Federally Mandated Exclusions from Income: Republication of Corrected Listing, 74495-74498 [2012-30210]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 77, Number 241 (Friday, December 14, 2012)]
[Notices]
[Pages 74495-74498]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30210]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5635-N-02]


Federally Mandated Exclusions from Income: Republication of 
Corrected Listing

AGENCY: Office of the General Counsel, HUD.

ACTION: Notice.

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SUMMARY: HUD's regulations provide that HUD will periodically publish a 
Federal Register notice listing the amounts specifically excluded by 
any Federal statute from consideration as income for purposes of 
determining eligibility or benefits. On July 24, 2012, HUD published a 
notice in the Federal Register that listed those exclusions and listed 
federal statutes that require certain income sources to be disregarded 
with regard to specific HUD programs. The July 24, 2012, notice updated 
the list of exclusions last published on April 20, 2001, by amending, 
removing, and adding exclusions. Today's notice corrects errors and an 
omission in the July 24, 2012, notice. For the convenience of the 
public, the Department is publishing a corrected version of the July 
24, 2012, notice in its entirety.

FOR FURTHER INFORMATION CONTACT: For the Rent Supplement, section 236, 
and Project-based section 8 programs administered under 24 CFR parts 
880, 881, and 883 through 886: Catherine Brennan, Director, Office of 
Housing Assistance and Grant Administration, Department of Housing and 
Urban Development, 451 7th Street SW., Room 6138, Washington, DC 20410, 
telephone number 202-401-7914. For other section 8 programs 
administered under 24 CFR part 882 (Moderate Rehabilitation) and under 
part 982 (Housing Choice Voucher), and the Public Housing Programs: 
Shauna Sorrells, Director, Office of Public Housing Programs, Office of 
Public and Indian Housing, Department of Housing and Urban Development, 
451 7th Street SW., Room 4206, Washington, DC 20410, telephone number 
202-402-2769, or the Public and Indian Housing Information Resource 
Center at 1-800-955-2232. For Indian Housing Programs: Rodger Boyd, 
Deputy Assistant Secretary, Office of Native American Programs, Office 
of Public and Indian Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 4126, Washington, DC 20410, 
telephone number 202-401-7914. With the exception of the telephone 
number for the PIH Information Resource Center, these are not toll-free 
numbers. Persons with hearing or speech impairments may access these 
numbers via TTY by calling the Federal Relay Service at 1-800-877-8339 
or by visiting https://federalrelay.us/ or https://www.federalip.us/.

    Please note: Members of the public who are aware of other 
federal statutes that require any benefit not listed in this notice 
to be excluded from consideration as income in these programs should 
submit information about the statute and the benefit program to one 
of the persons listed in the FOR FURTHER INFORMATION CONTACT section 
above. Members of the public may also submit this information to the 
Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500.


SUPPLEMENTARY INFORMATION: Under several HUD programs (Rent Supplement 
under 24 CFR 200.1303 (although loans in existence immediately before 
May 1, 1996, continue to be governed by 24 CFR part 215 (1995 ed.)); 
Mortgage Insurance and Interest Reduction Payment for Rental Projects 
under 24 CFR part 236; section 8 Housing Assistance programs; Public 
Housing programs), the definition of income excludes amounts of other

[[Page 74496]]

benefits specifically excluded by federal law.
    HUD published a Federal Register notice on July 24, 2012 (77 FR 
43347) that updated the list of exclusions last published on April 20, 
2001 (66 FR 20318). Today's notice corrects errors and an omission in 
the July 24, 2012, notice. For the convenience of the public, the 
Department is republishing a corrected version of the July 24, 2012 
notice in its entirety, and updates the list of federally mandated 
exclusions last published on April 20, 2001 to include the following:
    (1) Assistance from section 1780 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1760(e)) and section 11(b) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1780(b);
    (2) Payments from the Seneca Nation Settlement Act of 1990 (25 
U.S.C. 1774f);
    (3) Payments from any deferred Department of Veterans Affairs 
disability benefits that are received in a lump sum amount or in 
prospective monthly amounts;
    (4) Compensation received by or on behalf of a veteran for service-
connected disability, death, dependency or indemnity compensation in 
programs authorized under the Native American Housing Assistance and 
Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4101 et seq.) and 
administered by the Office of Native American Programs;
    (5) A lump sum or a periodic payment received by an individual 
Indian pursuant to the Class Action Settlement Agreement in the United 
States District Court case entitled Elouise Cobell et al. v. Ken 
Salazar et al., 816 F.Supp.2d 10 (Oct. 5, 2011 D.D.C.); and
    (6) Federal major disaster and emergency assistance provided to 
individuals and families under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (Pub. L. 93-288, as amended) and 
comparable disaster assistance provided by States, local governments, 
and disaster assistance organizations (42 U.S.C. 5155(d)).

