DPSS ePolicy

Revision of exisiting policy and/or form(s).

This release provides policy and procedures for resource determination for the CalFresh Program.

What changed?

The resource limits due to Cost-of-Living Adjustments (COLA) for Federal Fiscal Year (FFY) 2027. For CalFresh, Recertification (RC) is now referred to as Renewal (RE).

Provides policy guidelines regarding CalFresh eligibility rules and mandatory reporting requirements for CalFresh applicants and recipients who receive substantial lottery or gambling winnings.

Note: Changes are shown highlighted in grey throughout the document.

Determination of resources is required for the evaluation of CalFresh eligibility when a Non-Assistance CalFresh (NACF) household (HH) is not Categorically Eligible (CE) nor Modified Categorically Eligible (MCE). Also, the resource determination must be made for all HHs evaluated for CalFresh Expedited Services (ES). For FFY 2027, the resource limit for HHs where at least one person is age 60 or older or is $4,750. The resource limit for all other HHs remains the same at $3,000.

HHs not eligible for MCE are subject to the below CalFresh eligibility requirements:

• Gross income limit based on 130 percent of the Federal Poverty Level (FPL); and
• Resource limit.

These non-CE/MCE NACF HHs must not exceed the maximum allowable non-exempt property limit (combined values of liquid and non-liquid resources).

Non-recurring lump sum payments are counted as resources in the month received unless excluded by other laws.

HHs must report substantial lottery and gambling winnings equal to or greater than $4,750 within 10 calendar days of the date the HHs received the substantial winnings during the certification period, and not wait for the Semi-Annual Reporting (SAR) 7, Eligibility Status Report, or at RE.

This additional mandatory mid-period reporting requirement is applicable even if the HH immediately spends or loses a substantial portion of the winnings and the remaining winnings are below the resource limit. HHs do not need to report substantial lottery and gambling winnings received before the initial application.

HHs whose case is discontinued for substantial lottery or gambling winnings will remain ineligible until they meet the allowable resource and income eligibility requirements when they re-apply for the first time after the discontinuance for over the resource limit due to substantial lottery or gambling winnings. This condition applies to all HHs. 

Verbal Notification of Policy to all HHs

To comply with policy, Eligibility Staff must verbally inform HHs of the rules and reporting responsibilities for applicants and recipients with substantial lottery and gambling winnings during initial certification and at the HH’s RE, as part of the explanation of the HH’s Rights and Responsibilities and the HH’s mid-period reporting requirement. Also, Eligibility Staff must inform HHs:

• Of eligibility termination if the HH receives substantial lottery or gambling winnings during their certification period which is over the resource limit;
• If the case is discontinued, the HH may reapply, but the HH must meet the CalFresh income and resource limits the first time they reapply after the case discontinued due to substantial lottery or gambling winnings; and
• If the case is terminated and the HH composition changes after the receipt of substantial lottery and gambling winnings, they may reapply without meeting the resource limit, if the new HH is conferred Modified Categorical Eligible (MCE).

Eligibility Staff must thoroughly document that the HH was verbally informed of the substantial lottery or gambling winnings reporting requirements on the Journal page. This applies to all HHs at time of initial certification and RE.

Exempt Assets

The following assets are exempt from CalFresh eligibility determination:

• 401 (k) Retirement Account;
• 403 (b) Retirement Account;
• 457 Retirement Account;
• 529 College Savings Plan;
• Individual Retirement Account (IRA);
• Coverdell Educational Savings Account (ESA); and
• Restricted Account (RA).

The United States Department of Agriculture (USDA) Food and Nutrition Administration (FNA) adjusted the CalFresh Resource Limits for the FFY 2027.

Section 4009 of the Agricultural Act of 2014 (84 FR 15083) establishes new reporting requirements for CalFresh recipients who receive substantial lottery or gambling winnings. HHs who receive substantial lottery or gambling winnings must immediately become ineligible for CalFresh benefits. These HHs will remain ineligible until they meet the allowable resource and income eligibility requirements when they re-apply for the first time after the case discontinued due to substantial lottery or gambling winnings.

If multiple individuals shared in the purchase of a ticket, hand, or similar bet, only the portion of the winnings allocated to the member of the CalFresh HH will be counted toward the eligibility determination.

