Direct Single Family Housing Loans and Grants, 28809-28810 [2014-11610]

Download as PDF 28809 Rules and Regulations Federal Register Vol. 79, No. 97 Tuesday, May 20, 2014 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. DEPARTMENT OF AGRICULTURE Rural Housing Service 7 CFR Part 3550 RIN 0575–AC97 Direct Single Family Housing Loans and Grants Rural Housing Service, USDA. ACTION: Direct final rule. AGENCY: The Rural Housing Service is amending its regulations for the section 502 direct single family housing loans program by reinstating language pertaining to payment assistance method 1 that was inadvertently changed or omitted when the payment subsidy regulation was revised on December 27, 2007. This action will make clear to the public that under this method, the amount of subsidy granted is the difference between the installment due on the promissory note and the greater of the payment amortized at the equivalent interest rate or the payment calculated based on the required floor payment. DATES: This rule is effective August 4, 2014, without further action unless the Agency receives written adverse comments or written notices of intent to submit adverse comments on or before July 21, 2014. If the Agency receives such comments or notices, the Agency will publish a timely document in the Federal Register withdrawing the amendment. Any adverse comments received will be considered under the proposed rule published in this edition of the Federal Register in the proposed rule section. A second public comment period will not be held. Written comments must be received by the Agency or carry a postmark or equivalent no later than July 21, 2014. ADDRESSES: You may submit adverse comments or notice of intent to submit rmajette on DSK2TPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 15:05 May 19, 2014 Jkt 232001 adverse comments to this rule by any of the following methods: • Federal eRulemaking Portal: http:// 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 Avenue 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 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 work hours at the 300 7th Street, SW., address listed above. FOR FURTHER INFORMATION CONTACT: Migdaliz Bernier, Acting Chief, Loan Origination Branch, Single Family Housing Direct Loan Division, Rural Housing Service, Stop 0783, 1400 Independence Avenue SW., Washington, DC 20250–0783, Telephone: 202–690–3833. SUPPLEMENTARY INFORMATION: Statutory Authority Title V, Section 1480 of the Housing Act authorizes the Secretary of Agriculture to promulgate rules and regulations as deemed necessary to carry out the purpose of that title. Executive Order 12866—Classification This rule has been determined to be not significant and was not reviewed by the Office of Management and Budget (OMB) under Executive Order 12866. Executive Order 12988—Civil Justice Reform This rule has been reviewed under Executive Order 12988, Civil Justice Reform. In accordance with that Executive Order: (1) All State and local laws and regulations that are in conflict with this rule will be preempted; (2) No retroactive effect will be given to this rule; and (3) Administrative proceedings in accordance with the regulations of the National Appeals Division of USDA at 7 CFR part 11 must be exhausted before bringing suit in court challenging action taken under this rule unless those PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 regulations specifically allow bringing suit at an earlier time. Regulatory Flexibility Act This 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 of this document that this rule will not have a significant economic impact on a substantial number of small entities. This rule corrects a requirement on Agency applicants and borrowers; Thus there will be no significant information collection or regulatory requirements imposed on small entities under this proposed rule. Paperwork Reduction Act of 1995 In accordance with the Paperwork Reduction Act of 1995, the information collection activities associated with this rule are covered under OMB Number: 0575–0172. This proposed rule contains no new reporting or recordkeeping requirements that would require approval under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1501 et seq., establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. Under section 202 of the UMRA, RHS generally must prepare a written statement, including a costbenefit analysis, for proposed and final rules with ‘‘Federal mandates’’ that may result in expenditures to State, local, or tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year. When such a statement is needed for a rule, section 205 of the UMRA generally requires RHS to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective or least burdensome alternative that achieves the objectives of the rule. 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. E:\FR\FM\20MYR1.SGM 20MYR1 28810 Federal Register / Vol. 79, No. 97 / Tuesday, May 20, 2014 / Rules and Regulations Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1940, subpart G, ‘‘Environmental Program.’’ It is the determination of RHS that this action does not constitute a major Federal action significantly affecting the quality of the human environment, and in accordance with the National Environmental Policy Act of 1969, Public Law 91–190, an Environmental Impact Statement is not required. Programs Affected The program affected by this proposed rule is listed in the Catalog of Federal Domestic Assistance as 10.410, Very Low to Moderate Income Housing Loans. Executive Order 12372— Intergovernmental Review of Federal Programs For the reasons set forth in the final rule published at 7 CFR part 3015, subpart V, and the related notice (48 FR 29115), these programs are not subject to Executive Order 12372, which requires intergovernmental consultation with State and local officials. E-Government Act Compliance The RHS is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. Executive Order 13175, Consultation and Coordination With Indian Tribal Governments This executive order imposes requirements on RHS in the development of regulatory policies that have tribal implications or preempt tribal laws. RHS has determined that the proposed rule does not have a substantial direct effect on one or more Indian tribe(s) or on either the relationship or the distribution of powers and responsibilities between the Federal Government and the Indian tribes. Thus, this proposed rule is not subject to the requirements of Executive Order 13175. rmajette on DSK2TPTVN1PROD with RULES Executive Order 13132—Federalism The policies contained in this rule do not have any substantial direct effect on States, the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Nor does this rule impose substantial direct compliance costs on State and local Governments. VerDate Mar<15>2010 15:05 May 19, 2014 Jkt 232001 Therefore, consultation with the States is not required. ■ Background § 3550.68 The Agency uses payment subsidies to enhance an applicant’s repayment ability for section 502 direct single family housing loans. RHS administers three types of payment subsidies: interest credit, payment assistance method 1 and payment assistance method 2. The eligibility requirements and calculation methods for payment subsidies are located in 7 CFR 3550.68. When the final rule that introduced payment assistance method 2 at 7 CFR 3550.68(c)(1) was published in the Federal Register on December 27, 2007 (72 FR 73252), with an effective date of April 1, 2008, the language on calculating payment assistance method 1 in 7 CFR 3550.68(c)(2) was inadvertently modified. The language was inadvertently changed from ‘‘The amount of payment assistance granted is the difference between the installment due on the promissory note and the greater of the payment amortized at the equivalent interest rate or the payment calculated based on the required floor payment’’ to ‘‘The amount of payment assistance granted is the difference between the annualized note rate installment as prescribed on the promissory note and the lesser of . . . (i) The floor payment . . . or (ii) The annualized note rate installment and the payment at the equivalent interest rate . . .’’ (emphasis added). In addition, the sentence stated ‘‘In leveraging situations, the equivalent interest rate will be used’’ was inadvertently omitted. The inadvertent changes are now being corrected. * List of Subjects in 7 CFR Part 3550 Administrative practice and procedure, Conflict of interests, Environmental impact statements, Equal credit opportunity, Fair housing, Accounting, Housing, Loan programs— Housing and community development, Low and moderate income housing, Manufactured homes, Reporting and recordkeeping requirements, Rural areas, Subsidies. For the reasons stated in the preamble, chapter XXXV, Title 7 of the Code of Federal Regulations, is amended as follows: PART 3550—DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS 1. The authority citation for part 3550 continues to read as follows: ■ Authority: 5 U.S.C. 301; 42 U.S.C. 1480. PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 2. In § 3550.68, revise paragraph (c)(2) introductory text to read as follows: Payment subsidies. * * * * (c) * * * (2) Payment Assistance Method 1. The amount of payment assistance granted is the difference between the installment due on the promissory note and the greater of the payment amortized at the equivalent interest rate or the payment calculated based on the required floor payment. In leveraging situations, the equivalent interest rate will be used. * * * * * Dated: April 2, 2014. Tony Hernandez, Administrator, Rural Housing Service. [FR Doc. 2014–11610 Filed 5–19–14; 8:45 am] BILLING CODE 3410–XV–P FARM CREDIT ADMINISTRATION 12 CFR Part 652 RIN 3052–AC83 Federal Agricultural Mortgage Corporation Funding and Fiscal Affairs; Farmer Mac Liquidity Management; Correction Farm Credit Administration. Final rule; correction. AGENCY: ACTION: The Farm Credit Administration (FCA) published a final rule in the Federal Register on November 1, 2013 to strengthen liquidity risk management at the Federal Agricultural Mortgage Corporation, improve the quality of assets in its liquidity reserves, and bolster its ability to fund its obligations and continue operations during times of economic, financial, or market adversity. This document corrects an inaccurate amendatory instruction in that rule. DATES: Effective Date: This regulation will be effective 180 days after date of publication in the Federal Register, provided either or both Houses of Congress are in session for at least 30 calendar days after publication of this regulation in the Federal Register. We will publish a notice of the effective date in the Federal Register. FOR FURTHER INFORMATION CONTACT: Joseph T. Connor, Associate Director for Policy and Analysis, Office of Secondary Market Oversight, Farm Credit Administration, McLean, VA 22102–5090, (703) 883–4280, TTY (703) 883–4056; or Richard A. Katz, Senior Counsel, Office of General Counsel, Farm Credit SUMMARY: E:\FR\FM\20MYR1.SGM 20MYR1

