Supplemental Security Income for the Aged, Blind, and Disabled; Extension of Time Period for Not Counting as Resources, Funds Received for Repair or Replacement of Damaged or Destroyed Excluded Resources in the Supplemental Security Income Program

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

[Regulations No. 16]

RIN 0960-AD87

Supplemental Security Income for the Aged, Blind, and Disabled;

Extension of Time Period for Not Counting as Resources, Funds Received

for Repair or Replacement of Damaged or Destroyed Excluded Resources in

the Supplemental Security Income Program

AGENCY: Social Security Administration.

ACTION: Proposed rule.

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SUMMARY: In the past several years, portions of the United States have

experienced natural disasters that have had unprecedented effects on

supplemental security income (SSI) recipients. To provide us with the

flexibility to deal with these and future occurrences, we propose to

modify our current regulations regarding the period of time that cash

and in-kind items received for the repair or replacement of certain

destroyed or damaged excluded resources would not count toward the

resource limit.

DATES: To be sure that your comments are considered, we must receive

them no later than July 17, 1995.

ADDRESSES: Comments should be submitted in writing to the Commissioner

of Social Security, P.O. Box 1585, Baltimore, MD 21235, sent by telefax

to (410) 966-2830, sent by E-mail to ``[email protected]'' or

delivered to 3-B-1 Operations Building, 6401 Security Boulevard,

Baltimore, MD 21235, between 8:00 a.m. and 4:30 p.m. on regular

business days.

The electronic file of this document is available on the Federal

Bulletin Board (FBB) at 9 a.m. on the date of publication in the

Federal Register. To download the file, modem dial (202) 512-1387. The

FBB instructions will explain how to download the file and the fee.

This file is in WordPerfect and will remain on the FBB during the

comment period.

FOR FURTHER INFORMATION CONTACT: Henry D. Lerner, Legal Assistant,

Division of Regulations and Rulings, Social Security Administration,

6401 Security Boulevard, Baltimore, MD 21235, (410) 965-1762.

SUPPLEMENTARY INFORMATION: The regulations at Sec. 416.1205(c) provide

that SSI recipients can have no more than $2,000 in countable resources

and SSI couples can have no more than $3,000. The regulations at

Sec. 416.1237 provide that assistance received under the Disaster

Relief and Emergency Assistance Act or other assistance provided under

a Federal statute because of a catastrophe which is declared to be a

major disaster by the President of the United States or comparable

assistance received from a State or local government, or from a

disaster assistance organization, is excluded permanently under the SSI

program in determining countable resources.

The regulations at Sec. 416.1232 complement the disaster assistance

exclusion by providing that cash or in-kind items for the repair or

replacement of lost, stolen, or damaged excluded resources are not

treated as resources for 9 months. The regulations also provide for one

extension for a reasonable period up to an additional 9 months for good

cause if circumstances do not permit repair or replacement within the

initial 9-month period and the individual intends to use the funds for

repair or replacement.

Excluded resources generally include the individual's home,

household goods and personal effects, and the automobile, as are

described in Secs. 416.1212, 416.1216 and 416.1218 respectively.

Private insurance payments do not qualify as disaster assistance

and, therefore, cannot be permanently excluded from resources. For some

SSI recipients affected by natural disasters, the maximum period of 18

months during which monies received to repair or replace excluded

resources are not treated as resources will not be sufficient and some

of these individuals will consequently lose SSI and Medicaid

eligibility.

In the past several years, portions of the United States have

experienced natural disasters that have had unprecedented effects on

SSI recipients. In August 1992, Hurricane Andrew devastated south

Florida causing damage estimated in excess of $18 billion. Because of

the extent of the devastation, SSI recipients in the area were unable

to use insurance payments to repair or replace their damaged property

within the maximum 18-month period provided by regulations during which

those payments would not be treated as resources. With the expiration

of this period, the payments would have counted as resources for SSI

purposes. On March 17, 1994 (59 FR 12544), we published interim final

regulations with a request for comments which provided victims of

Hurricane Andrew with an additional 12-month time period in which to

repair or replace their property.

