Narrowing the Digital Divide Through Installation of Broadband Infrastructure in HUD-Funded New Construction and Substantial Rehabilitation of Multifamily Rental Housing, 31181-31192 [2016-11352]
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Proposed Rules
Federal Register
Vol. 81, No. 96
Wednesday, May 18, 2016
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
a platform for individuals and families
residing in such housing to participate
in the digital economy, and increase
their access to economic opportunities.
DATES: Comment due date: July 18,
2016.
Interested persons are
invited to submit comments regarding
this proposed rule. All communications
must refer to the above docket number
and title. To receive consideration as
public comments, comments must be
submitted through one of the two
methods specified below.
1. Submission of Comments by Mail.
Comments may be submitted by mail to
the Regulations Division, Office of
General Counsel, Department of
Housing and Urban Development, 451
7th Street SW., Room 10276,
Washington, DC 20410–0500.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make comments immediately available
to the public. Comments submitted
electronically through the
www.regulations.gov Web site can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
No Facsimiled Comments. Facsimiled
(faxed) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments and communications
submitted to HUD will be available for
public inspection and copying between
8 a.m. and 5 p.m. weekdays at the above
address. Due to security measures at the
HUD Headquarters building, an advance
appointment to review the public
comments must be scheduled by calling
the Regulations Division at 202–708–
3055 (this is not a toll-free number).
Individuals with speech or hearing
impairments may access this number
via TTY by calling the Federal Relay
Service at 800–877–8339 (this is a tollfree number). Copies of all comments
submitted are available for inspection
ADDRESSES:
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 5, 92, 93, 570, 574, 578,
880, 881, 883, 884, 886, 891, 905, 983
[Docket No. FR 5890–P–01]
RIN 2501–AD75
Narrowing the Digital Divide Through
Installation of Broadband
Infrastructure in HUD-Funded New
Construction and Substantial
Rehabilitation of Multifamily Rental
Housing
Office of the Secretary, HUD.
Proposed rule.
AGENCY:
ACTION:
Through this proposed rule,
HUD continues its efforts to narrow the
digital divide in low-income
communities served by HUD by
providing, where feasible and with HUD
funding, broadband infrastructure to
communities in need of such
infrastructure. Broadband is the
common term used to refer to a very fast
connection to the Internet. Such
connection is also referred to as highspeed broadband, broadband Internet, or
high-speed Internet. In this proposed
rule, HUD proposes to require
installation of broadband infrastructure
at the time of new construction or
substantial rehabilitation of multifamily
rental housing that is funded or
supported by HUD. Installation of
broadband infrastructure at the time of
new construction or substantial
rehabilitation is generally easier and
less costly than when such installation
is undertaken as a stand-alone effort.
The proposed rule, however, recognizes
that installation of broadband
infrastructure may not be feasible for all
new construction or substantial
rehabilitation, and, therefore, the
proposed rule allows limited exceptions
to the installation requirements.
Installing unit-based broadband
infrastructure in multifamily rental
housing that is newly constructed or
substantially rehabilitated with or
supported by HUD funding will provide
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SUMMARY:
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and downloading at
www.regulations.gov.
For
Community Planning and Development
programs, Marion McFadden, Office of
Community Planning and Development,
Room 7204, telephone, 202–708–2111
(this is not a toll-free number). For
Office of Multifamily Housing programs,
Katie Buckner, Office of Housing, Room
6222, telephone 202–402–7140 (this is
not a toll-free number). For Office of
Public and Indian Housing programs,
Dominique Blom, Office of Public and
Indian Housing, Room 4130, telephone
202–402–4181 (this is not a toll-free
number). The address for all individuals
is Department of Housing and Urban
Development, 451 7th Street SW.,
Washington, DC 20410–0500. Persons
with hearing or speech impairments
may access these numbers through TTY
by calling the Federal Relay Service at
800–877–8339 (this is a toll-free
number).
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
I. Executive Summary
A. Purpose of This Proposed Rule
The purpose of this proposed rule is
to require installation of broadband
infrastructure at the time of new
construction or substantial
rehabilitation of multifamily rental
housing that is funded or supported by
HUD.1 This rulemaking does not require
a HUD-funded grantee to undertake new
construction or substantial
rehabilitation, but when a grantee does
choose to pursue such activity for
multifamily rental housing with HUD
funding, this proposed rule would
require installation of broadband
infrastructure. While the proposed rule
only requires affected grantees to install
one form of broadband infrastructure,
HUD suggests that grantees consider
whether installing more than one form
of broadband infrastructure would be
beneficial to encourage competition
among service providers on quality and
price. Installing unit-based broadband
infrastructure in multifamily rental
housing that is newly constructed and
1 This proposed rule applies to all projects with
project-based Section 8 housing assistance payment
(HAP) contracts (other than Mod Rehab or Mod
Rehab Single Room Occupancy (SRO) projects),
regardless of whether the properties receive specific
funding to pay directly for substantial rehabilitation
or new construction, as defined in this proposed
rule.
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substantially rehabilitated with or
supported by HUD funding will provide
a platform for individuals and families
residing in such housing to participate
in the digital economy, and increase
their access to economic opportunities.
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B. Summary of Major Provisions of This
Proposed Rule
This proposed rule would require
installation of broadband infrastructure
at the time of new construction or
substantial rehabilitation of multifamily
rental units funded by the following
programs:
1. Choice Neighborhoods
Implementation Grant program;
2. Community Development Block
Grant (CDBG) program, including the
CDBG Disaster Recovery program;
3. Continuum of Care program;
4. HOME Investment Partnerships
program;
5. Housing Opportunities for Persons
With AIDS program;
6. Housing Trust Fund program;
7. Project-Based Voucher program;
8. Public Housing Capital Fund
program;
9. Section 8 project-based housing
assistance payments programs,
including, but not limited to, the
Section 8 New Construction, Substantial
Rehabilitation, Loan Management SetAside, and Property Disposition
programs; and
10. Supportive Housing for the
Elderly and Persons with Disabilities
program.
The requirements of the proposed rule
would not apply to multifamily rental
housing that only has a mortgage
insured by HUD’s Federal Housing
Administration or with a loan
guaranteed under a HUD loan guarantee
program.
HUD is proposing to define
broadband infrastructure as cables, fiber
optics, wiring, or other permanent
infrastructure, including wireless
infrastructure, as long as the installation
results in broadband infrastructure in
each dwelling unit meeting the
definition created by the Federal
Communications Commission (FCC),
which currently is 25 Megabits per
second (Mbps) download, 3 Mbps
upload. In addition, HUD is proposing
that, for programs that do not already
have a definition of substantial
rehabilitation, substantial rehabilitation
be defined as work on the electrical
system that is equal to or greater than 75
percent of the cost of replacing the
entire electrical system, or when the
cost of the rehabilitation is equal to or
greater than 75 percent of the total
estimated cost of replacing the
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multifamily rental housing after the
rehabilitation is complete.
C. Costs and Benefits of This Proposed
Rule
The costs and benefits of this
proposed rule are difficult to quantify,
but they can be described qualitatively.
This proposed rule only requires that
the broadband infrastructure provided is
to receive high-speed Internet that is
‘‘accessible’’ in each unit; it does not
require those recipients of funding
undertaking new construction or
substantial rehabilitation to provide a
regular subscription to broadband
service (even at a cost) to current or
future residents. Furthermore, the
definition of broadband infrastructure in
the proposed rule is broad enough to
include coaxial cable television (TV)
wiring that supports cable modem
access or even permanent infrastructure
that would provide broadband speeds to
dwelling units wirelessly. The
rulemaking also provides for exceptions
to the installation requirements for
where the installation is too costly to
provide due to location or building
characteristics.
A recent survey by the National
Association of Homebuilders found that
just 4 percent of the surveyed
multifamily housing developers never
installed landline wires and jacks in
multifamily units completed in the past
12 months.2 In recent years, HUD’s
competitive grants for new construction
under the Choice Neighborhoods
program have sought the provision of
broadband access. Therefore, this
rulemaking simply proposes to codify
what is considered common practice in
the private market today when new
construction or substantial
rehabilitation is undertaken.
Given the wide range of technologies
that may be employed to meet the
requirements of this proposed rule, it is
not possible to specify the cost of the
technology and how much additional
burden this may be for owners or
developers building or providing
substantial rehabilitation to HUDassisted rental housing. If the broadband
infrastructure is wiring connected to
proximate telephone or cable company
networks, the cost is not expected to be
significant, as all electrical work in a
multifamily project is estimated to be
2 NAHB, Multifamily Market Survey 3rd Quarter
2015. November 2015. There were 90 responses,
and of the responses, 18 percent indicated it was
Not Applicable, presumably because they had not
completed any projects in the past 12 months. The
survey covers all multifamily construction
including lower quality Class B and Class C. It does
not provide details on the developers or projects
that did not install landlines.
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only about 10 percent of the
construction cost; 3 running an
additional cable through existing
electrical conduits would be a minimal
incremental cost. If the broadband
infrastructure is wireless, the cost will
be for the equipment, which varies
greatly by the design and size of the
project, as does the cost per unit. Given
that the costs of installation of
broadband infrastructure are only a
portion of the 10 percent of construction
costs, the requirement proposed by this
rulemaking is not expected to
measurably reduce the size of the
housing or the number of units to be
constructed. At most, installation of
broadband infrastructure may reduce
the provision of other amenities or
nonessential finishes, but HUD
considers even these reductions.
Additionally, the proposed rule only
applies to new construction or
substantial rehabilitation that is
supported with HUD-provided
resources.
Materials on the benefits of narrowing
the digital divide are voluminous.
Having broadband Internet in the home
increases household income 4 and yields
higher education achievement for
students.5 On July 2015, the Council of
Economic Advisers issued the report
‘‘Mapping the Digital Divide,’’ which
examines progress in the United States
in narrowing the digital divide and the
work that still needs to be done,
especially in the Nation’s poorest
neighborhoods and most rural
communities.6 However, this proposed
rule’s limited scope in only requiring
the installation of infrastructure instead
of providing Internet access also limits
the benefits of the proposed rule. The
benefit of the proposed rule is that
where broadband Internet service can be
made available, the tenant, residing in
housing with broadband infrastructure,
will be assured of the ability to access
broadband Internet service, whether
they choose and are able to afford
Internet service or not. This puts
3 2015 National Building Cost Manual. Ed. Ben
Moselle. Carlsbad, CA: Craftsman Book Company.
https://www.craftsman-book.com/media/static/
previews/2015_NBC_book_preview.pdf, pg. 19.
4 Ericsson, Arthur D. Little, and Chalmers
University of Technology. Socioeconomic Effects of
Broadband Speed. September 2013. https://
www.ericsson.com/res/thecompany/docs/corporateresponsibility/2013/ericsson-broadband-final071013.pdf.
5 Davidson, Charles M. and Michael J. Santorelli.
‘‘The Impact of Broadband on Education.’’
December 2010. https://www.uschamber.com/sites/
default/files/legacy/about/US_Chamber_Paper_on_
Broadband_and_Education.pdf, pg. 24.
6 See Council of Economic Advisers. ‘‘Mapping
the Digital Divide.’’ Issue Brief. July 2015. https://
www.whitehouse.gov/sites/default/files/wh_digital_
divide_issue_brief.pdf.
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broadband Internet service within reach,
especially where other charitable and
public social programs, including
HUD’s ConnectHome program, provide
free or reduced-cost service.
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II. Background
On March 23, 2015, President Obama
issued a Presidential memorandum on
‘‘Expanding Broadband Deployment and
Adoption by Addressing Regulatory
Barriers and Encouraging Investment
and Training.’’ 7 In this memorandum,
the President noted that access to highspeed broadband is no longer a luxury,
but it is a necessity for American
families, businesses, and consumers.
The President further noted that the
Federal Government has an important
role to play in developing coordinated
policies to promote broadband
deployment and adoption, including
promoting best practices, breaking down
regulatory barriers, and encouraging
further investment.
On July 15, 2015, HUD launched its
Digital Opportunity Demonstration,
known as ‘‘ConnectHome,’’ in which
HUD provided a platform for
collaboration among local governments,
public housing agencies, Internet
service providers, philanthropic
foundations, nonprofit organizations,
and other relevant stakeholders to work
together to produce local solutions for
narrowing the digital divide in
communities across the nation served
by HUD. The demonstration, or pilot,
commenced with the participation of 28
communities.8 Through contributions
made by the Internet service providers
and other organizations participating in
the pilot, residents living in public and
HUD-assisted housing in these 28
communities will receive discounted
broadband service, technical assistance,
literacy training, and electronic devices
that provide for accessing high-speed
Internet.
The importance of all Americans
having access to the Internet cannot be
overstated. As HUD stated in its
announcement of the Digital
Opportunity Demonstration, published
in the Federal Register on April 3, 2015,
at 80 FR 18248, knowledge is a pillar to
achieving the American Dream—a
catalyst for upward mobility as well as
an investment that ensures each
generation has opportunities to succeed.
7 See Barack Obama. ‘‘Presidential
Memorandum—Expanding Broadband Deployment
and Adoption by Addressing Regulatory Barriers
and Encouraging Investment and Training.’’ March
23, 2015. https://www.whitehouse.gov/the-pressoffice/2015/03/23/presidential-memorandumexpanding-broadband-deployment-and-adoptionaddr.
8 See Connect Home. ‘‘About the Pilot.’’ https://
connecthome.hud.gov/pilot.