Terms and Descriptions

Liquid Resources

Funds readily available to the HH, such as cash-on-hand, money in checking or savings accounts, savings certificates, trust deeds, notes receivable, stocks, or bonds, non-recurring lump sum payments (which includes retroactive payments), funds held in an IRA, and funds held in accessible Keogh plans.

Non-Liquid Resources

Personal property, buildings, land, recreational properties, and other property. The value of non-liquid resources must be its equity value, which is the Fair Market Value (FMV) minus encumbrances (amount owed).

Fair Market Value (FMV)

The amount for which property (real or personal) would be sold on the open market if put up for sale.

FMV is the applicant's/participant's choice of:

1. The assessed value (by local tax assessors, Small Business Administration (SBA), local newspaper classified ads, etc.); or
2. A market value obtained by the applicant/participant from a licensed real estate broker.
    

Trust Deed

An agreement between a lender and a borrower to give property to a neutral third party who will serve as a trustee. The trustee holds the property until the borrower pays off the debt. During the repayment period, the borrower is responsible for the maintenance of the property, while the trustee has the legal Title to the property.

Notes Receivable

An asset of a company, bank, or other organization that holds a written promissory note from another party.

Excluded Resources

Resources that are not counted, which may include a home and surrounding property where the HH resides, vehicles, HH goods, personal effects, and resources with a cash value that is not accessible to the HH (such as irrevocable trust funds, security deposits on a rental property, etc.).

Non-Recurring Lump Sum Payment

A non-recurring lump sum payment may be a retroactive payment, return of resources, or a one-time payment resulting from a government policy or law. It may include the following (but are not limited to):

1. Income tax refunds;
2. Rebates or credits;
3. Retroactive lump sum Social Security benefits;
4. Lump sum railroad retirement benefits;
5. Retroactive payments from any assistance program (through approval of an application, court order, or corrective action);
6. Lump sum insurance settlements; or
7. Refund of security deposits on rental property or utilities.

Resource Values

The equity value of non-excluded resources is the FMV amount minus the encumbrance (amount owed).

Restricted Account (RA)

An account in a bank or credit union where the CalFresh HH saves money to be spent for only the following expenses:

1. Purchase of a home to live in;
2. Money for education or job training for the account holder and their dependents; or
3. Start-up of a business.

Cash Value of the Funeral Agreement

The cash value includes any interest earned on the cash value and any appreciation in the value of the funeral agreement. The cash or equity value can be legally converted to cash by the account owner.

Substantial Lottery or Gambling Winnings

A cash prize won in a single game, purchase of a ticket, hand, or similar bet before taxes or other amounts withheld, which is equal to or greater than the resource limit for a HH with at least one elderly or disabled HH member.

Elderly or Disabled HH

Any NACF HHs in which a HH member:

1. Is 60 years of age or older;
   
   Note: A HH member at least 59 on the date of application but will become age 60 before the end of the application month is considered elderly for CalFresh purposes. 
   
   
2. Receives Supplemental Security Income (SSI) benefits under Title XVI, or disability or blindness payments under Title II, Social Security Disability Insurance Program of the Social Security Act (SSA); 
   
   
3. Receives disability retirement benefits from a government agency because of a disability considered permanent under Section 221 (i) of the SSA;
   
   
4. Receives interim assistance benefits pending receipt of SSI, provided that the eligibility to receive those benefits is based upon disability or blindness criteria which are at least as stringent as those used under Title XVI of the SSA;
   
   
5. Receives disability-related Medi-Cal or other medical assistance under Title XIX of the SSA;
   
   
6. Receives disability-based General Relief (GR) benefits, provided that the eligibility to receive those benefits is based upon disability or blindness criteria which are at least as stringent as those used under Title XVI of the SSA;
   
   Note: GR participants determined unemployable (including Needs Special Assistance) for any length of time are considered disabled for CalFresh purposes
   
   
7. Is a veteran with a service-connected or non-service-connected disability rated by the Veteran’s Administration (VA) as total or paid as total by the VA under Title 38 of the United States Code;
   
   
8. Is a veteran considered by the VA to need regular aid and attendance or permanently housebound under Title 38 of the United States Code;
   
   
9. Is a veteran who needs regular aid and attendance, permanently housebound, or a surviving child of a veteran and considered by the VA to be permanently incapable of self-support under Title 38 of the United States Code;
   
   
10. Is a surviving spouse or a surviving child of a veteran considered by the VA to be entitled to compensation for a service-connected death or pension benefits for a non-service-connected death under Title 38 of the United States Code, and they have a disability considered permanent under Section 221 (i) of the SSA; or
    
    Note: “Entitled” refers to those veterans’ surviving spouses and surviving children who are receiving the compensation or pension benefits stated or have been approved for such payments but are not yet receiving them
    
    
11. Receives an annuity payment under Section 2(a)(1)(iv) of the Railroad Retirement Act of 1974 and is determined to be eligible to receive Medicare by the Railroad Retirement Board or Section 2(a)(1)(v) of the Railroad Retirement Act of 1974 and is determined to be disabled based upon the criteria used under Title XVI of the SSA.