History has shown that current regulations generally provide a

sufficient time period for individuals to repair or replace their

excluded resources destroyed or damaged by natural disasters. However,

in the event disasters of the magnitude of Hurricane Andrew occur, we

wish to have the flexibility in regulations to extend the period that

payments or in-kind assistance for the repair or replacement of

affected excluded resources will not count as resources.

We are proposing regulations which provide us with the flexibility

to provide individuals with additional time to repair or replace

destroyed or damaged excluded resources when such disasters occur and

certain other criteria are met. These proposed regulations will extend

the maximum 18-month period during which cash or in-kind replacement

received from any source for purposes of repairing or replacing an

excluded resource is not counted as a resource for up to an additional

12 months. This additional time period only applies in the case of

presidentially declared major disasters as long as the individual

intends to repair or replace the property and good cause still exists.

Regulatory Procedures

Executive Order 12866

We have consulted with the Office of Management and Budget (OMB)

and determined that this rule does not meet the criteria for a

significant regulatory action under Executive Order 12866. Thus, it was

not subject to OMB review.

Paperwork Reduction Act of 1980

These proposed regulations impose no new reporting or recordkeeping

requirements requiring OMB clearance.

Regulatory Flexibility Act

We certify that these proposed regulations will not have a

significant economic impact on a substantial number of small entities

because they [[Page 26388]] affect eligibility for or the amount of SSI

payments of individuals. Therefore, a regulatory flexibility analysis

as provided in Public Law 96-354, the Regulatory Flexibility Act, is

not required.

(Catalog of Federal Domestic Assistance Program No. 93.807,

Supplemental Security Income)

List of Subjects in 20 CFR Part 416:

Administrative practice and procedure, Aged, Blind, Disability

benefits, Public assistance programs, Reporting and recordkeeping

requirements, Supplemental Security Income.

Dated: May 3, 1995.

Shirley S. Chater,

Commissioner of Social Security.

Part 416 of Chapter III of Title 20 of the Code of Federal

Regulations is amended as follows:

1. The authority citation for subpart L of part 416 continues to

read as follows:

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

DISABLED

Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621,

and 1631 of the of the Social Security Act; 42 U.S.C. 1302, 1381a,

1382, 1382a, 1382b, 1382c(f), 1382j, and 1383; sec. 211 of Pub. L.

93-66, 87 Stat. 154.

2. Section 416.1232 is amended by revising paragraph (b), by

redesignating paragraph (c) as paragraph (d) and by adding a new

paragraph (c), to read as follows:

Sec. 416.1232 Replacement of lost, damaged, or stolen excluded

resources.

* * * * *

(b) The initial 9-month time period will be extended for a

reasonable period up to an additional 9 months where we find the

individual had good cause for not replacing or repairing the resource.

An individual will be found to have good cause when circumstances

beyond his or her control prevented the repair or replacement or the

contracting for the repair or replacement of the resource. The 9-month

extension can only be granted if the individual intends to use the cash

or in-kind replacement items to repair or replace the lost, stolen, or

damaged excluded resource in addition to having good cause for not

having done so. If good cause is found for an individual, any unused

cash (and interest) is counted as a resource beginning with the month

after the good cause extension period expires. Exception: For victims

of Hurricane Andrew only, the extension period for good cause may be

extended for up to an additional 12 months beyond the 9-month extension

when we find that the individual had good cause for not replacing or

repairing an excluded resource within the 9-month extension.

(c) The time period described in paragraph (b) of this section

(except the time period for individuals granted an additional extension

under the Hurricane Andrew provision) may be extended for a reasonable

period up to an additional 12 months in the case of a catastrophe which

is declared to be a major disaster by the President of the United

States if the excluded resource is geographically located within the

disaster area as defined by the presidential order; the individual

intends to repair or replace the excluded resource; and, the individual

demonstrates good cause why he or she has not been able to repair or

replace the excluded resource within the 18-month period.

* * * * *

[FR Doc. 95-12099 Filed 5-16-95; 8:45 am]

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