SR 03-18 Dated 07/03

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the annual July updates to the:

·   NHEP/FAP Standard of Need (SON); and

·   resource deduction figures for Children with Severe Disabilities (CSD).

In addition, this SR releases:

·   related policy clarifications regarding shelter types and the treatment of shelter expenses when paid by local welfare;

·   revised Form 775, Rental Verification Request, revised Form AE0010, Rental Verification Request, and revised Form AE0072, Expected Change Rental Form; and

·   an unrelated policy clarification regarding specified relatives.

BACKGROUND

The annual July update of the SON is mandated by the NH Legislature per RSA 167:7,II, to reflect changes in the cost of living. This year’s SON figures were updated using information obtained from the NH Housing Finance Authority and the IRS, in addition to applying the 2003 Consumer Price Index (CPI) to the 2001 DFA Market Basket Survey and Josiah Bartlett Study results.

The annual July update of the CSD resource deduction figures is mandated by State rules He-W 641.04(e). The increase reflects the 2003 Federal Poverty Income Guidelines published in the Federal Register of February 7, 2003.

POLICY

NHEP/FAP Standard of Need Changes

The annual July update to the NHEP/FAP Standard of Need (SON) affects:

·   NHEP/FAP cases closed or denied due to lump sum income;

·   open NHEP/FAP cases with deemed income; and

·   open NHEP/FAP or NHEP/FAP-related Medicaid cases with deemed income.

The SON is used to determine the period of ineligibility for cases receiving lump sum income, and eligibility and benefit amount for cases with deemed income. The increase in the SON may result in shorter periods of ineligibility for those cases that are currently NHEP/FAP ineligible due to receipt of lump sum income, and in less income being counted as available for those NHEP/FAP cases with deemed income.

The maximum SON equals the Basic Maintenance Needs Allowance (BMNA) plus $310, the weighted average of the maximum shelter payment allowances. The 2003 BMNA and SON are noted below:

2003 BMNA and SON

*For household sizes over 12, calculate the BMNA by adding $67 for each additional person to the basic maintenance payment allowance (BMPA) and divide the result by 0.1351. To obtain the SON, add $310 to the BMNA figure.

Lump Sum Calculations

Individuals who receive lump sum payments are ineligible for assistance for the number of months resulting from dividing the lump sum amount (plus any other monthly income) by the SON. Clients whose cases were closed or denied due to receipt of lump sum income may reapply or request a recalculation due to the increase in the SON. If requested, the District Office must recalculate the client’s period of ineligibility. A new Notice of Decision (NOD) will be generated if the recalculation results in a different period of ineligibility.

Deemed Income Cases

The SON is used for NHEP/FAP deeming from parents, including ineligible alien parents, alien sponsors, and three generation deeming. Due to the increase in the SON, less deemed income is counted as available to the client. HEIGHTS will automatically recalculate benefit amounts for open cases with deemed income during the Mass Change. No District Office action is required.

Clients whose cases were closed or denied due to excess deemed income may reapply or request to have their eligibility redetermined due to the increase in the SON. If requested, the District Office must recalculate the client’s eligibility.

Children with Severe Disabilities (CSD) Resource Deduction Increase

The resources of CSD parents are counted as available in determining categorically needy and medically needy CSD medical assistance eligibility and are treated in accordance with TANF-MA policy on resources (see FAM, Chapter 400, RESOURCES).

CSD resource eligibility for medical assistance is determined by reducing the parents’ total resources by the CSD resource deduction for the appropriate household size and combining the balance with the child’s resources. The CSD resource deduction is based upon 50% of the current federal poverty income guidelines.

CSD RESOURCE DEDUCTION FIGURES

RELATED SHELTER POLICY CLARIFICATIONS

Subsidized Shelter

The NH Housing Finance Authority (NHFA) has provided updated subsidized shelter type information as follows:

·   "Rent Voucher", "Rent Supplement", "HUD Rent Supplement", and "Section 8 Set Aside" no longer exist; and

·   "Section 8" housing is now referred to as the "Housing Choice Voucher Program."

Additionally, clarifications have been made to the descriptions of subsidized housing types to indicate that the assistance group must be receiving shelter assistance from the federal government for the shelter type to be considered subsidized. Shelter assistance from private citizens or organizations, regardless of the organization’s profit or not for profit status, is not considered subsidized assistance; the shelter type is still considered to be unsubsidized.

