Par.1.  Material Transmitted and Purpose – Transmitted with this Manual Letter are changes to Service Chapter 415, Low Income Home Energy Assistance Program.  This manual letter supersedes IM 4995.

CHAPTER 10

415-10-10-05-05 Conservation Referrals,  Changed: Amounts allowed for furnace and chimney cleaning (#5a)

5.	Specific services, as needed, will be provided by the Comprehensive Energy Conservation Program or, if the applicant prefers, arranged to be provided by a qualified private business of the applicant's choice. Such services may include:

a.	Chimney (up to $75 100/heating season) and/or furnace cleaning and tuning (up to $75 100/heating season);
b.	Minor furnace repair or replacement of inefficient and/or inoperable heating systems**;
c.	Minor home repair, insulation, and/or the complete range of Department of Energy (DOE)/LIHEAP Weatherization Assistance.**

CHAPTER 15

415-15-10-15 Assets – Verification,  Changed: Asset Limits

The reporting of real and personal property assets is to be accepted on a self declaration basis under penalty of perjury. The county social service board may verify any assets which appear to be questionable and suggest under the "prudent person concept" that further inquiry or documentation should be required. The county social service board is discouraged, however, from routinely verifying all reported assets for all applicants as this may unnecessarily delay the processing of the application and cause undue hardship to an applicant who is in need of heating fuel.

Many applicants may not understand what assets are counted. If the reported assets are greater than $8000 10,000, (plus $2000 5,000 for each household member 60 years of age and over) the eligibility worker shall discuss the assets with the applicant to be sure reported assets are in fact counted assets.

CHAPTER 25

415-25-05-05-10 Medicare Premiums – How to Deduct,  Changed: How to deduct Medicare premiums

The amount of the Medicare Part B premiums can be deducted from gross income, unless the Qualified Medicare Beneficiary Program or the Special Low-Income Medicare Beneficiary Program pays the premiums. the individual has their premiums paid through the Medicare Savings Programs (QMB) (SLMB) & (QI1).

The actual out-of-pocket premiums for Medicare Part D may be deducted if the individual is responsible for paying them.

Alternative 1:

Since Social Security checks usually have Medicare premiums deducted already, and since it is often difficult to verify the amount of the Medicare premiums, it will NOT be necessary to separate out the amount of the Medicare premiums to determine the gross amount of the social security check. Enter the amount of the social security check in Section III of the worksheet, SFN 435, and verify it. Do NOT enter the amount of the Medicare premium in Section II-A. Use the explanations column to explain that the amount of the social security check listed is net

Alternative 2:

If you do separate the amount of the Medicare premiums, enter the amount of the gross social security check in Section III and enter the amount of the Medicare premium in Section II-A.

Whichever method is used, an explanation must be entered in the explanation column.

The Bendex screen makes information available regarding the income that a person receives from Social Security and also tells you if the state of ND pays the Medicare premium (See Premium Payer if ND is there the premium is paid by ND Medical Assistance).

If the ND is there a deduction cannot be made for the Medicare premium and the gross amount must be used to determine Social Security income.  If the ND is not there then the premium amount can be deducted from the gross Social Security check.

If using TPQY look directly under “BUYIN” data under Part “B” and there is an ND displayed in the “Premium Payer” field, then the state is paying the premium for Medicare and it cannot be deducted.

 BEIN                        BENDEX INQUIRY                        061807 11:03
                          LAST UPDATE 02/28/07                     LINDA E
 NAME: DOE, JANE
                                      SEX: F   DOB: 04/18/1964
                                      ENTITLE DATE: 05/98  DISABLE DATE: 11/82
 SSN: 999999999
 CLAIM #: 999999999C1                 PAY STATUS CODE: CP CURRENT PAY
 CROSS-REF CLAIM #:
 
 MEDICARE DATA
 PART A COVERAGE:  YES                GARNISHMENT WITHHELD:
   START DATE:   05/00                GROSS BENEFIT:               349.00
   STOP DATE:                         MONTHLY OVERPYMT DEDUCTION:
   PREMIUM AMT:                       PART "B" PREMIUM DEDUCTION:
   PREM. PAYER:                       NET BENEFIT PAYABLE:         349.00
 
 PART B COVERAGE:  YES
   START DATE:   05/00
   STOP DATE:
   PREMIUM AMT:  93.50
   PREM. PAYER:     ND (Means ND pays Medicare health premium. In this case, the premium cannot be used as a deduction)
 
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415-25-05-10 Income Eligibility Levels,  Changed: Income limits for 2008

The income eligibility limits for heating assistance are based on 60% of the North Dakota median income. The monthly income eligibility levels are determined by dividing the annual amount by 12 months and rounding off to the nearest dollar (indicated by *).

