137.5 Diversion

137.51 General Policy 

Implemented in August 2005, the TANF Diversion Initiative is an alternative to Temporary Assistance for Needy Families (TANF). Diversion covers a short-term financial gap when a household's earned income temporarily stops or reduces. The intention of Diversion is to “divert” the householdfrom the immediate crisis and the need for ongoing TANF benefits reducing the accumulation of TANF time.

A Diversion payment is a lump sum of either one, two, or three months of the Family Size Allowance (FSA), depending on the amount and time span of the need. A Diversion period extends from the first day of the month that the County Assistance Office (CAO) authorizes Diversion until the last day of the final month of Diversion eligibility. Recipients can onlyreceive Diversion once in 12 months.

NOTE:  Diversion is not an annual entitlement to cover expected ongoing needs. The intent of Diversion is to fill a short-term, non-recurring financial gap until a household's income resumes.  The CAO must base Diversion eligibility on this intent. Because Diversion is a cost-saving initiative, the CAO should evaluate each situation independently.

TANF State Plan

137.52 Diversion Eligibility Requirements

ELIGIBLE FOR TANF

The CAO must determine at application if the cash assistance applicant family is eligible for TANF and then also evaluate additional criteria for Diversion by using the Diversion Eligibility Desk Guide.  If eligible for both programs, the CAO must explain the difference between the two cash programs using the Diversion and TANF Comparison Desk Guide. After considering the benefits offered by each cash program, the applicant determines whether Diversion or TANF best fits their needs. See Section 137.53 for screening process. TANF time limits are NOT a factor in determining eligibility for diversion.

• Application: The applicant must complete the Common Application Form (PA 600).  Every budget group member, age 18 or older, must sign the PA 600 and be requested to sign the Authorization for Release of Information (PA 4).  

• Eligibility in Month After Application Month: If a family is not eligible for Diversion in the month of application, the CAO will consider the following month. If the family is eligible for Diversion in the month following  the application month then that month is considered the first month of the Diversion period.

NOTE: If the family qualifies for Diversion in the month of application, the NCE begin and end date is the application date. If the family is ineligible in the month of application but eligible for Diversion in the month following the application month, the NCE begin and end date is the first day of  that month.

• Financial/Non-Financial Requirements: An applicant family must meet—in either the application month or the following month—all TANF non-financial and income/resource requirements and all sanction/criminal history requirements.

• Treatment of Income: When determining Diversion eligibility, the CAO uses TANF income eligibility criteria and counts both earned/unearned income. See Chapter 150, Income. However, the CAO disregards family income to determine the Diversion payment amount, which is always a full FSA for one, two, or three months.

• Sanction: The budget group and corresponding grant group is ineligible for Diversion if an Eligible Specified Relative parent is sanctioned (DS). To receive Diversion, the sanctioned individual must meet all sanction requirements and re-establish ES status.

• ES Parents/SSI Recipients:

• • One-parent household: A single parent must be an ES to receive Diversion. A single parent who is an SSI recipient is not an ES on the TANF budget and, therefore, is not eligible for Diversion.

  • Two-parent household: In a two-parent household with one parent who receives Supplemental Security Income (SSI), if the other parent is an ES, that parent can receive a Diversion payment for the TANF grant group.

NOTE:  An SSI recipient is not part of the TANF grant group because an individual cannot receive both TANF and SSI benefits at the same time.  The individual may choose which benefit to receive. See Section 105.1.

• Diversion Agreement Form: The applicant family who chooses Diversion will complete/sign a Diversion Agreement Form (PA 1793) instead of an Agreement of Mutual Responsibility (AMR)(PA1661). There are no work requirements associated with the receipt of Diversion.

• No Overlapping Cash or Diversion Benefits: The CAO will not authorize Diversion to an applicant who received cash assistance any days in the Diversion application month or received a Diversion payment in the past 12 months (beginning with the NCE authorization date of the previous Diversion payment).  For exceptions to authorizing cash assistance within a Diversion period, see Section 137.521.

• Child Support: There are no child support requirements associated with the receipt of Diversion.

• Non-citizens: Refugees and Legal Permanent Residents (LPRs) who have met the five-year bar and meet the requirements for TANF may be eligible for Diversion.

NOTE: LPRs who have not met the five-year bar are not eligible for Diversion. 

• Multiple Grant Groups: To be eligible for Diversion the TANF grant groups must include an ES adult member. TANF households with two or more grant groups may have one grant group eligible for Diversion while the 2nd grant group, if child only, would not be eligible for Diversion and should be reviewed for on-going TANF.

EXAMPLE: TANF household consists of a parent, biological child, and nephew.
Grant Group 1 – Parent and child, Eligible for TANF or Eligible for Diversion.
Grant Group 2 – Nephew only, eligible for TANF not eligible for Diversion.

Process the Diversion NCE for Grant Group 1 and pend the ongoing cash for Grant Group 2. Once Diversion is authorized, process the ongoing cash for Grant Group 2 and review for MA for Grant Group 1.

 SHORT-TERM FINANCIAL NEED

• Eliminating Need for Ongoing Cash Assistance: The intention of Diversion is to cover a family’s short-term financial gap and eliminate the need for ongoing TANF benefits. Diversion is not an annual stipend for a family’s anticipated, recurring needs.

• Verifying Need: The CAO will verify the amount and duration of the need, up to a maximum three months. If verification exists in the case record, the CAO will not require more.  Financial needs include but are not limited to:  Work expenses (such as uniforms and tools); transportation expenses (such as car repairs/inspections, car payments, car insurance premiums); child care costs; housing expenses (such as mortgage payments, rent, home repairs, or utilities); costs to relocate to secure employment.

NOTE:  The CAO will not issue Diversion to cover court costs, fines, bail, restitution payments, and child support payments (either ongoing or arrearages).

• Income Expected in Diversion Period: In general, when determining if Diversion can cover the family’s financial gap, the CAO should count income expected within the Diversion period only when the Diversion payment (combined with all available supplemental benefits) cannot cover the financial gap.

