The Housing and Economic Recovery Act of 2008 Applicability to HUD Public Housing, Section 8 Tenant-Based Voucher and Section 8 Project-Based Voucher Programs, 71037-71040 [E8-27871]
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Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Notices
information to the responsible entity or
to HUD to assist in the completion of
those requirements.
6. HUD’s Strategic Goals. HUD is
committed to ensuring that programs
result in the achievement of HUD’s
strategic mission. HCVs awarded under
this NOFA support the Department’s
strategic goals of expanding access to
and the availability of decent, affordable
rental housing. For more information
about HUD’s Strategic Plan and Annual
Performance Plan, you may visit HUD’s
Web site at https://www.hud.gov/offices/
cfo/reports/cforept.cfm. Also, see
Section V.B. of the FY 2008 General
Section for information on ‘‘HUD’s
Strategic Goals to Implement HUD’s
Strategic Framework and Demonstrate
Results’’.
7. HUD Policy Priorities. HCVs
awarded under this NOFA supports
HUD’s policy of providing increased
homeownership and rental
opportunities for low- and moderateincome persons.
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C. Reporting
1. Family Report. All successful
applicants including MTW agencies)
must report the usage of voucher funds
under this NOFA through required
submissions of the form HUD–50058,
Family Report. PHAs must enter the
program code ‘‘FUP’’ on line 2n of the
Family Report for families who are
assisted with vouchers under this
NOFA. PHAs must maintain this code
on the form HUD–50058 for the
duration of the family’s participation in
the HCV program.
2. Racial and Ethnic Data. HUD
requires that funded recipients collect
race and ethnic beneficiary data. HUD
has adopted the Office of Management
and Budget Standards for the Collection
of Race and Ethnic Data. In view of
these requirements, you should use form
HUD–27061, Racial and Ethic Data
Reporting Form (instruction for its use),
found on www.HUDclips.org for this
purpose.
VII. Agency Contacts
1. Technical Assistance. Before the
application deadline date, you can
contact the Public and Indian Housing
Resource Center (PIHRC) for answers to
your questions. However, staff is not
permitted to assist in preparing your
application. Also, following selection of
applicants, but before awards are
announced, staff may assist in clarifying
or confirming information that is a
prerequisite to the offer of an award.
The PIHRC can be reached by calling 1–
800–955–2232 (this is a toll free
number). Persons with hearing or
speech impairments may access these
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numbers via TTY (text telephone) by
calling the Federal Information Relay
Service at 1–800–877–8339 (this is a
toll-free number). For technical support
for registering to apply using
www.grants.gov, downloading an
application, or electronically submitting
an application, please call Grants.gov
Customer Support at 800–518–GRANTS
(472687) (This is a toll-free number) or
e-mail support@grants.gov.
2. Satellite Broadcast. HUD will not
have a satellite broadcast on the FUP.
VIII. Other Information
A. Public Access, Documentation and
Disclosure: For information, please
review section VIII.G. of the FY 2008
General Section.
B. Paperwork Reduction Act: The
information collection requirements
contained in this document have been
submitted to the Office of Management
and Budget (OMB) under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520) and approval is pending. Once
approved, HUD will publish a notice in
the Federal Register notifying the
public regarding the OMB approval
number. 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 number.
Dated: November 10, 2008.
Paula O. Blunt,
General Deputy Assistant Secretary for Public
and Indian Housing.
[FR Doc. E8–27873 Filed 11–21–08; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5242–N–01]
The Housing and Economic Recovery
Act of 2008 Applicability to HUD Public
Housing, Section 8 Tenant-Based
Voucher and Section 8 Project-Based
Voucher Programs
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
AGENCY:
SUMMARY: This notice provides
information about the applicability to
HUD’s public housing and Section 8
tenant-based and project-based voucher
programs of certain provisions of the
Housing and Economic Recovery Act of
2008. This notice provides an overview
of key provisions that affect HUD’s
public housing programs, identifies
those provisions that are self-
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71037
implementing and require no action on
the part of HUD for participants to
commence taking action to be in
compliance, those provisions that
require implementing regulations on the
part of HUD, and advises of efforts
underway within HUD to further
facilitate compliance with this new law,
including rules and guidance that as
may be necessary or appropriate.
Provisions of this new law that affect
project-based assisted housing programs
administered by HUD’s Office of
Housing are also identified. This notice
also solicits comments, questions, or
proposals that HUD should take into
consideration in developing more
detailed guidance or rules to implement
those provisions of the new law that
require more detailed guidance or
rulemaking.
