Streamlining Public Housing Programs, 45368-45373 [E8-17839]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 73, Number 151 (Tuesday, August 5, 2008)]
[Proposed Rules]
[Pages 45368-45373]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17839]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 903, 941, 945, and 966

[Docket No. FR-4990-P-01]
RIN 2577-AC59


Streamlining Public Housing Programs

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would support HUD's overall objective to 
streamline the regulations governing public housing programs and to 
facilitate the transition of public housing agencies (PHAs) to asset 
management. In general, this proposed rule would streamline portions of 
the public housing regulations, and more closely align the regulatory 
framework of public housing with other federally subsidized housing 
programs, providing PHAs greater flexibility within the parameters of 
current law. This proposed rule offers general principles and basic 
guidelines for PHAs to follow, rather than overly prescriptive 
measures, thus allowing PHAs to operate projects more efficiently as 
PHAs move toward asset management.

DATES: Comment Due Date: October 6, 2008.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule. There are two methods for comments to be submitted 
as public comments and to be included in the public comment docket for 
this rule. Additionally, all submissions must refer to the above docket 
number and title.
    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 Seventh 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 
https://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 them immediately 
available to the public. Comments submitted electronically through the 
https://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.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule. No Facsimile Comments. Facsimile (FAX) 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 toll-free 
Federal Information Relay Service at (800) 877-8339. Copies of all 
comments submitted are available for inspection and downloading at 
https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Bessy M. Kong, Deputy Assistant 
Secretary, Office of Policy, Program and Legislative Initiatives, 
Office of Public and Indian Housing, telephone number (202) 708-0713, 
extension 2548 (this is not a toll-free number). Persons with hearing 
or speech impairments may access these numbers through TTY by calling 
the toll-free Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    On September 19, 2005, at 70 FR 54983, HUD published a final rule 
implementing revisions to the Public Housing Operating Fund program, 
providing for a new formula for distributing operating subsidy to PHAs, 
and establishing requirements for PHAs to convert to asset management. 
That final rule was based substantially on the recommendations of the 
congressionally funded Harvard University Graduate School of Design 
study on the cost of operating well-run public housing (Harvard Cost 
Study). Appendix H of the Harvard Cost Study included a list of 
requirements unique to public housing that, if alleviated or otherwise 
eliminated, would either make it easier for PHAs to transition to asset 
management or would more closely conform the public housing regulatory 
environment with that of other assisted housing programs. Generally, 
HUD agrees that streamlining the requirements and procedures included 
in the Harvard Cost Study would make the transition to asset management 
easier. Streamlining these processes would also increase PHA 
flexibility and reduce program costs.
    This proposed rule does not, however, address all of the 
recommendations of the Harvard Cost Study. Specifically, while the 
Harvard Cost Study and other industry representatives identified the 
Department's regulations in the area of tenant participation, codified 
at 24 CFR part 964, as an area that would benefit from streamlining, 
the Department has chosen not to address part 964 in this rulemaking, 
but will consider addressing it separately.

[[Page 45369]]

II. This Proposed Rule

A. Overview of Proposed Changes

    This proposed rule would amend 24 CFR part 903 to eliminate 
procedural requirements regarding the implementation of deconcentration 
policy. PHAs would no longer be required to determine the average 
income of all families residing in all covered developments, the 
average income of all families residing in each covered development, 
and whether each of the covered developments fall above, within, or 
below the Established Income Range. Part 903 would also be amended to 
remove unnecessary reporting requirements for PHA plans. PHAs would no 
longer be required to provide annual updates on PHA progress toward 
meeting goals described in the 5-year plan. Eliminating these 
requirements would benefit PHAs by reducing staff time devoted to 
administrative tasks and by achieving cost savings through reduced 
paperwork.
    Part 941 would be revised to provide PHAs greater flexibility to 
structure mixed-finance transactions. Under the proposed rule, a PHA 
partner or owner entities would be permitted to serve as the general 
contractor for a mixed-finance project or development if certain 
conditions are met. PHAs would benefit from more options to develop 
mixed-finance projects and reduced project costs by working with a PHA 
partner or owner entity.
    This proposed rule would also change 24 CFR part 966 to remove 
procedural requirements pertaining to grievances. PHAs would be 
permitted to establish their own procedures for informally settling 
grievances, obtaining a hearing, and preparing and distributing the 
decisions of the hearing officer or hearing panel. The elimination of 
these requirements would reduce PHA staff and administrative costs and 
increase their capacity to respond to hearing requests.
    HUD recognizes that PHAs may incur some initial costs in making the 
determinations afforded by the increased flexibility under the proposed 
rule. However, the Department believes that the benefits to both the 
Department and PHAs far outweigh any costs associated with this 
proposed rule. Subsequent guidance will provide assistance in 
implementing this rule and will also help to minimize additional cost 
burdens associated with it.