Therefore, the adjusted gross income eligibility limits for FY2007 FY2008 are as follows:

Household
Size	Annual
Eligibility
Limit	Monthly
Eligibility
Limit	
1	18,697	1,558	
2	24,450	2,038	
3	30,203	2,517	
4	35,956	2,996	
5	41,709	3,476	
6	47,462	3,955	
7	48,541	4,045	
8	49,619	4,135	
9	50,698	4,225	
10	51,777	4,315	
11	52,855	4,405	
12	53,934	4,495	

415-25-05-15 Annualizing Income,  Deleted: Part of #1

To determine a household's benefit level, LIHEAP compares a household's income to its estimated annual heat cost. This means that income must be converted to a yearly figure or "annualized." The LIHEAP Application (SFN 529) asks the client for information about his or her income in the current month, the previous month, and anticipated income for the following month. The difference in these figures will determine the method of annualization to be used. (References to the "current month" or the "month of application" will also apply to the month during which a reportable change requires a recalculation of the LIHEAP Share Percentage. [See 40-05.]

If the income between consecutive months is less than $400 yet not exactly the same each month use the month of application and annualize.
1.	If the difference between the current month's income and the previous month's income is less than $400, and if the household’s reported income in the current month is not at or near zero, the income would be annualized by the most appropriate of the following methods:
a.	Regular income - This would include anyone on a fixed income, TANF recipients, wage earners who have not recently changed jobs, etc. Income in this category would NOT be averaged (See "B," of this section), even though the payroll schedule results in an additional paycheck during every two weeks will sometimes receive three paychecks in one month.
Multiplying a monthly payment by 12; a weekly payment by 52; a biweekly payment by 26; and a semi-monthly payment by 24 does annualization.
b.	Periodic income - Examples would include interest payments, land rent, farm payments, and some types of seasonal employment.
To annualize, multiply the amount received in a single payment by the number of times it is received in a 12-month period. Sometimes, payments for farm or other seasonal labor may fit into this category if the laborer is not paid regularly as the work is done.
c.	Annual employment contracts - These would typically, but not necessarily, apply to employees of a school district.
The total amount of income specified in the contract would be included, regardless of the amount received in the current month.
d.	Business/Farm Income - This would include most business and farm income, as reported on and verified by the most recent tax forms available.
To annualize, use the income from the most recent tax form that reduces gross income by the amount of necessary operating expenses. Use this amount regardless of the amount received in the current month. Each business/farm income is to be reported and computed separately. A reported income loss will be revised to zero income before adding to the income of another business or to other sources of annualized income.
2.	If the difference between a household member’s income (from a single source) in two consecutive months is $400 or more, that member’s income (from that source) would be annualized using a three-month average as follows:
a.	The income from the month preceding the month of application,
b.	The income from the month of application, and
c.	A projection of income for the month following the month of application
•	If income for the following month is known and verifiable, that income will be used. ("Known and verifiable" can include TANF, Unemployment Compensation, salaries and the like. It can also include the receipt of one paycheck [in the application month] from a new job, provided that it can be determined that the paycheck is representative of wages and hours in the following month.) If there is terminated source income, include the income in the three-month average.
Example:
Application month is October. Household’s job ends October. Use the regular earned income (from that source) for September. For October, use the actual amount received for that month. If there is no income predicted for November, then use 0.00. If there is income predicted for November, use the client’s best estimate for income. Total the three months and multiple by 4, and then you will have the annual income. The second example under 25-05-15-10 is a good example of how to handle terminated source income.
•	If income for the following month is not known or cannot be verified, the income in the month of application will be used twice in determining the three-month average.
The earned income deduction will be applied to the sources of income to which it is appropriate. Then, the three monthly figures will be totaled, and the total multiplied by four to arrive at an annual figure.
NOTE ON AVERAGING: Averaging is one method of determining a household's benefit level. The household must still be income eligible during any month for which LIHEAP benefits are to be paid. Income ineligibility during the month of application automatically disqualifies the household for that month and future months (See 415-30-20). Income ineligibility in the month before the month of application does not automatically disqualify the household, but benefits cannot be paid for that month. In other words, if averaging is called for, the prior month's income will be used in the averaging calculation, even if the household cannot receive a benefit for that month.
EXAMPLE:
Income Limit (monthly):	$1,000
Last Month's Income:	$1,200
Current Month's Income:	  $ 600
Anticipated Income:		  $ 600
Averaging would be used, resulting in an average of $800 per month.
Averaging may also be appropriate if the household’s income is at or near zero.
3.	Whenever it can conclusively be demonstrated that the household income annualized in the manner described in "A" and "B" above is not the best indicator of the household's ability to pay their fuel costs, the State Program Administrator may approve or promulgate an alternative method that is reasonable and equitable.
NOTE: A $400 difference caused solely by an additional check from a regular source of income does not trigger averaging.

