POLICY CHANGE:

Oregon recently received some new regulations from the Food and Nutrition Service that are effective June 1, 2001. These changes will be incorporated into the July 1, 2001 manual release. Many of these changes are also being discussed in the May Shortened application training.

The FS policy changes are as follows:

1. Application Process Changes (for both certification and recertification):
   • Interview the FS applicant the same day they request benefits or give them a scheduled appointment for return. Follow existing policy on waiving an in-office interview due to hardship. If the in-office interview is waived, the division must still interview the client by telephone or in their home. Don't forget to document the reason the in-office interview is being waived on TRACS.
   • Inform clients that they are responsible for rescheduling missed appointments. A statement is being added to the application regarding the client's responsibility to reschedule missed appointments.
   • Give applicants at least 10 days to provide the requested information or verification. This means they can be allowed more than 10 days, up to the 30-day application processing time frame, but cannot be required to provide verification in less than 10 days. As a result, in order to meet the 30 day application processing time frames, the interview must occur in the first 20 days following the filing date.
   • The 30-day application processing period may be extended if the client states, in the 30 days, that they cannot provide the requested verification until after the 30th day or if the agency is not able to give the client an interview appointment in the first 20 days. Either way, the reason for the extension needs to be documented on TRACS.

2. Verification:
   • Clients reporting a change on an open FS case must also be allowed at least 10 days to provide verification or additional information that is needed to determine their continued eligibility or benefit amount. The request for this information and the due date must be given to the client in writing. If the client does not provide the requested information in the allotted time period, a notice to reduce or close must be sent.
   • All requests for information and verification must be made in writing. The AFS 210 is used for intakes. A new form (AFS 210A) is being created for verification requests on ongoing cases. This form will be available on NoticeWriter as (GS0210A), the Forms Server by June 1 and a paper version is being sent to the branch offices by June 1, 2001.

3. Certification periods:
   • FS certification periods can no longer be shortened. If a household is ineligible for FS, their benefits should be closed. FSMIS is being changed and will no longer allow the shortening of a FS certification period.
   • FS certification periods may now be lengthened to the statutory limit of 12 months. At the 12-month limit, an application and face-to-face interview is required. FSMIS is being changed to allow for this. The certification period can be extended before the certification period expires with an ADJ action. The certification period may be extended in three instances. They are:

   -	The applicant is approved for "expedited FS" based on their statements for one or two months. Extend the certification period when the pending verification is received. A new application and interview are not needed.
   -	The recertification packet is received, there is no questionable information and no telephone or face-to-face interview is needed. Extend the certification based on the desk audit.
   -	The APR form (AFS 7476) is received on an open ERDC/FS case. Extend the certification period for FS and a telephone interview is not necessary.

   • A continuing benefit decision notice is necessary anytime a change will reduce or close FS benefits. Therefore, in instances where a change reported on the recertification application or AFS 7476 will result in less benefits, a reduction notice must be sent. If less than 10-days exist until the end of the current certification period, the worker may want to call and interview the client and do a recertification action rather than send a 10-day reduction notice.
   • The certification period may be extended up to the 12-month limit. At 12-months, the client will need to complete a new application and have a face-to-face interview unless the interview is waived due to hardship. In the case of hardship a home visit interview or telephone interview must be conducted.
   • A new notice is being created to inform FS households that their certification period was extended to the new ending date.

4. Some households that previously were ineligible to receive the SUA are now eligible to get the SUA. These are households that live in a private housing complex, with a central utility meter and they are being charged separately from their rent for heating costs. Households residing in public housing complexes with central utility meters continue to be ineligible to receive the SUA.
   

5. There have been several QC errors recently regarding households that do not receive the SUA, but they received LIEAP payments at their current residence. Households receiving LIEAP payments are eligible to receive the SUA. The exception to this rule is a household residing in a public housing complex and there is a central utility meter. These households are not eligible for the SUA even if they receive LIEAP.
   

6. Households residing on an Indian Reservation are no longer allowed to be in MRS. This affects any person who lives on an Indian Reservation. Remove FS cases where the household is residing on an Indian Reservation from MRS with the next monthly reporting action. Take the action for the first of the month following the date the next 859A is received. Remember the "W" notice needs to be received before the effective date so the worker may need to process the 859A one day and the next day, remove the case from MRS. Also, explain the change reporting requirements to the client.
   

7. Begin to count the income of a child from Youthbuild and WIA when they are age 18. The former policy excluded this income until the child turns age 19.
   

8. Once again there are changes in categorical eligibility. In the past, TANF clients who become ineligible for TANF due to not complying with program requirements have not been categorically eligible. This is changing. As of June 1, the only persons who cannot be categorically eligible for FS are persons ineligible for FS due to an IPV or the head of household that is disqualified due to non-cooperation with OFSET. This means that workers will need to change the household CAT EL field from "C" to "N" when applying an OFSET disqualification on the head of household and review that persons resources.
   

9. There are changes in the treatment of motor vehicles for FS. This will impact very few households. Any vehicle with an equity value of less than $1,500 will be excluded up front from the fair market and equity value tests. The equity value for one vehicle per adult and one vehicle for each child needing the vehicle for work or schooling is zero. The FS worker guide and Vehicle Value computation sheet is being revised for July 1. Call one of the FS analysts if there is a need to determine the value of a vehicle for FS before you receive the manual release for July 1.
   

10. Self-employed FS households can now receive cost of the principal on the purchase price for income producing property as an allowable deduction for the income (remember, that if they have the cost, they get a flat 50% deduction, not the actual cost).

BRANCH OFFICE ACTION REQUIRED:

Review policy changes with branch staff. Make all of the changes with the next certification or recertification action except the removal of households from MRS when they reside on an Indian Reservation. These households need to be removed from MRS and in change reporting no later than July 1, 2001.

CENTRAL OFFICE SUPPORTING ACTIVITIES:

Systems: FSMIS is being changed to not allow the shortening of certification periods and to allow the lengthening of certification periods as of June 1, 2001. Note the FS case must be open to extend the certification period. The notice informing clients of the extension of the certification period will be available.

Forms: The new AFS 210A form is being created and will be available by June 1, 2001.

Policy: Incorporate these policy changes into the Family Services Manual for the July release.