Debra Estey v. Commissioner, Maine Department of Human Services

21 F.3d 1198, 1994 U.S. App. LEXIS 8377, 1994 WL 127268
CourtCourt of Appeals for the First Circuit
DecidedApril 20, 1994
Docket93-1453
StatusPublished
Cited by39 cases

This text of 21 F.3d 1198 (Debra Estey v. Commissioner, Maine Department of Human Services) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Debra Estey v. Commissioner, Maine Department of Human Services, 21 F.3d 1198, 1994 U.S. App. LEXIS 8377, 1994 WL 127268 (1st Cir. 1994).

Opinions

BOWNES, Senior Circuit Judge.

Plaintiffs appeal from a judgment on stipulated facts upholding a policy of the United States Department of Agriculture (USDA) that reduces their food stamp benefits. The district court upheld the USDA policy of counting as income for food stamp purposes the utility reimbursements plaintiffs receive from the Department of Housing and Urban Development (HUD) and from the Farmers Home Administration (FmHA). Estey v. Commissioner, Maine Dep’t of Human Servs., 814 F.Supp. 152 (D.Me.1993). Because we conclude that the energy-related components of HUD and FmHA utility reimbursements are excluded by statute from income under the Food Stamp Act, we reverse.

I.

BACKGROUND

The defendant-appellees are the Secretary of USDA (Secretary) and the Commissioner of the Maine Department of Human Services, the state agency charged with applying USDA’s uniform guidelines in administering the food stamp program in Maine. Plaintiffs are a class of tenants receiving food stamps, paying for household utilities, and living in HUD public housing, in privately-owned “Section 8” HUD-assisted apartments, and in privately-owned FmHA-assisted housing.1

Plaintiffs, as tenants in HUD and FmHA housing, receive monthly payments, called “utility reimbursements,” because all of their utilities are not included in their rent, and because their monthly income is very low relative to average utility costs in their communities. The issue on appeal is whether USDA may count utility reimbursements as income under the Food Stamp Act, 7 U.S.C. §§ 2011-2082, although section 2014(d)(11)(A) of the Act expressly excludes “energy assistance” payments from food stamp income.

A. Food Stamp Act

The Food Stamp Act establishes a federally-funded, state-administered program to alleviate malnutrition and hunger in low income households by providing needy persons with coupons to purchase food from retail stores. See id. § 2011; Massachusetts v. Lyng, 893 F.2d 424, 425 (1st Cir.1990); West v. Bowen, 879 F.2d 1122, 1124 (3d Cir.1989). USDA establishes uniform standards for food stamp eligibility. See 7 U.S.C. § 2014(b). Eligibility depends on income. “Income” is defined as money payable to a household, from whatever source, subject to the exclusions and deductions in the Act. See id. § 2014(d)-(e). The exclusion at issue exempts from food stamp income “any pay[1200]*1200ments or allowances made for the purpose of providing energy assistance under any Federal law.” Id. § 2014(d)(11)(A). Plaintiffs, as recipients of FmHA and HUD utility reimbursements, are allotted fewer food stamps because USDA interprets the Act to include utility reimbursements as income.

B. HUD and FmHA Utility Reimbursements

To frame an analysis of whether utility reimbursements are “energy assistance” under the Food Stamp Act, we outline the regulations on utility reimbursements under the FmHA rental assistance program and the HUD section 8 and public housing programs. In relevant respects, these regulations are identical. Tenants in HUD and FmHA housing pay no more than 30% of household income for rent plus an allowance for any utilities not supplied by the landlord. See 42 U.S.C. § 1437a(a)(1); 7 C.F.R. pt. 1930, subpt. C, exhs. B.IV.A.2.C, E.II.E. Water, sewerage, trash collection, electricity, cooking fuel, heat, and hot water are utilities for which allowances may be established. See 24 C.F.R. §§ 813.102, 965.472, 965.476; 7 C.F.R. pt. 1944, subpt. E, exhs. A-5, A-6. The FmHA utility allowance reflects the utility costs incurred by the majority of households in similar units in a housing complex. See 7 C.F.R. pt. 1944, subpt. E, exh. A-6.I, - 6.II. HUD utility allowances represent a “reasonable consumption” of utilities “by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary and healthful living environment.” 24 C.F.R. §§ 813.102, 965.476(a).

To prevent tenants who pay for their own utilities from generally incurring excessive utility costs, HUD and FmHA regulations permit rent (capped at 30% of income) to be offset by an allowance for utilities. See 24 C.F.R. §§ 813.102, 913.102; 7 C.F.R. pt. 1930, subpt. C, exh. E.IX.A.1. This set off results in a payment called a “utility reimbursement” whenever monthly income is very low and utility costs are relatively high. A utility reimbursement is equal to the sum of all allowances for any utilities not supplied by the landlord minus 30% of monthly income. See 24 C.F.R. §§ 813.102, 913.102; 7 C.F.R. pt. 1930, subpt. C, exh. E.IX.A.2.

For example, if a tenant’s monthly income is $100, $30 (30%) is the total amount the tenant must pay for housing costs, including any utility allowance. If the utility allowance is $5, the tenant will not receive a utility reimbursement, but will owe the landlord only $25 because the allowance is credited against the total amount due. A tenant with the same monthly income, but with a utility allowance of $50, will pay the landlord no rent and will receive a utility reimbursement of $20 (the utility allowance minus 30% of $100). Every tenant entitled to a utility reimbursement receives a bill from at least one utility company. The reimbursement ensures that FmHA and HUD tenants, living in very poor households, will not generally pay more than 30% of household income for energy, water, sewerage, and trash collection costs.

II.

DISCUSSION

Plaintiffs argue that utility reimbursements are “energy assistance,” and that section 2014(d)(ll)(A) of the Food Stamp Act exempts such assistance from income calculations. USDA contends that this provision, excluding from food stamp income “any payments for the purpose of providing energy assistance,” is inapplicable because “energy assistance” is limited to payments made to offset rapidly rising energy costs, whereas utility reimbursements cover routine utility costs.2

[1201]*1201A. Standard of Review

A court reviewing an agency’s interpretation of a statute it administers must first determine whether Congress has spoken to the “precise question at issue.” Chevron U.S.A. v. Natural Res. Defense Council, 467 U.S. 837, 842, 104 S.Ct. 2778, 2782, 81 L.Ed.2d 694 (1984). The precise question in this case is whether “energy assistance” under section 2014(d)(11)(A) encompasses only payments offsetting rapidly rising energy costs. Cf. id. at 840, 845, 104 S.Ct.

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21 F.3d 1198, 1994 U.S. App. LEXIS 8377, 1994 WL 127268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/debra-estey-v-commissioner-maine-department-of-human-services-ca1-1994.