[Federal Register Volume 60, Number 89 (Tuesday, May 9, 1995)]
[Proposed Rules]
[Pages 24596-24598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11372]
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[[Page 24597]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Public and Indian Housing
24 CFR Parts 950 and 990
[Docket No. R-95-1783; FR-3747-P-01]
RIN 2577-AB47
Performance Funding System: Unit Months Available
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Proposed rule.
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SUMMARY: The Department is proposing to revise the Performance Funding
System to permit payment of operating subsidies for scattered-site
units as they become occupied.
DATES: Comments due date: July 10, 1995.
ADDRESSES: Interested persons are invited to submit written comments
regarding this proposed rule to the Office of the General Counsel,
Rules Docket Clerk, Room 10276, Department of Housing and Urban
Development, 451 Seventh Street, S.W., Washington, D.C. 20410. Comments
should refer to the above docket number and title. A copy of each
comment submitted will be available for public inspection and copying
between 7:30 a.m. and 5:30 p.m. at the above address. Facsimile (FAX)
comments are not acceptable.
FOR FURTHER INFORMATION CONTACT: Mr. John T. Comerford, Director,
Financial Management Division, Office of Management Operations, Public
and Indian Housing, Room 4212, Department of Housing and Urban
Development, 451 Seventh Street, S.W., Washington D.C. 20410, telephone
(202) 708-1872; or with respect to the Indian Housing programs, Ms.
Joann A. Teiken, Financial Management Specialist, Office of Native
American Programs, Public and Indian Housing, Room B-133, Department of
Housing and Urban Development, 451 Seventh Street, S.W., Washington
D.C. 20410, telephone (202) 708-2980. Hearing or speech impaired
individuals may call HUD's TDD number, (202) 708-0850. (These telephone
numbers are not toll-free.)
SUPPLEMENTARY INFORMATION: HUD's current policy provides that
eligibility for operating subsidy depends on the date of the End of
Initial Operating Period (EIOP), and the subsidy is payable for the
project as a whole, not on the basis of individual units. Any operating
deficit prior to EIOP is chargeable to the Development Cost Budget,
thereby reducing funds available for other development costs. This
procedure is founded on practices historically used in large, multi-
unit apartment projects, but is not necessarily appropriate to projects
involving acquisition of existing, scattered site units.
This proposed rule would revise the definition of Unit Months
Available (Secs. 950.102 and 990.102) and provide an explanation of the
alternate method for calculating unit months available upon acquisition
of units in a scattered site project (Secs. 950.705 and 990.104(b)).
This change in procedure would be made applicable to scattered site
developments acquired by Indian Housing Authorities.
Findings and Certifications
The subject matter of this proposed rule is categorically excluded
from HUD's environmental clearance procedures under 24 CFR 50.20(k). It
relates to internal administrative procedures whose content does not
constitute a development decision or affect the physical condition of
project areas or building sites.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this proposed rule before publication and
by approving it certifies that this proposed rule does not have a
significant economic impact on substantial number of small entities.
The proposed rule would recognize that homes that are part of
scattered-site developments become ready for occupancy at varying
times, and would remove a potential penalty to housing authorities who
would otherwise have to wait for all units in a scattered-site
development to be occupied before they can receive subsidy.
Executive Order 12612, 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 proposed rule would not have federalism implications
and, thus, are not subject to review under the Order. The proposed rule
would refine an established formula under which HUD calculates
operating subsidies for low-income housing developments, but contains
no requirement for explicit action by local officials and would not
interfere with State or local governmental functions.
Executive Order 12606
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this proposed rule would
not have 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 proposed rule, as those policies and
programs relate to family concerns.
Regulatory Agenda
This proposed rule was listed as item 1881 in the Department's
Semiannual Agenda of Regulations published on November 14, 1994 (59 FR
57632, 57670) in accordance with Executive Order 12866 and the
Regulatory Flexibility Act.
The Catalog of Federal Domestic Assistance number is 14.850.
List of Subjects
24 CFR Part 950
Aged, Grant programs--housing and community development, Grant
programs--Indians, Indians, Individuals with disabilities, Low and
moderate income housing, Public housing, Reporting and recordkeeping
requirements.
24 CFR Part 990
Grant programs--housing and community development, Public housing,
Reporting and recordkeeping requirements.
Accordingly, in title 24 of the Code of Federal Regulations, parts
950 and 990 would be amended, as follows:
PART 950--INDIAN HOUSING PROGRAMS
1. The authority citation for part 950 would continue to read as
follows:
Authority: 25 U.S.C. 405e(b), 1437aa-1437ee, and 3535(d).
2. Section 950.102 would be amended by revising the definition of
``Unit months available'', to read as follows:
Sec. 950.102 Definitions.
* * * * *
Unit months available. Units multiplied by the number of months the
project units are available for occupancy during a given IHA fiscal
year. See also Sec. 950.705(b).
* * * * *
3. The existing text in Sec. 950.705 would be redesignated as
paragraph (a), and a new paragraph (b) would be added, to read as
follows:
Sec. 950.705 Determination of amount of operating subsidy under PFS.
* * * * * [[Page 24598]]
(b) For purposes of this part, a unit is considered available for
occupancy from the date on which the End of Initial Operating Period
(EIOP) is established for the project with which it is associated until
the time it is approved by HUD for deprogramming and is vacated or is
approved for non-dwelling use, except that, on or after July 1, 1991, a
unit shall not be considered available for occupancy in any IHA
Requested Budget Year if the unit is located in a vacant building in a
project that HUD has determined to be nonviable. In the case of an IHA
development involving the acquisition of scattered site housing, the
IHA may submit, and HUD shall review and can approve, a revised
Development Cost Budget reflecting the number of units that were
occupied during the previous six months, and the Unit Months Available
used in the calculation of operating subsidy eligibility shall be
revised to include the number of months the new/acquired units are
actually occupied.
PART 990--ANNUAL CONTRIBUTIONS FOR OPERATING SUBSIDY
4. The authority citation for part 990 would continue to read as
follows:
Authority: 42 U.S.C. 1437g and 3535(d).
5. Section 990.102 would be amended by revising the definition of
``Unit Months Available'', to read as follows:
Sec. 990.102 Definitions.
* * * * *
Unit months available. Units multiplied by the number of months the
project units are available for occupancy during a given PHA fiscal
year. See also Sec. 990.104(b).
* * * * *
6. In Sec. 990.104, paragraph (b) would be revised, to read as
follows:
Sec. 990.104 Determination of amount of operating subsidy under PFS.
* * * * *
(b) For purposes of this part, a unit is considered available for
occupancy from the date on which the End of Initial Operating Period
(EIOP) is established for the project with which it is associated until
the time it is approved by HUD for deprogramming and is vacated or is
approved for non-dwelling use, except that, on or after July 1, 1991, a
unit shall not be considered available for occupancy in any PHA
Requested Budget Year if the unit is located in a vacant building in a
project that HUD has determined to be nonviable. In the case of a PHA
development involving the acquisition of scattered site housing, the
PHA may submit, and HUD shall review and can approve, a revised
Development Cost Budget reflecting the number of units that were
occupied during the previous six months, and the Unit Months Available
used in the calculation of operating subsidy eligibility shall be
revised to include the number of months the new/acquired units are
actually occupied.
Dated: March 24, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-11372 Filed 5-8-95; 8:45 am]
BILLING CODE 4210-33-P
