[Federal Register Volume 60, Number 219 (Tuesday, November 14, 1995)]
[Rules and Regulations]
[Pages 57304-57305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28033]
[[Page 57303]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Parts 950 and 990
Public and Indian Housing; Performance Funding System: Unit Months
Available; Final Rule
Federal Register / Vol. 60, No. 219 / Tuesday, November 14, 1995 /
Rules and Regulations
[[Page 57304]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Public and Indian Housing
24 CFR Parts 950 and 990
[Docket No. FR-3747-F-02]
RIN 2577-AB49
Performance Funding System: Unit Months Available
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule.
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SUMMARY: The Department is revising the Performance Funding System to
permit payment of operating subsidies for scattered-site units as they
become occupied.
EFFECTIVE DATE: December 14, 1995.
FOR FURTHER INFORMATION CONTACT: Mr. John T. Comerford, Director,
Financial Management Division, Office of Management Operations, Public
and Indian Housing, Room 4212, Department of Housing and Urban
Development, 451 Seventh Street SW., Washington, DC 20410, telephone
(202) 708-1872; or with respect to the Indian Housing programs, Ms.
Joann A. Teiken, Financial Management Specialist, Office of Native
American Programs, Public and Indian Housing, Room B-133, Department of
Housing and Urban Development, 451 Seventh Street SW., Washington, DC
20410, telephone (202) 708-2980. Hearing or speech impaired individuals
may call HUD's TDD number, (202) 708-0850. (These telephone numbers are
not toll-free.)
SUPPLEMENTARY INFORMATION: On May 9, 1995 (60 FR 24597), the Department
published a proposed rule which would revise the definition of unit
months available (Secs. 950.102 and 990.102) and provide an explanation
of the alternate method for calculating unit months available upon
acquisition of units in a scattered-site project (Secs. 950.705 and
990.104(b)). The change in procedure would be applicable to scattered-
site developments acquired by Indian Housing Authorities.
Only five public comments were received. All supported the
Department's proposed rule. However, one commenter requested a
clarification of the regulatory reference to amending the Development
Cost Budget to reflect units occupied in the previous six months. The
commenter asked: ``Does the PHA claim the unit months available through
an amendment every six months until all units are occupied, do we
project the occupancy when the annual budget is proposed or can this be
a year-end adjustment item?''
The Department will not permit revisions to the Department Cost
Budget or to the calculation of operating subsidy based on projections.
The regulations state that the development budget revision will reflect
the number of units that were occupied and that subsidy shall be
revised to include units that are actually occupied. The reference to
previous six months in the regulations is intended to ensure that
revisions are not processed more often than once every six months. The
rule does not require housing authorities to request these revisions
and the Department would certainly allow housing agencies to submit a
revision that reflects activity for the previous twelve months at the
end of the year.
Findings and Certifications
Environmental Impact
The subject matter of this final rule is categorically excluded
from HUD's environmental clearance procedures under 24 CFR 50.20(k). It
relates to internal administrative procedures whose content does not
constitute a development decision or affect the physical condition of
project areas or building sites.
Executive Order 12866
The Office of Management and Budget reviewed this final rule under
Executive Order 12866, Regulatory Planning and Review. Any changes made
to the rule as a result of that review are clearly identified in the
docket file, which is available for public inspection at the Office of
General Counsel, room 10276, Department and Housing and Urban
Development, 451 Seventh Street SW., Washington, DC 20410-0500.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this final rule before publication and by
approving it certifies that this final rule does not have a significant
economic impact on substantial number of small entities. The final rule
will recognize that homes that are part of scattered-site developments
become ready for occupancy at varying times, and removes a potential
penalty to housing authorities who would otherwise have to wait for all
units in a scattered-site development to be occupied before they can
receive subsidy.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this final rule would not have federalism implications
and, thus, are not subject to review under the Order. The final rule
refines an established formula under which HUD calculates operating
subsidies for low-income housing developments, but contains no
requirement for explicit action by local officials and does not
interfere with State or local governmental functions.
