Prompt action shall be taken on all reported changes to determine the effect on the household's eligibility and food stamp allotment.

(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.