COVID-19 individual stimulus payment

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The Internal Revenue Service (IRS) has issued information regarding the federal individual stimulus payments.  The payments will be up to $1,200 for individuals, $2,400 for married couples and $500 for qualifying dependents.  The payment amount will decrease for annual incomes over $75,000 for individuals and $150,000 for married couples.  Single filers with annual income over $99,000 and married couples over $198,000 are not eligible.

IRS will use 2019 tax returns for people who have already filed them. IRS will use 2018 tax returns for people who have not yet filed 2019 tax returns.  The money will be deposited into the account on the tax return for direct deposit.  If the tax return does not have a direct deposit account, the check will be mailed.  IRS will implement a web-based portal to provide banking information for people to get direct deposit who have not already provided account information on their tax return.

People who receive Social Security benefits, including retirement, disability and derivative benefit, do not need to file a tax return because IRS will use their SSA-1099 or RRB-1099 to make the payment.  However, people receiving Social Security benefits who want the $500 for each dependent will need to file a tax return.  People receiving SSI only will need to file a tax return.

People who have not filed a tax return for 2018 or 2019 can still do so to receive a payment. The payments will be available until the end of 2020 for people who file tax returns.

Although not in the guidance, please note that persons without a Social Security Number, couples with one person who does not have a Social Security Number (except when one person is a veteran), 17-18 year olds, college students age 19-23 are not eligible for the payment and non-resident aliens (a tax term that basically means persons without a green card).  (IR 2020-61, March 30, 2020, updated April 1, 2020.)

COVID-19 loss mitigation options for single family borrowers

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The United States Department of Housing and Urban Development has issued instructions regarding loss mitigation options for covered single family borrowers that are in the CARES Act.

For borrowers experiencing financial hardship because of COVID-19 which impacts their ability to make mortgage payments on time, the mortgagee must offer a forbearance which allows for one or more periods of reduced or suspended payments without specific terms of repayment.  The mortgagee may use any available method for communicating with a borrower regarding forbearance.  The initial forbearance period may be up to 6 months.  If needed, the borrower can request an additional 6 months forbearance period.  The mortgagee must waive all late charges, fees, and penalties as long as the borrower is on a forbearance plan.  Any borrower granted forbearance and is otherwise performing as agreed is not delinquent for purposes of credit reporting.  This provision is effective immediately.

The CARES Act established the COVID-19 National Emergency Standalone Claim.  Borrowers are eligible if the mortgage was current or less than 30 days past due as of March 1, 2020, the borrowers states they can resume making mortgage payments on time, and the property is owner occupied.  If this claim is granted, the borrowers accumulated late fees are waived, and the claim only includes arrearages, consisting of principal, interest, taxes and insurance.  The mortgagee is also automatically granted a 90-day extension to the 6-month deadline for recorded mortgages.  All borrowers who receive a forbearance must be evaluated for the National Emergency Standalone Claim.  This program starts no later than April 30, 2020 but mortgagees can start it sooner.

The mortgagee must evaluate any borrower not brought current by a National Emergency Standalone Claim for other loss mitigation options.

These remedies do not affect the terms of the mortgage.

For Home Equity Conversion Mortgages, upon request of the borrower, the mortgagee must delay submitting a request to call a loan due and payable.  The initial extension period may be up to 6 months.  If needed, an additional 6 month period can be approved by HUD.  The mortgagee must waive all late charges, fees, and penalties as long as the borrower is in an extension period.  For loans that have become automatically due and payable, entered into a deferral period, or become due and payable with HUD approval, the mortgagee may also take an automatic extension for any deadline for foreclosure and claim submission for up to 6 months.  If needed, HUD can approve an additional 6 month extension.  (Mortgagee Letter 2020-06, April 1, 2020.)

COVID-19 CalWORKs Welfare-to-Work guidance

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The California Department of Social Services (CDSS) has issued guidance regarding the impact of COVID-19 on CalWORKs Welfare-to-Work (WTW).

Counties should exercise discretion regarding optional documentation and verification in order to continue providing WTW services and supports.

Counties can issue temporary blanket good cause for not meeting WTW requirements.  This includes all initial engagement activities, all assessments and evaluations, completion or maintenance of a WTW plan and WTW participation.

Sanctioned clients may now have good cause not to participate or who have a cure plan with activities that are no longer available.  For those clients, counties should implement cure plans documenting that the activity that the client failed to do is not available because of COVID-19.  The cure plan can specify an alternative activity such as reviewing orientation materials or conducting job search online.  When assigning another activity is not practical or feasible because of COVID-19, counties may implement cure plans stating the lack of available activities and that the client temporarily has good cause not to participate.

Counties cannot cure all sanctioned participants because of COVID-19. Clients must sign a cure plan.  Counties are encouraged to issue pre-populated sanction sure plans for individuals to sign without solicitation from the client.  Counties should consider telephonic, electronic or mail-in signatures.  For counties that cannot accept electronic or recorded telephonic signatures, counties must enter a case not stating the individual attested to the information provided.