Example: Joe's Income - he applied in December.
November $350 - regular pay
December $800 - regular pay because of extra paycheck
January $350 - regular pay
This case is not averaged just because of the extra paycheck in December (since there are 5 pay periods).

415-25-05-20-20 Other Income,  Added to: # 9 Mineral leases. 

Income from all other sources not excluded by 415-25-05-30 must be included in the determination of the household's income.

1.	TANF, Diversion Assistance.

2.	Pensions dispersed upon retirement according to the pension plan (normally as monthly checks) from all sources such as railroad, veterans, social security, SSI, and private pensions.

3.	Benefits such as unemployment compensation, worker's Compensation, veteran's compensation, and union compensation during strikes.

4.	Dividends and interest from investments and trusts.

5.	Disability benefits.

6.	Need-related veterans benefits.

7.	Child support and alimony payments. It is mandated by LIHEAP that the Child Support Enforcement System must be used to determine child support income.

8.	Individual Indian monies. (See 415-25-05-30 #20, n.)

9.	Mineral leases

Payments received from mineral leases are included as income. Bonus payments on mineral leases (usually a one-time payment) are also to be added to the annual income. Use the amount as shown on the most recent tax report if self-employed and a tax report is used. If a tax report is not used, the bonus is considered a one-time only payment described in (14) below. 

Below is an example of a lease payment that is made in the first year of a five-year lease.

EXAMPLE: If the lease payment for a five-year lease is made during the first year the status as income producing continues in years 2-5 even though there are no payments.

10.	Income-producing property

When calculating income from income-producing property, cash expenses of producing income and maintaining the property can be deducted. However, when the household obtained a loan to make a purchase and is making purchase payments on this property, ONLY the amount of the interest paid for the loan may be deducted as an expense, but NOT the amount paid on the principal. An example of this is CRP land.

11.	Department of Defense Subsistence Supplemental Allowance for members of Armed Forces.

12.	Income from rental of property

Profit from royalties or rental of property (gross receipts minus expenses) must be included in the determination of annual income. If the profit from royalties/rentals is being taken from IRS forms (Schedule E or Form 4835), it is necessary to add depreciation back in. If the household does not report royalty/rental income to the IRS, the following types of expenses may be deducted: advertising, cleaning and maintenance, insurance, interest, legal or professional fees, repairs, supplies, taxes (but not income taxes), utilities.

If the rental property is part of the household's primary residence and expenses for each portion of the property have not been separated, the household must provide a measurement of the rental portion and the household's living unit in order to establish a percentage of the expenses of the entire property, which may be deducted from gross rent receipts.

13.	Income from Contracts for Payment

The interest portion of payments received for any contractual right to receive payments (such as Contracts for Deed) must be included in the determination of annual income. If there are any costs to the deed holder, they may be subtracted from the interest earnings. The portion of the payment that reduces the principle of the contract is income from the sale of the property involved and is considered under the asset limitation.

14.	Inheritance and insurance settlements, and annual, periodic, or one-time payments (but not income from sale of property) received from any source between the previous June 1 and the following May 31, UNLESS specifically excluded under 415-25-05-30.

15.	Profit from estates or trusts.

16.	Profit sharing proceeds from Tribal Gaming operations.

17.	Internships, stipends, and other income earned by higher education students that is compensation for work performed, with the exception of wages earned under the Federal Work Study Program. (See 415-25-05-30, #16)

18.	Military reenlistment bonuses can be paid as lump-sum payments or up to 50% of the bonus amount as an initial payment with the remainder paid in equal annual payments. It is up to the branch of military service to decide which military grades/series get the bonus and how much they get. Verification of the bonus and payment must be obtained.

If a household receives a lump-sum reenlistment bonus, it is exempt from income as a non-recurring lump-sum payment. The bonus is counted as a resource in the month it is received.

If a household receives half of the bonus in a lump-sum with the remainder paid in equal annual installments, the lump-sum and the annual installments are annualized and counted as earned income.

19.	Subsidized Adoption payments.

20.	TANF Kinship Care children must be included in the household, therefore, TANF monthly maintenance payments must be counted as unearned income.

Income Not Counted 415-25-05-30,  Added: # 20ad.

