ACYF-IM-91-25 11/29/91

ACF Administration for Children and Families	U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children, Youth and Families
	1. Log No.: ACYF-IM-91-25	2. Issuance Date: 11/29/91
	3. Originating Office: Children's Bureau
	4. Key Word: Independent Living

INFORMATION MEMORANDUM

TO: State Agencies Administering or Supervising the Administration of Title IV-E of the Social Security Act

SUBJECT: Availability of FY 1992 Funds for the Independent Living Program

LEGAL AND RELATED REFERENCES: Sections 472, 474(a), 475(1), and 477 of Title IV-E of the Social Security Act; 45 CFR Part 92; ACYF-PI-90-01, issued January 12, 1990; ACYF-PI-90-16, issued October 2, 1990

BACKGROUND: The Omnibus Budget Reconciliation Act of 1989, Public Law (P.L.) 101-239, reauthorized the Independent Living (IL) Program for fiscal years (FYs) 1990 through 1992 and provided an increase in IL funds from $45 million for FY 1989 to $50 million for FY 1990. For FY 1991, $60 million was authorized and appropriated; for FY 1992, $70 million was authorized.

While FY 1992 IL funds have not yet been appropriated, it is expected that Congress will approve the $70 million previously authorized.

All States are entitled to their share of $45 million with no requirements for cost sharing. However, State matching funds will be required for any State that elects to receive some or all of its share of the additional amount above $45 million ($25 million).

Regulatory requirements at 45 CFR Part 92 establish the rules for cost sharing and matching funds. Eligible matching contributions may be cash or in-kind contributions of services, equipment or property, and may originate with a third party.

P.L. 101-508 amended section 477 to extend, at State option, eligibility for IL services supported with Federal funds to children formerly in foster care up to age 21.

PURPOSE: The purpose of this Information Memorandum is to provide information regarding (1) the procedures to be followed in applying for FY 1992 IL funds and in reporting on program activities and services; (2) the matching contribution requirements; (3) the extension of eligibility for amount of individual State allotments under the anticipated FY 1992 appropriation of $70 million for the IL Initiatives Program.

INFORMATION: FY 1992 Application Procedures, The instructions provided by Program Instruction ACYF-PI- 90-01 (Attachment A), issued January 12, 1990, remain in effect and must be followed in order to receive FY 1992 IL funds. The Program Instruction sets forth information regarding the following topics: availability of funds, definition of eligible participants (amended by P.L. 101-508), IL programs and activities, prohibition of the use of IL funds for room and board, application requirements and submittal, reallotment of funds, reporting requirements, and application approval and changes.

The closing date for receipt of FY 1992 applications is January 31, 1992. However, in order to expedite the receipt of FY 1992 IL funds, States are encouraged to submit their applications well before that date. Awards will be made after the appropriation is passed by Congress and the application is approved by the Administration on Children, Youth and Families. Applications which would require modification may be revised by the State at a later date, if necessary. The funds awarded in FY 1992 must be obligated and expended FY 1991 Program Report. The Program Report covering FY 1991 activities and services is due no later than January 1, 1992.

Matching Contribution Requirements. On October 20, 1990, ProgramInstruction ACYF-PI-90-16 (Attachment B) was issued to provideinformation on the requirements for dollar-for-dollar State match of Federal IL funds over $45 million. The PI also providedinstructions on regulatory requirements, as well as on other limitations regarding the State match. Matching contributions may be in cash or in kind (contributions of services, equipment, or property). Contributions, either in cash or in kind, which originate with a third party are also acceptable as State match.

Extension of Age Eligibility. P.L. 101-508 amended section 477 (a)(2)(C) to allow States the option to extend IL eligibility to youth formerly in foster care until they reach the age of 21. For example, if a youth left foster care at age 17 (whether title IV-E eligible or non-title IV-E eligible), the State could, if it wished, continue to provide assistance to the youth up to age 21.

This provision amended section 477(a)(2)(C) and became effective October 1, 1990. The legislation, as amended, not only continues the option for a State to provide IL services after foster care but extends the time during which IL services may be provided. Previously, a State could opt to provide IL services for a maximum of six months after discharge from foster care. Under the amendment, States may now opt to provide IL services up to the time a former foster child reaches age 21. Therefore, the State should indicate in its application (1) whether it elects to provide IL services to children after they leave foster care up to the age of 21 and, if so, (2) provide information on how this option will be integrated into the State's overall planning and implementation of IL services.

Tentative FY 1992 Allotments. Attachment C provides the tentative FY 1992 IL allotments for each State and includes both the basic amount (the State's share of the $45 million) and the additional amount available for State match (the State's share of the additional $25 million).

As part of the FY 1992 application process, each State must (1) indicate whether or not it will apply for and match the additional funds over the $45 million basic amount; and (2) specify the amount of the funds it will apply for and match, if applicable. Because it is possible that some States will not apply for their full allocation, each State should also (3) indicate whether or not it will accept and match additional funds that may become available through the subsequent reallocation of excess IL funds; and (4) specify the minimum and maximum amount of reallocated funds the State will accept and match, if available. The State matching information is to be provided on the form included as Attachment D.

INQUIRIES TO: Regional Administrators, ACF
Region I-X or
Irene Hammond (202) 245-0666
Program Operations Division, Children's Bureau
Washington, D.C.

Wade F. Horn, Ph.D.
Commissioner

Attachments:

Attachment A:   ACYF-PI-90-01
Attachment B:   ACYF-PI-90-16
Attachment C:   FY 1992 Independent Living Program Tentative Allotments
Attachment D:   State Matching Information
Attachment E:   Section 477 of the Social Security Act