1. (a) The subrecipients shall establish the client eligibility level at 125% of the federal poverty level in effect at the time the client makes an application for services.

2. (b) The subrecipients shall establish priorities criteria to serve persons in households who are particularly vulnerable such as the elderly, persons with disabilities, families with young children, high residential energy users, and households with high energy burden. High residential energy users and households with high energy burden are considered to be as follows:

   1. (1) Households with high energy burden (greater than 11.08% of household income). When data becomes available from the State Data Center this percentage figure will be updated. Energy burden is figured by dividing home energy costs by gross income.
   2. (2) Households with high energy consumption (greater than $1,028 per year). When data becomes available from the State Data Center this figure will be updated. The households' annual home energy consumption is calculated and the ones that exceed $1,028 are counted as high energy consumption households.
3. (c) The subrecipients shall follow the Department rules and established state and federal guidelines for determining eligibility for multifamily dwelling units.
4. (d) Subrecipients shall base annualized eligibility determinations on household income from the 30 day period prior to the date of application for assistance. Each subrecipient shall document income from all sources for all household members for the entire 30 day period prior to the date of application and multiply by twelve (12) to annualize income. Income documentation must be collected from all income sources for all household members 18 years and older for the entire 30 day period.
5. (e) Subrecipients shall calculate annual income using, at a minimum, applicant's income from the previous 30 day period. In the case of migrant or seasonal workers, a longer period than 30 days may be used for annualizing income. However, the same method must be used for all similarly situated workers.
6. (f) If proof of income is unavailable, the applicant must complete and sign a Declaration of Income Statement (DIS). In order to use the DIS form, each subrecipient shall develop and implement a written policy and procedure on the use of the DIS form. In developing the policy and procedure, subrecipients shall give consideration to limiting the use of the DIS form to cases where there are serious extenuating circumstances that justify the use of the form. Such circumstances might include crisis situations such as applicants that are affected by natural disaster which prevents the applicant from obtaining income documentation, applicants that flee a home due to physical abuse, applicants who are unable to locate income documentation of a recently deceased spouse, or whose work is migratory, part-time, temporary, self-employed or seasonal in nature. The Department will review the written policy and its use during on-site monitoring visits.

7. (g) Subrecipient shall determine income eligibility.

   1. (1) The following list contains the types of income that are included as income in the definition of income for the purpose of determining the total household income:

      1. (A) Temporary Assistance for Needy Families (TANF);
      2. (B) money, wages and salaries before any deductions;
      3. (C) net receipts from non-farm or farm self-employment (receipts from a person's own business or from an owned or rented farm after deductions for business or farm expenses);
      4. (D) regular payments from social security;
      5. (E) railroad retirement;
      6. (F) unemployment compensation;
      7. (G) strike benefits from union funds;
      8. (H) worker's compensation;
      9. (I) veteran's payments;
      10. (J) training stipends;
      11. (K) alimony;
      12. (L) military family allotments;
      13. (M) private pensions;
      14. (N) government employee pensions (including military retirement pay);
      15. (O) regular insurance or annuity payments; and
      16. (P) dividends, interest, net rental income, net royalties, periodic receipts from estates or trusts; and net gambling or lottery winnings.

   2. (2) The following is a list that contains the types of income that are excluded from the definition of income:

      1. (A) Social Security Disability Insurance (SSDI) payments;
      2. (B) Supplemental Security Income (SSI) payments;
      3. (C) capital gains; any assets drawn down as withdrawals from a bank;
      4. (D) the sale of property, a house, or a car;
      5. (E) one-time payments from a welfare agency to a family or person who is in temporary financial difficulty;
      6. (F) tax refunds, gifts, loans, and lump-sum inheritances;
      7. (G) one-time insurance payments, or compensation for injury;
      8. (H) non-cash benefits, such as the employer-paid or union-paid portion of health insurance or other employee fringe benefits;
      9. (I) food or housing received in lieu of wages;
      10. (J) the value of food and fuel produced and consumed on farms;
      11. (K) the imputed value of rent from owner-occupied non-farm or farm housing;
      12. (L) federal non-cash benefit programs as Medicare, Medicaid, Food Stamps, and school lunches;
      13. (M) housing assistance and combat zone pay to the military;
      14. (N) college scholarships, Pell and other grant sources, assistantships, fellowships and work study; and
      15. (O) child support payments.
8. (h) Homeowners and renters will be treated equitably under all programs funded in whole or in part from LIHEAP funds. For those renters who pay heating and/or cooling bills as part of their rent, the subrecipient shall make special efforts to determine the portion of the rent that constitutes the fuel heating and/or cooling payment. If "sub metering" is not available, the subrecipient shall exercise care when negotiating with the landlords so the cost of utilities quoted is in line with the consumption for similar residents of the community. If the subrecipient pays the landlord, then the landlord shall furnish evidence that he/she has paid the bill and the amount of assistance must be deducted from the rent, if the utility payment is not stated separately from the rent. An agreement stating the terms of the payment negotiations must be signed by the landlord.

Source Note:The provisions of this §6.205 adopted to be effective April 1, 2007, 32 TexReg 1739.