Comment Due Date: December
24, 2008.
DATES:
Interested persons are
invited to submit comments regarding
this proposed rule to the Regulations
Division, Office of General Counsel, 451
7th Street, SW., Room 10276,
Department of Housing and Urban
Development, Washington, DC 20410–
0500. Communications must refer to the
above docket number and title. There
are two methods for submitting public
comments. 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
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 them 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.
ADDRESSES:
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.
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Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Notices
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
through TTY by calling the Federal
Information Relay Service at 800–877–
8339. Copies of all comments submitted
are available for inspection and
downloading at www.regulations.gov.
For
information about HUD’s Public
Housing and Voucher programs, contact
David Vargas, Associate Deputy
Assistant Secretary for Public Housing
and Voucher Programs, Office of Public
and Indian Housing, Room 4206,
telephone number 202–708–2815. For
information about the HUD’s Capital
Fund program, please contact Jeffrey
Riddel, Director, Capital Program
Division, Office of Public and Indian
Housing, Room 4130, telephone number
202–401–8812. The address for both
offices is the Department of Housing
and Urban Development, 451 7th Street,
SW., Washington, DC 20410. The listed
telephone numbers are not toll-free
numbers. Persons with hearing or
speech impairments may access this
number through TTY by calling the tollfree Federal Information Relay Service
at 1–800–877–8339.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
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I. Overview
The Housing and Economic Recovery
Act of 2008 (Pub. L. 110–289, 122 Stat.
2654, approved July 30, 2008) (HERA)
made a number of changes to the U.S.
Housing Act of 1937 (42 U.S.C. 1437 et
seq.) (1937 Act) that affect PIH
programs, including changes to the
definition of income, which also affect
the Office of Housing’s project-based
assistance programs; the public housing
agency (PHA) plan; the voucher
program; the capital and operating
funds with respect to emergency funds;
and establishing a collection of
information on tenants in tax credit
projects. This notice identifies those
changes and provides information to
program participants on how those
changes affect HUD’s public housing
programs.
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II. HERA Amendments to the 1937 Act
Under the 1937 Act, HUD promotes
the goal of providing decent and
affordable housing for all citizens by
providing funds for housing assistance.
These funds directly assist PHAs to
provide affordable publicly owned
housing and also subsidize affordable
privately owned housing. HERA makes
changes that affect both public and
private affordable housing, as described
in this notice.
A. Definition of Annual Income
Section 2608 of Title VI of Division B
of HERA amends the definition of
‘‘annual income’’ in section 3(b)(4) of
the 1937 Act to exclude any deferred
Department of Veterans Affairs (VA)
disability benefits that are received in a
lump sum amount or in prospective
monthly amounts from the definition of
income. Accordingly, as of the effective
date of HERA, July, 30, 2008, such
benefits are not to be included for
purposes of determining the annual
income of an applicant for or recipient
of benefits under the 1937 Act. This
income exclusion is similar to the
existing exclusion for deferred periodic
amounts from supplemental security
income and Social Security benefits
under 24 CFR 5.609(c)(14). Although the
full amount of periodic Social Security
payments is included in annual income
pursuant to 24 CFR 5.609(b)(4), the
deferred amount resulting from the
delayed start of the periodic payment is
not included in annual income. In the
same way, the full amount of periodic
VA disability benefit payments will
continue to be included in annual
income pursuant to 24 CFR 5.609(b)(4),
but the deferred amount resulting from
the delayed start of the disability
payments will not be included in
annual income. A payment qualifies as
a VA disability benefit if it is identified
as a disability benefit in the VA benefit
award letter, regardless of whether or
not the family member that is the
beneficiary of the award would qualify
as a person with disabilities under
HUD’s regulations. For existing
residents or tenants, including those
residing in project-based assisted
housing administered by HUD’s Office
of Housing, the new exclusion for
deferred payments will be made
applicable at the time of annual
recertification of income, or at interim
examination. This provision is selfimplementing without further
regulatory action by HUD. HUD will
later publish a conforming rule to
include this item with the exclusion
from income for deferred Social
Security benefits at 24 CFR 5.609(c)(14).
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B. Qualified Public Housing Agencies
Section 2702 of Title VII of Division
B of HERA amends section 5A(b) of the
1937 Act by establishing ‘‘qualified
public housing agencies,’’ a category of
PHAs that are provided substantial
paperwork relief, primarily with respect
to the PHA Annual Plan requirements in
section 5(A)(b) of the 1937 Act. The
requirement for preparation and
submission of a 5-year plan pursuant to
section 5A(a) of the 1937 Act is not
affected.