1.	Cash over which the household has no control such as:
a.	Reimbursement for expenses incurred in connection with employment.
b.	Reimbursement for other expenses incurred, such as for medical expenses.
c.	Payments made to others on the household's behalf, provided that such payments were not directed by the household, such as Housing Assistance Program (HAP) and other subsidized housing authorities, General Assistance (GA) Supplemental Payments, Energy Crisis Assistance Program payments, or mortgage payments directed by a divorce decree to a 3rd party.
d.	Payments made directly to the household by Housing Authorities such as the HAP.
2.	Cash which is administratively difficult to consider or compute, including but not limited to:
a.	Small (under $360/year) or irregular contributions from relatives or friends. "Irregular" is any income that arrives at unscheduled intervals.
b.	Small income (under $360/year) from sale of craft items, rummage sales, odd jobs, et cetera.
c.	Irregular Income
d.	Gambling and Bingo winnings. (Note: may be held as a countable asset at the time of application.)
3.	Loans, including educational loans. (See 415-25-05-05, Item 4.)
4.	TANF grant amount for students away at college (the student is not counted as a member of the household either).
5.	Income tax refund and earned income tax credit.
6.	Retroactive payments such as from Social Security (government payments), when the on-going amount of such payments is reflected in the current month's income.
Example: An applicant, applying in October, began receiving $250/month for Social Security Disability. He also received in October a check of $1,000 ($250 x 4) as retroactive payments for June through September because his disability eligibility was established retroactive to June. The $1,000 retroactive payment is NOT added to his annualized income, but his $250 monthly income is annualized and counted.
7.	Income from the developmentally disabled Family Home Subsidy. See 415-25-05-60 (3).
8.	Reimbursements for meals from Heartland or other such programs for meals provided by day care providers.
9.	JOB incentive payments.
10.	The value of free or reduced shelter costs that are received as a part of an employment agreement (no option), a gift, or through a governmental housing assistance program.
11.	The first $100 of monthly board and room payments; or the first $25 of monthly "room only" payments (See 415-25-05-45).
12.	Children's earned income (see 415-25-05-50).
13.	The special needs portion of a TANF grant.
14.	Reimbursement for transportation, day care, and other employment or training costs under JOBS.
15.	TANF Transitional Care payments.
16.	All educational loans, grants, scholarships, wages earned under the Federal Work Study Program, regular contributions from parents or any other income made available on condition that the recipient continues as a bona fide higher education student.
17.	The portion of a loss settlement obligated to replace the loss, pay off indebtedness, or otherwise obligated by the loss. Any portion of the settlement above indebtedness or replacement cost is unobligated and available and counted as unearned income.
18.	Payments made to a household providing adult or child foster care. (See 415-25-05-60, #'s 2 and 5).
19.	Any amount necessary for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act (SSI) will NOT be counted as income to the household. "PASS" plans allow people with disabilities to set aside specified amounts of income from SSDI, wages, etc., to build a source of funds to fulfill a self-support plan. The funds may be accumulated to purchase adaptive equipment and other services that will remove barriers to employment. The funds set aside are not counted as income when SSI eligibility is determined so SSI benefits can be used for living costs to replace other funds set aside in the PASS Plan.
20.	Other payments to be disregarded.
a.	Payments to volunteers.

Payments other than wages for supporting services or reimbursement of expenses to foster grandparents, senior health aides, senior companions, Service Corps of Retired Executives (SCORE), Active Corps of Executives (ACE), and any programs under Titles II and III of Section 418. Public Law 93-113.

b.	Assistance to individuals other than wages, under Older Americans Act of 1965, Public Law 95-478.

c.	Supplemental Food Program for Women, Infants and Children (WIC), Public Law 94-105, and the National School Lunch Program, Public Law 90-302.

d.	Work Force Investment Act (WIA) payments made to dependent children and below who are attending an elementary school or a high school half time or more are not counted.

e.	Wages, allowances, or reimbursement for transportation and attendant care costs under Title VI of the Rehabilitation Act of 1973 (Title II, Public Law 95-602).

f.	Value of Food Coupons, Public Law 95-113, Food Commodities, Public Law 74-320.

g.	Per capita payments to Native Americans will not be counted as income under P.L. 97-403. (See 25-10-10-05 #5 for information regarding assets.)

h.	Payments received under the uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 (42 USC 4636).

i.	Payment to volunteers under the Domestic Volunteer Service Act of 1973 (42 USC 5044 (9) (i)). This includes any payments to VISTA volunteers.

