[Federal Register Volume 64, Number 120 (Wednesday, June 23, 1999)]
[Rules and Regulations]
[Pages 33636-33637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15737]
[[Page 33635]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 968
Comprehensive Improvement Assistance Program; Final Rule
Federal Register / Vol. 64, No. 120 / Wednesday, June 23, 1999 /
Rules and Regulations
[[Page 33636]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 968
[Docket No. FR-4462-F-02]
RIN 2577-AB97
Comprehensive Improvement Assistance Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule.
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SUMMARY: This rule amends the regulations for the Comprehensive
Improvement Assistance Program (CIAP) to permit the non-competitive
distribution of CIAP funds to all eligible public housing authorities
(PHAs) based on two equally-weighted factors: a PHA's share of the
total number of units eligible for CIAP; and a PHA's share of the total
number of bedrooms in units eligible for CIAP (with studio units
counted as one-bedroom units). The purpose of this amendment is to
provide small PHAs the opportunity of a transition period to become
familiar with a non-competitive, capital funding process in
anticipation of formula funding in Federal Fiscal Year (FFY) 2000 under
new statutory authority.
DATES: Effective date: July 23, 1999.
FOR FURTHER INFORMATION CONTACT: William J. Flood, Director, Office of
Capital Improvements, Department of Housing and Urban Development, 451
Seventh Street, SW, Room 4134, Washington, DC 20410. Telephone (202)
708-1640. (This is not a toll free number.) Persons with hearing or
speech impediments may access this number via TTY by calling the
Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Comprehensive Improvement Assistance Program (CIAP) is
authorized under section 14 of the United States Housing Act of 1937
(1937 Act). CIAP provides modernization funds to public housing
authorities (PHAs) that own or operate less than 250 units of public
housing, to enable them to improve the physical condition and upgrade
the management and operations of existing public housing developments
to assure their continued availability for low-income families. In FFY
1999, a total of $2.895 billion is available for Modernization Programs
(CIAP and Comprehensive Grant Program (CGP)), of which approximately
$364 million will be available to CIAP PHAs.
On April 30, 1999 (64 FR 23484), HUD published and requested
comment on a proposed rule to amend the CIAP regulations to permit the
distribution of funds, after the formula allocation described in 24 CFR
968.103, to all eligible PHAs on a non-competitive basis.
II. Response to Public Comments
HUD received a total of 18 public comments on the April 30, 1999
proposed rule, 15 from PHAs and three from industry associations. The
comments were almost entirely positive and in support of the proposed
rule stating, for example, that the rule would allow PHAs to plan
improvements each year based on funding they know they will receive
rather than hope they will receive as in the past.
A few comments suggested changes to the proposal, primarily to the
formula factors. Suggested as alternative or additional factors to use
in the formula were: age of units; management performance; prior
unfunded CIAP applications; geographic location; availability of other
government funding; market competition with other federal rent
subsidized units; need, generally; and counting each studio unit as a
half-bedroom, rather than a one-bedroom, unit. HUD acknowledges that
many more or different factors could be considered, but for purposes of
the FFY 1999 distribution, the final year of CIAP funding which this
rule addresses, basically agrees with the comment that commended HUD
for not complicating the formula with a multitude of other factors and
stated: ``Basing the formula only on the number of units and the
bedroom distribution appears simple and straightforward.'' Section 519
of the Quality Housing and Work Responsibility Act of 1998 (Pub. L.
105-276, 112 Stat. 2461, approved October 21, 1998) (the ``Public
Housing Reform Act''), authorizes a new system of funding capital
improvement needs for all PHAs, large and small, on a formula basis
beginning in FFY 2000.
Other comments focused on the vacancy preference provided in the
proposed rule. One comment explicitly supported the retention of
preferences for emergency modernization and vacancy reduction. Another
comment stated that a vacancy factor of 25% is too high for a small
PHA, and the presence of such a high rate suggests severe physical
conditions, poor management, or design or area factors that would not
be overcome with minor amounts of CIAP funding. HUD presently considers
this factor an appropriate threshold as the determinant of an emergency
that merits additional funding, but will monitor the requests for and
use of emergency funds for future reconsideration.
In consideration of the strong positive response to the proposed
rule, HUD is adopting it as final without change.
Findings and Certifications
Paperwork Reduction Act Statement
The information collection requirements of the Comprehensive
Improvement Assistance Program have been approved by the Office of
Management and Budget under OMB Approval No. 2577-0044. An agency may
not conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection displays a valid
control number.