A PHA is a ‘‘qualified public housing
agency’’ if the PHA is not designated as
a troubled PHA, does not have a failing
score under the Section 8 Management
Assessment Program during the prior 12
months, and if the sum of the public
housing units administered by the
agency and the section 8(o) vouchers
authorized under the PHA’s
Consolidated Annual Contributions
Contract, is 550 or less. The paperwork
relief to qualified PHAs, as provided in
section 2702, is effective as of the
effective date of HERA, July 30, 2008,
and will be made applicable to such
PHAs commencing with the next date of
Annual Plan submission.
HUD will make conforming changes
to its regulations at 24 CFR part 903 and
issue guidance, as may be determined
necessary, to further address qualified
PHAs, including the following statutory
provisions that are applicable to
qualified PHAs. The statutory
provisions applicable to qualified PHAs
are self-implementing.
1. Public Housing Agency (PHA)
Plans. New section 5A(b)(3)(A) of the
1937Act excludes qualified PHAs from
the requirement to prepare and submit
an annual PHA plan.
2. Civil Rights Certification. Even
though an annual PHA plan is not
required of a qualified PHA, section
5A(b)(3)(B) maintains the requirement
for such agencies to prepare and submit
the annual civil rights certification
provided for in section 5A(d)(16) of the
1937 Act. Accordingly, qualified PHAs
must continue to submit their civil
rights certifications to HUD for review.
3. Resident Advisory Board. A new
section 5A(d)(4) is added to affirm that
qualified PHAs are still subject to the
requirement to establish one or more
resident advisory boards. A requirement
is also added to consult with, and
consider the recommendations of, the
resident advisory board at the annual
public hearing required under new
section 5A(f)(5), regarding any changes
to the goals, objectives, and policies of
the PHA.
4. Annual Public Meeting. As noted in
paragraph B.3. of this notice, new
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section 5A(f)(5) of the 1937 Act requires
a qualified PHA to conduct annually a
public hearing to discuss any changes to
the goals, objectives, and policies of the
agency; and to invite public comment
regarding such changes. The PHA must
publish a notice of the hearing and
relevant information, and make such
information available for inspection at
its principal office, at least 45 days
before the date that the hearing is held.
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C. Section 9 Emergency Set-Aside
Section 2804 of Title VIII of Division
B of HERA strikes section 9(k) of the
1937 Act, which is entitled ‘‘Emergency
Reserve and Use of Amounts.’’ The
removal of section 9(k) eliminates the
requirement imposed on HUD to set
aside, in each fiscal year, not more than
two percent of the total amount of
public housing operating funds and
capital funds made available each fiscal
year through appropriations acts for
emergencies and other disasters and
housing needs resulting from any
settlement of litigation. Section 9(k) was
applicable to and imposed an obligation
on HUD.
D. Section 8 Tenant Based Assistance:
Housing Choice Voucher Program—
Rent for Tax Credit Units
Subtitle B of Title VIII of HERA
(sections 2831 through 2835) makes a
number of changes to coordinate tax
incentives for private housing and
federal housing programs, including the
Section 8 voucher program. As one of
these changes, the procedure for
determining the rent reasonableness
standard applicable to dwelling units
receiving low-income housing tax
credits (LIHTC) or assistance under the
HOME Investments Partnership (HOME)
program is streamlined by section
2835(a)(2) of HERA, which adds section
8(o)(10)(F) to the 1937 Act.
A rent comparison with unassisted
local market units is not required for
such dwelling units if the rent does not
exceed the rent for other LIHTC or
HOME assisted units in the project that
are not occupied by families with tenant
based assistance. The rent shall be
considered reasonable if it does not
exceed the greater of (1) the rent for
other LIHTC or HOME assisted units in
the project not occupied by families
with tenant based assistance, or (2) the
payment standard established by a PHA
for a unit of the size involved. This
provision is effective and may be used
commencing with the date of enactment
of HERA, July 30, 2008. Accordingly,
this provision is self-implementing.
HUD will make conforming changes to
its regulations at 24 CFR 982.507 to
reflect this statutory provision.
