LIHEAP Q & As on Disaster Relief

Publication Date: September 9, 2022
Current as of:

The following are frequently asked questions and answers about what LIHEAP grantees (states, tribes and territories) can and cannot do under LIHEAP during a disaster:

Question: Can HHS waive the eligibility requirements for LIHEAP to allow assistance to all households affected by a disaster?

Answer: The LIHEAP statute does not authorize waiver of the income eligibility guidelines. However, federal law permits income eligibility to be established at either 60 percent of the state's median income or 150 percent of the HHS poverty income guidelines--whichever is greater. The 60 percent of a state's median income is usually higher than 150 percent of the HHS poverty level; both income standards are adjusted by the number of persons living in a household that is applying for assistance. It should also be noted that the LIHEAP statute permits LIHEAP grant recipients the flexibility to provide services to households with at least one member who receives assistance under the TANF, SSI, and Food Stamp programs. (This "categorical eligibility" also includes some means-tested veteran's programs.)

The grant recipient can change its eligibility limits to 60 percent of the state's median income to include those households that would otherwise not qualify for LIHEAP assistance under the 150 percent of poverty guidelines. On the other hand, the grant recipient could also set a higher percentage of poverty limit that is equal to 60 percent of the state median income. For example, in a comparison of 60 percent of the FY 2022 state median income with 150 percent of the 2022 HHS poverty guidelines, for a 4-person household, Florida could set its poverty income guidelines at 180% and be within the law.

Grant recipients have a great deal of flexibility concerning documentation as long as this does not conflict with the grant recipients own rules that govern their funds (45 CFR Section 96.30(a)).  Since grant recipients are ultimately responsible for proper disbursal of LIHEAP federal funds, OCS strongly encourages grant recipients to set policies about following up with beneficiaries once the immediate needs are alleviated.

Please note that section 2604(c)(42 USC 8623(c)) of the LIHEAP statute authorizes the use of LIHEAP funds for "energy crisis intervention". That intervention must be tied in some way to a household's energy assistance need or emergency, to the extent that the weather related event has resulted (or may result) in energy supply shortages or other energy-related emergencies. Section 2604 (c) reads, in part:

  1. not later than 48 hours after a household applies for energy crisis benefits, provide some form of assistance that will resolve the energy crisis if such household is eligible to receive such benefits;
  2. not later than 18 hours after a household applies for crisis benefits, provide some form of assistance that will resolve the energy crisis if such household is eligible to receive such benefits and is in a life-threatening situation.

The 48 and 18 hour time frames do not apply when a grant recipient is affected by a natural disaster (such as a hurricane, flood, wildfire, tornado, earthquake, extreme heat and extreme cold).

Outside of a major disaster or emergency designated by the President, a grant recipient's chief executive officer (or his or her designee) can request a waiver when maintaining compliance with the LIHEAP energy crisis requirements is impracticable due to a natural disaster or similar event. The grant recipient's chief executive officer (or his or her designee) can request a waiver by communicating the following:

  • Information substantiating the existence of a disaster or emergency;
  • Information substantiating the impracticality of compliance with the standards, including a description of the specific conditions caused by the disaster or emergency which make compliance impracticable; and
  • Information on the expected duration of the conditions that make compliance impracticable.

Section 96.89(c) of the LIHEAP regulations specifies that, "The initial communication by the chief executive officer may be oral or written. If oral, it must be followed as soon as possible by written communication confirming the information provided orally. The Secretary's initial exemption may be oral. If so, the Secretary of HHS will provide written confirmation of the exemption as soon as possible after receipt of appropriate written communication from the chief executive officer."

Section 96.89(d) specifies that, "Exemption from the standards shall apply from the moment of the Secretary's determination, only in the geographical area affected by the disaster or emergency, and only for so long as the Secretary determines that the disaster or emergency makes compliance with the standards impracticable."

During a federally declared national emergency, grant recipients do not need to request a waiver from the Secretary to use LIHEAP funds for crisis assistance without meeting the 48/18-hour deadlines. Nonetheless, we expect grant recipient to uphold the spirit of this section of the federal LIHEAP statute by intervening in crisis situations to address imminent health and safety concerns and dangers for low income households that are eligible for LIHEAP.

