[Federal Register Volume 59, Number 131 (Monday, July 11, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16639]
[[Page Unknown]]
[Federal Register: July 11, 1994]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
24 CFR Part 791
[Docket No. R-94-1728; FR-3658-I-01]
RIN 2501-AB71
Allocation of Budget Authority for Housing Assistance
AGENCY: Office of the Secretary, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule amends the Department's existing regulations
on allocation of budget authority for housing assistance to provide
greater flexibility in the provision of housing assistance under the
Headquarters Reserve authorized under section 213(d)(4) of the Housing
and Community Development Act of 1974, as amended.
DATES: Effective date: August 10, 1994.
Comment due date: September 9, 1994.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim rule to the Rules Docket Clerk, Office of General Counsel,
Room 10276, Department of Housing and Urban Development, 451 Seventh
Street, SW., Washington, DC 20410. Communications should refer to the
above docket number and title. A copy of each communication submitted
will be available for public inspection during regular business hours
at the above address.
FOR FURTHER INFORMATION CONTACT: For the Public and Indian Housing
program, and section 8 voucher, certificate, and moderate
rehabilitation programs, William R. Minning, Director, Policy Division,
Room 4234, Department of Housing and Urban Development, 451 Seventh
Street, SW., Washington, DC 20410-0500, telephone (202) 708-0713.
Hearing- or speech-impaired individuals may call HUD's TDD number (202)
708-0850.
For other assisted housing programs, Margaret Milner, Acting
Director, Office of Elderly and Assisted Housing, Room 6130, Department
of Housing and Urban Development, 451 Seventh Street, SW., Washington,
DC 20410-8000, telephone (202) 708-4542. Hearing- or speech-impaired
individuals may call HUD's TDD number (202) 755-4594. (These are not
toll-free numbers.)
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule further implements section 213(d) of the Housing
and Community Development Act of 1974, as amended, 42 U.S.C. 1439(d),
so as to maximize flexibility in the provision of the Headquarters
Reserve authorized under section 213(d)(4) of the Act.
Section 213(d)(4) permits the Secretary of HUD to retain not more
than five percent of the financial assistance that becomes available
under all programs authorized under the United States Housing Act of
1937 (except for public housing operating subsidy under section 9 and
modernization funding under section 14). However, the current
regulation implementing the Headquarters Reserve at Sec. 791.407 is
more delimited. It only permits a Headquarters Reserve of five percent
of the total amount of budget authority which is ``fair shared''
pursuant to Part 791, Subpart D. The effect of the regulatory
limitation is to narrow considerably the base upon which the five
percent reserve is calculated, as compared to what the statute permits.
Under this interim rule, the base would be expanded by including
not only the amount of funding which is fair shared pursuant to the
formula at Sec. 791.403(b)(2), but also all budget authority allocated
for uses that the Secretary determines are incapable of geographic
formula, as spelled out at Sec. 791.403(b)(1). Examples of the latter
category include amendments of existing contracts, renewals of
assistance contracts, the section 8 loan management and property
disposition accounts, assistance earmarked by the Congress in
appropriation law line items, and uses of budget authority identified
in the Department's Operating Plan submitted to the Appropriations
Committee.
Although the amount of funding available under the Headquarters
Reserve will be increased by this interim rule, the limited statutory
purposes for which funding is permissible are maintained. Reserve
funding can only be used for unforeseen housing needs resulting from
natural and other disasters; housing needs resulting from emergencies,
as certified by the Secretary, other than such disasters; housing needs
resulting from the settlement of litigation; and housing in support of
desegregation efforts.
The tragedies of recent disasters are a highly visible predicate
for this interim rule. The confluence in 1993 of Hurricane Andrew,
Hurricane Iniki, and Typhoon Omar and this year the Northridge
earthquake in California have placed substantial pressure on the
Department to provide prompt, efficient assisted housing relief for
disaster victims.
Further, the Department finds itself involved in longstanding
litigation for which equitable resolution frequently requires the
delivery of housing assistance in order to achieve fair, reasonable
settlement. Expanding the ranging of the Headquarters Reserve will
facilitate handling these unpredictable pressures for disaster relief
and litigation settlements, as well as for emergencies.
Precisely because the incidence of these types of housing
assistance funding are unpredictable, the availability of readier
resources through an increased Reserve is one which HUD will only call
upon as needed. That is, although a greater amount of budget authority
will be made available under this interim rule than is the case under
the current regulation, this does not mean that HUD will use the full
statutory maximum in this year or any year. The draw upon the Reserve
will be carefully tempered to exigencies and real, immediate need.