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Many low-income Americans do not
have broadband Internet at home,
contributing to the estimated 66 million
Americans who lack basic digital
literacy skills.9 Without broadband
adoption and the skills to use Internet
technology at home, children and adults
can miss out on the high-value
educational, economic, and social
impact that high-speed Internet
provides. It is for these reasons that
HUD is exploring ways, beyond
ConnectHome, to narrow the digital
divide for the low-income individuals
and families served by HUD multifamily
rental housing programs. This proposed
rule presents one such additional effort.
III. This Proposed Rule
A. Multifamily Rental Housing Covered
by This Proposed Rule
This proposed rule would apply to
new construction and substantial
rehabilitation of multifamily rental
housing in the HUD programs that
authorize and fund such activities.
These programs are listed in Section II.B
of this preamble. The proposed rule
would not apply to multifamily rental
housing with a mortgage insured by
HUD’s Federal Housing Administration
(FHA) or with a loan guaranteed under
a HUD loan guarantee program.10
Further, this proposed rule would not
apply to new construction or substantial
rehabilitation of single-family or singleunit housing.
HUD proposes to require installation
of broadband infrastructure in
individual housing units at the time of
new construction or substantial
rehabilitation of multifamily rental
housing, because while such installation
is not without cost, the cost can be
reduced by providing the installation at
the time when housing is first being
built or substantially rehabilitated.
B. HUD Programs Covered by This
Proposed Rule
As provided in section I.B. of this
preamble, this proposed rule would
apply to multifamily rental housing that
is to be newly constructed or
substantially rehabilitated with funds
under the following HUD programs, as
9 See Connect Minnesota. ‘‘Digital Literacy: A
Critical Skill for all Minnesotans.’’ July 2013. https://
www.connectednation.org/sites/default/files/mn_
digital_literacy_final.pdf.
10 See the Section 108 Loan Guarantee program,
for which the regulations are found in 24 CFR part
570, subpart M; the Loan Guarantee program for
Indian Housing, for which the regulations are found
in 24 CFR part 1005; the Section 184 Loan
Guarantees for Native Hawaiian Housing, for which
the regulations are found in 24 CFR part 1007; and
the Title VI Loan Guarantee Program, for which the
regulations are found in 24 CFR part 1000, subpart
E.
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implemented through the regulations or
under authorities cited below:
1. Choice Neighborhoods
Implementation Grant program, for
which the requirements are found in
HUD notices of funding availability
(NOFAs);
2. Community Development Block
Grant (CDBG) program, for which the
regulations are found in 24 CFR part
570;
3. Continuum of Care (CoC) program,
for which the regulations are found in
24 CFR part 578;
4. HOME Investment Partnerships
(HOME) program, for which the
regulations are found in 24 CFR part 92;
5. Housing Opportunities for Persons
With AIDS (HOPWA) program, for
which the regulations are found in 24
CFR part 574;
6. Housing Trust Fund (HTF)
program, for which the regulations are
found in 24 CFR part 93;
7. Project-Based Voucher program, for
which the regulations are found in 24
CFR part 983;
8. Public Housing Capital Fund
program, for which the regulations are
found in 24 CFR part 905;
9. Section 8 project-based housing
assistance payments programs,
including, but not limited to, the
Section 8 New Construction, Substantial
Rehabilitation, Loan Management SetAside, and Property Disposition
programs; and
10. Supportive Housing for the
Elderly and Persons with Disabilities
program, for which the regulations are
found in 24 CFR part 891.
One of HUD’s major new construction
and substantial rehabilitation programs,
the Choice Neighborhoods program,
already requires broadband
infrastructure in new construction units
and permits the use of Choice
Neighborhood funds for broadband
infrastructure in substantially
rehabilitated units. In addition, Choice
Neighborhood grantees may use up to
15 percent of their grants for Critical
Community Improvements, of which
neighborhood broadband programs are
considered an eligible expense. The
Choice Neighborhoods program
supports locally driven strategies to
address struggling neighborhoods with
distressed public or HUD-assisted
housing through a comprehensive
approach to neighborhood
transformation. The program is designed
to catalyze critical improvements in
neighborhood assets, including vacant
property, housing, services, and schools.
One of the three core goals of the Choice
Neighborhoods program is to replace
distressed public and assisted housing
with high-quality, mixed-income
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housing.11 The Choice Neighborhoods
program is implemented through annual
NOFAs. HUD’s Fiscal Year (FY) 2014
Choice Neighborhoods NOFA requires
housing to be built with broadband
Internet infrastructure.12
C. When Installation of Broadband
Infrastructure May Be Infeasible
As noted in the Summary, HUD
recognizes that installation of
broadband infrastructure will not be
feasible for every new construction or
substantial rehabilitation of multifamily
rental housing proposed to be covered
by this proposed rule. For example,
HUD recognizes that constructing or
undertaking substantial rehabilitation of
multifamily rental housing in certain
areas may make installation of
broadband infrastructure infeasible. As
the Rural Utilities Service of the U.S.
Department of Agriculture (USDA)
stated in a final rule entitled ‘‘Economic
Benefits of Broadband Deployment in
Rural Areas,’’ published on February 6,
2013,13 bringing broadband services to
rural areas presents challenges because
rural systems must contend with lower
household density than urban systems.
Similarly, the particular type or
structure of covered multifamily rental
housing to be substantially rehabilitated
may also make the installation of
broadband infrastructure infeasible. The
proposed rule therefore offers
exceptions to broadband installation
requirements when a funding recipient
determines that installing broadband
infrastructure is not feasible. Recipients
and owners will be responsible for
maintaining documentation that
justifies the recipient’s determination of
infeasibility. HUD will consider
providing additional guidance on this
issue when the final rule becomes
effective.
D. Rule Terminology
Broadband
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As noted in the Summary,
‘‘broadband’’ is the common term used
to refer to a very fast connection to the
Internet. Such connection is also
referred to as high-speed broadband or
high-speed Internet. HUD recognizes
that broadband is defined by several
11 United States Department of Housing and
Urban Development. ‘‘Choice Neighborhoods.’’
https://portal.hud.gov/hudportal/HUD?src=/
program_offices/public_indian_housing/programs/
ph/cn.
12 See United States Department of Housing and
Urban Development. ‘‘Choice Neighborhoods
Planning Grants Notice of Funding Availability.’’
June 4, 2014. https://portal.hud.gov/hudportal/
documents/huddoc?id=13CNP-FR5800N13.pdf.
13 https://www.gpo.gov/fdsys/pkg/FR-2013-02-06/
pdf/2013-02390.pdf.
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agencies as Internet access of at least a
certain speed.14 HUD is proposing to
require that, where feasible,
infrastructure be installed to provide
every housing unit covered by this
proposed rule with the ability to access
the Internet that meets the definition
adopted by the FCC—currently 25 Mbps
download, 3 Mbps upload— regardless
of whether any Internet service provider
offers such access in a given location.
This will provide the capacity for future
broadband adoption without having to
undertake additional renovation work. If
the FCC modifies its definitions in the
future, HUD’s requirements for any new
construction or substantial
rehabilitation undertaken after the
definition change will also change.
Broadband Infrastructure
The broadband infrastructure that
needs to be installed to provide families
in covered multifamily rental housing
with broadband access will vary
according to the housing being
constructed or rehabilitated and the
plans of the entity doing such
construction or rehabilitation.
Therefore, HUD proposes a flexible
definition, allowing entities undertaking
new construction or substantial
rehabilitation to install the broadband
infrastructure that is most feasible given
the specifics of the construction or
substantial rehabilitation to be
undertaken. HUD proposes to require
installation of cables, fiber optics,
wiring, or other infrastructure, as long
as the installation results in broadband
accessibility in each dwelling unit. HUD
proposes only to require the installation
of broadband infrastructure on the
property, not to require that grantees be
responsible for ensuring an external
connection between the property and an
Internet service provider (ISP).
Substantial Rehabilitation
While some of the HUD programs
listed in Section II.B of this preamble
define what is meant by ‘‘substantial
rehabilitation,’’ the majority of the
covered programs do not define this
term. Therefore, for the sole purpose of
determining when substantial
rehabilitation of covered multifamily
rental housing would trigger installation
of broadband infrastructure and, except
in the HOPWA program, where
substantial rehabilitation is already
14 For example, see the U.S. Department of
Agriculture definition at 7 CFR 1738.2 (requiring
download speeds of at least 4 Mbps, or the Federal
Communications Commission’s definition in its
2015 Broadband Progress Report at https://
apps.fcc.gov/edocs_public/attachmatch/FCC-1510A1.pdf (defining broadband as having download
speeds of at least 25 Mbps).
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defined, HUD proposes to define
‘‘substantial rehabilitation’’ to mean:
(1) Significant work on the electrical
system of the multifamily rental
housing. ‘‘Significant work’’ is defined
as work that is equal to or greater than
75 percent of the cost of replacing the
entire electrical system. In the case of
multifamily rental housing with
multiple buildings with more than 4
units, ‘‘entire system’’ refers to the
electrical system of the building(s)
undergoing rehabilitation; or
(2) Rehabilitation of the multifamily
rental housing in which the estimated
cost of the rehabilitation is equal to or
greater than 75 percent of the total
estimated cost of replacing the
multifamily rental housing after the
rehabilitation is complete. In the case of
multifamily rental housing with
multiple buildings with more than 4
units, the replacement cost used in this
determination would be the
replacement cost of the building(s)
undergoing rehabilitation.
E. Compliance Timeline
HUD intends for this proposed rule to
apply to projects that have not yet
established their budgets and had
funding approved, in order to give
recipients and owners adequate time to
factor the installation of broadband
infrastructure into their new
construction or substantial
rehabilitation plans.
F. Rule’s Objective
With this proposed rule, HUD seeks to
take another important step toward
narrowing the digital divide by
providing residents in covered
multifamily rental housing that is to be
newly constructed or substantially
rehabilitated with infrastructure that
supports access to broadband Internet
service, thereby increasing access to
educational and economic opportunities
for these residents.
IV. Specific Questions for Comments
While HUD welcomes comments on
all aspects of this proposed rule, HUD
is seeking specific comment on the
following questions:
1. In light of the policy objectives
discussed in the preamble, should this
proposed rule be applied to other HUD
programs, particularly additional
multifamily housing programs (such as
Rental Supplement (RS), Rental
Assistance Payment (RAP), Moderate
Rehabilitation Programs (Mod Rehab),
etc.) or programs addressing singlefamily housing? Should any programs
covered by this proposed rule be
removed?
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2. Given that the definition of the
term ‘‘substantial rehabilitation’’ will
determine which projects (other than
new construction) are affected by this
rulemaking, should the definition be
changed in any way?
3. How much does it cost to add the
installation of broadband infrastructure
to a pre-planned new construction or
rehabilitation project? Are HUD’s
estimates for the labor and materials
costs for installing broadband
infrastructure accurate? What data can
the public share with HUD about the
most cost-effective way for broadband
infrastructure to be installed during a
new construction or rehabilitation
project?
4. The proposed rule provides
exceptions to the requirements if
compliance would be infeasible due to
cost, location, or structural concerns.
Are these exceptions too broad or too
narrow? What is the best way for
grantees to demonstrate to HUD that
installation of broadband infrastructure
is infeasible, and what would
appropriate sanctions be if grantees do
not comply even if it was feasible? Do
any grantees have experience with a
project in which installing broadband
infrastructure was physically or
economically infeasible, and under
what circumstances was it infeasible?
5. When evaluating whether the
rehabilitation being done meets the
threshold in the definition of substantial
rehabilitation, should HUD use the prerehabilitation estimates for the project
alone, or should HUD include increases
in rehabilitation costs that arise in the
process of rehabilitation?
V. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. Executive Order 13563
(Improving Regulations and Regulatory
Review) directs executive agencies to
analyze regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned. Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. This proposed
rule was determined to be a ‘‘significant
regulatory action’’ as defined in section
3(f) of the Executive order (although not
an economically significant regulatory
action, as provided under section 3(f)(1)
of the Executive order).
As discussed, this proposed rule
furthers HUD’s efforts to narrow the
digital divide in low-income
communities served by HUD.
Specifically, HUD proposes to require
installation of broadband infrastructure
at the time of new construction or
substantial rehabilitation of multifamily
rental housing that is funded by HUD.
As noted in the Executive Summary, the
costs and benefits of this proposed rule
are difficult to quantify, but they can be
described qualitatively.
A. Benefits
The evidence demonstrating the
benefits of narrowing the digital divide
is well documented. In just one
example, a study conducted by a former
Chair of the President’s Council of
Economic Advisers used data on the
amount of time Internet users spend
online to estimate that Internet access
produces thousands of dollars of
consumer surplus per user each year.15
As noted above, however, the benefits of
Internet technology have not been
31185
evenly distributed and research shows
that there remain substantial disparities
in both Internet use and the quality of
access. This digital deficit is generally
concentrated among older, less
educated, and less affluent
populations.16
HUD recognizes that the proposed
rule’s limited scope in only requiring
the installation of infrastructure, instead
of providing Internet access, also limits
the benefits of the proposed rule.
Specifically, the benefit of the proposed
rule is that where broadband Internet
can be made available at a limited price,
the tenant, residing in housing with
broadband infrastructure, will be
assured of the ability to access
broadband Internet service, whether
they choose and are able to afford
Internet service or not. This proposed
rule, therefore, would put broadband
Internet service within reach where
other charitable and public social
programs, including HUD’s
ConnectHome program, provide free or
reduced cost service.
B. Costs
It is not possible to specify the exact
costs that recipients and owners may
incur as a result of the proposed rule,
given the variety of available
technologies that may be used to satisfy
the new broadband requirements.