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E. Section 8 Project Based Voucher
Program
Section 2835(a)(1) of HERA makes
several changes to the Section 8 projectbased voucher (PBV) program under
section 8(o)(13) of the 1937 Act (42
U.S.C. 1437f(o)(13)) and 24 CFR part
983 of HUD’s regulations, as follows:
1. Applicability of 25 Percent Cap on
Number of PBV Units. Prior to
amendment by section 2835(a)(1)(A) of
HERA, PBV assistance was limited to 25
percent of the units in a building. This
cap in section 8(o)(13)(D)(i) of the 1937
Act is amended by replacing the term
‘‘building’’ with the term ‘‘project,’’
defined to mean a single building,
multiple contiguous buildings, or
multiple buildings on contiguous
parcels of land. HUD will make
conforming changes to its regulations at
24 CFR 983.56 to reflect this statutory
provision. Accordingly, this provision is
self-implementing. HUD specifically
requests comments on the impact on
deconcentration efforts concerning the
change in terms from ‘‘building’’ to
‘‘project’’ as discussed in this Section
II.E.1 of this notice.
2. Term of Initial Housing Assistance
Payment (HAP) Contract. The maximum
term of the initial HAP contract
provided in section 8(o)(13)(F) of the
1937 Act is extended from 10 to 15
years by section 2835(a)(1)(B) of HERA.
HUD considers this provision to be
available for use commencing with the
date of enactment of HERA, July 30,
2008. Accordingly, this provision is selfimplementing. Conforming changes will
be made to HUD’s regulations to reflect
the longer permissible term of the initial
HAP contract.
3. Extension of initial term. Section
8(o)(13)(G) of the 1937 Act is amended
by HERA section 2835(a)(1)(C) to
specify the maximum term for an
extension of the HAP contract as 15
years, at the election of the PHA and
owner. A PHA may agree to enter into
an extension at the time of the initial
HAP contract or any time before
expiration of the contract. This
provision may be utilized commencing
with the date of enactment of HERA,
July 30, 2008. Although this provision is
self-implementing, such contract or
contract extension may not exceed 15
years cumulatively. Additionally, a PHA
must still determine that the extension
of the contract is appropriate to achieve
long-term affordability of the housing or
to expand housing opportunities.
HUD will make conforming changes
to its regulations, as well as any
additional changes related to contract
extensions that may be necessary for the
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71039
orderly administration of the PBV
program.
4. Rent calculation. Language is
added by section 2835(a)(1)(D) of HERA
to section 8(o)(13)(H) of the 1937 Act to
permit a PHA to use the higher section
8 rent for a tax credit unit if the LIHTC
rent is less than the amount that would
be permitted under section 8. The rent
reasonableness of section 8(o)(10)(A)
must also continue to be met.
This provision may be utilized
commencing with the date of enactment
of HERA, July 30, 2008. Accordingly,
this provision is self-implementing. A
conforming change to HUD’s regulations
will follow.
5. Rent adjustments. Section
2835(a)(1)(E) of HERA amends section
8(o)(13)(I) of the 1937 Act to make
permissive a HAP contract provision
that the maximum rent on a unit shall
not be less than the initial rent. Because
this provision is permissive, and not
mandatory, HUD is considering
parameters for when its use would be
appropriate. Accordingly, this provision
is not self-implementing. HUD will
finalize its policy on this provision
through rulemaking.
6. Use of PBV in Cooperative Housing
and Elevator Buildings. A new section
8(o)(13)(L) is added by section
2835(a)(1)(F) of HERA to allow PHAs to
enter into HAP contracts with respect to
units in cooperative housing and in
high-rise elevator projects. The
authority for units in high-rise elevator
projects specifically states it may be
exercised without review and approval
by HUD. HUD considers section
8(o)(13)(L) to be effective commencing
with the date of enactment of HERA,
July 30, 2008. Accordingly, this
provision is self-implementing. HUD
will make any necessary conforming
changes to its regulations.
7. Reviews. Section 2835(a)(1)(F) of
HERA also provides relief from certain
review requirements by adding section
8(o)(13)(M) to the 1937 Act. New section
8(o)(13)(M)(i) removes the requirement
to conduct a subsidy layering review in
the case of a HAP contract for an
existing structure or if such a review has
been conducted by the applicable state
or local agency. This provision is selfimplementing for existing housing. The
provision, however, is not selfimplementing for newly constructed or
rehabilitated housing, HUD will be
issuing guidance on how such reviews
must be conducted for newly
constructed or rehabilitated housing.
Section 8(o)(13)(M)(ii) relieves a PHA
from undertaking an environmental
review for an existing structure, except
to the extent such a review is otherwise
required by law or regulation. Under 24
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Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Notices
CFR part 58, federal environmental
reviews are undertaken by a
Responsible Entities (usually units of
general local governments), not PHAs.