Joint Ownership

1. Resources jointly owned by separate HHs (including non-CalFresh HHs) are considered available in their entirety to each HH unless the HH can demonstrate that the resources are inaccessible to the HH.
   
   
2. If the HH has access to only a portion of the resource, then the value of that portion of the resource is counted toward the HH’s resource determination.
   
   
3. If the HH’s access to the value of a resource is dependent on the agreement of the joint owner in a separate HH who refuses to agree, then the resource is considered completely inaccessible to the HH. In addition, the joint resource cannot be subdivided if the sale of one subdivision (portion owned by a joint owner in a separate HH) would significantly reduce the value of another proportionate share jointly owned by another.
   
   
4. If a resource is jointly owned by members in the same HH who are disqualified or ineligible non-citizens, then the entire resource is considered available to the HH.
   
   
5. If members jointly own a resource in the same HH, but one of them is receiving public assistance (e.g., CalWORKs), then the amount used in determining eligibility for the public assistance program must be excluded for CalFresh eligibility determination. 

Excluded Resources

The home that the HH lives in and its surrounding properties, including:

1. Value the lot that a HH owns or purchases on which they intend to build or are building a permanent home.
   
   
2. HH goods, personal effects, including one burial plot per HH member, the cash value of life insurance policies, cash value of pension plans or funds, and Keogh plans that involve a contractual relationship with non-HH members.
   
   
3. Vehicles (all vehicles are exempt from resource consideration).
   
   
4. Property that produces annual income consistent with its FMV, even if it is only used on a seasonal basis (e.g., rental or vacation homes).
   
   Note: To determine if a property is producing income consistent with its FMV, Eligibility Staff may contact the local realtor, tax assessors, SBA, Farmers Home Administration (FHA), and other sources. Newspaper advertisements can also be utilized as a resource. 
   
   
5. Property that is essential for a HH member’s employment or self-employment and may include: 
   • Farmland or work-related equipment, such as the machinery of a farmer or a tradesman’s tool; 
   • Resources such as checking or savings accounts which is exclusively for business purposes (considered as an excluded resource even if it is mixed with other non-excluded funds, if the funds represent averaged self-employment income and funds necessary to produce the income for the period over which the funds have been averaged); or 
   • Property that was essential for producing self-employment income in farming, but the HH member is no longer self-employed (the property is excluded as a resource for one year from the discontinuance date)
      
6. Land or buildings are sold through installment contracts if the sale contract or agreement is based on the condition of producing income that is consistent with its FMV. The exclusion also applies to property value held as security in exchange for a purchase price consistent with the FMV.
   
   
7. The total value of trust deeds and notes receivable if the HH receives income from the trust deeds or notes receivable that is consistent with its FMV. The interest portion of these transactions is considered unearned income, and the principal portion is counted as a non-excluded resource to the HH. If the HH receives interest-only income payments from trust deeds and notes receivable, Eligibility Staff must determine whether the amount represents an appropriate rate of return on the transaction. If Eligibility Staff determine that the rate of return is not consistent with interest rates normally charged in similar business transactions, then such resource placed in the trust deed or notes receivable is not exempt. 
   
   Example: 
   A HH sells a property that is placed in a trust deed or notes receivable worth $300,000 and receives monthly payments of $2,000 ($500 in interest and $1,500 in principal). The interest amount of $500 is considered unearned income, and the principal amount of $1,500 is a non-excluded resource to the HH.
   
   The property in trust deed or notes receivable that only yields interest income to the HH is exempt as a resource if the HH receives interest income consistent with the FMV. For instance, the HH cannot receive a $30 monthly interest income if the FMV in a similar business transaction requires that the interest income be a minimum of $500 a month based on the property value.
   
