[Federal Register Volume 88, Number 163 (Thursday, August 24, 2023)]
[Proposed Rules]
[Pages 57910-57915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18213]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Docket No. SSA-2023-0010]
RIN 0960-AI82


Expansion of the Rental Subsidy Policy for Supplemental Security 
Income (SSI) Applicants and Recipients

AGENCY: Social Security Administration.

ACTION: Notice of proposed rulemaking.

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SUMMARY: We propose to revise our regulations by applying nationwide 
the In-Kind Support and Maintenance (ISM) rental subsidy exception that 
is currently in place for SSI applicants and recipients residing in 
seven States. The exception recognizes that a ``business arrangement'' 
exists when the amount of required monthly rent for a property equals 
or exceeds the presumed maximum value. This proposed rule would improve 
nationwide program uniformity, and, we expect, improve equality in the 
application of the rental subsidy policy.

DATES: To ensure that your comments are considered, we must receive 
them no later than October 23, 2023.

ADDRESSES: You may submit comments by any one of three methods--
internet, fax, or mail. Do not submit the same comments multiple times 
or by more than one method. Regardless of which method you choose, 
please state that your comments refer to Docket No. SSA-2023-0010 so 
that we may associate your comments with the correct regulation.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available. We strongly urge 
you not to include in your comments any personal information, such as 
Social Security numbers or medical information.
    1. Internet: We strongly recommend that you submit your comments 
via the internet. Please visit the Federal eRulemaking portal at 
https://www.regulations.gov. Use the ``search'' function to find docket 
number SSA-2023-0010. The system will issue a tracking number to 
confirm your submission. You will not be able to view your comment 
immediately because we must post each comment manually. It may take up 
to one week for your comment to be viewable.
    2. Fax: Fax comments to 1-833-410-1631.
    3. Mail: Mail your comments to the Office of Legislation and 
Congressional Affairs, Regulations and Reports Clearance Staff, Mail 
Stop 3253 Altmeyer, 6401 Security Blvd., Baltimore, MD 21235.
    Comments are available for public viewing on the Federal 
eRulemaking portal at https://www.regulations.gov or in person, during 
regular business hours, by arranging with the contact person identified 
below.

FOR FURTHER INFORMATION CONTACT: Tamara Levingston, Office of Income 
Security Programs, 6401 Security Blvd., Robert M. Ball Building, Suite 
2512B, Woodlawn, MD 21235, 410-966-7384. For information on eligibility 
or filing for benefits, call our national toll-free number, 1-800-772-
1213 or TTY 1-800-325-0778, or visit our internet site, Social Security 
Online, at https://www.ssa.gov.

SUPPLEMENTARY INFORMATION:

Background

    We administer the SSI program, which provides monthly payments to: 
(1) adults and children with a disability or blindness; and (2) adults 
aged 65 or older. Eligible individuals must meet all the requirements 
in the Social Security Act (Act), including having resources and income 
below specified amounts.\1\ Since SSI is a needs-based program for 
persons with limited income and resources, we must consider the amount 
of income an applicant or recipient has when determining whether that 
person is eligible to receive SSI payments. If the individual is 
eligible, their income is also a factor in calculating the amount of 
their monthly SSI payments.
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    \1\ See 42 U.S.C. 1382 and 20 CFR 416.202 for a list of the 
eligibility requirements. See also 20 CFR 416.420 for general 
information on how we compute the amount of the monthly payment by 
reducing the benefit rate by the amount of countable income as 
calculated under the rules in subpart K of 20 part 416.
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    Specifically, once an individual is determined eligible for SSI, 
their monthly payment amount is determined by subtracting their 
countable monthly income from the Federal benefit rate (FBR),\2\ which 
is the monthly maximum Federal SSI payment.\3\ The FBR for 2023 is $914 
for an individual and $1,371 for an eligible individual with an 
eligible spouse.\4\ Generally, the more income an individual has, the 
less their SSI payment will be.\5\ For the purposes of SSI, ``income'' 
is defined as anything that an individual receives in cash or in kind 
that the individual can use to meet their needs for food and 
shelter.\6\ The Act and our regulations \7\ define income as 
``earned,'' such as wages from work, and ``unearned,'' such as gifted 
cash.\8\ Our proposed regulatory change pertains to rental subsidy, 
which is a type of ISM under the broader umbrella of unearned income.
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    \2\ See 20 CFR 416.1101.
    \3\ See 20 CFR 416.405 through 416.415. Some States supplement 
the FBR amount.
    \4\ 87 FR 64296, 64298 (2022) A table of the monthly maximum 
Federal SSI payment amounts for an eligible individual, and for an 
eligible individual with an eligible spouse, is available at https://www.ssa.gov/oact/cola/SSIamts.html. When the FBR is adjusted for 
the cost of living, the amount of the potential ISM reduction 
adjusts accordingly.
    \5\ See 20 CFR 416.1100.
    \6\ See 20 CFR 416.1102.
    \7\ See 42 U.S.C. 1382a; and 20 CFR 416.1102-1124.
    \8\ See 20 CFR 416.1104.
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ISM