Background

    In certain HUD-subsidized housing programs, annual income is a 
factor in determining eligibility and the level of benefits. Annual 
income is broadly defined as the anticipated total income from all 
sources received by every family member. HUD excludes certain types of 
benefits from applicants' and participants' annual income, as listed in 
24 CFR 5.609, this notice, or otherwise specified by statute.
    Federal statutes that require certain income sources be disregarded 
as income are universally applicable to all HUD programs where income 
is a factor in determining eligibility and benefits. Other federal 
statutes specify that income exclusions are specific to certain HUD 
programs.

Changes to the Previously Published List

    Exclusions Amended: Exclusion (viii) in the updated list below has 
been clarified to describe its applicability to section 8 programs.
    Exclusions Removed: Certain exclusions from the previously 
published list have been removed because they have been repealed by 
Congress. These exclusions are as follows:
    1. Payments received under programs funded in whole or in part 
under the Job Training Partnership Act (29 U.S.C. 1552(b)). When the 
Workforce Investment Act was enacted in 1998, it simultaneously 
repealed the Job Training Partnership Act. The exclusion that still 
applies to HUD programs is listed as exclusion (xvii) in the updated 
list below.
    2. Any allowance paid under the provisions of 38 U.S.C. 1805 to a 
child suffering from spina bifida who is the child of a Vietnam 
veteran. This exclusion was repealed by Public Law 106-419 in 2000.
    Exclusions Added: The exclusions that are being added to the 
previously published list are as follows:
    1. Section 1780 of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1760(e)) and section 11(b) of the Child Nutrition Act of 
1996 (42 U.S.C. 1780(b)) provide that the value of benefits to children 
under each of the respective Acts shall not be considered income or 
resources for any purpose under any Federal or state laws.
    The effective date of this provision was October 11, 1966. This 
exclusion is added to the list as paragraph (xviii).
    2. Section 8 of the Seneca Nation Settlement Act of 1990 (25 U.S.C. 
1774f(b)), provides: None of the payments, funds or distributions 
authorized, established, or directed by this Act, and none of the 
income derived therefrom, shall affect the eligibility of the Seneca 
Nation or its members for, or be used as a basis for denying, or 
reducing funds under any Federal program.
    The effective date of this provision was November 3, 1990. This 
exclusion is added to the list as paragraph (xix).
    3. Section 2608 of the Housing and Economic Recovery Act of 2008 
(Pub. L. 110-289), amended the definition of annual income in section 
3(b)(4) of the United States Housing Act of 1937 (42 U.S.C. 1437) to 
exclude payments from any deferred Department of Veterans Affairs 
disability benefits that are received in a lump sum amount or in 
prospective monthly amounts. The law provides:

Section 3(b)(4) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(3)(b)(4)) is amended by inserting ``or any deferred Department of 
Veterans Affairs disability benefits that are received in a lump sum 
amount or in prospective monthly amounts'' before ``may not be 
considered.''