However, available data indicates that
any costs associated with this proposed
rule will be minimal.
As is displayed on table I, broadband
Internet access can be provided using
two general technologies: Wired and
wireless, each with several specific
technologies. Broadband can be
delivered over wired lines using veryhigh-bit-rate digital subscriber lines
(VDSL), cable lines, power lines (BPL),
or fiber optic platforms. Using wireless
technologies, broadband can be
provided using satellite, fixed wireless,
mobile wireless, and Wi-Fi platforms.
TABLE I—TYPES OF BROADBAND TECHNOLOGIES
Access requirement
ehiers on DSK5VPTVN1PROD with PROPOSALS
Platform
Connection type
Wired
Digital Subscriber Line (VDSL) .............
Cable Modem ........................................
Fiber ......................................................
Broadband over Power Lines (BPL) .....
Wireless
Satellite ..................................................
Copper wire ..........................................
Copper wire ..........................................
Fiber Optic wire ....................................
Copper wire ..........................................
Yes
Yes
Yes
Yes
Over the Air—satellite ...........................
None ......................
15 Council of Economic Advisers July 2015 report,
supra, citing Austan Goolsbee and Peter J. Klenow,
Valuing Consumer Products by the Time Spent
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infrastructure
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........................
........................
........................
........................
Using Them: An Application to the Internet
National Bureau of Economic Research Working
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Not part of
infrastructure
Router
Router
Router
Router
&
&
&
&
Modem.
Modem.
Modem.
Modem.
Router & Modem.
Paper No. 11995 (February 2006) available online
at: https://www.nber.org/papers/w11995.
16 Ibid.
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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules
TABLE I—TYPES OF BROADBAND TECHNOLOGIES—Continued
Access requirement
Platform
Connection type
Part of
infrastructure
Fixed Wireless .......................................
Over the Air—Longer Range Directional Equipment.
Over the Air—Cellular ...........................
Over the Air—Short-Range Wireless
Technology.
None ......................
Router & Modem.
None ......................
None ......................
Router & Modem.
Router & Modem.
Mobile Wireless .....................................
Wireless Fidelity (WiFi) .........................
Whereas wired lines technologies may
require some sort of physical
infrastructure consisting of internal
wiring within the dwelling unit,
wireless technologies do not require any
additional physical infrastructure
within the building. With wireless
technology, the signal travels through
the air to the customer, who uses a
connection technology, such as a
modem, to access the services. For
wireless technologies, the infrastructure
cost to the property boundary
(connection to the service provider) is
nil ($0). However, the availability of
wireless broadband service is limited
and evolving, so HUD expects many
builders will opt to install wired
broadband infrastructure.
Building costs of installing wired
infrastructure are limited to in-dwelling
wiring, as this is all that is required by
the proposed rule. Within the unit or
the building, the electrical work consists
of running cable (meeting the
requirements of category (Cat) 5e or Cat
6 wire), installing jacks and plates, and
minor construction work (such as
drilling and patching walls). Fiber optic
cables are rarely run in the dwelling
unit but are installed by the service
provider outside the unit; the non-fiber
optic wiring then makes broadband
accessible within the unit. Depending
Not part of
infrastructure
on the market, some of the cost is also
born by the service provider.
The average per-unit cost for wiring
for broadband Internet is approximately
$200 17 (see table II). These costs are
simply estimates of one method of
complying with the requirements of the
proposed rule. Labor costs will also vary
based on the region and whether the
installation is being done as part of
substantial rehabilitation or new
construction. At most, installation of
broadband infrastructure may reduce
the provision of other amenities or
nonessential finishes, but even these
reductions are considered unlikely.
TABLE II—SAMPLE COST TO INSTALL ELECTRICAL WIRING (1 WIRING)
Quantity
Electrical Wiring Labor (Hours)
Labor estimate to install electrical wiring, route, secure, and connect new NMB–B wiring run for single receptacle, up to a 40’ run. Includes planning, equipment, and
material acquisition, area preparation and protection, setup and cleanup.
Electrical Wiring Materials and Supplies
Cost of related materials and supplies typically required to install electrical wiring including connectors, fittings, and mounting hardware.
2.1 hours ...................
$160.07
$205.10
1 Wiring (unit) ............
20.00
25.00
Total Costs (1 Wiring) ..............................................................................................
ehiers on DSK5VPTVN1PROD with PROPOSALS
Item
....................................
180.07
230.10
HUD also notes that the proposed rule
is drafted so as to minimize the costs of
the new installation requirements. For
example, the proposed rule does not
mandate any rehabilitation or
construction, and the decision to
undertake such activities appropriately
remains with recipients and owners.
Rather, the scope of the proposed
regulatory changes is limited to
requiring the installation of broadband
infrastructure if the recipient or owner
elects to undertake new construction or
substantial rehabilitation. The proposed
rule minimizes the economic impacts
on recipients and owners by recognizing
that the installation of broadband
infrastructure is generally less
burdensome and costly at the time of
new construction or substantial
rehabilitation than when such
installation is undertaken as a standalone effort.
Moreover, this proposed rule only
requires the installation of broadband
infrastructure that is ‘‘accessible’’ in
each unit. The proposed rule does not
require recipients or owners to provide
a regular subscription to broadband
Internet service (even at a cost) to
residents. Also minimizing the
economic costs of the proposed
regulatory changes is the fact that the
proposed definition of broadband
infrastructure is broad enough to
include cable television, fiber optic
cabling, and wireless infrastructure
providing appropriate broadband
connectivity to the individual units. As
discussed above in this Executive
Low
Summary, multifamily HUD or
standard- market new construction
typically provides telephone landline
and cable TV connectivity. Further,
HUD’s competitive grants for new
construction under the Choice
Neighborhoods program have, in recent
years, sought the provision of
broadband.
A review of HUD internal databases,
summarized on table III, shows that in
2013, the 58,677 units within the
targeted programs were newly
constructed or rehabilitated. However,
HUD’s data did not contain specific
information to be able to determine how
many of the units that underwent
rehabilitation met the definition of
‘‘substantial rehabilitation’’ contained in
the proposed rule, so the number of
17 https://www.homewyse.com/services/cost_to_
install_electrical_wiring.html
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High
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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules
affected units would be smaller than is
contained in the table. In addition, data
on affected units newly constructed
using CDBG funding is unavailable, as
grantee reports do not separate
multifamily from single-unit new
construction.
TABLE III—HUD-ASSISTED NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION
Sec. 8
RAD
New Construction
2012 .............................................
2013 .............................................
2014 .............................................
Rehabilitation
2012 .............................................
2013 .............................................
2014 .............................................
FY 2013 Totals .....................
ehiers on DSK5VPTVN1PROD with PROPOSALS
Sec. 8
202
HOPE VI
PIH
CDBG
HOME
Rental
Totals
506
583
482
2,405
2,034
1,592
................
................
................
146
44
................
703
297
................
................
................
19,424
11,596
22,492
................
199
................
................
15
28
25
................
15
................
109
................
................
................
................
36
16
................
20,918
15,716
14,928
6,965
36,185
................
................
................
................
................
................
................
................
58,677
18 For example under ‘‘Class 4 Low Average
Quality’’ the Craftsman 2015 National Building Cost
Manual lists cable TV as a standard feature. Only
‘‘Class 5’’ minimum quality does not list cable or
a computer network as a standard feature. All
electrical work is estimated to be 10 percent of
project cost. 2015 National Building Cost Manual,
supra, p. 19.
18 NAHB, Multifamily Market Survey, supra.
19 Note that HUD’s definition of accessibility is
more restrictive than the FCC’s because HUD
considers only the building itself.
20 United States Department of Housing and
Urban Development. ‘‘Choice Neighborhoods
Planning Grants Notice of Funding Availability,’’
supra, p. 32. ‘‘Broadband Access. All FY2014 and
FY2015 Implementation Grantees will be required,
as part of their Transformation Plan, to include
infrastructure that permits unit-based access to
broadband Internet connectivity in all new units.
Grantees may use Choice Neighborhoods funds to
provide unit-based broadband Internet connectivity,
which includes the costs of installing broadband
infrastructure and hardware in units, but not the
costs of Internet service for residents. Regular and
informed Internet adoption can increase access to
the job market, as well as health, education,
financial and other services. Further, in-home
broadband Internet access is an attractive, and in
most cases, standard amenity that can be used to
market the mixed-income community created
through the Transformation Plan.’’
15:26 May 17, 2016
202
PRAC
................
110
100
Further, a review found that
multifamily (5-plus unit) HUD or
standard-market new construction
typically provides telephone landline
and many provide cable TV
connectivity.18 A recent survey by the
National Association of Homebuilders
found that just 4 percent of the surveyed
multifamily housing developers did not
install landline wires and jacks in
multifamily units completed in the past
12 months.18 19 In recent years, HUD’s
competitive grants for new construction
under the Choice Neighborhoods
program have required the provision of
broadband.20 Therefore, this proposed
rule simply codifies what is considered
common practice in several programs.
Accordingly, most recipients and
owners already meet the standards
established in the proposed rule, and
the new regulatory requirements will
VerDate Sep<11>2014
811
PRAC
Jkt 238001
impose minimal, if any, new economic
costs. HUD has addressed those rare
situations where the proposed new
requirements may prove too costly by
granting exceptions to the installation
requirements where the installation is
economically infeasible due to location
or building characteristics.
The docket file is available for public
inspection in the Regulations Division,
Office of General Counsel, Department
of Housing and Urban Development,
451 7th Street SW., Room 10276,
Washington, DC 20410–0500. Due to
security measures at the HUD
Headquarters building, please schedule
an appointment to review the docket file
by calling the Regulation Division at
202–708–3055 (this is not a toll-free
number). Individuals with speech or
hearing impairments may access this
number via TTY by calling the Federal
Relay Service at 800–877–8339 (this is
a toll-free number).
grantees may take using HUD funds.
Therefore, small entities will not incur
any costs than they otherwise would
incur by voluntarily undertaking new
construction or substantial
rehabilitation, since the costs of these
activities, including the installation of
broadband infrastructure, are funded by
HUD. For these reasons, this proposed
rule will not have a significant
economic impact on a substantial
number of small entities.
Notwithstanding HUD’s
determination that this proposed rule
will not have a significant economic
effect on a substantial number of small
entities, HUD specifically invites
comments regarding any less
burdensome alternatives to this
proposed rule that will meet HUD’s
objectives, as described in this
preamble.
Impact on Small Entities
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.
The proposed rule would provide that
for new construction or substantial
rehabilitation of multifamily rental
housing funded by HUD, as part of the
new construction or substantial
rehabilitation to be undertaken, such
activity must include installation of
broadband infrastructure. None of the
HUD-covered programs listed in this
proposed rule require a grantee to
undertake new construction or
substantial rehabilitation. Instead, new
construction and substantial
rehabilitation are eligible activities that
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) establishes
requirements for Federal agencies to
assess the effects of their regulatory
actions on State, local, and tribal
governments and the private sector.
This proposed rule will not impose any
Federal mandates on any State, local, or
tribal governments or the private sector
within the meaning of the UMRA.
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Fmt 4702
Sfmt 4702
Unfunded Mandates Reform Act
Paperwork Reduction Act
The information collection
requirements contained in this proposed
rule must be submitted to OMB under
the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520) for review and
approval. In accordance with the
Paperwork Reduction Act, an agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless the
collection displays a currently valid
OMB control number.
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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules
the information collection that is new is
the documentation required of the
grantee that the location of proposed
new construction makes installation of
broadband infrastructure infeasible, or
that the cost of installing the
infrastructure would result in a
fundamental alteration in the nature of
The burden of the information
collections in this proposed rule is
estimated to be minimal. The reporting
of new construction or substantial
rehabilitation activity under the
programs covered by this proposed rule
is not increased through the installation
of broadband infrastructure. However,
its program or activity or in an undue
financial burden. The total number of
grantees that undertake new
construction or substantial
rehabilitation, as defined in this
proposed rule, with HUD funds is
currently low, and this is reflected in
the respondents.
REPORTING AND RECORDKEEPING BURDEN
Number of
respondents
Information collection
Response
frequency
(average)
Burden hours
per response
Total burden
hours
Documentation of inability to undertake installation of broadband infrastructure ...............................................................................................................
1,000
1
2
2,000
Totals ........................................................................................................
1,000
1
2
2,000
ehiers on DSK5VPTVN1PROD with PROPOSALS
In accordance with 5 CFR
1320.8(d)(1), HUD is soliciting
comments from members of the public
and affected agencies concerning this
collection of information to:
(1) Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
(2) Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information;
(3) Enhance the quality, utility, and
clarity of the information to be
collected; and
(4) Minimize the burden of the
collection of information on those who
are to respond; including through the
use of appropriate automated collection
techniques or other forms of information
technology, e.g., permitting electronic
submission of responses.
Interested persons are invited to
submit comments regarding the
information collection requirements in
this proposed rule. Comments must
refer to the proposal by name and
docket number (FR–5890–P–01) and
must be sent to: HUD Desk Officer,
Office of Management and Budget, New
Executive Office Building, Washington,
DC 20503, Fax number: 202–395–6947,
and Collette Pollard, Reports Liaison
Officer, Department of Housing and
Urban Development, 451 7th Street SW.,
Washington, DC 20410.
Environmental Review
A Finding of No Significant Impact
(FONSI) with respect to the
environment has been made in
accordance with HUD regulations in 24
CFR part 50 that implement section
102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C.
