both TOP and the Franchise Tax Board for collection.  After three years, TOP is the only method that can be used to collect on CalFresh overissuances.  However, if the individual goes back on CalFresh, the overissuance can be collected by grant reduction.  In that instance, the case must be removed from TOP and Franchise Tax Board because grant adjustment is the only allowed method of collection.

If the individual stops receiving benefits, the case is then returned to TOP for collection as long as the case is delinquent.  The case is considered delinquent until the individual establishes or resumes a repayment agreement, the individual makes a satisfactory payment, the individual pays the entire debt, or, the individual begins receiving CalFresh again.

CDSS states that if an individual stops receiving CalFresh, the county can also reactivate collection by the Franchise Tax Board.   (ACL 23-07, January 11, 2023.)

Time limit exemption for zero basic grant cases.

The California Department of Social Services has issued a reminder about counting zero basic grant cases toward the Temporary Aid to Needy Families (TANF) federal time on aid clock, and CalWORKs state time on aid.  TANF and CalWORKs each have a 60-month time on aid limit.  However, the federal TANF clock and the state CalWORKs time in aid clock can count slightly different months.  The TANF 60-month time limit applies to any months in which “assistance” is received.

Zero basic grant cases do not count toward the TANF time clock.  Zero basic grant cases are: when aid payments are not issued when the grant is under $10, months when a payment is not issued due to a penalty which reduces the payment to zero, the grant is under $10, the grant is $0 because of overpayment recoupment, and the grant is diverted to an employer to offset the recipient’s wages in an on-the-job training program.

By contrast, except for when the grant is under $10, zero basic income cases count towards the CalWORKs time limit.

Nonrecurring, short-term benefits such as homeless assistance do not count toward the TANF time clock.  This means that months where someone receives only short-term benefits such as homeless assistance do not count toward the TANF time clock.

However, special needs payments such as homeless assistance count toward the CalWORKs time clock.  This means that months where someone receives only short-term benefits such as homeless assistance count toward the TANF time clock.  (ACIN I-67-22, October 11, 2022.)

February 2023 emergency CalFresh allotment and end of emergency allotments

California has been approved to issue an emergency allotment of CalFresh for February. 2023.  All households will receive at least the maximum CalFresh allotment.  Households eligible to receive the maximum allowable allotment based on household size are now eligible to receive an emergency allotment of $95 per month. Households who are not eligible to receive the maximum allowable allotment based on household size, but whose emergency allotment would be less than $95 per month to receive the maximum allotment, will receive additional CalFresh benefits to raise their emergency allotment to the $95 minimum.

The emergency allotment will be issued on March 26, 2023.

The February, 2023 emergency allotment will be the last emergency allotment.  Beginning April 2023, CalFresh benefits will return to the regular amount listed on the most recent notice of action.  All CalFresh recipients are mailed an informing notice regarding the end of the emergency allotment.  CDSS is also doing a communications campaign to inform CalFresh recipients about the end of the emergency allotments

Counties are reminded that there are several income deductions, allowances, and exclusions that can help maximize household allotments while minimizing the impact of the end of emergency allotments.  These deductions include the earned income deduction, self-employment deduction, standard deduction, excess shelter deduction, homeless shelter deduction, standard utility allowance, limited utility allowance, telephone utility allowance, dependent care deduction, standard medical deduction, excess medical expense deduction, and child support exclusion.    (ACWDL, February 2, 2023.)