    This exclusion is applicable only to the section 8 and Public 
Housing programs. The effective date of this provision was July 30, 
2008. This exclusion is added to the list as paragraph (xx).
    4. Section 2 of the Indian Veterans Housing Opportunity Act of 2010 
(Pub. L. 111-269, approved October 12, 2010), amended the definition of 
income contained in section 4 of NAHASDA (25 U.S.C. 4103(9)) to exclude 
compensation received by or on behalf of a veteran for service-
connected disability, death, dependency or indemnity compensation. The 
law provides:

Paragraph (9) of section 4 of the Native American Housing Assistance 
and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4103(9)) is 
amended by adding at the end the following new subparagraph: ``(C) Any 
amounts received by any member of the family as disability compensation 
under chapter 11 of title 38, United States Code, or dependency and 
indemnity compensation under chapter 13 of such title.''

    This exclusion only applies to the programs authorized under 
NAHASDA and administered by the Office of Native American Programs. The 
effective date of this provision was October 12, 2010. This exclusion 
is added to the list as paragraph (xxi).
    5. The Claims Resolution Act of 2010 (Pub. L. 111-291), excludes a 
lump sum or a periodic payment received by an individual Indian 
pursuant to the Class Action Settlement Agreement in the United States 
District Court case entitled Elouise Cobell et al. v. Ken Salazar et 
al., 816 F.Supp.2d 10 (Oct. 5, 2011 D.D.C.). The law provides in 
subsection (f) of section 101:

Notwithstanding any other provision of law, for purposes of determining 
initial eligibility, ongoing eligibility, or level of benefits under 
any Federal or federally assisted program, amounts received by an 
individual Indian as a lump sum or

[[Page 74497]]

a periodic payment pursuant to the Settlement shall not be treated for 
any household member, during the 1-year period beginning on the date of 
receipt--
(A) As income for the month during which the amounts were received; or
(B) As a resource.

    The effective date of this provision was December 8, 2010. This 
exclusion is added to the list as paragraph (xxii).
    6. The Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (Pub. L. 93-288, as amended) provides that amounts received under 
the Act and comparable disaster assistance provided by States, local 
governments, and disaster assistance organizations shall not be 
considered as income or a resource when determining eligibility for or 
benefit levels under federally funded income assistance or resource-
tested benefit programs (42 U.S.C. 5155(d)).
    The effective date of this provision was November 23, 1988. This 
exclusion is added to the list as paragraph (xxiii).