Form 775, Rental Verification Request, and associated New HEIGHTS Forms AE0010, Rental Verification Request, and AE0072, Expected Change Rental Form, as well as FAM 601, Table A.1, TANF Shelter Allowance, and the FAM Glossary have been updated accordingly.

Treatment of Shelter Expenses Paid by Town or City Welfare

If the town or city welfare pays for the assistance group’s shelter, in full or partially, FSS:

·   must treat this income as a vendor payment and exclude it, for all assistance programs; and

·   must not reduce the amount of the shelter the client is responsible for paying.

EXCEPTIONS:

·   If the town welfare agency states that it intends to pay a client’s rent, or a portion of the rent, on an on-going basis, the shelter cost is reduced by the amount of the local welfare assistance for the specified time period. FSS must then reinstate the correct shelter amount to coincide with the end date of the local welfare assistance to ensure correct benefit issuance.

·   If a Food Stamp applicant indicates receipt of local welfare shelter assistance in the month of application, then the Food Stamp shelter cost for the application month is reduced by the amount of the vendor payment. The TANF shelter cost is entered with no reduction. However, as specified above, unless it is indicated that the vendor payment from the local welfare office will be on-going, the FSS must then reinstate the correct Food Stamp shelter cost for the following month.

FAM 601 Table A:1, has been updated accordingly with new shelter type, Town/City Welfare Pays for Shelter. The Adult Assistance and Food Stamp Manuals will be updated under separate cover.

UNRELATED POLICY CLARIFICATION REGARDNG SPECIFIED RELATIVES

Clarifying text has been added to the definition of "Specified Relative" in the FAM to emphasize that a specified relative is only those individuals who fall within the parameters below:

·   blood and half-blood relatives, including preceding generations to the fourth degree of kinship. Preceding generations to the fourth degree of kinship are denoted by the title of "grand", "great", and "great-great" preceding their relationship status;

·   adoptive parents and their relatives, to the same fourth degree of kinship involving preceding generations as blood relatives;

·   spouses of any persons named above, even after the marriage has been terminated by death or divorce; and

·   the individual’s nephew, niece, and first cousin only. Note: In accordance with federal regulations and state law, degrees of kinship do not apply to nephews, nieces, and cousins when determining if the individual meets the definition of specified relative. Therefore, a specified relative would not include such relations as first cousins once removed, second cousins, or grandnephews, for example.

FORMS REVISIONS

Form 775, Rental Verification Request

Form 775, Rental Verification Request, has been revised to reflect updated shelter type information provided by the NH Housing Finance Authority and to incorporate suggestions from members of the Error Reduction Advisory Team (ERAT), as indicated below:

·   "Rent Voucher", "Rent Supplement", "HUD Rent Supplement" and "Section 8 Set Aside" were deleted as choices on the form;

·   Text referencing "Section 8 Housing" was replaced with "Housing Choice Voucher Program";

·   the entire sentence, "If rent is paid under the Rent Voucher Program what is the "excess" rent (amount of rent charged over the fair market value) per month?" was eliminated;

·   instructions were added to the back of the form for the Housing Authority Official/landlord;

·   two questions regarding the current status of the rent, and, if in arrearage, by how much, were added;

·   a space for the Housing Authority Official/landlord to print his or her name and telephone number was added; and

·   minor formatting enhancements were made to make the form easier to read.

Revised Form 775 is attached to this SR for reference but District Offices will continue to use the existing supply of the forms until the stock is depleted. At that time, the revised forms may be ordered following regular ordering procedures.

Form AE0010, Rental Verification Request, and Form AE0072, Expected Change Rental Form

New HEIGHTS-generated Forms AE0010 and AE0072 have been revised to reflect:

·   the changes described above in the section regarding Form 775; and

·   enhancements to the forms suggested by members of the ERAT.

Additionally:

·   the sequence of text was revised and sections grouped together so that questions on the New HEIGHTS-generated forms are not on separate pages and inadvertently overlooked; and

·   headers and footers were changed to reflect standard letter format.

The changes to the New HEIGHTS-generated forms will be effective July 1, 2003.