   If a HH receives interest income much lower than the FMV (which may impact CalFresh eligibility or allotment amount), then the value of the property in a trust deed or notes receivable will be counted in its entirety, which is $300,000.
   
   Installment contracts, trust deeds, and notes receivable lose their exempt status when sold.
   
   
8.  Any government assistance payment is designated for restoring a damaged home during a disaster, even if the HH is subject to a legal sanction if the funds were not used for its intended purpose. Such payments may include (but are not limited to) assistance benefits from the Department of Housing and Urban Development (HUD) through individual and family grant programs, disaster loans, and grants from SBA. 
   
   
9. Resources that have a cash value that is not accessible to the HH include, but are not limited to:
   
   
   • Irrevocable trust funds
     
     This is any fund in a trust or transferred to a trust and the income produced by that trust. This fund is considered inaccessible to the HH if the following conditions are met: 
     1. The trustee administering the fund is either:
        • A court, an institution, corporation, or organization that is not under the direction or ownership of any HH member; or 
        • An individual appointed by the court with court-imposed limitations placed on their use of the funds. 
           
     2. The funds held in an irrevocable trust are either: 
        • Established from the HH’s funds if the trustee uses the funds only to make investments on behalf of the trust or to pay the educational or medical expenses of any individual named by the HH establishing the trust; or 
        • Established from a non-HH fund by a non-HH individual regardless of how the funds will be used. 
           
     3. The trust investments do not directly involve or assist any business or corporation under a HH member’s control, direction or influence; 
        
        
     4. The trust arrangement will not end during the certification period; and 
        
        
     5. No HH member has the power to revoke the trust arrangement or change the name of the trust beneficiary during the certification period. Funds or resources that may be included in a trust include the following, but are not limited to:
        • Security deposits on rental property or utilities; 
        • Property in probate; 
        • Real property which the HH is making a good faith effort to put on sale at a reasonable price and which has not been sold; 
        • Resources and/or income of Native Americans and Alaska Natives; 
        • Resources and/or income specifically excluded for purposes under other federal statutes;
        • Earned Income Tax Credits (EITC) payment received either as a lump sum or as a monthly payment (excluded as a resource for 12 calendar months after receipt by the HH, provided the HH was receiving CalFresh at the time of receipt of EITC and the HH has participated continuously for 12-month certification period); 
        • Any resources of a woman or women with children who temporarily reside in a shelter for battered women and children at the time of application. Such resources are considered inaccessible to the HH if:
          • The resources are jointly owned by the shelter resident and member(s) of the former HH from which the resident fled. 
          • The resident’s access to the resources requires the consent of the shelter resident and the member(s) of former HH.
        • Non-liquid asset(s) against which a lien has been placed as a result of taking out a business loan and the HH is prohibited from selling the asset(s) by the security of lien agreement with the lien holder (the creditor);
          
        • Resources owned by any HH member receiving public assistance (such as CalWORKs);
          
        • RAs; and 
        • The cash value of one funeral agreement per HH member.
          
          Note: The home and surrounding property remain exempt even if the HH temporarily vacates the home due to employment, training for future employment, illness, or natural disaster if the HH intends to return.

Excluded Resources by Other Federal Laws

The following resources and/or income are excluded for CalFresh purposes by federal laws:

1. Benefit Programs for Children:
   • Special Supplemental Food Program for Women, Infants, and Children; 
   • Special Milk Program; 
   • School Breakfast Program; 
   • School Lunch Program; 
   • Summer Food Service Program for Children; 
   • Commodity Distribution Program; and 
   • Child and Adult Care Food Program.
      
2. Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970;
   
   
3. EITC (which is excluded as resources for 12 calendar months after the HH receives the refund);
   
   
4. Allowances, earnings, and payments to individuals in programs specified under the Workforce Innovation and Opportunity Act;
   
   Note: Allowances, earnings, and payments to individuals participating in on-the-job training programs are not excluded as either income or resources. 
   
   
5. Payments or allowances reimbursed under any federal laws (except benefits under a state program funded under Part A of Title IV of the Social Security Act) for energy assistance such as the Low-Income Home Energy Assistance Act, or from HUD or the FHA programs. One-time assistance payments or allowances under federal or State laws for weatherization, emergency repair, or replacement of heating or cooling devices are excluded;
   
   
6. Financial and educational assistance under any of the following:
   • A program funded in whole or part under Title IV of the Higher Education Act. 
   • Bureau of Indian Affairs student assistance programs. 
   • Title XIII Indian Higher Education Programs, Tribal Development Student Assistance Revolving Loan Program (Tribal Development Student Assistance Act). 
   • Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990.
      
