SR 02-32 Dated 10/02

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

BACKGROUND

On May 13, 2002 President George W. Bush signed into law the Farm Security and Rural Investment Act of 2002, Federal Food Stamp Program Reauthorization (P.L. 107-171), commonly referred to as the Farm Bill. Among other provisions, the law reauthorizes the Food Stamp Program for 5 years and:

·   strengthens the nutrition safety net by:

-   restoring eligibility to legal immigrants receiving disability benefits;

-   increasing the standard deduction for larger households; and

-   raising the asset limit from $2,000 to $3,000 for households with a disabled member; and

·   simplifies program administration by giving states substantial new flexibility to align food stamp rules with other assistance programs.

SUMMARY

This SR releases the following changes to the Food Stamp Program based upon several provisions in the 2002 Farm Bill:

·   vendor payments paid to a third party for educational living expenses of an individual and payments made to Volunteers in Service to America (VISTA) will now be excluded when determining eligibility for the Food Stamp Program;

·   the monthly maximum Employment and Training (E&T) transportation reimbursement rate has increased from $25 to $40;

·   the resource limit for households with a member who is disabled has increased from $2,000 to $3,000;

·   regardless of their date of entry, qualified aliens who are receiving disability benefits will be eligible for food stamps if they meet all other Food Stamp Program eligibility requirements. A chart summarizing alien eligibility is attached to this SR for reference;

·   households with unoccupied real property are now allowed a 6-month disposal period during which the equity value of otherwise countable property will be excluded from the Food Stamp resource test as long as a good faith effort is being made to sell the property for a fair price; and

·   reporting requirements for households certified for 6 months have eased. All households with 6-month certification periods, not just households with earned income, are required to report only those changes that cause the household’s gross monthly income to exceed 130% of the federal poverty income level for the household size. At applications and recertifications Family Services Specialists (FSS) will provide clients with new Form 215, Reporting Requirements Handout, to indicate the reporting requirements for the household. See attached.

In addition, this SR releases an unrelated technical correction to FAM Chapter 400 and the following policy clarifications regarding:

·   "when a change occurs." When a change occurs, for all assistance programs, is the date the client actually experiences the change, however FSS must continue to act on all voluntarily reported or discovered changes;

·   the earnings of children. Earnings of children under 18 are now excluded only if the child is a full-time student and living with a natural, adoptive, or step-parent or under the parental control of a household member other than a parent;

·   the treatment of SSI income when it has been reduced due to non-compliance; and

·   how to determine the household’s eligibility for a standard utility allowance when the household intends to apply, has applied, or is a recipient of the Low-Income Home Energy Assistance Program (LIHEAP).

POLICY

The following chart summarizes the Food Stamp Program changes effective October 1, 2002.

POLICY CLARIFICATION

Earnings of Children

Earnings of children under 18 are now excluded only if the child is a full-time student and living with a natural, adoptive, or step-parent or under the parental control of a household member other than a parent. This policy was interpreted incorrectly during the release of SR 01-12, dated July 2001.

Treatment of SSI Income When Reduced Due to Non-Compliance

FSM 511, COMMON TYPES OF INCOME: ASSISTANCE PAYMENTS, indicates that money withheld from an assistance payment because of a penalty for failure to comply with means-tested programs such as SSI, must be counted in full, as if no recoupment had been applied, when determining the household’s Food Stamp benefit allotment. Federal Nutrition Services (FNS) has provided a clarification regarding this policy: Although SSI is a means-tested program, the reduced (or net) SSI benefits, not the full amount, are to be used to determine food stamp benefit allotments if SSI benefits have been reduced due to non-compliance. The section was revised accordingly.

Low-Income Home Energy Assistance Program (LIHEAP) and SUA Eligibility

Households that intend to apply for LIHEAP, are applicants of LIHEAP, or are recipients of LIHEAP are eligible for the full Heat and Utility Standard Utility Allowance (SUA) for the length of the household’s certification period. At each recertification, this issue must be re-explored.

