# Food Stamp Program: Income Exemption for Homeless Households in Transitional Housing Required by the Mickey Leland Childhood Hunger Relief Act > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-21187 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** August 29, 1994 ## Text DEPARTMENT OF AGRICULTURE 7 CFR Parts 272 and 273 [Amendment No. 346] RIN 0584-AA96 Food Stamp Program: Income Exemption for Homeless Households in Transitional Housing Required by the Mickey Leland Childhood Hunger Relief Act AGENCY: Food and Nutrition Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule finalizes a proposed rulemaking published on April 11, 1994. It amends food stamp regulations to implement Section 13914 of the Mickey Leland Childhood Hunger Relief Act, which requires that the full value of any public or general assistance housing payments made to a third party on behalf of a household residing in transitional housing for the homeless be excluded from the household's income for food stamp purposes. EFFECTIVE DATE: This rule is effective September 1, 1994. FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Eligibility and Certification Rulemaking Section, Certification Policy Branch, Program Development Division, Food and Nutrition Service, USDA, 3101 Park Center Drive, Alexandria, Virginia, 22302, (703) 305-2496. SUPPLEMENTARY INFORMATION: Executive Order 12866 This rule has been determined to be not significant for the purposes of Executive Order 12866, and therefore, has not been reviewed by the Office of Management and Budget. Executive Order 12372 The Food Stamp Program is listed in the Catalog of Federal Domestic Assistance under No. 10.551. For the reasons set forth in the final rule and related notice(s) to 7 CFR 3015, subpart V (48 FR 29115, June 24, 1983), this Program is excluded from the scope of Executive Order 12372 which requires intergovernmental consultation with State and local officials. Regulatory Flexibility Act This final rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.). Ellen Haas, the Assistant Secretary for Food and Consumer Services, has certified that this final rule does not have a significant economic impact on a substantial number of small entities. State and local welfare agencies will be the most affected to the extent that they administer the Program. Paperwork Reduction Act This final rule does not contain reporting or recordkeeping requirements subject to approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1980 (44 U.S.C. 3507). Executive Order 12778 This final rule has been reviewed under Executive Order 12778, Civil Justice Reform. This rule is intended to have preemptive effect with respect to any State or local laws, regulations or policies which conflict with its provisions or which would otherwise impede its full implementation. This rule is not intended to have retroactive effect unless so specified in the ``effective date'' paragraph of this preamble. Prior to any judicial challenge to the provisions of this rule or the application of its provisions, all applicable administrative procedures must be exhausted. In the Food Stamp Program the administrative procedures are as follows: (1) for program benefit recipients--State administrative procedures issued pursuant to 7 U.S.C. 2020(e)(10) and 7 CFR 273.15; (2) for State agencies--administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 276.7 (for rules related to non-quality control (QC) liabilities); (3) for program retailers and wholesalers--administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 278.8. Background On April 11, 1994, the Department published a proposed rule at 59 FR 17050, to implement Section 13914 of Chapter 3, Title XIII of the Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66 (the Mickey Leland Childhood Hunger Relief Act) (the 1993 Leland Act). Section 13914 revised section 5(k)(2)(F) of the Food Stamp Act of 1977, as amended, 7 U.S.C. 2014(k)(2)(F), to require that the full amount of any public assistance/general assistance (PA/GA) housing assistance payments made to a third party on behalf of a household residing in transitional housing for the homeless be excluded from a household's income for food stamp purposes. Comments were solicited on the provisions of the proposed rulemaking through June 10, 1994. This final action addresses the commenters' concerns. Comments which were unclear or not pertinent to this rulemaking are not addressed in this preamble. Readers are referred to the proposed rule for a more complete understanding of this final action. The Department received 2 comment letters on the proposed rule, both supportive of the proposed provision. The first commenter wrote that although the immediate crisis of homelessness is lifted when a household enters a transitional housing program, the household may continue to face the threat of homelessness for some time to come. The commenter felt that it only made sense, therefore, to disregard transitional housing payments as income for food stamp purposes because the increased food stamps which would result could very well make the difference as to whether or not a household is able to remain in its residence. The second commenter supported the Department's decision to use the Department of Housing and Urban Development's (HUD) current definition of transitional housing, established in Section 1403(a) of the Stewart B. McKinney Homeless Housing Assistance Amendments Act of 1992, Title XIV of the Housing and Community Development Act of 1992, Pub. L. 102- 550 (the 1992 McKinney Act), 42 U.S.C. 11384(b), as the criteria for evaluating whether housing programs are transitional. In the preamble of the proposed rule (59 FR at 17051), the Department chose not to promulgate regulations which would further define the term ``transitional housing.'' The Department felt that the intent of the 1993 Leland Act would best be served by allowing State agencies to make case-by-case determinations as to whether housing for homeless households was transitional or permanent using the 1992 McKinney Act's definition as an evaluation criterion. Housing is transitional if its purpose ``is to facilitate the movement of homeless individuals and families to permanent housing within 24 months or such longer period as the Secretary [of Housing and Urban Development] determines necessary.'' 