4332(2)(C)). The FONSI is available for
public inspection, during regular
VerDate Sep<11>2014
15:26 May 17, 2016
Jkt 238001
business hours, in the Regulations
Division, Office of General Counsel,
Department of Housing and Urban
Development, 451 7th Street SW., Room
10276, Washington, DC 20410–0500, or
online at www.regulations.gov. Due to
security measures at the HUD
Headquarters building, please schedule
an appointment to review the FONSI by
calling the Regulations Division at 202–
708–3055 (this is not a toll-free
number). Individuals with speech or
hearing impairments may access this
number via TTY by calling the Federal
Relay Service at 800–877–8339 (this is
a toll-free number).
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
proposed rule does not have federalism
implications and does not impose
substantial direct compliance costs on
State and local governments nor
preempt State law within the meaning
of the Executive order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance numbers applicable to the
programs that would be affected by this
rule are: 14.218, 14.225, 14.228, 14.239,
14.241, 14.267, 14.850, 14.871, and
14.872.
List of Subjects
24 CFR Part 5
Administrative practice and
procedure, Aged, Claims, Crime,
Government contracts, Grant programs-
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Fmt 4702
Sfmt 4702
housing and community development,
Individuals with disabilities,
Intergovernmental relations, Loan
programs-housing and community
development, Low and moderate
income housing, Mortgage insurance,
Penalties, Pets, Public housing, Rent
subsidies, Reporting and recordkeeping
requirements, Social security,
Unemployment compensation, Wages.
24 CFR Part 92
Administrative practice and
procedure, Low and moderate income
housing, Manufactured homes, Rent
subsidies, Reporting and recordkeeping
requirements.
24 CFR Part 93
Administrative practice and
procedure, Grant programs-housing and
community development, Low and
moderate income housing,
Manufactured homes, Rent subsidies,
Reporting and recordkeeping
requirements.
24 CFR Part 570
Administrative practice and
procedure, American Samoa,
Community development block grants,
Grant programs-education, Grant
programs-housing and community
development, Guam, Indians, Loan
programs-housing and community
development, Low and moderate
income housing, Northern Mariana
Islands, Pacific Islands Trust Territory,
Puerto Rico, Reporting and
recordkeeping requirements, Student
aid, Virgin Islands.
24 CFR Part 574
Community facilities, Grant programshousing and community development,
Grant programs-social programs, HIV/
AIDS, Low and moderate income
housing, Reporting and recordkeeping
requirements.
E:\FR\FM\18MYP1.SGM
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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules
24 CFR Part 578
Community development,
Community facilities, Grant programshousing and community development,
Grant programs-social programs,
Homeless, Reporting and recordkeeping
requirements.
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.
24 CFR Part 884
Grant programs-housing and
community development, Rent
subsidies, Reporting and recordkeeping
requirements, Rural areas.
24 CFR Part 886
Grant programs-housing and
community development, Lead
poisoning, Rent subsidies, Reporting
and recordkeeping requirements.
24 CFR Part 891
Aged, Grant programs-housing and
community development, Individuals
with disabilities, Loan programshousing and community development,
Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 905
Grant programs-housing and
community development, Public
housing, Reporting and recordkeeping
requirements.
ehiers on DSK5VPTVN1PROD with PROPOSALS
24 CFR Part 983
Grant programs-housing and
community development, Low and
moderate income housing, Rent
subsidies, Reporting and recordkeeping
requirements.
Accordingly, for the reasons stated in
the preamble, HUD proposes to amend
24 CFR parts 5, 92, 93, 570, 574, 578,
880, 881, 883, 884, 886, 891, 905, and
983 as follows:
PART 5—GENERAL HUD PROGRAM
REQUIREMENTS; WAIVERS
1. The authority citation for part 5
continues to read as follows:
■
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15:26 May 17, 2016
Jkt 238001
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
1437n, 3535(d), Sec. 327, Pub. L. 109–115,
119 Stat. 2936, Sec. 607, Pub. L. 109–162,
119 Stat. 3051, E.O. 13279, and E.O. 13559.
2. In § 5.100, add the definitions of
‘‘Broadband infrastructure’’ and
‘‘Substantial rehabilitation’’ in
alphabetical order, to read as follows:
■
§ 5.100
Definitions.
*
*
*
*
*
Broadband infrastructure means
cables, fiber optics, wiring, or other
permanent (integral to the structure)
infrastructure that is capable of
providing access to Internet connections
in individual housing units that meet
the definition of ‘‘advanced
telecommunications capability’’
determined by the Federal
Communications Commission under
section 706 of the Telecommunications
Act of 1996 (47 U.S.C. 1302).
*
*
*
*
*
Substantial rehabilitation, for the
purposes of determining when
installation of broadband infrastructure
is required as part of substantial
rehabilitation of multifamily rental
housing, unless otherwise defined by a
program, means work that involves:
(1) Significant work on the electrical
system of the multifamily rental
housing. ‘‘Significant work’’ means
complete replacement of the electrical
system or other work that is equal to or
greater than 75 percent of the cost of
replacing the entire electrical system. In
the case of multifamily rental housing
with multiple buildings with more than
4 units, ‘‘entire system’’ refers to the
electrical system of the building
undergoing rehabilitation; or
(2) Rehabilitation of the multifamily
rental housing in which the estimated
cost of the rehabilitation is equal to or
greater than 75 percent of the total
estimated cost of replacing the
multifamily rental housing after the
rehabilitation is complete. In the case of
multifamily rental housing with
multiple buildings with more than 4
units, the replacement cost must be the
replacement cost of the building
undergoing rehabilitation.
*
*
*
*
*
PART 92—HOME INVESTMENT
PARTNERSHIPS PROGRAM
3. The authority citation for part 92
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d) and 12701–
12839.
4. Amend § 92.251 by revising the
introductory text of (a)(2) and adding
paragraphs (a)(2)(vi) and (b)(1)(x) to read
as follows:
■
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§ 92.251
31189
Property standards.
(a) * * *
(2) HUD requirements. All new
construction projects must also meet the
requirements described in this
paragraph:
* * *
(vi) Broadband infrastructure. If the
housing is a building with more than 4
rental units, the construction must
include installation of broadband
infrastructure, as this term is defined in
24 CFR 5.100, except where the
participating jurisdiction documents
that:
(A) The location of the new
construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing the
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. If the
housing is a building with more than 4
rental units, any substantial
rehabilitation, as defined in 24 CFR
5.100, must provide for installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the participating jurisdiction
documents that:
(A) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(B) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(C) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
PART 93—HOUSING TRUST FUND
5. The authority citation for part 93
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d), 12 U.S.C.
4568.
6. Amend § 93.301 by revising the
introductory text of (a)(2) and adding
paragraphs (a)(2)(vi) and (b)(1)(x) to read
as follows:
■
§ 93.301
Property standards.
(a) * * *
(2) HUD requirements. All new
construction projects must also meet the
requirements described in this
paragraph:
* * *
(vi) Broadband infrastructure. If the
housing is a building with more than 4
rental units, the construction must
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include installation of broadband
infrastructure, as this term is defined in
24 CFR 5.100, except where the grantee
documents that:
(A) The location of the new
construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. If the
housing is a building with more than 4
rental units, any substantial
rehabilitation, as defined in 24 CFR
5.100, must provide for installation of
broadband infrastructure, as this term is
defined in 24 CFR 5.100, except where
the grantee documents that:
(A) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(B) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(C) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
PART 570—COMMUNITY
DEVELOPMENT BLOCK GRANTS
7. The authority citation for part 570
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d) and 5301–
5320.
8. In § 570.202, add paragraph (g) to
read as follows:
■
§ 570.202 Eligible rehabilitation and
preservation activities.
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*
*
*
*
*
(g) Broadband infrastructure. Any
substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more
than 4 rental units must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the grantee
documents that:
(1) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
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9. In § 570.204 add paragraph (a)(5) to
read as follows:
■
§ 570.204 Special activities by CommunityBased Development Organizations
(CBDOs).
(a) * * *
(5) Any new construction or
substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more
than 4 rental units must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the grantee
documents that:
(i) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(ii) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(iii) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
■ 10. Add paragraph (c)(4) to § 570.482
to read as follows:
§ 570.482
Eligible activities.
*
*
*
*
(c) * * *
(4) Broadband infrastructure in
housing. Any new construction or
substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more
than 4 rental units must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the State
documents that:
(i) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(ii) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(iii) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
PART 574—HOUSING
OPPORTUNITIES FOR PERSONS WITH
AIDS
11. The authority citation for part 574
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d) and 12901–
12912.
12. Add § 574.350 to subpart D to read
as follows:
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Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
574.3, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
defined in 24 CFR 5.100, except where
the grantee documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 578—CONTINUUM OF CARE
PROGRAM
13. The authority citation for part 578
continues to read as follows:
■
Authority: 42 U.S.C. 11371 et seq., 42
U.S.C. 3535(d).
14. In § 578.45, add paragraph (d) to
read as follows:
■
*
■
§ 574.350 Additional standards for
broadband infrastructure.
§ 578.45
Rehabilitation.
*
*
*
*
*
(d) Broadband infrastructure. Any
substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more
than 4 rental units must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the grantee
documents that:
(1) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
■ 15. In § 578.47, add paragraph (c) to
read as follows:
§ 578.47
New construction.
*
*
*
*
*
(c) Broadband infrastructure. Any
new construction of a building with
more than 4 rental units must include
installation of broadband infrastructure,
as this term is defined in 24 CFR 5.100,
except where the grantee documents
that:
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(1) The location of the new
construction makes installation of
broadband infrastructure infeasible; or
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden.
PART 880—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM
FOR NEW CONSTRUCTION
16. The authority citation for part 880
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), 12701, and 13611–13619.
17. Add § 880.212 to subpart B to read
as follows:
■
§ 880.212
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as defined by 24 CFR
5.100, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 881—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM
FOR SUBSTANTIAL REHABILITATION
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 883—SECTION 8 HOUSING
ASSISTANCE PAYMENTS
PROGRAM—STATE HOUSING
AGENCIES
PART 886—SECTION 8 HOUSING
ASSISTANCE PAYMENTS
PROGRAM—SPECIAL ALLOCATIONS
20. The authority citation for part 883
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
21. Add § 883.314 to subpart C to read
as follows:
■
§ 883.314
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as defined by 24 CFR
5.100, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 884—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM,
NEW CONSTRUCTION SET–ASIDE
FOR SECTION 515 RURAL RENTAL
HOUSING PROJECTS
22. The authority citation for part 884
continues to read as follows:
■
18. 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.
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
19. Add § 881.212 to subpart B to read
as follows:
■
§ 881.212
§ 884.125
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■
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as defined by 24 CFR
5.100, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
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23. Add § 884.125 to subpart A to read
as follows:
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as defined by 24 CFR
5.100, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
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Fmt 4702
Sfmt 4702
24. The authority citation for part 886
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
25. Add § 886.139 to subpart A to read
as follows:
■
§ 886.139
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as defined by 24 CFR
5.100, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
■ 26. Add § 886.339 to subpart C to read
as follows:
§ 886.339
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as defined by 24 CFR
5.100, of a building with more than 4
rental units must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 891—SUPPORTIVE HOUSING
FOR THE ELDERLY AND PERSONS
WITH DISABILITIES
27. The authority citation for part 891
continues to read as follows:
■
Authority: 12 U.S.C. 1701q; 42 U.S.C.
1437f, 3535(d), and 8013.
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broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the PHA documents that:
§ 891.120 Project design and cost
(1) The location of the new
standards.
construction or substantial
*
*
*
*
*
rehabilitation makes installation of
(f) Broadband infrastructure. Any new broadband infrastructure infeasible;
construction or substantial
(2) The cost of installing broadband
rehabilitation, as defined by 24 CFR
infrastructure would result in a
5.100, of a building with more than 4
fundamental alteration in the nature of
rental units must include installation of its program or activity or in an undue
broadband infrastructure, as this term is financial burden; or
(3) The structure of the housing to be
also defined in 24 CFR 5.100, except
rehabilitated makes installation of
where the owner documents that:
broadband infrastructure infeasible.
(1) The location of the new
construction or substantial
PART 983—PROJECT–BASED
rehabilitation makes installation of
VOUCHER (PBV) PROGRAM
broadband infrastructure infeasible;
(2) The cost of installing broadband
■ 32. The authority citation for part 983
infrastructure would result in a
continues to read as follows:
fundamental alteration in the nature of
Authority: 42 U.S.C. 1437f and 3535(d).
its program or activity or in an undue
■ 33. Add § 983.157 to subpart D to read
financial burden; or
as follows:
(3) The structure of the housing to be
substantially rehabilitated makes
§ 983.157 Broadband infrastructure.
installation of broadband infrastructure
Any new construction or substantial
infeasible.
rehabilitation, as defined by 24 CFR
■ 29. Add § 891.550 to subpart E to read
5.100, of a building with more than 4
as follows:
rental units must include installation of
broadband infrastructure, as this term is
§ 891.550 Broadband infrastructure.
also defined in 24 CFR 5.100, except
Any new construction or substantial
where the owner documents that:
rehabilitation, as defined by 24 CFR
(1) The location of the new
5.100, of a building with more than 4
construction or substantial
rental units must include installation of
broadband infrastructure, as this term is rehabilitation makes installation of
broadband infrastructure infeasible;
also defined in 24 CFR 5.100, except
(2) The cost of installing broadband
where the owner documents that:
infrastructure would result in a
(1) The location of the new
fundamental alteration in the nature of
construction or substantial
its program or activity or in an undue
rehabilitation makes installation of
financial burden; or
broadband infrastructure infeasible;
(3) The structure of the housing to be
(2) The cost of installing broadband
substantially rehabilitated makes
infrastructure would result in a
installation of broadband infrastructure
fundamental alteration in the nature of
infeasible.
its program or activity or in an undue
Dated: April 21, 2016.
financial burden; or
´
Julian Castro,
(3) The structure of the housing to be
Secretary.
substantially rehabilitated makes
[FR Doc. 2016–11352 Filed 5–17–16; 8:45 am]
installation of broadband infrastructure
infeasible.