Agencies

[Federal Register Volume 79, Number 97 (Tuesday, May 20, 2014)]
[Rules and Regulations]
[Pages 28809-28810]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-11610]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 79, No. 97 / Tuesday, May 20, 2014 / Rules 
and Regulations

[[Page 28809]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3550

RIN 0575-AC97


Direct Single Family Housing Loans and Grants

AGENCY: Rural Housing Service, USDA.

ACTION: Direct final rule.

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

SUMMARY: The Rural Housing Service is amending its regulations for the 
section 502 direct single family housing loans program by reinstating 
language pertaining to payment assistance method 1 that was 
inadvertently changed or omitted when the payment subsidy regulation 
was revised on December 27, 2007. This action will make clear to the 
public that under this method, the amount of subsidy granted is the 
difference between the installment due on the promissory note and the 
greater of the payment amortized at the equivalent interest rate or the 
payment calculated based on the required floor payment.

DATES: This rule is effective August 4, 2014, without further action 
unless the Agency receives written adverse comments or written notices 
of intent to submit adverse comments on or before July 21, 2014. If the 
Agency receives such comments or notices, the Agency will publish a 
timely document in the Federal Register withdrawing the amendment.
    Any adverse comments received will be considered under the proposed 
rule published in this edition of the Federal Register in the proposed 
rule section. A second public comment period will not be held. Written 
comments must be received by the Agency or carry a postmark or 
equivalent no later than July 21, 2014.

ADDRESSES: You may submit adverse comments or notice of intent to 
submit adverse comments to this rule by any of the following methods:
     Federal eRulemaking Portal: http://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 Avenue 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 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 work hours at the 300 7th Street, SW., address listed above.

FOR FURTHER INFORMATION CONTACT: Migdaliz Bernier, Acting Chief, Loan 
Origination Branch, Single Family Housing Direct Loan Division, Rural 
Housing Service, Stop 0783, 1400 Independence Avenue SW., Washington, 
DC 20250-0783, Telephone: 202-690-3833.

SUPPLEMENTARY INFORMATION:

Statutory Authority

    Title V, Section 1480 of the Housing Act authorizes the Secretary 
of Agriculture to promulgate rules and regulations as deemed necessary 
to carry out the purpose of that title.

Executive Order 12866--Classification

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

Executive Order 12988--Civil Justice Reform

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. In accordance with that Executive Order: (1) All State 
and local laws and regulations that are in conflict with this rule will 
be preempted; (2) No retroactive effect will be given to this rule; and 
(3) Administrative proceedings in accordance with the regulations of 
the National Appeals Division of USDA at 7 CFR part 11 must be 
exhausted before bringing suit in court challenging action taken under 
this rule unless those regulations specifically allow bringing suit at 
an earlier time.

Regulatory Flexibility Act

    This 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 of this document that this rule 
will not have a significant economic impact on a substantial number of 
small entities. This rule corrects a requirement on Agency applicants 
and borrowers; Thus there will be no significant information collection 
or regulatory requirements imposed on small entities under this 
proposed rule.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection activities associated with this rule are covered 
under OMB Number: 0575-0172. This proposed rule contains no new 
reporting or recordkeeping requirements that would require approval 
under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C. 1501 et seq., establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments and the private sector. Under section 202 of the 
UMRA, RHS generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, or tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires RHS to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, more cost-effective or least burdensome alternative that 
achieves the objectives of the rule.
    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.

