CARES Act Thomas HartnettRussell Community Programs Manager 1

CARES Act Thomas Hartnett-Russell Community Programs Manager 1

CARES ACT BACKGROUND • World Health Organization (WHO) declared novel Coronavirus Disease 2019 (COVID-19) outbreak a Public Health Emergency of International Concern on January 30, 2020. • HHS Secretary Alex Azar declared COVID-19 a public health emergency for the United States on January 31, 2020. • Governor Eric Holcomb declared COVID-19 a statewide public health disaster emergency on March 06, 2020. As of this writing, this declaration has been renewed until October 02, 2020. • President Donald Trump signed Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116 -136) into law on March 27, 2020. • Among other elements, CARES Act provided $900 million in supplemental LIHEAP funding, of which Indiana received $16, 991, 924. 2

CARES ACT ADMINISTRATION • CARES Act funding awarded to Indiana May 08, 2020. IHCDA distributed funds to LSPs June 12, 2020. • CARES Act funding valid until September 30, 2021. • CARES Act funding provides an additional one-time $350 benefit to any LIHEAP-eligible household that can demonstrate a partial or total loss of employment income as a result of the pandemic. 3 • Benefit may be awarded as a $350 lump benefit to one utility, or may be split evenly as a $175 benefit to both electric and heating utilities. • Clients who heat with biofuels or have electricity or heating included in their rent are eligible to receive a direct pay benefit. The LSP may encourage the client to put the entire benefit toward the utility that is paid separately, but may not compel or require it.

CARES ACT ELIGIBILITY • In order to qualify for the CARES Act supplemental benefit, an applicant household must both: • • Meet all general eligibility requirements for EAP; and Demonstrate that a member of the household has experienced a direct economic impact in the form of a loss of employment income (i. e. , involuntary layoff or involuntary reduction of hours during the timeline of the Indiana public health emergency. • Loss of employment income may be documented by using Appendix N – Request for Earnings Statement; a signed statement on employer letterhead signed by a supervisory-level representative of employer, or, as last resort, a signed self-certification. If this is used, it must be documented why other methods failed. • In order to qualify for benefit, employment loss must have occurred during Governor’s declaration of statewide public health disaster emergency. 4

DRASTIC LOSS OF INCOME In response to COVID-19, IHCDA issued a policy guidance refining the Drastic Loss of Income policy. • During public health crisis, IHCDA will allow Drastic Loss of Income to be applied to a household member who has experienced a reduction in hours by projecting forward using documentation provided in Appendix N. • Weekly rates should be multiplied by 13. • Drastic loss of income may be applied to self-employed persons if they have been unable to maintain their business during the public health crisis. • • 5 This applies to registered businesses, not to undocumented odd jobs or freelance work. Preferred documentation is a formal written and signed statement on business letterhead. If business does not have letterhead, a self-certification is acceptable.

DRASTIC LOSS OF INCOME • If the household member is receiving unemployment benefits, those benefits must be included in any forward projections. • If there is a federal supplement to state unemployment benefits in effect, this must be included as part of the household’s income. • Household income must always be calculated using traditional methods first, and drastic loss only invoked if the household is over income using traditional calculation methods. This is consistent with existing policy. • Status and dates of public health disaster emergency declaration can be checked by reviewing the governor’s Executive Orders at http: //www. in. gov/2384. htm. The state of emergency is currently scheduled to stay in effect until October 02, 2020. 6

CARES ACT BUDGET • LSPs may allocate up to 8. 5% of total expenditures of CARES Act benefit to eligibility/admin. • The remainder of the award goes to direct benefits. • No Technology/Direct Program Expenses, Assurance 16, Emergency Service, or Emergency Repair and Replacement may be paid out of CARES Act funding. 7