[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Rules and Regulations]
[Pages 6820-6821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3413]



[[Page 6819]]

-----------------------------------------------------------------------

Part III





Department of Housing and Urban Development





-----------------------------------------------------------------------



24 CFR Parts 5 and 982



Determining Adjusted Income in HUD Programs Serving Persons With 
Disabilities: Requiring Mandatory Deductions for Certain Expenses; and 
Disallowance for Earned Income--Technical Amendments; Final Rule

  Federal Register / Vol. 67, No. 30 / Wednesday, February 13, 2002 / 
Rules and Regulations  

[[Page 6820]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR PARTS 5 and 982

[Docket No. FR-4608-F-04]
RIN 2501-AC72


Determining Adjusted Income in HUD Programs Serving Persons With 
Disabilities: Requiring Mandatory Deductions for Certain Expenses; and 
Disallowance for Earned Income---Technical Amendments

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule; corrections.

-----------------------------------------------------------------------

SUMMARY: This document makes two technical corrections to the final 
rule published on January 19, 2001, that amended HUD's regulations in 
part 5, subpart F, to disregard certain increases in earned income to 
persons with disabilities in specific HUD programs.

EFFECTIVE DATE: March 15, 2002.

FOR FURTHER INFORMATION CONTACT: Patricia Arnaudo, Office of Public and 
Indian Housing, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410. Telephone (202) 708-0744 
(this is not a toll-free number). Persons with hearing-or speech-
impairments may call 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    On January 19, 2001 (66 FR 6218), the Department published a final 
rule in the Federal Register that disregarded certain increases in 
earned income to persons with disabilities served by the following HUD 
programs--HOME Investment Partnerships, Housing Opportunities for 
Persons with AIDS, Supportive Housing, and Housing Choice Voucher. As 
explained in the final rule, ``HUD proposed these benefit extensions to 
persons with disabilities because HUD believes that these deductions 
and the disregard of earned income constitute an important step in 
helping persons with disabilities find employment and retain 
employment.'' Since publication of the January 19, 2001 rule, two 
technical errors have been identified and they are described below.

II. Technical Corrections Made by This Rule

A. Definition of ``Qualified Family''

    In defining the term ``qualified family'' in the January 19, 2001 
final rule (66 FR 6218), Sec. 5.617 (b) refers to a ``disabled 
family''--defined in 24 CFR 5.403 as a family whose head, spouse or 
sole member is a person with disabilities. The definition of 
``qualified family'' as it appears in Sec. 5.617 of the January 19, 
2001 final rule is in error. The definition of a qualified family was 
intended to mirror the provisions of Sec. 960.255 for the public 
housing program and provide that a qualified family includes any family 
residing in housing assisted under one of the included programs whose 
annual income increases as a result of employment of a family member 
who is a person with disabilities eligible for the disallowance. To 
clarify that a qualified family is not limited to a family in which the 
head of household or spouse is disabled, the word ``disabled'' has been 
removed from the definition of ``qualified family'' as it now appears 
in Sec. 5.617. With this revision, the definition of ``qualified 
family'' will now read: ``A family residing in housing * * *.''

B. Applicability of the ``Disallowance''

    This document makes a further correction to clarify that the 
January 19, 2001 final rule intended to cover only families who are 
already tenants receiving assistance under one of the HUD programs 
identified in the rule, and not to applicants for such assistance. The 
final rule, at Sec. 982.201(b) (3), refers to the annual income of an 
applicant family rather than of a participant family.
    The Department did not intend, in promulgating the January 19, 2001 
final rule, to extend the benefits of the rule to applicants. The 
limitation is consistent with the provision in Sec. 960. 255 (c), which 
states that ``The disallowance of increases in income as a result of 
employment under this section does not apply for purposes of admission 
to the program * * *.'' Section 5.617 (d), in identical language, also 
makes the disallowance inapplicable to applicants.
    Accordingly, this document removes the reference in 
Sec. 982.201(b)(3) to an ``applicant family,'' substituting therefor 
the term ``participant family.'' As corrected, Sec. 982.201(b)(3) now 
reads:

    The annual income (gross income) of a participant family is used 
both for determination of income eligibility under paragraph (b)(1) 
of this section and for targeting under paragraph (b)(2)(i) of this 
section. In determining annual income of a participant family which 
includes persons with disabilities, the determination must include 
the disallowance of increase in annual income as provided in 24 CFR 
5.617, if applicable.

List of Subjects

24 CFR Part 5

    Administrative practice and procedure, Aged, Claims, Grant 
programs--housing and community development, Individuals with 
disabilities, Loan programs--housing and community development, Low and 
moderate income housing, Mortgage insurance, Penalties, Pets, Public 
housing, Rent subsidies, Reporting and recordkeeping requirements, 
Social Security, Unemployment, Wages.

24 CFR Part 982

    Grant programs--housing and community development, Grant 
program'Indians, Public Housing, Rent subsidies, Reporting and 
recordkeeping requirements.

    Accordingly, 24 CFR parts 5 and 982 are corrected by making the 
following correcting amendments:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

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

    Authority: 42 U. S. C. 3535 (d).


    2. Section 5.617 is amended by revising the definition of Qualified 
family in paragraph (b) to read as follows:


Sec. 5.617  Self-sufficiency incentives for persons with disabilities--
-Disallowance of increase in annual income.

* * * * *
    (b) * * *
    Qualified family. A family residing in housing assisted under one 
of the programs listed in paragraph (a) of this section or receiving 
tenant-based rental assistance under one of the programs listed in 
paragraph (a) of this section.
* * * * *

PART 982--SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER 
PROGRAM

    3. The authority citation for part 982 continues to read as 
follows:

    Authority: 42 U. S. C. 1437f and 42 U. S. C. 3535(d).


    4. Section 982.201 is amended by revising paragraph (b)(3) to read 
as follows:


Sec. 982.201  Eligibility and targeting.

* * * * *
    (b) * * *
    (3) The annual income (gross income) of a participant family is 
used both for determination of income-eligibility under paragraph 
(b)(1) of this section

[[Page 6821]]

and for targeting under paragraph (b)(2)(i) of this section. In 
determining annual income of a participant family which includes 
persons with disabilities, the determination must include the 
disallowance of increase in annual income as provided in 24 CFR 5.617, 
if applicable.
* * * * *

    Dated: February 6, 2002.
Mel Martinez,
Secretary.
[FR Doc. 02-3413 Filed 2-12-02; 8:45 am]
BILLING CODE 4210-33-P