[Federal Register Volume 60, Number 65 (Wednesday, April 5, 1995)]
[Rules and Regulations]
[Pages 17388-17395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8081]
[[Page 17387]]
_______________________________________________________________________
Part II
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Secretary
_______________________________________________________________________
24 CFR Part 215, et al.
Combined Income and Rent; Interim Rule
Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules
and Regulations
[[Page 17388]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
24 CFR Parts 215, 236, 813, 905, and 913
[Docket No. R-95-1713; FR-3324-I-01]
RIN 2501-AB61
Combined Income and Rent
AGENCY: Office of the Secretary, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule amends HUD's current regulations governing
public housing, Indian housing and assisted housing programs by adding
nine exclusions to the definition of annual income. With regard to the
first eight exclusions, the Department has concluded that, for policy
reasons, these payments should not be considered when determining a
family's income in the housing assistance programs involved. In
contrast, the last exclusion is a statutorily required exclusion to the
definition of annual income.
This interim rule also adds a statutory change to the definition of
adjusted income for the Indian housing program, and makes two technical
corrections to the existing regulations.
DATES: Effective Date: This interim rule is effective on May 5, 1995.
Sunset Provision: Sections 215.21(c)(2), (c)(6), (c)(8)(iv) through
(v), and (c)(11) through (c)(15); Secs. 236.3(c)(2), (c)(6), (c)(8)(iv)
through (v), and (c)(11) through (c)(15); Secs. 813.106(c)(2), (c)(6),
(c)(8)(iv) through (v), (c)(11), (c)(12), (c)(14), and (c)(15);
Secs. 905.102(2)(ii), (2)(vi), (2)(viii)(D) through (E), (2)(xi),
(2)(xii), (2)(xv), and (2)(xvi) of the definition of Annual income; and
Secs. 913.106(c)(2), (c)(6), (c)(8)(iv) through (v), (c)(11), (c)(12),
(c)(15), and (c)(16) shall expire and shall not be in effect after May
6, 1996, unless prior to May 6, 1996, the Department publishes changes
in this interim rule as a final rule or publishes a notice in the
Federal Register to extend the effective date.
Comments due date: June 5, 1995.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim rule to the Office of the General Counsel, Rules Docket
Clerk, Room 10276, Department of Housing and Urban Development, 451
Seventh Street, SW, Washington, DC 20410. Communications should refer
to the above docket number and title. A copy of each communication
submitted will be available for public inspection and copying during
regular business hours (7:30 a.m.-5:30 p.m. Eastern Time) at the above
address. Comments sent by FAX will not be accepted.
FOR FURTHER INFORMATION CONTACT: For Public Housing: Bruce Vincent,
Room 4206, telephone number (202) 708-0744; For Native American
Programs: Dominic A. Nessi, Room 4140, telephone number (202) 708-1015;
For Housing: Barbara D. Hunter, Room 6180, telephone number (202) 708-
3944; Department of Housing and Urban Development, 451 Seventh Street
SW, Washington, DC 20410; (TDD: (202) 708-0850). Hearing or speech-
impaired individuals may call HUD's TDD number (202) 708-4594. (These
telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule revises HUD's current regulations for public
housing, Indian housing, Section 8 housing and other assisted housing
programs by excluding from annual income the following: (1) Resident
service stipends, (2) adoption assistance payments, (3) student
financial assistance (4) earned income of full-time students, (5) adult
foster care payments, (6) compensation from State or local job training
programs and training of resident management staff, (7) property tax
rebates, (8) homecare payments for developmentally disabled children or
adult family members, and (9) deferred periodic payments of
supplemental security income and social security benefits that are
received in a lump sum.
This interim rule also amends the definition of adjusted income for
Indian Housing programs by allowing a deduction for both child care
expenses and excessive travel expenses, as required by section
103(a)(2) of the Housing and Community Development Act of 1992 (Pub. L.
102-550, approved October 28, 1993; hereafter referred to as ``1992 HCD
Act'').
Finally, this interim rule makes two technical corrections to
existing regulations (see preamble discussion in section I(D).)
A. Discretionary Income Exclusions
By adding the first eight exclusions to the definition of income in
the public housing, Indian housing, section 8 housing, and other
assisted housing programs, the Secretary is merely exercising the
discretion conferred upon him to define family income by section
3(b)(4) of the U.S. Housing Act of 1937 (42 U.S.C. 1437a(b)(4)),
section 101(c)(2) of the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s(c)(2)), and section 236(m) of the National Housing Act (12
U.S.C. 1715z-1(m)). The eight ``discretionary'' income exclusions will
affect the approximately 1.3 million families currently residing in
public and Indian housing developments, the approximately 1.5 million
families participating in the Section 8 Rental Certificate and Voucher
programs, and the approximately 2 million families in privately owned
assisted housing projects under the Section 8 New Construction,
Substantial Rehabilitation, Loan Management Set-aside and Property
Disposition Set-aside programs, the Section 236 Interest Reduction and
Rental Assistance Payments Program, and the Section 215 Rent Supplement
Payments program.
