[Federal Register Volume 61, Number 20 (Tuesday, January 30, 1996)]
[Notices]
[Pages 3047-3048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1630]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Assistant Secretary for Housing--Federal Housing Commissioner
[Docket No. FR-3995-N-01]
Notice of Impact of Rescissions Act on Section 202 Supportive
Housing for the Elderly Program and Section 811 Supportive Housing for
Persons With Disabilities Program
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice of Impact of Rescissions Act on the Section 202
Supportive Housing for the Elderly Program and Section 811 Supportive
Housing for Persons with Disabilities Program.
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SUMMARY: The Fiscal Year (FY) 1995 Rescissions Act rescinded, among
other amounts appropriated for HUD in FY 1995, $1.115 billion from the
assisted housing account. The Act authorized the Secretary to take
several actions to realize the $1.115 billion savings, including
waiving provisions of Section 202 of the Housing Act of 1959 and
Section 811 of the National Affordable Housing Act, including the
provisions governing the terms and conditions of project rental
assistance. This notice advises the public of the impact of these
rescissions on the Supportive Housing for the Elderly and the
Supportive Housing for Persons with Disabilities Programs, including
those projects selected in response to the FY 1995 Notices of Fund
Availability for these programs.
EFFECTIVE DATE: January 30, 1996.
FOR FURTHER INFORMATION CONTACT: Aretha M. Williams, Office of Elderly
and Assisted Housing, Department of Housing and Urban Development, 451
Seventh Street S.W., Room 6120, Washington, DC 20410, telephone (202)
708-2866; (TDD) (202) 708-4594. (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION: The Emergency Supplemental Appropriations
for Additional Disaster Assistance, for Anti-Terrorism Initiatives, for
Assistance in the Recovery from the Tragedy that Occurred at Oklahoma
City, and Rescissions Act, 1995 (Pub. L. 104-19; approved July 27,
1995) (the FY 1995
[[Page 3048]]
Rescissions Act) provides in relevant part that:
``[I]n allocating this $1,115,000,000 rescission, the Secretary
may reduce the appropriations needs of the Department by (1) waiving
any provision of section 202 of the Housing Act of 1959 and section
811 of the National Affordable Housing Act (including the provisions
governing the terms and conditions of project rental assistance)
that the Secretary determines is not necessary to achieve the
objectives of these programs, or that otherwise impedes the ability
to develop, operate or administer projects assisted under these
programs, and may make provision for alternative conditions or terms
where appropriate * * * .''
The Department has identified the following provisions that
affected the procedures for calculating the amount of project rental
assistance contract (PRAC) funds reserved for Section 202 and 811
projects funded in FY 1993, 1994, and 1995, as well as to reduce the
term for reserving PRAC funds and to waive certain statutory and
regulatory provisions for Section 202 and 811 projects funded in FY
1995.
I. Projects Funded in Fiscal Years 1993 and 1994
A Memorandum from Assistant Secretary for Housing--Federal Housing
Commissioner Retsinas dated August 28, 1995 notified State and Area
Offices that all Section 202 and Section 811 projects funded in FY 1993
and 1994 that had not yet reached initial closing must include an
Addendum to the Agreement to Enter into the Project Rental Assistance
Contract (Forms HUD-90172-A-CA and HUD-90172-B-CA) at the time of
initial closing. The Addendum, which had to be signed by both HUD and
the Owner, alerted the Owner of HUD's right to reduce the PRAC reserved
for the project at a later time.
By instructions to the HUD offices, the PRAC funds reserved for
projects funded in FY 1993 and 1994, which either had not gone to
initial closing or had the Addendum described above as an attachment to
their Agreement to Enter into the PRAC, were reduced by an amount
equivalent to the anticipated tenant contributions. Based on a review
of the average tenant contributions to rent and the average project
operating expenses, tenants on the average contribute at least 25
percent of the projects' operating expenses. Therefore, the PRAC funds
were calculated at 75 percent of the estimated project's total
operating expenses, thereby reducing the PRAC reserved funds by 25
percent.
II. Projects Funded in Fiscal Year 1995
A. For projects funded in FY 1995, PRAC funds were reserved at 75
percent of the estimated project's total operating expenses to take
into consideration estimated tenant contributions.
B. In addition to the above, based on the authorization in the FY
1995 Rescissions Act, the Secretary is hereby waiving the following
statutory and regulatory provisions:
1. Reducing the Term of the PRAC From 20 to 5 Years
Consequently, for all projects selected in FY 1995, project rental
assistance funds were only reserved initially for five years. The
Department anticipates that at the end of the five-year period,
renewals will be approved depending upon the availability of funds.
2. Extending Income Eligibility for Admission to Lower Income
Households
Currently, eligible residents' income cannot exceed 50 percent of
the median. A waiver of this provision extends the eligibility of
elderly persons and persons with disabilities to persons with incomes
up to 80 percent of median. These individuals, whether their incomes
are up to 50 percent or 80 percent of median, must be admitted to
occupancy on a first-come, first-served basis in accordance with fair
housing requirements.
3. Waiving the Federal Preferences for Admission
Waiving this provision permits project owners to admit to occupancy
eligible residents without regard to Federal preferences. However,
local preferences will still be allowed in accordance with HUD
regulations. Project owners must still ensure that applicants for
housing are selected for occupancy in a fair and equitable manner.
Dated: January 19, 1996.
Stephanie A. Smith,
Acting General Deputy Assistant Secretary for Housing--Federal Housing
Commissioner.
[FR Doc. 96-1630 Filed 1-29-96; 8:45 am]
BILLING CODE 4210-27-P
