This chapter only pertains to TANF.  TANF benefits are usually issued as unrestricted cash grants posted to the recipients' EBT accounts.  The recipient is expected to manage his/her own affairs, exercising the same right of choice in the manner of spending as other members of the community. In situations in which the recipient has demonstrated an inability to manage funds in the best interest of the children in the group, the benefits may be restricted.  The restriction may be voluntary or involuntary and benefits may be issued as rental vendor payments or protective payments.

 

 

 

 

 

A protective payment is a restricted TANF payment paid to a person other than the parent or caretaker relative who has shown interest in the welfare of the TANF children.  When the need for a protective payment has been established, a protective payee must be selected.  The protective payee acts for the recipient in receiving and managing the TANF benefit.  In order to assign a protective payee to a case, the head of the TANF group must agree to the arrangement.  IMA cannot assign a protective payee to a case without the head of the group’s consent.

 

The protective payee may be a friend or relative of the TANF family, or a staff member of a private agency or other appropriate organization which will act on behalf of the best interest of the children. Staff of the Department or other persons whose selection might create a conflict of interest, such as landlords or other persons providing goods or services to the recipient, may not be named as protective payees.

 

Third parties, including individuals who have not been paid for services rendered, charitable organizations, clergy, or family members, can request that the Department assign a protective payee. A payee cannot, however, be assigned without the consent of the head of the group.

 

A protective payee should be responsible and dependable and exhibit an interest in and concern for the welfare of the family.

 

Assignment of a protective payee is voluntary; therefore selection of the payee must be made in consultation with the recipient.  FSA staff may also be consulted, if they are providing services to the family.  The recipient must provide written consent to the assignment of the protective payee.  The protective payee should sign an acknowledgment that indicates that s/he will use the family’s funds in the family’s best interests.

 

 

 

Continuation of the protective payee assignment must be discussed at each TANF eligibility review. Written consent of the recipient must be obtained at each review to continue the assignment.

 

 

 

A Rental Vendor Payment (RVP) is a restricted TANF payment made to an individual or organization providing living accommodations to a TANF recipient.  The purpose of the RVP is to reduce the frequency in which TANF families face eviction or the threat of eviction by assisting recipients in meeting their monthly rent obligations.

 

RVPs can be made by the Department on a voluntary or involuntary basis.  In both cases, the TANF benefit is split.  A direct deposit is electronically issued directly to the bank account of the landlord or entity providing housing to the TANF group for the amount of the rental charge.  The balance of the TANF benefit (the grant level minus the RVP) is posted to the recipient’s EBT account.

 

• The purpose of the agreement is to assist the recipient in paying the rent regularly
• The agreement will initially be in place for six months
• The payment will be made directly to the landlord in the amount of the full rental obligation
• The agreement is voluntary and can be terminated prior to six months
• If the recipient chooses to terminate the agreement, s/he must provide 30 days advance notice and sign a request to withdraw from the rental vendor program
• The recipient’s benefit after payment of the rent charge must be $10 or more
• The execution of the agreement requires notifying the landlord of the tenant involved
• The agreement should not be established, if the recipient does not want the landlord to know who is paying the rent or that the family is receiving TANF.

 

• A description of the events which took place, including the months and years in which non-payment of rent, or late payments, occurred
• An explanation of how rent was paid, if it was paid late.  For example, if the rent was paid late and the complainant knows the rent was paid by contributions made by relatives or charitable organizations, that information should be on the complaint filed.
• Any unusual circumstances the complainant knows about that affected the recipient’s ability to pay rent.

• Review the identifying information to verify that the individual referred to in the complaint receives TANF and that the TANF payment minus the full rental charge is at least $10
• Notify the complainant if the complaint is incomplete or does not meet the criteria for consideration under the RVP
• Send a notice of the complaint to the recipient, and his/her SSR.  The notice must inform the recipient that the complaint has been filed and that s/he has 15 days to provide a written response to the complaint, and that a mandatory RVP will be established if the recipient is found to be mismanaging the TANF grant to the detriment of the children in the family
• Submit to the Administrative Support Office a copy of the complaint, the notice sent to the recipient, and any correspondence from the recipient  (if any) and any observations the RVP staff deem important to share about the case (these observations are recorded on Form 886).

• Did the family have an emergency or extraordinary event for which it was appropriate to spend the available funds?
• Did expenses for necessary items exceed the recipient’s income?  If so, did the recipient make reasonable choices about the purchase of goods and services?
• Did the family withhold payment as a reasonable exercise of consumer rights when there is a legitimate dispute as to whether terms of an agreement have been met?

• Repeated evictions
• Repeated failure to pay rent or utilities resulting in threat of eviction and utility cut offs
• Improper clothing and feeding of the children which may result in frequent absences from school
• An inability to plan expenditures so that the funds last through the month which leads to frequent referrals to private charities.