The Department believes these exclusions are essential for
achieving its goals of ensuring economic opportunity, empowering the
poor and expanding affordable housing opportunities. Moreover, HUD
believes that the costs of these additional exclusions will be offset
by long-term future savings because the exclusions will increase the
number of economically self-sufficient families residing in assisted
housing. Finally, because this interim rule promotes long-term upward
mobility, educational achievement and entrepreneurship, the number of
families dependent on welfare and other social services programs may
decline, thereby resulting in future cost savings for other Federal
programs.
The eight ``discretionary'' exclusions to annual income are:
1. Resident Service Stipends. This exclusion exempts from annual
income resident service stipends, but only if the resident service
stipend does not exceed $200 per month. A resident service stipend is a
modest amount (i.e. $200 or less per month) received by a resident for
performing a service for the housing authority or owner, on a part-time
basis, that enhances the quality of life in the assisted housing
development. Such services include, but are not limited to, fire
patrol, hall monitoring, lawn maintenance, resident initiatives
coordination, and resident management.
The Department wants to emphasize that if a housing authority or
owner pays a resident more than $200 per month, then the entire amount
received as a ``stipend'' does not qualify as a resident service
stipend under this interim rule. For example, suppose a housing
authority pays a resident $150 per month for part-time services that
enhance the quality of public housing. That $150 payment would not be
counted in determining the annual income of the resident. Suppose,
however, instead of $150 per month, the [[Page 17389]] housing
authority pays the resident $400 per month. In this latter situation,
the housing authority may not exclude up to $200 per month (the maximum
stipend amount); rather, the entire amount of the payment (i.e. $400)
is included in annual income.
If a resident receives more than $200 per month, even if the
payment is characterized as a ``stipend'', the payment does not qualify
as a resident service stipend under this interim rule. The Department
wishes to point out that there is no limit to the number of stipends a
family may receive. However, each family member may only exclude one
stipend at a time.
On August 24, 1994 (59 FR 43622), the Department published a final
rule which added a resident service stipend exclusion for resident
council officers in the public and Indian Housing programs. The
Department wants to emphasize that today's interim rule expands the
resident service stipend exclusion to all assisted housing programs,
and makes all residents eligible for the resident service stipend
exclusion, regardless of whether the resident is an officer of the
resident council.
2. Adoption Assistance Payments. This exclusion removes from annual
income payments received for the care of adopted children to the extent
that the payments exceed $480 per adopted child. Currently, payments
for the care of foster children are excluded, but similar payments for
the care of adopted children are not. (Although, when determining
adjusted income, adopted children qualify for a $480 deduction, while
foster children do not.)
3. Full Amount of Student Financial Assistance. This exclusion
exempts from annual income all amounts received from student financial
assistance. Student financial assistance is interpreted broadly to
include various scholarships, educational entitlements, grants, work-
study programs and financial aid packages. Currently, the portion of an
educational scholarship available for general living expenses is
included in annual income.
4. Earned Income of Full-Time Students. This exclusion exempts
earnings in excess of $480 for each full-time student 18 years old or
older (except the head of household and spouse). The exemption only
applies to earnings in excess of $480 since the family already receives
a $480 deduction from income for any full-time student.
5. Adult Foster Care Payments. This exclusion removes from the
computation of annual income payments for the care of foster adults
(usually individuals with disabilities, unrelated to the tenant family,
who are unable to live alone). Currently, only payments for the care of
foster children are excluded from annual income. In adding this
exclusion, the Department is not requiring that housing authorities or
owners permit foster adults in assisted housing. As before, each
housing authority or owner will continue to adopt its own policies,
subject to current HUD requirements.
6. State or local employment training programs and training of
resident management staff. This exclusion exempts compensation received
from qualifying employment training programs and training of resident
management staff. To qualify under this exclusion, the compensation
received must be a component of a state or local employment training
program with clearly defined goals and objectives. Moreover, only the
compensation received incident to the training program is excluded
(i.e. any additional income received during the training program, such
as welfare benefits, will continue to be counted as income).
In addition, this exclusion only covers compensation received while
the resident participates in the employment training program, and the
duration of participation must be for a limited period determined in
advance. An example of compensation which falls under this exclusion is
compensation received from on-the-job training and during
apprenticeship programs.
7. State tax rent credits and rebates. This provision excludes
state rent credits and rebates for property taxes paid on a dwelling
unit. The Department is adding this exclusion because the Department
believes that this exclusion will support state efforts to assist low
income persons.
8. Homecare payments. This exclusion exempts amounts paid by a
State agency to families that have developmentally disabled children or
adult family members living at home. States that provide families with
homecare payments do so to offset the cost of services and equipment
needed to keep a developmentally disabled family member at home, rather
than placing the family member in an institution. Since families that
strive to avoid institutionalization should be encouraged, and not
punished, the Department is adding this additional exclusion to income.
The Department wishes to point out that today's interim rule does not
define ``developmentally disabled'' since whether a family member
qualifies as developmentally disabled, and is therefore eligible for
homecare assistance, is determined by each individual State.
