Permanent Homeless Assistance

[EAS 44-211.53]

Rules

A PH payment is available once every 12-months to assist an AU that is homeless in obtaining permanent housing or to prevent an instance of homelessness. PH is available to pay for the costs of security deposits, when the deposits are a condition of securing a permanent residence, and may include the actual costs of utility deposits.

Permanent Homeless Arrearages (PHA) Payments

Effective January 1, 2017 the Permanent Homeless Assistance is available once every 12-months to help eligible AUs with payment of up to two months of back rent to prevent eviction. Each month of the rent arrears must not exceed 80 percent of the total TMHI.

Example Example An AU whose monthly rent is $750 applies for Permanent Homeless Arrearage (PHA) to pay two months of back rent payments totaling $1,500. The AU’s TMHI is $1,000 and 80% of the TMHI is $800. This AU is eligible to receive the PHA as the amount of back rent for each month ($750) does not exceed the 80 percent of the TMHI ($800).

Example Example An AU receives a three day pay or quit notice. On 2/15/17, the AU applies for and receives PH in the form of rent arrearages. On 10/16/17, the Au falls behind on rent again and receives another three day pay or quit notice. Unless the AU meets an exception, the AU is not eligible for TS or PH until 2/15/18.

Example Example An AU whose monthly rent is $900 applies for PHA to pay two months of back rent payments totaling $1,800. the AU’s TMHI is $1,000 and 80% of the TMHI is $800. This AU is not eligible for PHA as their monthly rent ($900) exceeds the TMHI ($800).

In order for an AU to be eligible for PHA payments, payment of the back rent must be a condition of preventing eviction.

Before PH or PHA payment is available:

A CW 42 must be completed.
CalWORKs eligibility must be cleared.
Evidence that permanent housing is available must be obtained.
The rent amount for the permanent housing or monthly back rent cannot be more than 80% of the AU's TMHI, without special needs.

Note: A determination must be made that the AU has a continuous period of homelessness caused by the same specific circumstance.

Example Example In a situation where the client reports on the “Statement of Facts for Homeless Assistance” (CW 42) that they have a new job, but will not receive their first check until the future month, since the worker knows how much the client will be paid and when they will receive their paychecks, the income from the new job is counted in the Total Monthly Household Income (TMHI) for determining eligibility for and the amount of permanent HA. In order to consider income that should be included in the TMHI, the Eligibility Worker (EW) must follow general requirements for “reasonably anticipated income.” If the client has already started a new job and he/she knows how much he/she will be paid and when he/she will get their first check, this income can be considered “reasonably anticipated.” and must be included in he TMHI for the family. However, if the client only anticipates getting a job, but hasn’t started working yet, or if he/she has gotten the job, but doesn’t know how much they will be paid or when, that income must not be included as part of the family’s TMHI. The EW must determine how much income is actually going to be available to the family so that the worker can determine whether the family is securing a home they can afford.

Return to Former Residence

Permanent housing assistance is NOT available to assist recipients to return to their most recent former residence, unless there are unusual circumstances beyond the recipients control.

The most recent former residence is defined as the house or same unit in a duplex or apartment complex in which the recipient lived just prior to being determined homeless.
The EW must carefully document the case record if this should occur and deny the request for permanent housing.

Example Example A family left a residence in San Jose in order to take advantage of a job offer in Fresno. When they arrived in Fresno, they found that the job was no longer available, so they returned to the San Jose area, and were homeless. Their former residence became available and was less expensive than anything else they could locate, so they requested permanent housing to move into their former residence. This would be granted due to the unusual circumstances which prompted their return to the San Jose area.

Shared Housing

If it is determined that the AU intends to share housing costs, the AU's share cannot exceed 80% of its TMHI. Shared housing includes, but is not limited to:

Two or more AUs residing together.
SSI/SSP recipients residing with the CalWORKs recipient(s).
An AU residing with an unaided person(s), providing that the AU's share does not exceed 80% of TMHI.

Note: As valid shared housing agreement, at minimum, must include the names of the landlord and the tenant, the address of the unit, the amount of monthly rent, terms of the agreement and the date of occupancy.

If the AU is unable to provide verification of their amount of rent, the EW shall assume that they will be responsible for a prorated share. If the client provides the EW with a statement that their share will be a specified amount, this will be accepted as long as the other persons have the ability to meet their share of the expenses.

PH Payment Time Frames

The EW has one working day from the time the AU provides the following information to issue or deny a payment for PH assistance:

Information necessary for the EW to establish eligibility for CalWORKs.
A completed CW 42.
Evidence of the availability of permanent housing and the amount of rent, which does not exceed 80% of the AU's TMHI. Acceptable evidence may include, but is not limited to:
- A copy of the rental agreement;
- An EW follow-up telephone call to the landlord, with the written consent of the AU;
- A signed statement from the AU attesting to the availability and rent amount of the housing, when both the EW and the AU are unable to get any confirmation.
- The CalWORKs Homeless Assistance (HA) Shared Housing Agreement/Housing Verification (SCD 2575) or a statement from the housing provider if the person is not in the business of renting.

Note: Written confirmation from the landlord is required as follow-up to the telephone call or the statement signed by the AU.