    As noted above, income that affects an individual's monthly SSI 
payment can also be provided in kind.\9\ Generally, we value in-kind 
items at their current market value and apply the various exclusions 
for both earned and unearned income; however, we have special rules for 
valuing food or shelter that is received as unearned income (ISM).\10\ 
Under our current regulations, ISM means any food or shelter that is 
given to an individual or that the individual receives because someone 
else pays for it.\11\ Shelter includes room, rent, mortgage payments, 
real property taxes, heating fuel, gas, electricity, water, sewerage, 
and garbage collection services.\12\ For example, if an SSI recipient's 
brother lets the recipient live rent-free in his home throughout a 
calendar month, we would consider the shelter the brother provides as 
ISM to the recipient. We have two rules for valuing the ISM that we 
must count: (1) currently, the one-third reduction rule (VTR) applies 
if the individual is living in the household of a person, throughout a 
month, who provides the individual with both food and shelter, and (2) 
the presumed maximum value rule (PMV) applies in all other situations 
in which the individual is

[[Page 57911]]

receiving countable ISM.\13\ For example, a recipient lives with a 
sibling. The recipient receives SNAP to pay for their own food, but 
does not pay shelter expenses. The sibling pays all the shelter 
expenses. Based on the recipient paying for their own food, SSI is 
calculated under the PMV rule. The VTR cannot apply, because the 
recipient is not receiving both food and shelter from the household.
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    \9\ See 20 CFR 416.1102.
    \10\ See 20 CFR 416.1130(a).
    \11\ See 20 CFR 416.1130(b). We recently published a proposed 
rule to remove food from the calculation of ISM. See 88 FR 9779 
Omitting Food From In-Kind Support and Maintenance Calculations, 
published February 15, 2023.
    \12\ See 20 CFR 416.1130(b).
    \13\ 20 CFR 416.1130(c).
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    The VTR rule is governed by legislation and requires SSA to reduce 
the applicable federal benefit rate by one-third when the recipient 
receives both food and shelter, throughout a month, from the household 
in which they reside.\14\ The PMV rule, which is one-third the federal 
benefit rate plus $20, only applies if the recipient receives food or 
shelter from within the household. In addition, the PMV rule allows 
recipients to rebut the maximum amount of ISM being charged, by 
providing the actual value of the ISM being received. Rebuttal is not 
an option under the VTR rule.
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    \14\ Social Security Act Sec.  1612(a)(2)(A).
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Rental Subsidy