SYSTEMS PROCEDURES AND IMPLEMENTATION

New HEIGHTS will update all reference tables with the new figures effective July 1, 2003, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

Clients Denied or Closed Prior to 7/1/03 Due to Deemed Income or Receipt of Lump Sum

No District Office action is necessary unless a client requests to have their eligibility redetermined or their period of ineligibility recalculated. If a client requests this recalculation, the current SON released by this SR and effective July 1, 2003 will be automatically applied during the recalculation. If the client’s eligibility for assistance or length of ineligibility changes during the recalculation, a new NOD will be generated.

Open Cases With Deemed Income

New HEIGHTS will run an initial query to identify cases with deemed income whose grant amounts or spenddowns will change during the mass change. The cases identified will be recomputed during the daily production run the evening of June 30, 2003. Cases with deemed income whose grant amounts or spenddowns change will receive the appropriate message reflecting the new benefit level.

Because less deemed income will be counted as available, a small number of medical assistance only cases with deemed income, and deemed income cases currently eligible for NHEP/FAP cash assistance but not actually receiving the grant because the amount is under $10 per month, may now become eligible for a cash grant for the first time.

The latter cases that do not have sufficient Benefit Issuance information during the daily production run of June 30, will appear on the MC Exception Report (NMC550RA) with the Reason for Exception listed as "No BI Payment Information." District Offices must rerun eligibility and supply the missing Benefit Issuance information when that screen appears in the driver flow.

NOTE: These cases should be contacted prior to confirmation to be informed of the availability of cash assistance, including an explanation of appropriate NHEP/FAP cash program policies (e.g., work program requirements and the 60-month time limit on receipt of cash assistance). If the client agrees to receipt of cash assistance, identify whether the client wishes EBT or EFT as the cash benefit issuance type and explain the processes required to establish either issuance type. When the benefit issuance type has been chosen and entered, confirm the case. $10 minimum grant cases confirmed after the mass change will receive a standard opening message from New HEIGHTS. District Offices are not required to refer these cases to the NHEP team, as New HEIGHTS will have already referred mandatory NHEP participants to the NHEP team.

Procedures for CSD Cases

New HEIGHTS will update all reference tables with the new CSD Resource Deduction figures

effective July 1, 2003, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

CLIENT NOTICE

Assistance groups experiencing a change in eligibility due to the mass change will receive the following text in the "Explanation" section of the Notice of Decision (NOD):

ON JULY 1, 2003, THE NHEP/FAP STANDARD OF NEED, THE RESOURCE DEDUCTION FOR FAMILIES WITH A SEVERELY DISABLED CHILD, AND THE CHILD CARE INCOME LIMITS INCREASED.

POST MASS CHANGE REPORTS

The two reports described below are produced on a daily basis. These reports will be available on CADocView shortly after July 1, 2003.

NMC540RA: AG’s Affected by MC

This report lists all cases upon which the Mass Change ran successfully through confirmation. It contains the following information: D.O., Worker Name, Client Name, and Case Number.

NMC550RA: MC Exception Report

This report lists cases that were selected for computation during the Mass Change, but were not confirmed due to some discrepancy in data. These cases require further District Office action. It contains the following information: D.O., Worker Name, Client Name, Case Number, Reason for Exception, and Mass Change Type.

POLICY MANUAL REVISIONS

Revised Family Assistance Manual Topics

PART 601, Table A   TANF Basic Maintenance Needs Allowance and Maximum Standard of Need

PART 601, Table A:1   TANF Shelter Allowance

PART 601, Table D   Children with Severe Disabilities Resource Deduction

Glossary    H-Words

Glossary    S-Words

FORMS POSTING INSTRUCTIONS

IMPLEMENTATION

The changes identified in this SR will be implemented July 1, 2003, and will apply to any new cases processed on or after that date. Tables and Standards sections for benefits prior to July 1, 2003 should be retained for reference for retroactive benefits until they are no longer needed.

Forms AE0010, Rental Verification Request, and AE0072, Expected Change Rental Form, are attached to this SR for reference and will be generated with the revised text effective July 1, 2003.

District Offices will continue to use existing supplies of paper Form 775, Rental Verification Request, until stocks are depleted. At that time, the revised versions of Form 775 released by this SR may be ordered in accordance with normal ordering procedures. No Certificate of Destruction is included in this SR.

CLIENT NOTIFICATION

Besides the regular client notices referenced above, clients will be notified about the updates in the SON and CSD Resource Deduction as needed at the next case action, or at client request.

TRAINING

No training is planned or needed due to the procedural nature of this SR.

DISPOSITION

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

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, effective August 1, 2003.

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

DFA/DMS:s