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So we ended up not being chosen for this situation, but the case worker talked to us a bit more and said that yes this was a high end cost for so late in the pregnancy, but there are particular circumstances (especially since the expectant mother is so late on that clearly there is no way she is now going to be able to get a job before the birth - we didn't ask details but we think she lost her job/was laid off, and we know for one reason or another she had to move, plus she has kids she is parenting).
So even if this situation is not for us - it is clear that like the other situations we've heard about, these expenses are only from now till the birth, though they are higher than average.