B. Exclusion of Deferred Periodic Payments of SSI and Social Security
Received in Lump Sum
Section 103(a)(1) of the 1992 HCD Act amended section 3(b)(4) of
the U.S. Housing Act of 1937 to exclude from annual income, ``any
amounts which would be eligible for exclusion under section 1613(a)(7)
of the Social Security Act (42 U.S.C. 1382b(a)(7).'' Section 1613(a)(7)
of the Social Security Act covers deferred periodic payments received
in a lump sum from supplemental security income (SSI) and social
security benefits.
Section 103(a)(3) of the 1992 HCD Act, however, limits
implementation of the lump sum exclusion unless appropriations are
provided in advance to cover any additional costs resulting from
implementation of the exclusion. The Department has determined that
implementing section 103(a)(1) will not result in any additional costs
to the Department. Accordingly, no additional appropriations are
required to implement section 103(a)(1).
Section 2 of the 1992 HCD Act makes all provisions of that act
effective on the date of enactment--October 28, 1992, unless another
date is specifically provided. Because HUD determined that the
exclusion of deferred periodic payments of SSI and social security
benefits from annual income is effective as of October 28, 1992, and to
limit the number of retroactive adjustments, the Department previously
implemented this exclusion by HUD interim notice, PHA 93-11, issued
March 16, 1993. That notice implemented section 103(a)(1) with respect
to public and Indian Housing programs, and all section 8 programs.
Finally, while section 103(a)(1) does not apply to the Section 215
Rent Supplement Payments program, or the Section 236 Interest Reduction
and Rental Assistance Payments Program, it is a long standing
Departmental policy to use the same definition of annual income for all
of the Department's subsidized housing programs. Accordingly, in
today's interim rule, the Department is extending the exclusion of
deferred periodic payments of SSI and social security benefits from
annual income to the Section 215 Rent Supplement Payments program and
the Section 236 Interest Reduction and Rental Assistance Payments
Program. However, because the Department is adding this exclusion as a
matter of agency discretion, the exclusion is effective as of the
effective date of this interim rule. [[Page 17390]]
C. Change in Definition of Adjusted Income for Indian Housing
Authorities
Section 103(a)(2) of the 1992 HCD Act amended section 3(b)(5) of
the U.S. Housing Act of 1937 to change the definition of adjusted
income for families assisted by an IHA. As amended, section 3(b)(5)
provides a deduction from adjusted income for both child care expenses
(to the extent necessary to enable another member of the family to be
employed or to further his or her education); and excessive travel
expenses (not to exceed $25 per family per week for employment or
education-related travel). (Prior to this amendment, a family was
allowed a deduction from adjusted income for either child care expenses
or excessive travel expenses.)
Section 103(a)(3) of the 1992 HCD Act requires that appropriations
be provided in advance if section 103(a)(2) results in any additional
costs to the Department. The Department has determined that there are
no additional costs associated with the implementation of Section
103(a)(2).
Section 2 of the HCD Act of 1992 makes all provisions of that act
effective on the date of enactment--October 28, 1992, unless another
date is specifically provided. HUD has determined that the change to
the definition of adjusted income is effective as of October 28, 1992.
Finally, to limit the number of retroactive adjustments, the
Department previously implemented this exclusion by a HUD interim
notice, PHA 93-23, issued May 19, 1993.
D. Technical Corrections
Finally, this interim rule contains two technical corrections.
First, this interim rule removes the following parenthetical in
Sec. 913.106(c)(11): ``[t]his provision does not apply to residents
participating in the Family Self-Sufficiency [FSS] Program who are
utilizing the escrow account.'' When the Department implemented section
515(b) of the National Affordable Housing Act of 1990 (Pub.L. 101-625)
(NAHA) in the final rule published on August 24, 1994 (59 FR 43622), it
inadvertently added the above parenthetical to the rule text. Because
section 515(b) of NAHA covers all public housing residents, without
regard to whether a resident participates in the FSS program, this
technical correction is necessary.
The second technical correction amends Sec. 236.72. Currently,
Sec. 236.72 incorrectly references ``adjusted income'' rather than
``annual income.'' This interim rule changes the reference in
Sec. 236.72 to ``annual income.''
II. Other Matters
A. Executive Order 12866
This interim rule was reviewed by the Office of Management and
Budget (OMB) under Executive Order 12866, Regulatory Planning and
Review. Any changes made to the interim rule as a result of that review
are clearly identified in the docket file, which is available for
public inspection in the office of the Department's Rules Docket Clerk,
room 10276, 451 Seventh Street SW., Washington, DC.
B. Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969. The Finding of No Significant Impact is available for
public inspection during regular business hours in the Office of
General Counsel, the Rules Docket Clerk, room 10276, 451 Seventh
Street, SW, Washington, DC 20410.
C. Executive Order 12612, Federalism
The General Counsel has also determined, as the Designated Official
for HUD under section 6(a) of Executive Order 12612, Federalism, that
the policies contained in this interim rule will not have federalism
implications and, thus, are not subject to review under that Order.
Specifically, the interim rule adds additional exclusions to the
definition of income in the assisted housing programs. As such, the
interim rule will not impinge upon the relationship between the Federal
Government and State and local governments, and the interim rule is not
subject to review under the order.
D. Executive Order 12606, the Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this interim rule has
potential for significant impact on family formation, maintenance, and
general well-being. Families will benefit from this interim rule by
being allowed additional exclusions from annual income. Accordingly,
since the impact on the family is beneficial, no further review is
considered necessary.
E. Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)) has reviewed and approved this interim rule, and in so
doing certifies that this interim rule will not have a significant
economic impact on a substantial number of small entities. With regard
to the lump sum exclusion, the number of lump sum exclusions in any one
project will be minor, and will not significantly impact any HA. With
regard to the remaining income exclusions, since HUD will supplement
any lost rental income from the added exclusions, the exclusions will
not have an economic impact on housing authorities.
F. Regulatory Agenda
This interim rule was listed as item number 1748 in the
Department's Semiannual Agenda of Regulations published on November 14,
1994, (59 FR 57632, 57646) in accordance with Executive Order 12866 and
the Regulatory Flexibility Act.
G. Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance program number(s) are
14.146, 14.147, 14.850 and 15.141.
H. Justification for Interim Rulemaking
In general, the Department publishes a rule for public comment
before issuing a rule for effect, in accordance with its own
regulations on rulemaking, 24 CFR part 10. However, part 10 does
provide for exceptions from that general rule where the agency finds
good cause to omit advance notice and public participation. The good
cause requirement is satisfied when prior public procedure is
``impracticable, unnecessary, or contrary to the public interest.'' (24
CFR 10.1)
The Department finds that good cause exists to publish this interim
rule for effect without first soliciting public comment because the
interim rule adds nine exclusions to the definition of annual income,
which will benefit residents and tenants, without adversely affecting
any other group. The first eight exclusions will affect approximately
1.3 million families currently residing in public and Indian housing
developments, approximately 1.5 million families participating in the
Section 8 Rental Certificate and Voucher programs, and approximately 2
million families in private-owned assisted housing projects under
certain HUD programs.
As stated earlier in this preamble, the Department believes these
exclusions are essential for achieving its goals of ensuring economic
opportunity, empowering the poor and expanding affordable housing
opportunities. Moreover, the Department believes that the costs of
these additional exclusions will be offset by long term future savings
because the exclusions will increase the number of economically
[[Page 17391]] self-sufficient families residing in assisted housing.
Finally, because this interim rule promotes long-term upward mobility,
educational achievement and entrepreneurship, the number of families
dependent on welfare and other social services programs may decline,
thereby resulting in future cost savings for other Federal programs.
For these reasons, the Department believes that delaying
implementation would be contrary to public interest.
I. Sunset of Interim Rule
In accordance with the Department's policy on interim rules, the
amendments made by this interim rule shall expire on the twelve-month
anniversary date of the effective date of this interim rule unless
extended by notice published in the Federal Register, or adopted by a
final rule published on or before the twelve-month anniversary date of
the effective date of this interim rule.
List of Subjects
24 CFR Part 215
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 236
Grant programs--housing and community development, Low and moderate
income housing, Mortgage insurance, Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 813
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements, Utilities.
24 CFR Part 905
Aged, Energy conservation, Grant programs--housing and community
development, Grant programs--Indians, Homeownership, Indians,
Individuals with disabilities, Lead poisoning, Loan programs--housing
and community development, Loan programs--Indians, Low and moderate
income housing, Public housing, Reporting and recordkeeping
requirements.
24 CFR Part 913
Grant programs--housing and community development, Public housing,
Reporting and recordkeeping requirements.
Accordingly, 24 CFR parts 215, 236, 813, 905, and 915 are amended
as follows:
PART 215--RENT SUPPLEMENT PAYMENTS
1. The authority citation for 24 CFR part 215 continues to read as
follows:
Authority: 12 U.S.C. 1701s; 42 U.S.C. 3535(d).
2. A new Sec. 215.2 is added to subpart A to read as follows:
Sec. 215.2 Effective date of regulation.
Sections 215.21(c)(2), (c)(6), (c)(8)(iv) through (v), and (c)(11)
through (c)(15) shall expire and shall not be in effect after May 6,
1996, unless prior to May 6, 1996, the Department publishes changes in
this interim rule as a final rule or publishes a notice in the Federal
Register to extend the effective date.
3. Section 215.21 is amended by revising paragraphs (b)(4), (b)(5),
and (c) to read as follows:
Sec. 215.21 Annual income.
