[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Rules and Regulations]
[Pages 27124-27126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12842]
[[Page 27123]]
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Part III
Department of Housing and Urban Development
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24 CFR Part 5, Et al.
Admission Preferences, Public Housing Development, and Public Housing
Modernization Regulations: Technical Amendments; Final Rule
Federal Register / Vol. 62, No. 95 / Friday, May 16, 1997 / Rules and
Regulations
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 941, 950, and 968
[Docket No. FR-4166-F-01]
RIN 2501-AC38
Admission Preferences, Public Housing Development, and Public
Housing Modernization Regulations: Technical Amendments
AGENCY: Office of the Secretary, HUD.
ACTION: Final rule: technical amendment.
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SUMMARY: This final rule makes technical amendments to several of HUD's
regulations that affect its assisted housing programs. These amendments
make the following changes: revise language in a rule governing
admission preferences in the assisted housing programs to make it more
general, to cover all the Section 8 Housing Assistance Payments
programs it was intended to cover, as evidenced by the Section 8
regulations that cross-reference the preferences rule; restore language
regarding ``total development cost'' that was removed from regulations
covering the public housing development program when an interim rule
expired on May 29, 1995; restore language stating review criteria for
performance under modernization standards; and conform the requirements
for paid-off and conveyed Turnkey III units in public housing to those
in the Indian housing program. These changes rectify problems that
occurred inadvertently in previous rulemakings.
EFFECTIVE DATE: June 16, 1997.
FOR FURTHER INFORMATION CONTACT: For the public housing program,
contact Bill Flood, Director, Office of Capital Improvements, Office of
Public Housing Investments, Department of Housing and Urban
Development, 451 Seventh Street, S.W., Washington, D.C. 20410,
telephone (voice): (202) 708-1640, ext. 4185. (This is not a toll-free
number.) For hearing-and speech-impaired persons, this number may be
accessed via text telephone by dialing the Federal Information Relay
Service at 1-800-877-8339.
For the Section 8 programs, contact Gerald J. Benoit, Director,
Operations Division, Office of Public and Assisted Housing Operations,
Department of Housing and Urban Development, 451 Seventh Street, S.W.,
Washington, D.C. 20410, telephone (voice): (202) 708-0477, ext. 4069.
(This is not a toll-free number.) For hearing-and speech-impaired
persons, this number may be accessed via text telephone by dialing the
Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On November 29, 1993, an interim rule was published (58 FR 62522),
which revised the definition of ``Total development cost'' found in the
public housing development regulations (24 CFR part 941) and the Indian
housing regulations (located then at 24 CFR part 905, now at part 950).
That rule also revised other sections of those regulations specifying
how the total development cost concept was used to limit the maximum
approvable cost for a project. That rule contained an expiration date
of May 29, 1995.
Having lost track of the existence of that expiration date for
these provisions and, having further revised the sections in the
meantime, the Department failed to realize that the definitions and
other affected sections might return to their pre-1993 status. In the
case of the public housing development regulations, the definition of
``Total development cost'' was omitted when title 24 of the Code of
Federal Regulations was published, in accordance with the expiration
date. In the case of the Indian housing regulations, the definition
remains.
A second prior rulemaking that occasioned the need for this rule is
the final rule published on March 6, 1996 (61 FR 9040), consolidating
the provisions governing admissions preferences into a single part, 24
CFR part 5, subpart E. Although the terms of the 1997 appropriations
for HUD continue the suspension of application of the Federal
preferences to HUD programs through September 30, 1997, the Department
feels it necessary to correct the rule that will apply on October 1,
1997, absent additional Congressional action on this subject.
The consolidated preferences rule states, at 24 CFR 5.410(d)(1)(i),
that its provision concerning consideration of matching the
characteristics of the unit with the characteristics of the applicant
family applies to ``developments administered under the Section 8 New
Construction and Substantial Rehabilitation programs and the public
housing program''. The Section 8 program regulations, on the other
hand, provide (at 24 CFR 882.514(a)(1) and 882.514(b), 886.132 and
886.337) that the preferences provisions of 24 CFR part 5 apply to the
Section 8 Moderate Rehabilitation and Section 8 HUD-Held and HUD-Owned
projects. The intent of the consolidation was to apply the provision
(Sec. 5.410(d)(1)(i)) that requires matching characteristics of a unit
with characteristics of applicants (including accessibility features
and such needs), along with other preferences provisions, to all
Section 8 programs where the responsible entity is selecting a family
for a particular unit. This technical amendment corrects this oversight
in the listing of covered Section 8 programs by changing the above-
quoted language to, ``developments administered under the Section 8
programs and * * * public housing''.
A third rulemaking that occasioned the need for this rule is a
final rule published on October 18, 1996 (61 FR 54492) that
consolidated provisions dealing with income and rent applicable to
several assisted housing programs from 24 CFR parts 813 and 913 into
one subpart of 24 CFR part 5. It preserved language in the new
Sec. 5.617(b)(3) referring to the purposes of this ``part,'' when it
should have modified the language to fit the new context of its
placement in a ``subpart.'' An old typographical error in that same
section was preserved from the former location, and is being corrected
in this amendment.
