Hawaii Administrative Rules
Title 17 - DEPARTMENT OF HUMAN SERVICES
Department of Human Services
Chapter 680 - ELIGIBILITY AND BENEFIT DETERMINATION
Subchapter 2 - FINANCIAL ASSISTANCE PROVISIONS
Section 17-680-14 - Budgeting of lump sum income

Universal Citation: HI Admin Rules 17-680-14

Current through August, 2024

(a) The gross earned lump sum income shall be added to all other nonexempt gross monthly earned income of the assistance unit and applicable categorical disregards shall be applied in determining the monthly net earned income. When the individual receives a lump sum or retroactive earned income, the earned income disregards shall be allowed for the period during which the income is earned rather than when it is paid.

(b) The gross unearned lump sum income shall be added to the nonexempt gross monthly unearned income of the assistance unit in determining the monthly gross unearned income.

(c) The monthly net earned income shall be added to the monthly gross unearned income in determining the total monthly net income.

(d) When the assistance unit's total monthly net income exceeds the standard of need because of receipt of earned or unearned lump sum income, the following shall apply:

(1) The assistance unit shall be ineligible for financial assistance for the number of months derived by dividing the total monthly net income by the standard of need applicable to the assistance unit in the month the lump sum income is received. The standard of need shall include the needs of the family receiving financial assistance and any other individual whose lump sum income is counted;

(2) All income remaining after this calculation shall be counted as income available in the first month following the period of ineligibility and shall be added to the total net monthly income; and

(3) The period of ineligibility shall begin as follows:
(A) The month the lump sum income is received when the individual who received the lump sum income is an applicant; or

(B) The month following the month the lump sum income is received when the individual who received the lump sum income is a recipient.

(e) The department shall shorten the remaining period of ineligibility when the family submits an application and:

(1) The lump sum income or a portion thereof becomes unavailable to the family due to:
(A) A loss or theft which shall be verified by the police or other law enforcement officials. If the individual or family recovers the total or a portion of the total lump sum income, the department shall consider that amount a lump sum income and shall budget that amount as provided in subsection (d); or

(B) The individual with control over the lump sum income leaves the home with the total or a portion of the lump sum income:
(i) The individual who left the family shall remain ineligible during the period of ineligibility; and

(ii) If the individual returns to the family during the period of ineligibility, the department shall reinstate the period of ineligibility effective the month the individual returned to the family;

(2) The family incurs and pays for medical expenses authorized under the department's medical assistance program;

(3) The standard of need increases due to a cost of living adjustment or an addition to the family unit:
(A) The maximum amount the department shall consider is specified in chapter 17-678; and

(B) The following procedure shall be used to redetermine the period of ineligibility:
(i) Determine changes in the standard of need between the initial period of ineligibility up through the month of application;

(ii) Subtract the amount determined in clause (i) from the initial lump sum or the subsequent revised balance amount; and

(iii) Divide the amount obtained in clause (ii) by the new standard of need in effect the month the individual applies to determine the number of months of disqualification from the initial or subsequent redetermination, whichever is the most current; or

(4) The family incurs and pays for funeral or burial expense for a spouse, a son, a daughter, or a parent.

(f) Other changes in circumstances, not included in subsection (e), shall not alter the period of ineligibility or the income that is considered available in the first month following the period of ineligibility.

(g) The lump sum income received by a nonrecipient stepparent shall be deemed available to the family and considered under chapter 17-676. When the family is determined ineligible due to the nonrecipient stepparent's lump sum income, subsection (d) shall not apply.

(h) The lump sum income received by an individual required to be included in the standard filing unit under chapter 17-647 shall be considered available to the entire standard filing unit.

(i) When lump sum income is received by a member of the assistance unit who is not required to be included in the standard filing unit, the lump sum income shall be considered available to all the members of the assistance unit, except as follows:

(1) If the individual requests that he or she and other members of the household for whom the individual is legally responsible, be terminated from financial assistance, the lump sum income shall not be attributed to the remaining members of the assistance unit beginning with the first month that the individual is not included; or

(2) If the individual and other members of the household for whom the individual is legally responsible, are terminated from financial assistance prior to the month of receipt of the lump sum income, the eligibility of the other members of the assistance unit shall not be affected.

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