* * * * *
(b) * * *
(4) The full amount of periodic payments received from Social
Security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits, and other similar types of periodic
receipts, including a lump sum payment for the delayed start of a
periodic payment (but see paragraph (c)(13) of this section);
(5) Payments in lieu of earnings, such as unemployment and
disability compensation, worker's compensation and severance pay (but
see paragraph (c)(3) of this section);
* * * * *
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children)
under the age of 18 years;
(2) Payments received for the care of foster children or foster
adults (usually individuals with disabilities, unrelated to the tenant
family, who are unable to live alone);
(3) Lump-sum additions to Family assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and settlement for
personal or property losses (but see paragraph (b)(5) of this section);
(4) Amounts received by the Family, that are specifically for, or
in reimbursement of, the cost of medical expenses for any family
member;
(5) Income of a Live-in Aide, as defined in Sec. 215.1;
(6) The full amount of student financial assistance paid directly
to the student or to the educational institution;
(7) The special pay to a Family member serving in the Armed Forces
who is exposed to hostile fire;
(8) (i) Amounts received under training programs funded by HUD;
(ii) Amounts received by a disabled person that are disregarded for
a limited time for purposes of Supplemental Security Income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other publicly assisted
programs which are specifically for or in reimbursement of out-of-
pocket expenses incurred (special equipment, clothing, transportation,
child care, etc.) and which are made solely to allow participation in a
specific program;
(iv) A resident service stipend. A resident service stipend is a
modest amount (not to exceed $200 per month) received by a resident for
performing a service for the owner, on a part-time basis, that enhances
the quality of life in the development. Such services may include, but
are not limited to, fire patrol, hall monitoring, lawn maintenance, and
resident initiatives coordination. No Resident may receive more than
one such stipend during the same period of time; or
(v) Compensation from State or local employment training programs
and training of a family member as resident management staff. Amounts
excluded by this provision must be received under employment training
programs with clearly defined goals and objectives, and are excluded
only for a limited period as determined in advance;
(9) Temporary, nonrecurring or sporadic income (including gifts);
(10) For all initial determinations and reexaminations of income
carried out on or after April 23, 1993, reparation payments paid by a
foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era;
(11) Earnings in excess of $480 for each full-time student 18 years
old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted
child;
(13) Deferred periodic payments of supplemental security income and
social security benefits that are received in a lump sum payment;
(14) Amounts received by the family in the form of refunds or
rebates under state or local law for property taxes paid on the
dwelling unit;
(15) Amounts paid by a State agency to a family with a
developmentally disabled family member living at home to offset the
cost of services and [[Page 17392]] equipment needed to keep the
developmentally disabled family member at home; or
(16) Amounts specifically excluded by any other Federal statute
from consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under section 101 of the Housing and Urban Development Act
of 1965 (12 U.S.C. 1701s). A notice will be published in the Federal
Register and distributed to housing owners identifying the benefits
that qualify for this exclusion. Updates will be published and
distributed when necessary.
* * * * *
PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENT FOR
RENTAL PROJECTS
4. The authority citation for 24 CFR part 236 continues to read as
follows:
Authority: 12 U.S.C. 1715b and 1715z-1; 42 U.S.C. 3535(d).
5. Section 236.3 is amended by revising the section heading,
paragraphs (b)(4), (b)(5), and (c) to read as follows:
Sec. 236.3 Annual income.
* * * * *
(b) * * *
(4) The full amount of periodic payments received from Social
Security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits, and other similar types of periodic
receipts, including a lump sum payment for the delayed start of a
periodic payment (but see paragraph (c)(13) of this section);
(5) Payments in lieu of earnings, such as unemployment and
disability compensation, worker's compensation and severance pay (but
see paragraph (c)(3) of this section);
* * * * *
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children)
under the age of 18 years;
(2) Payments received for the care of foster children or foster
adults (usually individuals with disabilities, unrelated to the tenant
family, who are unable to live alone);
(3) Lump-sum additions to Family assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and settlement for
personal or property losses (but see paragraph (b)(5) of this section);
(4) Amounts received by the Family, that are specifically for, or
in reimbursement of, the cost of medical expenses for any family
member;
(5) Income of a Live-in Aide, as defined in Sec. 236.2;
(6) The full amount of student financial assistance paid directly
to the student or to the educational institution;
(7) The special pay to a Family member serving in the Armed Forces
who is exposed to hostile fire;
(8) (i) Amounts received under training programs funded by HUD;
(ii) Amounts received by a disabled person that are disregarded for
a limited time for purposes of Supplemental Security Income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other publicly assisted
programs which are specifically for or in reimbursement of out-of-
pocket expenses incurred (special equipment, clothing, transportation,
child care, etc.) and which are made solely to allow participation in a
specific program;
(iv) A resident service stipend. A resident service stipend is a
modest amount (not to exceed $200 per month) received by a resident for
performing a service for the owner, on a part-time basis, that enhances
the quality of life in the development. Such services may include, but
are not limited to, fire patrol, hall monitoring, lawn maintenance, and
resident initiatives coordination. No Resident may receive more than
one such stipend during the same period of time; or
(v) Compensation from State or local employment training programs
and training of a family member as resident management staff. Amounts
excluded by this provision must be received under employment training
programs with clearly defined goals and objectives, and are excluded
only for a limited period as determined in advance;
(9) Temporary, nonrecurring or sporadic income (including gifts);
(10) For all initial determinations and reexaminations of income
carried out on or after April 23, 1993, reparation payments paid by a
foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era;
(11) Earnings in excess of $480 for each full-time student 18 years
old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted
child;
(13) Deferred periodic payments of supplemental security income and
social security benefits that are received in a lump sum payment.
(14) Amounts received by the family in the form of refunds or
rebates under state or local law for property taxes paid on the
dwelling unit;
(15) Amounts paid by a State agency to a family with a
developmentally disabled family member living at home to offset the
cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(16) Amounts specifically excluded by any other Federal statute
from consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under section 236 of the National Housing Act. A notice will
be published in the Federal Register and distributed to housing owners
identifying the benefits that qualify for this exclusion. Updates will
be published and distributed when necessary.