NOTE: The CAO has leeway to work case by case when considering income expected within a Diversion period -- but should be cautious when counting this income. For example, an expected tax refund may not arrive timely or in the amount needed to help cover the need.  However, regular, dependable child support payments or income from an established part-time job can be a reliable source of income.

• SSI Income: When determining TANF or Diversion eligibility, the CAO will not count SSI benefits. However, when determining if a Diversion payment will cover a family’s short-term needs, the CAO can count SSI benefits expected in a Diversion period if a Diversion payment cannot cover all the needs.

• Other Benefits: The CAO should consider all available supplemental benefits to help a Diversion payment cover the financial gap.

NOTE: If a combination of Diversion, anticipated income in the Diversion period, and supplemental benefits does not meet the family’s total short-term financial needs, the CAO cannot authorize Diversion. The CAO will consider other benefits, including ongoing TANF.

• Income Expected After Diversion Period: The CAO will not require verification of recurring income the family expects to receive at the end of the Diversion period but the family should expect this income to arrive timely and in the amount to meet the family’s needs. In a two-parent household, only one ES parent needs to anticipate income. With a few exceptions, Diversion recipients are ineligible for cash assistance benefits until the end of the Diversion period. See exceptions in Section 137.521. 

NOTE: Although the CAO will not require verification of  recurring income expected at the end of the Diversion period, a family’s voluntary verification of this income can help pinpoint the duration of the need.  The CAO should consider explaining this advantage to applicants.  Waiting for this verification should not delay the application process.  

RECENT WORK HISTORY OR JOB SKILLS TRAINING

• Specified Relative and Work History: The applicant budget group and corresponding grant group must contain an eligible Specified Relative (ES). Within 90 days of the application, the ES must have work history or job skills training. This time frame is within 180 days of application for geographical areas waived for time-limited Supplemental Nutrition Assistance Program (SNAP) benefit. See Appendix A in SNAP Handbook Chapter 536, Able-Bodied Adults Without Dependents, Appendix A.

NOTE: Income-in-kind counts as recent work history. For example, a family may live in a resort, receive no salary/wages, but take care of housekeeping and grounds in exchange for housing and meals.

• Verification: Certificates from trainings, pay stubs, and income tax returns indicate job skills training or work history.  

• Two-Parent Household: Only one ES parent must meet the work or job skills requirement.

• SSI Recipients:  An SSI adult recipient is an ES for SSI and not Diversion. An SSI child recipient is not included in the Diversion or TANF benefit amount.

• Sanctions and Criminal History: All members of an applicant group must meet restrictions for sanctions and criminal history and must re-establish ES status before the budget group can receive Diversion. The sanctioned relative must fulfill the minimum sanction time period and comply with appropriate action required by the CAO.

NO OVERLAPPING CASH BENEFITS

To be eligible for a Diversion payment, an applicant budget group member cannot already have received cash assistance in any days during the Diversion authorization month – or have received a previous Diversion payment within the previous 12 months. The NCE authorization date of the Diversion payment is the begin date of the 12-month period, regardless of program status code or amount of Diversion. See exceptions below in Section 137.521.

The CAO can authorize an Emergency Shelter Allowance (ESA) to an individual/family who already received a Diversion payment to resolve a housing crisis within the 12-month period prior to the request for the ESA.

  NOTE: The CAO can authorize Diversion for an applicant family who received Diversion in another state within the past 12 months.

137.521 EXCEPTIONS: WHEN TO AUTHORIZE CASH IN DIVERSION PERIOD

If the family’s situation falls under one of the three exceptions below  -- and the Bureau of Policy (BOP), Division of Family Assitance (DFA) approves the exception – the CAO may authorize cash assistance within a Diversion Period. 

When making an exception, the CAO must write a detailed case-record narrative explaining the reason for the exception; file a Diversion overpayment for full calendar months with Reason Code 59; and use the ARRC screen, “ARRC Diversion Action,” to enter a Diversion overpayment.  See ARRC Data Entry Procedures in Using ARRC.

The CAO will explain to the Diversion recipient that when TANF cash assistance is authorized overlapping the Diversion period, an overpayment is required. This means the recipient must repay all or a portion of the Diversion benefit to the Department through a decrease of the ongoing monthly cash assistance benefit by up to five percent, as indicated on the AMR (PA 1661).  If the individual agrees with these terms, the CAO must contact (BOP) to request an exception.

  NOTE: Spending Diversion funds at will, for any purpose, is not a valid reason to make an exception.

EXAMPLE: A parent and two toddlers receive a Diversion payment to cover three months of needs until the parent’s job begins.  During the second month of the Diversion period, the parent applies for TANF because they spent the Diversion funds on vacation and decided not to start the new job. This is not a valid exception. The CAO will not authorize TANF during the Diversion period.

EXCEPTION 1: DOMESTIC VIOLENCE ISSUES

A domestic violence (DV) issue, under the Family Violence Option according to normal DV regulations, is an exception.  See Chapter 108, Family Violence Policy and Procedures; Section 108.6; Section 108.75. Rather than directly referring to DV issues on the AMR, the CAO should handwrite “family or household issues” or “referred for supportive services.” The CAO will inform the family of the overpayment and contact BOP for approval to authorize ongoing TANF. This exception may require verification, as per BOP.   

EXAMPLE:  A parent and three children receive a Diversion payment to cover August and September needs until the parent’s job starts in October. In mid-August, the parent’s ex-spouse batters them and threatens the children. The parent temporarily moves their family to a friend’s house, spends Diversion funds on emergency needs, and applies for cash assistance. The CAO contacts BOP for approval of the exception.

EXCEPTION  2:  CHILD WELFARE SERVICE AGENCY ISSUES

Ongoing TANF may help prevent a child welfare agency from removing a child from the home or speed the return of a child.  If so, the CAO can consider this situation as an exception, upon receiving approval from (BOP).  This exception requires verification.         