j.	Payments received under the Civil Liberties Act of 1988 by American-Japanese citizens displaced during World War II shall not be counted as income. (Public Law 100-383, Section 105 of Title I)

k.	Payments received under Public Law 101-201 Section 1 (a) and P.L. 101-239, Section 10405 regarding Agent Orange settlements.

l.	Payments received under the Aleutian and Pribilof Islands Restitution Act, Public Law 100-383, Section 206 of Title II for restitution made to Aleuts who were relocated by the U.S. Government during World War II.

m.	Payments made for major disaster and emergency assistance under the Disaster Relief and Emergency Assistance Amendments of 1988, Section 105 of Public Law 100-707 (42 USC 5141 et seq.).

n.	Up to $2,000 per year of income received by individual Native Americans (Individual Indian Monies) which is derived from leases or other uses of individually owned trust or restricted lands. Omnibus Budget Reconciliation Act of 1993. (See 415-25-05-20-20 number 8.)  Client statement will be accepted as verification of the amount in an IIM account unless one of the following applies.

1.	the amount is more than $2000 in a year.
2.	the client statement is questionable.
3.	the IIM account includes countable income such as inheritance, bonuses, and other income that is not derive from leases, trust, or restricted land.

o.	Payments received under Public Law 103-286, Subsection 1 (a) from a foreign government for restitution made to victims of Nazi persecution.

p.	Community Services Block Grant (CSBG) and Social Services Block Grant (SSBG) Flood Relief Program monies to assist in the needs of urban residents who experience property damage due to flooding. These monies are considered a reimbursement for a past or future expense.

q.	Payments received from Americorps for education award monies up to $4,725 will not be counted as income. Monies received as a "living allowance" (stipend) of us to $7,500 will not be counted as income. Americorps is administered by a corporation established by the National and Community Service Trust Act of 1993 (NCSTA), which amended the National and Community Service Trust Act of 1990.

r.	Educational assistance paid directly to a family by the Fort Berthold Three Affiliated Tribes under the Carl D. Perkins Vocational and Applied Technology Education Act to help single parents pay for some of their child care costs. These payments are not considered as income, and the corresponding child care costs will not be allowed as deductions.

s.	Services provided to families under the Family Investment Center Program through the Department of Housing and Urban Development (HUD). Service includes such things as child care, employment training and counseling and similar services. The exclusion does not include wages or stipends paid under this program. [42 USCS Section 1437t(i)]

t.	Compensation made to crime victims under the Crime Act of 1984. (P.L. 103-322)

u.	Payments made pursuant to the Confederated Tribes of the Colville Reservation Grand Coulee Dam Settlement Act. (P.L. 103-436)

v.	All income, allowances, and bonuses received as a result of participation in the JOBS Corps Program.

w.	Payments to child of Vietnam veterans who are born with spina bifida, or to children of women Vietnam veterans who are born with certain covered birth defects, under 38 U.S.C. 1805 or 38 U.S.C. 1815. 

x.	Payments to children who receive income through the subsidized Guardianship Program.

y.	Money received by the LIHEAP household as a result of a benefit or fund raiser. The money received should not be commingled with other household accounts.

z.	Additional pay received by military personnel as a result of a deployment to a combat zone is disregarded in determining eligibility. The individual's regular military pay continues to be countable income.

aa.	TANF supportive services that the TANF Kinship Care household may receive represents a reimbursement and is not counted as income.

ab.	Payments for care and maintenance of non-household member. When monies are received and used by a LIHEAP household for the care of a non-household member, the portion of the single payment that is identified as belonging to the non-household member is excluded.

ac.	Reimbursement for transportation, day care and other employment or training costs under Diversion Assistance.

ad.	Tax exempt portions of payments made as a result of the Alaska Native Claims Settlement Act.

415-25-10 Asset Eligibility,  Changed:  Asset information

Households applying for or receiving fuel assistance under LIHEAP may have real and personal property assets not to exceed an equity value of $8,000 10,000, (plus $2,000  5,000 for each household member 60 years of age and over). "Equity" is defined as the fair market value less encumbrances.

415-25-10-05-05 Real Property NOT Counted,  Added:  Clarification in #2.

1.	Primary residence

A home which is owned and occupied by a family as its main place of residence is not subject to any limitation in value. A house, an apartment unit, duplex unit, or a mobile home, if used by the family for living purposes, is considered a "primary residence."

A "primary residence" is further defined as including the land on which it is located provided the acreage does not exceed 160 contiguous acres, if rural, and two contiguous acres, if located in town. Acreage in excess of these amounts, as well as a house, apartment unit, duplex unit, or mobile home owned but not occupied by the family are to be regarded as real property with equity which is an available resource to the family.