7. Payments received as restitution pursuant to the Civil Liberties Act of 1988 by United States citizens of Japanese ancestry and permanent Japanese alien residents or their survivors who were interned during World War II;
   
   
8. Payments received by Aleut residents of the Pribilof Islands and the Aleutian Islands west of Unimak Island pursuant to the Aleutian and Pribilof Islands Restitution Act for injustices suffered while under United States control during World War II;
   
   
9. Payments received from the Agent Orange Settlement Fund, or any other fund established to settle liability claims by veterans or survivors of deceased veterans concerning Agent Orange under the Agent Orange Compensation Act of 1989;
   
   
10. Federal major disaster and emergency assistance provided to individuals and families under the Disaster Relief Act of 1974 (ex., Disaster CalFresh) and other similar disaster assistance provided by States, local governments, and disaster assistance organizations due to a major disaster;
    
    
11. An individual receives payments from the Radiation Exposure Compensation Trust Fund for certain diseases attributed to radiation exposure pursuant to the Radiation Exposure Compensation Act of 1990;
    
    
12. Any amount by which the basic pay of an individual is reduced under the Veterans’ Benefits Improvement and Health-Care Authorization Act of 1986;
    
    
13. Any payment to volunteers under Title II of the Domestic Volunteer Services Act, including but not limited to (excluded as income only):
    
    • Retired Senior Volunteer Program. 
    • Foster Grandparents Program and Senior Companion Program. 
    • Senior Companion Program.
       
14. Any payment (excluded as income only) under Title I of the Domestic Volunteer Services Act, including but not limited to Volunteers in Service to America (VISTA), University Year for Action, and Urban Crime Prevention Program to volunteers who were receiving CalFresh or public assistance at the time they joined the Title I program, and additionally, the following applies: 
    • Those individuals receiving an income exclusion for a VISTA or other Title I subsistence allowance at the time of conversion to the Food Stamp Act of 1977 will continue to receive the income exclusion for VISTA for the length of their volunteer contract in effect at the time of conversion. 
    • Temporary interruptions in CalFresh Program participation will not affect the exclusion once eligibility has been determined.
       
15. Funds received by individuals aged 55 and over provided by the Senior Community Service Employment Program under Title V of the Older Americans Act are excluded as income only;
    
    The organizations listed below receive Title V funds under the Older Americans Act:
    • Green Thumb; 
    • National Council on Aging; 
    • National Council of Senior Citizens; 
    • American Association of Retired Persons; 
    • U.S. Forest Service; 
    • National Association for Spanish-Speaking Elderly; 
    • National Urban League; and 
    • National Council on Black Aging. 
       
16. The value of any childcare provided or arranged for, or childcare payments made under the program listed below are excluded as income only: 
    • Title IV-A of the SSA, including transitional childcare; 
    • At-Risk Block Grant; and  
    • The Child Care and Development Block Grant.
       
17. Allowances, earnings, and payments made under Title I of the National and Community Service Act (NCSA) of 1990. The NCSA includes programs under the Serve America, American Conservation and Youth Corps, and National and Community Service subtitles;
    
    Examples of programs under Title I of the NCSA include:
    • The Higher Education Service-Learning Program; 
    • AmeriCorps Umbrella Program, including the National Civilian; 
    • Community Corps and the Summer for Safety programs; and 
    • School-to-Work Opportunities program.
       
18. Payments made to individuals determined to be victims of Nazi persecution.      

Excluded Resources of Native Americans or Alaska Natives

The following resources of Native American members or Alaska Natives are excluded:

1. Indian lands held jointly with the tribe or land that can be sold only with the approval of the Department of Interior’s Bureau of Indian Affairs.
   