EXAMPLE:  The CAO authorizes a Diversion payment to cover April, May, and June needs for a parent and family until the parent graduates from secretarial school and starts work in June.  In early April, the child welfare agency informs the parent their infant can be returned home from foster care when the parent completes an infant-care class and verifies a recurring income. The parent applies for cash benefits and provides a child welfare agency statement for verification. The CAO contacts BOP for approval of the exception.

EXCEPTION  3:   UNFORESEEN CIRCUMSTANCES

When it appears that an unexpected circumstance qualifies as an exception, the CAO should forward details to (BOP) for review and approval. This exception may require verification, as per (BOP).

Expected Job Falling Through: When the beginning of employment expected at the end of the Diversion Period does not materialize, the CAO can consider this as an exception. This exception likely will require verification before the CAO contacts BOP for approval.

EXAMPLE: A parent and family receive a Diversion payment to cover January and February needs until  the parent’s job starts on a construction crew.  Two weeks later, theemployer tells the parent the company will relocate to Nevada. The parent applies for cash benefits and provides an employer statement to verify the job loss. The CAO contacts  BOP for approval of the exception.

Natural Disaster or Serious Crisis: Exceptions may include floods; tornados; earthquakes; fires; infestations; a budget group member’s serious illness or injury; utility shut offs; evictions or eviction notices; other emergencies threatening life or health and resulting in loss of an essential need. This exception may require verification, as per (BOP).  Examples of verification include news clippings; social service agencies such as Salvation Army or the Red Cross; third party contacts, such as landlords.

EXAMPLE: The CAO authorizes Diversion to meet September and October needs for  a parent and family until the parent’s November job start. In mid-October, a fire severely damages their apartment.  Re-locating to a motel, the family spend Diversion funds on immediate needs, apply for TANF, and provide a landlord statement for verification. The CAO contacts  BOP for approval of the exception.

137.53 Application Process

Every budget group member, age 18 or older, must sign the PA 600 and be requested to sign the  Authorization for Release of Information (PA 4). As a first step, the CAO reviews the application for cash assistance eligibility.

REMINDER:   To be eligible for Diversion, a budget group must be eligible for TANF.

NOTE: There are no child support requirements for Diversion therefore the 25% reduction to a TANF grant would never be applied to a Diversion payment.

Screening Process  

Screening helps to determine eligibility for Diversion or TANF benefits.  At the application interview (or screening interview), the CAO will: 

1.   Ask the applicant these questions:

• Why are you applying for cash benefits?

• What happened to create a need to apply for cash assistance?

2.  Narrate the response.

3.  Based on the response, determine if the budget group has a specific episode of need or crisis situation that can be resolved with the Diversion Initiative, including :

• Threat of homelessness, eviction, and/or utility shut-off.

NOTE: Evaluate for ESA first to eliminate or reduce the threat.

• Employment, school, or training needs, such as tools or automobile repair.

• Recent loss of a job.

4.   If the budget group meets TANF non-financial eligibility requirements; is income and resource eligible for TANF; and, indicates a specific episode of need or crisis situation – take the following action:

• Review Diversion eligibility requirements, including recent work history or job skill’s training.

• Evaluate exceptions in Section 137.521.

• Narrate the episode of need or crisis situation.

NOTE: The CAO will consider all available supplemental benefits, which can cover part of the financial gap and make a Diversion payment possible. Only if supplemental benefits plus a Diversion payment do not meet the family’s needs during a Diversion period, should the CAO count income expected to arrive within the Diversion period. 

5.  If the applicant meets Diversion requirements:

• Discuss with the applicant the option of a Diversion payment using the Diversion and TANF Comparison Desk Guide, and

• Determine how many months of Diversion are necessary to meet the temporary episode of need.  Diversion may be authorized for one, two or three months of the Family Size Allowance (FSA). The Diversion benefit is issued for calendar months and begins on the application date if found eligible in the month of application or the first day of the following month if found eligible in the month following the month of application.

• Authorize Diversion, if appropriate.

EXAMPLE: The CAO narrates reasons that the Range family applies for cash assistance. After the couple exhausted unemployment compensation benefits, they started temporary part- time jobs, which have ended their plan to start work at a new factory opening in three months. The CAO determines the family eligible for TANF and Diversion.  After the CAO explains Diversion, the couple chooses Diversion. The CAO authorizes a three-month Diversion payment and narrates.

6.  If the applicant is not eligible for Diversion or opts not to receive Diversion:  Authorize TANF.

EXAMPLE: Ms. Banks, with two children, applies for cash benefits. The CAO asks the reason/specific needs prompting the application; determines TANF eligibility; and, narrates.  For the past eight months, the children’s other biological parent beat and stalked Ms. Banks, Ms. Banks has not worked. Ms. Banks moved the family to another town but is afraid to work because the stalking continues. Ms. Banks’ parents cannot continue providing funds. Ms. Banks meets Diversion criteria, but chooses to receive TANF benefits, the CAO authorizes TANF and narrates accordingly.

COLLECT  VERIFICATION 

Verification to determine Diversion eligibility should clearly define the short-term needs of each applicant family.  For this reason, the CAO should provide the applicant a detailed verification checklist/due date -- and stress that Diversion benefits cannot be authorized without these items.   Acceptable verification includes, but is not limited to:  

• For Income or Current/Recent Work History: Check stubs for earned/ unearned income; checking/savings account statements; Domestic Relations child support statement; dated check stubs to show wages; employer statement to pinpoint recent/current employment or show date of end of  maternity leave.

• For Financial Needs: Work expenses, such as uniforms or tools; transportation expenses, such as car repairs, inspection, car payment, insurance premiums; childcare costs; housing expenses, such as mortgage payments, rent, home repairs, utilities; costs to relocate to secure employment.

It is important for the CAO to require third-party statements from relatives or community organizations assisting the family during the Diversion period. This assistance, covering specific financial gaps, can pinpoint what remains to be covered with a Diversion payment.