In some cases, city zoning laws prohibit a home owner from sub dividing his property below a minimum acreage. In these cases the primary residence may have more than two contiguous acres, not to exceed the minimum acreage required by city zoning laws for the section of the city in which the home is located.

2.	Real property that is being farmed, produces rent, or is otherwise operated as a business by the applicant household is NOT counted in the determination of assets. The real property must be producing income commensurate with prevailing rental or leasing rates in the community. However, the income produced by this real property is included under the income limitations for eligibility.

3.	Contractual rights to receive money payments, such as the face value of a note, mortgage, or Contract for Deed (see - Contracts for Payment 415-25-10-25)

4.	Real property that has been demonstrated to produce little or no income despite "good faith" efforts of the owner to rent and/or sell at acceptable community rates.

"Good faith efforts" may include but not be limited to repeated attempts to sell and/or rent the property at an acceptable community rate through classified ads, listing the property with appropriate realtors, banks, etc.

Any property NOT counted under this provision must be carefully reviewed at least annually to be certain the household is making every reasonable effort to produce income from the property.

415-25-10-10-05 Assets - "Liquid",  Under “Liquid Assets” NOT Counted: Deleted: Part of #2; Deleted: #9; Added: #16 and renumbered paragraphs

"Liquid asset" is defined as any resource which can readily be converted to cash, and includes cash on hand, checking accounts, savings accounts, stocks (see 415-25-10-50), bonds, pension plans which do not involve the household member in a contractual relationship with non-household members (for example, IRA's, Keogh plans, and Simplified Employer Pension Plans), Individual Indian monies, and other negotiable instruments. Note that certain large deposits designated for future living expenses may temporarily distort the liquid assets (#8).

To arrive at the countable cash value for any account or plan that imposes penalties for early withdrawals, subtract the amount of the penalty (if any) from the value of the account or plan.

"Liquid Assets" NOT Counted:

1.	Cash surrender and loan values of life insurance. NOTE that if a life insurance policy is cashed in, proceeds are NOT considered income. Instead, it is treated as a conversion of an asset, and only those proceeds, which have been converted to a countable asset, will be counted (as an asset).

2.	The cash value of pension plans or funds that involve a contractual agreement with non-household members, regardless of whether the person is currently employed. Contractual agreements normally refer to retirement plans with employers. If withdrawn, they become an available asset in the month received.

Examples:

State Retirement,Teachers Retirement,
457 plans,
401(k) plans,
the Federal Employee thrift savings plan,
403(b) Plans, and
401(c) (18) plans.

NOTE: The cash value of pension plans or funds which do not involve a contractual agreement with non-household members are counted. Some examples include Keogh plans and Individual Retirement Accounts (IRA's).

Annuities may fall into either category.

3.	Savings resulting from earnings plus up to $250 resulting from gifts or other sources of each dependent child under age 19 who is still in elementary or high school.

4.	The following loans held as liquid assets provided they are held in a separate account:

•	Business/farm operating loans for the current operating year only
•	Student loans for the current school year only

5.	Per capita payments to Native Americans will NOT be counted indefinitely, as long as they are held in a separate account. If they are commingled with other funds, they will NOT be counted for six months from the date they are commingled, then counted as an available asset.

6.	Payments received under the Civil Liberties Act of 1988 by American-Japanese citizens displaced during World War II. (Public Law 100-383, section 105 of Title I)

7.	Payments received under Public Law 101-201, section 1(a) and P.L. 101-239, section 10405 regarding Agent Orange settlements.

8.	Periodic or annual current income that exceeds a single month and is held in a liquid asset for future monthly living costs.

9.	A maximum of $5,000 of an asset designated by the household expressly to pay for burial costs of members of the household who are age 60 and above. Such assets will be treated as follows:

a.	Any amount in excess of $5,000 per household member (age 60 and above) will be counted as an available asset to the household.
b.	Any withdrawal from the asset will be treated as an asset conversion. (See 415-25-10-25)

c.	Interest accrued to the account will be considered part of the asset; interest paid to the household will be considered income. (See 25-05-20-20, #4)

d.	The asset designated for burial purposes cannot be co-mingled with other assets that are not burial accounts.

Example: If a household has a $10,000 account that is not designated as a burial account all $10,000 would have to be counted as an asset. If the account is designated as a burial account and there is one person in the household age 60 or older, then $5,000 would be exempt by LIHEAP and the other $5,000 would be counted as an asset.

If there were two-person age 60 or older in the household, then the entire $10,000 account would be exempt if it is designated as a burial account.

e.	The designated asset is NOT restricted to:

1.	Contracts with funeral homes,
2.	Specific types of financial instruments, or
3.	Instruments with financial institutions in North Dakota.

