[Federal Register Volume 64, Number 22 (Wednesday, February 3, 1999)]
[Rules and Regulations]
[Pages 5570-5571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2572]
[[Page 5569]]
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Part VI
Department of Housing and Urban Development
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24 CFR Part 990
Operating Fund Rule; Notice of Intent To Establish a Negotiated
Rulemaking Committee and Notice of First Meeting; Final Rule
Federal Register / Vol. 64, No. 22 / Wednesday, February 3, 1999 /
Rules and Regulations
[[Page 5570]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 990
[Docket No. FR-4425-N-01]
Operating Fund Rule; Notice of Intent To Establish a Negotiated
Rulemaking Committee and Notice of First Meeting
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of intent to establish a negotiated Rulemaking Advisory
Committee and notice of first meeting.
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SUMMARY: The Department of Housing and Urban Development (HUD) is
establishing a Negotiated Rulemaking Advisory Committee under the
Federal Advisory Committee Act. The establishment of the committee is
required by the Quality Housing and Work Opportunity Act of 1998, which
requires issuance of regulations under the Negotiated Rulemaking Act of
1990. The purpose of the Committee is to discuss and negotiate a
proposed rule that would change the current method of determining the
payment of operating subsidies to public housing agencies (PHAs). The
Committee will consist of representatives with a definable stake in the
outcome of a proposed rule. In accordance with section 564 of the
Negotiated Rulemaking Act of 1990, this notice: (1) Advises the public
of the establishment of the committee; (2) provides the public with
information regarding the committee; (3) solicits public comment on the
proposed membership of the committee; and (4) explains how persons may
be nominated for membership on the committee.
DATES: Comment due date: March 5, 1999. HUD's tentative plan is to hold
the first meeting of the Committee on March 23-March 25, 1999.
ADDRESSES: HUD plans to hold the first meeting at the Channel Inn Hotel
(Captain's Room), 650 Water Street, SW, Washington, DC 20024.
Interested persons are invited to submit comments regarding the
Committee and its proposed members to the Regulations Division, Office
of General Counsel, Room 10276, Department of Housing and Urban
Development, 431 Seventh Street, SW, Washington, DC 20410-0500.
Comments or any other communications submitted should consist of an
original and four copies and refer to the above docket number and
title. Facsimile (FAX) comments are not acceptable. The docket will be
available for public inspection and copying between 7:30 a.m. and 5:30
p.m. weekdays at the above address.
FOR FURTHER INFORMATION CONTACT: Joan DeWitt, Director, Funding and
Financial Management Division, Public and Indian Housing, Room 4216,
Department of Housing and Urban Development, 431 Seventh Street, SW,
Washington, DC 20410-0500; telephone (202) 708-1872 ext. 4035 (this
telephone numbers is not toll-free). Hearing or speech-impaired
individuals may access this number via TTY by calling the toll-free
federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
HUD currently uses a formula approach called the Performance
Funding System (PFS) to distribute operating subsidies to public
housing agencies (PHAs). A regulatory description of the PFS can be
found at 24 CFR 990. Generally, the amount of subsidy received by a PHA
is the difference between projected expenses and projected income, with
the PFS regulations detailing how these projections will be made. PHAs
calculate their PFS eligibility annually and submit a request for
funding as part of their budget process. While the amount varies, this
subsidy can represent a substantial amount of revenue to a PHA. For
example, in 1998, HUD distributed over $2.9 billion in operating
subsidies to PHAs.
On October 21, 1998, the Congress enacted the Quality Housing and
Work Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 2461,
approved October 21, 1998) (QHWRA). QHWRA makes sweeping changes to
HUD's public and assisted housing programs. These changes include the
establishment of an Operating Fund for the purpose of making assistance
available to PHAs for the operation and management of public housing.
The assistance to be made available from that fund is to be determined
using a formula developed through negotiated rule-making procedures.
The general effective date of the formula (the beginning date of the
fiscal year for which PHAs will determine their subsidy eligibility
using the new formula) is October 1, 1999. Section 519(n)(f) of QHWRA,
however, permits HUD to extend the effective date for up to six months
beyond the general effective date.
II. Regulatory Negotiation
Negotiated rulemaking, or ``neg-reg,'' is a relatively new process
for HUD. The basic concept of neg-reg is to have the agency that is
considering drafting a rule bring together representatives of affected
interests for face-to-face negotiations that are open to the public.
The give-and-take of the negotiation process is expected to foster
constructive, creative and acceptable solutions to difficult problems.
In anticipation of possible Congressional action, HUD entered into
an interagency agreement in June 1998 with the Federal Mediation and
Conciliation Service (FMCS) for convening and facilitation services
associated with a negotiated rulemaking regarding a possible operating
fund proposed rule. FMCS submitted its Convening Report in November
1998. The report concluded that it was feasible to assemble the
committee, and provided a list of individual PHAs and organizations,
representing a wide range of interests, that are willing and able to
work within a consensus framework on a new Operating Fund formula. A
copy of the Convening Report is available for review by contacting the
Regulations Division, Office of General Counsel, at the phone number
listed in the ADDRESSES section of this notice.
III. Committee Membership
The FMCS conveners consulted and interviewed over 40 officials of
various organizations that would be affected by the operating fund
rule. The goal was to develop a committee whose membership reflects a
balanced representation of interested organizations and individuals.
