O'Bryant v. Idaho Department of Health & Welfare

841 F. Supp. 991, 1993 U.S. Dist. LEXIS 18858
CourtDistrict Court, D. Idaho
DecidedDecember 23, 1993
DocketCiv. Nos. 93-0020-S-HLR, 93-0057-S-HLR
StatusPublished

This text of 841 F. Supp. 991 (O'Bryant v. Idaho Department of Health & Welfare) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Bryant v. Idaho Department of Health & Welfare, 841 F. Supp. 991, 1993 U.S. Dist. LEXIS 18858 (D. Idaho 1993).

Opinion

ORDER AFFIRMING DECISIONS AND DISMISSING ACTIONS

RYAN, Senior District Judge.

I. FACTS AND PROCEDURE

This consolidated1 action arises from two appeals from administrative decisions issued by Idaho’s Department of Health and Welfare (IDHW) which essentially conclude that utility reimbursements (URs) received under the United States Housing Act, 42 U.S.C. § 1401, et seq., should be counted as income for purposes of calculating food stamp benefits under the Food Stamp Act, 7 U.S.C. § 2011.2

Appellants Cindy O’Bryant and Jennifer Jay originally filed their appeals in district courts for the State of Idaho. However, pursuant to 28 U.S.C. §§ 1331 and 1441, both appeals were properly removed to this court due to the existence of a federal question.

Because appellants are each represented by Idaho Legal Aid Services, Inc., briefing on appeal was jointly submitted on their behalf. See Ord. Estab. Briefing Schedule & Setting Hearing, filed Aug. 23, 1993. And, since Respondent IDHW and Intervenor Respondent Secretary of the United States Department of Agriculture (USDA) (hereinafter “the Secretary”) both take similar positions on appeal, these parties jointly filed one response brief. Id.

On December 8, 1993, the court conducted a hearing on this appeal. Now, having fully considered the briefing and the oral arguments of counsel, based on the analysis to follow, the court finds that the administrative decisions issued by IDHW should be affirmed.

II. ISSUES ON APPEAL

In their opening brief, appellants focus on the following issues: (1) whether the principles of res judicata and collateral estoppel precluded IDHW’s hearing officer from finding that URs should be counted as income for purposes of the Food Stamp Act based on a decision issued by the Sixth District Court of the State of Idaho which reached an opposite conclusion; (2) whether URs should be excluded from income for purposes of determining food stamp eligibility under 7 U.S.C. § 2014(d)(1), -(d)(5), and/or -(d)(ll)(A); and (3) whether the Secretary’s policy of counting URs as income violates the Administrative Procedure Act and/or the Food Stamp Act and/or denies appellants due process and equal protection under the law.3

On the other hand, respondents’ brief contends that the “sole issue [on appeal] ... is whether the Secretary of the [USDA] has made a permissible interpretation of a statute he is charged with administering, the Food Stamp Act, 7 U.S.C. §§ 2201 et seq.” [994]*994Defs.’ Resp. to Pis.’ Br.4 [hereinafter Response], filed Nov. 8, 1993, at 1 (emphasis added).

III. ANALYSIS

As noted by respondents, the threshold issue on appeal is whether or not the Secretary has made a “permissible interpretation” of the Food Stamp Act. Before arriving at a decision on this fundamental issue, however, the court finds it necessary and appropriate to address the ancillary issues raised by appellants. In doing so, the court will briefly address the relevant federal programs, and will then turn to the specific arguments made by the parties.

A. Basic Background on the Federal Programs at Issue

Appellants acknowledge that this appeal “turns on the interaction of the food stamp program, a cooperative federal-state program administered by the USDA, and the federal housing programs administered by HUD.” Appellants’ Br., filed Oct. 15, 1998, at 2. Accordingly, each of these federal programs shall briefly be discussed.

1. The Food Stamp Program

Congress established the Food Stamp Act in 1964 with the goal of alleviating hunger and malnutrition among low-income families by increasing the food purchasing power of eligible households. See 7 U.S.C. § 2011.

At the federal level, the Food Stamp Program is administered by the Food and Nutrition Service (FNS) of the USDA which promulgates regulations and sets federal policy to govern the food stamp program. State agencies are responsible for certifying the eligibility of households that apply for food stamp assistance and for determining the appropriate amount of assistance for eligible households according to the Food Stamp Act and FNS policy. See 1 U.S.C. § 2020(a), - (e)(5). In fulfilling this role, state agencies must determine household resources and incomes. The Food Stamp Act defines “income” as “all income from whatever source.” 7 U.S.C. § 2014(d).

The Food Stamp Act states 16 exclusions and a number of deductions to be considered when computing household income. 7 U.S.C. § 2014(d) and (e). The lower the household income, the greater the benefits awarded under the program. This appeal focuses on the Secretary’s interpretation of various exclusions.

2. The United States Housing Act

Under the United States Housing Act of 1937, 42 U.S.C. § 1401, et seq., as amended, HUD operates and funds various housing programs for low income families to remedy “the unsafe and unsanitary housing conditions and the acute shortage of decent, safe, and sanitary dwellings for families of lower income....” 42 U.S.C.S. § 1437 (Law.Coop.1990 & Supp.1993).

The Brooke Amendment to the Housing Act, 42 U.S.C. § 1437a(a)(l), sets the rent for tenants of public housing at approximately 30 percent of the household’s monthly adjusted income. Rent covers all housing costs, including utilities. 42 U.S.C. § 1437f(c)(l). With respect to defraying the cost of utilities,5 recipients of HUD housing subsidies receive a “utility allowance.” The amount of a utilities allowance is not based upon the specific needs of an individual household. Instead, it is calculated according to the region and costs of energy.

Where, as here, the amount of rent appellants pay from their own sources is less than their utility allowances, they are issued checks known as “utility reimbursements” (URs). 24 C.F.R. § 813.102. There is no requirement that URs be spent for utilities.

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841 F. Supp. 991, 1993 U.S. Dist. LEXIS 18858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obryant-v-idaho-department-of-health-welfare-idd-1993.