COVID-19 reinstatement of IHSS overtime violations

The California Department of Social Services (CDSS) has reinstated overtime and travel time violations for IHSS providers that were suspended because of COVID-19.

In ACL 20-32, CDSS stated that overtime and travel time violations incurred while performing services that were in critical need because of the COVID-19 state of emergency would be removed.

Effective September 1, 2020, violations for exceeding overtime and travel time limits are reinstated.   Going forward, counties should use the process in ACL 16-46 to determine requests to rescind overtime and travel time violations for services that are necessary because of COVID-19.  Counties can override overtime violations if: 1) the additional hours are necessary to meet an unanticipated need; 2) the additional hours are related to an immediate need that could not be postponed until a backup provider arrives; and 3) the additional hours are related to a need that would have a direct impact on the IHSS recipient and would have been needed to ensure their health or safety.

COVID-19 may require IHSS providers to work additional hours of overtime.  These hours may fall under the above criteria. Counties should consider such situations when determining whether to override an overtime or travel time violation.   (ACL 20-103, September 8, 2020.)

COVID-19 extension of COVID-19 time on aid exemption

The California Department of Social Services (CDSS) has issued guidance regarding extension of the CalWORKs 48-month time on aid clock because of COVID-19.  In Executive Order N-75-20, Governor Newsome extended the exemption of months receiving CalWORKs counting on the 48-month time on aid clock until July 1, 2020, or when the state of emergency ends, whichever is sooner.  The exemption does not apply if the family will exceed the federal 60-month time on aid limit.

The executive order only extends time on aid for months in which CalWORKs aid are services are received.  Former CalWORKs recipients who were discontinued for meeting the 48 month time on aid limit must be eligible for a time limit extender to be added back to an assistance unit.   (ACWDL, August 31, 2020.)

COVID-19 Pandemic EBT update

The California Department of Social Services (CDSS) has issued information regarding Pandemic EBT (P-EBT).  P-EBT provided a temporary emergency nutrition benefit to children who otherwise would have received free or reduced school meals if not for school closures because of COVID-19. CDSS operated the program.

Effective August 31, 2020, counties have responsibility to assist with PIN set-up for P-EBT cards and requests for replacement P-EBT cards.

Counties cannot assist with eligibility issues because the deadline for applications for and appeal of denials of P-EBT has passed.  Counties cannot determine P-EBT eligibility or issue P-EBT benefits.  CDSS is processing appeals and anticipates that all appeals will be processed by September 17.  Clients who submitted an appeal and are found to be eligible will receive a confirmation when their P-EBT card is mailed.  Clients who appeal and are found to be ineligible will get a confirmation email with information about the outcome of the appeal.  (ACWDL, September 1, 2020.)

COVID-19 extension of reverification of employment and appraisals for FHA Single Family loans

The United States Department of Housing and Urban Development has extended temporary changes to re-verification of employment and appraisal rules for FHA Single Family programs that were announced in Mortgagee Letter 2020-05, summarized here.  Until October 31, 2020, mortgagees do not need to re-verify employment within 10 days of the Note or within 10 days of loan disbursement if there is no loss of employment by the borrower.

Appraisers may do Exterior-only (viewing from the street) or Desktop-Only (relying on various documents and not viewing the property) appraisals for FHA Single Family loans.

There changes also apply to refinances and reverse mortgages.  (Mortgagee Letter 2020-28, August 28, 2020.)

COVID-19 Extension of FHA mortgage and eviction moratorium

FHA has extended until December 31, 2020 its directive that properties secured by FHA- insured Single Family mortgages are subject to a moratorium on foreclosure, announced in Mortgagee Letter 2020-04, summarized here. This is the third extension of this moratorium.  The moratorium applies to initiation of and completion of the foreclosure process.

Evictions of persons from properties secured by FHA- insured Single Family mortgages are suspended until December 31, 2020.

Deadlines for the first legal action and reasonable diligence timelines are extended by 90 days from the date of expiration of this moratorium.  (Mortgagee Letter 2020-27, August 27, 2020.)

COVID-19 Social Security waiver of overpayments during COVID-19

The Social Security Administration has issued an interim final rule regarding waiver of certain overpayments that accrued during the COVID-19 pandemic. Overpayments incurred between March 1, 2020 and September 30, 2020 that Social Security did not manually process because of its cession of certain activities are eligible for a streamlined waiver process.  Social Security will assume that these overpayments were the result of Social Security ceasing certain operations and that it would be against equity and good conscience to collect them and will waive the debt.

Overpayments that qualify for the streamlined waiver process include overpayments caused by suspended Title XVI redeterminations, not processing information in the claimant’s file, and other suspended actions.  Overpayments identified through automated processes such as computer interfaces with the Veterans Administration are not eligible for streamlined waiver because those matches continued to be processed during COVID-19.

Streamlined waiver will not apply to overpayments caused by fraud or misuse of funds by a representative payee.  Only the portion of an overpayment that occurred between March 1, 2020 and September 30, 2020 is eligible for streamlined waiver.

Auxiliary beneficiaries may be eligible for streamlined waiver even if the primary beneficiary is not eligible for streamlined waiver for the overpayment.

Overpayments that are not eligible for streamlined waiver may still be eligible for the regular waiver process.

Social Security will not issue refunds outside of the regular waiver process for overpayment recovery that occurred during the pandemic period.

The streamlined waiver process applies to qualifying overpayments that Social Security identifies before December 31, 2020.

Between August 31, 2020 and December 31, 2020, overpayment notices will direct beneficiaries to contact their local field office about their overpayment or to request an overpayment waiver.  Field offices will review the case to determine if streamlined waiver applies.  If it does, the field office will document the waiver request and attest to the beneficiary’s signature.  The beneficiary will not be required to complete the full SSA-632 Request for Waiver or provide supporting information about their income and expenses to make the waiver determination.

Beginning August 31, 2020, Social Security intends to resume its normal workload.

This interim final rule is effective on August 27, 2020. Comments on the rule are due on October 26, 2020.  (Waiver of Recovery of Certain Overpayment Debts Accruing During the COVID-19 Pandemic Period, 85 Fed. Reg. 52909.)