[Federal Register Volume 59, Number 95 (Wednesday, May 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12026]
[[Page Unknown]]
[Federal Register: May 18, 1994]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Public and Indian Housing
24 CFR Part 905
[Docket No. R-94-1718; FR-3488-F-01]
RIN 2577-AB29
Assisted Housing for Indians & Alaskan Natives--Payments to
Municipalities
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule.
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SUMMARY: This rule amends existing regulations to implement provisions
in the Housing and Community Development Act of 1992 that eliminate the
requirement that Indian Housing Authorities (IHAs) demonstrate that the
cost of new construction would be less costly than acquiring
properties; and allow IHAs to make annual payments to municipalities,
which may include Tribal, city or county government, or other politial
subdivisions that provide roads, water supply, sewage facilities,
electrical systems or fuel distributions systems to IHAs.
EFFECTIVE DATE: June 17, 1994.
FOR FURTHER INFORMATION CONTACT: Dominic Nessi, Director, Office of
Native American Programs, Room 4140, 451 Seventh Street, SW,
Washington, DC 20410; telephone (202) 708-1015; TDD (202) 708-0850.
(These are not toll-free telephone numbers.)
SUPPLEMENTARY INFORMATION:
Background
This rule implements section 122(a) and section 122(c) of the
Housing and Community Development Act of 1992. Section 122(a) amends
section 201(c) of the United States Housing Act of 1937 (1937 Act) by
making section 6(h) inapplicable to IHAs. Section 6(h) required that
IHAs demonstrate to the satisfaction of the Secretary that the cost of
new construction would be less than the cost of acquiring properties,
before an IHA constructed new units. Under the amendment made by
section 122(a), IHAs are no longer required to provide documentation
with an application for new construction stating that the new
construction is less costly than the acquisition and/or rehabilitation
of existing dwellings. The Indian housing regulation (24 CFR
905.210(a)) has been removed.
Section 122(c) amended section 203(b) of the 1937 Act by allowing
IHAs to make annual payments (hereafter referred to as User Fees) to
municipalities that provide any roads, water supply, sewage facilities,
electrical systems, or fuel distributions systems to IHAs. Section 6(d)
of the 1937 Act provides that no contribution will be made to a low-
income housing project unless the project is exempt from all real and
personal property taxes levied or imposed by the State, city, county,
or other political subdivision. The 1937 Act also contained a provision
for Payment in Lieu of Taxes (PILOT) for related facilities and
services delivered by a local government, which did not include Tribal
government.
Section 122(c) amended section 203(b) by adding the following:
Notwithstanding any other provision of this Act, the Secretary
shall make annual payments from funds appropriated under section
9(c) to municipalities providing such roads, facilities, and systems
in a[n] amount equal to--
(1) 10 percent of the applicable shelter rent, minus the utility
allowance; or
(2) $150,
whichever is greater, for each rental housing unit covered by this
subsection.
This regulatory change applies to all IHAs operating rental
programs and receiving related facilities and services from
municipalities. The Indian housing regulations at 24 CFR 905.720 will
incorporate the amendment and add a new category of additional
operating subsidy eligibility for an IHA's rental program.
Justification for Final Rule
In general, the Department publishes a rule for public comment
before issuing a rule for effect, in accordance with its own
regulations on rulemaking at 24 CFR part 10. However, part 10 provides
for exceptions from that general rule where the Department finds good
cause to omit advance notice and public comment. ``Good cause'' may be
found where advance notice and comment is ``impracticable, unnecessary,
or contrary to the public interest'' (24 CFR 10.1). The Department
finds that good cause exists to publish this rule for effect without
first soliciting public comment, because the statutory provisions are
self-executing and prior public comment is unnecessary. The rule is a
technical amendment to update the regulations.
Other Matters
Impact on Environment
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. 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
Regulatory Flexibility
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this rule before publication and by
approving it certifies that the rule will not have a significant
economic impact on a substantial number of small entities. Any impact
on small entities will be beneficial.
Semiannual Agenda
This rule was listed as item 1697 in the Department's Semiannual
Agenda of Regulations published on April 25, 1994 (59 FR 20424, 20472)
under Executive Order 12866 and the Regulatory Flexibility Act.
Family Impact
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule does not have
potential for significant impact on family formation, maintenance, and
general well-being; therefore, is not subject to review under the
order.
Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this rule do not have federalism implications and thus,
are not subject to review under this order. The rule will not interfere
with or preempt State or local government functions.
List of Subjects in 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.
Accordingly, 24 CFR part 905 is amended as follows:
PART 905--INDIAN HOUSING PROGRAMS
1. The authority citation for 24 CFR part 905 continues to read as
follows:
Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a, 1437aa, 1437bb,
1437cc, 1437ee and 3535(d).
Sec. 905.210 [Removed]
2. Section 905.210 is removed.
3. Section 905.720 is amended by adding paragraph (f) to read as
follows:
Sec. 905.720 Other costs.
* * * * *
(f) User Fee. Additional operating subsidy will be provided to IHAs
for payment of an annual User Fee separate from the PFS. An IHA
operating a rental program shall pay an annual User Fee to
municipalities, which may include Tribal, city, county government, or
other political subdivision that provides any roads, water supply,
sewage facilities, electrical systems or fuel distributions systems.
The annual User Fee will be paid in an amount equal to 10 percent of
the applicable shelter rent, minus the utility allowance; or $150,
whichever is greater, for each rental housing unit covered by this
section.
* * * * *
Dated: May 3, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 94-12026 Filed 5-17-94; 8:45 am]
BILLING CODE 4210-33-P
