Page 42

Iowa LIHEAP Policy and Procedures Manual 14.00 Change of LIHEAP Customer Status

Effective 09/01/2023

Page | 36

14.00 CHANGE OF LIHEAP CUSTOMER STATUS

The assistance award determined at the time of approval shall be subject to review and availability of federal funds. Changes in the household’s circumstances (i.e., the LIHEAP customer moved or the vendor account closed) after approval of their application will not affect the assistance award amount.

Once a LIHEAP application has been approved, the household remains eligible for ECIP Crisis Assistance even if there is a change in the household members between the date of the LIHEAP application and the crisis need. The household does not need to be reverified for income. Anyone who moves out of a household that has already been approved for LIHEAP, and who then wants to apply for ECIP, must be treated as a new household, and income must be reverified.

Below are common scenarios and how to proceed.

14.10 Prior to LIHEAP Payment being sent to Vendor If an approved household moves prior to the vendor receiving the payment, the benefit amount can be used to pay any remaining balance with that vendor. Any excess funds should be handled as indicated below. ● If a new vendor does not exist, the remaining funds should be sent directly to the customer. ● If a new vendor does exist, the remaining funds should be forwarded to that vendor and a Vendor Agreement established if currently there is none.

Should the member of a household of one pass away (deceased) prior to the LIHEAP payment being sent:

● If a balance is owed on the account, send the payment to the vendor. Any remaining funds after the balance is paid, are to be returned to the CAA. ● If no balance is owed on the account, do not send payment to the vendor. Make a note and close the application. Roll the funds back into the Regular Assistance line item.

14.20 After LIHEAP Payment is sent to Vendor Sometimes, a household status changes after the LIHEAP payment is sent to the vendor. Situations that can lead to vendor refunds: ● LIHEAP customer moves to another energy vendor’s service area ● LIHEAP customer exercises their option to change vendors ● LIHEAP customer passes away, resulting in a household size of zero ● LIHEAP customer is determined to have been ineligible for the benefit or some portion thereof ● The incorrect energy vendor received the LIHEAP funds ● An energy vendor stopped providing service to a LIHEAP customer with a credit remaining on the account

Agencies have 45 calendar days after the receipt of a vendor refund, to attempt to locate the LIHEAP customer. The agency should make a reasonable effort to contact the LIHEAP customer, which must be documented. When a LIHEAP customer’s status changes, proceed as follows:

● Household Moved or Utility Account Closed o If the payment can be applied to the new vendor (vendor must participate in the Iowa LIHEAP program), unused funds (from any program year, because the funds are still obligated to the CAA) are to be forwarded to the new vendor (or customer, if the agency does not have an agreement with the vendor), within 30 calendar days, following the 45- calendar day period of attempting to locate the customer as noted above. o If the new vendor cannot be identified or the new vendor does not participate in the Iowa LIHEAP program (e.g., the household moved out of state), the funds should be sent to the household as a direct payment (even if their new address is out of state).