Reserve Account, 16730-16731 [E7-6287]

Download as PDF 16730 Proposed Rules Federal Register Vol. 72, No. 65 Thursday, April 5, 2007 AGENCY: Management Branch, U.S. Department of Agriculture, 300 7th Street, SW., 7th Floor, Suite 701, Washington DC 20024. All written comments will be available for public inspection during regular hours at the 300 7th Street, SW., address listed above. FOR FURTHER INFORMATION CONTACT: Tammy S. Daniels, Senior Loan Specialist, Multi-Family Housing Processing Division, Rural Housing Service, U.S. Department of Agriculture, STOP 0781, 1400 Independence Ave., SW., Washington, DC 20250–0781. Telephone: 202–720–0021 (this is not a toll-free number); e-mail: tammy.daniels@wdc.usda.gov. ACTION: SUPPLEMENTARY INFORMATION: 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. DEPARTMENT OF AGRICULTURE Rural Housing Service 7 CFR Part 3560 RIN 0575–AC66 Reserve Account Rural Housing Service, USDA. Proposed rule. SUMMARY: Through this action, the Rural Housing Service (RHS) is proposing to amend its regulation to change the requirements of the Reserve Account for the Sections 514/516 Farm Labor Housing program and the Section 515 Rural Rental Housing (RRH) program. The intended effect of this action is to address reserve account requirements of new construction rental housing funded under Sections 514/516 and Section 515 and does not affect reserve accounts for existing portfolios. DATES: Written or e-mail comments must be received on or before June 4, 2007. You may submit comments to this rule by any of the following methods: • Agency Web site: https://www. rurdev..usda.gov/regs. Follow the instructions for submitting comments on the Web site. • e-mail: comments@one.usda.gov. Include the RIN number (0575–AC66) and the word ‘‘MFH’’ in the subject line of the message. • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail: Submit written comments via the U.S. Postal Service to the Branch Chief, Regulations and Paperwork Management Branch, U.S. Department of Agriculture, STOP 0742, 1400 Independence Ave. SW., Washington, DC 20250–0742. • Hand Delivery/Courier: Submit written comments via Federal Express Mail or another mail courier service requiring a street address to the Branch Chief, Regulations and Paperwork ycherry on PROD1PC64 with PROPOSALS ADDRESSES: VerDate Aug<31>2005 16:32 Apr 04, 2007 Jkt 211001 Classification This proposed rule has been determined to be not significant and was reviewed by the Office of Management and Budget (OMB) under Executive Order 12866. Civil Justice Reform This proposed rule has been reviewed under E. O. 12988, Civil Justice Reform. If this proposed rule is adopted: (1) Unless otherwise specifically provided, all state and local laws that are in conflict with this rule will be preempted; (2) no retroactive effect will be given to this rule except as specifically prescribed in the rule; and (3) administrative proceedings of the National Appeals Division of the Department of Agriculture (7 CFR part 11) must be exhausted before bringing suit. E-Government Act Compliance RHS is committed to complying with the E-Government Act, by promoting the use of the Internet and other information technologies in order to provide increased opportunities for citizen access to Government information, services, and other purposes. Unfunded Mandate Reform Act (UMRA) This rule contains no Federal mandates (under the regulatory provisions of Title II of the UMRA) for state, local and tribal governments or the private sector. Therefore, this rule is not subject to the requirements of Sections 202 and 205 of the UMRA. Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1940, subpart G, ‘‘Environmental Program.’’ RHS determined that the proposed action does not constitute a major Federal action significantly affecting the quality of the environment. Therefore in accordance with the National Environmental Policy Act of 1969, Pub. L. 91–190, an Environmental Impact Statement is not required. Programs Affected The programs affected by this regulation are listed in the Catalog of Federal Domestic Assistance under numbers 10.405—Farm Labor Housing Loans and Grants; 10.415—Rural Rental Housing Loans; and 10.427—Rural Rental Assistance Payments. Regulatory Flexibility Act Federalism The proposed rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act (5 U.S.C. 601–612). The undersigned has determined and certified by signature on this document that this rule will not have a significant economic impact on a substantial number of small entities. This rulemaking action does not involve a new or expanded program nor does it require any more action on the part of a small business than required of a large entity. For the reasons discussed above, this proposed rule does not have significant Federalism implications that warrant the preparation of a Federalism assessment under Executive Order 13132. Paperwork Reduction Act There are no new reporting and recordkeeping requirements associated with this rule. PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 Intergovernmental Consultation These loans are subject to the provisions of E.O. 12372 which require intergovernmental consultation with state and local officials. RHS conducts intergovernmental consultations for each loan in a manner delineated in 7 CFR part 1940, subpart J (available in any Rural Development office and on the Internet at https:// www.rurdev.usda.gov). E:\FR\FM\05APP1.SGM 05APP1 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Proposed Rules ycherry on PROD1PC64 with PROPOSALS Background Information A life-cycle cost analysis that meets Rural Development approval will be prepared by the project architect. The life cycle cost analysis will be used to determine the expected usable life of a building component and furnishing and to determine which building components or furnishings are the most cost efficient over the life to the building. The reserve account deposit level will be maintained through steady deposits to meet the needs of the project as they become due. Adjustments may be made at five or ten year intervals, either