[Federal Register Volume 61, Number 31 (Wednesday, February 14, 1996)]
[Rules and Regulations]
[Pages 5850-5852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3275]
[[Page 5849]]
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Part IV
Department of Housing and Urban Development
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24 CFR Part 882
Section 8 Moderate Rehabilitation Single Room Occupancy Program for
Homeless Individuals; Rule
Federal Register / Vol. 61, No. 31 / Wednesday, February 14, 1996 /
Rules and Regulations
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[[Page 5850]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Community Planning and
Development
24 CFR Part 882
[Docket No. FR-3929-I-01]
RIN 2506-AB75
Section 8 Moderate Rehabilitation Single Room Occupancy Program
for Homeless Individuals; Amendments
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule amends HUD's regulations for the Section 8
Moderate Rehabilitation Single Room Occupancy Program for Homeless
Individuals at 24 CFR part 882, subpart H. These amendments conform the
program regulations with statutory and regulatory changes. The
amendments will clarify and update the regulations according to current
requirements.
DATES: Effective date: March 15, 1996. Comments due date: April 15,
1996.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim rule to the Office of General Counsel, Rules Docket Clerk,
Room 10276, Department of Housing and Urban Development, 451 Seventh
Street SW., Washington, DC 20410-0500. Communications should refer to
the above docket number and title. A copy of each communication
submitted will be available for public inspection and copying on
weekdays between 7:30 a.m. and 5:30 p.m. at the above address. Comments
sent by FAX are not acceptable.
FOR FURTHER INFORMATION CONTACT: Maggie H. Taylor, Director, Office of
Special Needs Assistance Programs, Department of Housing and Urban
Development, 451 Seventh Street, SW, Washington, DC 20410; (202) 708-
4300; TTY for persons who are deaf, hard-of-hearing, or who have speech
impairments (202) 708-2565. (Telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
Background
This interim rule makes several changes to conform the Section 8
Moderate Rehabilitation Single Room Occupancy (SRO) program regulations
with statutory and regulatory changes. First, this interim rule
eliminates the remaining provisions on the required use of housing
authority (HA) waiting lists. In an interim rule published on March 15,
1993 (58 FR 13828), HUD conformed the process for selecting homeless
persons for participation in the SRO program with the process used in
HUD's other homeless programs. In place of the HA waiting list process,
the interim rule required that HAs and/or Owners engage in outreach
efforts to bring homeless individuals into the program, and that vacant
units be rented directly to homeless individuals located through these
outreach efforts. This interim rule deletes the remaining references to
HA waiting lists that HUD inadvertently overlooked. This interim rule
also clarifies the role of HAs in helping to identify homeless
individuals during the outreach process (Sec. 882.808(a)(1)).
Second, this interim rule conforms the program regulations with
section 1405 of the Housing and Community Development Act of 1992 (Pub.
L. 102-550, approved October 28, 1992), which amended the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11401). This statutory
amendment includes a requirement for the participation of homeless
individuals in considering and making policies and decisions regarding
rehabilitation of structures receiving assistance under this program,
and for the involvement of homeless individuals in the rehabilitation
and operation of these structures. This interim rule implements the
requirement at Sec. 882.808(q).
The statutory amendment also requires a formal process for
terminating assistance to individuals who violate program requirements.
HUD has determined that the existing requirements for the termination
of tenancy at Sec. 882.808(l) sufficiently protect the rights of
homeless individuals and should serve to prevent abuses such as lack of
notice. Therefore, no change to the regulations is necessary to
implement the requirement. (Note: This interim rule does not change the
lawful grounds for terminating assistance. Termination of assistance
due to unwillingness to accept supportive services or other activities
that do not of themselves constitute a violation of the housing lease
are not allowed.)
The statutory amendment further provides that private nonprofit
organizations can apply directly for SRO assistance. Prior to the
amendments, the only eligible applicants under the program were public
housing agencies and Indian housing authorities. To implement this
change, the interim rule adds definitions of ``applicant'' and
``private nonprofit organization'' at Sec. 882.802. This revised
section further provides that HUD will require private nonprofit
applicants to subcontract with public housing agencies to administer
their rental assistance.
