Page 1

BAM 420 1 of 11 FIP/SDA RESTRICTED PAYMENTS BPB 2020-033 10-1-2020

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

DEPARTMENT POLICY FIP and SDA In some circumstances benefit payments can, or must, be restricted to someone other than the program group. This involves a protective payee or mandatory vendor payments. A protective payee is a person/agency selected to be responsible for receiving and managing the cash assistance on behalf of the group as a third party. Mandatory vendor payments are shelter payments made by Michigan Department of Health and Human Services (MDHHS), without the client's request, directly to the group's landlord, mortgage or land contract holder. Mandatory vendoring can also include heat and electric payments to a utility company. Restricted payments are required in any of the following circum- stances: • Court-ordered shelter arrearage collection. • Third-party resource disqualification. • Minor parent. • Substance abuse. • Money mismanagement. • A child(ren) receiving FIP has a legal guardian. • Eviction or threatened eviction. Note: Restricted payments apply to only a current eviction or threatened eviction. Third-party payments, not mandatory vendoring, are required if the local office has been informed that the housing unit fails to meet local housing codes. The protective payee should assist the family to locate housing which meets the codes. Restricted payments are a local office option when the grantee has demonstrated a need for assistance in handling benefit payments but does not meet any of the circumstances above; see “Demon- strated Need For Money Management Assistance” in this item. Electronic Benefit Transfer (EBT) EBT allows clients to receive cash benefits (FIP & SDA) electroni- cally. Protective payees are issued a Bridge Card for the client’s