NOTE: The CAO is not required to verify a family’s anticipated self-sustaining income expected at the end of the Diversion period.  However, a family’s voluntary verification may help determine the length and nature of a short-term need. This verification can include employer statement with date of return/start of work; date/amount of first check or expected pay.         

EXCEPTION: In rare situations, the CAO may count income expected to arrive after the maximum three-month Diversion period. For example, a family with a financial crisis spanning four months would not be eligible for Diversion because a maximum three-month Diversion payment cannot meet their entire need.  However, if the family verifies that a third-party will cover the needs for the fourth month, a three-month Diversion payment may meet their needs.

EXAMPLE: The CAO interviews Ms. Stover, who requests Diversion for self and child.  As Ms. Stover explains, their needs extend four months, from July through October, until employment starts in early November. The CAO tells Ms. Stover a maximum Diversion period, covering three months, can meet the household’s July, August, and September needs – but not the October needs. For this reason, the CAO cannot authorize Diversion unless Ms. Stover finds a way to cover the October expenses. Ms. Stover contacts the new employer, who provides a statement that, on October 1, Ms. Stover will receive a signing bonus, enough to meet October needs.  The CAO can authorize Diversion.

OFFER  PROGRAMS AND SERVICES

The CAO will review advantages of programs, supplemental benefits, and services available to Diversion applicants – plus employment and training requirements for all benefits. When a Diversion payment alone cannot cover the applicant family’s financial needs during the Diversion period, this additional help may fill the remaining financial gap and enable the CAO to authorize Diversion.   See Chapter 138, Allowances and Benefits; Chapter 183, Child Care.

Before deciding if supplemental benefits from a community agency are viable, the CAO must receive verification of the date, exact nature, and quantity of benefits.

Special allowances for RESET are not available to a Diversion recipient; however, SNAP participants who receive a Diversion could be served in SNAP E&T and eligible for special allowances through SNAP ETP for the duration of the Diversion period.

• EMERGENCY SHELTER ALLOWANCE (ESA) for rent or emergency shelter.  See Section 138.8.

NOTE:  The CAO can authorize an ESA to an individual/family who already received a Diversion payment to resolve a housing crisis within the 12-month period prior to the request for ESA.

• LOW-INCOME ENERGY ASSISTANCE PROGRAM (LIHEAP) for help with heating fuel and utility bills.  See LIHEAP Handbook .

• SNAP BENEFITS to assist with grocery bills. When a family applying for Diversion considers SNAP benefits, the CAO must explain that Diversion recipients would not be considered exempt from participation in SNAP Employment and Training since they are not subject to work requirements under TANF. Individuals participating in SNAP E&T may be eligible for special allowances under the SNAP employment and training program during the Diversion period.    

• Medical Assistance to help pay medical bills or prevent medical debt.  See Medicaid Eligibility Handbook.  Diversion can be opened without closing an MA budget.  While processing a Diversion NCE payment, the CAO should not delay a medical assistance eligibility determination or disrupt medical coverage.

• JOB SEARCH assistance is available at no cost and without referral to all residents of Pennsylvania by contacting the local PA CareerLink Office or visiting JobGateway.

• CHILD CARE SUBSIDY to help pay childcare, through the Early Learning Resource Center (ELRC). See Letter of Potential Eligibility for Child Care Subsidy (PA 1696) and Chapter 183,Child Care. Diversion recipients are treated as "Former TANF" for childcare.

NOTE:  Adding other benefits can reduce a three-month FSA to a two-month FSA or a two-month FSA to a one-month FSA.

EXAMPLE: In mid-September, Ms. Landers and toddler twins apply for a Diversion payment for September and October needs until Ms. Lander’s November 1^st job start. The family receives SNAP and already paid September rent, plus a few bills. A Diversion payment must meet remaining September needs and all October needs, including rent, due October 1.The landlord stressed that another late rent payment means eviction. The CAO authorizes an ESA for October rent, enabling a September Diversion payment to meet all needs until the November job start.

OFFER OTHER COMMUNITY RESOURCES

The CAO discusses community services with the applicant to assist with short-term needs and prevent another family financial crisis.  Community referrals and CAO recommendations include but are not limited to: Consumer Counseling and Budgeting Services; Child Care Network; Domestic Relations; Homeowner’s Emergency Mortgage Assistance Program (HEMAP) at (800) 342-2397; Housing Authority; Legal Services; Women Infants and Children Program (WIC), etc. Services that will benefit the family should be noted on the Diversion Agreement Form (PA 1793).

DIVERSION VS. TANF

With information from the CAO during the personal interview, an applicant family must make an informed decision about which benefit best covers specific needs during the financial gap. The Diversion and TANF Comparison Desk Guide lists and compares the differences between the two types of cash benefits.

137.54 Diversion Agreement Form (PA 1793)

The Diversion Agreement Form (PA 1793) serves as the Agreement of Mutual Responsibility (AMR) for Diversion recipients.  An applicant who only wants Diversion does not need to complete the TANF AMR (PA 1661).

The following individuals must sign the Diversion Agreement Form: Anyone required to sign the Application for Benefits and required to sign the AMR to receive TANF.  This includes ES budget group members who meet Diversion criteria; the payment name if different from the applicant; budget group members age 18 years or older; and those considered as emancipated minors.

PURPOSE OF DIVERSION AGREEMENT

• Document applicant’s informed decision regarding Diversion and TANF. 

• Document community services discussed with applicant .

CAO RESPONSIBILITIES

• Explain eligibility requirements and objectives of Diversion Program.

• Help applicant determine need for other services at the CAO.

• Recommend community services beneficial to the applicant family.

APPLICANT RESPONSIBILITIES 

• Explain and verify short-term financial need and plans to support family without applying for TANF.

• Use Diversion payment for specific financial need(s) presented in the application for Diversion.

