[Federal Register Volume 77, Number 142 (Tuesday, July 24, 2012)]
[Notices]
[Pages 43347-43349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18056]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5635-N-01]


Federally Mandated Exclusions From Income

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, and Office of the Assistant Secretary for Housing-Federal 
Housing Commissioner, 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. This notice lists those 
exclusions. This notice also lists federal statutes that require 
certain income sources to be disregarded with regard to specific HUD 
programs. This notice updates the list of exclusions last published on 
April 20, 2001, by amending, removing, and adding exclusions.

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 Seventh 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 Seventh 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, 
Department of Housing and Urban Development, Room 4126, Department of 
Housing and Urban Development, 451 Seventh Street SW., 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 http://federalrelay.us/ or http://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); 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 benefits 
specifically excluded by federal

[[Page 43348]]

law. This notice updates the list of federally mandated exclusions last 
published on April 20, 2001 (66 FR 20318) to include the following:
    (1) Assistance from the School Lunch Act and the Child Nutrition 
Act of 1966 (42 U.S.C. 1771);
    (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; and
    (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.

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 or 
regulation.
    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, and are applicable only to the particular HUD program 
referenced.

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 School Lunch Act and the Child Nutrition 
Act of 1966, provides:

    The value of assistance to children under this Act shall not be 
considered to be income or resources for any purpose under any 
Federal or state laws including, but not limited to, laws relating 
to taxation, welfare, and public assistance programs. Expenditures 
of funds from state and local sources for the maintenance of food 
programs for children shall not be diminished as a result of funds 
received under this Act.

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, 
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 
(42 U.S.C. 4501), amended the definition of annual income in 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. The Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 
111-269, approved October 10, 2010), amended the definition of income 
contained in the Native NAHASDA applicable to programs authorized under 
NAHASDA and administered by the Office of Native American Programs 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 (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. 
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, approved 
December 8, 2010), 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. The law provides:

    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 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).

Updated List of Federally Mandated Exclusions From Income

    The following updated list of federally mandated exclusions 
supersedes that notice published in the Federal Register on April 20, 
2001. 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) 
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));

[[Page 43349]]

    (ii) Payments to Volunteers under the Domestic Volunteer Services 
Act of 1973 (42 U.S.C. 5044(f)(1), 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) Income derived from the disposition of funds to the Grand 
River Band of Ottawa Indians (Pub. L. 94-540, 90 Stat. 2503-04);
    (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. 1407-8);
    (viii) Amounts of scholarships funded under Title IV of the Higher 
Education Act of 1965, 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, the exception 
found in Sec.  237 of Public Law 109-249 applies and requires that the 
amount of financial assistance in excess of tuition shall be considered 
income in accordance with the provisions codified at 24 CFR 
5.609(b)(9), except for those persons with disabilities as defined by 
42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109-247);
    (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 or any other fund established pursuant to the 
settlement in the In Re Agent Orange liability litigation, M.D.L. No. 
381 (E.D.N.Y.) (Pub. L. 101-201 and 101-39);
    (xi) Payments received under the Maine Indian Claims Settlement Act 
of 1980 (Public Law 96-420, 25 U.S.C. 1721) pursuant to 25 U.S.C. 
1728(c);
    (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 (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);
    (xvii) Allowances, earnings and payments to individuals 
participating in programs under the Workforce Investment Act of 1998 
(29 U.S.C. 2931);
    (xviii) Any amount received under the School Lunch Act 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. 
1437) by Section 2608 of the Housing and Economic Recovery Act of 2008 
(Pub. L. 110-289, 42 U.S.C. 4501);
    (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) to the definition of income 
applicable to programs authorized under the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101) and 
administered by the Office of Native American Programs; and
    (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., United States 
District Court, District of Columbia, as provided in the Claims 
Resolution Act of 2010 (Pub. L. 111-291).

    Dated: July 17, 2012.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing.
Carol J. Galante,
Acting Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 2012-18056 Filed 7-23-12; 8:45 am]
BILLING CODE 4210-67-P