42 U.S.C. 11384(b). This definition of transitional housing does not exclude specific types of housing and does not require the presence of cooking facilities for a dwelling to be considered transitional housing. The commenter felt that the breadth and inclusiveness of the McKinney Act's definition of transitional housing is the strength of the proposed rule. The commenter wrote that the definition ``helps each locale to devise a continuum of care that meets its particular needs by permitting it to use the form of transitional housing that is best suited to the local system.'' However, the commenter hoped that the Department's intention to afford State agencies latitude in determining whether housing is transitional will not mean that local transitional housing programs will have to conform to arbitrary State definitions of transitional housing in order for clients to get all of the food stamps to which they should be entitled. It is the Department's intention that all types of housing meant to be transitional should be considered as such for the purposes of the exclusion granted by Section 13914 of the 1993 Leland Act. Thus, the Department encourages State agencies when administering the exclusion to adopt a flexible definition of transitional housing so that clients participating in local housing programs meant to be transitional will not be denied the exclusion. No other comments were received on the provision of the proposed rule. Therefore, the Department is adopting the proposed rule as final without change. Implementation Section 13971 of the 1993 Leland Act requires that the provisions of this rulemaking be effective and implemented September 1, 1994. The provision must be implemented for all households that newly apply for Program benefits on or after the required implementation date. The current caseload shall be converted to these provisions at the household's request, at the time of recertification, or when the case is next reviewed, whichever occurs first. The State agency must provide restored benefits to such households back to the required implementation date or the date of application whichever is later. If for any reason a State agency fails to implement on the required implementation date, restored benefits shall be provided, if appropriate, back to the required implementation date or the date of application whichever is later. Any variances resulting from implementation of the provisions of this amendment shall be excluded from Quality Control error analysis for 120 days from this required implementation date in accordance with 7 CFR 275.12(d)(2)(vii). List of Subjects 7 CFR Part 272 Alaska, Civil Rights, Food Stamps, Grant programs-social programs, Reporting and recordkeeping requirements. 7 CFR Part 273 Administrative practice and procedure, Aliens, Claims, Food stamps, Fraud, Grant programs-social programs, Penalties, Records, Reporting and recordkeeping requirements, Social security, Students. Accordingly, 7 CFR Parts 272 and 273 are amended as follows: 1. The authority citation for 7 CFR Parts 272 and 273 continues to read as follows: Authority: 7 U.S.C. 2011-2032. PART 272--REQUIREMENTS FOR PARTICIPATING STATE AGENCIES 2. In Sec. 272.1, paragraph (g)(136) is added to read as follows: Sec. 272.1 General terms and conditions. * * * * * (g) Implementation * * * (136) Amendment No. 346. The provision of Amendment No. 346 regarding an income exclusion for homeless households living in transitional housing is effective and must be implemented no later than September 1, 1994. Any variances resulting from implementation of the provisions of this amendment shall be excluded from error analysis for 120 days from this required implementation date in accordance with 7 CFR 275.12(d)(2)(vii). The provision must be implemented for all households that newly apply for Program benefits on or after the required implementation date. The current caseload shall be converted to these provisions at the household's request, at the time of recertification, or when the case is next reviewed, whichever occurs first. The State agency must provide restored benefits to such households back to the required implementation date or the date of application whichever is later. If for any reason a State agency fails to implement on the required implementation date, restored benefits shall be provided, if appropriate, back to the required implementation date or the date of application, whichever is later. PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS 3. In Sec. 273.9, paragraph (c)(1)(ii)(D) is revised to read as follows: Sec. 273.9 Income and deductions. * * * * * (c) Income exclusions. * * * (1) * * * (ii) * * * (D) Housing assistance payments made to a third party on behalf of a household residing in transitional housing for the homeless; * * * * * Dated: August 2, 1994. Ellen Haas, Assistant Secretary for Food and Consumer Services. [FR Doc. 94-21187 Filed 8-26-94; 8:45 am] BILLING CODE 3410-30-U --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-21187. Public record. Not legal advice.