In addition, any federally required
environmental review is ‘‘required by
law or regulation,’’ so there do not
appear to be any federally required
environmental reviews that would be
eliminated by this provision.
F. Collection of Information on Tenants
in Tax Credit Projects
HERA section 2835(d) adds a new
section 36 to the 1937 Act to require
state agencies administering LIHTC
projects to furnish HUD with
information on tenants residing in such
projects. This provision is also
applicable to project-based assisted
housing programs administered by
HUD’s Office of Housing. HUD must
also establish standards and definitions
for the information to be collected. HUD
will implement this provision through a
notice prepared in accordance with the
Paperwork Reduction Act and to be
published in the Federal Register.
Dated: November 18, 2008.
Paula O. Blunt,
General Deputy Assistant Secretary for Public
and Indian Housing.
[FR Doc. E8–27871 Filed 11–21–08; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5187–N–63]
Subterranean Termite Treatment
Builder’s Certification and Guarantee,
and the New Construction
Subterranean Termite Soil Treatment
Record
Office of the Chief Information
Officer, HUD.
ACTION: Notice.
AGENCY:
SUMMARY: The proposed information
collection requirement described below
has been submitted to the Office of
Management and Budget (OMB) for
review, as required by the Paperwork
Reduction Act. The Department is
soliciting public comments on the
subject proposal.
The collection of the requested
information requires that the sites for
HUD insured structures must be free of
termite hazards. Builders certify and
guarantee that all required treatment for
termites are performed and there is no
infestation of treated areas for a year.
Also, pest control companies are
required to provide a record of any soil
treatment methods used to prevent
subterranean termite infestation. The
respondents for this collection are
builders, pest control companies,
mortgage lenders and home buyers.
DATES: Comments Due Date: December
24, 2008.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
approval Number (2502–0525) and
should be sent to: HUD Desk Officer,
Office of Management and Budget, New
Executive Office Building, Washington,
DC 20503; fax: 202–395–6974.
FOR FURTHER INFORMATION CONTACT:
Lillian Deitzer, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 Seventh
Street, SW., Washington, DC 20410; email Lillian Deitzer at
Lillian_L._Deitzer@HUD.gov or
telephone (202) 402–8048. This is not a
toll-free number. Copies of available
documents submitted to OMB may be
obtained from Ms. Deitzer.
SUPPLEMENTARY INFORMATION: This
notice informs the public that the
Department of Housing and Urban
Development has submitted to OMB a
request for approval of the Information
collection described below. This notice
is soliciting comments from members of
the public and affecting agencies
concerning the proposed 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.
This Notice Also Lists the Following
Information
Title of Proposal: Subterranean
Termite Treatment Builder’s
Certification and Guarantee, and the
New Construction subterranean Termite
Soil Treatment Record.
OMB Approval Number: 2502–0525.
Form Numbers: HUD–NPCA–99 and
HUD–NPCA–99–B.
Description of the Need for the
Information and its Proposed Use:
The collection of the requested
information requires that the sites for
HUD insured structures must be free of
termite hazards. Builders certify and
guarantee that all required treatment for
termites are performed and there is no
infestation of treated areas for a year.
Also, pest control companies are
required to provide a record of any soil
treatment methods used to prevent
subterranean termite infestation. The
respondents for this collection are
builders, pest control companies,
mortgage lenders and home buyers.
Frequency of Submission: On
occasion.
Number of
respondents
Annual
responses
63,123
126,246
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]]>Agencies
[Federal Register Volume 73, Number 227 (Monday, November 24, 2008)]
[Notices]
[Pages 71037-71040]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27871]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5242-N-01]
The Housing and Economic Recovery Act of 2008 Applicability to
HUD Public Housing, Section 8 Tenant-Based Voucher and Section 8
Project-Based Voucher Programs
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice provides information about the applicability to
HUD's public housing and Section 8 tenant-based and project-based
voucher programs of certain provisions of the Housing and Economic
Recovery Act of 2008. This notice provides an overview of key
provisions that affect HUD's public housing programs, identifies those
provisions that are self-implementing and require no action on the part
of HUD for participants to commence taking action to be in compliance,
those provisions that require implementing regulations on the part of
HUD, and advises of efforts underway within HUD to further facilitate
compliance with this new law, including rules and guidance that as may
be necessary or appropriate. Provisions of this new law that affect
project-based assisted housing programs administered by HUD's Office of
Housing are also identified. This notice also solicits comments,
questions, or proposals that HUD should take into consideration in
developing more detailed guidance or rules to implement those
provisions of the new law that require more detailed guidance or
rulemaking.
