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• DIVERSIONARY ASSISTANCE PROGRAM

CHAPTER 800 TANF MANUAL

7/22 APPENDIX 1 PAGE 2

Ms. Ortiz works between 25 and 40 hours a week and earns $8 per hour. She worked 30 hours the last week in October and will receive her final paycheck on November 9th. That paycheck for gross income of $240, will be the only income, earned or unearned, that she and the children will receive for November. Ms. Ortiz states that she is optimistic that she will find a job in the next week or so, but does not have enough money to pay her November car payment of $550, her rent of $1050 and her utility bill, including arrears, of $350.

Ms. Ortiz's situation meets the diversionary assistance requirement of a crisis situation which can be solved by short-term aid, and she meets TANF income and other eligibility criteria.

While Ms. Ortiz has $240 in earned income for November, the income is not counted in determining the amount of assistance since it is from a terminated source. The income is not entered on the employment details screen. Her needs total $1,950 which exceeds the maximum diversionary assistance payment of $1,928. The diversionary assistance granted is the maximum payment of $1,928. Ms. Ortiz's sister agrees to give her $22 to combine with the maximum diversionary amount so that the crisis situation can be resolved.

The household has no countable income.

TANF Payment Amount

$ 482.00 (Group II, SOA for 3 = $482) Diversionary Assistance Period x 4 months

Total Diversionary Assistance Amount $ 1,928.00

Applicant Need

$1,950.00 ($550.00 car payment + $1050.00

rent + $350.00 utility bill)

Diversionary Assistance Payment Amount $1,928.00

Example 3:

Mr. and Mrs. Carter apply for diversionary assistance on July 25th for themselves and their three young children. Mr. Carter's employer, a small manufacturer supplying the automobile industry, closed abruptly on March 20th. The employees were given no notice and no severance pay. Mr. Carter received his last paycheck, which included his wages through the day the plant closed, in the mail the next week. Since then, the family has survived with the help of family and friends, and a hardship withdrawal of $12,000 from his small 401 k. The balance in the 401k is now $2,000 and Mr. Carter is hesitant to use it since the family will then be destitute. The family is requesting help with August rent and utilities.

Since Mr. Carter's employment income from March is from a terminated source and since the loss of income occurred within the six months preceding the application date, it is not considered in determining eligibility for diversionary assistance and is not entered on the employment details screen. The family has no other income and the case passes the maximum income screen.

TANF Transmittal 74