[Federal Register Volume 59, Number 84 (Tuesday, May 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10518]
[[Page Unknown]]
[Federal Register: May 3, 1994]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Housing--Federal Housing
Commissioner
24 CFR Parts 880, 881, and 883
[Docket No. R-94-1714; FR-3683-F-01]
Special Rent Adjustments
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: This final rule is a technical amendment to HUD's regulations
for certain Section 8 programs governed by 24 CFR parts 880 (New
Construction), 881 (Substantial Rehabilitation), and 883 (State Housing
Agencies) to conform the language to that used in section 8(c)(2)(B) of
the U.S. Housing Act of 1937. The amendment will authorize rent
adjustments for privately owned Section 8 projects to cover expenses
that are not presently compensated for by annual rental adjustments.
EFFECTIVE DATE: June 2, 1994.
FOR FURTHER INFORMATION CONTACT: James Tahash, Director, Planning and
Procedures Division, room 6280, Department of Housing and Urban
Development, 451 Seventh Street, SW., Washington, DC, 20410-0500;
telephone: (voice) (202) 708-3944 and (TDD) (202) 708-4594. (These are
not toll-free numbers).
SUPPLEMENTARY INFORMATION: This rule is a technical amendment to the
Section 8 Housing Assistance Payments programs governed by 24 CFR parts
880 (New Construction), 881 (Substantial Rehabilitation), and 883
(State Housing Agencies). The amendment will conform the special rent
adjustment regulations for those programs (Secs. 880.609(b), 881.609(b)
and 883.710(b)) to the language used in section 8(c)(2)(B), by adding
the phrase ``or similar costs'' to the list of substantial increases in
expenses, such as real property taxes and utility rates, that may
result in the need for special rent adjustments. The ``similar costs''
language appears in other section 8 program regulations (parts 882, 884
and 886), but was never included in the regulations for those programs
covered by parts 880, 881, and 883. This final rule will treat all
section 8 programs comparably.
In accordance with its own regulations on rulemaking in 24 CFR part
10, the Department generally publishes a rule for public comment before
issuing a rule for effect, unless to do so would be impracticable,
unnecessary, or contrary to the public interest. This rule is being
published as a final rule for effect because the Department believes
that public comment is unnecessary. The amendments made by this rule
are technical in nature, and conform the regulations to the statutory
language.
Other Matters
An environmental assessment is unnecessary, since fair market rent
schedules is categorically excluded from the Department's National
Environmental Policy Act procedures under 24 CFR 50.20(l), and rent
adjustments are directly related to such rent schedules.
This rule was not listed in the Department's Semiannual Agenda of
Regulations published on April 25, 1994 (59 FR 20424) in accordance
with Executive Order 12866 and the Regulatory Flexibility Act.
In accordance with 5 U.S.C. 605(b) (the Regulatory Flexibility
Act), the undersigned hereby certifies that this rule does not have a
significant economic impact on a substantial number of small entities.
Any economic impact, whether on small entities or large, would be
beneficial, in that it would seek to compensate property owners for
extraordinary expenses incurred that are not compensated by the annual
rent adjustments.
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 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. As a result,
the rule is not subject to review under the Order. Specifically, the
requirements of this rule are directed to private owners of Section 8
projects and do not impinge upon the relationship between the Federal
government and State and local governments.
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, and, thus, is not subject to review under the
Order. Nothing in this rule changes the amount of rent paid by tenant
families, which is based on the income of the family.
List of Subjects
24 CFR Part 880
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 881
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 883
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
Accordingly, title 24 of the Code of Federal Regulations is amended
as follows:
PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW
CONSTRUCTION
1. The authority citation for part 880 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
2. Section 880.609 is amended by revising paragraph (b) to read as
follows:
Sec. 880.609 Adjustment of contract rents.
* * * * *
(b) Special additional adjustments. For all projects, special
additional adjustments will be granted, to the extent determined
necessary by HUD, to reflect increases in the actual and necessary
expenses of owning and maintaining the assisted units which have
resulted from substantial general increases in real property taxes,
assessments, utility rates, utilities not covered by regulated rates,
or similar costs, and which are not adequately compensated for by
annual adjustments under paragraph (a) of this section. The owner must
submit to the contract administrator required supporting data,
financial statements and certifications.
* * * * *
PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR
SUBSTANTIAL REHABILITATION
3. The authority citation for part 881 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and
13611-13619.
4. Section 881.609 is amended by revising paragraph (b) to read as
follows:
Sec. 881.609 Adjustment of contract rents.
* * * * *
(b) Special additional adjustments. For all projects, special
additional adjustments will be granted, to the extent determined
necessary by HUD, to reflect increases in the actual and necessary
expenses of owning and maintaining the assisted units which have
resulted from substantial general increases in real property taxes,
assessments, utility rates, utilities not covered by regulated rates or
similar costs, and which are not adequately compensated for by annual
adjustments under paragraph (a) of this section. The owner must submit
to the contract administrator required supporting data, financial
statements and certifications.
* * * * *
PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE
HOUSING AGENCIES
5. The authority citation for part 883 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
6. Section 883.710 is amended by revising paragraph (b) to read as
follows:
Sec. 883.710 Adjustment of contract rents.
* * * * *
(b) Special additional adjustments. For all projects, special
additional adjustments will be granted, to the extent determined
necessary by HUD, to reflect increases in the actual and necessary
expenses of owning and maintaining the assisted units which have
resulted from substantial general increases in real property taxes,
assessments, utility rates, utilities not covered by regulated rates,
or similar costs, and which are not adequately compensated for by
annual adjustments under paragraph (a) of this section. The owner must
submit to the contract administrator required supporting data,
financial statements and certifications.
* * * * *
Dated: April 25, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 94-10518 Filed 5-2-94; 8:45 am]
BILLING CODE 4210-27-P