B. Part-by-Part Discussion

    This proposed rule would amend 24 CFR part 903 (Public Housing 
Agency Plans); part 941 (Public Housing Development); and subpart B of 
part 966 (Grievance Procedure). This proposed rule also removes 24 CFR 
part 945 (Designated Housing). This section of the preamble discusses 
the proposed regulatory amendments to these parts.
1. Part 903--Public Housing Agency Plans
    Subpart A of part 903, entitled ``Deconcentration of Poverty and 
Fair Housing in Program Admissions,'' would be amended to remove 
procedural requirements not required by statute. The elimination of 
these requirements would allow PHAs flexibility in bringing higher-
income tenants into lower-income developments and lower-income tenants 
into higher-income developments, to avoid a concentration of low-income 
families as prohibited by law. HUD data indicate that most PHAs have 
few properties that fall outside the established income range. 
Additionally, PHAs that have developments above the established income 
range often are exempt, since the income level is considered extremely 
low-income.
    The rule would remove prescriptive language in Sec.  903.2(c) 
pertaining to steps for implementation of deconcentration and elements 
of explanations or justifications, and would allow PHAs to establish 
discretionary strategies. A PHA's deconcentration plan and practices 
may not take preference over the requirements for provision of 
accessible units for disabled tenants. Section 903.2(d), which sets 
forth fair housing requirements, would be streamlined and moved to 
subpart B of 903.
    Subpart B of part 903, entitled ``PHA Plans,'' would be amended to 
remove certain obsolete references and requirements that address 
initial plan requirements. Also, references to the Drug Elimination 
Grant Program, which is no longer funded, would be removed. Further, 
this subpart would be amended to include statutory language not 
previously contained in the regulation pertaining to PHA Plan updates, 
including language requiring 5-year and annual plans to include 
statements about goals, activities, objectives, policies, or programs 
that will enable a PHA to serve the needs of child and adult victims of 
domestic violence, dating violence, sexual assault, or stalking, in 
accordance with the requirements of the Violence Against Women and 
Department of Justice Reauthorization Act of 2005 (Pub. L. 109-162).
    Section 903.7, which describes the information a PHA must provide 
in its Annual Plan, would also be revised to incorporate fair housing 
requirements and to more closely reflect statutory provisions. 
Currently codified information that is more appropriately provided in 
non-regulatory guidance would also be removed from the regulations, 
including some of the detailed information related to statements of 
housing needs, financial resources, and capital needs. The requirement 
for a statement of PHA grievance procedures would be amended to conform 
to changes to part 966 described elsewhere in this proposed rule. 
Redundant information would be revised or removed to clarify the 
regulation, including the requirement for a statement about public 
housing developments designated as housing for elderly families or 
families with disabilities.
    Sections 903.11 and 903.12, which provide information for 
submitting streamlined plans, would be removed. The submission process 
for all PHAs would be limited to policies concerning elements within 
HUD's scope of review. The scope of review is addressed in the 
regulation. These regulations address certain discretionary policies 
for which there is no HUD approval mechanism other than the Annual 
Plan. HUD would not impose any additional requirements similar to those 
that currently exist relating to submission requirements for small 
PHAs, high-performing PHAs, or those that administer only tenant-based 
assistance. HUD believes that such information is more suitable for 
non-regulatory guidance rather than in a regulation. PHAs would 
continue to provide information on how the public may reasonably obtain 
additional information on the PHA policies contained in the Annual 
Plan.
    Section 903.13 would be amended to increase PHA flexibility, reduce 
program costs, and facilitate the transition to asset management. 
Specifically, Sec.  903.13 would be amended to clarify Sec.  903.13(a), 
remove the prescriptive requirements in Sec.  903.13(b), and conform 
the section to requirements provided for by statute.
    Section 903.23, which describes the process by which HUD reviews, 
approves, or disapproves an Annual Plan, would be revised to remove 
repetitive language that is already addressed in this section.
2. Part 941--Public Housing Development
    Section 941.606 would be amended to provide greater flexibility for 
PHAs to structure mixed-finance transactions. It would allow a PHA 
partner and/or owner entities (or other entities with an identity of 
interest) to serve as the general contractor for a mixed-finance