Updated List of Federally Mandated Exclusions From Income

    The following updated list of federally mandated exclusions 
republishes and corrects the notice published in the Federal Register 
on July 24, 2012. The following list of program benefits is the 
comprehensive list of benefits that currently qualify for the income 
exclusion in either any federal program or in specific federal 
programs. Exclusions (viii), (xiii), (xx), and (xxi) have provisions 
that apply only to specific HUD programs.
    (i) The value of the allotment provided to an eligible household 
under the Food Stamp Act of 1977 (7 U.S.C. 2017(b));
    (ii) Payments to Volunteers under the Domestic Volunteer Service 
Act of 1973 (42 U.S.C. 5044(f)(1), 5058);
    (iii) Certain payments received under the Alaska Native Claims 
Settlement Act (43 U.S.C. 1626(c));
    (iv) Income derived from certain submarginal land of the United 
States that is held in trust for certain Indian tribes (25 U.S.C. 
459e);
    (v) Payments or allowances made under the Department of Health and 
Human Services' Low-Income Home Energy Assistance Program (42 U.S.C. 
8624(f));
    (vi) Income derived from the disposition of funds to the Grand 
River Band of Ottawa Indians (Pub. L. 94-540, section 6);
    (vii) The first $2000 of per capita shares received from judgment 
funds awarded by the Indian Claims Commission or the U.S. Claims Court, 
the interests of individual Indians in trust or restricted lands, 
including the first $2000 per year of income received by individual 
Indians from funds derived from interests held in such trust or 
restricted lands (25 U.S.C. 1407);
    (viii) Amounts of scholarships funded under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070), including awards under federal 
work-study programs or under the Bureau of Indian Affairs student 
assistance programs (20 U.S.C. 1087uu). For section 8 programs only (42 
U.S.C. 1437f), any financial assistance in excess of amounts received 
by an individual for tuition and any other required fees and charges 
under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from 
private sources, or an institution of higher education (as defined 
under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall not be 
considered income to that individual if that individual is over the age 
of 23 with dependent children (Pub. L. 109-115, section 327)(as 
amended);
    (ix) Payments received from programs funded under title V of the 
Older Americans Act of 1965 (42 U.S.C. 3056g);
    (x) Payments received on or after January 1, 1989, from the Agent 
Orange Settlement Fund (Pub. L. 101-201) or any other fund established 
pursuant to the settlement in In Re Agent Orange Liability Litigation, 
M.D.L. No. 381 (E.D.N.Y.);
    (xi) Payments received under the Maine Indian Claims Settlement Act 
of 1980 (Pub. L. 96-420, 25 U.S.C. 1721);
    (xii) The value of any child care provided or arranged (or any 
amount received as payment for such care or reimbursement for costs 
incurred for such care) under the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858q);
    (xiii) Earned income tax credit (EITC) refund payments received on 
or after January 1, 1991, for programs administered under the United 
States Housing Act of 1937, title V of the Housing Act of 1949, section 
101 of the Housing and Urban Development Act of 1965, and sections 
221(d)(3), 235, and 236 of the National Housing Act (26 U.S.C. 32(l));
    (xiv) Payments by the Indian Claims Commission to the Confederated 
Tribes and Bands of Yakima Indian Nation or the Apache Tribe of 
Mescalero Reservation (Pub. L. 95-433);
    (xv) Allowances, earnings and payments to AmeriCorps participants 
under the National and Community Service Act of 1990 (42 U.S.C. 
12637(d));
    (xvi) Any amount of crime victim compensation (under the Victims of 
Crime Act) received through crime victim assistance (or payment or 
reimbursement of the cost of such assistance) as determined under the 
Victims of Crime Act because of the commission of a crime against the 
applicant under the Victims of Crime Act (42 U.S.C. 10602(c));
    (xvii) Allowances, earnings and payments to individuals 
participating in programs under the Workforce Investment Act of 1998 
(29 U.S.C. 2931(a)(2));
    (xviii) Any amount received under the Richard B. Russell School 
Lunch Act (42 U.S.C.1760(e)) and the Child Nutrition Act of 1966 (42 
U.S.C. 1780(b)), including reduced-price lunches and food under the 
Special Supplemental Food Program for Women, Infants, and Children 
(WIC);
    (xix) Payments, funds, or distributions authorized, established, or 
directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 
1774f(b));
    (xx) Payments from any deferred Department of Veterans Affairs 
disability benefits that are received in a lump sum amount or in 
prospective monthly amounts as provided by an amendment to the 
definition of annual income in the U.S. Housing Act of 1937 (42 U.S.C. 
1437A) by section 2608 of the Housing and Economic Recovery Act of 2008 
(Pub. L. 110-289);
    (xxi) Compensation received by or on behalf of a veteran for 
service-connected disability, death, dependency, or indemnity 
compensation as provided by an amendment by the Indian Veterans Housing 
Opportunity Act of 2010 (Pub. L. 111-269; 25 U.S.C. 4103(9)) to the 
definition of income applicable to programs authorized under NAHASDA 
and administered by the Office of Native American Programs;
    (xxii) A lump sum or a periodic payment received by an individual 
Indian pursuant to the Class Action Settlement Agreement in the case 
entitled Elouise Cobell et al. v. Ken Salazar et al., 816 F. Supp. 2d 
10 (Oct. 5, 2011 D.D.C.), as provided in the Claims Resolution Act of 
2010 (Pub. L. 111-291); and
    (xxiii) Major disaster and emergency assistance received by 
individuals and families under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (Pub. L. 93-288, as amended) comparable 
disaster assistance provided by States, local governments, and disaster 
assistance organizations shall not be considered as income or a 
resource when determining eligibility for or benefit levels under 
federally funded income assistance or resource-tested benefit programs 
(42 U.S.C. 5155(d)).


[[Page 74498]]


    Dated: December 10, 2012.
Aaron Santa Anna,
Assistant General Counsel, Regulations Division.
[FR Doc. 2012-30210 Filed 12-13-12; 8:45 am]
BILLING CODE 4210-67-P