Environmental Impact
In accordance with 40 CFR 1508.4 of the regulations of the Council
on Environmental Quality and 24 CFR 50.19(c)(2) of the HUD regulations,
this rule amends an existing document, the regulations at 24 CFR part
968, which as a whole would not fall within an exclusion, but the
amendment by itself would do so. Therefore, the actions in this
document are determined not to have the potential of having a
significant impact on the quality of the human environment and further
review under the National Environmental Policy Act is not necessary. A
Finding of No Significant Impact (FONSI) is not required.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This proposed rule does not impose
any Federal mandates on any State, local, or tribal governments or the
private sector within the meaning of Unfunded Mandates Reform Act of
1995.
Executive Order 12866
The Office of Management and Budget (OMB) reviewed this rule under
Executive Order 12866, Regulatory Planning and Review. OMB determined
that this rule is a ``significant regulatory action,'' as defined in
section 3(f) of the Order (although not economically significant, as
provided in section 3(f)(1) of the Order). Any changes made to the rule
subsequent to its submission to OMB are identified in the docket file,
which is available for public inspection in the office of the
Department's Rules Docket Clerk, Room 10276, 451 Seventh
[[Page 33637]]
Street, SW, Washington, DC 20410-0500.
Impact on Small Entities
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)) (the RFA), has reviewed and approved this rule and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities. The rule would only
modify the funding process for the final year of the CIAP to provide
small PHAs with a transition period to become familiar with a non-
competitive capital funding process.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official for HUD under
section 6(a) of Executive Order 12612, Federalism, has determined that
this rule will not have federalism implications concerning the division
of local, State, and Federal responsibilities. The rule would only
modify the funding process for the final year of the CIAP to provide
small PHAs with a transition period to become familiar with a non-
competitive capital funding process.
Catalog of Domestic Assistance Numbers
The Catalog of Domestic Assistance numbers for the Comprehensive
Improvement Assistance Program is 14.852.
List of Subjects
24 CFR Part 968
Grant programs--housing and community development, Indians, Loan
programs--housing and community development, Public housing, Reporting
and recordkeeping requirements.
Accordingly, for the reasons stated in the preamble, part 968 of
title 24 of the Code of Federal Regulations is amended as follows:
PART 968--PUBLIC HOUSING MODERNIZATION
1. The authority citation for 24 CFR part 968 continues to read as
follows:
Authority: 42 U.S.C. 1437d, 1437l, and 3535(d).
2. In Sec. 968.110, paragraph (a) is revised to read as follows:
Sec. 968.110 Other program requirements.
* * * * *
(a) Nondiscrimination and equal opportunity. The PHA shall comply
with Title II of the Americans with Disabilities Act and 28 CFR part
35; section 504 of the Rehabilitation Act of 1973 and 41 CFR part 60-
471; and the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157)
and 24 CFR part 40.
* * * * *
3. Section 968.210 is revised to read as follows:
Sec. 968.210 Procedures for obtaining approval of a modernization
program.
(a) HUD notification. After modernization funds for a particular
FFY become available, HUD will notify PHAs of the time frame for
submission of the CIAP application and other pertinent information.
(b) Distribution of funding. HUD will distribute the available
funding under this subpart to every eligible PHA that responds to the
notice issued pursuant to paragraph (a) of this section based on two
equally-weighted factors: a PHA's share of the total number of units
eligible for CIAP; and a PHA's share of the total number of bedrooms in
units eligible for CIAP (with studio units counted as one-bedroom
units). HUD will also provide a vacancy preference, consisting of an
additional increment of funding, to PHAs that have modernization
capability and demonstrate that at least 25% of their units are vacant,
substandard units (where vacancies are not due to insufficient demand).
A PHA has modernization capability if it has previously received CIAP
funding and meets the requirements of Modernization capability as
defined at Sec. 968.205.
(c) ACC amendment. HUD and the PHA shall enter into an ACC
amendment in order for the PHA to draw down modernization funds. The
ACC amendment shall require low-income use of the housing for not less
than 20 years from the date of the ACC amendment (subject to sale of
homeownership units in accordance with the terms of the ACC). The PHA
Executive Director, where authorized by the Board of Commissioners and
permitted by State law, may sign the ACC amendment on behalf of the
PHA. HUD has the authority to condition an ACC amendment (e.g., to
require a PHA to hire a modernization coordinator or contract
administrator to administer its modernization program).
(d) Declaration of trust. As HUD may require, the PHA shall execute
and file for record a Declaration of Trust, as provided under the ACC,
to protect the rights and interests of HUD throughout the 20-year
period during which the PHA is obligated to operate its developments in
accordance with the ACC, the Act, and HUD regulations and requirements.
Dated: June 15, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-15737 Filed 6-22-99; 8:45 am]
BILLING CODE 4210-33-P