HUD notes that the basis upon which the five percent can be
calculated does not include the section 202 program of supportive
housing for the elderly. Section 801(b) of the Cranston-Gonzalez
National Affordable Housing Act (NAHA) removed the section 202 program
from coverage under section 213(d). However, NAHA did not repeal a
previous amendment to section 213(d)(1)(A)(i) made by section 101 of
the Department of Housing and Urban Development Reform Act of 1989.
This amendment requires that section 202 assistance be allocated in a
manner that ensures that awards of that assistance are made for
projects of sufficient size to accommodate facilities with supportive
services appropriate to the needs of frail elderly residents. Moreover,
the Department has elected to continue the fair sharing of section 202
housing assistance in order to promote fair and balanced geographic
diversity. (The fair sharing formula for section 202 assistance is
specifically tailored at Sec. 791.402(c)(1) to reflect relevant
characteristics of the elderly population.) Notwithstanding this
retention of section 202 allocations in part 791, the statutory range
for calculation of the five percent Headquarters Reserve is now
effectively limited to programs under the United States Housing Act of
1937 which are covered by section 213(d). Therefore, the revision to
Sec. 791.407 under this interim rule limits--for calculation purposes--
the Reserve to five percent under those 1937 Act programs.
II. Other Matters
A. Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this interim rule, and in so
doing certifies that this interim rule does not have a significant
economic impact on a substantial number of small entities. The interim
rule revises existing procedures for the allocation of housing
assistance funds and for local government and HUD review of
applications for housing assistance, but will make no change in the
economic impact of these procedures on small entities.
B. Environmental Impact
In accordance with 40 CFR 1508.4 of the regulations of the Council
on Environmental Quality and 24 CFR 50.20(k) of the HUD regulations,
the policies and procedures contained in this interim rule relate only
to internal administrative procedures whose content does not constitute
a development decision nor affect the physical condition of project
areas or building sites, and therefore, are categorically excluded from
the requirements of the National Environmental Policy Act.
C. 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 interim 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.
Specifically, this interim rule will not substantially alter the
established roles of HUD and the States and local governments,
including PHAs, in administering the affected programs. As a result,
the interim rule is not subject to review under the Order.
D. Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this interim 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. No significant change in existing HUD policies or programs will
result from promulgation of this interim rule, as those policies and
programs relate to family concerns.
E. Regulatory Agenda
This interim rule was listed as item 1550 in the Department's
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR
20424, 20440), in accordance with Executive Order 12866 and the
Regulatory Flexibility Act.
F. The Catalog of Federal Domestic Assistance Program Numbers Are as
Follows
14.156 Lower Income Housing Assistance Program (Section 8)
14.157 Housing for the Elderly or Handicapped
14.177 Housing Voucher Program
14.850 Public and Indian Housing
14.851 Low-Income Housing--Homeownership Opportunities for Low-
Income Families
G. Justification for Interim Rulemaking
In general, the Department publishes a rule for public comment
before issuing a rule for effect, in accordance with its own
regulations on rulemaking, 24 CFR Part 10. However, part 10 does
provide for exceptions from the general rule where the agency finds
good cause to omit advance notice and public participation. The good
cause requirement is satisfied when prior public procedure is
``impracticable, unnecessary, or contrary to the public interest.'' (24
CFR 10.1)
The Department finds that good cause exists to publish this interim
rule for effect without first soliciting public comment, in that prior
public comment is contrary to the public interest because immediate
effectiveness of this interim rule will permit the Department to
respond immediately to housing assistance needs brought on by natural
and other disasters, housing needs resulting from emergencies arising
from unpredictable and sudden circumstances causing housing deprivation
or causing an unforeseen and significant increase in lower income
housing demands in a housing market, and housing needs resulting from
the settlement of litigation.
List of Subjects in 24 CFR Part 791
Grant programs--housing and community development,
Intergovernmental relations, Public housing, Rent subsidies.
Accordingly, 24 CFR Part 791 is amended as follows:
PART 791--REVIEW OF APPLICATIONS FOR HOUSING ASSISTANCE AND
ALLOCATIONS OF HOUSING ASSISTANCE FUNDS
1. The authority citation for Part 791 continues to read as
follows:
Authority: 42 U.S.C. 1439; 42 U.S.C. 3535(d).
2. Section 791.407 is amended by revising the introductory text of
paragraph (a) to read as follows:
Sec. 791.407 Headquarters Reserve.
(a) A portion of the budget authority available for the housing
programs listed in Sec. 791.101(a), not to exceed an amount equal to
five percent of the total amount of budget authority available for the
fiscal year for programs under the United States Housing Act of 1937
listed in Sec. 791.101(a), may be retained by the Assistant Secretary
for subsequent allocation to specific areas and communities, and may
only be used for:
* * * * *
Dated: June 10, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-16639 Filed 7-8-94; 8:45 am]
BILLING CODE 4210-32-P