   
2. Funds or assets of, or payments to Native American tribal members or Alaska Natives are excluded as resources and/or income if specifically excluded by any other federal law, and these exclusions include (but are not limited to):
   • Payment Received under the Alaska Native Claims Settlement Act;
     
     
   • Payments received by certain Indian tribal members under federal law regarding sub-marginal land held in trust by the United States;
     
     The following tribes may benefit from the sub-marginal land provision:
     
     
     • Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin;
     • Blackfeet Tribe; 
     • Cherokee Nation of Oklahoma; 
     • Cheyenne River Sioux Tribe;
     • Crow Creek Sioux Tribe; 
     • Lower Brule Sioux Tribe; 
     • Devils Lake Sioux Tribe; 
     • Fort Belknap Indian Community; 
     • Assiniboine and Sioux Tribes;
     • Lac Corte Oreilles Band of Lake Superior Chippewa Indians; 
     • Keweenaw Bay Indian Community; 
     • Minnesota Chippewa Tribe; 
     • Navajo Tribe; 
     • Oglala Sioux Tribe; 
     • Rosebud Sioux Tribe; 
     • Shoshone-Bannock Tribe; and
     • Standing Rock Sioux Tribe.
        
   • Payments received from the disposition of funds to the Grand River Band of Ottawa Indians; 
     
     
   • Payments received by the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation from the Indian Claims Commission;
     
     
   • According to the Main Indian Claims Settlement Act of 1980, payments made to the Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of Maliseet, or any Indian HH or member;
     
     
   • Relocation assistance payment to the members of the Navajo and Hopi Tribes;
     
     
   • Funds that meet any of the below criteria:
     
     
     1. Appropriated funds under the judgments from the Indian Claims Commission or Claims Court, which:
        • Are distributed per capita, not exceeding $2,000, or held in trust according to an approved plan; 
        • As of January 12, 1983, were distributed per capita, up to $2,000, or held in trust according to a plan approved by Congress before January 12, 1983; 
        • Were distributed according to a plan approved by Congress after December 31, 1981, but before January 12, 1983, and any purchases made with such funds; or 
        • Are per capita payments not exceeding $2,000 from funds held in trust by the Secretary of the Interior (trust fund distribution).
     2. The $2,000 limit on per capita shares (applies to each payment made to each HH member); or 
        
        
     3. Purchases made with payments were distributed between January 1, 1982 and January 12, 1983 (excluded from resources to the extent excluded funds were used to make such purchases).
         
3. Interests of individual Indians in trust or restricted lands (excluded as resources only); and any income from such interests, up to $2,000 per calendar year per individual (excluded as income only), and with an application of the following:
    
   
   • Interests include the individual’s right to, or legal share of, the trust or restricted land and any resulting income; and 
   • The exclusion applies to each HH member who holds an interest or legal share.
      
4. Assistance received under the Indian Child Welfare Act child and family service grant programs on or near reservations. These programs include, but are not limited to:
    
   • Family assistance; 
   • Daycare; 
   • After-school care; 
   • Respite care; 
   • Recreational activities; 
   • Home improvement; 
   • Employment of Domestic Relations & Child Welfare Personnel; and 
   • Education and Training.
      
5. Payments made to the following:
    
   • Turtle Mountain Band of Chippewas, Arizona; 
   • Blackfeet, Grosventre, Assiniboine tribes of Montana, and the Papago Tribe, Arizona; 
   • Red Lake Band of Chippewa Indians; 
   • White Earth Band of Chippewa Indians of Minnesota pursuant to the White Earth Reservation Land Settlement Act of 1985; and 
   • Saginaw Chippewa Indian Tribe of Michigan.
      
6. Per capita and interest payments made to members of the Assiniboine Tribe of the Fort Belknap Indian Community and the Fort Peck Indian Reservation, Montana.
   
   
7. Funds paid to heirs of deceased Native Americans under the Old Age Assistance Claims Settlement Act, except for per capita shares exceeding $2,000.
   
   
8. Funds distributed per capita or held in trust for the Chippewas of Lake Superior and the Chippewas of the Mississippi.
   
   
9. Funds, assets, or income from the trust fund established according to the Puyallup Tribe of Indians Settlement Act of 1989.
   
   
10. Payments made to the Seminole Nation of Oklahoma, the Seminole Tribe of Florida, the Miccosukee Tribe of Indians of Florida, and the independent Seminole Indians of Florida to satisfy the judgments of the Indians Claims Commission, except for per capita payments exceeding $2,000.
    
    
11. Payments, distributions, or income under the Seneca Nation Settlement Act of 1990. 

Handling of Excluded Funds

1. The resource below is excluded for an unlimited period:
   
   Excluded funds (e.g., checking or savings account specifically for business purposes only) are not combined with other non-excluded funds. 
   
   
2. The resource below is excluded only for the period over which it is prorated as income:
   
   Cash funds are inaccessible to HH that belongs to a student or self-employed HH member, combined with a non-excluded fund in an account.
   