• Sign and date to acknowledge that the CAO explained the Diversion Program—and that the applicant understands, if determined eligible for Diversion, they  will either:

• Choose, as marked on the Diversion Agreement Form, a Diversion benefit not to exceed three months. This includes acknowledging that the applicant may not receive cash assistance during the Diversion period; may not receive another Diversion benefit for 12 months from the date the Diversion benefit authorization, as noted on the Notice of Eligibility;  may keep any child support received during the Diversion period or,

•  Choose cash assistance rather than Diversion benefits at this time.  

137.55 Eligibility Determination

AUTHORIZE IN 30 DAYS

A 30-day time frame exists to authorize Diversion, the same as TANF. The CAO should assist the applicant in applying for supplemental benefits and, if possible, hasten the time frame to help make the best use of a Diversion payment.

A delay in eligibility-determination for supplemental benefits should not delay authorization of Diversion – the same as a third-party delay does not hold back authorization of cash benefits.  Timely authorization ensures the applicant family’s financial requirements are covered and helps prevent a later need for TANF.

NOTE: If an applicant does not provide pending information for Diversion, and the 30-day authorization time frame has expired, the applicant may request a reconsideration of the original application or reapply for TANF or Diversion at any time.

DETERMINE NEED

To calculate the total short-term financial gap during the Diversion period, the CAO will review verification for each item of need.

Examples of financial needs (including but not limited to): Work expenses (such as uniforms or tools); transportation expenses (such as car repairs/inspections, car payment, insurance premiums); childcare costs; housing expenses (such as mortgage payments, rent, home repairs, or utilities); costs to relocate to secure employment. 

Verification of financial needs: Bills, creditor letters, landlord payment book, etc. If verification of the need already exists in the case record, the budget group is not required to duplicate the verification to qualify for a Diversion payment.

NOTE: A budget group's Diversion payment for one, two, or three months may exceed the verified financial need. The CAO considers these excess Diversion funds as available for the family’s unexpected or unspoken needs.

REMINDER: A Diversion payment, alone or added to other assistance (such as SNAP benefits, Medical Assistance, supplemental benefits, or help from a third party) must meet the total need. If not, the CAO cannot authorize Diversion.

 SUPPLEMENT A DIVERSION PAYMENT  

The CAO will weigh effectiveness of supplemental benefits and community resources chosen by the applicant family.  This includes help from a third party.  The combined supplemental help must be able to cover whatever needs that a Diversion payment, alone, cannot cover during the Diversion period.

NOTE: Capturing all expenses during the Diversion period can eliminate the family’s need for TANF later. Reviewing eligibility for available programs and services helps determine if a Diversion payment can meet the total financial need. Before deciding if a community agency’s supplemental benefits are viable, the CAO must receive verification of benefit date, exact nature, and quantity.

The CAO will subtract the value of supplemental benefits—whether in funds or “in kind”—from the total budget group need. This determines the remaining financial need that the Diversion payment must cover. 

137.551 Diversion Income Eligibility

• PROSPECTIVE DETERMINATION

When determining if a family is eligible for Diversion, the  CAO will  treat income the same for Diversion as for TANF – and count both earned and unearned income in the prospective determination, see CAH 168.2. To be eligible for Diversion, a budget group must meet all TANF eligibility requirements, including income eligibility. This means the CAO will count income expected within a Diversion period, for example, from a part-time job, an unearned-income benefit source such as unemployment compensation benefits, etc.  See CAH 150, Income.

EXCEPTION:  When determining TANF or Diversion eligibility, the CAO does not count SSI benefits.

• WILL THE DIVERSION PAYMENT COVER THE NEEDS?

After determining a budget group is eligible for TANF, the CAO must determine if the amount of a Diversion payment – plus all available supplemental benefits and “countable” income expected within the Diversion period -- can cover needs during the Diversion period.  If not, the CAO cannot authorize a Diversion payment.

NOTE:  If a Diversion payment cannot cover needs in the Diversion period, the CAO can count expected SSI income to help cover the needs.

• WHEN DOES INCOME EXPECTED WITHIN A DIVERSION PERIOD COUNT TOWARD COVERING NEEDS?

The CAO should consider income expected within a Diversion period on a case-by-case basis.  Reliable income from an established part-time job, for example, can be counted as helping a Diversion payment meet the family’s need. 

Generally, the CAO will not count “uncertain” income anticipated within the Diversion period as helping to meet the family’s needs.  Uncertain income, by definition, may have a dubious arrival date, may come in an unknown amount, or may derive from an unreliable source.  The income may be one-of-a-kind, sporadic, or questionable. If the CAO counts this income but it never arrives—or arrives in a smaller amount than anticipated -- the family’s financial crisis likely will not be resolved.

NOTE:  Uncertain income expected within a Diversion period may be counted if this income helps make a Diversion payment possible.     When counting income anticipated to arrive within the Diversion period as helping to meet the family’s need – the CAO should proceed with caution and count this income if it will make a Diversion payment possible.  The CAO should request verification of approximate amount and arrival date of the income.

EXAMPLE:  The CAO authorized a September Diversion payment for Mr. Braden, his spouse, and three children to meet needs until Mr. Braden’s job start in early October. The CAO counted his spouse’s small monthly earned income from a job cleaning houses as helping to meet the family’s needs during the Diversion period. The CAO did not count Mr. Braden's “uncertain” $500 inheritance from his uncle’s estate, expected sometime within two months.  

If the CAO does not count uncertain income within a Diversion period as helping to meet the needs, but it does arrive, these funds are considered as helping to meet the family’s unspoken or unexpected needs. The CAO makes no adjustment for this income.

• DOES INCOME ANTICIPATED AFTER THE DIVERSION PERIOD EVER COUNT TO HELP COVER NEEDS?

In most cases, the CAO will not count income anticipated to arrive after the Diversion period. However, in rare situations, the CAO may count this income if it will help resolve the financial need and make a Diversion payment possible. It is important to use discretion in individual cases and require the household to provide verification that the income will arrive timely, and in the amount, needed to help resolve the financial gap in the Diversion period.

