Eligibility for tenants facing impending homelessness because of a foreclosure action
Under the current rule on Emergency Assistance, a group in rental housing that is facing impending homelessness because of a foreclosure action against their landlord is not eligible for assistance to obtain a new permanent living accommodation. To be eligible for Emergency Assistance for impending homelessness a group must be experiencing a financial crisis that makes it very difficult to make a rent payment, mortgage payment, or property tax payment and have been notified that they will be required to leave their current housing if they do not make that payment immediately.
In 2008, foreclosure filings in Wisconsin were 62% higher than in 2007 and were 249% higher than in 2006. The Joint Center for Housing Studies estimates that investor-owned one- to four-family rental properties account for nearly 20% of all foreclosures nationally. Despite the fact that low income families generally know that Emergency Assistance is not available for renters losing their housing due to a foreclosure action against the owner, at least 18 families in this situation have applied for Emergency Assistance at Milwaukee W-2 agencies in recent months.
Renters of properties in foreclosure can be even more vulnerable to homelessness than owners because tenants often have limited notice of the foreclosure and few resources to allow them to obtain replacement housing quickly. Until the recent enactment of s.
846.35 Stats., as created by
2009 Wisconsin Act 2, there was no requirement of notice to tenants in foreclosure of residential rental property. Section
846.35, Stats., provides that the plaintiff in an action for foreclosure of residential rental property must notify the tenant at filing of the action, when judgment is entered, and when the hearing to confirm the sale of the property has been scheduled. In addition, a tenant may retain possession of the rental unit for up to 2 months after the end of the month in which the sale of the property is confirmed. These new protections for tenants apply to foreclosure actions that are commenced on or after March 5, 2009. The timeline for a foreclosure action can vary widely with the redemption period ranging from 3 to 12 months. Tenants facing removal from foreclosed properties for at least the next 4 months will clearly not be covered by s.
846.35, Stats.
This emergency rule provides that a group in rental housing that is facing impending homelessness because of a foreclosure action against their landlord will be eligible for Emergency Assistance to obtain a new permanent living accommodation. To be eligible for assistance, the group must have received written or oral notice that they will be removed from their rental housing because of a foreclosure action against the owner, the removal of the group from the rental housing is scheduled to occur within 30 days, and the group needs emergency assistance to obtain a permanent living accommodation. The Wisconsin Works agency will verify eligibility.
Payment amounts for types of need other than energy crisis
Section
49.138, Stats., provides that the Department shall establish the maximum amount of aid to be granted, except for cases of energy crisis, per family member. Under the current rule, the payment amount for cases of need due to fire, flood, natural disaster, homelessness, and impending homelessness is the lowest of the following:
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The total of the maximum payment amount per group member multiplied by the number of members of the Emergency Assistance group.
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The amount requested by the group.
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The total financial need due to the emergency.
For many years, the maximum payment amount per group member has been $150.
In 2008, there were 10,458 Emergency Assistance grants issued and 93% were cases of need due to homelessness or impending homelessness. The current grant amounts for homelessness and impending homelessness are insufficient for smaller households to obtain or retain a permanent living accommodation. A 2-person group is eligible for a grant of $300 and a 3-person group is eligible for a grant of $450. The Department's analysis of housing costs for low-income families found that average rental costs are higher than $470 for the smallest households in the counties where a majority of Emergency Assistance grants are issued, and rent does not increase proportionally with each new group member. Housing costs for families with 2 – 4 members are similar, and housing costs for families of 5 or more are similar with some increases for larger families. In SFY 08, Emergency Assistance grants issued to smaller size families of 2 to 3 members were 57% of total grants.
This emergency rule changes the payment amounts that eligible families will receive by increasing the amounts for smaller size families and decreasing the amounts for larger size families. The amounts were arrived at by attempting to make the overall fiscal impact cost neutral and within the existing amount of funds allocated for the Emergency Assistance program. The maximum payment amounts will be $258 per group member when the group is 2 members, $172 per group member when the group is 3 members, $129 per group member when the group is 4 or 5 members, and $110 per group member when the group is 6 or more members. This will result in the following total payment amounts:
2 to 4 members $516
5 members $645
6 members $660
7 + members $110 for each additional member
Notice of changes to the maximum payment amounts will be published in the Administrative Register.