    Our current regulation further clarifies that an individual is not 
receiving ISM in the form of room or rent if they are paying the 
required monthly rent charged under a ``business arrangement.'' \15\ 
Under the current general definition, a ``business arrangement'' exists 
when the amount of monthly rent required to be paid equals the current 
monthly rental value (CMRV)--that is, the price of the rent on the open 
market in the individual's locality.\16\ For example, if the owner of 
an apartment would rent that property to any potential tenant for $800 
per month, then the CMRV is $800. Consequently, in this example, if an 
SSI recipient agrees to pay the landlord rent in the amount of $800 per 
month, a ``business arrangement'' would exist and the SSI recipient 
would not be receiving ISM in the form of room or rent. Conversely, 
under our current general definition of a ``business arrangement,'' if 
the SSI recipient rented the same property but paid only $400 per 
month, a ``business arrangement'' would not exist because $400 is less 
than the CMRV.\17\
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    \15\ 20 CFR 416.1130(b).
    \16\ Id. See also 20 CFR 416.1101.
    \17\ In this instance, we would apply ISM's PMV rule, as the 
individual is receiving some level of support from the landlord by 
paying less than the CMRV of the shelter.
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    When we develop possible rental subsidy, we first determine whether 
the required monthly rent is equal to the CMRV. In practice, our 
technicians must contact the landlord for information on the required 
monthly rent or reach out to an appropriate source for information 
about the CMRV for that property and locality. This source can be the 
landlord or another knowledgeable source (e.g., a real estate firm or 
rental management agency). With this information in hand, we then 
compare the rent the individual is paying to the CMRV and document the 
reason for any reduced monthly rent. If the required monthly rent is 
less than the CMRV, we count the difference between the required 
monthly rent and the CMRV as ISM to the SSI applicant or recipient.\18\ 
We use the presumed maximum value (PMV) rule to value this type of ISM. 
In valuing shelter under the PMV rule, instead of determining the 
actual dollar value of the shelter, we presume that the shelter is 
worth one-third of the FBR plus the amount of the $20 general income 
exclusion.\19\ SSI applicants and recipients may rebut this presumption 
by showing that the value of the ISM they are receiving is less than 
the PMV.\20\ Thus, under this current general policy, the amount of ISM 
counted is capped at the PMV. Conversely, if the rent equals or exceeds 
the CMRV, we determine that there is no rental subsidy.
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    \18\ See Program Operations Manual System (POMS) SI 00835.380E.
    \19\ See 20 CFR 416.1140(a).
    \20\ See 20 CFR 416.1140(a)(2).
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    Take the example of an SSI recipient living with their ineligible 
spouse and child who is renting a single-family home owned by the 
recipient's mother. The mother-landlord alleges the property has a CMRV 
of $1,500 per month, but she is requiring the SSI household to pay only 
$350 in rent per month. To calculate the rental subsidy under the 
current general policy, we would subtract the required monthly rent 
from the CMRV ($1,500 - $350 = $1,150), in which case the rental 
subsidy would be $1,150. We would divide the total rental subsidy by 
the number of people in the household ($1,150/3 = $383.33).\21\ Per 
regulation, the maximum amount of ISM that can be charged is $324.66 a 
month for 2023. Therefore, the recipient's SSI payment is $589.34 ($914 
(FBR 2023)--$324.66 (PMV for 2023)). This is with the understanding 
that the recipient has no other income.\22\
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    \21\ The method for calculating the rental subsidy is described 
in POMS SI 00835.380(E)(1) Procedure for valuing the actual value 
(AV) of the rental subsidy. This methodology reflects our ISM 
regulatory policy's approach of examining rental subsidy from the 
perspective of the household (see e.g., 20 CFR 416.1130).
    \22\ See 20 CFR 416.1140(a).
    \23\ See 20 CFR 416.1130(b); Jackson v. Schweiker, 683 F.2d 1076 
(7th Cir. 1982).
    \24\ See Acquiescence Ruling (AR) 90-2(2): Ruppert v. Bowen, 871 
F.2d 1172 (2d Cir. 1989)--Evaluation of a Rental Subsidy as In-Kind 
Income for Supplemental Security Income (SSI) Benefit Calculation 
Purposes--Title XVI of the Social Security Act. If we finalize this 
proposed rule, we will rescind AR 90-2(2) as obsolete, in accordance 
with 20 CFR 416.1485(e)(4).
    \25\ See Diaz v. Chater, No. 3:95-cv-01817-X (N.D. Tex. Apr. 17, 
1996); POMS SIDAL 00835.380.
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    The following chart illustrates the above example:

            Example 1-- Current General Rental Subsidy Policy
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                Equation                    Application of the example
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CMRV-Required Monthly Rent = Household   $1,500 - $350 = $1,150.
 ISM.
Household ISM/Number of people in        $1,150/3 people in household =
 household = ISM/Rental Subsidy to the    $383.33.
 SSI Recipient.
ISM is capped at the PMV...............  $383.33 > $324.66.
SSI payment = FBR-PMV..................  SSI payment = $914 - $324.66 =
                                          $589.34.
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Exception

    Following court cases that challenged how we applied ISM rules for 
rental subsidy, we provided an exception for residents living in 
jurisdictions covered by the Court of Appeals for the Seventh Circuit 
(in our regulations),\23\ residents in the Second Circuit (in an 
Acquiescence Ruling),\24\ and residents of Texas (in the Program 
Operations Manual System).\25\ For residents of these seven excepted 
States (Connecticut, New York, Vermont, Illinois, Indiana, Wisconsin, 
and Texas), a ``business arrangement'' exists when the required monthly 
rent the SSI recipient is required to pay equals or exceeds the

[[Page 57912]]

PMV.\26\ In these States, if the required amount of rent is less than 
the PMV, then the value of the rental subsidy is the difference between 
the required monthly rent and the PMV or the CMRV, whichever is less. 
This means there may be a lower threshold for what qualifies as a 
``business arrangement'' for applicants and recipients in these 
excepted States because, in many cases, the PMV is lower than the CMRV. 
Application of this exception tends to reduce the amount of ISM counted 
towards an individual's SSI payment, which generally results in a 
higher SSI payment amount. For example, an SSI recipient whose living 
arrangement is identical to that discussed in the prior example, but 
who resides in one of the seven States in which the exception applies, 
would not be charged ISM because the required monthly rent exceeds the 
PMV ($350 > $324.66). Consequently, the SSI recipient would continue to 
receive the FBR (provided they did not receive any other income 
countable for SSI purposes).
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    \26\ See POMS SI 00835.380.B.7.