NOTE: Burial accounts do not have to be depleted for those over 60 in order for the household to be eligible for Emergency Assistance.

9.	10. Payments received under the Aleutian and Pribilof Islands Restitution Act, Public Law 100-283, Section 206 of Title II for restitution made to Aleuts who were relocated by the U.S. government during World War II.

10.	11. Payments made for major disaster and emergency assistance under the Disaster Relief and Emergency Assistance Amendments of 1988, Section 105 of Public Law 100-707 (45 USC 5141 et seq.).

11.	12. Any amount necessary for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act (SSI) will NOT be counted as an asset to the household.

12.	13. Payments made to volunteers including VISTA volunteers under the Domestic Volunteer Service Act of 1973 (42 USC 5044(9)(I)).

13.	14. Payments received under Public Law 103-286, Subsection 1(a) from a foreign government for restitution made to victims of Nazi persecution.

14.	15. Income acquired during a month cannot be considered as an asset in the same month.

15.	16. Tools, machinery, and vehicles necessary to produce income. 

16.	Exempt assets as a result of Alaska Native Claims Settlement Act.

415-25-10-10-10 Assets - "Non- Liquid",  Changed: # 5 number of exempt vehicles

"Non-liquid assets" are defined as the equity in any other assets that cannot be readily converted to cash. Examples are equity in snowmobiles, motorcycles, recreational vehicles, or such other things as grain in a bin, livestock that is ready for sale.

"Non-Liquid Assets" NOT Counted:

1.	Clothing, personal effects and household goods, such as furniture and appliances (including satellite disks).

2.	Grain necessary for seed, feed, and grain stored for a maximum of 12 months after harvest.

3.	Livestock for dairy and breeding purposes.

4.	Tools, machinery, and vehicles necessary to produce income.

5.	One licensed family vehicle. Two licensed road vehicles.

6.	Business inventory.

7.	Burial plots, vaults, etc. which are not included in a prepaid burial contract and are not transferable.

8.	Property which the household has been unable to convert to cash despite "good faith efforts" to do so. "Good faith efforts" may include but not be limited to repeated attempts to sell and/or rent the property at an acceptable community rate through classified ads, signs, etc.

Any property not counted under this provision must be carefully reviewed at least annually to be certain the household is making every reasonable effort to convert the property to cash.

415-25-10-30 Insurance Settlements on Loss of Property, Added: Information

The portion of a loss settlement obligated to replace the loss, pay off indebtedness, or otherwise obligated by the loss is NOT counted (Example: fire in a home). Any portion of the settlement above indebtedness or replacement cost is counted as an available asset unless it has been converted to another uncounted asset (i.e. used to purchase car, etc). The amount of the loss settlement may be left in a separate account for one LIHEAP season.
CHAPTER 30

415-30-10 Household Poverty Level Percentages Table, Changed: Income limits for 2008

The poverty level percentage to be applied to each household's annual adjusted gross income will be calculated by the computer according to the level of their income and the number of persons in the household at the time of application. Therefore, it is essential to have accurate data in these two fields.

The Poverty Level Percentage Table used by the computer:

	HOUSEHOLD
SHARE
2%	HOUSEHOLD
SHARE
4%	HOUSEHOLD
SHARE
6%	
#OF
PERSONS	0-20% OF
MEDIAN
INCOME	21-40% OF
MEDIAN
INCOME	41-60% OF
MEDIAN
INCOME	
			Annual
Eligibility
Limit	Monthly
Eligibility
Limit	
1	0 -   6,232	  6,233 – 12,465	12,466 - 18,697	1,558	
2	0 -   8,150	  8,151 – 16,300	16,301 - 24,450	2,038	
3	0 - 10,068	10,069 - 20,135	20,136 – 30,203	2,517	
4	0 - 11,985	11,986 - 23,971	23,972 - 35,956	2,996	
5	0 - 13,903	13,904 - 27,806	27,807 - 41,709	3,476	
6	0 - 15,821	15,822 - 31,641	31,642 - 47,462	3,955	
7	0 - 16,180	16,181 - 32,360	32,361 – 48,541	4,045	
8	0 –16,540	16,541 - 33,080	33,081 - 49,619	4,135	
9	0 - 16,899	16,900 - 33,799	33,800 – 50,698	4,225	
10	0 - 17,259	17,260 – 34,518	34,519 – 51,777	4,315	
11	0 –17,618	17,619 – 35,237	35,238 – 52,855	4,405	
12	0 - 17,978	17,979 – 35,956	35,957 – 53,934	4,495	

These are the income categories as they relate to the federal poverty level.

