[Federal Register Volume 61, Number 239 (Wednesday, December 11, 1996)]
[Proposed Rules]
[Pages 65298-65299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31307]
[[Page 65297]]
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Part III
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 92
HOME Investment Partnerships Program; Additional Streamlining; Proposed
Rule
Federal Register / Vol. 61, No. 239 / Wednesday, December 11, 1996 /
Proposed Rules
[[Page 65298]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 92
[Docket No. FR-4111-P-01]
RIN 2501-AC30
HOME Investment Partnerships Program--Additional Streamlining
AGENCY: Office of the Secretary, HUD.
ACTION: Proposed rule.
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SUMMARY: This rule proposes to streamline the HOME Program regulation
by: replacing the hearing procedures of the current HOME rule with the
Department-wide streamlined hearing procedures; removing the closeout
requirements and instead providing that HOME funds will be closed out
in accordance with procedures established by HUD; and replacing the
extensive requirements for the competitive reallocation of HOME funds
with a citation to the selection factors in the HOME statute and a
statement of the maximum number of points that may be awarded for each
factor. In addition, this rule invites comment on establishing a
separate market interest rate formula for rehabilitation loans.
DATES: Comment due date: February 10, 1997.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule to the Rules Docket Clerk, Office of General
Counsel, Room 10278, Department of Housing and Urban Development, 451
Seventh Street, SW, Washington, DC 20410. Communications should refer
to the above docket number and title. A copy of each communication
submitted will be available for public inspection and copying between
7:30 a.m. and 5:30 p.m. weekdays at the above address. FAXED comments
will not be accepted.
FOR FURTHER INFORMATION CONTACT: Mary Kolesar, Director, Program Policy
Division, Office of Affordable Housing Programs, Room 7162, 451 Seventh
Street SW., Washington, DC 20410, telephone (202) 708-2470 (this is not
a toll-free number). A telecommunications device for hearing- and
speech-impaired persons (TTY) is available at 1-800-877-8339 (Federal
Information Relay Service).
SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a
memorandum to all Federal departments and agencies regarding regulatory
reinvention. In response to this memorandum, the Department of Housing
and Urban Development conducted a page-by-page review of its
regulations to determine which can be eliminated, consolidated, or
otherwise improved. HUD has determined that the regulations for the
HOME Investment Partnerships Program can be improved and streamlined by
eliminating unnecessary provisions.
As a part of HUD's regulatory reinvention initiative, this rule
proposes three streamlining changes to, and a change to the market rate
formula in, the HOME regulation at 24 CFR part 92.
For the first streamlining change, HUD proposes to replace the
requirements for the competitive reallocation of HOME funds in
Sec. 92.453, which largely repeat the HOME statute at section 217(c) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(c)), with a citation to the selection criteria in the statute;
the maximum number of points that may be awarded for each category of
criteria (policies, actions, commitment), as is done in the current
regulation; and a statement that such requirements will be published in
a Notice of Funding Availability (NOFA) in accordance with the
requirements of the HUD Reform Act as funds become available.
Second, this rule proposes to remove the closeout requirements
specified in Sec. 92.507 and instead provide that, ``HOME funds will be
closed out in accordance with procedures established by HUD.''
Third and last, this rule would replace the hearing procedures in
Sec. 92.552 of the current HOME rule with the Department-wide,
streamlined, hearing procedures of 24 CFR part 26 published as a final
rule on September 24, 1996 (61 FR 50208).
The changes described above are consistent with the general
reinvention goals of streamlining the requirements of HUD's funding
programs and maximizing their administrative flexibility. For example,
removing the current rigid and burdensome closeout requirements permits
the Department to simplify the closeout process and administer it on
the basis of the reports and other monitoring information it receives.
In addition, every recipient of HUD funding and the Department itself
would benefit from the adoption of uniform hearings procedures that
would apply to all HUD programs.
The Department is considering making one additional change to the
HOME program besides the three described above. The HOME rule currently
requires a participating jurisdiction (PJ) wishing to claim match
credit for the value of below-market interest rate loans to calculate
the yield foregone based upon the difference between the actual
interest rate charged and the market interest rate established at
Sec. 92.220(a)(1)(iii)(B). The Department established the formula for
determining the market interest rate for various types of projects
based on assumptions involving first mortgage financing.
In the course of administering the program, the Department has
received comments asserting that this method undervalues the match
contribution of below-market interest rate financing for rehabilitation
loans. HUD recognizes that loans for rehabilitation, whether for home
improvements or renovation of rental housing, typically carry higher
market interest rates than first mortgage financing for comparable
projects. Consequently, the Department is considering amending
Sec. 92.220(a)(1)(iii)(B) to establish a separate market interest rate
formula for rehabilitation loans. The Department is soliciting comments
on this proposed change. Specifically, comment is requested on the
formula to be used to establish this rate and whether separate rates
for the type or tenure of housing would be appropriate.