[[Page 28810]]

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' It is the determination of RHS 
that this action does not constitute a major Federal action 
significantly affecting the quality of the human environment, and in 
accordance with the National Environmental Policy Act of 1969, Public 
Law 91-190, an Environmental Impact Statement is not required.

Programs Affected

    The program affected by this proposed rule is listed in the Catalog 
of Federal Domestic Assistance as 10.410, Very Low to Moderate Income 
Housing Loans.

Executive Order 12372--Intergovernmental Review of Federal Programs

    For the reasons set forth in the final rule published at 7 CFR part 
3015, subpart V, and the related notice (48 FR 29115), these programs 
are not subject to Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.

E-Government Act Compliance

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

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This executive order imposes requirements on RHS in the development 
of regulatory policies that have tribal implications or preempt tribal 
laws. RHS has determined that the proposed rule does not have a 
substantial direct effect on one or more Indian tribe(s) or on either 
the relationship or the distribution of powers and responsibilities 
between the Federal Government and the Indian tribes. Thus, this 
proposed rule is not subject to the requirements of Executive Order 
13175.

Executive Order 13132--Federalism

    The policies contained in this rule do not have any substantial 
direct effect on States, the relationship between the National 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on State and local 
Governments. Therefore, consultation with the States is not required.

Background

    The Agency uses payment subsidies to enhance an applicant's 
repayment ability for section 502 direct single family housing loans. 
RHS administers three types of payment subsidies: interest credit, 
payment assistance method 1 and payment assistance method 2. The 
eligibility requirements and calculation methods for payment subsidies 
are located in 7 CFR 3550.68.
    When the final rule that introduced payment assistance method 2 at 
7 CFR 3550.68(c)(1) was published in the Federal Register on December 
27, 2007 (72 FR 73252), with an effective date of April 1, 2008, the 
language on calculating payment assistance method 1 in 7 CFR 
3550.68(c)(2) was inadvertently modified. The language was 
inadvertently changed from ``The amount of payment assistance granted 
is the difference between the installment due on the promissory note 
and the greater of the payment amortized at the equivalent interest 
rate or the payment calculated based on the required floor payment'' to 
``The amount of payment assistance granted is the difference between 
the annualized note rate installment as prescribed on the promissory 
note and the lesser of . . . (i) The floor payment . . . or (ii) The 
annualized note rate installment and the payment at the equivalent 
interest rate . . .'' (emphasis added). In addition, the sentence 
stated ``In leveraging situations, the equivalent interest rate will be 
used'' was inadvertently omitted. The inadvertent changes are now being 
corrected.

List of Subjects in 7 CFR Part 3550

    Administrative practice and procedure, Conflict of interests, 
Environmental impact statements, Equal credit opportunity, Fair 
housing, Accounting, Housing, Loan programs--Housing and community 
development, Low and moderate income housing, Manufactured homes, 
Reporting and recordkeeping requirements, Rural areas, Subsidies.

    For the reasons stated in the preamble, chapter XXXV, Title 7 of 
the Code of Federal Regulations, is amended as follows:

PART 3550--DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS

0
1. The authority citation for part 3550 continues to read as follows:

    Authority:  5 U.S.C. 301; 42 U.S.C. 1480.


0
2. In Sec.  3550.68, revise paragraph (c)(2) introductory text to read 
as follows:


Sec.  3550.68  Payment subsidies.

* * * * *
    (c) * * *
    (2) Payment Assistance Method 1. The amount of payment assistance 
granted is the difference between the installment due on the promissory 
note and the greater of the payment amortized at the equivalent 
interest rate or the payment calculated based on the required floor 
payment. In leveraging situations, the equivalent interest rate will be 
used.
* * * * *

    Dated: April 2, 2014.
Tony Hernandez,
Administrator, Rural Housing Service.
[FR Doc. 2014-11610 Filed 5-19-14; 8:45 am]
BILLING CODE 3410-XV-P