EXAMPLE: Ms. Davis and four children need Diversion for October utilities and rent.  A Diversion payment only covers utilities. The landlord verifies permission to wait to pay the October rent on November 20, after Ms. Davis receives a one-time retirement check from a previous job, as documented by the former employer. The CAO can authorize the October Diversion payment, now only required to cover utility bills.

COMPUTING THE DIVERSION PAYMENT AMOUNT

When calculating a Diversion payment amount, the CAO does not consider or subtract a budget group's  earned or unearned income.  A Diversion benefit always equals a full FSA of one, two, or three months, depending on the length of the financial crisis.  The Diversion payment amount equals the appropriate FSA for the family size, multiplied by the number of months the Diversion period extends.  The county of residence determines the FSA amount. See CAH 168, Family Size  Allowance.

EXAMPLE:  The CAO determined a three-month Diversion payment will cover a $1,900 need during October, November, and December for the Tabor family of six.  To make this determination, the CAO checked Chapter 168, Appendix B, of the Cash Assistance Handbook. The county of residence is in Group 2.  A one-month FSA is $670 for a family of six. The Tabors need a three-month FSA, so the CAO multiplied $670 by three, for a Diversion payment of $2,010. This meets the $1,900 need.

EXAMPLE: Mr. and Mrs. Carmel and two children are eligible for a July Diversion payment, which is a full month FSA for four people. The CAO does not subtract Mrs. Carmel’s $150 monthly income from a part-time job.

COUNTING THE DIVERSION PAYMENT FOR OTHER PROGRAMS

A Diversion payment is excluded when determining income and resource eligibility for MA and  SNAP benefits (including expedited SNAP).

137.56 Authorization

The CAO will issue Diversion benefits to eligible budget groups by EBT.  If the applicant does not have an EBT account, the CAO will explain the EBT process and issue an EBT card.

The Diversion benefit is issued as a Non-Continuous Eligibility (NCE) benefit and has the same begin and end date.

A Medical Assistance (MA) eligibility determination should not be delayed or medical coverage disrupted.  Diversion can be opened without closing an MA budget.

SUPPLEMENTAL BENEFITS

When authorizing supplemental benefits, the CAO will set the goal to cover the applicant family’s financial gap efficiently and timely.  If possible, the CAO, first, will authorize supplemental benefits, including MA and SNAP benefits, depending on the applicant’s choices and eligibility. This way, the CAO will know the family’s remaining needs that a Diversion payment must cover.

AUTHORIZATION MONTH

• AUTHORIZATION IN MONTH OF APPLICATION

If an applicant family is eligible for Diversion in the month of application, the CAO uses the date of the application as both begin date and  end date of the NCE, whether the Diversion payment covers one, two, or three months.

EXAMPLE: On December 13, Ms. Masters and child apply for Diversion to cover December and January needs until Ms Masters’ small daycare opens February 5. The CAO authorizes a Diversion payment as an NCE with begin and end dates of December 13 (application date).   

• AUTHORIZATION IN MONTH FOLLOWING APPLICATION MONTH

A budget group may not be eligible for Diversion in the application month if the family does not meet eligibility requirements for TANF or already has received TANF benefits during that month. If a budget group does not qualify for Diversion in the application month but does qualify the following month, the CAO will make the following month the first month of the Diversion period.

REMINDER:  If the budget group is eligible for Diversion during the month following the application month, the CAO uses the first day of the second month as both the begin and end date of the NCE, whether the grant is for one, two, or three months.   Current procedures to issue future NCEs apply.  The CAO needs to consider deadline dates to process the NCE.

EXAMPLE: On June 3, a family applies for Diversion for self  and child to cover June and July needs. The parent’s June income, including three weeks of pay from the last job, exceeds the TANF income limit. The family is eligible for Diversion in July. The CAO authorizes Diversion as an NCE with a begin and end date of July 1 (first day of the month following the application month).      

PROGRAM STATUS CODES

The Diversion period, which accompany categories C and U, are posted on the Eligibility Result Summary screen by the system upon diversion eligibility determination. See Section 137.561.   

NOTE: It is important that both the CAO and the applicant accurately determine the Diversion period before data entry.  A Diversion recipient submitting verification of additional need after authorization cannot extend the Diversion period -- or receive another Diversion payment until 12 months from the NCE begin date. However, if the CAO, in error, enters an incorrect Diversion period, the CAO must submit a Service Now ticket for authorization of additional month(s) of Diversion.

EXAMPLE:  APPLICANT REQUESTS EXTRA DIVERSION MONTH

Ms. Tanner and two children receive a Diversion payment to cover February and March needs until an April job start.  The CAO authorizes a two-month Diversion payment as an NCE with a begin and end date of February 13, the date of application. The CAO worker selects TANF Diversion 2 Month (T2) from the Special Category drop-down in the Cash panel of the Case Non-Financial │Program Request Questions screen. A week after authorization, Ms. Tanner tells the CAO the job will not start until May and asks for another month of Diversion. The CAO cannot extend Diversion. Ms. Tanner cannot receive a Diversion payment again until February 13 of next year.  

EXAMPLE:  CAO SELECTS INCORRECT DIVERSION SPECIAL CATEGORY

In the example above, the Tanners request a Diversion payment for the maximum three months.  In error, the CAO worker selects the incorrect TANF Diversion 1 Month special category instead of the TANF Diversion 3 Month selection.  Because the CAO error resulted in a smaller, incorrect Diversion payment, the CAO must submit a Service Now ticket to  authorize the additional two months of Diversion for a maximum three-month Diversion benefit and any of the approved Reason Codes. 

NOTE:  If the family’s need is greater than a three-month FSA, but the family verifies the balance of the needed funding is available from another source, the CAO can authorize a three-month maximum Diversion payment.

CASE COMMENTS

Both in the case comments and on the Diversion Agreement Form (PA 1793), the CAO notes that the applicant chose Diversion to meet the family’s short-term financial needs. For quality-control purposes, the CAO includes in the case comments all relevant information supporting the decision to authorize Diversion.

