[Federal Register Volume 59, Number 58 (Friday, March 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7035]
[[Page Unknown]]
[Federal Register: March 25, 1994]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Public and Indian Housing
24 CFR Parts 905 and 941
[Docket No. R-94-1690; FR-3550-F-02]
RIN 2577-AB34
Public and Indian Housing Development--Amendment to Calculation
of Total Development Cost
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule.
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SUMMARY: This rule adopts as final an interim rule, published on
November 29, 1993, which revised the Department's regulations at 24 CFR
parts 905 and 941 to remove donations (non-public or non-Indian housing
funds) from the Department's calculation of total development cost
(TDC). The Department's experience indicated that the inclusion of
donations within the TDC of projects has created unwarranted delays in
the development process, and, in some cases, has been a contributory
reason for cost increases in the low-income housing development
process.
EFFECTIVE DATE: April 25, 1994.
FOR FURTHER INFORMATION CONTACT: For Public Housing, Janice Rattley,
Director of the Office of Construction, Rehabilitation and Maintenance,
Department of Housing and Urban Development, 451 Seventh Street SW.,
room 4136, Washington, DC 20410. Telephone (202) 708-1800 (voice) or
(202) 708-4594 (TDD). (These are not toll-free numbers.)
For Indian Housing, Dom Nessi, Director, Office of Native American
Programs, Department of Housing and Urban Development, 451 Seventh
Street SW., room 4140, Washington, DC 20410. Telephone (202) 708-1015
(voice) or (202) 708-4594 (TDD). (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION:
1. The November 29, 1993 Interim Rule
On November 29, 1993 (58 FR 62522), HUD published an interim rule
to remove donations (non-public or non-Indian housing funds) from the
Department's calculation of total development cost (TDC).
Before publication of the November 29, 1993 interim rule, the
regulations for HUD's public housing development program and Indian
housing development program (codified, respectively, in 24 CFR parts
941 and 905) provided for the inclusion of donations (non-public or
non-Indian housing funds), in calculating the total development cost
(TDC). The project TDC would then be compared to the published TDC
limitations currently in effect, which could result in actual
development costs that are less than, the same as, or more than the
published TDC limitations. Under this procedure, if the project TDC
exceeded 100 percent of the published TDC limitation, notwithstanding
the reason for the increase over the TDC limitation or the source of
funding for the increase, the Field Office was unable to approve the
project TDC without authorization of the Regional Administrator or the
Assistant Secretary for Public and Indian Housing. This approval
procedure was intended to verify Field Office processing, and to ensure
that the project TDC would provide modest, non-luxury, durable housing
at a reasonable cost. In actual fact, however, the TDC approval
process, which did not take into consideration that donations may be
the reason for, or the source of payment of, the increase over the TDC
limits, resulted in unwarranted delays in the development process
because of the amount of time it takes for the request to move through
the system. In some cases, these delays were a contributory reason for
cost increases in development of public and Indian housing.
The amendments to be made by the November 29, 1993 interim rule,
and adopted in final by this rule, permit HUD Field Offices to
calculate the project TDC relative to published TDC limitations, and to
authorize housing agencies to proceed with developments, without
referral to Regional Administrators or the Assistant Secretary, where
funds in excess of TDC limits are provided through donations. Where
funds in excess of TDC limits will not be provided through donations,
Field Offices must continue to seek authorization from the Regional
Administrators or the Assistant Secretary. HUD will not provide funds
to housing agencies under section 5 of the U.S. Housing Act of 1937 in
excess of TDC limitations without such authorization.
The specific sections in 24 CFR parts 905 and 941 amended by the
November 29, 1993 interim rule, and adopted in final by this rule, are
as follows:
Sections 905.102 and 941.103 are each amended by revising the
definition of ``total development cost'' contained in these sections to
clarify that maximum total development cost excludes any donations.
Sections 905.255 and 941.204 are amended to add a new paragraph to
each section that will clarify that although donations are not included
in the project TDC calculations, donations must be included in the
project development cost budget. A new paragraph (j) has been added to
Sec. 905.255 and a new paragraph (d) has been added to Sec. 941.204.
Additionally, Sec. 905.255(a)(2) is amended to clarify that the
``inclusion of all costs'' discussed in this paragraph does not include
donations.
Additionally, Sec. 941.406 is amended to clarify that the total
project cost refers to HUD funds.
2. Public Comments
The November 29, 1993 interim rule solicited public comments
through January 28, 1994. By the expiration of the comment period, only
one comment was received. The commenter, a public housing agency,
stated that it was in full agreement with the interim rule, and
supported the amendment to HUD's regulations.
Since no other comments were received on the interim rule, and
since the Department intends to make no further changes, the Department
will adopt as its final rule the November 29, 1993 interim rule.
Other Matters
Environmental Impact
At the time of development of the November 29, 1993 interim rule, a
Finding of No Significant Impact with respect to the environment was
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. That Finding remains applicable to this final rule, and is
available for public inspection between 7:30 a.m. and 5:30 p.m.
weekdays in the Office of the Rules Docket Clerk at the above address.
Impact on Small Entities
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 will not have a
significant economic impact on a substantial number of small entities.
The rule's major effect is on housing agencies which are state and
local governmental entities. The final rule revises the manner in which
the total development cost is calculated, and in so doing, reduces
delays and costs in the development of public and Indian housing, which
is beneficial to housing agencies.
Federalism Impact
The General Counsel, as the Designated Official under section 6(a)
of Executive Order No. 12612, Federalism, has determined that this
final rule will not have a substantial, direct effect on the States or
their political subdivisions or on the relationship between the Federal
government and the States, or on the distribution of power or
responsibilities among the various levels of government. The rule
removes, rather than imposes, a program requirement.
Impact on the Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this final rule does not
have a 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 rule, as those policies and programs
relate to family concerns.
Regulatory Agenda
This rule was listed as sequence number 1650 in the Department's
Semiannual Agenda of Regulations published on October 25, 1993 (58 FR
56402, 56451) under Executive Order 12291 and the Regulatory
Flexibility Act.
Catalog of Federal Domestic Assistance Program
The Catalog of Federal Domestic Assistance Program title and number
is 14.850, Public and Indian Housing.
List of Subjects
24 CFR Part 905
Aged, Energy conservation, Grant programs--housing and community
development, Grant programs--Indians, Indians, Individuals with
disabilities, Lead poisoning, Loan programs--housing and community
development, Loan programs--Indians, Low and moderate income housing,
Public housing, Reporting and recordkeeping requirements.
24 CFR Part 941
Grant programs--housing and community development, Loan programs--
housing and community development, Public housing.
Accordingly, the Department adopts as final and without change, the
interim rule published on November 29, 1993 (58 FR 62522) that amended
24 CFR parts 905 and 941.
Dated: March 16, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 94-7035 Filed 3-24-94; 8:45 am]
BILLING CODE 4210-33-P