Security Deposits

Effective 8/15/2022, SB 1065 required that PHA be available to pay for last month’s rent and security deposits if they are a condition of securing a permanent residence.

Security deposits include last month's rent and any legal payment, fee, deposit or charge that is required by a landlord as a condition of assuming occupancy. This would include any fees necessary, such as credit check fees, if required by the landlord.

PHA may not be denied when the total amount of the required last month’s rent and security deposit payment together equal more than twice the renters total monthly household income as long as the rent does not exceed 80% of the TMHI,

Utility Deposits

The payment for permanent housing costs may include the actual costs of utility deposits, in addition to the amount allowed for security deposits.

The payment shall cover deposits (turn-on-fees) required for gas, electricity and/or water. Do not include deposits for telephone.
The payment shall NOT include the costs of overdue utility bills.

Note: Some utility companies do not bill their clients until after the utilities have been hooked up. The EW can issue the utilities deposit at a date later than the date for the security deposit payment.

Restricted Payments

HA payments will be restricted and issued to the vendor when the EW determines that mismanagement has occurred. The client must be given an adequate notice of action, advising that their payment will be issued to the vendor including the reason for this action.

The “restricted” payment must be computer generated and mailed to the provider. Do not give the vendor payment to the recipient to hand carry.

Mismanagement of Funds

If the AU is to receive more than one PH payment, the EW shall request verification of the initial amount of PH expended. The failure or inability of the AU to provide verification of the payment of shelter expenses constitutes a presumption of mismanagement of funds by the AU.

When it has been established that there has been a mismanagement of funds, all further HA payments must be issued using the “restricted payment” process.

Example Example Mr. Jones received his security deposit and last month's rent. He returns for payment of utility deposits. He must verify that the first payment was spent for housing deposits, or the utility deposits must be made as a “restricted payment”; payable to the vendor, computer generated and mailed.

Example Example Mrs. Jones has located permanent housing; however, due to her credit standing she must rent the apartment using her sister's name. All requirements are met and she applies for PH. The EW must secure "Sworn Statement" (GEN 853), completed by the client with the entire story written up and signed under penalty of perjury. The PH payment is issued directly to Mrs. Jones.

Examples of Permanent Housing

Example 1

Mrs. Topic has been staying at E & G Motel and has been receiving TS. The motel manager has now determined that Mrs. Topic and the family can stay there permanently. If all the requirements are satisfactorily met, the family may receive PH.

Example 2

Mrs. Brown and her son are homeless and have received their 16 days of Temporary Shelter. 80% of her TMHI is $392. She finds a place which rents for $450 per month. Her father is willing to pay $75 a month towards her rent directly to the landlord, and he notifies the EW of this, in writing. Mrs. Brown's rent is now $375 a month and she meets the criteria for Permanent Housing.

Example 3

Mr. and Mrs. Menu and their two children are homeless. Mr. Menu receives SSI and the remainder of the family is on CalWORKs. 80% of TMHI for the AU is $485. They find a place to rent for $750 monthly. It is assumed that Mr. Menu is responsible for his prorated share, $187.50 ($750 – 4), and the remainder of the family is responsible for their prorated share $562.50 ($750 – 4 = $187.50 X 3 = $562.60). If there is no information to the contrary the EW must deny the AU's request for PH as their share of the rent is in excess of 80% of TMHI. Mr. Menu provides a note that he will be responsible for $300 a month rent and that the AU will be responsible for $450. Since he has income to meet this, it is determined that the AU is now within 80% of TMHI and eligibility for PH exists for the AU.

Example 4

Mrs. Kit is an undocumented alien and has no income to meet her needs. She receives CalWORKs for her two children. 80% of TMHI is $392. She locates an apartment for $500, but since she has no income, it is not feasible to determine that she is able to pay her prorated share of the rent. The EW must deny the Permanent Housing request as the total amount of rent for the AU is in excess of 80% of TMHI. If Mrs. Kit finds a job and receives income of at least $108 monthly, she could pay her portion of the rent. The AU's share would then be $392 and there would be eligibility for PH.

PH Through Housing Authority

When a client locates permanent housing through the Housing Authority, or through another subsidized agency, the PH payment is based upon 80% of TMHI.

Example Example An AU of 3 located housing through the Housing Authority. The monthly rent will be $173. The landlord is charging $500 for security deposit and $25 for the credit check. Since 80% of TMHI for this AU is $485, the EW would be able to issue up to $970 in PH for this AU. In this situation, the client is eligible for $525 in PH.

Security Deposit Refund

If an AU must move within the 12-month time limit specified, the AU shall be allowed to transfer deposits to meet the security deposits for the new residence.

If the EW determines that the transfer was within the 12-month time limit, any refunded deposits shall be treated as liquid resources.
For purposes of reapplication to HA, these liquid resources would not impact HA eligibility as there is no liquid resource limit.

In counting the 12-month period, homelessness begins on the date when the first homeless assistance payment was issued.

Overpayments

If the AU is paid PH in excess of the amount to which they are entitled, it will be declared an overpayment. The EW must take appropriate action to:

Record the overpayment,
Notify the AU, and
Begin adjustment as soon as possible.