[[Page 45370]]

project or development if the PHA or its partner conducts a public bid 
process and the identity of interest general contractor's bid is the 
lowest bid submitted in response to a public request for bids, or the 
PHA submits written justification and provides an independent third-
party cost estimate that demonstrates that the identity of interest 
general contractor's costs are less than or equal to the independent 
third-party estimate.
3. Part 945--Designated Housing--Public Housing Designated for 
Occupancy by Disabled, Elderly, or Disabled and Elderly Families
    Part 945 would be removed because it is now obsolete. Part 945 does 
not incorporate the requirements of section 10(a) of the Housing 
Opportunity Program Extension Act of 1996, Public Law 104-120 (approved 
March 28, 1996). Section 10(a) amended section 7 of the U.S. Housing 
Act of 1937 (42 U.S.C. 1437e), which governs designated housing for 
elderly and disabled families. The 1996 Act requires a PHA that wants 
to designate certain housing for these populations to have an approved 
designated housing plan, which has a substantially different set of 
requirements than the current part 945 being removed.
4. Part 966 Subpart B--Grievance Procedures and Requirements
    In subpart B, procedural requirements, not required by statute, 
would be eliminated to allow PHAs maximum flexibility in establishing 
and implementing grievance procedures.
    Section 966.54, which describes the requirements for an informal 
settlement of grievances, would be removed to allow PHAs flexibility in 
establishing such a process.
    Section 966.55, which describes the procedures to obtain a hearing, 
would be removed. PHAs would now have the flexibility to establish 
grievance procedures addressing failure to request a hearing and 
requiring escrow deposits. Matters related to scheduling and location 
would be merged with procedures governing the hearing.
    Sections 966.56 and 966.57, which describe the procedures governing 
the hearing and decision of the hearing officer would be revised to 
remove language that is overly prescriptive or repetitive. For 
instance, matters relating to transcripts, copies, and how the hearing 
is conducted would be left for the PHA to determine.

III. Findings and Certifications

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this rule under 
Executive Order 12866 (entitled, ``Regulatory Planning and Review''). 
OMB determined that this rule is a ``significant regulatory action,'' 
as defined in section 3(f) of the Order (although not an economically 
significant regulatory action under the Order). The docket file is 
available for public inspection between the hours of 8 a.m. and 5 p.m. 
weekdays in the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh 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 Regulations Division at (202) 708-3055 (this 
is not a toll-free number).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
The proposed rule is exclusively concerned with PHAs that administer 
public housing programs under section 8 of the United States Housing 
Act of 1937. Specifically, the proposed rule would streamline 
administration of the public housing program by PHAs and give PHAs more 
flexibility in establishing policies that better meet local housing 
needs and priorities. Under the definition of ``small governmental 
jurisdiction'' in section 601(5) of the RFA, the provisions of the RFA 
are applicable only to those few PHAs that are part of a political 
jurisdiction with a population of fewer than 50,000 persons. The number 
of entities potentially affected by this rule is therefore not 
substantial. Accordingly, the undersigned certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    Notwithstanding HUD's determination that this rule will not have a 
significant economic effect on a substantial number of small entities, 
HUD specifically invites comments regarding less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 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 Finding of No Significant 
Impact is available for public inspection between the hours of 8 a.m. 
and 5 p.m. weekdays in the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room 10276, Washington, DC 20410-0500. 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).

