When a household's eligibility and opportunity to participate cannot be determined within 30 days of the filing date of the application, the following actions shall be taken:

(i) The cause of the delay shall be determined.

(a) The cause of the delay shall be considered the household's fault if the household has failed to complete the application process and the local district has taken the following actions to assist the household:

(1) offered to assist or has assisted the applicant in completing the application if the application form is incomplete;

(2) informed the household of the need to register for work when any member who is required to register has not done so and has given the household at least 10 days from the date of notification within which to register;

(3) assisted the household in obtaining the required verification and documentation and allowed the household at least 10 days from the date of the initial request to provide such documentation; and

(4) attempted to reschedule the interview as required in section 387.7 of this Part if the household has failed to appear at the initial interview.

(b) Delays that are the fault of the local department, including but not limited to those cases where the local district failed to take the actions to assist the household described in clause ( a ) of this subparagraph.

(ii) If by the 30th day, no further action can be taken on an application due to the fault of the household, a notice of denial must be sent to the household. However, if the household takes the required action within 60 days from the date the application was originally filed, the case must be processed without requiring a new application. If the household wishes to have the application processed during the second 30-day period, the notice of denial may include a request that the household report all changes in circumstances since the application was filed. After the notice of denial is sent, no further action by the local district is required if the household fails to take the required action within 60 days of the application filing date. If the household was at fault for the delay in the first 30-day period, but is found to be eligible during the second 30-day period, prorated benefits must be provided to the household from the date the necessary verification was provided.

(iii) If a delay in the initial 30-day period is the fault of the local district, the household shall be notified by the 30th day after the application filing date that the application is being held and the household shall be notified of any further action it must take to complete the application. If the household is found to be eligible during the second 30-day period, prorated benefits must be provided from the date of application. However, if the household is found to be ineligible during the second 30-day period, the application shall be denied.

(iv) For delays continuing 60 days, the following applies:

(a) When the social services district is at fault for not completing the application process by the end of the second 30-day period, it must continue to process the application until an eligibility decision is reached. If the household is determined to be eligible and the social services district was at fault for the delay in the initial 30 days, the household must receive benefits retroactive to the day of application. However, if the initial 30-day delay was the household's fault, the household must receive benefits retroactively to the date final verification of all required eligibility factors was received by the social services district. The original application may be used to process the application in the months following the 60-day period, or the household may be required to file a new application.

(b) When a household is at fault for not completing the application process by the end of the second 30-day period, the application must be denied. The household is not entitled to any lost benefits, even if the delay in the initial 30 days was the fault of the social services district.