Three national PHA associations--the Council of Large Public Housing
Authorities (CLPHA), the National Association of Housing and Renewal
Officials (NAHRO), and the Public Housing Authority Directors
Association (PHADA) worked together to suggest executive directors of
PHAs for committee membership that would reflect the diversity of PHAs
in terms of size, location, and special circumstances. The national
associations also indicated a willingness to serve on the committee.
After reviewing the recommendations of the FMCS conveners, HUD has
tentatively identified the following list of possible interests and
parties. This list should be considered tentative, and the final list
of participants may not include all of these parties. HUD will decide
on the final list of participants, based upon comments on this Notice,
as well as its own efforts to identify other entities having an
interest in the outcome of this rulemaking.
[[Page 5571]]
Housing Agencies
1. Oakland Housing Authority, Oakland, CA
2. Indianapolis Housing Authority, Indianapolis, IN
3. Pittsburgh Housing Authority, Pittsburgh, PA
4. New York City Housing Authority, NYC, NY
5. Reno Housing Authority, Reno, NV
6. Littleton Housing Authority, Littleton, CO
7. Akron Metro Housing Authority, Akron, OH
8. Chicago Housing Authority, Chicago, IL
9. Atlanta Housing Authority, Atlanta, GA
10. Athens Housing Authority, Athens, GA
11. Puerto Rico Public Housing Authority, San Juan, PR
12. Seattle Housing Authority, Seattle, WA
13. Wilmington Housing Authority, Wilmington, DE
14. York Housing Authority, York, NE
Tenant Organizations
1. Massachusetts Union of Public Housing Tenants, Needham, MA
2. New Jersey Association of Public and Subsidized Housing Residents,
Newark, NJ
Public Interest Groups
1. National Low Income Housing Coalition, Washington, DC
2. Housing and Development Law Institute, Washington, DC
3. Center for Community Change, Washington, DC
National PHA Associations
1. Public Housing Authority Directors Association (PHADA)
2. National Association of Housing and Renewal Officials (NAHRO)
3. Council of Large Public Housing Authorities (CLPHA)
Federal Government
1. U.S. Department of Housing and Urban Development
We invite you to give us comments and suggestions on this tentative
list of committee members. We do not believe that each potentially
affected organization or individual must necessarily have its own
representative. However, we must be satisfied that the group as a whole
reflects a proper balance and mix of interests. Accordingly, the
composition of the final list will likely be different from this
tentative list. Negotiation sessions will be open to members of the
public, so individuals and organizations that are not members of the
committee may attend all sessions and communicate informally with
members of the committee.
IV. Neighborhood and Community Based Groups
In particular, HUD welcomes and solicits expressions of interest or
nominations from any groups or individuals that operate on behalf of
the communities and neighborhoods served by public housing, and
organizations that represent local officials.
V. Requests for Representation
If you are interested in serving as a member of the committee or in
nominating another person to serve as a member of the committee, you
must submit a written nomination to HUD at the address listed in the
ADDRESSES section of this notice. Your nomination for membership on the
committee must include:
(1) The name of your nominee and a description of the interests the
nominee would represent;
(2) Evidence that your nominee is authorized to represent parties
with the interests the nominee would represent;
(3) A written commitment that the nominee will actively participate
in good faith in the development of the rule; and
(4) The reasons that the parties listed in this notice do not
adequately represent your interests.
HUD will determine, in consultation with the FMCS conveners,
whether a proposed member should be included in the makeup of the
committee. HUD will make that decision based on whether a proposed
member would be significantly affected by the proposed rule and whether
the interest of the proposed member could be represented adequately by
other members.
VI. Substantive Issues for Negotiation
The subject and scope of the proposed rule to be considered is the
development of an operating fund for the purpose of making assistance
available to PHAs for the operation and management of public housing in
accordance with the criteria outlined in section 519 of QHWRA.
VII. Final Notice Regarding Committee Establishment
After reviewing any comments on this Notice and any requests for
representation, HUD will issue a final notice. That notice will
announce the final composition of the Negotiated Rulemaking Advisory
Committee and the firm date, time, and place of the initial meeting.
VIII. Tentative Schedule
At this time, HUD's tentative plan is to hold the first meeting of
the committee on March 23-March 25, 1999. On March 23, 1999, the
meeting is expected to start at 10:00 a.m. and run until completion; on
March 24, 1999, the meeting is expected to start at 9:00 a.m. and run
until completion; and on March 25, 1999, the meeting will start at 9:00
a.m. and run until approximately 3:00 p.m. We plan to hold the meeting
at the Channel Inn Hotel (Captain's Room), 650 Water Street, SW,
Washington, DC 20024. The purpose of the meeting will be to orient
members to the neg-reg process, to establish a basic set of
understandings and ground rules (protocols) regarding the process that
will be followed in seeking a consensus, and to begin to address the
issues. This meeting will be open to the public. In the event that the
date and times of these meetings are changed, HUD will advise the
public through Federal Register notice.
Decisions with respect to future meetings will be made at the first
meeting and from time to time thereafter. Notices of future meetings
will be published in the Federal Register.
Dated: January 19, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-2572 Filed 1-29-99; 4:23 pm]
BILLING CODE 4210-33-P
