Table
of Contents
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The Restricted Account section
includes the following information:
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Restricted Accounts
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An AU, which
includes a recipient, is allowed
to retain cash reserves in one or more restricted accounts at a financial
institution. There shall be
no limit to the amount of money that can be saved in a restricted account. These funds are
in addition to the resource limits for the assistance unit (AU) indicated on CPG
42-200.B Property Resource Limit section.
Funds withdrawn
from restricted accounts can be used for: ·
Buying
a home; ·
Any
education or job training expense; · Starting a business; or ·
Costs associated with securing permanent housing or to
make rent payments to overcome an episode of homelessness. Reapplying for
CalWORKs If the AU is discontinued and later reapplies for CalWORKs, the funds held in a restricted account will no longer be exempted as a resource. |
Written
Agreement
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Before an
account can be designated as “restricted” the AU must sign an agreement which
explains the requirements, restrictions and penalties. The written agreement must include a
statement which advises recipients to first retain resources close to the
resource limit to pay for unexpected expenses or emergencies before they
enter into a restricted account agreement. The written
agreement for the restricted account terminates when: ·
The AU is discontinued from CalWORKs;
or ·
The restricted account is closed; or ·
The AU does not provide timely
verification of the account information as specified in the Account Information section; or ·
State or federal law changes the conditions
or no longer permits these restricted accounts. |
Non-Qualifying
Withdrawals
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Non-qualifying withdrawals include: Noncooperation - The AU
fails to expend or provide verification of a withdrawal or expenditure within
the 30 day time limit, unless good cause exists; Nonallowable
purpose - The AU withdraws or spends the
funds for purposes or expenses other than those allowed; or Receipt of
interest income - When the
interest payment was not deposited directly into the account When the HSS determines that a nonqualifying withdrawal exists, the HSS shall calculate a period of ineligibility (POI). |
Excess
Resource
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When
good cause does not exist, the case must be reviewed for excess resources.
When the resource limit is exceeded the AU must be discontinued with timely
and adequate notice. |
Shortening the Period Of
Ineligibility (POI)
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The
HSS will shorten the period of ineligibility when the AU reapplies for aid
and the standard of need increases. An
increase in the standard of need includes any increase in AU size, general
increase in the MBSAC (COLA increases), or a determination that the
ineligible family would be eligible for a special need item as specified in
CPG 44-200. To
shorten the period of ineligibility due to an increase in the standard of
need, the HSS will: A.
Identify
the restricted account balance used to calculate the original period of
ineligibility. B.
Identify
the original MBSAC plus any special needs allocated to the ineligible family
unit and multiply it by the number of ineligible months prior to the
increase. Subtract the total from the
amount in step A above. C.
Divide
the result calculated in step B above by the increased standard of need. Round down the result to the nearest whole
number. D.
The
revised period of ineligibility is the final result in step C above plus the
number of ineligible months prior to the increase. E.
The
revised period of ineligibility shall begin in the same month as the original
period of ineligibility. Example: An
AU of two is in a period of ineligibility due to a nonqualifying withdrawal.
The pertinent facts of the period of ineligibility are as follows:
*
MBSAC amounts are subject to change.
The
AU size increased to three people in February and the need standard increased
to $1,097*.
*
MBSAC amounts are subject to change.
The
prior period of ineligibility has been reduced from three months to two
months; January and February are the ineligible months. |