   Example 2--Rental Subsidy Exception Policy Proposed To Be Extended
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PMV < CMRV.............................  $324.66 < $1,500.
Required Monthly Rent > PMV............  $350 > $324.66.
Therefore, no ISM to the SSI Recipient.  = SSI Payment = $914.
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    As illustrated by these examples, our current application of the 
ISM rules is not uniform nationwide, and the exception is an advantage 
only for those SSI applicants and recipients living in the seven 
excepted States.

Rationale for Regulatory Action

    We propose to change the rental subsidy policy in our regulations 
by applying nationally the definition of ``business arrangement'' that 
currently applies in only seven States because of the court decisions 
noted above. The rationale of the courts that resulted in the situation 
currently in place in seven states, in particular in the Seventh 
Circuit decision in Jackson and the Second Circuit decision in Ruppert, 
also supports extending this policy to the other states, as outlined in 
our proposed rule. In Jackson, the Seventh Circuit reasoned that it is 
not enough for a claimant to be provided shelter at a rate below market 
value for that difference to be counted as ``income'' for SSI purposes; 
rather, to be counted as ``income,'' the difference between the market 
value and the actual rental payment must result in increased purchasing 
power to meet the claimant's basic needs.\27\ The Seventh Circuit 
explained that ``purchasing power grows if in-kind contributions of 
shelter either make cash available to purchase necessities of life 
other than shelter or if, and to the extent, the quality of shelter 
itself is enhanced to meet basic needs.'' \28\ Similarly, in Ruppert, 
the Second Circuit found that the difference between the CMRV and the 
required monthly rent does not always constitute an actual economic 
benefit which should be counted as ``income'' for SSI purposes.\29\ To 
implement Ruppert, for residents of the Second Circuit, we announced 
that an applicant or recipient does not receive an ``actual economic 
benefit'' from a rental subsidy when the amount of required monthly 
rent equals or exceeds the PMV.\30\
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    \27\ Jackson, 683 F.2d at 1082-87; In Jackson, the Seventh 
Circuit addressed a situation where ``a very large percentage'' of 
an individual's income was already committed to shelter costs before 
the agency considered any unearned income from a rental subsidy. 
Under those circumstances, the additional value of the rental 
subsidy did not increase the individual's ability to pay for their 
other basic needs. See also Supplemental Security Income for the 
Aged, Blind, and Disabled; Subpart K--Income, 51 FR 13487, 13488 
(Apr. 21, 1986).
    \28\ Jackson, 683 F.2d at 1084.
    \29\ Ruppert, 871 F.2d at 1179-81; Social Security Acquiescence 
Ruling (AR) 90-2(2), 55 FR 28947, 28949 (July 16, 1990).
    \30\ AR 90-2(2), 55 FR at 28949.
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    Applying nationally the definition of ``business arrangement'' 
based on the PMV rather than the CMRV, and thus focusing on the SSI 
recipient's purchasing power or the actual economic benefit they 
receive, would also ensure that all SSI applicants and recipients, 
regardless of where they reside, would have the same policy applied to 
them regarding the definition of a business arrangement. This uniform 
definition of business arrangement means that no recipient's SSI 
payment amount would be lower simply because they reside in a State 
where the exception policy described above does not currently apply. 
This proposed policy change therefore supports our goal of enhancing 
equality in the programs we administer for all applicants and 
recipients.
    This proposal will also foster efficiency in our administration of 
the SSI program, because we no longer would have to apply different 
policies on the definition of a business arrangement depending on the 
SSI applicant or recipient's State of residence. In any program as 
large as ours, ``the need for efficiency is self-evident.'' \31\ As 
well, we expect that the proposal would improve customer service by 
reducing the amount of time we need to calculate SSI payment amounts in 
States in which the current exception does not apply. Because the 
exception is currently in place in some States, we already have a well-
established procedure for applying the exception, and we are confident 
that such a change can be applied nationwide with minimal operational 
or systems impact.
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    \31\ See Barnhart v. Thomas, 540 U.S. 20, 29 (2003); Heckler v. 
Campbell, 461 U.S. 458, 461, n.2 (1983).
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    We are also proposing this rule in response to specific requests 
from the public. Recently, we adopted the Social Security 
Administration's Agency Strategic Plan for Fiscal Years 2022-2026 
(Strategic Plan),\32\ which defines our long-term goals and objectives 
over the next four years to further our overall mission. Among the 
stated goals, we resolve to optimize the experience of our customers by 
adopting policies aimed at serving individuals and communities. Our 
Strategic Plan further commits to engage the public and external 
stakeholders to better inform our regulatory activities.\33\
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    \32\ Social Security Administration, Agency Strategic Plan: 
Fiscal Years 2022-2026, page 9, Strategic Goal 1: Optimize the 
Experience of SSA Customers and Strategic Objective 1.1--Identify 
and Address Barriers to Accessing Services. available at: https://www.ssa.gov/agency/asp/.
    \33\ Id.
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    In support of these goals, we have been in communication since 
October 2022 with advocate groups representing a wide variety of 
claimants and beneficiaries from diverse backgrounds. In response, we 
received numerous suggestions for ways to improve access to our 
programs, particularly to our SSI program. Among the recommendations we 
received were suggestions to update and streamline the SSI program's 
rules on ISM.
    As discussed above, the current lack of uniformity in our business 
arrangement definition can disadvantage affected SSI applicants

