DPSS ePolicy

Revision of existing policy and/or form(s)

What changed?

Effective July 20, 2020, the system was programmed as follows:

• Users can only run one-month Diversion Eligibility Determination Benefit Calculation (EDBC) on the Run EDBC page;
• The system will auto-discontinue the Diversion Program immediately after the one-month Diversion EDBC is accepted and saved; and
• The system will generate a hard validation on the Run EDBC page when the:
  
  
  • CalWORKs Program Beginning Date of Aid (BDA) does not match the Diversion Program BDA; and
  • EDBC Diversion benefit month run is not the same as the Diversion Program BDA month.

Previously, the system did not have validations to confirm the Diversion Program BDA matched the CalWORKs BDA or the EDBC benefit month selected includes the Diversion Program BDA month.

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

The Diversion Services Program provides a lump-sum payment to apparently eligible CalWORKs applicants with the intent of diverting them from long-term aid. The payment covers a specific unforeseen and non-recurrent need that removes obstacles from continuing, beginning, or obtaining a job. There is no limit on the number of times an applicant can receive Diversion Services, as long as the lifetime amount has not been exceeded.

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Diversion Period

Diversion period is the time period represented by the value of the Diversion Services payment divided by the current Maximum Aid Payment (MAP) amount for the Assistance Unit (AU).

Apparently Eligible

The applicant appears to be eligible for CalWORKs based on the information provided on the Application for CalFresh, Cash Aid, and/or Medi-Cal/Health Care Programs (SAWS 2 PLUS). At minimum, the applicant must provide verification of the following when apparently eligible:

• Verification of legal immigration status if the applicant is a legal immigrant; and/or
• Verification of pregnancy if the applicant is a pregnant woman with no eligible children

Note: Verification of pregnancy during the Executive Order, N-59-20, period includes a verbal attestation.

W-9

Request for Taxpayer Identification Number and Certification. This Internal Revenue Service form is completed by anyone providing a service under the Diversion Services Program by requesting the Taxpayer Identification Number and Certification.

Intake Interview

The applicant must be informed about the Diversion Services during the Intake interview and sign the PA 2019, Diversion Informing Notice, prior to the regular processing of the CalWORKs application. When the applicant appears to be a good candidate for Diversion and a Diversion payment is offered, the applicant may either choose Diversion or decline it and receive CalWORKs, if otherwise eligible. If the applicant chooses Diversion, the CalWORKs application must be denied. If the applicant declines Diversion, the CalWORKs application is approved, if otherwise eligible.

Evaluation for Diversion when applying for Homeless Assistance (HA)

Applicants applying for HA must be evaluated for Diversion. If the applicant qualifies for Diversion, they must be given the opportunity to choose a Diversion Services payment or HA.

An AU is considered homeless or at-risk of homelessness when:

• It lacks a fixed and regular nighttime residence;
• It is sharing a residence with family or friends on a temporary basis;
• It has a publicly supervised primary nighttime residence or privately operated shelter designed to provide temporary living accommodations;
• It is residing in a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings;
• It has a need for housing in a commercial establishment (e.g., hotel/motel), shelter, publicly funded transitional housing or from a person in the business of renting properties; or
• It has a notice to pay rent or quit or an eviction notice.

Eligibility for Diversion Services

To qualify for the Diversion Services Program, the applicant must:

• Be apparently eligible for CalWORKs based on the information provided on the SAWS 2 PLUS;
• Have employment:
  
  
  • Be employed. There must be sufficient income per month that will enable the applicant to meet the family’s needs; or
  • If not employed, have a verifiable job offer; the employment must have a definite start date, must be expected to last through the Diversion period and have income that when combined with other resources will enable the applicant to meet the family’s needs; or
  • If not employed, present evidence that they will find immediate full-time employment supported by the applicant’s skills, such as nursing, teaching was recently laid off, on short-term disability, such as maternity leave or recently relocated from another state. Acceptable documentation includes:
    
    
    • Statement from previous employers;
    • Pay stubs; and
    • Training certificates.
       
• Have a need that prevents them from continuing, beginning or obtaining a job; or have a need due to the COVID-19 pandemic;
• Have not exhausted their CalWORKs 60-Month Time Clock; and
• Complete the PA 2020, Diversion Agreement.

Child Support

Child support collected during the Diversion period by the applicant or recovered by the County must not be used to offset the Diversion Services payment.