Third, this interim rule conforms the program regulations with the
environmental review procedures in 24 CFR part 58. The Multifamily
Housing Property Disposition Reform Act of 1994 (Pub. L. 103-233,
approved April 11, 1994) made these procedures applicable to the
Section 8 Moderate Rehabilitation SRO program, and HUD published
implementing regulations in the Federal Register on March 13, 1995 (60
FR 13518). Under part 58, it is the HA's responsibility to obtain an
agreement with the responsible entity designated under part 58 for the
performance of environmental reviews.
Fourth, this interim rule revises the provision on project
eligibility at Sec. 882.803(a)(2). This interim rule will provide that
housing is ineligible for assistance under this program if it is
receiving Federal funding for rental assistance or operating costs
under other HUD programs. The current regulation provides that housing
is not eligible for assistance if it is, or has been within 12 months
before the Owner submits a proposal, subsidized under any Federal
housing program. A number of nonprofit organizations and PHAs have
requested clarification of the term ``subsidized,'' and have indicated
that the 12-month restriction eliminates a number of otherwise
excellent facilities from consideration for SRO assistance. In response
to these comments, HUD is revising this provision by adopting the
clearer, less restrictive standard used in its Shelter Plus Care
program. Under the revised standard, there is no restriction on the use
of other Federal funding for acquisition and rehabilitation costs.
Fifth, this interim rule eliminates an obsolete date reference in
the provisions for determining the maximum amount of rehabilitation
allowable in the program. Although Sec. 882.805(g)(1)(ii)(A) provides
that the rehabilitation cost calculation should use the HUD-approved
High Cost Percentage for Base Cities in use before April 1988, HUD
recalculates this percentage periodically. Therefore, this interim rule
will eliminate the date reference so that a more recent percentage can
be used.
Finally, this interim rule corrects an error in a final rule
published in the Federal Register on June 6, 1994 (59 FR 29326). That
rule, which conformed HUD's regulations with the requirements of the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended, and its implementing regulations at 49 CFR
part 24, added
[[Page 5851]]
Sec. 882.810 and intended to remove much of Sec. 882.803(d). However,
the most recent codification of part 882 (April 1, 1995) included both
Sec. 882.810 and Sec. 882.803(d) in its entirety. Therefore, in order
to correct the error, this rule removes much of Sec. 882.803(d).
Justification for Interim Rulemaking
HUD generally publishes a rule for public comment before issuing a
rule for effect, in accordance with its regulations on rulemaking at 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). With this interim
rule, HUD is merely correcting several minor oversights and conforming
the SRO regulations to statutory or regulatory provisions that are
already effective. Therefore, HUD finds that prior public procedure
would be unnecessary. However, HUD is inviting public comments for 60
days, after which it will consider the relevant issues raised by the
commenters in developing a final rule.
Other Matters
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 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 is available for public
inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of
the Rules Docket Clerk, Office of the General Counsel, Department of
Housing and Urban Development, Room 10276, 451 Seventh Street SW,
Washington, DC 20410.
Executive Order 12606, The Family
The General Counsel, as the designated official under Executive
Order 12606, The Family, has determined that this interim rule does not
have potential for significant impact on family formation, maintenance,
and general well-being. To the extent that this interim rule benefits
homeless individuals, it would benefit the families of such
individuals. Since any effect of the interim rule would be beneficial,
this interim rule is not subject to review under the Order.
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
in this interim rule will not have substantial direct effects 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. This interim
rule is limited to conforming the regulations with statutory and
regulatory requirements. Therefore the interim rule is not subject to
review under the Order.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this interim rule before publication and
by approving it certifies that this interim rule does not have a
significant economic impact on a substantial number of small entities.
Specifically, the interim rule is limited to making conforming changes
to the program regulations.
List of Subjects in 24 CFR Part 882
Grant programs--housing and community development, Homeless, Lead
poisoning, Manufactured homes, Rent subsidies, Reporting and
recordkeeping requirements.
Accordingly, 24 CFR part 882 is amended as follows:
PART 882--SECTION 8 CERTIFICATE AND MODERATE REHABILITATION
PROGRAMS
1. The authority citation for part 882 continues to read as
follows:
Authority: 42 U.S.C. 1437f and 3535(d).
