Federal Housing Administration (FHA): Removal of Section 235 Home Ownership Program Regulations, 18095-18096 [2015-07597]

Download as PDF Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations Ave., Bldg. 71, Rm. 3103, Silver Spring, MD 20993–0002. ■ 72. Section 1271.350 is amended: ■ a. In the first sentence of paragraph (a)(5) by removing the words ‘‘Center for Biologics Evaluation and Research (HFM–210), Food and Drug Administration, 1401 Rockville Pike, Suite 200N, Rockville, MD 20852–1448’’ and by adding in their place ‘‘Food and Drug Administration, Center for Biologics Evaluation and Research, Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993–0002’’; and ■ b. By revising paragraph (b)(3) to read as follows: § 1271.350 Reporting. * * * * * (b) * * * (3) You must report each such HCT/P deviation that relates to a core CGTP requirement on Form FDA 3486 within 45 days of the discovery of the event either electronically using the Center for Biologics Evaluation and Research electronic Web-based application or by mail to the Food and Drug Administration, Center for Biologics Evaluation and Research, Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993–0002. Dated: March 23, 2015. Leslie Kux, Associate Commissioner for Policy. [FR Doc. 2015–07268 Filed 4–2–15; 8:45 am] BILLING CODE 4164–01–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 200 and 235 [Docket No. FR–5829–F–01] Federal Housing Administration (FHA): Removal of Section 235 Home Ownership Program Regulations Office of the Assistant Secretary for Housing, Federal Housing Commissioner, HUD. ACTION: Final rule. AGENCY: Through this rule, HUD removes the regulations for its Section 235 Program, which authorized HUD to provide mortgage subsidy payments to lenders to assist lower-income families who are unable to meet the credit requirements generally applicable to FHA mortgage insurance programs. Authority to provide insurance to mortgagees under this program was terminated under the Housing and Community Development Act of 1987 asabaliauskas on DSK5VPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 16:21 Apr 02, 2015 Jkt 235001 and HUD has not provided new mortgage subsidy payments under this program since then. Because the regulations governing this program are no longer operative, they are being removed by this final rule. To the extent that any Section 235 mortgages remain in existence, or second mortgages for the recapture of subsidy payment pursuant to HUD’s regulations governing the Section 235 Program (which was reserved by regulatory streamlining in 1995), the removal of these regulations does not affect the requirements for transactions entered into when Section 235 Program regulations were in effect. Assistance made available under the Section 235 Program will continue to be governed by the regulations that existed immediately before the effective date of this final rule. DATES: Effective May 4, 2015. FOR FURTHER INFORMATION CONTACT: Camille E. Acevedo, Associate General Counsel for Legislation and Regulations, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 20410; telephone 202– 708–1793 (this is not a toll-free number). Persons with hearing or speech impairments may access this number through TTY by calling the tollfree Federal Relay Service at 800–877– 8389. SUPPLEMENTARY INFORMATION: I. Background On August 1, 1968, the Housing and Urban Development Act of 1968 (Pub. L. 90–448) amended the National Housing Act to add a new section 235 (12 U.S.C. 1715z) (Section 235 Program). This provision authorized the Secretary to provide subsidies to reduce mortgage interest rates to as low as 1 percent and authorized a new credit assistance homeownership program for lowerincome families who were unable to meet the credit requirements generally applicable to FHA mortgage insurance programs. HUD promulgated regulations implementing the Section 235 Program on January 6, 1976 (see 41 FR 1176) and codified these regulations in part 235 of title 24 of the Code of Federal Regulations (CFR). However, on February 5, 1988, the Section 235 Program was terminated under section 401(d) of the Housing and Community Development Act of 1987 (Pub. L. 100– 242) and HUD ceased to make mortgage subsidy payments available under this program beginning October 1, 1989.1 In 1 Although the Section 235 Program was terminated, section 401(d) of the Housing and Community Development Act of 1987 permitted the Secretary to continue to refinance mortgages PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 18095 1995, HUD removed much of part 235 from the CFR as part of HUD’s effort to eliminate outdated, obsolete, or unutilized regulations, leaving only the parts that were necessary to regulate outstanding loans assisted or insured under the program. (See 60 FR 56498.) As of the date of this publication, there are only two outstanding loans remaining that were assisted or insured under this program. This Final Rule Since authority for HUD to provide assistance or insurance to low-income borrowers under the Section 235 Homeownership Program expired on October 1, 1989, HUD is proceeding to remove Section 235 Program regulations codified in 24 CFR part 235. Loans issued with assistance provided under Section 235 that are still outstanding will continue to be governed by the regulations in effect on May 3, 2015. Accordingly, this rule amends § 1301 (Expiring Programs— Savings Clause) of 24 CFR 200, subpart W (Administrative Matters), and adds a new paragraph (g) to § 200.1301, which preserves the Section 235 Program regulations as in effect prior to the effective date of this final rule, and continues to govern any assistance provided under the Section 235 Program before May 4, 2015. II. Justification for Final Rulemaking HUD