A fourth rulemaking that is a foundation for this rule is a final
rule published on March 5, 1996. That rule streamlined the
modernization provisions of the Indian housing and public housing
programs. However, in one respect it used different language,
inadvertently. This rule conforms the language of the public housing
rule (Sec. 968.102(b)) to the language of the Indian housing rule with
respect to the treatment of paid-off Turnkey III units. (See
Sec. 950.602(b) at 61 FR 8721.) It also conforms the language of the
public housing rule to the language of the Indian housing rule with
respect to increased value of a homeownership unit caused by its
substantial rehabilitation by adding the word ``not'' to paragraph
Sec. 968.112(d)(3)(ii) before the phrase, ``by an automatic increase in
its selling price.'' (See Secs. 950.608(d)(3)(ii) and 968.112(d)(3)(ii)
at 61 FR 8724 and 8739, respectively).
In addition, it has come to the Department's attention that
performance standards were omitted from both the Indian housing and
public housing rules in that rulemaking. This rule corrects that
omission by adding new provisions Secs. 950.660(a)(3) and
968.335(a)(3), which describe what HUD means by ``reasonable progress''
in implementing the HA's modernization plan.
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II. Findings and Certifications
A. Justification for Final Rule
The Department generally publishes a rule for public comment before
issuing a rule for effect, in accordance with its regulations on
rulemaking in 24 CFR part 10. However, part 10 provides that prior
public procedure will be omitted if HUD determines that it is
``impracticable, unnecessary, or contrary to the public interest'' (24
CFR 10.1).
This final rule merely makes technical amendments to existing rules
to restore language removed inadvertently, and to correct language to
remove an apparent inconsistency between program regulations and a
consolidated rule. Implementation of the rule's provisions is needed as
soon as possible to correct existing rules in effect. Therefore, the
Department has determined that good cause exists to omit prior public
procedure for this final rule because such delay would be contrary to
the public interest and unnecessary.
B. Impact on the Environment
This rule does not in itself have an environmental impact. This
rule merely makes technical changes to existing rules to restore
provisions removed inadvertently; to correct language to provide
consistency between program regulations, consistent with their original
intent; and to correct editorial errors. It does not alter the
environmental effect of the regulations. At the time of development of
the original program regulations whose language is restored or
corrected by this rule, Findings of No Significant Impact with respect
to the environment were made in accordance with HUD regulations in 24
CFR part 50 and section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332). The findings remain applicable to this
rule and are available for public inspection between 7:30 a.m. and 5:30
p.m. weekdays in the office of the Rules Docket Clerk, Room 10276, 451
Seventh Street, SW, Washington, DC 20410.
C. Federalism Impact
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this rule
does not have significant impact on States or their political
subdivisions, or the relationship between the Federal government and
the States, or on the distribution of power and responsibilities among
the various levels of government. As a result, the rule is not subject
to review under the Order. The rule only makes minor technical changes
to existing rules.
D. Impact on Small Entities
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this rule before publication and by
approving it certifies that this rule will not have a significant
impact on a substantial number of small entities. This rule makes only
technical amendments to clarify existing regulations.
E. Unfunded Mandates Reform Act
The Secretary has reviewed this rule before publication and by
approving it certifies, in accordance with the Unfunded Mandates Reform
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal
mandate that will result in the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year.
Catalog
The Catalog of Federal Domestic Assistance number for the programs
affected by this rule is 14.850.
List of Subjects
24 CFR Part 5
Administrative practice and procedure, Aged, Claims, Drug abuse,
Drug traffic control, Grant programs--housing and community
development, Grant programs--Indians, Grant programs--low and moderate
income housing, Indians, Individuals with disabilities,
Intergovernmental relations, Loan programs--housing and community
development, Low and moderate income housing, Mortgage insurance,
Penalties, Pets, Public housing, Rent subsidies, Reporting and
recordkeeping requirements, Social Security, Unemployment compensation,
Wages.
24 CFR Part 941
Grant programs--housing and community development, Loan programs--
housing and community development, Public housing.
24 CFR Part 950
Aged, Grant programs--housing and community development, Grant
programs--Indians, Individuals with disabilities, Low and moderate
income housing, Public housing, Reporting and recordkeeping
requirements.
24 CFR Part 968
Grant programs--housing and community development, Indians, Loan
programs--housing and community development, Public housing, Reporting
and recordkeeping requirements.
Accordingly, parts 5, 941, 950, and 968 of title 24 of the Code of
Federal Regulations are amended as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
1. The authority citation for part 5 continues to read as follows:
Authority: 12 U.S.C. 101r-1; 42 U.S.C. 1436a, 3535(d), 3543, and
3544.