Ineligibility for Diversion Services

The following applicants do not qualify for Diversion Services:

• An applicant who applies and reapplies for CalWORKs public assistance in short periods of time demonstrating the inability to maintain self-sufficiency. This is applicable even though there is no limit on the number of times an applicant can receive Diversion Services;
• Applicants experiencing an ongoing or recurrent need crisis due to apparent inability to maintain employment or financial mismanagement. For example, temporary or no housing, transportation, or child care arrangements;
• Applicants with a history of multiple job changes within short periods of time. For example, the applicant changes jobs each month;
• Timed-out adults;
• Persons convicted of welfare fraud;
• Fleeing felons;
• Individuals currently sanctioned (GAIN);
• Non-needy caretaker relatives; and
• Applicants with outstanding fines or past due child support payments that must be made in order to renew their driver license.

Eligibility to other Aid Programs

• CalFresh: Diversion Services payments are not considered income for CalFresh eligibility and benefit level determination. These payments are considered non-recurring lump-sum monies and are counted as a resource in the month received.
• Medi-Cal: Applicants who receive a Diversion Services payment are not automatically eligible to Medi-Cal, but are to be evaluated for eligibility under Medi-Cal guidelines. The Diversion Services payment amount is exempt from consideration in the program eligibility determination.
• Child Care: Applicants who receive a Diversion Services payment are eligible for Stage III Child Care. If there are no Stage III “slots” available, a Diversion applicant may be served in Stage II Child Care. If Stage II funding is unavailable, Diversion applicants may be served in Stage I Child Care.
• Supportive Services: Applicants who receive a Diversion Services payment are eligible to Domestic Violence Supportive Services.

Diversion Services Payments

The following maximum payment amounts have been established:

• Standard Payment: Up to $2,000 or the amount equivalent to the AU’s current MAP amount for three months, whichever is greater.
• Compelling Need Payment: A one-time expense that exceeds the standard amount, but is necessary to allow an applicant to remain self-sufficient. Up to $4,000 or the equivalent to the AU’s MAP amount for six months, whichever is greater.

There is no limit on the number of times an applicant’s household can receive Diversion Services, as long as the lifetime amount has not been exceeded. Each application must be separately evaluated and must meet the established criteria for Diversion.

The maximum lifetime payment is $10,000.

Diversion Services payments received by the applicant from other counties count toward the yearly and lifetime maximum payment amounts.

Needs and Expenditures

A Diversion Services payment may cover:

• Transportation - Costs associated with transportation to continue or begin employment. 
  • Examples: bus/transit passes, gas, vehicle repairs when the vehicle is owned or leased by the applicant and includes engine repair, smog checks, tires and batteries. Other vehicle expenses, such as auto insurance, auto payment, auto down payment provided the applicant is able to make monthly payments in addition to meeting the family needs based on current salary; or auto purchase when there is no other vehicle and other forms of transportation are not feasible or the cost of repairing an existing vehicle is more than the purchase of another;
• Work tools - Costs of tools required as a condition of employment and needed for the job. 
  • Examples: plumbing equipment, computer equipment, and phones;
• Special license fees - Costs of licenses needed to continue or begin employment. 
  • Examples: child care, nursing, or public notary license;
• Safety or special clothes - Costs of special clothing required to continue or begin employment. 
  • Examples: uniforms, office attire, shoes (work, nursing, etc.);
• Child care costs - Costs to secure child care in order to continue or begin employment. 
  • Examples: upfront fees required, deposits, and registration. Costs cannot exceed regional market rate ceilings;
• Relocation - Costs involved for relocation due to employment within the State of California. 
  • Examples: rental move-in fees, utility deposits, moving company fees;
• Shelter Expenses – Costs of shelter expenses to stabilize a family situation in order to continue or begin employment. 
  • Examples: back rent due and late fees to preclude eviction or rental fees required to secure a new residence when the family is homeless. Utility payments in arrears to avoid utility shut-off, assure restoration of services or security deposits required to establish utilities when the family has moved includes gas, electricity, propane, or water;
• Non-Citizen documentation - Costs for replacement of documentation from the United States (U.S.) Citizenship and Immigration Service or U.S. Consulate required to continue or begin employment. 
  • Example: Immigrant visa;
• Medical services - Costs of medical services not covered by Medi-Cal (if Medi-Cal recipient) and required as a condition of employment. 
  • Examples: tests/physical, hearing aids, and glasses.
• Rent and/or utilities; and
• Household appliances - Costs for replacement of household items to stabilize a family situation. 
  • Examples: stove, refrigerator, and other reasonable expenses determined on a case by case basis; and

