Office of the Secretary; Combined Income and Rent; Extension of Effective Period of Interim Regulatory Provisions

SUMMARY: On April 5, 1995 (60 FR 17388), HUD published an interim rule

amending its regulations governing public housing, Indian housing, and

assisted housing programs by adding nine exclusions to the definition

of annual income. The April 5, 1995 interim rule contains a ``sunset

provision'' which provides that the interim rule will expire on May 6,

1996, unless prior to that date HUD publishes a Federal Register notice

extending the rule's effective period. This notice extends the

effective period of the April 5, 1995 interim rule to such time that a

final rule is issued and becomes effective.

EFFECTIVE DATE: The effective date of the following provisions remains

in effect until the date the final rule becomes effective: Sec. 215.21

(c)(2), (c)(6), (c)(8) (iv) through (v), and (c)(11) through (c)(15);

Sec. 236.3 (c)(2), (c)(6), (c)(8) (iv) through (v), and (c)(11) through

(c)(15); Sec. 813.106 (c)(2), (c)(6), (c)(8) (iv) through (v), (c)(11),

(c)(12), (c)(14), and (c)(15); Sec. 913.106 (c)(2), (c)(6), (c)(8) (iv)

through (v), (c)(11), (c)(12), (c)(15), and (c)(16); and Sec. 950.102

(2)(ii), (2)(vi), (2)(viii) (D) through (E), (2)(xi), (2)(xii),

(2)(xv), and (2)(xvi) of the definition of Annual income.

FOR FURTHER INFORMATION CONTACT:

For Public Housing: Bruce Vincent, Room 4206, telephone number (202)

708-0744; for Native American Programs: Dominic A. Nessi, Room P8204,

telephone number (202) 755-0032; for Housing: Barbara D. Hunter, Room

6182, telephone number (202) 708-3944; Department of Housing and Urban

Development, 451 Seventh Street, SW., Washington, DC 20410. Hearing or

speech-impaired individuals may access these numbers by calling the

Federal Information Relay Service at 1-800-877-8339. (Except for the

``800'' number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION: On April 5, 1995 (60 FR 17388), HUD

published for public comment an interim rule amending HUD's regulations

governing public housing, Indian housing, Section 8 housing, and other

assisted housing programs by adding nine exclusions to the definition

of annual income. Specifically, the interim rule excludes from annual

income the following: (1) Residential service stipends; (2) adoption

assistance payments; (3) student financial assistance; (4) earned

income of full-time students; (5) adult foster care payments; (6)

compensation from State or local job training programs and training of

resident management staff; (7) property tax rebates; (8) homecare

payments for developmentally disabled children or adult family members;

and (9) deferred periodic payments of supplemental security income and

social security benefits that are received in a lump sum.

With regard to the first eight exclusions to the definition of

income, the Secretary is merely exercising the discretion conferred

upon him to define family income by section 3(b)(4) of the U.S. Housing

Act of 1937 (42 U.S.C. 1437a(b)(4)), section 101(c)(2) of the Housing

and Urban Development Act of 1965 (12 U.S.C. 1701s(c)(2)), and section

236(m) of the National Housing Act (12 U.S.C. 1715z-1(m)). HUD believes

these exclusions are essential for achieving its goals of ensuring

economic opportunity, empowering the poor and expanding affordable

housing opportunities.

The ninth exclusion to the definition of annual income is

statutorily mandated. Section 103(a)(1) of the Housing and Community

Development Act of 1992 (Pub. L. 102-550, approved October 28, 1993)

amended section 3(b)(4) of the U.S. Housing Act of 1937 to exclude from

annual income, ``any amounts which would be eligible for exclusion

under section 1613(a)(7) of the Social Security Act (42 U.S.C.

1382b(a)(7).'' Section 1613(a)(7) of the Social Security Act covers

deferred periodic payments received in a lump sum from supplemental

security income (SSI) and social security benefits.

Among other parts, the April 5, 1995 interim rule amended part 905.

On April 10, 1995 (60 FR 18174), the Department published a final rule

amending the Indian Housing consolidated regulations and moving these

regulations from part 905 to a new part 950. On July 18, 1995 (60 FR

36666), the Department published a final rule amending part 950 to

incorporate the revisions made by the April 5, 1995 Combined Income and

Rent interim rule.

It is HUD's policy to establish a ``sunset date'' for its interim

rules. Accordingly, the April 5, 1995 interim rule and the July 18,

1995 final rule contain ``sunset provisions'' which provide that the

interim and final rules will expire on May 6, 1996, unless prior to

that date HUD publishes a rule finalizing the amendments made by the

April 5, 1995 and July 18, 1995 rules or a notice extending their

effective period.

The final rule adopting the amendments made by the April 5, 1995

and July 18, 1995 rules is in its final stages of development. However,

in order to prevent a period in which HUD will be without effective

regulations, HUD is extending the effective period of these amendments

until the final rule is published and becomes effective.

For the reasons described above, the following provisions of title

24 of the Code of Federal Regulations will remain in effect until the

date the final rule adopting these regulatory provisions, with or

without changes, is published and becomes effective:

Sec. 215.21 [Amended]

1. Paragraphs (c)(2), (c)(6), (c)(8) (iv) through (v), and (c)(11)

through (c)(15) of Sec. 215.21;

Sec. 236.3 [Amended]

2. Paragraphs (c)(2), (c)(6), (c)(8) (iv) through (v), and (c)(11)

through (c)(15) of Sec. 236.3;

Sec. 813.106 [Amended]

3. Paragraphs (c)(2), (c)(6), (c)(8) (iv) through (v), (c)(11),

(c)(12), (c)(14), and (c)(15) of Sec. 813.106;

Sec. 913.106 [Amended]

4. Paragraphs (c)(2), (c)(6), (c)(8) (iv) through (v), (c)(11),

(c)(12), (c)(15), and (c)(16) of Sec. 913.106; and

Sec. 950.102 [Amended]

5. Paragraphs (2)(ii), (2)(vi), (2)(viii) (D) through (E), (2)(xi),

(2)(xii), (2)(xv), and (2)(xvi) of the definition of Annual income in

Sec. 950.102.

Dated: March 25, 1996.

Henry G. Cisneros,

Secretary.

[FR Doc. 96-9068 Filed 4-10-96; 8:45 am]

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