Household responsibility to report changes in circumstances.

(1) Households certified to receive food stamps must report the following changes:

(i) changes in the sources of income, or changes in the amount of gross monthly earned income of more than $100, gross monthly unearned income from private sources of more than $100 or gross monthly unearned income from public sources of more than $25. This requirement does not include changes in the public assistance grant;

(ii) all changes in household composition;

(iii) changes in residence and any resulting changes in shelter costs;

(iv) the acquisition of a licensed vehicle;

(v) when cash on hand, stocks, bonds, and money in a bank account or savings institution reach or exceed the appropriate allowable resource limit as set forth in section 387.9(b)(1) of this Part; and

(vi) actual utility expenses claimed by a household if the source has changed or the amount has changed by more than $25.

(2) Households certified to receive food stamps must report changes within 10 days of the date the change becomes known to the household.

(3) Households applying for food stamps must report all changes related to its eligibility and benefits at the certification interview. Changes, as set forth in paragraph (1) of this subdivision, which occur after the interview but before the date of the notice of eligibility, must be reported by the household within 10 days of the date of the notice of eligibility.

(4) Households subject to six-month reporting rules are not required to submit any reports of changes other than changes in monthly gross income that exceed 130 percent of the monthly Federal poverty income guidelines for their household size except as otherwise set forth in this paragraph. Households subject to six-month reporting rules with certification periods of seven full months or greater must submit a periodic report for the most recent six-month period. Households with able bodies adults without dependences (ABAWDs) who are subject to six-month reporting rules as set forth in paragraph (d)(4) of this section must report as required by the social services district to meet ABAWD requirements.

(5) Changes reported over the telephone by non-six-month reporting households or in person by all food stamp households shall be acted upon in the same manner as those reported on the State-prescribed change report form. A supply of these report forms shall be provided to the applicant/recipient of food stamps at initial certification and at recertification interviews.

(6) Prompt action shall be taken on all reported changes to determine the effect on the household's eligibility and food stamp allotment. All reported changes shall be documented in the case file according to the date reported.

(i) For changes that result in an increase in a household's benefits, other than changes described in subparagraph (ii) of this paragraph, the social services district must make the change effective no later than the first allotment issued 10 days after the date the change was reported to the social services district.

(ii) For changes that result in an increase in a household's benefits due to the addition of a new household member who is not a member of another certified household, or due to a decrease of $50 or more in a household's gross monthly income, the social services district must make the change effective no later than the first allotment issued 10 days after the date the change was reported to the social services district. In no event can the changes take effect any later than the month following the month in which the change is reported.

(iii) All changes, which result in an increase in a household' s benefits, shall be verified according to the requirements set forth in this Part prior to taking action on these changes. The household shall be allowed 10 days from the date the change is reported to provide the required verification. The time frames for issuing the benefit shall run from the date the change was reported, not from the date of verification. Should the household fail to provide the required verification within 10 days after the change is reported but does provide verification at a later date, then the time frames shall run from the date verification is provided rather than from the date the change is reported. When the local department fails to take action on a change which increases a household's benefit within the time limits specified above, all lost benefits shall be restored to the household.

(iv) The local department shall act upon changes that decrease a household's benefit level or make a household ineligible to participate in the food stamp program no later than the allotment for the month following the month in which the notice of adverse action period has expired, provided a fair hearing and continuation of benefits have not been requested. Verification of changes that decrease benefit levels must be obtained prior to recertification except as specified for cases subject to six-month reporting rules in subdivision (d) of this section.

(v) Local departments shall file a claim against these households in accordance with section 387.19 of this Part which received benefits to which they were not entitled because the household failed to report a required change in circumstances as detailed above. If the discovery is made within the certification period, the household is entitled to a notice of adverse action if the household's benefits are reduced.

(7) Changes in medical expenses discovered from a source other than the household and which require contact with the household for verification purposes must not be acted upon until the household voluntarily reports the change or is recertified.