generally publishes a rule for public comment before issuing a final rule for effect, in accordance with HUD’s own regulations on rulemaking in 24 CFR part 10. However, part 10 provides for exceptions to the general rule if 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. (See 24 CFR 10.1.) HUD finds that public notice and comment are not necessary for this rulemaking because assistance is no longer being provided under this program and, therefore, the regulations are no longer operative. For these reasons, HUD has determined that it is unnecessary to delay the effectiveness of this rule in order to solicit prior public comment. insured previously under section 235(r) of the National Housing Act. However, no insurance or assistance for new loans has been provided by HUD since October 1, 1989. E:\FR\FM\03APR1.SGM 03APR1 18096 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations III. Findings and Certification Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because HUD has determined that good cause exists to issue this rule without prior public comment, this rule is not subject to the requirement to publish an initial or final regulatory flexibility analysis under the RFA as part of such action. Unfunded Mandates Reform Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 2 requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by state, local and tribal governments, in the aggregate, or by the private sector of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of UMRA also requires an agency to identify and consider a reasonable number of regulatory alternatives before promulgating a rule.3 However, the UMRA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to the APA.4 As discussed above, HUD has determined for good cause that the APA does not require general notice and public comment on this rule and, therefore, the UMRA does not apply to this final rule. asabaliauskas on DSK5VPTVN1PROD with RULES Executive Order 13132, Federalism Executive Order 13132 (entitled ‘‘Federalism’’) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial direct compliance costs on state and local governments and is not required by statute, or the rule preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This final rule will not have federalism implications and would not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive Order. 22 U.S.C. 1532. U.S.C. 1534. 4 2 U.S.C. 1532(a). 32 VerDate Sep<11>2014 16:21 Apr 02, 2015 Jkt 235001 Environmental Review This final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern, or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). List of Subjects 24 CFR Part 235 Condominiums, Cooperatives, Grant programs—housing and community development, Low and moderate income housing, Mortgage insurance, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, and under the authority of 42 U.S.C. 3535(d), HUD amends 24 CFR parts 200 and 235 as follows: PART 200—INTRODUCTION TO FHA PROGRAMS 1. The authority citation for part 200 continues to read as follows: ■ Authority: 12 U.S.C. 1702–1715z–21; 42 U.S.C. 3535(d). 2. Add § 200.1301(g) to read as follows: ■ Expiring programs—Savings * * * * * (g) Any existing loan assistance (including recapture of loan assistance), ongoing participation, or insured loans under the program listed in this paragraph will continue to be governed by the regulations in effect as they existed immediately before May 4, 2015 (24 CFR part 235, 2014 Edition): (1) Part 235, Mortgage Insurance and Assistance Payments for Home PO 00000 Frm 00014 Fmt 4700 PART 235—[Removed] ■ 3. Remove part 235. Dated: March 27, 2015. Biniam Gebre, Acting Assistant Secretary for Housing— Federal Housing Commissioner. [FR Doc. 2015–07597 Filed 4–2–15; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE TREASURY Internal Revenue Service 24 CFR Part 200 Administrative practice and procedure, Claims, Equal employment opportunity, Fair housing, Home improvement, Housing standards, Incorporation by reference, Lead poisoning, Loan programs—housing and community development, Minimum property standards, Mortgage insurance, Organization and functions (Government agencies), Penalties, Reporting and recordkeeping requirements, Social security, Unemployment compensation, Wages. § 200.1301 clause. Ownership and Project Rehabilitation (12 U.S.C. 1715z). (2) [Reserved] Sfmt 4700 26 CFR Part 1 [TD 9717] RIN 1545–BL77 Allocation of Controlled Group Research Credit Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary regulations. AGENCY: This document contains final and temporary regulations relating to the allocation of the credit for increasing research activities (research credit) to corporations and trades or businesses under common control (controlled groups)... This document also contains final and temporary regulations relating to the allocation of the railroad track maintenance credit and the election for a reduced research credit. The text of these temporary regulations also serves as the text of the proposed regulations (REG–133489–13) published in the Proposed Rules section in this issue of the Federal Register. DATES: Effective date: These regulations are effective April 3, 2015. Applicability date: For dates of applicability, see §§ 1.41–6T(j), 1.45G– 1T(g), and 1.280C–4T(c). FOR FURTHER INFORMATION CONTACT: James Holmes, at (202) 317–4137; (not a toll-free number). SUPPLEMENTARY INFORMATION: SUMMARY: Background This document contains final and temporary regulations for § 1.41–6, § 1.45G–1, and § 1.280C–4 of the Income Tax Regulations (26 CFR part 1). These regulations update the rules in a manner that is consistent with the amendments made to section 41(f)(1)(A)(ii) and section 41(f)(1)(B)(ii) in Section 301(c) of the Act. E:\FR\FM\03APR1.SGM 03APR1

