[Federal Register Volume 59, Number 166 (Monday, August 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21187]


[[Page Unknown]]

[Federal Register: August 29, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 272 and 273

[Amendment No. 346]
RIN 0584-AA96

 

Food Stamp Program: Income Exemption for Homeless Households in 
Transitional Housing Required by the Mickey Leland Childhood Hunger 
Relief Act

AGENCY: Food and Nutrition Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule finalizes a proposed rulemaking published on April 
11, 1994. It amends food stamp regulations to implement Section 13914 
of the Mickey Leland Childhood Hunger Relief Act, which requires that 
the full value of any public or general assistance housing payments 
made to a third party on behalf of a household residing in transitional 
housing for the homeless be excluded from the household's income for 
food stamp purposes.

EFFECTIVE DATE: This rule is effective September 1, 1994.

FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Eligibility and 
Certification Rulemaking Section, Certification Policy Branch, Program 
Development Division, Food and Nutrition Service, USDA, 3101 Park 
Center Drive, Alexandria, Virginia, 22302, (703) 305-2496.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866, and therefore, has not been reviewed 
by the Office of Management and Budget.

Executive Order 12372

    The Food Stamp Program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.551. For the reasons set forth in the final 
rule and related notice(s) to 7 CFR 3015, subpart V (48 FR 29115, June 
24, 1983), this Program is excluded from the scope of Executive Order 
12372 which requires intergovernmental consultation with State and 
local officials.

Regulatory Flexibility Act

    This final rule has been reviewed with regard to the requirements 
of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.). 
Ellen Haas, the Assistant Secretary for Food and Consumer Services, has 
certified that this final rule does not have a significant economic 
impact on a substantial number of small entities. State and local 
welfare agencies will be the most affected to the extent that they 
administer the Program.

Paperwork Reduction Act

    This final rule does not contain reporting or recordkeeping 
requirements subject to approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act of 1980 (44 U.S.C. 3507).

Executive Order 12778

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is intended to have preemptive effect 
with respect to any State or local laws, regulations or policies which 
conflict with its provisions or which would otherwise impede its full 
implementation. This rule is not intended to have retroactive effect 
unless so specified in the ``effective date'' paragraph of this 
preamble. Prior to any judicial challenge to the provisions of this 
rule or the application of its provisions, all applicable 
administrative procedures must be exhausted. In the Food Stamp Program 
the administrative procedures are as follows: (1) for program benefit 
recipients--State administrative procedures issued pursuant to 7 U.S.C. 
2020(e)(10) and 7 CFR 273.15; (2) for State agencies--administrative 
procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 276.7 (for 
rules related to non-quality control (QC) liabilities); (3) for program 
retailers and wholesalers--administrative procedures issued pursuant to 
7 U.S.C. 2023 set out at 7 CFR 278.8.

Background

    On April 11, 1994, the Department published a proposed rule at 59 
FR 17050, to implement Section 13914 of Chapter 3, Title XIII of the 
Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66 (the Mickey 
Leland Childhood Hunger Relief Act) (the 1993 Leland Act). Section 
13914 revised section 5(k)(2)(F) of the Food Stamp Act of 1977, as 
amended, 7 U.S.C. 2014(k)(2)(F), to require that the full amount of any 
public assistance/general assistance (PA/GA) housing assistance 
payments made to a third party on behalf of a household residing in 
transitional housing for the homeless be excluded from a household's 
income for food stamp purposes.
    Comments were solicited on the provisions of the proposed 
rulemaking through June 10, 1994. This final action addresses the 
commenters' concerns. Comments which were unclear or not pertinent to 
this rulemaking are not addressed in this preamble. Readers are 
referred to the proposed rule for a more complete understanding of this 
final action.
    The Department received 2 comment letters on the proposed rule, 
both supportive of the proposed provision. The first commenter wrote 
that although the immediate crisis of homelessness is lifted when a 
household enters a transitional housing program, the household may 
continue to face the threat of homelessness for some time to come. The 
commenter felt that it only made sense, therefore, to disregard 
transitional housing payments as income for food stamp purposes because 
the increased food stamps which would result could very well make the 
difference as to whether or not a household is able to remain in its 
residence.
    The second commenter supported the Department's decision to use the 
Department of Housing and Urban Development's (HUD) current definition 
of transitional housing, established in Section 1403(a) of the Stewart 
B. McKinney Homeless Housing Assistance Amendments Act of 1992, Title 
XIV of the Housing and Community Development Act of 1992, Pub. L. 102-
550 (the 1992 McKinney Act), 42 U.S.C. 11384(b), as the criteria for 
evaluating whether housing programs are transitional. In the preamble 
of the proposed rule (59 FR at 17051), the Department chose not to 
promulgate regulations which would further define the term 
``transitional housing.'' The Department felt that the intent of the 
1993 Leland Act would best be served by allowing State agencies to make 
case-by-case determinations as to whether housing for homeless 
households was transitional or permanent using the 1992 McKinney Act's 
definition as an evaluation criterion. Housing is transitional if its 
purpose ``is to facilitate the movement of homeless individuals and 
families to permanent housing within 24 months or such longer period as 
the Secretary [of Housing and Urban Development] determines 
necessary.'' 42 U.S.C. 11384(b). This definition of transitional 
housing does not exclude specific types of housing and does not require 
the presence of cooking facilities for a dwelling to be considered 
transitional housing.
    The commenter felt that the breadth and inclusiveness of the 
McKinney Act's definition of transitional housing is the strength of 
the proposed rule. The commenter wrote that the definition ``helps each 
locale to devise a continuum of care that meets its particular needs by 
permitting it to use the form of transitional housing that is best 
suited to the local system.'' However, the commenter hoped that the 
Department's intention to afford State agencies latitude in determining 
whether housing is transitional will not mean that local transitional 
housing programs will have to conform to arbitrary State definitions of 
transitional housing in order for clients to get all of the food stamps 
to which they should be entitled.
    It is the Department's intention that all types of housing meant to 
be transitional should be considered as such for the purposes of the 
exclusion granted by Section 13914 of the 1993 Leland Act. Thus, the 
Department encourages State agencies when administering the exclusion 
to adopt a flexible definition of transitional housing so that clients 
participating in local housing programs meant to be transitional will 
not be denied the exclusion.
    No other comments were received on the provision of the proposed 
rule. Therefore, the Department is adopting the proposed rule as final 
without change.