BILLING CODE 4210–67–P
28. In § 891.120, add paragraph (f) to
read as follows:
■
PART 905—THE PUBLIC HOUSING
CAPITAL FUND PROGRAM
30. The authority citation for part 905
continues to read as follows:
■
Authority: 42 U.S.C. 1437g, 42 U.S.C.
1437z-2, 42 U.S.C. 1437z-7, and 3535(d).
RIN 2506–AC41
31. In § 905.312, add paragraph (e) to
read as follows:
ehiers on DSK5VPTVN1PROD with PROPOSALS
Design and construction.
*
*
*
*
*
(e) Broadband infrastructure. Any
new construction or substantial
rehabilitation, as defined in 24 CFR
5.100, of a building with more than 4
rental units must include installation of
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24 CFR Part 91
[Docket No. FR 5891–P–01]
■
§ 905.312
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Modernizing HUD’s Consolidated
Planning Process To Narrow the
Digital Divide and Increase Resilience
to Natural Hazards
Office of the Assistant
Secretary for Community Planning and
Development, Department of Housing
and Urban Development.
AGENCY:
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ACTION:
Proposed rule.
HUD’s Consolidated Plan is a
planning mechanism designed to help
States and local governments to assess
their affordable housing and community
development needs and to make datadriven, place-based investment
decisions. The consolidated planning
process serves as the framework for a
community-wide dialogue to identify
housing and community development
priorities that align and focus funding
from HUD’s formula block grant
programs. This proposed rule would
amend HUD’s Consolidated Plan
regulations to require that jurisdictions
consider two additional concepts in
their planning efforts.
The first concept is how to address
the need for broadband access for lowand moderate-income residents in the
communities they serve. Broadband is
the common term used to refer to a
high-speed, always on connection to the
Internet. Such connection is also
referred to as high-speed broadband or
high-speed Internet. Specifically, the
proposed rule would require that States
and localities that submit a consolidated
plan describe the broadband access in
housing occupied by low- and
moderate-income households. If lowincome residents in the communities do
not have such access, States and
jurisdictions must consider providing
broadband access to these residents into
their decisions on how to invest HUD
funds. The second concept to be added
to the Consolidated Plan process would
require jurisdictions to consider
incorporating resilience to natural
hazard risks, taking care to anticipate
how risks will increase due to climate
change, into development of the Plan in
order to begin addressing impacts of
climate change on low- and moderateincome residents.
DATES: Comments Due Date: July 18,
2016.
SUMMARY:
Interested persons are
invited to submit comments responsive
to this proposed rule to the Office of
General Counsel, Regulations Division,
Department of Housing and Urban
Development, 451 7th Street SW., Room
10276, Washington, DC 20410–0001. All
submissions should refer to the above
docket number and title. Submission of
public comments may be carried out by
hard copy or electronic submission.
1. Submission of Hard Copy
Comments. Comments may be
submitted by mail or hand delivery.
Each commenter submitting hard copy
comments, by mail or hand delivery,
should submit comments to the address
above, addressed to the attention of the
ADDRESSES:
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]]>Agencies
[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)]
[Proposed Rules]
[Pages 31181-31192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11352]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 /
Proposed Rules
[[Page 31181]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 92, 93, 570, 574, 578, 880, 881, 883, 884, 886,
891, 905, 983
[Docket No. FR 5890-P-01]
RIN 2501-AD75
Narrowing the Digital Divide Through Installation of Broadband
Infrastructure in HUD-Funded New Construction and Substantial
Rehabilitation of Multifamily Rental Housing
AGENCY: Office of the Secretary, HUD.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: Through this proposed rule, HUD continues its efforts to
narrow the digital divide in low-income communities served by HUD by
providing, where feasible and with HUD funding, broadband
infrastructure to communities in need of such infrastructure. Broadband
is the common term used to refer to a very fast connection to the
Internet. Such connection is also referred to as high-speed broadband,
broadband Internet, or high-speed Internet. In this proposed rule, HUD
proposes to require installation of broadband infrastructure at the
time of new construction or substantial rehabilitation of multifamily
rental housing that is funded or supported by HUD. Installation of
broadband infrastructure at the time of new construction or substantial
rehabilitation is generally easier and less costly than when such
installation is undertaken as a stand-alone effort. The proposed rule,
however, recognizes that installation of broadband infrastructure may
not be feasible for all new construction or substantial rehabilitation,
and, therefore, the proposed rule allows limited exceptions to the
installation requirements. Installing unit-based broadband
infrastructure in multifamily rental housing that is newly constructed
or substantially rehabilitated with or supported by HUD funding will
provide a platform for individuals and families residing in such
housing to participate in the digital economy, and increase their
access to economic opportunities.
DATES: Comment due date: July 18, 2016.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule. All communications must refer to the above docket
number and title. To receive consideration as public comments, comments
must be submitted through one of the two methods specified below.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW., Room 10276,
Washington, DC 20410-0500.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make comments immediately available
to the public. Comments submitted electronically through the
www.regulations.gov Web site can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
No Facsimiled Comments. Facsimiled (faxed) comments are not
acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the
above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments must be
scheduled by calling the Regulations Division at 202-708-3055 (this is
not a toll-free number). Individuals with speech or hearing impairments
may access this number via TTY by calling the Federal Relay Service at
800-877-8339 (this is a toll-free number). Copies of all comments
submitted are available for inspection and downloading at
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For Community Planning and Development
programs, Marion McFadden, Office of Community Planning and
Development, Room 7204, telephone, 202-708-2111 (this is not a toll-
free number). For Office of Multifamily Housing programs, Katie
Buckner, Office of Housing, Room 6222, telephone 202-402-7140 (this is
not a toll-free number). For Office of Public and Indian Housing
programs, Dominique Blom, Office of Public and Indian Housing, Room
4130, telephone 202-402-4181 (this is not a toll-free number). The
address for all individuals is Department of Housing and Urban
Development, 451 7th Street SW., Washington, DC 20410-0500. Persons
with hearing or speech impairments may access these numbers through TTY
by calling the Federal Relay Service at 800-877-8339 (this is a toll-
free number).
SUPPLEMENTARY INFORMATION:
I. Executive Summary
A. Purpose of This Proposed Rule
The purpose of this proposed rule is to require installation of
broadband infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental housing that is funded or
supported by HUD.\1\ This rulemaking does not require a HUD-funded
grantee to undertake new construction or substantial rehabilitation,
but when a grantee does choose to pursue such activity for multifamily
rental housing with HUD funding, this proposed rule would require
installation of broadband infrastructure. While the proposed rule only
requires affected grantees to install one form of broadband
infrastructure, HUD suggests that grantees consider whether installing
more than one form of broadband infrastructure would be beneficial to
encourage competition among service providers on quality and price.
Installing unit-based broadband infrastructure in multifamily rental
housing that is newly constructed and
[[Page 31182]]
substantially rehabilitated with or supported by HUD funding will
provide a platform for individuals and families residing in such
housing to participate in the digital economy, and increase their
access to economic opportunities.
---------------------------------------------------------------------------
\1\ This proposed rule applies to all projects with project-
based Section 8 housing assistance payment (HAP) contracts (other
than Mod Rehab or Mod Rehab Single Room Occupancy (SRO) projects),
regardless of whether the properties receive specific funding to pay
directly for substantial rehabilitation or new construction, as
defined in this proposed rule.
---------------------------------------------------------------------------
B. Summary of Major Provisions of This Proposed Rule
This proposed rule would require installation of broadband
infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental units funded by the following
programs:
1. Choice Neighborhoods Implementation Grant program;
2. Community Development Block Grant (CDBG) program, including the
CDBG Disaster Recovery program;
3. Continuum of Care program;
4. HOME Investment Partnerships program;
5. Housing Opportunities for Persons With AIDS program;
6. Housing Trust Fund program;
7. Project-Based Voucher program;
8. Public Housing Capital Fund program;
9. Section 8 project-based housing assistance payments programs,
including, but not limited to, the Section 8 New Construction,
Substantial Rehabilitation, Loan Management Set-Aside, and Property
Disposition programs; and
10. Supportive Housing for the Elderly and Persons with
Disabilities program.
The requirements of the proposed rule would not apply to
multifamily rental housing that only has a mortgage insured by HUD's
Federal Housing Administration or with a loan guaranteed under a HUD
loan guarantee program.
HUD is proposing to define broadband infrastructure as cables,
fiber optics, wiring, or other permanent infrastructure, including
wireless infrastructure, as long as the installation results in
broadband infrastructure in each dwelling unit meeting the definition
created by the Federal Communications Commission (FCC), which currently
is 25 Megabits per second (Mbps) download, 3 Mbps upload. In addition,
HUD is proposing that, for programs that do not already have a
definition of substantial rehabilitation, substantial rehabilitation be
defined as work on the electrical system that is equal to or greater
than 75 percent of the cost of replacing the entire electrical system,
or when the cost of the rehabilitation is equal to or greater than 75
percent of the total estimated cost of replacing the multifamily rental
housing after the rehabilitation is complete.
C. Costs and Benefits of This Proposed Rule
The costs and benefits of this proposed rule are difficult to
quantify, but they can be described qualitatively. This proposed rule
only requires that the broadband infrastructure provided is to receive
high-speed Internet that is ``accessible'' in each unit; it does not
require those recipients of funding undertaking new construction or
substantial rehabilitation to provide a regular subscription to
broadband service (even at a cost) to current or future residents.
Furthermore, the definition of broadband infrastructure in the proposed
rule is broad enough to include coaxial cable television (TV) wiring
that supports cable modem access or even permanent infrastructure that
would provide broadband speeds to dwelling units wirelessly. The
rulemaking also provides for exceptions to the installation
requirements for where the installation is too costly to provide due to
location or building characteristics.
A recent survey by the National Association of Homebuilders found
that just 4 percent of the surveyed multifamily housing developers
never installed landline wires and jacks in multifamily units completed
in the past 12 months.\2\ In recent years, HUD's competitive grants for
new construction under the Choice Neighborhoods program have sought the
provision of broadband access. Therefore, this rulemaking simply
proposes to codify what is considered common practice in the private
market today when new construction or substantial rehabilitation is
undertaken.
---------------------------------------------------------------------------
\2\ NAHB, Multifamily Market Survey 3rd Quarter 2015. November
2015. There were 90 responses, and of the responses, 18 percent
indicated it was Not Applicable, presumably because they had not
completed any projects in the past 12 months. The survey covers all
multifamily construction including lower quality Class B and Class
C. It does not provide details on the developers or projects that
did not install landlines.
---------------------------------------------------------------------------
Given the wide range of technologies that may be employed to meet
the requirements of this proposed rule, it is not possible to specify
the cost of the technology and how much additional burden this may be
for owners or developers building or providing substantial
rehabilitation to HUD-assisted rental housing. If the broadband
infrastructure is wiring connected to proximate telephone or cable
company networks, the cost is not expected to be significant, as all
electrical work in a multifamily project is estimated to be only about
10 percent of the construction cost; \3\ running an additional cable
through existing electrical conduits would be a minimal incremental
cost. If the broadband infrastructure is wireless, the cost will be for
the equipment, which varies greatly by the design and size of the
project, as does the cost per unit. Given that the costs of
installation of broadband infrastructure are only a portion of the 10
percent of construction costs, the requirement proposed by this
rulemaking is not expected to measurably reduce the size of the housing
or the number of units to be constructed. At most, installation of
broadband infrastructure may reduce the provision of other amenities or
nonessential finishes, but HUD considers even these reductions.
Additionally, the proposed rule only applies to new construction or
substantial rehabilitation that is supported with HUD-provided
resources.
---------------------------------------------------------------------------
\3\ 2015 National Building Cost Manual. Ed. Ben Moselle.
Carlsbad, CA: Craftsman Book Company. https://www.craftsman-book.com/media/static/previews/2015_NBC_book_preview.pdf, pg. 19.
---------------------------------------------------------------------------
Materials on the benefits of narrowing the digital divide are
voluminous. Having broadband Internet in the home increases household
income \4\ and yields higher education achievement for students.\5\ On
July 2015, the Council of Economic Advisers issued the report ``Mapping
the Digital Divide,'' which examines progress in the United States in
narrowing the digital divide and the work that still needs to be done,
especially in the Nation's poorest neighborhoods and most rural
communities.\6\ However, this proposed rule's limited scope in only
requiring the installation of infrastructure instead of providing
Internet access also limits the benefits of the proposed rule. The
benefit of the proposed rule is that where broadband Internet service
can be made available, the tenant, residing in housing with broadband
infrastructure, will be assured of the ability to access broadband
Internet service, whether they choose and are able to afford Internet
service or not. This puts
[[Page 31183]]
broadband Internet service within reach, especially where other
charitable and public social programs, including HUD's ConnectHome
program, provide free or reduced-cost service.