The rule complies with the statutory requirement that the Department establish the maximum amount of aid to be granted per family member by having different maximum payment amounts for members of groups of different sizes.
Energy crisis
Under the current rule, an Emergency Assistance group is eligible for assistance if need has resulted from an emergency due to energy crisis, including lack of or imminent loss of essential home heating, with an immediate threat to the health or safety of the group either existing or likely to exist. The payment amount is the amount requested by the group or the total financial need due to the emergency. Financial need may include heating fuel, electricity, and repair or replacement services necessary to obtain or maintain the basic heat and electricity requirements of an average household.
There is currently no maximum payment amount for Emergency Assistance based on need due to an energy crisis. For all other types of need, there is a maximum payment amount based on group size. The average Emergency Assistance grant for all types of need is approximately $512. Some grants for energy crisis have been as high as $3,300. From July 2007 to September 2008, approximately 6% of Emergency Assistance grants for energy crisis were $1,000 or above, totaling over $41,000.
This emergency rule establishes a maximum payment amount per group for cases of need due to energy crisis. The initial maximum payment amount will be $500 and changes to that amount will be announced in the Administrative Register. A group is eligible for assistance if the group meets the following criteria:
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The group needs financial assistance to obtain or maintain basic heat and electricity.
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The lack or imminent loss of heat or electricity is or is likely to be an immediate threat to the health or safety of the group.
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The energy crisis is due to reasons beyond the control of an adult member of the group or constitute good cause as determined by the W-2 agency.
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The group has exhausted resources available through the Wisconsin Home Energy Assistance Program (WHEAP) and assistance available through local utility companies as required by the Public Service Commission.
The WHEAP program had $147 million available for low income energy assistance this heating season. The total Emergency Assistance available for all types of emergency for FY 09 was initially $6 million. Another $1 million was added in
2009 Wisconsin Act 2.
Summary of factual data and analytical methodologies
The policy changes in this rule are based on recommendations of a workgroup comprised of representatives of W-2 agencies and advocacy groups.
Impending homelessness due to foreclosure
Section
49.138 (1m) provides that a family is homeless or facing impending homelessness if the family is not in a fixed, regular, and adequate residence. A family is not in a fixed, regular, and adequate residence if they have been notified that they will be removed from their rental housing due to a foreclosure action against the owner and the removal of the group is scheduled to occur within 30 days.
The statistics on the increase in foreclosures in Wisconsin are from
Home foreclosures up 81% in U.S., 62% in Wisconsin,
http://www.madison.com, January 15, 2009.
The estimate on the number of foreclosures that are one- to four-family rental properties is by Nicolas P. Retsinas, Director of the Joint Center for Housing Studies, quoted on the website of the National Coalition for the Homeless,
http://www.nationalhomeless.org/foreclosure/index.html, March 9, 2009.
Payment amounts
The Department analysis of the housing costs of low-income families is based on data from the Food Share program for December 2007.
The executive budget bill, 2009 Assembly Bill 75, includes a proposal to eliminate the requirement that the maximum payment amount set by the Department be based on family size. The Department's Bureau of Working Families is implementing the new payment amounts based on the current statutory language to not delay necessary assistance to smaller low-income families.
Energy crisis
Section
49.138 (1m), Stats., provides that the Department shall establish the maximum amount of aid to be granted, except for cases of energy crisis, per family member. The statute is silent on whether the Department may establish a maximum payment amount based on any criteria other than per family member for cases of need due to energy crisis. The rule establishes a maximum payment amount per group regardless of group size.
Comparison with federal requirements
Emergency Assistance is a Temporary Assistance to Needy Families (TANF) program option available to states under previous Aid to Families with Dependent Children (AFDC) statutes to provide short-time assistance to needy families with children. Wisconsin chose to continue the Emergency Assistance program when Wisconsin repealed the AFDC program and accepted federal TANF block grant funds.