   
3. The resource below is excluded only for six months:
   
   Excluded funds (other than the excluded funds listed above) are combined with non-excluded funds in an account. After six months, all funds in the mixed account are counted as a resource.

Transfer of Resources

A HH’s CalFresh benefits must be denied or discontinued if a member of that HH (including an ineligible non-citizen or a disqualified person) has knowingly:

1. Transferred resources within three months preceding the application date to qualify for benefits; and 
2. Transferred resources to remain eligible for benefits.

HHs that knowingly transferred resources to qualify or attempt to qualify for benefits will be disqualified from the CalFresh Program for up to one year from the date of discovery.

Transfer Exemptions

The following property transfers do not affect CalFresh program eligibility:

1. Resources (e.g., personal property such as an item of furniture or exempt cash) that are added to other non-exempt HH resources, and the combined property value is still within the allowable resource limits at the time of transfer; 
2. Resources that are sold or traded at or near FMV; 
3. Resources that are transferred between members of the same HH, including ineligible non-citizens or disqualified persons, whose resources are considered available to the HH; or 
4. Resources are transferred for reasons other than qualifying or attempting to qualify for benefits (e.g., a parent placing funds into an educational trust fund for a child).

Disqualification Period

The length of the disqualification period is based on the value amount by which non-exempt transferred resources, when added to other countable resources, exceed the allowable resource limits.

Determination of the length of the disqualification period is based on the calculation as follows:

Non-exempt transferred resources plus Other countable resources equals Resource total  minus Resource limit for the household equals amount more than the resource limit.

Determining the period of disqualification is as follows:

If Amount in Excess of the Resource Limit is $ 0 to $ 249.99:

Then the Period of Disqualification is 1 Month.

If Amount in Excess of the Resource Limit is $ 250 to $ 999.99:

Then the Period of Disqualification is 3 months.

If Amount in Excess of the Resource Limit is $ 1,000 to $ 2,999.99:

Then the Period of Disqualification 6 Months.

If Amount in Excess of the Resource Limit $ 3,000 to $ 4,999.99:

Then the Period of Disqualification 9 Months.

If Amount in Excess of the Resource Limit $ 5,000 or more:

Then the Period of Disqualification 12 Months.

Notice Requirements

If Eligibility Staff discover that an applicant HH knowingly transferred resources to qualify or attempt to qualify for CalFresh benefits, the HH must be notified of the following: 

1. Application denial; 
2. Length of the disqualification; and 
3. Explanation of reason for the length of the disqualification.

Resources of Non-HH Members

The resources of non-HH members are excluded and considered unavailable.

Resources of Excluded HH Members

The resources of the following excluded HH members are excluded: 

1. Work-sanctioned members; 
2. Foster child(ren) not applying for benefits; and 
3. Ineligible students.

The resources of the following excluded members are counted in their entirety: 

1. Ineligible non-citizen; 
2. Social Security Number (SSN) disqualified person; 
3. Intentional Program Violation (IPV) disqualified members; and 
4. Fleeing felon and/or Probation/Parole Violator.

Note: Fleeing felons whose warrant is inactive or does not fall under the following National Crime Information Center (NCIC) Uniform Offense Classification Codes may be eligible for CalFresh, if otherwise eligible: 

• 4901 – Escape; 
• 4902 – Flight to Avoid (prosecution, confinement, etc.); or 
• 4999 – Flight/Escape.

Probation or parole violators may be eligible to CalFresh, if otherwise eligible, when meeting one of the following conditions:  

1. A warrant is inactive; 
2. The law enforcement agency indicates it does not intend to seek the individual; or 
3. The Welfare Fraud Prevention and Investigation (WFP&I) Section confirms with the law enforcement agency that the law enforcement agency took no action to seek the individual after 30 days. 

Rules on RA

RAs are excluded as a resource when the HHs save money for specific purposes, such as buying a home to live in, starting a business, or for education/job training. Below are the rules for HHs with RA:

1. The HH must be receiving CalFresh benefits at the time the account is established;
2. More than one RA is allowed;
3. There is no limit on the maximum amount of savings in an RA;
4. Funds in all RAs do not count against the HH’s resource limit;
5. Head-of-the-HH or Authorized Representative must sign RA Agreement before an account can be considered an RA;
6. The HH can only spend the funds on an allowable expense;
7. The HH must keep the funds and any interest earned in an RA separate from any other account;
8.  Interest earned on the RA must be deposited directly into the account(s);
9. The HH must complete the CalFresh Restricted Account Agreement Part A and B (Attachments II and III) for each RA; and
10. The HH’s RA will be counted as a resource for new applications if the HH has been discontinued from the CalFresh Program.

