(b)

1. (1) The availability of transportation plays a significant role in an employed participant’s ability to retain employment.
2. (2) While a participant may be able to arrange for transportation in order to participate in job search and job readiness, he or she may not be able to secure long-term transportation needed in order to retain employment.

3. (3) There are also situations in which a participant may:

   1. (A) Have previously had transportation, but the transportation is no longer available;
   2. (B) Own a vehicle that needs repair and the cost to repair it will exceed the value of the vehicle; or
   3. (C) Have been riding with someone who changed jobs or work shifts.
4. (4) In these and other situations, the local office may determine that the only feasible solution to a participant’s transportation needs is for the participant to have his or her own reliable transportation.

(d) Vehicle down payment assistance general requirements.

1. (1)

   1. (A) The participant is expected to assume some responsibility towards the purchase of a vehicle.
   2. (B) TEA funds will not be used to fully purchase a vehicle.
   3. (C) Therefore, the local office will use the following requirement when approving vehicle down payment assistance.

2. (2)

   1. (A) One-time assistance with the down payment on a vehicle will not exceed seventy-five percent (75%) of the purchase price, up to a lifetime maximum of two thousand five hundred dollars ($2,500).
   2. (B) If a participant does not use the full two thousand five hundred dollars ($2,500), they will not be able to receive assistance again to use the remaining balance.

(e) Participant requirements.

1. (1)

   1. (A) The Program Eligibility Specialist must determine if participant is eligible and preapprove before the process can begin.
   2. (B) The Program Eligibility Specialist should verify the participant has not received prior vehicle down payment assistance and is within twelve (12) months of case closure due to employment.

2. (2)

   1. (A) In two-parent cases, the Program Eligibility Specialist will determine if the budget unit already has a vehicle.
   2. (B) If the two-parent household does not have a vehicle and has never received prior vehicle down payment assistance, then down payment assistance can be approved if other requirements are met.
   3. (C) The Program Eligibility Specialist should verify whether the participant has had previous down payment assistance by reviewing the RSRH screen (Reimbursement History) in WISE.

3. (3)

   1. (A) The Program Eligibility Specialist will be responsible for completing the TEA-1409, Household Income and Expense Work Sheet, with the participant.
   2. (B) Participant must have at least two hundred dollars ($200) remaining in the budget before preapproval can be given.
   3. (C) This is to ensure the participant can at least make one (1) payment if an emergency should arise.

4. (4)

   1. (A) The Program Eligibility Specialist can only use earned and/or unearned income as defined in 20 CAR §§ 502-504 and 502-509.
   2. (B) Any disregarded income cannot be used in figuring the household budget.
5. (5) When the participant is determined to be eligible, the Program Eligibility Specialist will then review the TEA-1410, Participant Vehicle Down Payment Assistance Agreement, with the participant.
6. (6) Prior to providing assistance with the down payment of a vehicle, the local office will determine that a participant meets all of the following requirements.

7. (7) The participant:

   1. (A) Must be a current TEA participant with employment or employed former TEA participant within the first twelve (12) months of case closure due to employment;
   2. (B) Must provide proof of a valid driver's license;
   3. (C)

(i) Must be currently employed for sixty (60) days at the same job.

1. (ii) Limited exceptions to this requirement may be made following the employed sixty-day exception procedures below;

   1. (D) Has not received vehicle down payment assistance before;
   2. (E) Must be insurable;
   3. (F) Must be able to pay at least one hundred dollars ($100) of the down payment prior to purchase of the car; and
   4. (G) Must sign form TEA-1410, Participant Vehicle Down Payment Assistance Agreement.

2. (8)

   1. (A) Prior to approving the down payment assistance, the Program Eligibility Specialist will determine if a participant can afford the vehicle by calculating a household budget with the participant using form TEA-1409, Household Income and Expense Work Sheet.
   2. (B) The participant should have at least a minimum of two hundred dollars ($200) of remaining income.
3. (9) The participant’s monthly payment on the vehicle cannot exceed two hundred dollars ($200) per month, and the length of the loan agreement cannot exceed thirty-six (36) months.