[[Page 57913]]

and recipients who do not live in States where the rental subsidy 
exception applies. The differing application of the business 
arrangement definition was noted by the external parties, who 
recommended that we apply the current rental subsidy exception 
nationwide as one way to streamline the SSI program and make it more 
equitable. We agree with this recommendation. The proposed rules, if 
finalized, would benefit SSI applicants and recipients, no matter the 
State they live in, and make the SSI program easier to administer. The 
proposed change would also make the SSI program more equitable by 
applying the rental subsidy policy uniformly to all affected SSI 
applicants and recipients, regardless of where they live.
    Moreover, as explained in the study Simplifying the Supplemental 
Security Income Program: Options for Eliminating the Counting of In-
kind Support and Maintenance, ``[a]lthough SSI eligibility was intended 
to be determined on the basis of objective information on income and 
resources, development of ISM is often based on estimates of food and 
shelter expenses provided by the applicant or recipient and verified by 
other household members.'' \34\ By applying the rental subsidy 
exception nationwide, the rent paid by the SSI applicant or recipient 
will be compared to a standard dollar amount--the PMV. Our technicians 
anticipate sending out fewer living arrangement development forms (form 
SSA-L5061, OMB 0960-0454) by instead confirming the limited necessary 
information with the landlord orally, namely: that the required rent 
amount is equal to or greater than the PMV.\35\ The more detailed 
estimates currently provided by the landlord or other household members 
under our existing regulations are therefore less likely to be needed 
or used in administering the SSI program. This reduced need to contact 
landlords or other third parties for information regarding the CMRV 
also increases the efficiency of the SSI program by reducing the number 
of instances in which we have to seek out that information (We note 
that we would need to contact someone other than the landlord only if 
we cannot verify information with the landlord directly.). In summary, 
then, this new policy will result in greater efficiency and time 
savings for our employees, and a reduction in the reporting burden for 
the public (see Paperwork Reduction Act section of the preamble).
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    \34\ See Balkus, Richard; Sears, James; Wilschke, Susan; and 
Wixon, Bernard. Simplifying the Supplemental Security Income 
Program: Options for Eliminating the Counting of In-kind Support and 
Maintenance. Social Security Bulletin, vol. 68, no. 4, 2008, 
www.ssa.gov/policy/docs/ssb/v68n4/v68n4p15.html.
    \35\ Claimants may provide certain types of evidence (e.g., a 
rental agreement or lease) to support their allegation of rent 
amount, and in these circumstances an SSA technician does not need 
to reach out to the landlord to further develop the allegation. 
However, SSA finds that in many circumstances claimants do not 
provide SSA with the necessary evidence. In these cases, SSA will 
attempt to contact the landlord by phone to orally confirm the rent 
amount. If the landlord is not successfully reached, SSA may still 
be required to send the form SSA-L5061. SSA seeks comment on 
additional procedural considerations and/or acceptable forms of 
evidence (e.g., proof of electronic transfer of funds in the alleged 
amount to the named landlord) that a claimant might provide that 
would be minimally burdensome while satisfactorily demonstrating 
proof of rent amount.
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Proposed Change

    As discussed above, we propose to apply nationwide the rental 
subsidy exception currently in place in seven States. Accordingly, our 
nationwide policy would be that a ``business arrangement'' exists when 
the amount of monthly rent required to be paid equals or exceeds the 
PMV. If the required amount of rent is less than the PMV, we would 
impute as ISM the difference between the required amount of rent and 
either the PMV or the CMRV, whichever is less. For example, if the 
required household rent is $300, and the CMRV amount is greater than 
the PMV, then the amount of household ISM would be $24.66 divided by 
the number of household members. However, this charge may be offset by 
other exclusions.