2. In Sec. 5.410, paragraph (d)(1)(i), the first sentence is
revised to read as follows:
Sec. 5.410 Selection preferences.
* * * * *
(d) * * *
(1) * * *
(i) Characteristics of the unit. For developments administered
under the Section 8 programs and for public housing, the responsible
entity may, in selecting a family for a particular unit, match other
characteristics of the applicant family with the type of unit
available, e.g., number of bedrooms. * * *
* * * * *
3. In Sec. 5.617, paragraph (b)(3) is revised to read as follows:
Sec. 5.617 Reexamination and verification.
* * * * *
(b) * * *
(3) The use or disclosure of information obtained from a family or
from another source pursuant to this release and consent shall be
limited to purposes directly connected with administration of this
subpart or applying for assistance.
* * * * *
PART 941--PUBLIC HOUSING DEVELOPMENT
4. The authority citation for part 941 continues to read as
follows:
Authority: 42 U.S.C. 1437b, 1437c, 1437g and 3535(d).
5. Section 941.103 is amended by adding a definition of ``Total
development cost'' in alphabetical order at the end of the definitions,
to read as follows:
Sec. 941.103 Definitions.
* * * * *
Total development cost (TDC). The sum of all HUD-approved costs for
planning (including proposal preparation), administration, site
acquisition, relocation, demolition, construction and equipment,
interest and carrying charges, on-site streets and utilities, non-
dwelling facilities, a
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contingency allowance, insurance premiums, off-site facilities, any
initial operating deficit, and other costs necessary to develop the
project. The total development cost in the proposal, when reviewed and
approved by HUD, becomes the maximum total development cost stated in
the ACC. Upon completion of the project, the actual development cost is
determined, and this becomes the maximum total development cost of the
project for purposes of the ACC. The maximum total development cost
excludes costs funded from donations.
PART 950--INDIAN HOUSING PROGRAMS
6. The authority citation for part 950 is revised to read as
follows:
Authority: 25 U.S.C. 450e(b), 42 U.S.C. 1437aa-1437ee, and
3535(d).
7. In Sec. 950.660, paragraph (a)(3) is revised to read as follows:
Sec. 950.660 HUD review of IHA performance.
(a) * * *
(3) Reasonable progress. HUD shall determine whether the IHA has
satisfied, or has made reasonable progress towards satisfying, the
following performance standards:
(i) Conformity with its comprehensive plan, including its annual
statement and latest HUD-approved five-year action plan, and other
statutory and regulatory requirements;
(ii) Continuing capacity to carry out its comprehensive plan in a
timely manner and expend the annual grant funds; and
(iii) Reasonable progress toward bringing all of its developments
to the modernization and energy conservation standards and toward
implementing the work specified in the annual statement or five-year
action plan designed to address management deficiencies.
* * * * *
PART 968--PUBLIC HOUSING MODERNIZATION
8. The authority citation for part 968 continues to read as
follows:
Authority: 42 U.S.C. 1437d, 1437l, and 3535(d).
9. In Sec. 968.102, paragraph (b) is revised to read as follows:
Sec. 968.102 Special requirements for Turnkey III developments.
* * * * *
(b) Eligibility of paid-off and conveyed units for assistance.--(1)
Paid-off units. A Turnkey III unit that is paid off but has not been
conveyed at the time the CIAP application or CGP Annual Submission is
submitted, is eligible for any physical improvement under
Sec. 968.112(d).
(2) Conveyed units. Where modernization work has been approved
before conveyance, the PHA may complete the work even if title to the
unit is subsequently conveyed before the work is completed. However,
once conveyed, the unit is not eligible for additional or future
assistance. A PHA shall not use funds provided under this part for the
purpose of modernizing units if the modernization work was not approved
before conveyance of title.
* * * * *
Sec. 968.112 [Amended]
10. Section 968.112 is amended by adding to the last sentence of
paragraph (d)(3)(ii) the word ``not'' before the phrase ``by an
automatic increase in its selling price.''
11. In Sec. 968.335, paragraph (a)(3) is revised to read as
follows:
Sec. 968.335 HUD review of PHA performance.
(a) * * *
(3) Reasonable progress. HUD shall determine whether the PHA has
satisfied, or has made reasonable progress towards satisfying, the
following performance standards:
(i) Conformity with its comprehensive plan, including its annual
statement and latest HUD-approved five-year action plan, and other
statutory and regulatory requirements;
(ii) Continuing capacity to carry out its comprehensive plan in a
timely manner and expend the annual grant funds; and
(iii) Reasonable progress toward bringing all of its developments
to the modernization and energy conservation standards and toward
implementing the work specified in the annual statement or five-year
action plan designed to address management deficiencies.
* * * * *
Dated: May 7, 1997.
Andrew Cuomo,
Secretary.
[FR Doc. 97-12842 Filed 5-15-97; 8:45 am]
BILLING CODE 4210-32-P
