Local Heating Assistance: Planning/action Required

Training for: Legal Notes

(Updated from the November 2011 Maine Townsman, Legal Notes.)

Question: We’d like to establish a municipal heating assistance program for those who may not qualify for General Assistance (GA) or LIHEAP funds, but we don’t know where to start. Any suggestions?
Answer: Yes, but first decide whether a municipal program is necessary or the best option. Many local charities, including church and civic groups, are already set up to provide help. Also, statewide programs, such as the “Keep ME Warm” program, funded by donations and administered through a statewide partnership of Maine’s United Ways and local Community Action Agencies, helps many thousands of Maine households.

If you still want to set up a municipal program, here are four issues you’ll need to address:

• Is there authority to establish the program? Unless otherwise provided in a municipal charter, the municipality’s legislative body (town meeting or town or city council) must approve establishment of a municipal heating assistance program.

• How will the program be funded? If by donations, they must be accepted before assistance can be distributed. The general rule is that gifts for a particular purpose (e.g., heating assistance) must be accepted by vote of the municipal legislative body. However, gifts of money to supplement an appropriation already made can be accepted by vote of the municipal officers (select board or councilors) alone, so a nominal budget appropriation for heating assistance would facilitate the acceptance of future donations. Absent an appropriation, a vote to accept prospectively all donations of money for heating assistance will probably suffice. (For more on the acceptance of gifts and their tax-deductibility, see “Tax Status of Municipalities and Deductibility of Gifts,” Maine Town & City, “Legal Notes,” December 2020.)

• Who will administer the program? It is essential, both for accessibility to clients and for public accountability, that some person(s) be designated to administer the program. We suggest either the municipality’s GA administrator or a small, special committee (including perhaps community representatives). Either way, this designation should be made by the municipal legislative body or by the municipal officers if authorized by the legislative body.

• What eligibility criteria will apply? Public assistance, including local heating assistance, cannot be distributed without uniform guidelines to ensure that it will be dispensed fairly, based on bona fide need. Otherwise, a heating assistance program may not qualify as a public purpose and could be open to charges of cronyism (or worse). We suggest either adopting the criteria of the Keep ME Warm program (see above) or using criteria similar to GA guidelines (but modified to relax qualifications) as the basis for determining eligibility under a local heating assistance program.

A final note: Since a municipal heating assistance program is not part of the confidential GA program, the program will be subject to public scrutiny. All meetings of a board or committee and all records and information, including the identities of recipients and the amount of assistance, will be open to the public unless otherwise protected by law. This is one important reason a program established by a community agency may be preferred. (R.P.F./S.F.P.)

(Updated from the November 2011 Maine Townsman, Legal Notes.)

Question: We’d like to establish a municipal heating assistance program for those who may not qualify for General Assistance (GA) or LIHEAP funds, but we don’t know where to start. Any suggestions?
Answer: Yes, but first decide whether a municipal program is necessary or the best option. Many local charities, including church and civic groups, are already set up to provide help. Also, statewide programs, such as the “Keep ME Warm” program, funded by donations and administered through a statewide partnership of Maine’s United Ways and local Community Action Agencies, helps many thousands of Maine households.

If you still want to set up a municipal program, here are four issues you’ll need to address:

• Is there authority to establish the program? Unless otherwise provided in a municipal charter, the municipality’s legislative body (town meeting or town or city council) must approve establishment of a municipal heating assistance program.

• How will the program be funded? If by donations, they must be accepted before assistance can be distributed. The general rule is that gifts for a particular purpose (e.g., heating assistance) must be accepted by vote of the municipal legislative body. However, gifts of money to supplement an appropriation already made can be accepted by vote of the municipal officers (select board or councilors) alone, so a nominal budget appropriation for heating assistance would facilitate the acceptance of future donations. Absent an appropriation, a vote to accept prospectively all donations of money for heating assistance will probably suffice. (For more on the acceptance of gifts and their tax-deductibility, see “Tax Status of Municipalities and Deductibility of Gifts,” Maine Town & City, “Legal Notes,” December 2020.)

• Who will administer the program? It is essential, both for accessibility to clients and for public accountability, that some person(s) be designated to administer the program. We suggest either the municipality’s GA administrator or a small, special committee (including perhaps community representatives). Either way, this designation should be made by the municipal legislative body or by the municipal officers if authorized by the legislative body.

• What eligibility criteria will apply? Public assistance, including local heating assistance, cannot be distributed without uniform guidelines to ensure that it will be dispensed fairly, based on bona fide need. Otherwise, a heating assistance program may not qualify as a public purpose and could be open to charges of cronyism (or worse). We suggest either adopting the criteria of the Keep ME Warm program (see above) or using criteria similar to GA guidelines (but modified to relax qualifications) as the basis for determining eligibility under a local heating assistance program.

A final note: Since a municipal heating assistance program is not part of the confidential GA program, the program will be subject to public scrutiny. All meetings of a board or committee and all records and information, including the identities of recipients and the amount of assistance, will be open to the public unless otherwise protected by law. This is one important reason a program established by a community agency may be preferred. (R.P.F./S.F.P.)