Agencies

[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Rules and Regulations]
[Pages 18095-18096]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07597]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 200 and 235

[Docket No. FR-5829-F-01]


Federal Housing Administration (FHA): Removal of Section 235 Home 
Ownership Program Regulations

AGENCY: Office of the Assistant Secretary for Housing, Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: Through this rule, HUD removes the regulations for its Section 
235 Program, which authorized HUD to provide mortgage subsidy payments 
to lenders to assist lower-income families who are unable to meet the 
credit requirements generally applicable to FHA mortgage insurance 
programs. Authority to provide insurance to mortgagees under this 
program was terminated under the Housing and Community Development Act 
of 1987 and HUD has not provided new mortgage subsidy payments under 
this program since then. Because the regulations governing this program 
are no longer operative, they are being removed by this final rule. To 
the extent that any Section 235 mortgages remain in existence, or 
second mortgages for the recapture of subsidy payment pursuant to HUD's 
regulations governing the Section 235 Program (which was reserved by 
regulatory streamlining in 1995), the removal of these regulations does 
not affect the requirements for transactions entered into when Section 
235 Program regulations were in effect. Assistance made available under 
the Section 235 Program will continue to be governed by the regulations 
that existed immediately before the effective date of this final rule.

DATES: Effective May 4, 2015.

FOR FURTHER INFORMATION CONTACT: Camille E. Acevedo, Associate General 
Counsel for Legislation and Regulations, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
10276, Washington, DC 20410; telephone 202-708-1793 (this is not a 
toll-free number). Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal Relay 
Service at 800-877-8389.

SUPPLEMENTARY INFORMATION: 

I. Background

    On August 1, 1968, the Housing and Urban Development Act of 1968 
(Pub. L. 90-448) amended the National Housing Act to add a new section 
235 (12 U.S.C. 1715z) (Section 235 Program). This provision authorized 
the Secretary to provide subsidies to reduce mortgage interest rates to 
as low as 1 percent and authorized a new credit assistance 
homeownership program for lower-income families who were unable to meet 
the credit requirements generally applicable to FHA mortgage insurance 
programs. HUD promulgated regulations implementing the Section 235 
Program on January 6, 1976 (see 41 FR 1176) and codified these 
regulations in part 235 of title 24 of the Code of Federal Regulations 
(CFR). However, on February 5, 1988, the Section 235 Program was 
terminated under section 401(d) of the Housing and Community 
Development Act of 1987 (Pub. L. 100-242) and HUD ceased to make 
mortgage subsidy payments available under this program beginning 
October 1, 1989.\1\ In 1995, HUD removed much of part 235 from the CFR 
as part of HUD's effort to eliminate outdated, obsolete, or unutilized 
regulations, leaving only the parts that were necessary to regulate 
outstanding loans assisted or insured under the program. (See 60 FR 
56498.) As of the date of this publication, there are only two 
outstanding loans remaining that were assisted or insured under this 
program.
---------------------------------------------------------------------------

