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' DIVERSIONARY ASSISTANCE PROGRAM CHAPTER 800 TANF MA NUA L 7/22 APPENDIX 1 PAGE 5

Example 6:

Mrs. Noel applied for diversionary assistance on December 3rd for herself and four children. She has been employed by the same company for three years, working 30 hours per week, but has just received notification that all employees would be cut back to 18 hours per week at least until February. The employer hopes to return all employees to their regular hours and pay at that time. Mrs. Noel makes $8 an hour and received her last full paycheck on November 28th in the amount of $240.

Ms. Noel is concerned that she will be unable to make her mortgage payments for December and January, and possibly February, and still keep up with her other bills. Ms. Noel has been purchasing her Habitat for Humanity Home for three years. Her mortgage payment of $650 per month is due on the 15th.

Mrs. Noel's income for December will be $619.20 ($8 per hour x 18 hours per week x 4.3 = $619.20) which is less than the $1,361 maximum family income for a family of 5 in a Group II agency. The case passes the maximum income screening.

Her situation meets the diversionary assistance requirement of a crisis or emergency situation which can be solved by short-term aid, and she meets TANF income and other eligibility criteria.

The standard of assistance for a family of 5 in a Group II locality is $681 but the case is eligible for only $295 per month based on Mrs. Noel's income. The total diversionary assistance amount available to the family is $1,500. Mrs. Noel decided to rely on her family for help with her mortgage for December and January. She does not want to jeopardize her TANF eligibility in case her employer has to lay off employees in the future.

Earned Income Standard Deduction for 5 Sub Total 20% Reduction Total Grant Reduction $619.20 -205.00 $414.20 - 82.84 $385.36 (ongoing income)

TANF Payment Amount

$ 295.00 (Group II, SOA for 5 = $681; $681-$385.36 = $295.64) Diversionary Assistance Period Total Diversionary Assistance Amount x 4 $1,180.00 months Maximum Diversionary Assistance Amount $1,500.00

Applicant Need $1,950.00 (mortgage - $650 per month x 3 months)

Diversionary Assistance Payment Amount None, based on client's decision.

TANF Transmittal 74