---------------------------------------------------------------------------
\4\ Ericsson, Arthur D. Little, and Chalmers University of
Technology. Socioeconomic Effects of Broadband Speed. September
2013. https://www.ericsson.com/res/thecompany/docs/corporate-responsibility/2013/ericsson-broadband-final-071013.pdf.
\5\ Davidson, Charles M. and Michael J. Santorelli. ``The Impact
of Broadband on Education.'' December 2010. https://www.uschamber.com/sites/default/files/legacy/about/US_Chamber_Paper_on_Broadband_and_Education.pdf, pg. 24.
\6\ See Council of Economic Advisers. ``Mapping the Digital
Divide.'' Issue Brief. July 2015. https://www.whitehouse.gov/sites/default/files/wh_digital_divide_issue_brief.pdf.
---------------------------------------------------------------------------
II. Background
On March 23, 2015, President Obama issued a Presidential memorandum
on ``Expanding Broadband Deployment and Adoption by Addressing
Regulatory Barriers and Encouraging Investment and Training.'' \7\ In
this memorandum, the President noted that access to high-speed
broadband is no longer a luxury, but it is a necessity for American
families, businesses, and consumers. The President further noted that
the Federal Government has an important role to play in developing
coordinated policies to promote broadband deployment and adoption,
including promoting best practices, breaking down regulatory barriers,
and encouraging further investment.
---------------------------------------------------------------------------
\7\ See Barack Obama. ``Presidential Memorandum--Expanding
Broadband Deployment and Adoption by Addressing Regulatory Barriers
and Encouraging Investment and Training.'' March 23, 2015. https://www.whitehouse.gov/the-press-office/2015/03/23/presidential-memorandum-expanding-broadband-deployment-and-adoption-addr.
---------------------------------------------------------------------------
On July 15, 2015, HUD launched its Digital Opportunity
Demonstration, known as ``ConnectHome,'' in which HUD provided a
platform for collaboration among local governments, public housing
agencies, Internet service providers, philanthropic foundations,
nonprofit organizations, and other relevant stakeholders to work
together to produce local solutions for narrowing the digital divide in
communities across the nation served by HUD. The demonstration, or
pilot, commenced with the participation of 28 communities.\8\ Through
contributions made by the Internet service providers and other
organizations participating in the pilot, residents living in public
and HUD-assisted housing in these 28 communities will receive
discounted broadband service, technical assistance, literacy training,
and electronic devices that provide for accessing high-speed Internet.
---------------------------------------------------------------------------
\8\ See Connect Home. ``About the Pilot.'' https://connecthome.hud.gov/pilot.
---------------------------------------------------------------------------
The importance of all Americans having access to the Internet
cannot be overstated. As HUD stated in its announcement of the Digital
Opportunity Demonstration, published in the Federal Register on April
3, 2015, at 80 FR 18248, knowledge is a pillar to achieving the
American Dream--a catalyst for upward mobility as well as an investment
that ensures each generation has opportunities to succeed. Many low-
income Americans do not have broadband Internet at home, contributing
to the estimated 66 million Americans who lack basic digital literacy
skills.\9\ Without broadband adoption and the skills to use Internet
technology at home, children and adults can miss out on the high-value
educational, economic, and social impact that high-speed Internet
provides. It is for these reasons that HUD is exploring ways, beyond
ConnectHome, to narrow the digital divide for the low-income
individuals and families served by HUD multifamily rental housing
programs. This proposed rule presents one such additional effort.
---------------------------------------------------------------------------
\9\ See Connect Minnesota. ``Digital Literacy: A Critical Skill
for all Minnesotans.'' July 2013. https://www.connectednation.org/sites/default/files/mn_digital_literacy_final.pdf.
---------------------------------------------------------------------------
III. This Proposed Rule
A. Multifamily Rental Housing Covered by This Proposed Rule
This proposed rule would apply to new construction and substantial
rehabilitation of multifamily rental housing in the HUD programs that
authorize and fund such activities. These programs are listed in
Section II.B of this preamble. The proposed rule would not apply to
multifamily rental housing with a mortgage insured by HUD's Federal
Housing Administration (FHA) or with a loan guaranteed under a HUD loan
guarantee program.\10\ Further, this proposed rule would not apply to
new construction or substantial rehabilitation of single-family or
single-unit housing.
---------------------------------------------------------------------------
\10\ See the Section 108 Loan Guarantee program, for which the
regulations are found in 24 CFR part 570, subpart M; the Loan
Guarantee program for Indian Housing, for which the regulations are
found in 24 CFR part 1005; the Section 184 Loan Guarantees for
Native Hawaiian Housing, for which the regulations are found in 24
CFR part 1007; and the Title VI Loan Guarantee Program, for which
the regulations are found in 24 CFR part 1000, subpart E.
---------------------------------------------------------------------------
HUD proposes to require installation of broadband infrastructure in
individual housing units at the time of new construction or substantial
rehabilitation of multifamily rental housing, because while such
installation is not without cost, the cost can be reduced by providing
the installation at the time when housing is first being built or
substantially rehabilitated.
B. HUD Programs Covered by This Proposed Rule
As provided in section I.B. of this preamble, this proposed rule
would apply to multifamily rental housing that is to be newly
constructed or substantially rehabilitated with funds under the
following HUD programs, as implemented through the regulations or under
authorities cited below:
1. Choice Neighborhoods Implementation Grant program, for which the
requirements are found in HUD notices of funding availability (NOFAs);
2. Community Development Block Grant (CDBG) program, for which the
regulations are found in 24 CFR part 570;
3. Continuum of Care (CoC) program, for which the regulations are
found in 24 CFR part 578;
4. HOME Investment Partnerships (HOME) program, for which the
regulations are found in 24 CFR part 92;
5. Housing Opportunities for Persons With AIDS (HOPWA) program, for
which the regulations are found in 24 CFR part 574;
6. Housing Trust Fund (HTF) program, for which the regulations are
found in 24 CFR part 93;
7. Project-Based Voucher program, for which the regulations are
found in 24 CFR part 983;
8. Public Housing Capital Fund program, for which the regulations
are found in 24 CFR part 905;
9. Section 8 project-based housing assistance payments programs,
including, but not limited to, the Section 8 New Construction,
Substantial Rehabilitation, Loan Management Set-Aside, and Property
Disposition programs; and
10. Supportive Housing for the Elderly and Persons with
Disabilities program, for which the regulations are found in 24 CFR
part 891.
One of HUD's major new construction and substantial rehabilitation
programs, the Choice Neighborhoods program, already requires broadband
infrastructure in new construction units and permits the use of Choice
Neighborhood funds for broadband infrastructure in substantially
rehabilitated units. In addition, Choice Neighborhood grantees may use
up to 15 percent of their grants for Critical Community Improvements,
of which neighborhood broadband programs are considered an eligible
expense. The Choice Neighborhoods program supports locally driven
strategies to address struggling neighborhoods with distressed public
or HUD-assisted housing through a comprehensive approach to
neighborhood transformation. The program is designed to catalyze
critical improvements in neighborhood assets, including vacant
property, housing, services, and schools. One of the three core goals
of the Choice Neighborhoods program is to replace distressed public and
assisted housing with high-quality, mixed-income
[[Page 31184]]
housing.\11\ The Choice Neighborhoods program is implemented through
annual NOFAs. HUD's Fiscal Year (FY) 2014 Choice Neighborhoods NOFA
requires housing to be built with broadband Internet
infrastructure.\12\
---------------------------------------------------------------------------
\11\ United States Department of Housing and Urban Development.
``Choice Neighborhoods.'' https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/cn.
\12\ See United States Department of Housing and Urban
Development. ``Choice Neighborhoods Planning Grants Notice of
Funding Availability.'' June 4, 2014. https://portal.hud.gov/hudportal/documents/huddoc?id=13CNP-FR5800N13.pdf.
---------------------------------------------------------------------------
C. When Installation of Broadband Infrastructure May Be Infeasible
As noted in the Summary, HUD recognizes that installation of
broadband infrastructure will not be feasible for every new
construction or substantial rehabilitation of multifamily rental
housing proposed to be covered by this proposed rule. For example, HUD
recognizes that constructing or undertaking substantial rehabilitation
of multifamily rental housing in certain areas may make installation of
broadband infrastructure infeasible. As the Rural Utilities Service of
the U.S. Department of Agriculture (USDA) stated in a final rule
entitled ``Economic Benefits of Broadband Deployment in Rural Areas,''
published on February 6, 2013,\13\ bringing broadband services to rural
areas presents challenges because rural systems must contend with lower
household density than urban systems. Similarly, the particular type or
structure of covered multifamily rental housing to be substantially
rehabilitated may also make the installation of broadband
infrastructure infeasible. The proposed rule therefore offers
exceptions to broadband installation requirements when a funding
recipient determines that installing broadband infrastructure is not
feasible. Recipients and owners will be responsible for maintaining
documentation that justifies the recipient's determination of
infeasibility. HUD will consider providing additional guidance on this
issue when the final rule becomes effective.
---------------------------------------------------------------------------
\13\ https://www.gpo.gov/fdsys/pkg/FR-2013-02-06/pdf/2013-02390.pdf.
---------------------------------------------------------------------------
D. Rule Terminology
Broadband
As noted in the Summary, ``broadband'' is the common term used to
refer to a very fast connection to the Internet. Such connection is
also referred to as high-speed broadband or high-speed Internet. HUD
recognizes that broadband is defined by several agencies as Internet
access of at least a certain speed.\14\ HUD is proposing to require
that, where feasible, infrastructure be installed to provide every
housing unit covered by this proposed rule with the ability to access
the Internet that meets the definition adopted by the FCC--currently 25
Mbps download, 3 Mbps upload-- regardless of whether any Internet
service provider offers such access in a given location. This will
provide the capacity for future broadband adoption without having to
undertake additional renovation work. If the FCC modifies its
definitions in the future, HUD's requirements for any new construction
or substantial rehabilitation undertaken after the definition change
will also change.
---------------------------------------------------------------------------
\14\ For example, see the U.S. Department of Agriculture
definition at 7 CFR 1738.2 (requiring download speeds of at least 4
Mbps, or the Federal Communications Commission's definition in its
2015 Broadband Progress Report at https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-10A1.pdf (defining broadband as having download
speeds of at least 25 Mbps).
---------------------------------------------------------------------------
Broadband Infrastructure
The broadband infrastructure that needs to be installed to provide
families in covered multifamily rental housing with broadband access
will vary according to the housing being constructed or rehabilitated
and the plans of the entity doing such construction or rehabilitation.
Therefore, HUD proposes a flexible definition, allowing entities
undertaking new construction or substantial rehabilitation to install
the broadband infrastructure that is most feasible given the specifics
of the construction or substantial rehabilitation to be undertaken. HUD
proposes to require installation of cables, fiber optics, wiring, or
other infrastructure, as long as the installation results in broadband
accessibility in each dwelling unit. HUD proposes only to require the
installation of broadband infrastructure on the property, not to
require that grantees be responsible for ensuring an external
connection between the property and an Internet service provider (ISP).
Substantial Rehabilitation
While some of the HUD programs listed in Section II.B of this
preamble define what is meant by ``substantial rehabilitation,'' the
majority of the covered programs do not define this term. Therefore,
for the sole purpose of determining when substantial rehabilitation of
covered multifamily rental housing would trigger installation of
broadband infrastructure and, except in the HOPWA program, where
substantial rehabilitation is already defined, HUD proposes to define
``substantial rehabilitation'' to mean:
(1) Significant work on the electrical system of the multifamily
rental housing. ``Significant work'' is defined as work that is equal
to or greater than 75 percent of the cost of replacing the entire
electrical system. In the case of multifamily rental housing with
multiple buildings with more than 4 units, ``entire system'' refers to
the electrical system of the building(s) undergoing rehabilitation; or
(2) Rehabilitation of the multifamily rental housing in which the
estimated cost of the rehabilitation is equal to or greater than 75
percent of the total estimated cost of replacing the multifamily rental
housing after the rehabilitation is complete. In the case of
multifamily rental housing with multiple buildings with more than 4
units, the replacement cost used in this determination would be the
replacement cost of the building(s) undergoing rehabilitation.
E. Compliance Timeline
HUD intends for this proposed rule to apply to projects that have
not yet established their budgets and had funding approved, in order to
give recipients and owners adequate time to factor the installation of
broadband infrastructure into their new construction or substantial
rehabilitation plans.
F. Rule's Objective
With this proposed rule, HUD seeks to take another important step
toward narrowing the digital divide by providing residents in covered
multifamily rental housing that is to be newly constructed or
substantially rehabilitated with infrastructure that supports access to
broadband Internet service, thereby increasing access to educational
and economic opportunities for these residents.
IV. Specific Questions for Comments
While HUD welcomes comments on all aspects of this proposed rule,
HUD is seeking specific comment on the following questions:
1. In light of the policy objectives discussed in the preamble,
should this proposed rule be applied to other HUD programs,
particularly additional multifamily housing programs (such as Rental
Supplement (RS), Rental Assistance Payment (RAP), Moderate
Rehabilitation Programs (Mod Rehab), etc.) or programs addressing
single-family housing? Should any programs covered by this proposed
rule be removed?
[[Page 31185]]
2. Given that the definition of the term ``substantial
rehabilitation'' will determine which projects (other than new
construction) are affected by this rulemaking, should the definition be
changed in any way?
3. How much does it cost to add the installation of broadband
infrastructure to a pre-planned new construction or rehabilitation
project? Are HUD's estimates for the labor and materials costs for
installing broadband infrastructure accurate? What data can the public
share with HUD about the most cost-effective way for broadband
infrastructure to be installed during a new construction or
rehabilitation project?