* * * * *
6. A new Sec. 236.6 is added to subpart A to read as follows:
Sec. 236.6 Effective date.
Sections 236.3(c)(2), (c)(6), (c)(8)(iv) through (v), and (c)(11)
through (c)(15) shall expire and shall not be in effect after May 6,
1996, unless prior to May 6, 1996, the Department publishes changes to
this interim rule as a final rule or publishes a notice in the Federal
Register to extend the effective date.
7. Section 236.72 is amended by revising paragraph (a) and the
first sentence in paragraph (b) introductory text, to read as follows:
Sec. 236.72 Guidelines for assisted admission.
(a) Maximum income. The annual income of an applicant shall not
exceed the maximum income limits established by the Secretary.
(b) Ability to pay rent. The project owner or the owner's managing
agent may, in its discretion, admit an applicant for assisted admission
whose annual income meets the requirement in paragraph (a) of this
section if, in its discretion, the applicant has an adequate income to
pay the basic monthly rental charge. * * *
* * * * *
PART 813--DEFINITION OF INCOME, INCOME LIMITS, RENT AND
REEXAMINATION OF FAMILY INCOME FOR THE SECTION 8 HOUSING ASSISTANCE
PAYMENTS PROGRAMS AND RELATED PROGRAMS
8. The authority citation for 24 CFR part 813 is revised to read as
follows:
[[Page 17393]] Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437n,
and 3535(d).
9. A new Sec. 813.1 is added to read as follows:
Sec. 813.1 Effective date.
Sections 813.106(c)(2), (c)(6), (c)(8)(iv) through (v), (c)(11),
(c)(12), (c)(14), and (c)(15) shall expire and shall not be in effect
after May 6, 1996, unless prior to May 6, 1996, the Department
publishes changes to this interim rule as a final rule or publishes a
notice in the Federal Register to extend the effective date.
10. Section 813.106 is amended by revising paragraphs (b)(4),
(b)(5), and (c), to read as follows:
Sec. 813.106 Annual income.
* * * * *
(b) * * *
(4) The full amount of periodic payments received from Social
Security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits, and other similar types of periodic
receipts, including a lump sum payment for the delayed start of a
periodic payment (but see paragraph (c)(13) of this section);
(5) Payments in lieu of earnings, such as unemployment and
disability compensation, worker's compensation and severance pay (but
see paragraph (c)(3) of this section);
* * * * *
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children)
under the age of 18 years;
(2) Payments received for the care of foster children or foster
adults (usually individuals with disabilities, unrelated to the tenant
family, who are unable to live alone);
(3) Lump-sum additions to Family assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and settlement for
personal or property losses (but see paragraph (b)(5) of this section);
(4) Amounts received by the Family, that are specifically for, or
in reimbursement of, the cost of medical expenses for any family
member;
(5) Income of a live-in Aide, as defined in Sec. 813.102;
(6) The full amount of student financial assistance paid directly
to the student or to the educational institution;
(7) The special pay to a Family member serving in the Armed Forces
who is exposed to hostile fire;
(8) (i) Amounts received under training programs funded by HUD;
(ii) Amounts received by a disabled person that are disregarded for
a limited time for purposes of Supplemental Security Income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other publicly assisted
programs which are specifically for or in reimbursement of out-of-
pocket expenses incurred (special equipment, clothing, transportation,
child care, etc.) and which are made solely to allow participation in a
specific program;
(iv) A resident service stipend. A resident service stipend is a
modest amount (not to exceed $200 per month) received by a resident for
performing a service for the owner, on a part-time basis, that enhances
the quality of life in the development. Such services may include, but
are not limited to, fire patrol, hall monitoring, lawn maintenance, and
resident initiatives coordination. No Resident may receive more than
one such stipend during the same period of time; or
(v) Compensation from State or local employment training programs
and training of a family member as resident management staff. Amounts
excluded by this provision must be received under employment training
programs with clearly defined goals and objectives, and are excluded
only for a limited period as determined in advance;
(9) Temporary, nonrecurring or sporadic income (including gifts);
(10) For all initial determinations and reexaminations of income
carried out on or after April 23, 1993, reparation payments paid by a
foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era;
(11) Earnings in excess of $480 for each full-time student 18 years
old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted
child;
(13) Deferred periodic payments of supplemental security income and
social security benefits that are received in a lump sum payment.
(14) Amounts received by the family in the form of refunds or
rebates under state or local law for property taxes paid on the
dwelling unit;
(15) Amounts paid by a State agency to a family with a
developmentally disabled family member living at home to offset the
cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(16) Amounts specifically excluded by any other Federal statute
from consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under the United States Housing Act of 1937. A notice will
be published in the Federal Register and distributed to PHAs and owners
identifying the benefits that qualify for this exclusion. Updates will
be published and distributed when necessary.
* * * * *
PART 905--INDIAN HOUSING PROGRAMS
11. The authority citation for 24 CFR part 905 continues to read as
follows:
Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a, 1437aa, 1437bb,
1437cc, 1437ee; and 3535(d).