Paperwork Reduction Act

    The information collection requirements described in this rule in 
24 CFR parts 903, 941, and 945 have been approved by OMB under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB 
control numbers 2577-0226, 2577-0157, 2577-0192, and 2577-0157, 
respectively. In accordance with the Paperwork Reduction Act, HUD 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.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on state and local governments and 
is not required by statute, or preempts state law, unless the relevant 
requirements of section 6 of the Executive Order are met. This rule 
does not have federalism implications and does not impose substantial 
direct compliance costs on state and local governments or preempt state 
law within the meaning of the Executive Order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for federal agencies to 
assess the effects of their regulatory actions on state, local, and 
tribal governments, and on the private sector. This proposed rule would 
not impose any federal mandate on any state, local, or tribal 
government,

[[Page 45371]]

or on the private sector, within the meaning of the UMRA.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number applicable to the 
program affected by this rule is 14.871.

List of Subjects

24 CFR Part 903

    Administrative practice and procedure, Public housing, Reporting 
and recordkeeping requirements.

24 CFR Part 941

    Grant programs--housing and community development, Loan programs--
housing and community development, Public housing

24 CFR Part 945

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Public housing, Reporting and 
recordkeeping requirements.

24 CFR Part 966

    Grant programs--housing and community development, Public housing, 
Reporting and recordkeeping requirements.

    Accordingly, for the reasons described in the preamble, HUD 
proposes to amend 24 CFR parts 903, 941, 945, and 966 as follows:

PART 903--PUBLIC HOUSING AGENCY PLANS

    1. The authority citation for part 903 continues to read as 
follows:

    Authority: 42 U.S.C. 1437c and 3535(d).

    2. Revise the heading of subpart A to read as follows:

Subpart A--Deconcentration of Poverty

    3. Amend Sec.  903.2 by revising paragraph (c), and removing 
paragraphs (d)(1), (d)(2), (d)(3), and (e) to read as follows:


Sec.  903.2  With respect to admissions, what must a PHA do to 
deconcentrate poverty in its developments and comply with fair housing 
requirements?

* * * * *
    (c) Deconcentration of poverty and income mixing. (1) A PHA's 
deconcentration policy may include, but is not limited to, providing 
for one or more of the following actions:
    (i) Providing incentives designed to encourage eligible families 
with higher incomes to occupy dwelling units in developments 
predominantly occupied by eligible families having lower incomes, and 
provide for occupancy of eligible families having lower incomes in 
developments predominantly occupied by eligible families having higher 
incomes.
    (ii) Skipping a family on the waiting list to reach another family 
in an effort to further the goals of the PHA's deconcentration policy.
    (iii) Providing such other strategies as permitted by statute and 
determined by the PHA.
    (2) A family has the sole discretion whether to accept an offer of 
a unit made under a PHA's deconcentration policy. The PHA may not take 
any adverse action toward any eligible family for choosing not to 
accept an offer of a unit under the PHA's deconcentration policy.
* * * * *
    4. Amend Sec.  903.4 by revising paragraph (a), removing paragraph 
(c), redesignating existing paragraph (b) as paragraph (c), and adding 
a new paragraph (b), to read as follows:


Sec.  903.4  What are the public housing agency plans?