A Diversion Services payment will not cover:

• Traffic/parking tickets, or other legally imposed penalties that restrict or prevent operation of a vehicle or renewal of driver’s license;
• Past due child support payments;
• Employer’s background investigation pending an employment offer or for a background check;
• Union dues; and
• Start-up costs of self-employment. (This program may pay for some costs involved in continuing a self-employment business that has established a record of success.)

Diversion Period

The Diversion period is determined by dividing the Diversion Services payment by the MAP level for the “apparently eligible” AU. Partial months are not counted.

Example: Mother and two children apply on July 5, are determined eligible and opt to receive a Diversion Services payment. A Compelling Need Diversion Services payment totaling $2,950.00 is issued for vehicle repair and registration. The Diversion period is four months: $2,950 ÷ $704 (MAP for 3) = 4.19 months = 4 months. August is month one of the Diversion period, the calendar month following the approval of the Diversion Services payment.

Reapplication for CalWORKs

Applicants may reapply for CalWORKs after receiving a Diversion Services payment.

If an applicant reapplies for CalWORKs within the Diversion period and is determined eligible, the previously issued payment must be collected by either:

• Time Limit – Repayment: The entire Diversion period counts toward the CalWORKs 60-Month Time Limits and the Diversion Services payment is not repaid; or
• Grant Adjustment – Repayment: The Diversion Services payment amount is recouped from the eligible CalWORKs grants at a monthly rate of ten percent of the MAP until the full Diversion Services payment is repaid.

Note: The applicant/participant chooses how they would like to repay the Diversion Services payment.

If an applicant reapplies for CalWORKs after the Diversion period has ended and is determined eligible for CalWORKs, only one month of the Diversion period counts toward the CalWORKs 60-Month Time Limit.

W-9

Verification of the need(s) and completion of the form W-9, Request for Taxpayer Identification Number and Certification, is required before a Diversion Services payment is authorized. The W-9 is completed by a business that is providing a service (i.e., auto shop, auto mechanic, etc.).

Processing Timeframes

Diversion Services payments must be issued within the following time frames:

• Urgent Need
  • Within three workdays
    • May include: eviction or two-day notice to pay or quit, vehicle repair, or applicant declares need for immediate payment and verifies urgency.
• Non-Urgent Need 
  • Within five workdays

Overpayment

Documentation verifying that the Diversion Services payment was used for the requested need in accordance with the Diversion Agreement must be provided within ten calendar days of the Diversion Services payment issuance.

The Diversion Services payment shall be assessed as an overpayment and collected at ten percent of the grant in the following circumstances:

• Applicant fails to provide proof that the Diversion Services payment was used for the requested need;
• There is evidence indicating that applicant failed to utilize the Diversion Services payment for the requested need; or
• Applicant is determined to have been ineligible to a Diversion Services payment because of applicant error, (i.e., fictitious information provided).

Time Limits

Unless an individual qualifies for a clockstopper or an extender, they are no longer eligible for cash aid and are removed from the AU upon reaching their CalWORKs 60-Month Time Limit. The adult continues to be eligible for CalFresh and Medi-Cal.

If an applicant reapplies for CalWORKs within the Diversion period and is determined eligible, and the participant is not planning to repay the Diversion Services payment, the entire Diversion period counts toward the CalWORKs 60-Month Time Limit.

If an applicant reapplies for CalWORKs after the Diversion period has ended and is determined eligible for CalWORKs, only one month of the Diversion period counts toward the CalWORKs 60-Month Time Limit.

The applicant must provide the following documentation prior to issuance of a Diversion Services payment:

• Minimum documentation required when “apparently eligible” for CalWORKs;
• Documentation to verify employment, employment offer, or a likelihood of employment in a short period of time based on the applicant’s skills/degrees;
• Completed PA 2020, Diversion Agreement;
• Documentation to verify need(s); and
• W-9, Request for Taxpayer Identification Number and Certification, form when the payment is for a vendor or merchant.

If the applicant fails to provide the required documentation within 20 calendar days of the date it was requested, the case must be treated as a regular CalWORKs application and processed accordingly.