17388 Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations

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.

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);

§§ 236.3(c)(2), (c)(6), (c)(8)(iv) through

(v), and (c)(11) through (c)(15);

§§ 813.106(c)(2), (c)(6), (c)(8)(iv) through

(v), (c)(11), (c)(12), (c)(14), and (c)(15);

§§ 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 §§ 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 Setaside 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
Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations 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 fulltime 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.
17390 Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations

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 § 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 § 236.72. Currently, § 236.72

incorrectly references ‘‘adjusted

income’’ rather than ‘‘annual income.’’

This interim rule changes the reference

in § 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
Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations 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 twelvemonth 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 § 215.2 is added to subpart

A to read as follows:

§ 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:

§ 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 § 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
17392 Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations

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:

§ 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 § 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 § 236.6 is added to subpart

A to read as follows:

§ 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:

§ 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:
Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations 17393

Authority: 42 U.S.C. 1437a, 1437c, 1437f,

1437n, and 3535(d).

9. A new § 813.1 is added to read as

follows:

§ 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:

§ 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 § 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 § 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:

§ 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
17394 Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations

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 § 905.103 is added to

subpart A to read as follows:

§ 905.103 Effective date.

In §§ 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 § 913.1 is added to read as

follows:

§ 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:

§ 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;
Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations 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 § 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