Suggested Case Comment entries include the following:

• details of the screening interview

•  reason for applying;

• statement that applicant family is eligible for TANF and Diversion, including information supporting Diversion eligibility determination;

• notation of CAO explanation of and applicant signature on Diversion Agreement Form;

• notation of other forms;

• explanation of supplemental benefits the family chooses;

• pending verification checklist items; and

• any other pertinent information related to the specific applicant.

REAPPLICATION

The purpose of Diversion is to solve a budget group's short-term financial crisis. Diversion is not designed to use yearly to pay ongoing or recurrent expenses. A budget group receiving a Diversion payment must wait a full 12 months to receive Diversion again. The next 12-month period begins with the date of the NCE of the previous Diversion payment – no matter if the Diversion period is one, two, or three months.

EXAMPLE:  Ms. Banks and child receive a Diversion payment for May and June.  The begin and end date of the NCE is May 4 (the date of the application).  Ms. Banks will not be eligible for another Diversion payment until May 4 of next year.

EXAMPLE: In the above example, on May 4, Ms. Banks applies for Diversion but is not eligible until June. The CAO authorizes a one-month Diversion payment for June – an NCE with a begin and end date of June 1 (the first day of the month following the month of application).  Ms. Banks will not be eligible for another Diversion payment until June 1^st of next year.

137.561 Enhanced Client Information System (eCIS)

eCIS DATA ENTRY

Diversion is processed as an NCE with the same begin and end date on Program Request screen. See eCIStance for NCE processing instructions.

On the Case Non-Financial / Program Request Questions the TANF Diversion and correct Diversion period are selected from the drop down under Special Category.

The Diversion reason code must be determined and selected from the TANF Diversion drop down in the Employment section of the Income │Employment and Wages screen. If multiple reasons exist for the need for Diversion, the CAO should choose the primary one.

After all required data entry is made, eCIS will determine non-financial and income/resource eligibility for Diversion. The system will not consider or make adjustments for income received at application or expected during the Diversion months.  The system will determine the monthly FSA amount. The NCE payment will equal a full FSA, up to a maximum of three months. The system will issue proper notice.

Cash Special Category: (Program Request Questions)

• TANF Diversion 1 Month – TD;

• TANF Diversion 2 Month – T2;

• TANF Diversion 3 Month – T3.

TANF Diversion reason codes:  (Employment and Wages screen)

1 – Relocation;

2 - Work Related Expenses;

3 - Transportation Issues;

4 - Child Care Issues:

5 - Housing Issues.

Diversion notices: (system generated)

678 – TANF Diversion Eligible:

Option 1 – 1 Month Diversion;

Option 2 – 2 Month Diversion;

Option 3 – 3 Month Diversion.

679 – TANF Diversion Ineligible:

Option 1 – Employment factor;

Option 2 -  Diversion insufficient to meet needs:

Option 3 – Ineligible for TANF;

Option 4 – Received Diversion within 12 months;

Option 5 – Failure to Sign Required Forms;

Option 6 – Failure to Furnish Required Information.

137.57 Overpayments

A  Diversion overpayment will occur  in the following situations:

• It is later determined that the household was not eligible for benefits.

• Receives TANF benefits within a Diversion period.

• Receives a Diversion payment in a month containing any days when a recipient received cash assistance.

• Receives more than one Diversion payment in a Diversion period (by same ES relative).

• Receives more than one Diversion payment in 12 months.

NOTE:  When TANF and Diversion benefits overlap, the CAO will calculate the resulting Diversion overpayment for full calendar months.  To enter the overpayment for Diversion, the CAO will use Reason Code 59.    See ARRC Data Entry Procedures in Using ARRC. 

OVERPAYMENT BEGIN DATE

If Diversion and cash assistance benefits overlap in the same month, the overpayment begins on  the first day of the Diversion month in which cash assistance is authorized -- through the last day of the Diversion period.

EXAMPLE:  Ms. Hughes and infant son receive a Diversion payment for the Diversion period, April 1 through June 30.  Ms. Hughes spends Diversion funds, moves to another county, and receives ongoing TANF benefits beginning May 15. This means the new CAO, in error, authorized TANF benefits in a Diversion period. Ms. Hughes’ situation does not qualify as an exception. See Section 137.521.  The new CAO files a Diversion overpayment from the first day of the Diversion month that overlaps the TANF benefits (May 1) through the end of the Diversion period (June 30).

NOTE:  When a family moves to another county where the new CAO, in error, authorizes benefits resulting in a Diversion overpayment, the new CAO is responsible for handling the Diversion overpayment and contacting the first CAO for relevant details of the case.

PAYING DIVERSION OVERPAYMENT AND RE-APPLYING FOR DIVERSION

Although a recipient budget group has paid a Diversion overpayment in full, the CAO may not authorize Diversion again until the 12-month time frame from the original date of the Diversion application has expired.

EXAMPLE:  The CAO files a Diversion overpayment because the Lyon family received both Diversion (April 17 application date) and TANF benefits in April.   The Lyons pay the overpayment in full, and their TANF benefits end in June. Later that year, the Lyons apply for another Diversion payment and tell the CAO they are entitled because they paid back the April Diversion overpayment. The CAO cannot authorize Diversion for the Lyon family until April 17 of next year (application date of the original Diversion payment).

WHEN TO FILE AN OVERPAYMENT 

• RECEIVING DIVERSION, THEN CASH  ASSISTANCE DURING SAME MONTH(S)

The CAO may authorize cash assistance benefits in a Diversion period in error – or may make a valid exception. See 137.521. In either case, the CAO must file an overpayment.

EXAMPLE:  The CAO authorizes a Diversion payment for Ms. Burns and two children to cover February, March, and April needs.  On March 10, the budget group applies for TANF and verifies their home flooded the previous day. With BOP approval, the CAO determines the budget group's situation is an exception, authorizes TANF and informs Ms. Burns of an overpayment for March 1 through April 30 (two full months of Diversion). 