through an updated Comprehensive Needs Assessment or a part of the original plan. The requirement for a life cycle cost analysis will be used for new construction rental housing funded under Sections 514/516 and Section 515 of the Housing Act of 1949. The new requirement is intended to assure quality construction as well as long term viability of complexes. Reserve levels will be based on life cycle costs in order to ensure necessary resources are available when needed to replace essential building components. Existing loan agreement forms will have an addendum that is properly executed by the borrower establishing the terms of the life cycle analysis and reserve requirement. The current interim final rule requires an annual minimum deposit of 1 percent of the total development cost be put in a reserve account. This regulatory change is proposed to assure that we have the reserve accounts properly sized to meet the capital needs anticipated at the time of construction. This change will only affect reserve account requirements of new construction rental housing funded under Sections 515 RRH or Sections 514/516 Farm Labor Housing. Due to the recent increase in the use of third party money to leverage Rural Development funding, the Agency has found that the arbitrary nature of the existing reserve account funding formula sometimes causes the reserve account to be set artificially high. While the objective of the proposed change is to primarily produce an accurately measured reserve account funding requirement, the change may actually lead to reduced funding levels in MFH new construction projects that utilize leveraged financing. List of Subjects in 7 CFR 3560 Accounting, Accounting servicing, Administrative practice and procedure, Aged, Farm labor housing, Foreclosure, Grant programs—Housing and community development, Government acquired property, Government property management, Handicapped, Insurance, VerDate Aug<31>2005 16:32 Apr 04, 2007 Jkt 211001 Loan programs—Agriculture, Loan programs—Housing and community development, Low and moderate income housing, Low and moderate income housing—Rental, Migrant labor, Mortgages, Nonprofit organizations, Public housing, Rent subsidies, Reporting and recordkeeping requirements, Rural areas, Rural housing, Sale of government acquired property, Surplus government property. Therefore, chapter XXXV, Title 7 of the Code of Federal Regulations, is proposed to be amended as follows: PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS 1. The authority citation for Part 3560 continues to read as follows: Authority: 42 U.S.C. 1480. Subpart B—Direct Loan and Grant Origination 2. Section 3560.65 is revised to read as follows: § 3560.65 Reserve account. To meet major capital expenses of a housing project, applicants must establish and fund a reserve account that meets requirements of § 3560.306. The applicant must agree to make monthly contributions to the reserve account pursuant to a reserve account analysis developed by Rural Development which sets forth how the reserve account funds will meet the capital needs of the property over a 20year period. The reserve account analysis is based on either a capital needs assessment or life cycle cost analysis, provided to Rural Development by the applicant. Dated: March 27, 2007. Russell T. Davis, Administrator, Rural Housing Service. [FR Doc. E7–6287 Filed 4–4–07; 8:45 am] BILLING CODE 3410–XV–P NUCLEAR REGULATORY COMMISSION 10 CFR Part 50 RIN 3150–AH76 Industry Codes and Standards; Amended Requirements Nuclear Regulatory Commission. ACTION: Proposed rule. AGENCY: SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is proposing to amend its regulations to incorporate by reference the 2004 Edition of Section III, PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 16731 Division 1 and Section XI, Division 1 of the American Society of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code (BPV Code) and the 2004 Edition of the ASME Code for Operation and Maintenance of Nuclear Power Plants (OM Code) to provide updated rules for constructing and inspecting components and testing pumps, valves, and dynamic restraints (snubbers) in light-water nuclear power plants. NRC also proposes to require the use of ASME Code Cases N–722 and N–729–1, both with conditions, and to remove certain obsolete requirements specified in § 50.55a. This action is in accordance with the NRC’s policy to periodically update the regulations to incorporate new editions and addenda of the ASME Codes by reference and is intended to maintain the safety of nuclear reactors and make NRC activities more effective and efficient. DATES: Comments regarding the proposed amendment must be submitted by June 19, 2007. Comments received after this date will be considered if it is practical to do so, but the Commission is only able to ensure consideration of comments received on or before this date. ADDRESSES: You may submit comments by any one of the following methods. Please include RIN 3150–AH76 in the subject line of your comments. Comments on rulemakings submitted in writing or in electronic form will be made available to the public in their entirety on the NRC rulemaking Web site. Personal information will not be removed from your comments. Mail comments to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001, ATTN: Rulemakings and Adjudications Staff. E-mail comments to: SECY@nrc.gov. If you do not receive a reply e-mail confirming that we have received your comments, contact us directly at (301) 415–1966. You may also submit comments via the NRC’s rulemaking Web site at https://ruleforum.llnl.gov. Address questions about our rulemaking Web site to Carol Gallagher (301) 415– 5905; e-mail cag@nrc.gov. Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal workdays. (Telephone (301) 415–1966). Fax comments to: Secretary, U.S. Nuclear Regulatory Commission at (301) 415–1101. Publicly available documents related to this rulemaking may be viewed electronically on the public computers located at the NRC’s Public Document Room (PDR), O1–F21, One White Flint E:\FR\FM\05APP1.SGM 05APP1

