[Federal Register Volume 66, Number 77 (Friday, April 20, 2001)]
[Proposed Rules]
[Pages 20368-20370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9888]



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Part III





Department of Housing and Urban Development





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24 CFR Part 5



Temporary Assistance for Needy Families (TANF) Program; Conforming 
Changes to Annual Income Requirements for HUD's Public Housing and 
Section 8 Assistance Program; Proposed Rule

  Federal Register / Vol. 66, No. 77 / Friday, April 20, 2001 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 5

[Docket No. FR-4635-P-01]
RIN 2501-AC77


Temporary Assistance for Needy Families (TANF) Program; 
Conforming Changes to Annual Income Requirements for HUD's Public 
Housing and Section 8 Assistance Programs

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would update and clarify HUD's annual 
income requirements for its public housing and Section 8 assistance 
programs. Specifically, the proposed rule would clarify that annual 
income includes payments under the Temporary Assistance for Needy 
Families (TANF) program, but only to the extent such payments qualify 
as ``assistance'' under the TANF program regulations issued by the 
Department of Health and Human Services and are not otherwise excluded 
under HUD's regulation. HUD believes that the proposed clarifications 
will make the annual income requirements easier to understand for both 
program participants and public housing agencies. The proposed changes 
would ensure greater conformity between HUD's annual income 
requirements and the TANF program regulations.

DATES: Comments Due Date: June 19, 2001.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, 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. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 7:30 a.m. and 5:30 p.m. 
weekdays at the above address.

FOR FURTHER INFORMATION CONTACT:  Patricia Arnaudo, Senior Programs 
Manager, Department of Housing and Urban Development, Office of Public 
and Indian Housing, 451 Seventh Street, SW., Room 4222, Washington, DC 
20410; telephone (202) 708-0744 (this is not a toll-free telephone 
number). Persons with hearing or speech disabilities may access this 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

A. HUD's Annual Income Requirements

    HUD's regulations at 24 CFR part 5, subpart F establish 
requirements governing the determination of annual income of families 
who apply for, or receive assistance under, the Section 8 and public 
housing programs. The definition of ``annual income'' for these 
programs is located at Sec. 5.609. The HUD regulations define ``annual 
income'' to mean all amounts, monetary or not, which:
     Go to, or on behalf of, the family head or spouse (even if 
temporarily absent) or to any other family member;
     Are anticipated to be received from a source outside the 
family during the upcoming 12 month period; and
     Are not excluded under Sec. 5.609(c).
    Paragraph (b) of Sec. 5.609 provides several examples of amounts 
considered annual income, including ``welfare assistance'' payments 
(see Sec. 5.609(b)(6)). Additionally, Sec. 5.609(b)(6) provides rules 
for determining the amount of income when the welfare assistance 
payment includes an amount specifically designated for shelter and 
utilities that is subject to adjustment by the welfare assistance 
agency in accordance with the actual costs of these items. The term 
``welfare assistance'' is defined at Sec. 5.603, which states the 
definitions of terms used throughout 24 CFR part 5, subpart F. 
Specifically, this term is defined to mean ``[w]elfare or other 
payments to families or individuals, based on need, that are made under 
programs funded, separately or jointly, by Federal, State or local 
governments.''

B. ``Assistance'' Under the Temporary Assistance for Needy Families 
(TANF) Program

    HUD's definition of ``welfare assistance'' at Sec. 5.603 includes 
assistance provided under the Temporary Assistance for Needy Families 
(TANF) program. The TANF program was established pursuant to the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(Public Law 104-193, approved August 22, 1996) (PRWORA). This 
legislation enacted comprehensive reforms that changed the nation's 
welfare system dramatically. The PRWORA reforms placed a new focus on 
moving recipients into work and time limits on assistance. The TANF 
block grant program replaced the existing welfare program known as Aid 
to Families with Dependent Children (AFDC), which provided cash 
assistance to needy families on an entitlement basis. It also replaced 
the related programs known as the Job Opportunities and Basic Skills 
Training program (JOBS) and Emergency Assistance (EA).
    The TANF program is administered by the U.S. Department of Health 
and Human Services (HHS), which has issued implementing regulations in 
parts 260 through 265 of title 45 of the Code of Federal Regulations. 
The HHS regulations were established by final rule published on April 
12, 1999 (64 FR 17720). The HHS final rule followed publication of a 
November 20, 1997 proposed rule (62 FR 62124) and took into 
consideration the public comments received on the proposed rule. The 
final rule became effective on October 1, 1999.
    The TANF program regulations define the term ``assistance'' at 45 
CFR 260.31:


Sec. 260.31  What does the term ``assistance'' mean?

    (a)(1) The term ``assistance'' includes cash, payments, 
vouchers, and other forms of benefits designed to meet a family's 
ongoing basic needs (i.e., for food, clothing, shelter, utilities, 
household goods, personal care items, and general incidental 
expenses).
    (2) It includes such benefits even when they are:
    (i) Provided in the form of payments by a TANF agency, or other 
agency on its behalf, to individual recipients; and
    (ii) Conditioned on participation in work experience or 
community service (or any other work activity under 261.30 of this 
chapter).
    (3) Except where excluded under paragraph (b) of this section, 
it also includes supportive services such as transportation and 
child care provided to families who are not employed.
    The regulation at 45 CFR 260.31(b) also specifies what types of 
benefits are not considered ``assistance'' for purposes of the TANF 
program:

    (b) [The term ``assistance''] excludes:
    (1) Nonrecurrent, short-term benefits that:
    (i) Are designed to deal with a specific crisis situation or 
episode of need;
    (ii) Are not intended to meet recurrent or ongoing needs; and
    (iii) Will not extend beyond four months.
    (2) Work subsidies (i.e., payments to employers or third parties 
to help cover the costs of employee wages, benefits, supervision, 
and training);
    (3) Supportive services such as child care and transportation 
provided to families who are employed;
    (4) Refundable earned income tax credits;
    (5) Contributions to, and distributions from, Individual 
Development Accounts;

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    (6) Services such as counseling, case management, peer support, 
child care information and referral, transitional services, job 
retention, job advancement, and other employment-related services 
that do not provide basic income support; and
    (7) Transportation benefits provided under a Job Access or 
Reverse Commute project, pursuant to section 404(k) of [the Social 
Security] Act, to an individual who is not otherwise receiving 
assistance.

II. This Proposed Rule

    This proposed rule would make two changes designed to clarify the 
relationship between HUD's annual income requirements for its Section 8 
and public housing programs, and the TANF program definition of 
``assistance.'' First, the proposed rule would clarify that the term 
``welfare assistance,'' for purposes of calculating annual income, 
includes TANF payments, but only to the extent such payments meet the 
definition of ``assistance'' under 45 CFR 260.31 and are not otherwise 
excluded under Sec. 5.609(c).
    The proposed rule would also make a clarifying amendment to the 
definition of ``welfare assistance'' at Sec. 5.603. Specifically, the 
proposed rule would clarify that welfare assistance includes TANF 
``assistance,'' as that term is defined by the HHS regulation at 45 CFR 
260.31.
    HUD believes that the proposed clarifications will make the annual 
income requirements easier to understand for program participants and 
public housing agencies. The proposed amendments will also ensure 
greater conformity between the annual income requirements and the TANF 
program regulations.

III. HUD Public Housing and Welfare Coordination Efforts

    In May 2000, HUD issued Notice PIH 2000-11 providing guidance 
(including a model cooperation agreement) on the collaboration between 
public housing agencies (PHAs) and welfare (TANF) departments to 
implement the Quality Housing and Work Responsibility Act of 1998 
(Title V of the Fiscal Year 1999 HUD Appropriations Act; Public Law 
105-276, approved October 21, 1998) (QHWRA). This guidance was 
coordinated with HHS and sent to all HUD and HHS field offices, as well 
as to PHAs and TANF agencies. During 2000, HUD provided training for 
PHAs and public housing residents on QHWRA, which included Notice PIH 
2000-11. HUD invites comments on the use of Notice PIH 2000-11, as well 
as on whether other guidance and training is needed to effectuate 
further public housing and welfare coordination.

