[Federal Register Volume 66, Number 77 (Friday, April 20, 2001)]
[Notices]
[Pages 20318-20320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9746]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4669-N-01]


Federally Mandated Exclusions From Income

AGENCY: Office of the Secretary, 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 other Federal statute from consideration as income for purposes of 
determining eligibility or benefits. This Notice updates the list of 
exclusions last published on August 3, 1993.

DATES: Effective Date for payments by the Indian Claims Commission: 
October 10, 1978.
    Effective Date for allowances, earnings and payments to AmeriCorps 
participants: October 1, 1993.
    Effective Date for the first $2000 of income received by individual 
Indians derived from interests in trust or restricted lands: January 1, 
1994.
    Effective Date for spina bifida payments: October 1, 1997.
    Effective Date for victim crime compensation under the Victims of 
Crime Act: October 1, 1999.
    Effective Date for payments received under programs funded in whole 
or in part under the Workforce Investment Act: August 7, 1998.

FOR FURTHER INFORMATION CONTACT: For the Rent Supplement (section 215), 
section 236, and section 8 programs administered under 24 CFR parts 
880, 881, and 883 through 886: Willie Spearmon, Director, Office of 
Housing Assistance and Grant Administration, Office of Housing, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 6138, Washington, DC 20410; telephone (202) 708-3000.
    For the Section 8 project-based programs administered under 24 CFR 
part 882 (Rental Certificates, Moderate Rehabilitation) and under part 
887 (Rental Vouchers), and the Public Housing Programs: Patricia 
Arnaudo, Senior Program Manager, Office of Public and Assisted Housing 
Delivery, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 4224, Washington, DC 20410, telephone: (202) 708-
0744, or the Public and Indian Housing Resource Center at 1-800-955-
2232. (With the exception of the telephone number for the PIH Resource 
Center, these are not toll-free numbers.) Persons with hearing or 
speech impairments may access these numbers via TTY by calling the 
Federal Information Relay Service at 1-800-877-8339.

    Please Note:
    Any member of the public who becomes aware of any other Federal 
statute that requires any other benefit 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 as contacts above or to the Rules Docket Clerk, room 10276. 
Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410.


SUPPLEMENTARY INFORMATION:

This Notice

    HUD's regulation at 24 CFR 5.609(c)(17) provides that HUD will 
periodically publish a Federal Register Notice listing the amounts 
specifically excluded by any other Federal statute from consideration 
as income for purposes of determining eligibility or benefits. This 
Notice updates the list of exclusions last published on August 3, 1993 
(58 FR 41287).
    Under several HUD programs (Rent Supplement under part 215; 
Mortgage Insurance and Interest Reduction Payment for Rental Projects 
under part 236; section 8 Housing Assistance programs; the Public 
Housing programs), the definition of income does not include amounts of 
other benefits specifically exempted by the Federal law. This notice 
reports that the following are not to be considered as income for 
purposes of the programs mentioned above: (1) Payments by the Indian 
Claims Commission to the Confederated Tribes and Bands of Yakima Indian 
Nation or the Apache Tribe of Mescalero Reservation; (2) allowances, 
earnings and payments to individuals participating in AmeriCorps; (3) 
the first $2,000 of income received by individual Indians derived from 
interests in trusts or restricted lands; (4) 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; (5) any amount of crime victim 
compensation that the applicant (under the Victims of Crime Act) 
receives 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; 
and (6) payments received under programs funded in whole or in part 
under the Workforce Investment Act of 1998.

Background

    Under certain HUD subsidized housing programs, annual income is a

[[Page 20319]]

factor in determining eligibility and level of benefits. Annual income 
is broadly defined as the anticipated total income from all sources 
received by every family member. Traditionally, HUD excludes certain 
types of benefits from applicants' and participants' annual income. In 
addition, under 24 CFR 5.609(c)(17), the definition of annual income 
excludes amounts specifically excluded by any other Federal statute 
from consideration for purposes of determining eligibility for or level 
of benefits to be received under the HUD programs in question. HUD 
programs other than those specifically listed in this notice may be 
affected by changes in the definition of annual income. This is because 
some programs, for example, the sections 202 and 811 Capital Advance 
Programs, reference 24 CFR 5.609 for their definition of income.
    Public Law 95-433, approved October 10, 1978, excludes payments by 
the Indian Claims Commission to the Confederated Tribes and Bands of 
Yakima Indian Nation or the Apache Tribe of Mescalero Reservation. The 
law provides:

    Any part of any judgment funds referred to in the first section 
of this Act 25 U.S.C. 609c-1 that may be distributed per capita to, 
or held in trust for the benefit of, the members of a tribe, 
including minor's shares shall not be subject to Federal or State 
income tax, and the per capita payment shall not be considered as 
income or resources when determining the extent of eligibility for 
assistance under the Social Security Act, or any other Federal or 
federally assisted program.

    The effective date of this provision is October 10, 1978. This 
exclusion is added to the list as paragraph (xv).
    Section 177 of the National and Community Service Act of 1990, as 
amended by the National and Community Trust Act of 1993 provides:

    Allowances, earnings, and payments to individuals participating 
in programs that receive assistance under this subchapter [42 U.S.C. 
12511 et seq.] shall not be considered to be income for the purposes 
of determining eligibility for and the amount of income transfer and 
in-kind aid furnished under any Federal or federally assisted 
program based on need, other than as provided under the Social 
Security Act (42 U.S.C. 301 et seq.).