Note: Once the client indicates an intent to apply for LIHEAP, the client is not required to report LIHEAP approval or denial. Additionally, if the client indicates an intent to apply for LIHEAP, no further action is necessary by the FSS other than to enter a positive response regarding the client’s intent into the appropriate field on New HEIGHTS. There is no requirement that the client provide proof of LIHEAP receipt; the client is eligible for the full heat and utility SUA for the length of the household’s certification period, regardless.

UNRELATED TECHNICAL CORRECTIONS

Minor editorial corrections were made to FSM 409, COMMON TYPES OF RESOURCES: TRUSTS (RESOURCES), and a link was corrected to align it with the necessary section in the Food Stamp Manual.

NEW HEIGHTS CHANGES AND PROCEDURES

The policy changes released in this SR will be programmed into New HEIGHTS in September and will be used to calculate food stamp eligibility and benefits beginning October 1, 2002.

System Changes for Treatment of VISTA Income

The drop-down for "Type" on the "Employment Details" screen has been modified so that only one entry, "VISTA", now appears. The previous entries – VISTA-TANF, VISTA-FS, and VISTA-EXCLUDED – have been removed.

System Changes for the Increase in the Resource Limit

Individuals meeting the disability criteria for target population (see FSM 229.03, Definition of Disabled) will receive a $3,000 resource limit effective October 1, 2002. New HEIGHTS will automatically apply the new resource limit to all target population cases during the Food Stamp Mass Change run scheduled for September 28, 2002. Cases that do not go through the Mass Change will have the resource limit updated the next time eligibility is run.

System Procedures for Real Property Disposal Period

Follow the steps below to implement the new provision that Food Stamp households with unoccupied real property are now entitled to a disposal period during which the equity value of otherwise countable property will be excluded from the resource test so long as a good faith effort is being made to sell the property for a fair price. The procedures are exactly the same as should be used to establish a disposal period for applicants or recipients of the adult category programs:

A. Enter all required information on the "Property Details" screen.

B. On the "Property Information" screen, answer the questions regarding "Good Faith Effort" and "For Sale Now" as "Yes" and verify both. Note that the Begin and End date fields become mandatory.

C. Enter the current date as the Begin Date and current + 6 months as the End Date.

D. Enter a Review Date that is no later than the End Date (in most cases, the Review Date will be the same as the End Date of the extension period).

i. Note: though this field is not mandatory, it must be completed in order for a batch alert, "Unoccupied Real Property Review Due," to be generated by the NCM100 job 20 days prior to the Review Date.

ii. NCM100 will also generate "Unoccupied Real Property Review Past Due" the day after the Review Date, so once a Review is completed this field needs to be adjusted by the worker (i.e., deleted if the Review is completed or changed if an extension is granted). Both alerts are deleted the following day.

E. Hit Continue. When SFU/EDBC is run, the equity value of the property will be excluded in the Resource test for the duration of the extension period. If no changes are made prior to the End Date, the next time eligibility is run after the End Date the value of the property will be counted.

To grant an extension, return to the "Property Information" screen, change the Begin and End Dates, enter a new Review Date, and run SFU/EDBC.

IMPORTANT NOTE: While Supervisor approval is required for any 3-month extensions past the initial 6-month Disposal Period, there is no mandatory Supervisor Approval field for this process. This approval must be obtained and documented in the case record and in Case Comments, prior to entering the extension into New HEIGHTS.

System Changes for Earnings of Children

New HEIGHTS will automatically recalculate all cases with earned income from children to exclude only those earnings from a child under 18 who is a full-time student and living with a natural, adoptive, or step-parent, or under the parental control of a household member other than a parent.