12. In Sec. 905.102, the definition for ``Adjusted income'' is
amended by revising paragraph (5) and by adding a new paragraph (6) to
the definition, and the definition for ``Annual income'' is amended by
revising paragraphs (1)(iv), (1)(v), and (2) of the definition, to read
as follows:
Sec. 905.102 Definitions.
* * * * *
Adjusted income. * * *
* * * * *
(5) Child care expenses, as defined in this definition; and
(6) Excessive travel expenses, not to exceed $25 per family per
week, for employment or education-related travel.
* * * * *
Annual income. * * *
(1) * * *
(iv) The full amount of periodic payments received from Social
Security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits, and other similar types of periodic
receipts, including a lump sum payment for the delayed start of a
periodic payment (but see paragraph (2)(xiv) of this definition);
(v) Payments in lieu of earnings, such as unemployment and
disability compensation, worker's compensation and severance pay (but
see paragraph (2)(iii) of this definition);
* * * * *
(2) Annual income does not include the following:
(i) Income from employment of children (including foster children)
under the age of 18 years;
(ii) Payments received for the care of foster children or foster
adults (usually individuals with disabilities, unrelated to the tenant
family, who are unable to live alone);
(iii) Lump-sum additions to Family assets, such as inheritances,
insurance payments (including payments under [[Page 17394]] health and
accident insurance and worker's compensation), capital gains and
settlement for personal or property losses (but see paragraph (1)(v) of
this definition);
(iv) Amounts received by the Family, that are specifically for, or
in reimbursement of, the cost of medical expenses for any family
member;
(v) Income of a Live-in Aide;
(vi) The full amount of student financial assistance paid directly
to the student or to the educational institution;
(vii) The special pay to a Family member serving in the Armed
Forces who is exposed to hostile fire;
(viii)(A) Amounts received under training programs funded by HUD;
(B) Amounts received by a disabled person that are disregarded for
a limited time for purposes of Supplemental Security Income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(C) Amounts received by a participant in other publicly assisted
programs which are specifically for or in reimbursement of out-of-
pocket expenses incurred (special equipment, clothing, transportation,
child care, etc.) and which are made solely to allow participation in a
specific program;
(D) A resident service stipend. A resident service stipend is a
modest amount (not to exceed $200 per month) received by an Indian
housing resident for performing a service for the IHA, on a part-time
basis, that enhances the quality of life in Indian housing. Such
services may include, but are not limited to, fire patrol, hall
monitoring, lawn maintenance, and resident initiatives coordination. No
Resident may receive more than one such stipend during the same period
of time; or
(E) Compensation from State or local employment training programs
and training of a family member as resident management staff. Amounts
excluded by this provision must be received under employment training
programs with clearly defined goals and objectives, and are excluded
only for a limited period as determined in advance by the IHA;
(ix) Temporary, nonrecurring or sporadic income (including gifts);
(x) For all initial determinations and reexaminations of income
carried out on or after April 23, 1993, reparation payments paid by a
foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era;
(xi) Earnings in excess of $480 for each full-time student 18 years
old or older (excluding the head of household and spouse);
(xii) Adoption assistance payments in excess of $480 per adopted
child;
(xiii) The earnings and benefits to any resident resulting from the
participation in a program providing employment training and supportive
services in accordance with the Family Support Act of 1988, section 22
of the U.S. Housing Act of 1937 (42 U.S.C. 1437t), or any comparable
Federal, State, Tribal or local law during the exclusion period. For
purposes of this paragraph (2)(xiii) of this definition, the following
definitions apply.
(A) Comparable Federal, State, Tribal or local law means a program
providing employment training and supportive services that:
(1) Is authorized by a Federal, State, Tribal or local law;
(2) Is funded by the Federal, State, Tribal or local government;
(3) Is operated or administered by a public agency; and
(4) Has as its objective to assist participants in acquiring
employment skills.
(B) Exclusion period means the period during which the resident
participates in a program described in this definition, plus 18 months
from the date the resident begins the first job acquired by the
resident after completion of such program that is not funded by public
housing assistance under the U.S. Housing Act of 1937. If the resident
is terminated from employment without good cause, the exclusion period
shall end.
(C) Earnings and benefits means the incremental earnings and
benefits resulting from a qualifying employment training program or
subsequent job;
(xiv) Deferred periodic payments of supplemental security income
and social security benefits that are received in a lump sum payment.
(xv) Amounts received by the family in the form of refunds or
rebates under state or local law for property taxes on the dwelling
unit;
(xvi) Amounts paid by a State agency to a family with a
developmentally disabled family member living at home to offset the
cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(xvii) Amounts specifically excluded by any other Federal statute
from consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under the United States Housing Act of 1937. A notice will
be published in the Federal Register and distributed to IHAs
identifying the benefits that qualify for this exclusion. Updates will
be published and distributed when necessary.
* * * * *
13. A new Sec. 905.103 is added to subpart A to read as follows:
Sec. 905.103 Effective date.
In Secs. 905.102, paragraphs (2)(ii), (2)(vi), (2)(viii) (D)
through (E), (2)(xi), (2)(xii), (2)(xv), and (2)(xvi) of the definition
of Annual income shall expire and shall not be in effect after May 6,
1996, unless prior to May 6, 1996, the Department publishes changes to
this interim rule as a final rule or publishes a notice in the Federal
Register to extend the effective date.