• RECEIVING TANF, THEN  DIVERSION IN SAME MONTH

To be eligible for Diversion, an applicant family cannot have received cash assistance any days in the Diversion application month. The budget group may be eligible for Diversion the following month.

EXAMPLE:  When Ms. Web and child move to another county, Ms. Web requests TANF benefits be closed. Ms. Web’s last semi-monthly TANF check covers five days in July.  In the new county, Ms. Web receives a Diversion payment to cover July needs until a new job start. Because the family already received TANF benefits for five days in July, the new CAO should not have authorized a Diversion payment for July. The new CAO files an overpayment from July 1 through 31 (1 full month of Diversion).

• RECEIVING OVERLAPPING DIVERSION BENEFITS

An overpayment occurs when a budget group receives a second Diversion payment within 12 months – or receives two Diversion payments in any given month.

EXAMPLE:  With a January 11^th application, Mr. Willis receives a  Diversion payment for January, February, and March needs.  The same  year, the family moves to another county, and the new CAO authorizes another Diversion payment for September needs. Discovering the family received two Diversion payments in 12 months, the new CAO files an overpayment for September 1 through September 30 (1 full month of Diversion). The family cannot receive a TANF Diversion payment until January 11 of next year.

WHEN NOT TO FILE AN OVERPAYMENT 

• NOT SPENDING DIVERSION FOR INTENDED PURPOSE

Although an applicant does not spend a Diversion payment on the specific needs indicated at application, the CAO will not file an overpayment. If the family returns to the CAO for help with original needs that Diversion should have covered, the CAO will assist the family in the best possible way.

EXAMPLE:  On June 4, Mr. Nickels receives a June Diversion payment to cover the $500 June rent. On June 15, Mr. Nickels  applies for and receives an ESA to pay the June rent to prevent eviction.  Mr. Nickels tells the CAO that the Diversion funds were used for other expenses.  The CAO can authorize ESA with no need for a Diversion overpayment.   

• RECEIVING UNEXPECTED INCOME IN DIVERSION PERIOD

If a budget group receives a Diversion payment, and unexpected income arrives during the Diversion period, the CAO will not file an overpayment. The CAO will consider this income as meeting the family’s unspoken needs.

EXAMPLE:  The CAO authorizes a Diversion payment for Mr.  Angus, and family to cover February, March, and April expenses. On February 20, earlier than expected, Mr. Angus receives a $3,000 income tax refund. The CAO does not file a Diversion overpayment. 

• STARTING NEW JOB EARLIER THAN EXPECTED

If a new job starts earlier than expected, to give the Diversion recipient earned income during the Diversion period, the CAO does not file a Diversion overpayment.

EXAMPLE: The CAO authorizes a Diversion payment for Ms. Matthews and child to cover September, October, and November expenses until work begins at a new candy factory on December 1.  When the factory opens ahead of schedule, Ms. Matthews starts work on October 2. The CAO does not file a Diversion overpayment.

• EXPERIENCING CERTAIN HOUSEHOLD COMPOSITION CHANGES

 If a single-parent family receives a Diversion payment, and the spouse, who was not part of the Diversion household, moves back into the household -- the CAO will not file an overpayment, even if the spouse has substantial income.

EXAMPLE: Mrs. Sims and children receive a Diversion payment to cover April, May, and June needs until employment begins in July. A year ago, Mrs. Sims separated from spouse, whose whereabouts were unknown. On May 10, Mr. Sims unexpectedly shows up, moves in the household, and supports the family with income from a high-salaried job. The CAO does not file a Diversion overpayment.

If a parent who is an ES for a Diversion payment moves from the household during the Diversion period, the children may move into another household with an adult who was not an ES as part of the original Diversion budget group.  The CAO can authorize a Diversion payment for the household with the new caretaker as the ES (if meeting all ES criteria). An overpayment will not apply.

EXAMPLE: Mr. Blank is an ES for his family’s Diversion payment covering January, February, and March needs until self-employment as an exterior house painter resumes April 1. In late January, Mr. Blank relocates to a warmer climate to paint year-round.  Until Mr. Blank can move the children at the school year’s end, they live with their Aunt Jane. To meet February and March family needs until a new job start, Jane becomes the ES for a new Diversion payment.  The CAO does not file an overpayment because Jane was not part of Mr. Blank’s Diversion budget group.

• RECEIVING OVERLAPPING DIVERSION PAYMENTS IN ANOTHER STATE

The CAO does not file an overpayment when a budget group has overlapping Diversion benefits in another state.

EXAMPLE:  Ms. Ritter and child receive a Diversion payment to cover needs for October and November in another state. In late October, the Ritter's move to Pennsylvania and apply for Diversion to cover November needs until Ms Ritter’s new job start. The CAO can authorize this November Diversion payment although it overlaps a Diversion period in another state.     

CALCULATING OVERPAYMENTS

Because a Diversion overpayment occurs when a budget group receives  cash assistance during a Diversion period -- a Diversion overpayment extends from the first day of the Diversion month in which TANF is authorized, through the last day of the Diversion period.  This means that the recipient is responsible to pay back a full month of Diversion for each Diversion overpayment month. A Diversion overpayment is deducted from the cash assistance benefit, to be reduced by up to 5 percent, as specified in the Agreement of Mutual Responsibility (AMR) (PA 1661). 

NOTE: Diversion overpayments cannot exceed a three-month period and will not overlap any other cash overpayments associated with the recipient.

DATA ENTRY OF  DIVERSION OVERPAYMENTS

The CAO will file the overpayment in the ARRC system with Reason Code 59 via ARCAPA.

On ARCAFA, the client error field = N. The category = C or U.  All Diversion overpayments are coded as administrative error, so the overpayment can be recouped from the TANF grant at a rate of five percent.

The automated screen progression will pass the claim of to a new screen, ARCADV CAO must enter the begin date of the overpayment, which is the first day of the month that TANF is authorized within the Diversion period. The CAO must enter the end date of the overpayment, which is the last day of the Diversion period.

Updated April 14, 2023; replacing August 9, 2021