There are no federal requirements related to this emergency rule, except that TANF funds must be used to provide assistance to families with children.
Comparison with rules in adjacent states
None of the adjacent states appear to have an Emergency Assistance program that is as similar to the AFDC-related Emergency Assistance program as that of Wisconsin. These states do have a variety of crisis assistance and prevention programs that are administered in different ways. The programs are generally not limited to families with children.
Fiscal Estimate
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal implications
None.
Agency Contact Person
Rebecca Swartz
Bureau of Working Families
(608) 266-1717
Notice of Hearing
Veterans Affairs
NOTICE IS HEREBY GIVEN That pursuant to s.
45.40 (3m), Stats., and Chapter
227 of the Wisconsin Statutes, the Wisconsin Department of Veterans Affairs will hold a public hearing to consider the amendment of Section
VA 2.01 (2) (a),
(b),
(3) (b) and
(c), relating to the assistance to needy veterans grant program.
Hearing Information
The public hearing will be held:
June 18, 2009
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Wis. Dept. of Veterans Affairs
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Thursday
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Board Room, 8th Floor
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11:00 a.m.
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30 West Mifflin Street
Madison, WI
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The public hearing site is accessible to people with disabilities. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please contact James A. Stewart at (608) 266-3733 or
jimmy.stewart@dva.state.wi.us.
Submission of Written Comments
Written comments on the proposed rules may be submitted to James A. Stewart, 30 West Mifflin Street, P.O. Box 7843, Madison, WI 53707-7843; Phone: (608) 266-3733; E-Mail:
jimmy.stewart@dva.state.wi.us
Comments should be submitted no later than July 2, 2009.
Analysis Prepared by the Wisconsin Department of Veterans Affairs
Statute interpreted
Statutory authority
Explanation of agency authority
The department is charged with administering a grant program to assist needy veterans with subsistence and health care. It provides eligible applicants with subsistence payments when a loss of income is caused by illness, injury or a natural disaster for up to 90 days following the date of the loss of income. It also provides grants for obtaining dental, hearing and vision care through private health care providers.
Related statute or rule
There is no related statute or rule.
Plain language analysis
The amendment of VA 2.01 (2) (a) will limit the period for which a subsistence aid application can be made and require the applicant to list all available assets the applicant has at the time of application for the benefit. The amendment to VA 2.01 (2) (b) will allow the use of concurrent applications in the health care aid program if written and binding quotes for the health care procedures have been submitted to the department. To facilitate the administration of concurrent applications, health care providers will be required to request payment from the department within 30 days of the last day the health care procedure may be obtained by the grantee. The amendment to VA 2.01 (3) (b) will allow applicants to apply for subsistence aid at any point in the 90 day period following the applicant's loss of income from an illness, injury or natural disaster. The amendment to VA 2.01 (3) (c) will update the restrictions identified in the program in accordance with the amendments to the statute enacted in 2007.
Comparison with federal regulations
There is no current or pending federal regulation which would provide subsistence or health care aid for the eligible veterans under this program.
Comparison with rules in adjacent states
There are no similar rules in adjacent states.
Summary of factual data and analytical methodologies
County veterans service officers, veteran service organizations and department staff reviewed historical data to determine whether existing application procedures for the Assistance for Needy Veterans Grant program adequately addressed the needs identified by veterans and health care providers. The review identified issues related to the application process for the subsistence aid grant, including the need for an application period which was concurrent with the emergent period covered by the grant and additional flexibility for making an application following the first 30 day period of the 90 day period covered by the grant. The report also identified issues related to concurrent applications for health care aid related to tracking income limitations while providing eligible veterans the ability to access multiple health care needs. These needs were summarized in a report to the Secretary of the department and presented to the Board, with recommended actions, in June, 2008.
Analysis and supporting documents used to determine effect on small business
No analysis was performed regarding an economic impact statement.
Small Business Impact
These rules do not appear to have any effect upon small businesses, nor any significant fiscal impact upon the private sector.
Fiscal Estimate
Summary
