SCSEP wage exclusion for housing and food assistance

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL11-06_508.pdf

CLASSIFICATION
        EMPLOYMENT AND TRAINING ADMINISTRATION              SCSEP
                    ADVISORY SYSTEM                         CORRESPONDENCE SYMBOL
               U.S. DEPARTMENT OF LABOR                     OWI
                  Washington, D.C. 20210                    DATE
                                                            December 28, 2006

  TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 11-06

  TO:           ALL SENIOR COMMUNITY SERVICE EMPLOYMENT
                PROGRAM GRANTEES

  FROM:         EMILY STOVER DeROCCO /s/

  SUBJECT:      Exemption of SCSEP Wages from Income Eligibility Determinations for
                Federal Housing Programs and/or Food Stamps

1.   Purpose. To provide Senior Community Service Employment Program (SCSEP)
     grantees with information about the statutory exemption of SCSEP wages for
     purposes of determining income eligibility for Federal housing programs and Food
     Stamps.

2.   References. 42 U.S.C. 3056(g); Older Americans Act (OAA) Amendments of 2006,
     Public Law 109-365; OAA Amendments of 2000, Public Law 106-501.

3.   Background. Congress has exempted SCSEP wages from income eligibility
     determinations for Federal housing programs and food stamps through the OAA
     Amendments of 2000 and 2006 (42 U.S.C. 3056(g)). It has come to our attention that
     grantees are in need of information about the exemption. Many grantees have
     advised us that local officials are often unaware of this exemption and treat SCSEP
     wages as regular earned income when determining eligibility for these federally
     funded programs. Grantees have requested Department of Labor documentation of
     the exemption to provide to participants. It is anticipated that participants will in turn
     provide this documentation to local officials. Therefore, in order to assist in the
     efficient and effective administration of the SCSEP program, we are providing
     documentation of the exemption through this notice.

4.   Advisory. SCSEP is authorized by title V of the OAA, as amended by the OAA
     Amendments of 2000 (Public Law 106-501). Section 509 of title V, which is codified
     at 42 U.S.C. § 3056g, specifies that the wages individuals receive as SCSEP
     participants are not to be included in income eligibility determinations for federally
     subsidized housing and/or Food Stamps. The same exemption for SCSEP wages
     appears in the OAA Amendments of 2006, which take effect July 1, 2007 (Public
     Law 109-365).

     The full statutory provision is as follows:

     Sec. 509 Employment Assistance and Federal Housing and Food Stamp Programs

     Funds received by eligible individuals from projects carried out under the program
     established in this title [the Senior Community Service Employment Program] shall
     not be considered to be income of such individuals for purposes of determining the
     eligibility of such individuals, or of any other persons, to participate in any housing
     program for which Federal funds may be available or for any income determination
     under the Food Stamp Act of 1977.

     Public Law 106-501, 114 Stat. 2226, 2280 (Nov. 13, 2000) (codified at 42 U.S.C.
     3056(g)

5.   Action Required. Grantees should distribute this TEGL, as needed, to SCSEP
     participants for their use in applying for and continuing to receive Federal housing
     and Food Stamp assistance.

6.   Inquiries. Questions should be directed to the appropriate regional Federal Project
     Officer.

RESCISSIONS: Not listed
EXPIRATION DATE: Continuing