99-8030. Indian Housing Block Grant Program: Notice of Revision to Transition RequirementsProceeds of Sales of Former 1937 Act Homeownership Units  

  • [Federal Register Volume 64, Number 62 (Thursday, April 1, 1999)]
    [Notices]
    [Pages 15778-15779]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-8030]
    
    
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    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    
    [Docket No. FR-4170-N-19]
    RIN 2577-AB74
    
    
    Indian Housing Block Grant Program: Notice of Revision to 
    Transition Requirements--Proceeds of Sales of Former 1937 Act 
    Homeownership Units
    
    AGENCY: Office of the Assistant Secretary for Public and Indian 
    Housing, HUD.
    
    ACTION: Notice of revised transition requirements--proceeds of sales of 
    former 1937 Act homeownership units.
    
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    SUMMARY: This notice provides additional and updated guidance relating 
    to the sale of homeownership units and to cash management and 
    investment policies and procedures. The purpose of this guidance is to 
    facilitate the smooth transition from procedures and resources under 
    the United States Housing Act of 1937 (1937 Act) to those under the 
    Indian Housing Block Grant (IHBG) Program.
    
    DATES: These transition requirements are effective upon publication.
    
    FOR FURTHER INFORMATION CONTACT: Deborah M. Lalancette, National Office 
    of Native American Programs, Department of Housing and Urban
    
    [[Page 15779]]
    
    Development, 1999 Broadway, Suite 3390, Denver, CO; telephone (303) 
    675-1600 (this is not a toll-free number). 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
    
        The Native American Housing Assistance and Self-Determination Act 
    of 1996 (25 U.S.C. 4101 et seq.) (NAHASDA) was enacted on October 26, 
    1996, and took effect on October 1, 1997. NAHASDA requires HUD to make 
    grants on behalf of Indian tribes to carry out affordable housing 
    activities. A final rule to implement NAHASDA and establish the IHBG 
    Program was published on March 12, 1998, (63 FR 12334), with an 
    effective date of April 13, 1998.
        NAHASDA also required the publication of a notice in the Federal 
    Register to establish any requirements necessary for the transition 
    from the provision of assistance for Indian tribes and Indian housing 
    authorities under the 1937 Act and other related provisions of law to 
    the provision of assistance in accordance with NAHASDA. An initial 
    transition notice was published on January 27, 1997 (62 FR 3972), with 
    revisions published on February 24, 1997 (62 FR 8258), January 27, 1998 
    (63 FR 4076), April 15, 1998 (63 FR 18804), and October 2, 1998 (63 FR 
    53084).
        This revision to the transition notice requirements addresses the 
    treatment of proceeds from the sale of homeownership units. Question 42 
    in the transition notice revision published on January 27, 1998 treated 
    proceeds from the sale of homeownership units the same as rental and 
    homeownership operating reserves, mutual help equity accounts under the 
    Mutual Help Homeownership Opportunity Program, and earned home payment 
    accounts under the Turnkey III programs for purposes of section 210 of 
    NAHASDA. Section 210 states that any funds for programs for low-income 
    housing under the United States Housing Act of 1937 that, on the date 
    of the applicability of NAHASDA, are owned by, or in the possession or 
    under the control of, the IHA for the tribe, including all reserves not 
    otherwise obligated, shall be considered assistance under NAHASDA and 
    subject to the NAHASDA provisions relating to use of such assistance.
        In response to inquiries, HUD has reconsidered Question 42 and 
    determined that section 210 of NAHASDA does not apply to the proceeds 
    from the sale of homeownership units. The purpose of the statutory 
    requirement for the transition notice is to facilitate the transition 
    from the 1937 Act programs to the IHBG program. Proceeds of sale of 
    homeownership units under the 1937 Act are not characterized as program 
    income under the IHBG regulation. By providing that the proceeds can be 
    used for any housing activity, community facility, or economic 
    development activity and are not subject to other Federal requirements, 
    HUD is seeking to expedite the smooth transition to the IHBG program. 
    Accordingly, Question 42 is amended by this notice to remove the 
    reference to homeownership unit sales proceeds, and Questions 42A and 
    42B are added to provide guidance on the treatment of these proceeds.
        In addition to addressing homeownership unit sales proceeds, this 
    notice also revises Question 46 to extend and clarify the applicability 
    of PIH Notice 96-33 to cash management and investment policies and 
    procedures.
    