PART 913--DEFINITION OF INCOME, INCOME LIMITS, RENT AND
REEXAMINATION OF FAMILY INCOME FOR THE PUBLIC HOUSING PROGRAM
14. The authority citation for 24 CFR part 913 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437d, 1437n and 3535(d).
15. A new Sec. 913.1 is added to read as follows:
Sec. 913.1 Effective date.
Sections 913.106 (c)(2), (c)(6), (c)(8) (iv) through (v), (c)(11),
(c)(12), (c)(15), and (c)(16) shall expire and shall not be in effect
after May 6, 1996, unless prior to May 6, 1996, the Department
publishes changes to this interim rule as a final rule or publishes a
notice in the Federal Register to extend the effective date.
16. Section 913.106 is amended by revising paragraphs (b)(4),
(b)(5), and (c) to read as follows:
Sec. 913.106 Annual income.
* * * * *
(b) * * *
(4) The full amount of periodic payments received from Social
Security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits, and other similar types of periodic
receipts, including a lump-sum payment for the delayed start of a
periodic payment (but see paragraph (c)(14) of this section);
(5) Payments in lieu of earnings, such as unemployment and
disability compensation, worker's compensation and severance pay (but
see paragraph (c)(3) of this section);
* * * * *
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children)
under the age of 18 years; [[Page 17395]]
(2) Payments received for the care of foster children or foster
adults (usually individuals with disabilities, unrelated to the tenant
family, who are unable to live alone);
(3) Lump-sum additions to family assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and settlement for
personal or property losses (but see paragraph (b)(5) of this section);
(4) Amounts received by the Family, that are specifically for, or
in reimbursement of, the cost of medical expenses for any family
member;
(5) Income of a live-in Aide, as defined in Sec. 913.102;
(6) The full amount of student financial assistance paid directly
to the student or to the educational institution;
(7) The special pay to a Family member serving in the Armed Forces
who is exposed to hostile fire;
(8) (i) Amounts received under training programs funded by HUD;
(ii) Amounts received by a disabled person that are disregarded for
a limited time for purposes of Supplemental Security Income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other publicly assisted
programs which are specifically for or in reimbursement of out-of-
pocket expenses incurred (special equipment, clothing, transportation,
child care, etc.) and which are made solely to allow participation in a
specific program;
(iv) A resident service stipend. A resident service stipend is a
modest amount (not to exceed $200 per month) received by a public
housing resident for performing a service for the PHA, on a part-time
basis, that enhances the quality of life in public housing. Such
services may include, but are not limited to, fire patrol, hall
monitoring, lawn maintenance, and resident initiatives coordination. No
Resident may receive more than one such stipend during the same period
of time; or
(v) Compensation from State or local employment training programs
and training of a family member as resident management staff. Amounts
excluded by this provision must be received under employment training
programs with clearly defined goals and objectives, and are excluded
only for a limited period as determined in advance by the PHA;
(9) Temporary, nonrecurring or sporadic income (including gifts);
(10) For all initial determinations and reexaminations of income
carried out on or after April 23, 1993, reparation payments paid by a
foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era;
(11) Earnings in excess of $480 for each full-time student 18 years
old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted
child;
(13) The earnings and benefits to any resident resulting from the
participation in a program providing employment training and supportive
services in accordance with the Family Support Act of 1988, section 22
of the U.S. Housing Act of 1937 (42 U.S.C. 1437 et seq.), or any
comparable Federal, State, or local law during the exclusion period.
For purposes of this paragraph, the following definitions apply.
(i) Comparable Federal, State or local law means a program
providing employment training and supportive services that--
(A) Is authorized by a Federal, State or local law;
(B) Is funded by the Federal, State or local government;
(C) Is operated or administered by a public agency; and
(D) Has as its objective to assist participants in acquiring
employment skills.
(ii) Exclusion period means the period during which the resident
participates in a program described in this section, plus 18 months
from the date the resident begins the first job acquired by the
resident after completion of such program that is not funded by public
housing assistance under the U.S. Housing Act of 1937 (42 U.S.C. 1437
et seq.). If the resident is terminated from employment without good
cause, the exclusion period shall end.
(iii) Earnings and Benefits means the incremental earnings and
benefits resulting from a qualifying employment training program or
subsequent job;
(14) Deferred periodic payments of supplemental security income and
social security benefits that are received in a lump sum payment.
(15) Amounts received by the family in the form of refunds or
rebates under state or local law for property taxes paid on the
dwelling unit;
(16) Amounts paid by a State agency to a family with a
developmentally disabled family member living at home to offset the
cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(17) Amounts specifically excluded by any other Federal statute
from consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under the United States Housing Act of 1937. A notice will
be published in the Federal Register and distributed to PHAs
identifying the benefits that qualify for this exclusion. Updates will
be published and distributed when necessary.
* * * * *
Dated: January 26, 1995.
Henry G. Cisneros,
Secretary.
[FR Doc. 95-8081 Filed 4-4-95; 8:45 am]
BILLING CODE 4210-32-P