IV. Findings and Certifications

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 (42 U.S.C. 4223). The Finding of No Significant Impact is 
available for public inspection between the hours of 7:30 a.m. and 5:30 
p.m. weekdays in the Office of the Rules Docket Clerk, Office of 
General Counsel, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC.

Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act, 5 
U.S.C. 605(b), has reviewed and approved this rule and in so doing 
certifies that this rule would not have a significant economic impact 
on a substantial number of small entities. There are no anti-
competitive discriminatory aspects of the rule with regard to small 
entities, and there are not any unusual procedures that would need to 
be complied with by small entities.
    Notwithstanding HUD's determination that this rule will not have a 
significant economic effect on a substantial number of small entities, 
HUD specifically invites comments regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments and is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This proposed rule would not have 
federalism implications and would not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive Order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. This proposed rule would not impose 
any Federal mandates on any State, local, or tribal governments or the 
private sector within the meaning of Unfunded Mandates Reform Act of 
1995.

Catalog of Federal Domestic Assistance Numbers

    The Catalog of Federal Domestic Assistance numbers for these 
programs are 14.850 and 14.871.

List of Subjects in 24 CFR Part 5

    Administrative practice and procedure, Aged, Claims, Drug abuse, 
Drug traffic control, Grant programs--housing and community 
development, Grant programs--Indians, Individuals with disabilities, 
Loan programs--housing and community development, Low and moderate 
income housing, Mortgage insurance, Pets, Public housing, Rent 
subsidies, Reporting and recordkeeping requirements.

    Accordingly, for the reasons described in the preamble, HUD 
proposes to amend 24 CFR part 5 as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

    1. The authority citation for 24 CFR part 5 continues to read as 
follows:

    Authority:  42 U.S.C. 3535(d), unless otherwise noted.

Subpart F--Section 8 and Public Housing; Family Income and Family 
Payment; Occupancy Requirements for Section 8 Project-Based 
Assistance

    2. The authority citation for subpart F continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 1437n, and 
3535(d).

    3. In Sec. 5.603(b), revise the definition of ``Welfare 
assistance'' to read as follows:


Sec. 5.603  Definitions.

* * * * *
    Welfare assistance. Welfare or other payments to families or 
individuals, based on need, that are made under programs funded, 
separately or jointly, by Federal, State or local governments 
(including assistance provided under the Temporary Assistance for Needy 
Families (TANF) program, as that term is defined under the implementing 
regulations issued by the Department of Health and Human Services at 45 
CFR 260.31.)
* * * * *
    4. Revise Sec. 5.609(b)(6) to read as follows:


Sec. 5.609  Annual income.

* * * * *
    (b) * * *

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    (6) Welfare assistance payments.
    (i) Welfare assistance payments made under the Temporary Assistance 
for Needy Families (TANF) program are included in annual income only to 
the extent such payments:
    (A) Qualify as assistance under the TANF program definition at 45 
CFR 260.31; and
    (B) Are not otherwise excluded under paragraph (c) of this section.
    (ii) If the welfare assistance payment includes an amount 
specifically designated for shelter and utilities that is subject to 
adjustment by the welfare assistance agency in accordance with the 
actual cost of shelter and utilities, the amount of welfare assistance 
income to be included as income shall consist of:
    (A) The amount of the allowance or grant exclusive of the amount 
specifically designated for shelter or utilities; plus
    (B) The maximum amount that the welfare assistance agency could in 
fact allow the family for shelter and utilities. If the family's 
welfare assistance is ratably reduced from the standard of need by 
applying a percentage, the amount calculated under this paragraph shall 
be the amount resulting from one application of the percentage.
* * * * *

    Dated: April 12, 2001.
Mel Martinez,
Secretary.
[FR Doc. 01-9888 Filed 4-19-01; 8:45 am]
BILLING CODE 4210-33-P