Note: An RA is not exempt as a resource for applicant HHs, except for a Transitional CalFresh (TCF) HH reapplying for regular CalFresh benefits if there is no break in aid. A TCF HH applying for regular CalFresh is considered an ongoing CalFresh HH, and eligibility for the RA is also ongoing. Eligibility Staff must inform the non-CE/MCE ongoing participant HHs about RA.
 

Withdrawal from RA

Below are the rules for HHs when withdrawals are made from an RA: 

1. Withdrawal from RA as Resource
   
   If a HH withdraws funds from RA to pay for expenses other than allowable expenses, then the withdrawn amount is countable as a resource, even if the funds are withdrawn for emergencies (including an emergency due to death or life-threatening situation). The withdrawn amount will be subject to a resource limit of $4,750 for HHs with at least one member who is disabled or 60 years of age or older or $3,000 for all other HHs. 
   
   
2. Reporting Withdrawals

A HH does not have to report a withdrawal of funds from an RA mid-period.

Note: If a HH is conferred MCE, then all resources are exempt in the determination of eligibility for CalFresh.

Allowable Expenses Under RA

The RA will remain exempt as a resource while the fund is reserved for at least one specific expense outlined below:

1. Purchase of a home to live in:
   • A HH can spend RA funds on the following:
     • Deposits, fees, down payment, and principal payment; 
       
     • Closing costs; or 
     • Repairs and fixtures.
        
   • A HH cannot spend RA funds on the following:
     • Furniture purchases; or 
     • HH goods.
2. Education or job training for the account holder(s) and their dependent(s):
   • A HH can spend RA funds on the following:
     • Fees, tuition, books, school supplies, equipment, and special clothing needs; 
     • Student housing and meals; 
     • Cost of transportation to and from school/vocational training; or
     •  Childcare services that are needed to attend school.
3. Starting up a new business:
   •  A HH can spend RA funds on the following: 
     • Purchase, repair, and upkeep of business equipment; 
     • Tools, uniforms, other protective or required clothing, and shoes; 
     • Payment on loan principal and interest for business assets or durable goods; 
     • Rent and utility payments for office or floor space; 
     • Employee salaries; 
     • Inventory, shipping, and delivery costs; or 
     • Business fees, taxes, insurance, bookkeeping, or other professional services.

Note: A HH cannot spend RA funds on personal expenses, such as entertainment, as this will disqualify the RA as an exempt resource.

Acceptable Document(s)

Ownership of Liquid and/or Non-Liquid Resources

1. Checking account;
2. Savings account;
3. Bank statement;
4. Stock, bonds, or saving certificate;
5. Income tax refund;
6. Trust deed or note receivable statement;
7. Mortgage statement;
8. Property tax statement; or
9. Affidavits.
    

RA(s)

Establishment and/or Withdrawal from RA 

1. Passbook, bank statement, or receipt from a bank, credit union, etc., that shows the name and address of the bank and the names on the account(s), account number(s); or 
2. All account balances and activity since the date the HH signed the RA Agreement;

Proof of How Funds from RA were Spent 

1. Canceled check; 
2. A signed statement from the provider of goods or services that shows the type and amount of expense(s) paid; 
3. A receipt; or 
4. RA bank balance statement.

Cash Value of a Funeral Agreement

A signed statement designating the resources as set aside for the funeral must show the following: 

1. The name of the person for whom the funeral agreement is; and 
2. The cash value of the funeral agreement.

The funeral agreement and its cash value should be verified via third-party documentation, and any discrepancies should be cleared and/or verified with the HHs. A written statement by the HH can be used as the last resource.

Note: The ABCDM 228, Applicant’s Authorization of Release of Information, form is required from the CalFresh HH authorizing the Eligibility Staff to release specific case record information for verifying the cash value of the funeral agreement from the third party.

Substantial Lottery or Gambling Winnings

Per FNA direction, case narration is acceptable as verification for a report of substantial winnings. However, it is the HH’s responsibility to report their substantial lottery or gambling winnings mid-period within 10 calendar days of the date the HH receives the substantial winnings.

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