Home energy aid program is suspended, council says – Arkansas Democrat-Gazette

EL DORADO — The Central Arkansas Development Council said last week that its summer Low-Income Home Energy Assistance Program utility and Coronavirus Aid, Relief and Economic Security (CARES) Act assistance programs are “being suspended immediately due to depletion of funds” and additional applications will not be accepted at this time.

The Low-Income Home Energy Assistance Program was enhanced via an $8.2 million federal funding injection through the Coronavirus Aid, Relief and Economic Security Act in July. The funding was split into two programs, with $6.97 million going toward Low-Income Home Energy Assistance Program and $1.23 million toward the Summer Cooling Program.

Qualifying for Low-Income Home Energy Assistance Program assistance has several requirements, including being an Arkansas resident, being in need of financial assistance for home energy costs and being enrolled in one of several qualifying social service programs or having an income below 150% of the federal poverty guidelines.

The CARES Act broadened The Low-Income Home Energy Assistance Program’s reach during the covid-19 pandemic, allowing agencies such as the Central Arkansas Development Council to expand their services.

The Low-Income Home Energy Assistance Program, for example, had its maximum benefits increased to $1,500 from $500, and participants were able to show past-due notices rather than shut-off notices. This broadened reach, however, also caused their funds to deplete quickly, leading to the current suspension of services.

“With those added amounts, we had triple the amount we could pay out to customers. … In previous years we would pay enough for the utility bills to be paid, but this year we’ve been able to pay people’s past-due notices, as well as put credit on people’s bills,” Central Arkansas Development Council representative Todd Anderson said.

With utility companies unable to disconnect service during the covid-19 pandemic, some customers accumulated large bills. The program, Anderson said, normally services about 10,000 applicants. This year around 14,000 applied and were processed. That, in addition to the larger amounts the agency is now permitted to pay, led to the funds being quickly depleted.

Anderson said that the agency had already reached out to the state to look for additional funding, however.

“We contacted the state [Tuesday] to say we are out of funds. Oftentimes the state can find additional money if there are, for example, other agencies that don’t need the amount of funding they have received. That’s why we have suspended the program, not closed it. Normally, it runs until Sept. 30, and if we’re able to secure more funding we will open it back up,” Anderson said.

According to the Central Arkansas Development Council news release, the agency will announce on its website and social media page if additional funding is secured and services resume.

Original Source: https://www.arkansasonline.com/news/2020/sep/06/home-energy-aid-program-is-suspended-council-says/