415-30-10-01 Monthly and Annual Eligibility Limits (Adjusted Gross Income), Changed income for 2008

NUMBER OF
PERSONS	MONTHLY
ELIGIBILITY LIMIT	ANNUAL
ELIGIBILITY LIMIT	
1	$1,558	$18,697	
2	$2,038	$24,450	
3	$2,517	$30,203	
4	$2,996	$35,956	
5	$3,476	$41,709	
6	$3,955	$47,462	
7	$4,045	$48,541	
8	$4,135	$49,619	
9	$4,225	$50,698	
10	$4,315	$51,777	
11	$4,405	$52,855	
12	$4,495	$53,934	

415-30-15-05 Cost of Heating - Secondary Heat Source,  Added: Note last paragraph

The same LIHEAP Share Percentage and household Co-payment Percentage that has been computed for the primary source of heat will be used to pay a secondary source of heat, with exceptions for electric heating.

Payment on secondary heat sources can be paid throughout the heating season at the established LS percentage.

If the home with secondary electric heat can separate heat costs from general utility electricity, the LS percentage will be used to compute the amount paid.

Secondary electric heat that is not separate from electricity used as utilities will be paid at 50% of the bill times the LS percentage. Example: Total bill divided by 2, times the LS percentage.

LIHEAP will not pay for non-installed appliances such as space heaters or fireplaces.

LIHEAP will not pay for a secondary heat source unless it is used in a primary living space, such as a bedroom that is in use, a kitchen, a living room, or family room.

NOTE: THERE ARE NO EMERGENCY PAYMENTS MADE FOR SECONDARY HEAT.

415-30-30-05 Renter Benefits - Authorization Period,  Deleted: Information in first paragraph.

The renter checks are printed the third week of each month. Therefore, the authorization period for renters should normally begin with the first eligible month in which a renter payment can be made and should end with the last eligible month. In most cases the last eligible month will be May.

The computer will continue to make monthly renter payments ONLY as long as the case is open and the renter payment date falls within the authorization period.

CHAPTER 40

415-40-25 Benefits Levels – Adjustments, Added: Note

If the change in the family's circumstance only affects the estimated cost of heating but not the income, the re-computation of the benefits can begin on page two of SFN 530 "Eligibility and Benefit Worksheet."

If the change in circumstance affects the income of the household, you must re-compute both pages of SFN 530. NOTE: Be sure to include any allowable deductions in the calculations (lines 1-4).

NOTE: When mandatory changes are reported, assets AND income should be reviewed. A change in income may result in an adjustment to the LIHEAP share percentage (see 415-40-05).

415-40-30 Transferring a Case to a Different County,  Changed: Information about transferring files 4th paragraph

If the county social service office learns that a family is moving, the case should be closed effective the day of the move.

The original county will need to advise the household that they will need to reapply in the new county.

Although it is the responsibility of the household to notify the vendor that they will be moving, the original eligibility worker will want to confirm that the vendor has been notified in order to avoid complications at a late date for the new county. The possibility of overpayments will exist if the household failed to notify the original county or the vendor of the move and renter benefits were paid or fuel was delivered after the date of the move.

The new county will need to notify the original county when the new application has been received. The original county will need to remove the worker ID, so the new county can register changes to the computer Household Data Record. No files will need to be transferred to the new county because all of the information needed is on the computer file. A copy of the original application and other verifications may be forwarded to the new county.

If an overpayment exists or may exist, it will be the responsibility of the new county to pursue the overpayments.

CHAPTER 50

415-50-10-10 Eligibility Guidelines, Deleted: “Significant other” from #5 Absent Worker Expense and Absent Student expense

•	Absent Student Expense--Up to $300/month may be deducted from household income for a head of household or spouse/significant other who must reside away from home for all of the school week for higher education purposes. Prorate the deduction down if the student is away for less than a full school week, but if the student is away less than 50% of the school week, no deduction will be allowed. This deduction will be further reduced by any portion of exempt educational income which is available to the student for living costs.

•	Absent Worker Expense--Up to $300/month may be deducted from the earnings of a head of household or spouse/significant other who must reside away from home for all of the work week for employment purposes. Prorate the deduction down if the worker is away for less than a full work week, but if the worker is away less than 50% of the work week, no deduction will be allowed. This deduction will be further reduced by any reimbursement or subsistence allowance provided by the employer for living expenses while on the job.

Par. 2. Effective Date – October 1, 2007. This manual letter is effective for all new applications received for the FY2008 heating season.