DATES: Comment Due Date: December 24, 2008.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule to the Regulations Division, Office of General
Counsel, 451 7th Street, SW., Room 10276, Department of Housing and
Urban Development, Washington, DC 20410-0500. Communications must refer
to the above docket number and title. There are two methods for
submitting public comments. 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 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 them 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.
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.
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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 through TTY by calling the Federal Information
Relay Service at 800-877-8339. Copies of all comments submitted are
available for inspection and downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For information about HUD's Public
Housing and Voucher programs, contact David Vargas, Associate Deputy
Assistant Secretary for Public Housing and Voucher Programs, Office of
Public and Indian Housing, Room 4206, telephone number 202-708-2815.
For information about the HUD's Capital Fund program, please contact
Jeffrey Riddel, Director, Capital Program Division, Office of Public
and Indian Housing, Room 4130, telephone number 202-401-8812. The
address for both offices is the Department of Housing and Urban
Development, 451 7th Street, SW., Washington, DC 20410. The listed
telephone numbers are not toll-free numbers. Persons with hearing or
speech impairments may access this number through TTY by calling the
toll-free Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Overview
The Housing and Economic Recovery Act of 2008 (Pub. L. 110-289, 122
Stat. 2654, approved July 30, 2008) (HERA) made a number of changes to
the U.S. Housing Act of 1937 (42 U.S.C. 1437 et seq.) (1937 Act) that
affect PIH programs, including changes to the definition of income,
which also affect the Office of Housing's project-based assistance
programs; the public housing agency (PHA) plan; the voucher program;
the capital and operating funds with respect to emergency funds; and
establishing a collection of information on tenants in tax credit
projects. This notice identifies those changes and provides information
to program participants on how those changes affect HUD's public
housing programs.
II. HERA Amendments to the 1937 Act
Under the 1937 Act, HUD promotes the goal of providing decent and
affordable housing for all citizens by providing funds for housing
assistance. These funds directly assist PHAs to provide affordable
publicly owned housing and also subsidize affordable privately owned
housing. HERA makes changes that affect both public and private
affordable housing, as described in this notice.
A. Definition of Annual Income
Section 2608 of Title VI of Division B of HERA amends the
definition of ``annual income'' in section 3(b)(4) of the 1937 Act to
exclude any deferred Department of Veterans Affairs (VA) disability
benefits that are received in a lump sum amount or in prospective
monthly amounts from the definition of income. Accordingly, as of the
effective date of HERA, July, 30, 2008, such benefits are not to be
included for purposes of determining the annual income of an applicant
for or recipient of benefits under the 1937 Act. This income exclusion
is similar to the existing exclusion for deferred periodic amounts from
supplemental security income and Social Security benefits under 24 CFR
5.609(c)(14). Although the full amount of periodic Social Security
payments is included in annual income pursuant to 24 CFR 5.609(b)(4),
the deferred amount resulting from the delayed start of the periodic
payment is not included in annual income. In the same way, the full
amount of periodic VA disability benefit payments will continue to be
included in annual income pursuant to 24 CFR 5.609(b)(4), but the
deferred amount resulting from the delayed start of the disability
payments will not be included in annual income. A payment qualifies as
a VA disability benefit if it is identified as a disability benefit in
the VA benefit award letter, regardless of whether or not the family
member that is the beneficiary of the award would qualify as a person
with disabilities under HUD's regulations. For existing residents or
tenants, including those residing in project-based assisted housing
administered by HUD's Office of Housing, the new exclusion for deferred
payments will be made applicable at the time of annual recertification
of income, or at interim examination. This provision is self-
implementing without further regulatory action by HUD. HUD will later
publish a conforming rule to include this item with the exclusion from
income for deferred Social Security benefits at 24 CFR 5.609(c)(14).
B. Qualified Public Housing Agencies
Section 2702 of Title VII of Division B of HERA amends section
5A(b) of the 1937 Act by establishing ``qualified public housing
agencies,'' a category of PHAs that are provided substantial paperwork
relief, primarily with respect to the PHA Annual Plan requirements in
section 5(A)(b) of the 1937 Act. The requirement for preparation and
submission of a 5-year plan pursuant to section 5A(a) of the 1937 Act
is not affected.
A PHA is a ``qualified public housing agency'' if the PHA is not
designated as a troubled PHA, does not have a failing score under the
Section 8 Management Assessment Program during the prior 12 months, and
if the sum of the public housing units administered by the agency and
the section 8(o) vouchers authorized under the PHA's Consolidated
Annual Contributions Contract, is 550 or less. The paperwork relief to
qualified PHAs, as provided in section 2702, is effective as of the
effective date of HERA, July 30, 2008, and will be made applicable to
such PHAs commencing with the next date of Annual Plan submission.
