Uses of LIHEAP Funds
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2001-13, DATED 1/10/01
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: Uses of LIHEAP Funds
RELATED Low Income Home Energy Assistance Act, Title XXVI
REFERENCES: of the Omnibus Budget Reconciliation Act of 1981,
Public Law 97-35, as amended.
PURPOSE: To offer suggestions and solicit ideas about
uses of LIHEAP funds far in excess of the usual
allotments.
BACKGROUND: Congress increased the LIHEAP appropriation for
fiscal year 2001 from $1.1 billion to $1.4
billion. Additionally, the President made two
contingency fund releases of $1.56 million dollars
on December 18, 2000 and $300 million on December
30, 2000 because of increases in heating oil and
natural gas costs. An additional $400 million in
contingency funds released September 22, 2000 also
are available for use in FY 2001.
Sharp energy price increases this year,
exacerbated by unusually cold weather, are
creating a serious hardship for low income
households. The Department of Energy (DOE) is
projecting still higher winter prices that
threaten catastrophic consequences. For example,
DOE projects that residential natural gas heating
bills this winter will be on average 50% higher
than last winter. However, we are getting
widespread reports of natural gas bills more than
twice as high as the same month(s) last winter.
Heating oil prices seem to have stabilized at
almost $1.50 per gallon, which is 20% higher than
last winter's average price, but bills are much
higher than the price increase indicates because
the winter has been colder.
CONTENT: The infusion of more funds into the LIHEAP
program than in recent years allows grantees to
use greater flexibility in offering assistance to
low income households, even though the demand for
assistance is higher. No special restrictions
were imposed on the use of the funds. The funds
may be used for any purpose authorized under
LIHEAP, including heating assistance, cooling
assistance, crisis assistance, weatherization,
administration and planning costs, Assurance 16
activities, and carryover to FY 2002.
Some of the ways grantees are responding to the
increased needs of low and moderate income households
for assistance are:
o Raising benefit amounts
o Providing additional crisis assistance
o Expanding definition of service population for crisis
assistance
o Reconnecting electrical or natural gas service
o Raising eligibility levels (increasing the maximum to as
much as 60% of state median income)
o Making supplemental payments
o Extending program duration (year-round, if needed)
o Carrying over 10% of funds awarded in FY 2001 into FY 2002
o Increasing weatherization activities (may request waiver to
use up to 25% of available LIHEAP funds)
o Establishing heating or cooling centers so that those
without heat or air conditioning may obtain relief from the
elements
o Providing energy awareness training or other "Assurance 16"
activities to reduce need for energy assistance
o Providing furnace replacement or repair
o Purchasing air conditioners or repairing air conditioners
o Performing additional outreach activities
o Investing in the leveraging incentive program
o Asking subgrantees to stay open weekends and evenings to
take additional applications
o States agreeing to increased tribal allocations
Grantees may be unaware that they have a lot
of flexibility in providing services in crisis
situations. Generally, any activity that is
necessary to resolve a crisis is allowable, such
as providing temporary shelter until heat can be
restored by the repair or replacement of a
furnace. Repair or replacement of a furnace
during a crisis situation does not need to be
counted against the 15% weatherization cap.
Grantees also may be unaware of the Federal maximum
allowable income eligibility level for their state.
Section 2605(b)(2)(B) of the LIHEAP statute sets
the income eligibility maximum as follows:
(B) households with incomes which do not exceed the
greater of --
(i) an amount equal to 150 percent of the poverty
level for such State; or
(ii) an amount equal to 60 percent of the State median income....
Sixty percent of the state median income is at least
a little higher than 150% of the poverty level in
every state and over 200% of the poverty level in
about one-third of the states. Attached is a chart
showing the comparison of 60% of the FY 2001 state
median income estimates with 150% of the 2000 HHS
poverty guideline. You may also refer to LIHEAP-IM-2000-10
and LIHEAP-IM-2000-11, both dated March 15, 2000,
for additional details concerning establishing
eligibility levels.
We welcome your input concerning additional uses
of LIHEAP funds. After you have implemented any
additional activities to those indicated in your
FY 2001 LIHEAP plan, please submit a plan
amendment informing us of changes in your programs.
You do not need approval from us. The amendment
can be in the form of a letter explaining program changes.
ATTACHMENTS: 1. Comparison of 60% of FY 2001 State Median Income
Estimates with 150% of the 2000 HHS Poverty Guidelines
2. List of current State income limits
INQUIRIES TO: Janet M. Fox, Director
Division of Energy Assistance
Office of Community Services, ACF, HHS
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447
Telephone: (202) 401-9351
Fax: (202) 401-5661
_______________/s____________
Janet M. Fox
Director
Division of Energy Assistance
Office of Community Services
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