MANUAL PAGE REVISIONS

Revised Food Stamp Manual Topics

Section 145.01  Reporting Requirements

Section 145.03  What to Report

Section 145.07  When to Report

Section 145.09  Notifying Individuals of Reporting Requirements

PART 147  ACTIONS ON CHANGES

PART 151  CHANGES THAT INCREASE BENEFITS

PART 153  CHANGES THAT DECREASE BENEFITS

Section 305.09  Determining Qualified Alien Status

Section 305.13  Qualified Aliens Eligible Without Restriction

Section 305.17  Qualified Aliens with Restricted Eligibility Based on Date of Entry into the U.S.

PART 403  RESOURCE LIMITS

PART 409  COMMON TYPES OF RESOURCES: TRUSTS (RESOURCES)

PART 409  COMMON TYPES OF RESOURCES: REAL PROPERTY

PART 511  COMMON TYPES OF INCOME: ASSISTANCE PAYMENTS

PART 511  COMMON TYPES OF INCOME: EARNINGS OF CHILDREN

PART 511  COMMON TYPES OF INCOME: VENDOR PAYMENTS

PART 511   COMMON TYPES OF INCOME: VOLUNTEERS IN SERVICE TO AMERICA (VISTA)

Section 603.09  Other Allowable Deductions: Utility Standards

Section 621.01  Determine the Overpayment or Overissuance

Section 819.01  Support Services for Food Stamp Job Search

Revised Family Assistance Manual Topics

Section 621.01  Determine the Overpayment or Overissuance

FORMS REVISIONS

Form 215, Reporting Requirements Handout

New Form 215, Reporting Requirements Handout, is a ½-page, double-sided document used to inform clients about the reporting requirements for DFA programs. Provide Form 215 to all clients, regardless of the program of assistance requested, at each eligibility interview when notifying the individual of:

·   the requirement to report changes;

·   what changes must be reported;

·   how to report changes; and

·   when to report changes.

Food Stamp 130% Reporting Requirements Poster

This SR also releases the new Food Stamp 130% Reporting Requirements Poster that is updated annually in October. When the posters are received, display them in all interview rooms as well as the District Office lobby.

Spanish versions of both documents will be available shortly and will be released under separate cover.

Several additional forms will be revised to incorporate the changes released in this SR. The revised forms will be released under separate cover at a later date.

IMPLEMENTATION

All policies released by this SR are effective beginning October 1, 2002.

Upon receipt of the new versions of the Food Stamp Reporting Requirements Poster and Form 215:

·   replace the Food Stamp 130% Reporting Requirements Poster dated 02/2002 with the current version dated 10/02; and

·   begin distributing new Form 215 to all clients at each eligibility interview.

CLIENT NOTIFICATION

Households experiencing a change in food stamp benefits due to changes explained in this SR and in SR 02-25 dated 10/02, will receive a standard New HEIGHTS Notice of Decision (NOD). The following message will also appear in the "Explanations" section of the NOD:

On October 1, 2002, some changes happened in the Food Stamp Program. The income limit is now higher. Maximum food stamp benefit levels went up. We also changed how we figure shelter costs for households that pay for heat or utilities. Fixed deductions have been set for utility costs. If you were splitting utility costs, you will now get the full deduction amount rather than a share. Larger households will get a bigger general deduction. Households with a disabled member can now have up to $3000 in resources.

In addition:

·   clients will be advised of the new reporting requirements during application, recertification, and at request;

·   interview rooms will be posted with the Revised Food Stamp 130% Reporting Requirements Poster (attached for reference); and

·   clients will also be provided with Form 215, the supplemental reporting requirement sheet (also attached for reference).

Clients will be notified of the additional policy changes at application, recertification, as needed, or when requested.

TRAINING

A remote training to review the changes described in this SR as well as the changes released by SR 02-25, dated October 2002, was held on Thursday September 19, 2002.

POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.state.nh.us/DHHS/DFA/LIBRARY/Manual/A1.htm, effective November 1, 2002.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Food Stamp and Family Assistance Manuals.

DFA/JBV:s