Rulemaking Analyses and Notices

    We will consider all comments we receive on or before the close of 
business on the comment closing date indicated above. The comments will 
be available for examination in the rulemaking docket for these rules 
at the above address. We will file comments received after the comment 
closing date in the docket and may consider those comments to the 
extent practicable. However, we will not respond specifically to 
untimely comments. We may publish a final rule at any time after close 
of the comment period.

Clarity of This Rule

    Executive Order 12866, as supplemented by Executive Order 13563 and 
Executive Order 14094, requires each agency to write all rules in plain 
language. In addition to your substantive comments on this proposed 
rule, we invite your comments on how to make the rule easier to 
understand.
    For example:
     Would more, but shorter, sections be better?
     Are the requirements in the rule clearly stated?
     Have we organized the material to suit your needs?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     What else could we do to make the rule easier to 
understand?
     Does the rule contain technical language or jargon that is 
not clear?
     Would a different format make the rule easier to 
understand, e.g., grouping and order of sections, use of headings, 
paragraphing?

When will we start to use this rule?

    We will not use this rule until we evaluate public comments and 
publish a final rule in the Federal Register. All final rules include 
an effective date. We will continue to use our current rules until that 
date. If we publish a final rule, we will include a summary of those 
relevant comments we received along with responses and an explanation 
of how we will apply the new rule.

Regulatory Procedures

Executive Order 12866, as Supplemented by Executive Order 13563 and 
Executive Order 14094

    We consulted with the Office of Management and Budget (OMB) and 
determined that this rule meets the criteria for a significant 
regulatory action under Executive Order 12866, as supplemented by 
Executive Order 13563 and Executive Order 14094. Therefore, OMB 
reviewed it.
Anticipated Transfers to Our Program
    Our Office of the Chief Actuary estimates that implementation of 
this proposed rule would result in a total increase in Federal SSI 
payments of $971 million over fiscal years 2024 through 2033, assuming 
implementation of this rule on April 29, 2024. These transfers reflect 
an estimation that approximately 41,000 individuals who would be 
eligible under our current rules will have their Federal SSI payment 
increased by an average of $128 per month attributable to 
implementation of this rule. There would also be an additional 14,000 
individuals who are not eligible under current rules who would be newly 
eligible and would apply for benefits under the proposed rule.
Anticipated Net Administrative Cost Savings to the Social Security 
Administration
    The Office of Budget, Finance, and Management estimates that this 
proposal will result in net

[[Page 57914]]

administrative savings of $10 million for the 10-year period from FY 
2024 to FY 2033. The net administrative savings is mainly a result of 
unit time savings as field office employees will not have to spend time 
developing CMRV for all rental subsidy calculations during initial 
claims, pre-effectuations reviews, redeterminations, and post-
eligibility actions. The savings are offset by costs to update our 
systems, costs to send notices to inform current recipients of the 
policy changes, costs to address inquiries from the notices, and costs 
because of more individuals' being eligible for SSI benefits, which 
increases claims, reconsiderations, appeals, redeterminations, and 
post-eligibility actions.
Anticipated Time-Savings and Qualitative Benefits to the Public
    We anticipate the following qualitative benefits generated from 
this proposed policy:
     Saving time and effort for claimants and third parties who 
may have evidence related to a claimant's application because they 
would need to submit less information. SSA estimates at a minimum this 
will result in more than 7,000 hours of time saved in annual reduced 
paperwork burden, representing an opportunity cost of $1,140,526 (see 
the Paperwork Reduction Act section of the preamble below for 
specifics).
     Potentially get faster determinations or decisions 
regarding SSI eligibility or payment amount, or both, which would have 
both quantitative effects financially and, qualitatively, may alleviate 
stress for applicants and recipients associated with the length of time 
it may take to obtain SSI.
     Administratively easier to apply the same policy 
nationwide.
Anticipated Qualitative Costs
    We do not anticipate more than de minimis costs associated with 
this rulemaking. We do not anticipate that this proposal would affect 
labor market participation in any significant way, in part because of 
the limited understanding of the current policy in the beneficiary 
community.

