IM-3 01/03/00 COLLATERAL CONTACT FOR ZERO INCOME HOUSEHOLDS
SUBJECT: |
COLLATERAL CONTACT FOR ZERO INCOME HOUSEHOLDS
FOOD STAMP MANUAL REVISION #1
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DISCUSSION: |
Effective immediately, the requirement to contact a collateral for Food Stamp households reporting no gross income or income so low it places the person at zero income is eliminated. For all households, continue contacting collaterals when circumstances are questionable or information is inconsistent. |
NECESSARY ACTION: |
Distribution #3 |
payments for a prior month and retroactive
payments for a current month that are not anticipated to be received in
the budget month.
3. AFDC/FS Household Becomes Ineligible for AFDC If a change is reported resulting in AFDC ineligibility, base the FS issuance on the actual AFDC received in the month following the change. EXAMPLE: If the change that occurred in April was not reported early enough in April to stop the May AFDC grant, the determination of the May FS issuance will include the May AFDC grant. When at a later date the AFDC overpayment is recouped, the FS budget will reflect only the AFDC actually received (i.e. less the AFDC being recouped).
Pay special attention to households claiming an income so low that a change is likely to occur in order for the household to continue functioning. If a household claims a low income in comparison to family size for an extended period, it may indicate an inconsistency. Examine household circumstances thoroughly. However, a household with stable income, but low because of fixed expenditures, and that can be expected to maintain its level of existence for an extended period of time, does not necessarily constitute an inconsistency. When a household reports income deductions near to or exceeding income, consider the household's expenses inconsistent with its reported income and resources. Do not certify a household with an application containing unclear, incomplete, or inconsistent information until questionable items have been clarified and resolved. If it appears that the household is not
declaring all income or is inflating expenses, take appropriate action
to determine the facts and prevent overissuance. Contact collaterals
whenever it appears that this action is likely to help clarify the situation.
Explore and establish past management.
1115.090.05 Zero
Income Households
For households reporting no gross income, or income so low it places the household at zero income level, verify factors affecting eligibility and basis of issuance so a firm determination can be made that the household is or is not eligible. Approval of the application can be made pending receipt of this information if the household's 1115-64 present management can be explained in terms of the income reported. If the household claims no gross income or zero net income for an extended period, comparison of family size, stability of income situation, and expenditures indicate whether the household can continue to function at this level. NOTE: This does not apply
to households eligible for expedited service that apply after the 15th
of the month.
1115.095.00 INCOME Eligibility Limits FS households must meet an income eligibility limit to be eligible. This income eligibility limit is based on federal income poverty guidelines. Households meeting a net income eligibility limit must have income equal to or lower than 100 percent of federal income poverty guidelines for the household size. Households that must meet a gross income eligibility limit must have income equal to or lower than 130 percent of federal income poverty guidelines for the household size. Income Limit Eligibility: 1. Households containing an elderly or disabled member must meet the net income eligibility limit. This is based on net adjusted monthly income (gross income minus farm loss and the allowable income and expense deductions). The household's net adjusted monthly income must be compared to the net monthly income eligibility limit for the appropriate household size. If the household's net adjusted monthly income is equal to or less than the net monthly income eligibility limit for the household size, the household meets this requirement and is eligible for FS. If the household does not meet this requirement, reject the application or close the case. 2. Households that do not contain an elderly or disabled member must meet both the gross income eligibility limit and the net income eligibility limit. Determine gross income by adding the total monthly earned income and the total monthly unearned income of all household members and subtracting any income exclusions, then deducting the farm loss. Compare the gross monthly income of the household to the gross monthly income eligibility limit for the appropriate household size. If the household's gross monthly income is equal to or less than the gross monthly income eligibility limit, compare the household's net adjusted monthly income to the net monthly income eligibility limit. If the household's gross monthly income is greater than the gross monthly income eligibility limit, reject the application or close the case.
Determine the net adjusted monthly income by subtracting allowable income and expense deductions from the gross monthly income of the household. Compare this net adjusted monthly income to the net monthly income eligibility limit for the appropriate household size. If the household's net adjusted monthly income is equal to or less than the net monthly income eligibility limit and the household has met the gross income eligibility limit, the household meets the income eligibility limit requirement and is eligible. If the household's net adjusted monthly income is greater than the net monthly income eligibility limit, reject the application or the close the case. 3. Migrant or seasonal farm worker households considered to be destitute and eligible for expedited services must meet the appropriate income eligibility limit. If the household contains an elderly or disabled member, the household must meet the net income eligibility limit. If the household does not contain an elderly or disabled member, the household must meet both the gross income eligibility limit and the net. 4. If a household contains a member who is 59 years old on the date of application, but who will become 60 before the end of the month of application, the household is required to meet the net income eligibility limit but not the gross income eligibility limit. 5. Categorically eligible households can receive benefits at a higher maximum income than other households. If a categorically eligible household's income exceeds the regular issuance tables, refer to Certification Procedures - Categorically Eligible Households.
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