HUD will make conforming changes to its regulations at 24 CFR part
903 and issue guidance, as may be determined necessary, to further
address qualified PHAs, including the following statutory provisions
that are applicable to qualified PHAs. The statutory provisions
applicable to qualified PHAs are self-implementing.
1. Public Housing Agency (PHA) Plans. New section 5A(b)(3)(A) of
the 1937Act excludes qualified PHAs from the requirement to prepare and
submit an annual PHA plan.
2. Civil Rights Certification. Even though an annual PHA plan is
not required of a qualified PHA, section 5A(b)(3)(B) maintains the
requirement for such agencies to prepare and submit the annual civil
rights certification provided for in section 5A(d)(16) of the 1937 Act.
Accordingly, qualified PHAs must continue to submit their civil rights
certifications to HUD for review.
3. Resident Advisory Board. A new section 5A(d)(4) is added to
affirm that qualified PHAs are still subject to the requirement to
establish one or more resident advisory boards. A requirement is also
added to consult with, and consider the recommendations of, the
resident advisory board at the annual public hearing required under new
section 5A(f)(5), regarding any changes to the goals, objectives, and
policies of the PHA.
4. Annual Public Meeting. As noted in paragraph B.3. of this
notice, new
[[Page 71039]]
section 5A(f)(5) of the 1937 Act requires a qualified PHA to conduct
annually a public hearing to discuss any changes to the goals,
objectives, and policies of the agency; and to invite public comment
regarding such changes. The PHA must publish a notice of the hearing
and relevant information, and make such information available for
inspection at its principal office, at least 45 days before the date
that the hearing is held.
C. Section 9 Emergency Set-Aside
Section 2804 of Title VIII of Division B of HERA strikes section
9(k) of the 1937 Act, which is entitled ``Emergency Reserve and Use of
Amounts.'' The removal of section 9(k) eliminates the requirement
imposed on HUD to set aside, in each fiscal year, not more than two
percent of the total amount of public housing operating funds and
capital funds made available each fiscal year through appropriations
acts for emergencies and other disasters and housing needs resulting
from any settlement of litigation. Section 9(k) was applicable to and
imposed an obligation on HUD.
D. Section 8 Tenant Based Assistance: Housing Choice Voucher Program--
Rent for Tax Credit Units
Subtitle B of Title VIII of HERA (sections 2831 through 2835) makes
a number of changes to coordinate tax incentives for private housing
and federal housing programs, including the Section 8 voucher program.
As one of these changes, the procedure for determining the rent
reasonableness standard applicable to dwelling units receiving low-
income housing tax credits (LIHTC) or assistance under the HOME
Investments Partnership (HOME) program is streamlined by section
2835(a)(2) of HERA, which adds section 8(o)(10)(F) to the 1937 Act.
A rent comparison with unassisted local market units is not
required for such dwelling units if the rent does not exceed the rent
for other LIHTC or HOME assisted units in the project that are not
occupied by families with tenant based assistance. The rent shall be
considered reasonable if it does not exceed the greater of (1) the rent
for other LIHTC or HOME assisted units in the project not occupied by
families with tenant based assistance, or (2) the payment standard
established by a PHA for a unit of the size involved. This provision is
effective and may be used commencing with the date of enactment of
HERA, July 30, 2008. Accordingly, this provision is self-implementing.
HUD will make conforming changes to its regulations at 24 CFR 982.507
to reflect this statutory provision.
E. Section 8 Project Based Voucher Program
Section 2835(a)(1) of HERA makes several changes to the Section 8
project-based voucher (PBV) program under section 8(o)(13) of the 1937
Act (42 U.S.C. 1437f(o)(13)) and 24 CFR part 983 of HUD's regulations,
as follows:
1. Applicability of 25 Percent Cap on Number of PBV Units. Prior to
amendment by section 2835(a)(1)(A) of HERA, PBV assistance was limited
to 25 percent of the units in a building. This cap in section
8(o)(13)(D)(i) of the 1937 Act is amended by replacing the term
``building'' with the term ``project,'' defined to mean a single
building, multiple contiguous buildings, or multiple buildings on
contiguous parcels of land. HUD will make conforming changes to its
regulations at 24 CFR 983.56 to reflect this statutory provision.