    II. Revisions to the January 27, 1998 Transition Notice
    
        Accordingly, FR Doc. 98-1939, the Indian Housing Block Grant 
    Program--Revised Notice of Transition Requirements, published in the 
    Federal Register January 27, 1998, 63 FR 4076, is amended as follows:
        1. On page 4085, in column 3, Question 42 and Answer 42 are revised 
    to read as follows:
        Question 42. What happens to rental and homeownership operating 
    reserves, mutual help equity accounts under the Mutual Help 
    Homeownership Opportunity Program, and earned home payment accounts 
    under the Turnkey III program?
        Answer 42. Section 210 of NAHASDA states that any funds for 
    programs for low-income housing under the United States Housing Act of 
    1937 that, on the date of the applicability of the Act, are owned by, 
    or in the possession or under the control of, the IHA for the tribe, 
    including all reserves not otherwise obligated, shall be considered 
    assistance under the Act and subject to the provisions of this Act 
    relating to use of such assistance. In other words, the funds are 
    considered assistance under NAHASDA and are subject to NAHASDA 
    requirements. The funds in the accounts are also subject to existing 
    agreements with the homebuyers.
        2. On page 4085, in column 3, a new Question 42A and Answer 42A are 
    added to read as follows:
        Question 42A. Can proceeds from the sale of homeownership units be 
    used for purposes other than eligible NAHASDA activities?
        Answer 42A. Yes. We have determined that section 210 of NAHASDA 
    addresses only the 1937 Act funds provided by HUD and not the proceeds 
    from the sale of homeownership units. Proceeds can be used for any 
    housing activity, community facility or economic development activity 
    that benefits the community. If the use of these funds is currently 
    outlined in an Administrative Use Agreement, the Agreement can be 
    terminated at the request of the Indian Housing Authority (or successor 
    entity). The funds can then be used for any housing activity, community 
    facility or economic development activity.
        3. On page 4085, in column 3, a new Question 42B and Answer 42B are 
    added to read as follows:
        Question 42B. What Federal requirements would apply to the proceeds 
    from the sale of homeownership units?
        Answer 42B. The use of proceeds are not subject to any Federal 
    requirements, except that the funds must be used for the activities set 
    forth in Answer 42A.
        4. On page 4086, in column 1, Answer 46 is revised to read as 
    follows (Question 46 is republished for the convenience of readers):
        Question 46. What cash management and investment policies and 
    procedures are in effect as of October 1, 1997?
        Answer 46. Current procedures outlined in PIH Notice 96-33 (HA) 
    dated June 4, 1996, extended by Notice 98-46 (HA) dated September 1, 
    1998, titled ``Required HA Cash Management and Investment Policies and 
    Procedures'' will continue to apply to 1937 Act funds which are held in 
    reserve accounts until further notice. Please note, however, that 
    sections 7(c) and 8 of Notice 98-46 do not apply to 1937 Act funds. 
    Also, the limit on maturity dates outlined in section 6 of Notice 96-33 
    does not apply.
    
        Authority: 25 U.S.C. 4116(a).
    
        Dated: March 26, 1999.
    Harold Lucas,
    Assistant Secretary for Public and Indian Housing.
    [FR Doc. 99-8030 Filed 3-29-99; 2:09 pm]
    BILLING CODE 4210-33-P
    
    
    

Document Information

Published:
04/01/1999
Department:
Housing and Urban Development Department
Entry Type:
Notice
Action:
Notice of revised transition requirements--proceeds of sales of former 1937 Act homeownership units.
Document Number:
99-8030
Dates:
These transition requirements are effective upon publication.
Pages:
15778-15779 (2 pages)
Docket Numbers:
Docket No. FR-4170-N-19
RINs:
2577-AB74: Implementation of the Native American Housing Assistance and Self-Determination Act of 1996 (FR-4170)
RIN Links:
https://www.federalregister.gov/regulations/2577-AB74/implementation-of-the-native-american-housing-assistance-and-self-determination-act-of-1996-fr-4170-
PDF File:
99-8030.pdf