4. The proposed rule provides exceptions to the requirements if
compliance would be infeasible due to cost, location, or structural
concerns. Are these exceptions too broad or too narrow? What is the
best way for grantees to demonstrate to HUD that installation of
broadband infrastructure is infeasible, and what would appropriate
sanctions be if grantees do not comply even if it was feasible? Do any
grantees have experience with a project in which installing broadband
infrastructure was physically or economically infeasible, and under
what circumstances was it infeasible?
5. When evaluating whether the rehabilitation being done meets the
threshold in the definition of substantial rehabilitation, should HUD
use the pre-rehabilitation estimates for the project alone, or should
HUD include increases in rehabilitation costs that arise in the process
of rehabilitation?
V. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned. Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. This proposed rule was determined to be a
``significant regulatory action'' as defined in section 3(f) of the
Executive order (although not an economically significant regulatory
action, as provided under section 3(f)(1) of the Executive order).
As discussed, this proposed rule furthers HUD's efforts to narrow
the digital divide in low-income communities served by HUD.
Specifically, HUD proposes to require installation of broadband
infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental housing that is funded by HUD. As
noted in the Executive Summary, the costs and benefits of this proposed
rule are difficult to quantify, but they can be described
qualitatively.
A. Benefits
The evidence demonstrating the benefits of narrowing the digital
divide is well documented. In just one example, a study conducted by a
former Chair of the President's Council of Economic Advisers used data
on the amount of time Internet users spend online to estimate that
Internet access produces thousands of dollars of consumer surplus per
user each year.\15\ As noted above, however, the benefits of Internet
technology have not been evenly distributed and research shows that
there remain substantial disparities in both Internet use and the
quality of access. This digital deficit is generally concentrated among
older, less educated, and less affluent populations.\16\
---------------------------------------------------------------------------
\15\ Council of Economic Advisers July 2015 report, supra,
citing Austan Goolsbee and Peter J. Klenow, Valuing Consumer
Products by the Time Spent Using Them: An Application to the
Internet National Bureau of Economic Research Working Paper No.
11995 (February 2006) available online at: https://www.nber.org/papers/w11995.
\16\ Ibid.
---------------------------------------------------------------------------
HUD recognizes that the proposed rule's limited scope in only
requiring the installation of infrastructure, instead of providing
Internet access, also limits the benefits of the proposed rule.
Specifically, the benefit of the proposed rule is that where broadband
Internet can be made available at a limited price, the tenant, residing
in housing with broadband infrastructure, will be assured of the
ability to access broadband Internet service, whether they choose and
are able to afford Internet service or not. This proposed rule,
therefore, would put broadband Internet service within reach where
other charitable and public social programs, including HUD's
ConnectHome program, provide free or reduced cost service.
B. Costs
It is not possible to specify the exact costs that recipients and
owners may incur as a result of the proposed rule, given the variety of
available technologies that may be used to satisfy the new broadband
requirements. However, available data indicates that any costs
associated with this proposed rule will be minimal.
As is displayed on table I, broadband Internet access can be
provided using two general technologies: Wired and wireless, each with
several specific technologies. Broadband can be delivered over wired
lines using very-high-bit-rate digital subscriber lines (VDSL), cable
lines, power lines (BPL), or fiber optic platforms. Using wireless
technologies, broadband can be provided using satellite, fixed
wireless, mobile wireless, and Wi-Fi platforms.
Table I--Types of Broadband Technologies
----------------------------------------------------------------------------------------------------------------
Access requirement
-------------------------------------------------
Platform Connection type Not part of
Part of infrastructure infrastructure
----------------------------------------------------------------------------------------------------------------
Wired
Digital Subscriber Line (VDSL)....... Copper wire............ Yes.................... Router & Modem.
Cable Modem.......................... Copper wire............ Yes.................... Router & Modem.
Fiber................................ Fiber Optic wire....... Yes.................... Router & Modem.
Broadband over Power Lines (BPL)..... Copper wire............ Yes.................... Router & Modem.
Wireless
Satellite............................ Over the Air--satellite None................... Router & Modem.
[[Page 31186]]
Fixed Wireless....................... Over the Air--Longer None................... Router & Modem.
Range Directional
Equipment.
Mobile Wireless...................... Over the Air--Cellular. None................... Router & Modem.
Wireless Fidelity (WiFi)............. Over the Air--Short- None................... Router & Modem.
Range Wireless
Technology.
----------------------------------------------------------------------------------------------------------------
Whereas wired lines technologies may require some sort of physical
infrastructure consisting of internal wiring within the dwelling unit,
wireless technologies do not require any additional physical
infrastructure within the building. With wireless technology, the
signal travels through the air to the customer, who uses a connection
technology, such as a modem, to access the services. For wireless
technologies, the infrastructure cost to the property boundary
(connection to the service provider) is nil ($0). However, the
availability of wireless broadband service is limited and evolving, so
HUD expects many builders will opt to install wired broadband
infrastructure.
Building costs of installing wired infrastructure are limited to
in-dwelling wiring, as this is all that is required by the proposed
rule. Within the unit or the building, the electrical work consists of
running cable (meeting the requirements of category (Cat) 5e or Cat 6
wire), installing jacks and plates, and minor construction work (such
as drilling and patching walls). Fiber optic cables are rarely run in
the dwelling unit but are installed by the service provider outside the
unit; the non-fiber optic wiring then makes broadband accessible within
the unit. Depending on the market, some of the cost is also born by the
service provider.
The average per-unit cost for wiring for broadband Internet is
approximately $200 \17\ (see table II). These costs are simply
estimates of one method of complying with the requirements of the
proposed rule. Labor costs will also vary based on the region and
whether the installation is being done as part of substantial
rehabilitation or new construction. At most, installation of broadband
infrastructure may reduce the provision of other amenities or
nonessential finishes, but even these reductions are considered
unlikely.
---------------------------------------------------------------------------
\17\ https://www.homewyse.com/services/cost_to_install_electrical_wiring.html
Table II--Sample Cost To Install Electrical Wiring (1 Wiring)
----------------------------------------------------------------------------------------------------------------
Item Quantity Low High
----------------------------------------------------------------------------------------------------------------
Electrical Wiring Labor (Hours) 2.1 hours............................. $160.07 $205.10
Labor estimate to install electrical
wiring, route, secure, and connect new
NMB-B wiring run for single receptacle,
up to a 40' run. Includes planning,
equipment, and material acquisition,
area preparation and protection, setup
and cleanup.
Electrical Wiring Materials and Supplies 1 Wiring (unit)....................... 20.00 25.00
Cost of related materials and supplies
typically required to install
electrical wiring including connectors,
fittings, and mounting hardware.
-------------------------------
Total Costs (1 Wiring).............. ...................................... 180.07 230.10
----------------------------------------------------------------------------------------------------------------
HUD also notes that the proposed rule is drafted so as to minimize
the costs of the new installation requirements. For example, the
proposed rule does not mandate any rehabilitation or construction, and
the decision to undertake such activities appropriately remains with
recipients and owners. Rather, the scope of the proposed regulatory
changes is limited to requiring the installation of broadband
infrastructure if the recipient or owner elects to undertake new
construction or substantial rehabilitation. The proposed rule minimizes
the economic impacts on recipients and owners by recognizing that the
installation of broadband infrastructure is generally less burdensome
and costly at the time of new construction or substantial
rehabilitation than when such installation is undertaken as a stand-
alone effort.
Moreover, this proposed rule only requires the installation of
broadband infrastructure that is ``accessible'' in each unit. The
proposed rule does not require recipients or owners to provide a
regular subscription to broadband Internet service (even at a cost) to
residents. Also minimizing the economic costs of the proposed
regulatory changes is the fact that the proposed definition of
broadband infrastructure is broad enough to include cable television,
fiber optic cabling, and wireless infrastructure providing appropriate
broadband connectivity to the individual units. As discussed above in
this Executive Summary, multifamily HUD or standard- market new
construction typically provides telephone landline and cable TV
connectivity. Further, HUD's competitive grants for new construction
under the Choice Neighborhoods program have, in recent years, sought
the provision of broadband.
A review of HUD internal databases, summarized on table III, shows
that in 2013, the 58,677 units within the targeted programs were newly
constructed or rehabilitated. However, HUD's data did not contain
specific information to be able to determine how many of the units that
underwent rehabilitation met the definition of ``substantial
rehabilitation'' contained in the proposed rule, so the number of
[[Page 31187]]
affected units would be smaller than is contained in the table. In
addition, data on affected units newly constructed using CDBG funding
is unavailable, as grantee reports do not separate multifamily from
single-unit new construction.
Table III--HUD-Assisted New Construction and Substantial Rehabilitation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec. 8 Sec. 8 HOME
RAD 811 PRAC 202 PRAC 202 HOPE VI PIH CDBG Rental Totals
--------------------------------------------------------------------------------------------------------------------------------------------------------
New Construction
2012................................................. ......... 506 2,405 ......... 146 703
2013................................................. 110 583 2,034 ......... 44 297 ......... 19,424 22,492
2014................................................. 100 482 1,592 ......... ......... ......... ......... 11,596
Rehabilitation
2012................................................. ......... ......... 25 ......... ......... 36
2013................................................. 199 15 ......... 109 ......... 16 20,918 14,928 36,185
2014................................................. ......... 28 15 ......... ......... ......... 15,716 6,965
----------
FY 2013 Totals................................... ......... ......... ......... ......... ......... ......... ......... ......... 58,677
--------------------------------------------------------------------------------------------------------------------------------------------------------
Further, a review found that multifamily (5-plus unit) HUD or
standard-market new construction typically provides telephone landline
and many provide cable TV connectivity.\18\ A recent survey by the
National Association of Homebuilders found that just 4 percent of the
surveyed multifamily housing developers did not install landline wires
and jacks in multifamily units completed in the past 12
months.18 19 In recent years, HUD's competitive grants for
new construction under the Choice Neighborhoods program have required
the provision of broadband.\20\ Therefore, this proposed rule simply
codifies what is considered common practice in several programs.
---------------------------------------------------------------------------
\18\ For example under ``Class 4 Low Average Quality'' the
Craftsman 2015 National Building Cost Manual lists cable TV as a
standard feature. Only ``Class 5'' minimum quality does not list
cable or a computer network as a standard feature. All electrical
work is estimated to be 10 percent of project cost. 2015 National
Building Cost Manual, supra, p. 19.
\18\ NAHB, Multifamily Market Survey, supra.
\19\ Note that HUD's definition of accessibility is more
restrictive than the FCC's because HUD considers only the building
itself.
\20\ United States Department of Housing and Urban Development.
``Choice Neighborhoods Planning Grants Notice of Funding
Availability,'' supra, p. 32. ``Broadband Access. All FY2014 and
FY2015 Implementation Grantees will be required, as part of their
Transformation Plan, to include infrastructure that permits unit-
based access to broadband Internet connectivity in all new units.
Grantees may use Choice Neighborhoods funds to provide unit-based
broadband Internet connectivity, which includes the costs of
installing broadband infrastructure and hardware in units, but not
the costs of Internet service for residents. Regular and informed
Internet adoption can increase access to the job market, as well as
health, education, financial and other services. Further, in-home
broadband Internet access is an attractive, and in most cases,
standard amenity that can be used to market the mixed-income
community created through the Transformation Plan.''
---------------------------------------------------------------------------
Accordingly, most recipients and owners already meet the standards
established in the proposed rule, and the new regulatory requirements
will impose minimal, if any, new economic costs. HUD has addressed
those rare situations where the proposed new requirements may prove too
costly by granting exceptions to the installation requirements where
the installation is economically infeasible due to location or building
characteristics.
The docket file is available for public inspection in the
Regulations Division, Office of General Counsel, Department of Housing
and Urban Development, 451 7th Street SW., Room 10276, Washington, DC
20410-0500. Due to security measures at the HUD Headquarters building,
please schedule an appointment to review the docket file by calling the
Regulation Division at 202-708-3055 (this is not a toll-free number).
Individuals with speech or hearing impairments may access this number
via TTY by calling the Federal Relay Service at 800-877-8339 (this is a
toll-free number).
Impact on Small Entities
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.
The proposed rule would provide that for new construction or
substantial rehabilitation of multifamily rental housing funded by HUD,
as part of the new construction or substantial rehabilitation to be
undertaken, such activity must include installation of broadband
infrastructure. None of the HUD-covered programs listed in this
proposed rule require a grantee to undertake new construction or
substantial rehabilitation. Instead, new construction and substantial
rehabilitation are eligible activities that grantees may take using HUD
funds. Therefore, small entities will not incur any costs than they
otherwise would incur by voluntarily undertaking new construction or
substantial rehabilitation, since the costs of these activities,
including the installation of broadband infrastructure, are funded by
HUD. For these reasons, this proposed rule will not have a significant
economic impact on a substantial number of small entities.
Notwithstanding HUD's determination that this proposed rule will
not have a significant economic effect on a substantial number of small
entities, HUD specifically invites comments regarding any less
burdensome alternatives to this proposed rule that will meet HUD's
objectives, as described in this preamble.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This proposed rule will not impose any Federal
mandates on any State, local, or tribal governments or the private
sector within the meaning of the UMRA.
Paperwork Reduction Act
The information collection requirements contained in this proposed
rule must be submitted to OMB under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) for review and approval. In accordance with the
Paperwork Reduction Act, an agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless the collection displays a currently valid OMB control number.