Accordingly, this provision is self-implementing. HUD specifically
requests comments on the impact on deconcentration efforts concerning
the change in terms from ``building'' to ``project'' as discussed in
this Section II.E.1 of this notice.
2. Term of Initial Housing Assistance Payment (HAP) Contract. The
maximum term of the initial HAP contract provided in section
8(o)(13)(F) of the 1937 Act is extended from 10 to 15 years by section
2835(a)(1)(B) of HERA. HUD considers this provision to be available for
use commencing with the date of enactment of HERA, July 30, 2008.
Accordingly, this provision is self-implementing. Conforming changes
will be made to HUD's regulations to reflect the longer permissible
term of the initial HAP contract.
3. Extension of initial term. Section 8(o)(13)(G) of the 1937 Act
is amended by HERA section 2835(a)(1)(C) to specify the maximum term
for an extension of the HAP contract as 15 years, at the election of
the PHA and owner. A PHA may agree to enter into an extension at the
time of the initial HAP contract or any time before expiration of the
contract. This provision may be utilized commencing with the date of
enactment of HERA, July 30, 2008. Although this provision is self-
implementing, such contract or contract extension may not exceed 15
years cumulatively. Additionally, a PHA must still determine that the
extension of the contract is appropriate to achieve long-term
affordability of the housing or to expand housing opportunities.
HUD will make conforming changes to its regulations, as well as any
additional changes related to contract extensions that may be necessary
for the orderly administration of the PBV program.
4. Rent calculation. Language is added by section 2835(a)(1)(D) of
HERA to section 8(o)(13)(H) of the 1937 Act to permit a PHA to use the
higher section 8 rent for a tax credit unit if the LIHTC rent is less
than the amount that would be permitted under section 8. The rent
reasonableness of section 8(o)(10)(A) must also continue to be met.
This provision may be utilized commencing with the date of
enactment of HERA, July 30, 2008. Accordingly, this provision is self-
implementing. A conforming change to HUD's regulations will follow.
5. Rent adjustments. Section 2835(a)(1)(E) of HERA amends section
8(o)(13)(I) of the 1937 Act to make permissive a HAP contract provision
that the maximum rent on a unit shall not be less than the initial
rent. Because this provision is permissive, and not mandatory, HUD is
considering parameters for when its use would be appropriate.
Accordingly, this provision is not self-implementing. HUD will finalize
its policy on this provision through rulemaking.
6. Use of PBV in Cooperative Housing and Elevator Buildings. A new
section 8(o)(13)(L) is added by section 2835(a)(1)(F) of HERA to allow
PHAs to enter into HAP contracts with respect to units in cooperative
housing and in high-rise elevator projects. The authority for units in
high-rise elevator projects specifically states it may be exercised
without review and approval by HUD. HUD considers section 8(o)(13)(L)
to be effective commencing with the date of enactment of HERA, July 30,
2008. Accordingly, this provision is self-implementing. HUD will make
any necessary conforming changes to its regulations.
7. Reviews. Section 2835(a)(1)(F) of HERA also provides relief from
certain review requirements by adding section 8(o)(13)(M) to the 1937
Act. New section 8(o)(13)(M)(i) removes the requirement to conduct a
subsidy layering review in the case of a HAP contract for an existing
structure or if such a review has been conducted by the applicable
state or local agency. This provision is self-implementing for existing
housing. The provision, however, is not self-implementing for newly
constructed or rehabilitated housing, HUD will be issuing guidance on
how such reviews must be conducted for newly constructed or
rehabilitated housing.
Section 8(o)(13)(M)(ii) relieves a PHA from undertaking an
environmental review for an existing structure, except to the extent
such a review is otherwise required by law or regulation. Under 24
[[Page 71040]]
CFR part 58, federal environmental reviews are undertaken by a
Responsible Entities (usually units of general local governments), not
PHAs. In addition, any federally required environmental review is
``required by law or regulation,'' so there do not appear to be any
federally required environmental reviews that would be eliminated by
this provision.
F. Collection of Information on Tenants in Tax Credit Projects
HERA section 2835(d) adds a new section 36 to the 1937 Act to
require state agencies administering LIHTC projects to furnish HUD with
information on tenants residing in such projects. This provision is
also applicable to project-based assisted housing programs administered
by HUD's Office of Housing. HUD must also establish standards and
definitions for the information to be collected. HUD will implement
this provision through a notice prepared in accordance with the
Paperwork Reduction Act and to be published in the Federal Register.
Dated: November 18, 2008.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. E8-27871 Filed 11-21-08; 8:45 am]
BILLING CODE 4210-67-P
