137.551 Diversion Income Eligibility

PROSPECTIVE DETERMINATION

When determining if a family is eligible for Diversion, the CAO will treat income the same for Diversion as for TANF – and count both earned and unearned income in the prospective determination, see CAH 168.2 . To be eligible for Diversion, a budget group must meet all TANF eligibility requirements, including income eligibility. This means the CAO will count income expected within a Diversion period, for example, from a part-time job, an unearned-income benefit source such as unemployment compensation benefits, etc. See CAH 150 , Income .

EXCEPTION: When determining TANF or Diversion eligibility, the CAO does not count SSI benefits.

WILL THE DIVERSION PAYMENT COVER THE NEEDS?

After determining a budget group is eligible for TANF, the CAO must determine if the amount of a Diversion payment – plus all available supplemental benefits and “countable” income expected within the Diversion period -- can cover needs during the Diversion period. If not, the CAO cannot authorize a Diversion payment.

NOTE: If a Diversion payment cannot cover needs in the Diversion period, the CAO can count expected SSI income to help cover the needs.

WHEN DOES INCOME EXPECTED WITHIN A DIVERSION PERIOD COUNT TOWARD COVERING NEEDS?

The CAO should consider income expected within a Diversion period on a case - by - case basis. Reliable income from an established part-time job, for example, can be counted as helping a Diversion payment meet the family’s need.

G enerally, the CAO will not count “uncertain” income anticipated within the Diversion period as helping to meet the family’s needs. Uncertain income, by definition, may have a dubious arrival date, may come in an unknown amount, or may derive from an unreliable source. The income may be one-of-a-kind, sporadic, or questionable. If the CAO counts this income but it never arrives—or arrives in a smaller amount than anticipated -- the family’s financial crisis likely will not be resolved.

NOTE: Uncertain income expected within a Diversion period may be counted if this income helps make a Diversion payment possible. When counting income anticipated to arrive within the Diversion period as helping to meet the family’s need – the CAO should proceed with caution and count this income if it will make a Diversion payment possible . The CAO should request verification of approximate amount and arrival date of the income.

EXAMPLE: The CAO authorized a September Diversion payment for Mr. Braden, his spouse , and three children to meet needs until Mr. Braden’s job start in early October. The CAO counted his spouse's small monthly earned income from a job cleaning houses as helping to meet the family’s needs during the Diversion period. The CAO did not count Mr. Braden's “uncertain” $500 inheritance from his uncle’s estate, expected sometime within two months.

If the CAO does not count uncertain income within a Diversion period as helping to meet the needs, but it does arrive, these funds are considered as helping to meet the family’s unspoken or unexpected needs. The CAO makes no adjustment for this income.

DOES INCOME ANTICIPATED AFTER THE DIVERSION PERIOD EVER COUNT TO HELP COVER NEEDS?

In most cases, the CAO will not count income anticipated to arrive after the Diversion period. However, in rare situations, the CAO may count this income if it will help resolve the financial need and make a Diversion payment possible. It is important to use discretion in individual cases and require the household to provide verification that the income will arrive timely , and in the amount , needed to help resolve the financial gap in the Diversion period.

EXAMPLE: Ms. Davis and four children need Diversion for October utilities and rent. A Diversion payment only covers utilities. The landlord verifies permission to wait to pay the October rent on November 20, after Ms. Davis receives a one-time retirement check from a previous job, as documented by the former employer. The CAO can authorize the October Diversion payment, now only required to cover utility bills.

COMPUTING THE DIVERSION PAYMENT AMOUNT

When calculating a Diversion payment amount, the CAO does not consider or subtract a budget group's earned or unearned income. A Diversion benefit always equals a full FSA of one, two, or three months, depending on the length of the financial crisis. The Diversion payment amount equals the appropriate FSA for the family size, multiplied by the number of months the Diversion period extends. The county of residence determines the FSA amount. See CAH 168, Family Size Allowance .

EXAMPLE: The CAO determined a three-month Diversion payment will cover a $1,900 need during October, November, and December for the Tabor family of six. To make this determination, the CAO checked Chapter 168, Appendix B, of the Cash Assistance Handbook. The county of residence is in Group 2. A one-month FSA is $670 for a family of six. The Tabors need a three-month FSA, so the CAO multiplied $670 by three, for a Diversion payment of $2,010. This meets the $1,900 need.

EXAMPLE: Mr. and Mrs. Carmel and two children are eligible for a July Diversion payment, which is a full month FSA for four people. The CAO does not subtract Mrs. Carmel’s $150 monthly income from a part-time job.

COUNTING THE DIVERSION PAYMENT FOR OTHER PROGRAMS

A Diversion payment is excluded when determining income and resource eligibility for MA and SNAP benefits (including expedited SNAP).