2. Section 882.802 is amended by adding definitions for the terms
``applicant'' and ``private nonprofit organization'' in alphabetical
order, to read as follows:
Sec. 882.802 Definitions.
* * * * *
Applicant. A public housing agency or Indian housing authority
(collectively referred to as housing agencies or HAs), or a private
nonprofit organization that applies for assistance under this program.
HUD will require private nonprofit applicants to subcontract with
public housing agencies to administer their rental assistance.
* * * * *
Private nonprofit organization. An organization, no part of the net
earnings of which inures to the benefit of any member, founder,
contributor, or individual. The organization must:
(1) Have a voluntary board;
(2) Have a functioning accounting system that is operated in
accordance with generally accepted accounting principles, or designate
an entity that will maintain a functioning accounting system for the
organization in accordance with generally accepted accounting
principles; and
(3) Practice nondiscrimination in the provision of assistance.
* * * * *
3. Section 882.803 is amended by revising paragraphs (a)(2) and (d)
to read as follows:
Sec. 882.803 Project eligibility and other requirements.
(a) * * *
(2) Housing is not eligible for assistance under this program if it
is receiving Federal funding for rental assistance or operating costs
under other HUD programs.
* * * * *
(d) Relocation. A project assisted under this subpart H is subject
to the requirements of Sec. 882.810.
* * * * *
4. Section 882.804 is amended by revising paragraph (d) to read as
follows:
Sec. 882.804 Other Federal requirements.
* * * * *
(d) The environmental review requirements of 24 CFR part 58,
implementing the National Environmental Policy Act and related
environmental laws and authorities listed in 24 CFR 58.5, are
applicable to this program.
5. Section 882.805 is amended by removing and reserving paragraph
(d), and by revising paragraph (g)(1)(ii)(A) to read as follows:
Sec. 882.805 PHA application process, HUD review and selection, ACC
execution, and pre-rehabilitation activities.
* * * * *
(d) [Reserved]
* * * * *
(g) * * *
(1) * * *
(ii) * * *
(A) HUD may approve a higher per unit amount up to, but not to
exceed, an amount computed by multiplying the HUD-approved High Cost
Percentage for Base Cities (used for computing FHA high cost area
adjustments) for the area, by the current published cost limitation
plus the cost of the required fire and safety improvements.
* * * * *
6. Section 882.808 is amended by:
a. Revising paragraph (a)(1);
b. Removing paragraphs (a)(3), (b)(2), and (b)(4);
c. Redesignating paragraph (a)(4) as paragraph (a)(3) and revising
it;
d. Redesignating paragraph (b)(3) as paragraph (b)(2);
e. Redesignating paragraphs (b)(5) through (b)(7) as paragraphs
(b)(3) through (b)(5), respectively; and
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f. Adding a new paragraph (q), to read as follows:
Sec. 882.808 Management.
(a) Outreach to homeless individuals and appropriate organizations.
(1) The HA or the Owner shall undertake outreach efforts to homeless
individuals so that they may be brought into the program. The outreach
effort should include notification to emergency shelter providers and
other organizations that could provide referrals of homeless
individuals. In cases where the owner conducts the outreach effort, the
HA shall be notified so that it may provide referrals of homeless
individuals.
* * * * *
(3) First priority for homeless individuals. Homeless individuals
shall have a first priority for occupancy of housing rehabilitated
under this program.
* * * * *
(q) Participation of homeless individuals. (1) Each approved
applicant receiving assistance under this program, except HAs, shall
provide for the participation of not less than one homeless individual
or formerly homeless individual on the board of directors or other
equivalent policymaking entity of such applicant, to the extent that
the entity considers and makes policies and decisions regarding the
rehabilitation of any housing with assistance under this subpart. This
requirement is waived if the applicant is unable to meet this
requirement and presents a plan that HUD approves to consult with
homeless or formerly homeless individuals in considering and making
such policies and decisions.
(2) To the maximum extent practicable, each approved applicant must
involve homeless individuals and families, through employment,
volunteer services, or otherwise, in rehabilitating and operating
facilities assisted under this subpart, and in providing services for
occupants of such facilities.
Dated: January 18, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-3275 Filed 2-13-96; 8:45 am]
BILLING CODE 4210-29-P