    (a) 5-Year Plan. Not less than once every 5 fiscal years, each 
public housing agency shall submit to HUD a plan that includes, with 
respect to the 5 fiscal years immediately following the date on which 
the plan is submitted:
    (1) The PHA's mission for serving the needs of low-income, very 
low-income, and extremely low-income families in the PHA's 
jurisdiction; and
    (2) The PHA's goals and objectives that enable the PHA to serve the 
needs of the families identified in the PHA's Annual Plan.
    (b) Annual Plan. (1) In general. Each PHA shall submit to HUD an 
annual PHA plan under this subsection for each fiscal year for which 
the PHA receives assistance under:
    (i) Section 8 tenant-based assistance (under section 8(o) of the 
U.S. Housing Act of 1937, 42 U.S.C. 1437f(o)) (tenant-based 
assistance); or
    (ii) Amounts from the public housing operating fund or capital fund 
(under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) 
(public housing)).
    (2) Updates. For each fiscal year after the initial submission of 
an annual plan, a PHA may comply with requirements for submission of a 
plan under this subsection by submitting an update of the plan for the 
fiscal year.
* * * * *
    5. Revise Sec.  903.5 to read as follows:


Sec.  903.5  When must a PHA submit the plans to HUD?

    (a) 5-Year Plan. For all PHAs, after submission of their first 5-
Year Plan, all subsequent 5-Year Plans must be submitted once every 5 
PHA fiscal years, no later than 75 days before the commencement of the 
PHA's fiscal year. PHAs must explain any substantial deviation from 
their 5-Year Plans in their Annual Plans. (Substantial deviation is 
determined by the PHA in accordance with criteria provided by the PHA 
in its Annual Plan, in accordance with Sec.  903.7(r).)
    (b) Annual Plans. For all PHAs, after submission of the first 
annual plan, all subsequent annual plans will be due no later than 75 
days before the commencement of the PHA's fiscal year.
    6. Add Sec.  903.6(a)(3) to read as follows:


Sec.  903.6  What information must a PHA provide in the 5-Year Plan?

    (a) * * *
    (3) The goals, objectives, policies, or programs that will enable 
the PHA to serve the needs of child and adult victims of domestic 
violence, dating violence, sexual assault, or stalking.
* * * * *
    7. Amend Sec.  903.7 as follows:
    a. Revise the introductory text;
    b. Revise paragraphs (a), (b), (c), (e)(1), (f), (h), (i)(1), 
(j)(2), and (j)(3);
    c. Remove paragraph (j)(5);
    d. Revise paragraphs (k)(1)(iii) and (k)(1)(iv) and add paragraph 
(k)(1)(v);
    e. Redesignate paragraphs (m) through (r) as (n) through (s), 
respectively;
    f. Add a new paragraph (m);
    g. Remove newly redesignated paragraph (n)(3) and redesignate 
paragraph (n)(4) as paragraph (n)(3);
    h. Revise newly redesignated paragraph (p);
    i. Remove newly redesignated paragraph (s)(1), and redesignate 
paragraphs (s)(2) and (s)(3) as paragraphs (s)(1) and (s)(2), 
respectively.
    The revisions and additions read as follows:


Sec.  903.7  What information must a PHA provide in the Annual Plan?

    The PHA's Annual Plan must be consistent with the goals and 
objectives of the PHA's 5-Year Plan.
    (a) A statement of housing needs. This statement must address the 
housing needs of the extremely low-income, low-income, and very low-
income families that reside in the jurisdiction served by the PHA, and 
other families that are on the public housing and Section 8 tenant-
based assistance waiting lists, including the housing needs of elderly 
families, disabled families, households of various races and ethnic 
groups residing in the jurisdiction or on the waiting list, and the 
means by which the PHA intends, to the maximum extent possible, to 
address those needs.