    The effective date of this provision is October 1, 1993. This 
provision, which excludes amounts paid to AmeriCorps participants, is 
added to the list as paragraph (xvi).
    Paragraph (viii) is revised to clarify that the interest and 
investment income, up to $2000, accrued on funds held in trust or 
restricted land shall not be considered as income and it adds a new 
provision. Section 13736 of the Budget Reconciliation Act of 1993 (Pub. 
L. 103-66) (25 U.S.C. 1408), approved August 10, 1993 provides that:

    [I]nterest of individual Indians in trust or restricted lands 
shall not be considered a resource, and up to $2000 per year of 
income received by individual Indians that is derived from such 
interests shall not be considered income, in determining eligibility 
for assistance under the Social Security Act (42 U.S.C. 301 et seq.) 
or any other Federal or federally assisted program.

    The effective date of this provision is January 1, 1994. This 
exclusion is added to the list as part of paragraph (viii).
    Section 1805 of the VA, HUD Appropriations Act of 1997 (Pub.L. 104-
204; 38 U.S.C. 1805), approved October 1, 1997, provides:

    Notwithstanding any other provision of law, the allowance paid 
to a child under this section not be considered income or resources 
in determining eligibility for or the amount of benefits under any 
Federal or federally assisted program. 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 is excluded from income.

    The effective date of this provision is October 1, 1997. This 
exclusion is added to the list as paragraph (xvii).

    Section 10602(c) of the Victims of Crime Act (42 U.S.C. 10602) 
provides: Notwithstanding any other law, for the purpose of any 
maximum allowed income eligibility requirement in any Federal, 
State, or local government program using Federal funds that provides 
medical or other assistance (or payment or reimbursement of the cost 
of such assistance) that becomes necessary to an applicant for such 
assistance in full or in part because of the commission of a crime 
against the applicant, as determined by the Director, any amount of 
crime victim compensation that the applicant receives through a 
crime victim compensation program under this section shall not be 
included in the income of the applicant until the total amount of 
assistance that the applicant receives from all such programs is 
sufficient to fully compensate the applicant for losses suffered as 
a result of the crime.

    The effective date of this provision is October 1, 1999. This 
exclusion is added to the list as paragraph (xviii).
    Section 181 of the Workforce Investment Act of 1998 (Pub. L. 105-
220), approved August 7, 1998, provides that:

    Allowances, earnings and payments to individuals participating 
in programs under this title shall not be considered as income for 
the purposes of determining eligibility for and the amount of income 
transfer and in-kind aid furnished under any Federal or federally 
assisted program based on need, other than as provided under the 
Social Security Act (42 U.S.C. 301 et seq.). The effective date of 
this provision is August 7, 1998.

    This exclusion is added to the list as paragraph (xix).

Updated List of Federally Mandated Exclusions From Income

    The following updated list of federally mandated exclusions 
supersedes that notice published on August 3, 1993. The following list 
of program benefits is the comprehensive list of benefits that 
currently qualify for the income exclusion stated in 24 CFR 
5.609(c)(17) :
    (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 Services 
Act of 1973 (42 U.S.C. 5044(g), 5058);
    (iii) 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) Payments received under programs funded in whole or in part 
under the Job Training Partnership Act (29 U.S.C. 1552(b); (effective 
July 1, 2000, references to Job Training Partnership Act shall be 
deemed to refer to the corresponding provision of the Workforce 
Investment Act of 1998 (29 U.S.C. 2931);
    (vii) Income derived from the disposition of funds to the Grand 
River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04);
    (viii) 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. 1407-1408);
    (ix) Amounts of scholarships funded under title IV of the Higher 
Education Act of 1965, including awards under Federal work-study 
program or under the Bureau of Indian Affairs student assistance 
programs (20 U.S.C. 1087uu);
    (x) Payments received from programs funded under Title V of the 
Older
    Americans Act of 1985 (42 U.S.C. 3056(f));
    (xi) Payments received on or after January 1, 1989, from the Agent 
Orange Settlement Fund or any other fund

[[Page 20320]]

established pursuant to the settlement in In Re Agent-product liability 
litigation, M.D.L. No. 381 (E.D.N.Y.);
    (xii) Payments received under the Maine Indian Claims Settlement 
Act of 1980 (25 U.S.C. 1721);
    (xiii) 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);
    (xiv) Earned income tax credit (EITC) refund payments received on 
or after January 1, 1991 (26 U.S.C. 32(j));
    (xv) 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);
    (xvi) Allowances, earnings and payments to AmeriCorps participants 
under the National and Community Service Act of 1990 (42 U.S.C. 
12637(d));
    (xvii) 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 (38 U.S.C. 1805);
    (xviii) 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); and
    (xix) Allowances, earnings and payments to individuals 
participating in programs under the Workforce Investment Act of 1998 
(29 U.S.C. 2931).

    Dated: April 12, 2001.
Mel Martinez,
Secretary.
[FR Doc. 01-9746 Filed 4-19-01; 8:45 am]
BILLING CODE 4210-33-P