[[Page 31188]]
The burden of the information collections in this proposed rule is
estimated to be minimal. The reporting of new construction or
substantial rehabilitation activity under the programs covered by this
proposed rule is not increased through the installation of broadband
infrastructure. However, the information collection that is new is the
documentation required of the grantee that the location of proposed new
construction makes installation of broadband infrastructure infeasible,
or that the cost of installing the infrastructure would result in a
fundamental alteration in the nature of its program or activity or in
an undue financial burden. The total number of grantees that undertake
new construction or substantial rehabilitation, as defined in this
proposed rule, with HUD funds is currently low, and this is reflected
in the respondents.
Reporting and Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
Response
Information collection Number of frequency Burden hours Total burden
respondents (average) per response hours
----------------------------------------------------------------------------------------------------------------
Documentation of inability to undertake 1,000 1 2 2,000
installation of broadband infrastructure.......
---------------------------------------------------------------
Totals...................................... 1,000 1 2 2,000
----------------------------------------------------------------------------------------------------------------
In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments
from members of the public and affected agencies concerning this
collection of information to:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
(2) Evaluate the accuracy of the agency's estimate of the burden of
the proposed collection of information;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond; including through the use of appropriate automated
collection techniques or other forms of information technology, e.g.,
permitting electronic submission of responses.
Interested persons are invited to submit comments regarding the
information collection requirements in this proposed rule. Comments
must refer to the proposal by name and docket number (FR-5890-P-01) and
must be sent to: HUD Desk Officer, Office of Management and Budget, New
Executive Office Building, Washington, DC 20503, Fax number: 202-395-
6947, and Collette Pollard, Reports Liaison Officer, Department of
Housing and Urban Development, 451 7th Street SW., Washington, DC
20410.
Environmental Review
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations in 24 CFR
part 50 that implement section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available for
public inspection, during regular business hours, in the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW., Room 10276, Washington, DC 20410-0500,
or online at www.regulations.gov. Due to security measures at the HUD
Headquarters building, please schedule an appointment to review the
FONSI by calling the Regulations Division at 202-708-3055 (this is not
a toll-free number). Individuals with speech or hearing impairments may
access this number via TTY by calling the Federal Relay Service at 800-
877-8339 (this is a toll-free number).
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 proposed rule does not have
federalism implications and does not impose substantial direct
compliance costs on State and local governments nor preempt State law
within the meaning of the Executive order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers applicable to
the programs that would be affected by this rule are: 14.218, 14.225,
14.228, 14.239, 14.241, 14.267, 14.850, 14.871, and 14.872.
List of Subjects
24 CFR Part 5
Administrative practice and procedure, Aged, Claims, Crime,
Government contracts, Grant programs-housing and community development,
Individuals with disabilities, Intergovernmental relations, Loan
programs-housing and community development, Low and moderate income
housing, Mortgage insurance, Penalties, Pets, Public housing, Rent
subsidies, Reporting and recordkeeping requirements, Social security,
Unemployment compensation, Wages.
24 CFR Part 92
Administrative practice and procedure, Low and moderate income
housing, Manufactured homes, Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 93
Administrative practice and procedure, Grant programs-housing and
community development, Low and moderate income housing, Manufactured
homes, Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 570
Administrative practice and procedure, American Samoa, Community
development block grants, Grant programs-education, Grant programs-
housing and community development, Guam, Indians, Loan programs-housing
and community development, Low and moderate income housing, Northern
Mariana Islands, Pacific Islands Trust Territory, Puerto Rico,
Reporting and recordkeeping requirements, Student aid, Virgin Islands.
24 CFR Part 574
Community facilities, Grant programs-housing and community
development, Grant programs-social programs, HIV/AIDS, Low and moderate
income housing, Reporting and recordkeeping requirements.
[[Page 31189]]
24 CFR Part 578
Community development, Community facilities, Grant programs-housing
and community development, Grant programs-social programs, Homeless,
Reporting and recordkeeping requirements.
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.
24 CFR Part 884
Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements, Rural areas.
24 CFR Part 886
Grant programs-housing and community development, Lead poisoning,
Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 891
Aged, Grant programs-housing and community development, Individuals
with disabilities, Loan programs-housing and community development,
Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 905
Grant programs-housing and community development, Public housing,
Reporting and recordkeeping requirements.
24 CFR Part 983
Grant programs-housing and community development, Low and moderate
income housing, Rent subsidies, Reporting and recordkeeping
requirements.
Accordingly, for the reasons stated in the preamble, HUD proposes
to amend 24 CFR parts 5, 92, 93, 570, 574, 578, 880, 881, 883, 884,
886, 891, 905, and 983 as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
0
1. The authority citation for part 5 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437n, 3535(d), Sec.
327, Pub. L. 109-115, 119 Stat. 2936, Sec. 607, Pub. L. 109-162, 119
Stat. 3051, E.O. 13279, and E.O. 13559.
0
2. In Sec. 5.100, add the definitions of ``Broadband infrastructure''
and ``Substantial rehabilitation'' in alphabetical order, to read as
follows:
Sec. 5.100 Definitions.
* * * * *
Broadband infrastructure means cables, fiber optics, wiring, or
other permanent (integral to the structure) infrastructure that is
capable of providing access to Internet connections in individual
housing units that meet the definition of ``advanced telecommunications
capability'' determined by the Federal Communications Commission under
section 706 of the Telecommunications Act of 1996 (47 U.S.C. 1302).
* * * * *
Substantial rehabilitation, for the purposes of determining when
installation of broadband infrastructure is required as part of
substantial rehabilitation of multifamily rental housing, unless
otherwise defined by a program, means work that involves:
(1) Significant work on the electrical system of the multifamily
rental housing. ``Significant work'' means complete replacement of the
electrical system or other work that is equal to or greater than 75
percent of the cost of replacing the entire electrical system. In the
case of multifamily rental housing with multiple buildings with more
than 4 units, ``entire system'' refers to the electrical system of the
building undergoing rehabilitation; or
(2) Rehabilitation of the multifamily rental housing in which the
estimated cost of the rehabilitation is equal to or greater than 75
percent of the total estimated cost of replacing the multifamily rental
housing after the rehabilitation is complete. In the case of
multifamily rental housing with multiple buildings with more than 4
units, the replacement cost must be the replacement cost of the
building undergoing rehabilitation.
* * * * *
PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM
0
3. The authority citation for part 92 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 12701-12839.
0
4. Amend Sec. 92.251 by revising the introductory text of (a)(2) and
adding paragraphs (a)(2)(vi) and (b)(1)(x) to read as follows:
Sec. 92.251 Property standards.
(a) * * *
(2) HUD requirements. All new construction projects must also meet
the requirements described in this paragraph:
* * *
(vi) Broadband infrastructure. If the housing is a building with
more than 4 rental units, the construction must include installation of
broadband infrastructure, as this term is defined in 24 CFR 5.100,
except where the participating jurisdiction documents that:
(A) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing the infrastructure would result in a
fundamental alteration in the nature of its program or activity or in
an undue financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. If the housing is a building with
more than 4 rental units, any substantial rehabilitation, as defined in
24 CFR 5.100, must provide for installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the participating jurisdiction documents that:
(A) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(C) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
* * * * *
PART 93--HOUSING TRUST FUND
0
5. The authority citation for part 93 continues to read as follows:
Authority: 42 U.S.C. 3535(d), 12 U.S.C. 4568.
0
6. Amend Sec. 93.301 by revising the introductory text of (a)(2) and
adding paragraphs (a)(2)(vi) and (b)(1)(x) to read as follows:
Sec. 93.301 Property standards.
(a) * * *
(2) HUD requirements. All new construction projects must also meet
the requirements described in this paragraph:
* * *
(vi) Broadband infrastructure. If the housing is a building with
more than 4 rental units, the construction must
[[Page 31190]]
include installation of broadband infrastructure, as this term is
defined in 24 CFR 5.100, except where the grantee documents that:
(A) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. If the housing is a building with
more than 4 rental units, any substantial rehabilitation, as defined in
24 CFR 5.100, must provide for installation of broadband
infrastructure, as this term is defined in 24 CFR 5.100, except where
the grantee documents that:
(A) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(C) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
* * * * *
PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS
0
7. The authority citation for part 570 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 5301-5320.
0
8. In Sec. 570.202, add paragraph (g) to read as follows:
Sec. 570.202 Eligible rehabilitation and preservation activities.
* * * * *
(g) Broadband infrastructure. Any substantial rehabilitation, as
defined by 24 CFR 5.100, of a building with more than 4 rental units
must include installation of broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except where the grantee documents that:
(1) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
9. In Sec. 570.204 add paragraph (a)(5) to read as follows:
Sec. 570.204 Special activities by Community-Based Development
Organizations (CBDOs).
(a) * * *
(5) Any new construction or substantial rehabilitation, as defined
by 24 CFR 5.100, of a building with more than 4 rental units must
include installation of broadband infrastructure, as this term is also
defined in 24 CFR 5.100, except where the grantee documents that:
(i) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(ii) The cost of installing broadband infrastructure would result
in a fundamental alteration in the nature of its program or activity or
in an undue financial burden; or
(iii) The structure of the housing to be substantially
rehabilitated makes installation of broadband infrastructure
infeasible.
* * * * *
0
10. Add paragraph (c)(4) to Sec. 570.482 to read as follows:
Sec. 570.482 Eligible activities.
* * * * *
(c) * * *
(4) Broadband infrastructure in housing. Any new construction or
substantial rehabilitation, as defined by 24 CFR 5.100, of a building
with more than 4 rental units must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the State documents that:
(i) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(ii) The cost of installing broadband infrastructure would result
in a fundamental alteration in the nature of its program or activity or
in an undue financial burden; or
(iii) The structure of the housing to be substantially
rehabilitated makes installation of broadband infrastructure
infeasible.
* * * * *
PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
0
11. The authority citation for part 574 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 12901-12912.
0
12. Add Sec. 574.350 to subpart D to read as follows:
Sec. 574.350 Additional standards for broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 574.3, of a building with more than
4 rental units must include installation of broadband infrastructure,
as this term is defined in 24 CFR 5.100, except where the grantee
documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 578--CONTINUUM OF CARE PROGRAM
0
13. The authority citation for part 578 continues to read as follows:
Authority: 42 U.S.C. 11371 et seq., 42 U.S.C. 3535(d).
0
14. In Sec. 578.45, add paragraph (d) to read as follows:
Sec. 578.45 Rehabilitation.
* * * * *
(d) Broadband infrastructure. Any substantial rehabilitation, as
defined by 24 CFR 5.100, of a building with more than 4 rental units
must include installation of broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except where the grantee documents that:
(1) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
15. In Sec. 578.47, add paragraph (c) to read as follows:
Sec. 578.47 New construction.
* * * * *
(c) Broadband infrastructure. Any new construction of a building
with more than 4 rental units must include installation of broadband
infrastructure, as this term is defined in 24 CFR 5.100, except where
the grantee documents that:
[[Page 31191]]
(1) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden.
PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW
CONSTRUCTION
0
16. The authority citation for part 880 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and
13611-13619.
0
17. Add Sec. 880.212 to subpart B to read as follows:
Sec. 880.212 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR
SUBSTANTIAL REHABILITATION
0
18. 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.
0
19. Add Sec. 881.212 to subpart B to read as follows:
Sec. 881.212 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE
HOUSING AGENCIES
0
20. The authority citation for part 883 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
0
21. Add Sec. 883.314 to subpart C to read as follows:
Sec. 883.314 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW
CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING
PROJECTS
0
22. The authority citation for part 884 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
0
23. Add Sec. 884.125 to subpart A to read as follows:
Sec. 884.125 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--SPECIAL
ALLOCATIONS
0
24. The authority citation for part 886 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
0
25. Add Sec. 886.139 to subpart A to read as follows:
Sec. 886.139 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
26. Add Sec. 886.339 to subpart C to read as follows:
Sec. 886.339 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH
DISABILITIES
0
27. The authority citation for part 891 continues to read as follows:
Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.
[[Page 31192]]
0
28. In Sec. 891.120, add paragraph (f) to read as follows:
Sec. 891.120 Project design and cost standards.
* * * * *
(f) Broadband infrastructure. Any new construction or substantial
rehabilitation, as defined by 24 CFR 5.100, of a building with more
than 4 rental units must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
29. Add Sec. 891.550 to subpart E to read as follows:
Sec. 891.550 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 905--THE PUBLIC HOUSING CAPITAL FUND PROGRAM
0
30. The authority citation for part 905 continues to read as follows:
Authority: 42 U.S.C. 1437g, 42 U.S.C. 1437z-2, 42 U.S.C. 1437z-
7, and 3535(d).
0
31. In Sec. 905.312, add paragraph (e) to read as follows:
Sec. 905.312 Design and construction.
* * * * *
(e) Broadband infrastructure. Any new construction or substantial
rehabilitation, as defined in 24 CFR 5.100, of a building with more
than 4 rental units must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the PHA documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be rehabilitated makes
installation of broadband infrastructure infeasible.
PART 983--PROJECT-BASED VOUCHER (PBV) PROGRAM
0
32. The authority citation for part 983 continues to read as follows:
Authority: 42 U.S.C. 1437f and 3535(d).
0
33. Add Sec. 983.157 to subpart D to read as follows:
Sec. 983.157 Broadband infrastructure.
Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
Dated: April 21, 2016.
Juli[aacute]n Castro,
Secretary.
[FR Doc. 2016-11352 Filed 5-17-16; 8:45 am]
BILLING CODE 4210-67-P