[[Page 45372]]

    (b) A statement of the PHA's deconcentration and other policies 
that govern eligibility, selection, and admissions. This statement must 
describe the PHA's policies that govern resident or tenant eligibility, 
selection, and admission. This statement also must describe any PHA 
admission preferences, and any occupancy policies that pertain to 
public housing units and housing units assisted under section 8(o) of 
the 1937 Act (42 U.S.C. 1437f(o)), as well as any unit assignment 
policies for public housing. This statement must include the following 
information:
    (1) Deconcentration policy. The PHA's deconcentration policy 
applicable to public housing, as described in Sec.  903.2(a).
    (2) Waiting list procedures. The PHA's procedures for maintaining 
waiting lists for admission to the PHA's public housing developments 
may include (notwithstanding any other law, regulation, handbook, or 
notice to the contrary) a system of site-based waiting lists as 
authorized by section 6(r) of the 1937 Act (42 U.S.C. 1437d) that is 
consistent with all applicable civil rights and fair housing laws and 
regulations.
    (c) A statement of financial resources. A statement of financial 
resources available to the PHA and planned uses for those resources.
* * * * *
    (e) A statement of the PHA's rules, standards, and policies. (1) A 
statement of the PHA's rules, standards, and policies governing 
maintenance and management of housing owned, assisted, or operated by 
the PHA.
* * * * *
    (f) Grievance procedures. A statement of the PHA's grievance 
procedures.
* * * * *
    (h) A statement of any demolition and/or disposition. With respect 
to public housing only, a description of any public housing 
development, or portion of a public housing development, owned by the 
PHA for which the PHA has applied or will apply for demolition and/or 
disposition approval under section 18 of the 1937 Act (42 U.S.C. 
1437p), and the timetable for demolition and/or disposition. Note: The 
application and approval process for demolition and/or disposition is a 
separate process. Approval of the PHA Plan does not constitute approval 
of these activities.
    (i) A statement of the designated public housing developments. (1) 
A statement of the public housing developments (or portions thereof) 
that the PHA has designated or will apply for designation as housing 
for only elderly families, or only disabled families, or elderly and 
disabled families, as provided by section 7 of the 1937 Act (42 U.S.C. 
1437e). Note: The designated housing application and approval process 
is a separate process.
* * * * *
    (j) * * *
    (2) The statement also must include an analysis of the developments 
or buildings required to be converted under section 33 of the 1937 Act.
    (3) For both voluntary and required conversions, the statement must 
include the amount of assistance received to be used for rental 
assistance or other housing assistance in connection with such 
conversion.
* * * * *
    (k) * * *
    (1) * * *
    (iii) An approved HOPE I program (42 U.S.C. 1437aaa);
    (iv) Any homeownership programs for which the PHA has applied to 
administer or will apply to administer under section 5(h), the HOPE I 
program, or section 32 of the 1937 Act (42 U.S.C. 1437z-4); or
    (v) Any homeownership programs administered by the PHA under 
section 9(d)(1)(J) of the 1937 Act (42 U.S.C. 1437g).
* * * * *
    (m)(1) A description of any activities, services, or programs 
provided or offered by a PHA, either directly or in partnership with 
other service providers, to child or adult victims of violence, dating 
violence, sexual assault, or stalking;
    (2) A description of any activities, services, or programs provided 
or offered by a PHA that helps child and adult victims of domestic 
violence, dating violence, sexual assault, or stalking; and
    (3) A description of any activities, services, or programs provided 
or offered by a PHA to prevent domestic violence, dating violence, 
sexual assault, or stalking, or to enhance victim safety in assisted 
families.
* * * * *
    (p) Civil rights certification and fair housing. All admission, 
occupancy, and other policies for public housing and Section 8 tenant-
based housing programs must comply with Fair Housing Act requirements 
and with regulations to affirmatively further fair housing.
    (1) General fair housing requirements. (i) Nondiscrimination. A PHA 
must carry out its PHA plan in conformity with the nondiscrimination 
requirements in federal civil rights laws, including Title VI of the 
Civil Rights Act of 1964 and the Fair Housing Act.
    (ii) Affirmatively furthering fair housing. PHA policies that 
govern eligibility, selection, and admissions under its PHA plan should 
be designed to reduce racial and national origin concentrations. Any 
affirmative steps or incentives a PHA plans to take must be stated in 
the admissions policy. HUD regulations at 24 CFR 1.4(b)(6)(ii) provide 
that PHAs should take affirmative steps to overcome the effects of 
conditions that resulted in limiting participation of persons due to 
any prohibited basis.
    (2) Site-based waiting lists. (i) The PHA plan shall address the 
reasonable measures the PHA has taken and will take to ensure that 
adoption of site-based waiting lists is consistent with affirmatively 
furthering fair housing requirements. Measures include marketing 
activities to attract applicants regardless of race or ethnicity and 
providing full disclosure to each applicant of all available 
developments and programs, including amenities and accessibility, 
within the PHA's jurisdiction.
    (ii) Adoption of a site-based waiting list may not violate any 
court order, settlement agreement, conciliation agreement, voluntary 
compliance agreement, or any other agreement with HUD.
    (3) Civil rights certification. (i) The PHA must certify, as part 
of both its annual and 5-year plans, that it will carry out its plan in 
conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000d), the Fair Housing Act (42 U.S.C. 3601-19), section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), and Title II of the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.). The 
PHA also must certify that it will affirmatively further fair housing.
    (ii) A PHA shall be considered in compliance with the certification 
requirement to affirmatively further fair housing if the PHA fulfills 
the requirements of Sec.  903.7(p)(1), examines its programs or 
proposed programs to identify any impediments to fair housing choice 
within those programs, addresses those impediments in a reasonable 
fashion in view of the resources available, and works with local 
jurisdictions to implement any of the jurisdiction's initiatives to 
affirmatively further fair housing in conformity with Sec.  903.15. A 
PHA shall maintain records reflecting these analyses and actions.
* * * * *