Executive Order 13132 (Federalism)

    We analyzed this proposed rule in accordance with the principles 
and criteria established by Executive Order 13132 and determined that 
the proposed rule will not have sufficient Federalism implications to 
warrant the preparation of a Federalism assessment. We also determined 
that this proposed rule will not preempt any State law or State 
regulation or affect the States' abilities to discharge traditional 
State governmental functions.

Regulatory Flexibility Act

    We certify that this proposed rule will not have a significant 
economic impact on a substantial number of small entities because it 
affects individuals only. Therefore, a regulatory flexibility analysis 
is not required under the Regulatory Flexibility Act, as amended.

Paperwork Reduction Act

    This rule does not anticipate any new collections or require 
revisions to existing collections. However, the application of the 
revisions to these rules may cause a burden change to our currently 
approved information collections under the following information 
collection requests: 0960-0174, the SSA-8006, Statement of Living 
Arrangements, In-Kind Support and Maintenance; and 0960-0454, the SSA-
L5061, Letter to Landlord Requesting Rental Information. Based on our 
current management information data from the seven states currently 
implementing these changes, we anticipate these changes will allow for 
verbal responses from landlords in place of the current form in some 
situations, thus reducing the overall burden as SSA will not require 
those respondents to complete the entirety of Form SSA-L51061. In 
addition, we note that for those who use the paper form, we will send a 
revised version with question #5 removed. We also anticipate a slight 
burden reduction to Form SSA-8006, as the respondents may not need to 
provide as much detail pertaining to their rental subsidy agreement due 
to the proposed rule.
    The following chart shows the time burden information associated 
with the proposed rule:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Anticipated  Anticipated
                                                                                           Current      Current     new burden   estimated
                                                                                           average     estimated       per         total      Estimated
               OMB No.; form No.; CFR citations                 Number of    Frequency    burden per     total       response      burden       burden
                                                               respondents  of response    response      burden       under        under       savings
                                                                                          (minutes)     (hours)     regulation   regulation    (hours)
                                                                                                                    (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
0960-0174 SSA-8006 (Paper Form)..............................       12,160            1            7        1,419            6        1,216          203
0960-0174 SSA-8006 (SSI Claims System).......................      109,436            1            7       12,768            6       10,944        1,824
0960-0454 SSA-L5061 (Paper Form).............................       35,640            1           10        5,940            8        4,752        1,188
0960-0454 SSA-L5061 (Phone Call).............................       35,640            1           10        5,940            3        1,782        4,158
                                                              ------------------------------------------------------------------------------------------
    Totals...................................................      192,876  ...........  ...........       26,067  ...........       18,694        7,373
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The following chart shows the theoretical cost burdens associated 
with the proposed rule:

----------------------------------------------------------------------------------------------------------------
                                                    Anticipated                       Average
                                                     estimated        Average      combined wait
                                                   total burden     theoretical    time in field   Total annual
OMB No.; form No.; CFR citations     Number of         under        hourly cost    office and/or    opportunity
                                    respondents     regulation        amount        teleservice   cost (dollars)
                                                    from chart      (dollars) *       centers           ***
                                                   above (hours)                   (minutes) **
----------------------------------------------------------------------------------------------------------------
0960-0174 SSA-8006 (Paper Form).          12,160           1,216        * $12.81           ** 19     *** $77,885
0960-0174 SSA-8006 (SSI Claims           109,436          10,944         * 12.81           ** 24     *** 443,931
 System)........................
0960-0454 SSA-L5061 (Paper Form)          35,640           4,752         * 29.76           ** 24     *** 565,678
0960-0454 SSA-L5061 (Phone Call)          35,640           1,782         * 29.76  ..............      *** 53,032
                                 -------------------------------------------------------------------------------

[[Page 57915]]

 
    Totals......................         192,876          19,882  ..............  ..............   *** 1,140,526
----------------------------------------------------------------------------------------------------------------
* We based this figure on the average DI payments based on SSA's current FY 2023 data (https://www.ssa.gov/legislation/2023factsheet.pdf); on the average U.S. citizen's hourly salary, as reported by Bureau of Labor
  Statistics data (https://www.bls.gov/oes/current/oes_nat.htm).
** We based this figure on the average FY 2023 wait times for field offices and hearings office, as well as by
  averaging both the average FY 2023 wait times for field offices and teleservice centers, based on SSA's
  current management information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments
  to complete this application; rather, these are theoretical opportunity costs for the additional time
  respondents will spend to complete the application. There is no actual charge to respondents to complete the
  application.