Agencies

[Federal Register Volume 72, Number 65 (Thursday, April 5, 2007)]
[Proposed Rules]
[Pages 16730-16731]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6287]


========================================================================
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. 72, No. 65 / Thursday, April 5, 2007 / 
Proposed Rules

[[Page 16730]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3560

RIN 0575-AC66


Reserve Account

AGENCY: Rural Housing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: Through this action, the Rural Housing Service (RHS) is 
proposing to amend its regulation to change the requirements of the 
Reserve Account for the Sections 514/516 Farm Labor Housing program and 
the Section 515 Rural Rental Housing (RRH) program. The intended effect 
of this action is to address reserve account requirements of new 
construction rental housing funded under Sections 514/516 and Section 
515 and does not affect reserve accounts for existing portfolios.

DATES: Written or e-mail comments must be received on or before June 4, 
2007.

ADDRESSES: You may submit comments to this rule by any of the following 
methods:
     Agency Web site: https://www. rurdev..usda.gov/regs. Follow 
the instructions for submitting comments on the Web site.
     e-mail: comments@one.usda.gov. Include the RIN number 
(0575-AC66) and the word ``MFH'' in the subject line of the message.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Submit written comments via the U.S. Postal Service 
to the Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, STOP 0742, 1400 Independence Ave. SW., 
Washington, DC 20250-0742.
     Hand Delivery/Courier: Submit written comments via Federal 
Express Mail or another mail courier service requiring a street address 
to the Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, 300 7th Street, SW., 7th Floor, Suite 701, 
Washington DC 20024.
    All written comments will be available for public inspection during 
regular hours at the 300 7th Street, SW., address listed above.

FOR FURTHER INFORMATION CONTACT: Tammy S. Daniels, Senior Loan 
Specialist, Multi-Family Housing Processing Division, Rural Housing 
Service, U.S. Department of Agriculture, STOP 0781, 1400 Independence 
Ave., SW., Washington, DC 20250-0781. Telephone: 202-720-0021 (this is 
not a toll-free number); e-mail: tammy.daniels@wdc.usda.gov.

SUPPLEMENTARY INFORMATION:

Classification

    This proposed rule has been determined to be not significant and 
was reviewed by the Office of Management and Budget (OMB) under 
Executive Order 12866.

Civil Justice Reform

    This proposed rule has been reviewed under E. O. 12988, Civil 
Justice Reform. If this proposed rule is adopted: (1) Unless otherwise 
specifically provided, all state and local laws that are in conflict 
with this rule will be preempted; (2) no retroactive effect will be 
given to this rule except as specifically prescribed in the rule; and 
(3) administrative proceedings of the National Appeals Division of the 
Department of Agriculture (7 CFR part 11) must be exhausted before 
bringing suit.

Regulatory Flexibility Act

    The proposed rule has been reviewed with regard to the requirements 
of the Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned 
has determined and certified by signature on this document that this 
rule will not have a significant economic impact on a substantial 
number of small entities. This rulemaking action does not involve a new 
or expanded program nor does it require any more action on the part of 
a small business than required of a large entity.

Paperwork Reduction Act

    There are no new reporting and recordkeeping requirements 
associated with this rule.

E-Government Act Compliance

    RHS is committed to complying with the E-Government Act, by 
promoting the use of the Internet and other information technologies in 
order to provide increased opportunities for citizen access to 
Government information, services, and other purposes.