Sec. Sec.  903.11 and 903.12  [Removed]

    8. Remove Sec. Sec.  903.11 and 903.12.
    9. Amend Sec.  903.13 by revising paragraphs (a) and (b) to read as 
follows:

[[Page 45373]]

Sec.  903.13  What is a Resident Advisory Board and what is its role in 
development of the Annual Plan?

    (a)(1) A Resident Advisory Board refers to a board or boards, as 
provided in paragraph (b) of this section, whose membership consists of 
individuals who adequately reflect and represent the residents assisted 
by the PHA.
    (2) The role of the Resident Advisory Board (or Resident Advisory 
Boards) is to assist and make recommendations regarding the development 
of the PHA plan, and any significant amendment or modification to the 
PHA plan.
    (b) Each PHA must establish one or more Resident Advisory Boards.
* * * * *


 Sec.  903.23  [Amended]

    10. Amend Sec.  903.23 by removing paragraph (c)(1), redesignating 
existing paragraphs (c)(2), (c)(3), and (c)(4) as paragraphs (c)(1), 
(c)(2), and (c)(3), respectively, removing paragraph (d), and 
redesignating existing paragraph (e) as paragraph (d).
* * * * *

PART 941--PUBLIC HOUSING DEVELOPMENT

    11. The authority citation for part 941 continues to read as 
follows:

    Authority: 42 U.S.C. 1437b, 1437c, 1437g, 3535(d).

    12. Revise Sec.  941.606(n)(1)(ii)(B) to read as follows:


Sec.  941.606  Proposal.

* * * * *
    (n) * * *
    (1) * * *
    (ii) * * *
    (B) If the partner and/or owner entity (or any other entity with an 
identity of interest with such parties) wants to serve as the general 
contractor for the project or development, it may award itself the 
construction contract if either:
    (1) The identity of interest general contractor's bid is the lowest 
bid submitted in response to a public request for bids; or
    (2) The PHA submits a written justification and provides an 
independent third-party cost estimate that demonstrates that the 
identity of interest general contractor's costs are less than or equal 
to the independent third-party cost estimate.
* * * * *

PART 945--[REMOVED]

    13. Under the authority of 42 U.S.C. 1473e and 3535(d), part 945 is 
removed.

PART 966--PUBLIC HOUSING LEASE AND GRIEVANCE PROCEDURES

    14. The authority citation for part 966 continues to read as 
follows:

    Authority: 42 U.S.C. 1437d and 3535(d).