Implementation

    Section 13971 of the 1993 Leland Act requires that the provisions 
of this rulemaking be effective and implemented September 1, 1994. The 
provision must be implemented for all households that newly apply for 
Program benefits on or after the required implementation date. The 
current caseload shall be converted to these provisions at the 
household's request, at the time of recertification, or when the case 
is next reviewed, whichever occurs first. The State agency must provide 
restored benefits to such households back to the required 
implementation date or the date of application whichever is later. If 
for any reason a State agency fails to implement on the required 
implementation date, restored benefits shall be provided, if 
appropriate, back to the required implementation date or the date of 
application whichever is later. Any variances resulting from 
implementation of the provisions of this amendment shall be excluded 
from Quality Control error analysis for 120 days from this required 
implementation date in accordance with 7 CFR 275.12(d)(2)(vii).

List of Subjects

7 CFR Part 272

    Alaska, Civil Rights, Food Stamps, Grant programs-social programs, 
Reporting and recordkeeping requirements.

7 CFR Part 273

    Administrative practice and procedure, Aliens, Claims, Food stamps, 
Fraud, Grant programs-social programs, Penalties, Records, Reporting 
and recordkeeping requirements, Social security, Students.

    Accordingly, 7 CFR Parts 272 and 273 are amended as follows:
    1. The authority citation for 7 CFR Parts 272 and 273 continues to 
read as follows:

    Authority: 7 U.S.C. 2011-2032.

PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES

    2. In Sec. 272.1, paragraph (g)(136) is added to read as follows:


Sec. 272.1  General terms and conditions.

* * * * *
    (g) Implementation * * *
    (136) Amendment No. 346. The provision of Amendment No. 346 
regarding an income exclusion for homeless households living in 
transitional housing is effective and must be implemented no later than 
September 1, 1994. Any variances resulting from implementation of the 
provisions of this amendment shall be excluded from error analysis for 
120 days from this required implementation date in accordance with 7 
CFR 275.12(d)(2)(vii). The provision must be implemented for all 
households that newly apply for Program benefits on or after the 
required implementation date. The current caseload shall be converted 
to these provisions at the household's request, at the time of 
recertification, or when the case is next reviewed, whichever occurs 
first. The State agency must provide restored benefits to such 
households back to the required implementation date or the date of 
application whichever is later. If for any reason a State agency fails 
to implement on the required implementation date, restored benefits 
shall be provided, if appropriate, back to the required implementation 
date or the date of application, whichever is later.

PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS

    3. In Sec. 273.9, paragraph (c)(1)(ii)(D) is revised to read as 
follows:


Sec. 273.9  Income and deductions.

* * * * *
    (c) Income exclusions. * * *
    (1) * * *
    (ii) * * *
    (D) Housing assistance payments made to a third party on behalf of 
a household residing in transitional housing for the homeless;
* * * * *
    Dated: August 2, 1994.
Ellen Haas,
Assistant Secretary for Food and Consumer Services.
[FR Doc. 94-21187 Filed 8-26-94; 8:45 am]
BILLING CODE 3410-30-U