Unfunded Mandate Reform Act (UMRA)

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for state, local and tribal 
governments or the private sector. Therefore, this rule is not subject 
to the requirements of Sections 202 and 205 of the UMRA.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' RHS determined that the proposed 
action does not constitute a major Federal action significantly 
affecting the quality of the environment. Therefore in accordance with 
the National Environmental Policy Act of 1969, Pub. L. 91-190, an 
Environmental Impact Statement is not required.

Programs Affected

    The programs affected by this regulation are listed in the Catalog 
of Federal Domestic Assistance under numbers 10.405--Farm Labor Housing 
Loans and Grants; 10.415--Rural Rental Housing Loans; and 10.427--Rural 
Rental Assistance Payments.

Federalism

    For the reasons discussed above, this proposed rule does not have 
significant Federalism implications that warrant the preparation of a 
Federalism assessment under Executive Order 13132.

Intergovernmental Consultation

    These loans are subject to the provisions of E.O. 12372 which 
require intergovernmental consultation with state and local officials. 
RHS conducts intergovernmental consultations for each loan in a manner 
delineated in 7 CFR part 1940, subpart J (available in any Rural 
Development office and on the Internet at https://www.rurdev.usda.gov).

[[Page 16731]]

Background Information

    A life-cycle cost analysis that meets Rural Development approval 
will be prepared by the project architect. The life cycle cost analysis 
will be used to determine the expected usable life of a building 
component and furnishing and to determine which building components or 
furnishings are the most cost efficient over the life to the building. 
The reserve account deposit level will be maintained through steady 
deposits to meet the needs of the project as they become due. 
Adjustments may be made at five or ten year intervals, either through 
an updated Comprehensive Needs Assessment or a part of the original 
plan. The requirement for a life cycle cost analysis will be used for 
new construction rental housing funded under Sections 514/516 and 
Section 515 of the Housing Act of 1949. The new requirement is intended 
to assure quality construction as well as long term viability of 
complexes. Reserve levels will be based on life cycle costs in order to 
ensure necessary resources are available when needed to replace 
essential building components. Existing loan agreement forms will have 
an addendum that is properly executed by the borrower establishing the 
terms of the life cycle analysis and reserve requirement. The current 
interim final rule requires an annual minimum deposit of 1 percent of 
the total development cost be put in a reserve account. This regulatory 
change is proposed to assure that we have the reserve accounts properly 
sized to meet the capital needs anticipated at the time of 
construction. This change will only affect reserve account requirements 
of new construction rental housing funded under Sections 515 RRH or 
Sections 514/516 Farm Labor Housing. Due to the recent increase in the 
use of third party money to leverage Rural Development funding, the 
Agency has found that the arbitrary nature of the existing reserve 
account funding formula sometimes causes the reserve account to be set 
artificially high. While the objective of the proposed change is to 
primarily produce an accurately measured reserve account funding 
requirement, the change may actually lead to reduced funding levels in 
MFH new construction projects that utilize leveraged financing.

List of Subjects in 7 CFR 3560

    Accounting, Accounting servicing, Administrative practice and 
procedure, Aged, Farm labor housing, Foreclosure, Grant programs--
Housing and community development, Government acquired property, 
Government property management, Handicapped, Insurance, Loan programs--
Agriculture, Loan programs--Housing and community development, Low and 
moderate income housing, Low and moderate income housing--Rental, 
Migrant labor, Mortgages, Nonprofit organizations, Public housing, Rent 
subsidies, Reporting and recordkeeping requirements, Rural areas, Rural 
housing, Sale of government acquired property, Surplus government 
property.
    Therefore, chapter XXXV, Title 7 of the Code of Federal 
Regulations, is proposed to be amended as follows:

PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS

    1. The authority citation for Part 3560 continues to read as 
follows:

    Authority: 42 U.S.C. 1480.

Subpart B--Direct Loan and Grant Origination

    2. Section 3560.65 is revised to read as follows:


Sec.  3560.65  Reserve account.

    To meet major capital expenses of a housing project, applicants 
must establish and fund a reserve account that meets requirements of 
Sec.  3560.306. The applicant must agree to make monthly contributions 
to the reserve account pursuant to a reserve account analysis developed 
by Rural Development which sets forth how the reserve account funds 
will meet the capital needs of the property over a 20-year period. The 
reserve account analysis is based on either a capital needs assessment 
or life cycle cost analysis, provided to Rural Development by the 
applicant.

     Dated: March 27, 2007.
Russell T. Davis,
Administrator, Rural Housing Service.
 [FR Doc. E7-6287 Filed 4-4-07; 8:45 am]
BILLING CODE 3410-XV-P

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