    15. Amend Sec.  966.52 by revising paragraph (a) to read as 
follows:


Sec.  966.52  Requirements.

    (a) Each PHA shall adopt a grievance procedure affording each 
tenant an opportunity for a hearing on a grievance, as defined in Sec.  
966.53 in accordance with the requirements, standards, and criteria 
contained in this subpart. A PHA may establish an expedited grievance 
procedure as defined in Sec.  966.53.
* * * * *
    16. Amend Sec.  966.53 by revising paragraph (b), removing 
paragraph (e), redesignating paragraph (d) as paragraph (e) and 
revising it, adding new paragraph (d) and removing paragraph (g) to 
read as follows:


Sec.  966.53  Definitions.

* * * * *
    (b) Complainant shall mean any tenant whose grievance is presented 
to the PHA or at the project management office.
* * * * *
    (d) Expedited grievance means a procedure established by the PHA 
for any grievance concerning a termination of tenancy or eviction that 
involves:
    (1) Any criminal activity that threatens the health, safety, or 
right to peaceful enjoyment of the PHA's public housing premises by 
other residents or employees of the PHA; or
    (2) Any drug-related or violent criminal activity on or off such 
premises.
    (e) Hearing officer shall mean an impartial person or persons 
designated by the PHA, other than the person who made or approved the 
decision under review, or a subordinate of that person.
* * * * *
    17. Remove Sec.  966.54 and Sec.  966.55.
    18. Amend Sec.  966.56 by revising paragraph (a), removing 
paragraphs (b)(5) and (c), redesignating paragraph (d) as paragraph (c) 
and revising it, redesignating existing paragraph (e) as paragraph (d), 
removing paragraphs (f) and (g), and redesignating existing paragraph 
(h) as paragraph (e) to read as follows:


Sec.  966.56  Procedures governing the hearing.

    (a) The hearing shall be scheduled promptly for a time and place 
reasonably convenient to both the complainant and the PHA and held 
before a hearing officer. A written notification specifying the time, 
place, and the procedures governing the hearing shall be delivered to 
the complainant and the appropriate official.
* * * * *
    (c) If the complainant or the PHA fails to appear at a scheduled 
hearing, the hearing officer may make a determination to postpone the 
hearing for not to exceed 5 business days or may make a determination 
that the party has waived the party's right to a hearing. Both the 
complainant and the PHA shall be notified of the determination by the 
hearing officer. A determination that the complainant has waived the 
complainant's right to a hearing shall not constitute a waiver of any 
right the complainant may have to contest the PHA's disposition of the 
grievance in an appropriate judicial proceeding.
* * * * *
    19. Revise Sec.  966.57 to read as follows:


Sec.  966.57  Decision of the hearing officer.

    (a) The hearing officer shall prepare a written decision, including 
the reasons for the PHA's decision, within a reasonable time after the 
hearing. A copy of the decision shall be sent to the complainant and 
the PHA. The PHA shall retain a copy of the decision in the tenant's 
folder.
    (b) The decision of the hearing officer shall be binding on the 
PHA, unless the PHA Board of Commissioners determines that:
    (1) The grievance does not concern PHA action or failure to act in 
accordance with or involving the complainant's lease or PHA 
regulations, which adversely affects the complainant's rights, duties, 
welfare, or status.
    (2) The decision of the hearing officer is contrary to applicable 
federal, state, or local law, HUD regulations, or requirements of the 
ACC between HUD and the PHA.
    (c) A decision by the hearing officer or Board of Commissioners in 
favor of the PHA, or which denies the relief requested by the 
complainant in whole or in part, shall not constitute a waiver of, nor 
affect in any manner whatsoever, any rights the complainant may have to 
a trial de novo or judicial review in any judicial proceedings, which 
may thereafter be brought in the matter.

    Dated: July 7, 2008.
Paula O. Blunt,
General Deputy Assistant, Secretary for Public and Indian Housing.
[FR Doc. E8-17839 Filed 8-4-08; 8:45 am]
BILLING CODE 4210-67-P