4. (10)

   1. (A) In addition, the Program Eligibility Specialist should determine if the vehicle is a good value.
   2. (B) The Program Eligibility Specialist can deny the request for assistance with the down payment if it is determined the vehicle is not a good value.
   3. (C) Some factors to consider when determining if a vehicle is a good value are gas mileage and amount of mileage on the odometer.
   4. (D) Also, vehicles that are fully loaded with optional equipment may not be a good value due to the extra cost optional equipment tends to add to the purchase price.
   5. (E) The decision on the practicality of the vehicle must be made on a case-by-case basis. Example 1: The Program Eligibility Specialist has determined that Ms. Brown is eligible for vehicle down payment assistance. Ms. Brown is requesting assistance to purchase a 1999 Trans Am that has one hundred thirty-five thousand (135,000) miles on the odometer. While the purchase price of the car is in the range that policy allows, other factors must be considered when determining if the car is a good value. Factors to consider for this car are the high mileage, high cost of insuring a sports or luxury car, low gas mileage, and Ms. Brown’s family size. Ms. Brown has four children. Therefore, the Trans Am is not a good value for the participant. Example 2: Mr. and Mrs. Jones close their two-parent case due to employment. They are employed in different areas and therefore cannot use the same vehicle. Mr. or Mrs. Jones can apply for vehicle down payment assistance as long as they have never received prior vehicle down payment assistance.

(f) Employed sixty-day exception.

1. (1) To request approval for an exception to the employment requirement, the local office must submit a request for approval along with justification for the request to the area operations chief.

2. (2)

   1. (A) Prior to submitting the request, the Program Eligibility Specialist will complete the TEA-1409, Household Income and Expense Worksheet, with the participant to determine if the participant can afford monthly payments on a vehicle.
   2. (B) This should be done prior to the participant choosing a specific vehicle.
3. (3) The area operation chief’s approval must be made in writing.
4. (4) It is expected that no more than twenty percent (20%) of the vehicle down payment assistance approved in an area will be for exception situations.

(g) Vendor requirements.

1. (1)

   1. (A) The participant will be allowed to choose from whom he or she wishes to purchase a vehicle.
   2. (B) If the local office has a list of vehicle vendor agreements already on file, the Program Eligibility Specialist could provide the participant with the list.
   3. (C) However, if the vendor the participant chooses does not have an agreement in place, the participant will be notified and vendor will need to complete the TEA-1411, Vehicle Vendor Agreement.
   4. (D) One (1) agreement per vendor location needs to be in place at the local office.

2. (2) However, the vendor chosen must comply with the requirements listed below:

   1. (A) The vendor must sign and return the TEA-1411, Vehicle Vendor Agreement, which is a binding agreement that stipulates that the terms and conditions of the sale will meet or exceed the requirement that the sale price of the vehicle does not exceed the value of the vehicle as listed on the approved websites the local office currently uses for vehicle value determination;

   2. (B) In addition, whether or not the vendor finances the vehicle purchase, the terms of the loan must meet or exceed the following:

      1. (i) The maximum monthly payment does not exceed two hundred dollars ($200) per month;
      2. (ii) The length of loan period does not exceed thirty-six (36) months;
      3. (iii) Will not permit the participant to take possession of the vehicle until the participant has provided vendor with proof of insurance;
      4. (iv) Will not permit the participant to take possession of the vehicle until the down payment has been received by the vendor;
      5. (v) A grace period of at least ten (10) days must be provided before late fees are imposed; and
      6. (vi) The vehicle will not be repossessed until at least ten (10) days after the second monthly payment is missed; and

   3. (C) In addition, the vendor must:

      1. (i) Provide vehicle maintenance information as required in the TEA-1411, Vehicle Vendor Agreement, to the participant prior to purchase of a vehicle; and
      2. (ii) Agree to Department of Human Services billing procedures.

3. (3)

   1. (A) Once the participant has been approved and the vehicle has been approved, the Program Eligibility Specialist will send the TEA-1415, Approved Vehicle Description, to inform vendor of down payment assistance approval.
   2. (B) However, the vendor will not release vehicle to the participant until proof of insurance is provided and down payment received.