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.