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DIVERSIONARY ASSISTANCE PROGRAM

CHAPTER 800 TANF MANUAL

7/22 APPENDIX 1 PAGE 1

DIVERSIONARY ASSISTANCE EXAMPLES

Example 1:

Ms. Elliott applied for diversionary assistance on June 1st for herself and two children. She had been working full time but was laid off on May 24th. She will receive her final paycheck on June 4th in the amount of $403. She also has a part-time job working 15 hours a week at $8 an hour.

Ms. Elliott is requesting assistance in paying off a $1200 medical bill. She is no longer able to make payments on it since she lost her full-time job and has been threatened with court action. Her situation meets the diversionary assistance requirement of a crisis or emergency situation which can be solved by short-term aid.

Because the final check Ms. Elliott will receive is from a terminated source, that income will not be considered in determining her eligibility for diversionary assistance and will not be entered on the employment details screen. (Note: If the amount of the final paycheck is entered, it will be counted in determining eligibility even though it is from a terminated source.) Ms. Elliott has monthly income from her part-time job of $516 ($8 per hour x 15 hours per week x 4.3 = $516). That income is ongoing and will be counted in determining diversionary assistance eligibility.

Ms. Elliott's monthly income of $516 is less than the $966 maximum family income for a family of 3 in a Group II locality and the maximum income case passes the maximum income screen. The Standard of Assistance for her family size is $482, but the case is eligible for only $179 per month based on Ms. Elliott's income. The maximum diversionary assistance amount available to the family is $1500. Ms. Elliott agreed that this amount would help her situation. She needed a minimum of $600 to forestall court action. She decided to proceed with an application for diversionary assistance.

Earned Income

$ 516.00 (on going)

Standard Deduction for 3

-167.00 Sub Total

349.00 20% Reduction $ 69.80 Total Grant Reduction $ 279.20

TANF Payment Amount

$ 179.00 (Group II, SOA for 3 = 482.00;

482.00 - $279.20 = $179.80) Diversionary Assistance Period x 4 months Total Diversionary Assistance Amount $ 716.00

Maximum Diversionary Assistance Amount $1500.00

Applicant Need

$1200.00 (medical bill)

Diversionary Assistance Payment Amount $1200.00

Example 2:

Ms. Ortiz applies for diversionary assistance on November 2nd for herself and her two nieces. She works at a large retail nursery supplying herbs and produce to restaurants and grocery stores in the eastern states. The nursery closes from November 1st to February 28th each year.

TANF Transmittal 74