Question: Can a waiver be granted for local administering agencies impacted by the disaster to increase administrative cost above 10% cap of the allocated LIHEAP funds?

Answer: The LIHEAP statute limits the amount of LIHEAP funds that grant recipients may use for planning and administrative costs (referred to in this transmittal for simplicity as "administrative costs") to 10% of funds payable for a federal fiscal year. Any costs in excess of this limit must be paid from non-federal funds. (By regulation at 45 CFR 96.88, the administrative cost ceiling for tribal and insular area grant recipient is 20% of the first $20,000 and 10% of funds in excess of $20,000. Otherwise, all statutory and regulatory provisions concerning administrative costs apply to all LIHEAP grant recipients.)

Neither the LIHEAP statute nor federal regulations specify a definition for planning and administrative costs. Instead, grant recipients are to develop their own definitions, consistent with the statute and regulations; we will defer to the state's definition unless it is based on an interpretation of the statute that is "clearly erroneous". [45 CFR 96.50(e)]

The OCS would not grant a waiver as this would occur on the state level. The grant recipient may increase the administration percentage for local agencies impacted by the disaster if the state contract allows this, provided that the state administrative cost cap as a whole does not exceed 10% from all federal resources. The cap calculation applies to the total LIHEAP resources available for the grant recipient within a federal fiscal year.

Question: Can LIHEAP funds be used as vouchers to pay for other living expenses, like rent?

Answer: The issue about broadening the intent of the LIHEAP program to include voucher payments for rental or mortgage payments could be a problem, since the statute provides that LIHEAP funds only be used for purposes related to home energy. To the extent that voucher payments are not connected to home energy, LIHEAP funds may not be used. However, under the block grant rules at 45 CFR 96.50(e), the LIHEAP grant recipient is the primary interpreter of the LIHEAP statute. There's a great deal of flexibility as to the kinds of home energy-related payments that may properly be made and, under the LIHEAP regulations at 45 CFR 96.50(e), Grant recipients' interpretations of statutory LIHEAP provisions are entitled to deference "unless the interpretation is clearly erroneous."

Each grant recipient establishes its own policies and procedures with respect to all aspects of its LIHEAP program, including the criteria it will consider when designating a “state of emergency,” “disaster,” or “crisis.” In addition, the grant recipient can set up a payment structure for issuing crisis benefits that considers, among other things, a household's income, number of household members and type of fuel. A grant recipient may pay a crisis benefit only up to a certain dollar amount, or it can provide enough of a benefit to cover the entire cost necessary to alleviate an emergency. Each grant recipient must have its own guidelines for issuing LIHEAP crisis benefits. LIHEAP funds may be used for weather-related emergencies, supply shortage emergencies, and other household energy related emergencies, including the reconnection of electrical service. There is no legal limit on the amount of LIHEAP funds that can be used for energy crisis assistance. However, the LIHEAP grant recipient is required to report in its annual LIHEAP Model Plan the percentage of the funds it expects to devote to this activity, and what uses will be made of the funds. If an event causes a LIHEAP grant recipient to significantly change the amounts, or percent of funds, it expects to obligate toward crisis assistance or to change its intended uses of the funds, a plan amendment must be submitted in the Online Data Collection system. No prior approval is needed.

Grant recipients are encouraged to coordinate with the Emergency Rental Assistance (ERA) Program included in the LIHEAP IM 2022-01 LIHEAP Coordination with ERA during Winter FY2022. ERA, administered by the U.S. Department of Treasury (U.S. Treasury), makes funding available to assist rental households that are unable to pay rent or utilities. 

Question: What are the possible uses of LIHEAP funds for disasters, like hurricanes, flooding, wildfire, tornado, earthquake, extreme heat and extreme cold? What uses would not be allowed?