For clients who are in noncompliance but are not yet sanctioned, counties should make all attempts to avoid imposing sanctions by offering other available and appropriate activities, or by applying good cause.

Counties can continue subsidizing wages in the Expanded Subsidized Employment program even when the worksites are closed because of COVID-19.

CalWORKS Work Study subsidies can continue where work hours are reduced, worksites are closed or students are otherwise unable to meet work study obligations because of COVID-19.  For example, the subsidy may continue when students are unable to work because of lack of supportive services, such as when the student’s child care provider is closed because of COVID-19.  The subsidized payment can be made directly to the CalWORKs recipient, or through the employer or third-party payor if they are able to issue subsidized wages to the recipient.  (All County Welfare Directors Letter, March 30, 2020.)

COVID-19 new interim homeless assistance program guidance

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The California Department of Social Services (CDSS) has issued new guidance CalWORKs Homeless Assistance (HA) and COVID-19.  This new guidance supersedes CDSS’ March 19, 2020 All County Welfare Directors Letter for HA only.

Up to 16 days of motel vouchers are available from HA for eligible or apparently eligible CalWORKs participants.  Because of COVID-19, counties may waive the three-day limit to verify homelessness.  Counties may issue benefits in increments of more than one week, up to all 16 days at once.

Families should be granted good cause for not completing daily permanent housing search.

Receiving HA because of a state or federally declared disaster does not count against a client’s once per 12-months limit on HA.  In addition, clients affected by COVID-19 may be eligible for an exception to the once per 12-months limit because of uninhabitability of the home or a medical illness. For example, if a parent needs to isolate themselves because of COVID-19, HA should be granted based on exception because of medical illness.

HA applications are not required to be made in person or to include a face-to-face interview.  Counties can complete the application and have the client electronically sign it.  Counties can also record a verbal attestation over the phone or enter a case note stating the client attested to the information.

Counties can accept sworn statements for not providing paper verification such as hotel receipts or counties can grant good cause for not submitting paper verification.

Although existing guidance requires counties to issue vendor payments when there has been a finding of mismanagement, if there is no feasible way to issue vendor payments because of COVID-19, counties should consider issuing benefits on the client’s EBT card.  (All County Welfare Directors Letter, March 31, 2020.)

COVID-19 PrEP-AP enrollment

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The California Department of Public Health has issued instructions regarding the Pre-Exposure Prophylaxis Assistance Program (PrEP-AP) to minimize exposure to COVID-19 and maintain coverage.  For clients with expiring eligibility or expired eligibility back to March 1, PreP-AP is extending eligibility for 90 days to June 30, 2020.

However, for clients in a Gilead Assistance Program, Gilead is not extending eligibility.  Clients enrolled with expiring eligibility should submit a re-enrollment application with income documentation to Gilead prior to their eligibility ending to avoid a lapse in coverage.

If clients are unable to obtain their medication or submit a re-enrollment application before their eligibility expires, Gilead can provide the pharmacy override on a case-by-case basis.  If Gilead does not allow a medication dispense, PrEP-AP may approve an override on a case-by-case basis.

Clients enrolled in Gilead’s Patience Assistance Program and Copayment Assistance Program can receive up to a 90-day fill of medication as long as there is eligibility throughout the 90 day time period.  Clients in Gilead’s Copayment Assistance Program can only receive a 90 day dispense if their insurance allows for a 90-day prescription fill.  Pharmacies must contact Gilead to get an override code.  This is in effect until April 30, 2020.

Clinical providers are encouraged to consider converting PrEP to virtual if their agency has the capacity.  PrEP-AP can reimburse telemedicine using the same billing code as for an in person visit. Providers are encouraged to reach out to client to inform them that in-person appointments are changing to telemedicine.

Providers are also asked to postpone services that require person-to-person interaction but will maintain access to in-person visits when needed based on the client’s symptoms such as acute HIV or a sexually transmitted infection.  Laboratory testing for people on PrEP with good adherence and no symptoms can usually be postponed for 3 months.  (Management Memorandum 20-08, March 20, 2020.)

COVID-19 ADAP enrollment

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The California Department of Public Health has issued instructions regarding the AIDS Drug Assistance Program (ADAP) to minimize exposure to COVID-19.  For clients with expiring eligibility or expired eligibility back to March 1, ADAP is extending eligibility for 90 days to June 30, 2020.

New or lapsed clients can enroll over the phone.  New or lapsed clients will be required to provide documentation of eligibility.  Workers can email the client so the client can respond with enrollment and supporting documentation.

ADAP will now have early medication refills and has extended the dispense quantity to 90-day fills.  (Management Memorandum 20-06, March 16, 2020.)