    \1\ Although the Section 235 Program was terminated, section 
401(d) of the Housing and Community Development Act of 1987 
permitted the Secretary to continue to refinance mortgages insured 
previously under section 235(r) of the National Housing Act. 
However, no insurance or assistance for new loans has been provided 
by HUD since October 1, 1989.
---------------------------------------------------------------------------

This Final Rule

    Since authority for HUD to provide assistance or insurance to low-
income borrowers under the Section 235 Homeownership Program expired on 
October 1, 1989, HUD is proceeding to remove Section 235 Program 
regulations codified in 24 CFR part 235.
    Loans issued with assistance provided under Section 235 that are 
still outstanding will continue to be governed by the regulations in 
effect on May 3, 2015. Accordingly, this rule amends Sec.  1301 
(Expiring Programs--Savings Clause) of 24 CFR 200, subpart W 
(Administrative Matters), and adds a new paragraph (g) to Sec.  
200.1301, which preserves the Section 235 Program regulations as in 
effect prior to the effective date of this final rule, and continues to 
govern any assistance provided under the Section 235 Program before May 
4, 2015.

II. Justification for Final Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
final rule for effect, in accordance with HUD's own regulations on 
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions 
to the general rule if 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. (See 24 CFR 10.1.)
    HUD finds that public notice and comment are not necessary for this 
rulemaking because assistance is no longer being provided under this 
program and, therefore, the regulations are no longer operative. For 
these reasons, HUD has determined that it is unnecessary to delay the 
effectiveness of this rule in order to solicit prior public comment.

[[Page 18096]]

III. Findings and Certification

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because HUD has determined that good cause exists to issue this rule 
without prior public comment, this rule is not subject to the 
requirement to publish an initial or final regulatory flexibility 
analysis under the RFA as part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \2\ 
requires that an agency prepare a budgetary impact statement before 
promulgating a rule that includes a Federal mandate that may result in 
the expenditure by state, local and tribal governments, in the 
aggregate, or by the private sector of $100 million or more in any one 
year. If a budgetary impact statement is required, section 205 of UMRA 
also requires an agency to identify and consider a reasonable number of 
regulatory alternatives before promulgating a rule.\3\ However, the 
UMRA applies only to rules for which an agency publishes a general 
notice of proposed rulemaking pursuant to the APA.\4\ As discussed 
above, HUD has determined for good cause that the APA does not require 
general notice and public comment on this rule and, therefore, the UMRA 
does not apply to this final rule.
---------------------------------------------------------------------------

    \2\ 2 U.S.C. 1532.
    \3\ 2 U.S.C. 1534.
    \4\ 2 U.S.C. 1532(a).
---------------------------------------------------------------------------

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This final rule will not have 
federalism implications and would not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive Order.

Environmental Review

    This final rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern, or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects

24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Home improvement, Housing standards, 
Incorporation by reference, Lead poisoning, Loan programs--housing and 
community development, Minimum property standards, Mortgage insurance, 
Organization and functions (Government agencies), Penalties, Reporting 
and recordkeeping requirements, Social security, Unemployment 
compensation, Wages.

24 CFR Part 235

    Condominiums, Cooperatives, Grant programs--housing and community 
development, Low and moderate income housing, Mortgage insurance, 
Reporting and recordkeeping requirements.
    For the reasons set forth in the preamble, and under the authority 
of 42 U.S.C. 3535(d), HUD amends 24 CFR parts 200 and 235 as follows:

PART 200--INTRODUCTION TO FHA PROGRAMS

0
1. The authority citation for part 200 continues to read as follows:

    Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).


0
2. Add Sec.  200.1301(g) to read as follows:


Sec.  200.1301  Expiring programs--Savings clause.

* * * * *
    (g) Any existing loan assistance (including recapture of loan 
assistance), ongoing participation, or insured loans under the program 
listed in this paragraph will continue to be governed by the 
regulations in effect as they existed immediately before May 4, 2015 
(24 CFR part 235, 2014 Edition):
    (1) Part 235, Mortgage Insurance and Assistance Payments for Home 
Ownership and Project Rehabilitation (12 U.S.C. 1715z).
    (2) [Reserved]

PART 235--[Removed]

0
3. Remove part 235.

    Dated: March 27, 2015.
Biniam Gebre,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2015-07597 Filed 4-2-15; 8:45 am]
 BILLING CODE 4210-67-P
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