Findings and Certifications
Paperwork Reduction Act
The information collection requirements for the HOME Investment
Partnerships Program have been approved by the Office of Management and
Budget, under section 3504(h) of the Paperwork Reduction Act of 1980
(44 U.S.C. 3501-3520), and assigned OMB control number 2501-0013. This
proposed rule does not contain additional information collection
requirements.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 establishes
requirements for Federal agencies to assess the effects of their
regulatory actions on State, local, and tribal governments and the
private sector. This rule does not impose any Federal mandates on any
State, local or tribal governments or the private sector within the
meaning of the Unfunded Mandates Reform Act of 1995.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations in 24 CFR part 50,
which implement Section 102(2)(C) of the National Environmental Policy
Act of 1969, 42 U.S.C. 4332. The Finding of No Significant Impact is
available for public inspection and copying between 7:30 a.m. and 5:30
p.m. weekdays in the
[[Page 65299]]
Office of the Rules Docket Clerk, Room 10276, 451 Seventh Street, SW,
Washington, D.C. 20410.
Impact on Small Entities
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)) 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, because jurisdictions that are
statutorily eligible to receive formula allocations are relatively
larger cities, counties or States. In addition, this rule only proposes
to streamline regulations by removing unnecessary provisions. The rule
will have no adverse or disproportionate economic impact on small
businesses.
Federalism Impact
The General Counsel has determined, as the Designated Official for
HUD under section 6(a) of Executive Order 12612, Federalism, that this
rule does not have federalism implications concerning the division of
local, State, and federal responsibilities. While the HOME Program
interim rule was determined to be a rule with federalism implications
and the Department submitted a Federalism Assessment concerning the
interim rule to OMB, this proposed rule would only make limited
adjustments to the interim rule and does not significantly affect any
of the factors considered in the Federalism Assessment for the interim
rule.
Impact on the Family
The General Counsel, as the designated official under Executive
Order 12606, The Family, has determined that this rule would not have
significant impact on family formation, maintenance, and general well-
being. Assistance provided under this rule can be expected to support
family values, by helping families achieve security and independence;
by enabling them to live in decent, safe, and sanitary housing; and by
giving them the means to live independently in mainstream American
society. This rule would not, however, affect the institution of the
family, which is requisite to coverage by the Order.
The Catalog of Federal Domestic Assistance Number for the HOME
Program is 14.239.
List of Subjects in 24 CFR Part 92
Grant programs--housing and community development, Manufactured
homes, Rent subsidies, Reporting and recordkeeping requirements.
Accordingly, part 92 of title 24 of the Code of Federal Regulations
would be amended to read as follows:
PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM
1. The authority citation for part 92 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 12701-12839.
2. Section 92.453 is revised to read as follows:
Sec. 92.453 Competitive reallocations.
(a) HUD will invite applications through Federal Register
publication of a Notice of Funding Availability (NOFA), in accordance
with section 102 of the Department of Housing and Urban Development
Reform Act of 1989 (42 U.S.C. 3545) and the requirements of sec. 217(c)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(c)), for HOME funds that become available for competitive
reallocation under Sec. 92.451 or Sec. 92.452, or both. The NOFA will
describe the application requirements and procedures, including the
total funding available for the competition and any maximum amount of
individual awards. The NOFA will also describe the selection criteria
and any special factors to be evaluated in awarding points under the
selection criteria.
(b) The NOFA will include the selection criteria at sec. 217(c) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(c)), with the following maximum number of points awarded for each
category of criteria:
(1) Commitment. Up to 25 points for the criteria at sec. 217(c)(1)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(c)(1));
(2) Actions. Up to 50 points for the criteria at sec. 217(c)(2) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(c)(2)); and
(3) Policies. Up to 25 points for the criteria at sec. 217(c)(3) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(c)(3)).
3. Section 92.507 is revised to read as follows:
Sec. 92.507 Closeout.
HOME funds will be closed out in accordance with procedures
established by HUD.
4. In Sec. 92.552, paragraph (b) is revised to read as follows:
Sec. 92.552 Notice and opportunity for hearing; sanctions.
* * * * *
(b) Proceedings. When HUD proposes to take action pursuant to this
section, the respondent in the proceedings will be the participating
jurisdiction or, at HUD's option, the State recipient. Proceedings will
be conducted in accordance with 24 CFR part 26.
Dated: October 31, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-31307 Filed 12-10-96; 8:45 am]
BILLING CODE 4210-32-P