Answer: The following activities would be considered allowable uses of LIHEAP funds to deal with crisis situations, particularly with respect to assistance for home energy related needs resulting from a natural disaster:

  • Costs to temporarily shelter or house individuals in hotels, apartments or other living situations in which homes have been destroyed or damaged, i.e., placing people in settings to preserve health and safety and to move them away from the crisis situation.
  • Establishing cooling centers, which might include working with other public facilities such as local libraries, community centers, and government buildings to establish a waiting area where people can remain cool during the hottest periods of the day (usually 10 am - 4 pm). It might also include coordinating with emergency response teams in states, tribes, territories and localities to ensure that they are aware of cooling centers, how to refer people to LIHEAP for immediate needs, help move homebound individuals to cooling centers if needed, and other related issues.
  • Costs for transportation (such as cars, shuttles, buses) to move individuals away from the crisis area to shelters, when health and safety is endangered by loss of access to heating or cooling.
  • Utility reconnection costs/fees.
  • Repair or replacement costs for furnaces and air conditioners.
  • Insulation repair.
  • Coats and blankets, as tangible benefits to keep individuals warm.
  • Crisis payments for utilities and utility deposits.
  • Purchase and installation of generators.
  • Purchase of air conditioners and fans.
  • Utilize high efficiency air source heat pumps  which enable cooling as well as heating. Heat pumps offer the most energy-efficient alternative to furnaces and air conditioners for all climate zones. Make sure cold climate heat pumps are specified for residences in northern states and high altitudes. Today's heat pumps can reduce your electricity use for heating by approximately 50% compared to electric resistance heating such as furnaces and baseboard heaters.
  • Provide evaporative (swamp) coolers for households located in low humidity areas if appropriate and ensure that households know how to properly maintain them.
  • Loaning or giving air conditioning units, especially targeting vulnerable households that will most likely be homebound or feel the temperature change the greatest, such as seniors, young children, disabled individuals, and those on ventilators or certain medications.
  • Providing targeted outreach to identify households at greatest risk, such as those who are homebound, to ensure they are in a temperature safe environment. This may include telephone calls, home visits, Public Service Announcements, etc. Interventions might include making sure they have working air conditioning units, setting the thermostat to a temperature that is safe for their medical needs—which might involve them consulting with their nurse or doctor—helping transport them to a cooling center, etc.
  • Providing education to applicants and recipients about how to keep their homes cool during this time.

Unallowable uses of LIHEAP funds that are not home energy related:

  • Payments for water/sewage (unless some of it is involved in overall weatherization, but paying water bills is not allowable with LIHEAP funds). Note, OCS has a separate program, the Low Income Household Water Assistance Program (LIHWAP) that can assist households with paying their water and wastewater bills.
  • Mortgage or rent assistance is not allowable, unless these are necessary costs to shelter individuals from the crisis situation for a temporary period of time (see allowable uses).
  • Utility assistance for households housing displaced victims unless the household is already low income and qualifies for LIHEAP assistance.
  • Ramps and wheelchairs.
  • School uniforms and school supplies.
  • Clothing (except for coats).
  • Mattresses, cots, air beds and pillows.

Question: Can a LIHEAP grant recipient provide weatherization for households affected by disasters?

Answer: If grant recipients affected by the natural disaster want to provide low cost residential weatherization and other energy-related home repair and possibly install new heating and cooling systems, water heaters, refrigerators and stoves, they could do this under their Weatherization program, but they would be limited to the 15% cap, or 25% if a waiver is requested. If a grant recipient provides these services under their Crisis Intervention Program, the limit is determined by the grant recipient program rules.

Question: Should grant recipients provide amendments to their LIHEAP plan applications to include assistance during natural disasters?

Answer: Grant recipients may change their program benefits and assistance types throughout the Federal fiscal year to address unexpected natural disasters or other events. Grant recipients must submit a revision to their LIHEAP Plan in OLDC ; however, such plan revisions do not need prior approval. They may be submitted within a reasonable time after the event and/or plan modification.

LIHEAP Program Specialists in the Division of Energy Assistance are available to states, territories, and tribes to provide technical assistance or answer questions regarding flexibilities. In addition, they are available to help grant recipient develop their own LIHEAP Disaster Flexibilities policies. If grant recipient encounter other barriers to responding to individuals and families with low incomes, aside from those included in this Q&A, please feel free to reach out to your assigned federal LIHEAP Program Specialists for consultation.