    SSA submitted a single new Information Collection Request which 
encompasses the revisions to both information collections (currently 
under OMB Numbers 0960-0174, and 0960-0454) to OMB for the approval of 
the changes due to the proposed rule. After approval at the final rule 
stage, we will adjust the figures associated with the current OMB 
numbers for these forms to reflect the new burden. We are soliciting 
comments on the burden estimate; the need for the information; its 
practical utility; ways to enhance its quality, utility, and clarity; 
and ways to minimize the burden on respondents, including the use of 
automated techniques or other forms of information technology. In 
addition, we are specifically seeking comment on whether you have any 
questions or suggestions for edits to the forms referenced above in the 
context of this proposed regulatory change. Questions to consider might 
include (but are not limited to):
    (1) Are there other SSA information collections we have not noted 
that you believe we should modify as a result of this proposed policy 
change?
    (2) Do our new estimated time burdens accurately represent the time 
burden associated with these forms? The burden estimate should include 
both the time needed to answer the form's questions and activities such 
as the time spent gathering records and documentation if necessary, or 
travel time associated with developing and submitting the collection. 
If you believe our reported estimate is inaccurate (when considering 
that we anticipate a burden reduction associated with the rulemaking), 
please explain why.
    (3) Are there modifications to the forms or the information 
collection processes associated with developing information about a 
recipient's potential rental subsidy that the agency should consider in 
developing this final rule (keeping in mind that there may be policy or 
operational limitations on our ability to implement some types of new 
information collection processes)?
    If you would like to submit comments, please send them to the 
following locations:

Office of Management and Budget, Attn: Desk Officer for SSA, Fax 
Number: 202-395-6974, Email address: [email protected]
Social Security Administration, OLCA, Attn: Reports Clearance Director, 
Mail Stop 3253 Altmeyer, 6401 Security Blvd., Baltimore MD 21235, Fax: 
410-966-2830, Email address: [email protected]

    You can submit comments until October 23, 2023, which is 60 days 
after the publication of this notice. However, your comments will be 
most useful if you send them to SSA by October 23, 2023, which is 60 
days after publication. To receive a copy of the OMB clearance package, 
contact the SSA Reports Clearance Officer using any of the above 
contact methods. We prefer to receive comments by email or fax.

(Catalog of Federal Domestic Assistance Programs No 96.006 
Supplemental Security Income)

List of Subjects in 20 CFR Part 416

    Administrative practice and procedure, Reporting and recordkeeping 
requirements, Supplemental Security Income (SSI).
    The Acting Commissioner of Social Security, Kilolo Kijakazi, Ph.D., 
M.S.W., having reviewed and approved this document, is delegating the 
authority to electronically sign this document to Faye I. Lipsky, who 
is the primary Federal Register Liaison for SSA, for purposes of 
publication in the Federal Register.

Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional 
Affairs, Social Security Administration.

    For the reasons stated in the preamble, we propose to amend 20 CFR 
chapter III, part 416, as set forth below:

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
DISABLED

Subpart K--Income

0
1. The authority citation for subpart K of part 416 is revised to read 
as follows:

    Authority: 42 U.S.C. 902(a)(5), 1381a, 1382, 1382a, 1382b, 
1382c(f), 1382j, 1383, and 1383b; sec. 211, Pub. L. 93-66, 87 Stat. 
154 (42 U.S.C. 1382 note).

0
2.In Sec.  416.1130 revise paragraph (b) to read as follows:


Sec.  416.1130  Introduction

* * * * *
    (b) How we define in-kind support and maintenance. In-kind support 
and maintenance means any food or shelter that is given to you or that 
you receive because someone else pays for it. Shelter includes room, 
rent, mortgage payments, real property taxes, heating fuel, gas, 
electricity, water, sewerage, and garbage collection services. You are 
not receiving in-kind support and maintenance in the form of room or 
rent if you are paying the amount charged under a business arrangement. 
A business arrangement exists when the amount of monthly rent required 
to be paid equals or exceeds the presumed maximum value described in 
Sec.  416.1140(a)(1). If the required amount of rent is less than the 
presumed maximum value, we will impute as in-kind support and 
maintenance the difference between the required amount of rent and 
either the presumed maximum value or the current market rental value 
(see Sec.  416.1101), whichever is less. In addition, cash payments to 
uniformed service members as allowances for on-base housing or 
privatized military housing are in-kind support and maintenance.
* * * * *
[FR Doc. 2023-18213 Filed 8-23-23; 8:45 am]
BILLING CODE 4191-02-P