Executive Order 12606
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this final rule does not
have potential significant impact on family formation, maintenance, and
general well-being, and, thus, is not subject to review under the
Order. No significant change in existing HUD policies or programs will
result from promulgation of this final rule, as those policies and
programs relate to family concerns.
The Catalog of Federal Domestic Assistance number is 14.850.
List of Subjects
24 CFR Part 950
Aged, Grant programs--housing and community development, Grant
programs--Indians, Indians, Individuals with disabilities, Low and
moderate income housing, Public housing, Reporting and recordkeeping
requirements.
24 CFR Part 990
Grant programs--housing and community development, Public housing,
Reporting and recordkeeping requirements.
Accordingly, in title 24 of the Code of Federal Regulations, parts
950 and 990 are amended, as follows:
PART 950--INDIAN HOUSING PROGRAMS
1. The authority citation for part 950 continues to read as
follows:
Authority: 25 U.S.C. 450e(b), 1437aa-1437ee, and 3535(d).
2. Section 950.102 is amended by revising the definition of ``Unit
months available'' to read as follows:
Sec. 950.102 Definitions.
* * * * *
Unit months available. Units multiplied by the number of months the
project units are available for occupancy during a given IHA fiscal
year. See also Sec. 950.705(b).
* * * * *
[[Page 57305]]
3. The existing text in Sec. 950.705 is redesignated as paragraph
(a), and a new paragraph (b) is added, to read as follows:
Sec. 950.705 Determination of amount of operating subsidy under PFS.
* * * * *
(b) For purposes of this part, a unit is considered available for
occupancy from the date on which the End of Initial Operating Period
(EIOP) is established for the project with which it is asso- ciated
until the time it is approved by HUD for deprogramming and is vacated
or is approved for non-dwelling use, except that, on or after July 1,
1991, a unit shall not be considered available for occupancy in any IHA
Requested Budget Year if the unit is located in a vacant building in a
project that HUD has determined to be nonviable. In the case of an IHA
development involving the acquisition of scattered site housing, the
IHA may submit, and HUD shall review and can approve, a revised
Development Cost Budget reflecting the number of units that were
occupied during the previous six months, and the Unit Months Available
used in the calculation of operating subsidy eligibility shall be
revised to include the number of months the new/acquired units are
actually occupied.
PART 990--ANNUAL CONTRIBUTIONS FOR OPERATING SUBSIDY
4. The authority citation for part 990 continues to read as
follows:
Authority: 42 U.S.C. 1437g and 3535(d).
5. Section 990.102 is amended by revising the definition of ``Unit
Months Available'', to read as follows:
Sec. 990.102 Definitions.
* * * * *
Unit months available. Units multiplied by the number of months the
project units are available for occupancy during a given PHA fiscal
year. See also Sec. 990.104(b).
* * * * *
6. In Sec. 990.104, paragraph (b) is revised, to read as follows:
Sec. 990.104 Determination of amount of operating subsidy under PFS.
* * * * *
(b) For purposes of this part, a unit is considered available for
occupancy from the date on which the End of Initial Operating Period
(EIOP) is established for the project with which it is associated until
the time it is approved by HUD for deprogramming and is vacated or is
approved for non-dwelling use, except that, on or after July 1, 1991, a
unit shall not be considered available for occupancy in any PHA
Requested Budget Year if the unit is located in a vacant building in a
project that HUD has determined to be nonviable. In the case of a PHA
development involving the acquisition of scattered site housing, the
PHA may submit, and HUD shall review and can approve, a revised
Development Cost Budget reflecting the number of units that were
occupied during the previous six months, and the Unit Months Available
used in the calculation of operating subsidy eligibility shall be
revised to include the number of months the new/acquired units are
actually occupied.
Dated: August 30, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-28033 Filed 11-13-95; 8:45 am]
BILLING CODE 4210-33-P
