Federal Housing Administration (FHA): Updating Regulations Governing HUD Fees and the Financing of the Purchase and Installation of Fire Safety Equipment in FHA-Insured Healthcare Facilities, 48024-48028 [2015-19714]
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48024
Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations
Facility between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
holidays. The AD docket contains this
AD, the regulatory evaluation, any
comments received, and other
information. The street address for the
Docket Operations office (telephone
800–647–5527) is in the ADDRESSES
section.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
Adoption of the Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as
follows:
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive (AD):
■
2015–16–04 Kidde Graviner: Amendment
39–18229. Docket No. FAA–2014–0751;
Directorate Identifier 2013–NM–188–AD.
(a) Effective Date
This AD becomes effective September 15,
2015.
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(b) Affected ADs
None.
(c) Applicability
This AD applies to Kidde Graviner handoperated fire extinguishers having part
numbers 56412–001 (34H), 56411–001 (35H),
and 56412–002 (38H). These fire
extinguishers may be installed on, but not
limited to, aircraft, certificated in any
category, specified in paragraphs (c)(1), (c)(2),
(c)(3), (c)(4), (c)(5), and (c)(6) of this AD.
(1) BAE Systems (Operations) Limited
Model ATP airplanes.
(2) BAE Systems (Operations) Limited
Model 4101 airplanes.
(3) Airbus Defense and Space S.A. (Type
Certificate previously held by EADS CASA;
Construcciones Aeronauticas, S.A.) Model C–
212–CB, C–212–CC, C–212–CD, C–212–CE,
C–212–CF, C–212–DE, and C–212–DF
airplanes.
(4) Fokker Services B.V. Model F.27 Mark
050, 100, 200, 300, 400, 500, 600, and 700
airplanes.
(5) Short Brothers PLC Model SD3–60
SHERPA, SD3–SHERPA, SD3–30, and SD3–
60 airplanes.
(6) SHORT BROTHERS & HARLAND LTD
SC–7 Series 2 and SC–7 Series 3 airplanes.
(d) Subject
Air Transport Association (ATA) of
America Code 26, Fire Protection.
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(e) Reason
This AD was prompted by a report that a
fire extinguisher failed to operate when the
activation lever was pressed. We are issuing
this AD to prevent fire extinguishers from
failing to operate in the event of a fire, which
could jeopardize occupants’ safety and
continuation of safe flight and landing.
(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
(g) Modification
Within 6 months after the effective date of
this AD, modify all Kidde Graviner handoperated fire extinguishers having part
numbers 56412–001 (34H), 56411–001 (35H),
and 56412–002 (38H), in accordance with the
Accomplishment Instructions of Kidde
Graviner Alert Service Bulletin A26–081,
Revision 1, dated January 31, 2012.
(h) Credit for Previous Actions
This paragraph provides credit for actions
required by paragraph (g) of this AD, if those
actions were performed before the effective
date of this AD using Kidde Graviner Alert
Service Bulletin A26–081, dated August 23,
2011, which is not incorporated by reference
in this AD.
(i) Parts Installation Prohibition
As of the effective date of this AD, no
person may install any Kidde Graviner handoperated fire extinguisher having part
number 56412–001 (34H), 56411–001 (35H),
or 56412–002 (38H) on any airplane unless
the fire extinguisher has been modified as
specified in paragraph (g) or (h) of this AD.
(j) Other FAA AD Provision
The following provision for Alternative
Methods of Compliances (AMOCs) also
applies to this AD: The manager of the office
having certificate responsibility for the
affected product has the authority to approve
AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In
accordance with 14 CFR 39.19, send your
request to your principal inspector or local
Flight Standards District Office, as
appropriate. The Manager, Boston Aircraft
Certification Office (ACO), FAA, will
coordinate requests for approval of AMOCs
with the manager of the appropriate office for
the affected product. Send information to
ATTN: Ian Lucas, Aerospace Engineer,
Boston ACO, ANE–150, FAA, Engine and
Propeller Directorate, 12 New England
Executive Park, Burlington, MA 01803;
phone: 781–238–7757; fax: 781–238–7170;
email: ian.lucas@faa.gov. Before using any
approved AMOC, notify your appropriate
principal inspector, or lacking a principal
inspector, the manager of the local flight
standards district office/certificate holding
district office. The AMOC approval letter
must specifically reference this AD.
(k) Related Information
(1) Refer to Mandatory Continuing
Airworthiness Information (MCAI) European
Aviation Safety Agency (EASA)
Airworthiness Directive 2012–0037, dated
March 9, 2012, for related information. This
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MCAI may be found in the AD docket on the
Internet at https://www.regulations.gov/
#!documentDetail;D=FAA–2014–0751–0004.
(2) Service information identified in this
AD that is not incorporated by reference is
available at the addresses specified in
paragraphs (l)(3) and (l)(4) of this AD.
(l) Material Incorporated by Reference
(1) The Director of the Federal Register
approved the incorporation by reference
(IBR) of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
(2) You must use this service information
as applicable to do the actions required by
this AD, unless this AD specifies otherwise.
(i) Kidde Graviner Alert Service Bulletin
A26–081, Revision 1, dated January 31, 2012.
Page 2 of this document is dated August 23,
2011.
(ii) Reserved.
(3) For service information identified in
this AD, contact Kidde Graviner Limited,
Mathisen Way, Colnbrook, Slough, Berkshire,
SL3 0HB, United Kingdom; telephone +44 (0)
1753 583245; fax +44 (0) 1753 685040.
(4) You may view this service information
at the FAA, Transport Airplane Directorate,
1601 Lind Avenue SW., Renton, WA. For
information on the availability of this
material at the FAA, call 425–227–1221.
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA, call
202–741–6030, or go to: https://
www.archives.gov/federal-register/cfr/ibrlocations.html.
Issued in Renton, Washington, on July 29,
2015.
Michael Kaszycki,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 2015–19474 Filed 8–10–15; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 200 and 232
[Docket No. FR–5632–F–02]
RIN 2502–AJ27
Federal Housing Administration (FHA):
Updating Regulations Governing HUD
Fees and the Financing of the
Purchase and Installation of Fire
Safety Equipment in FHA-Insured
Healthcare Facilities
Office of the Assistant
Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Final rule.
AGENCY:
This rule updates HUD fees
for multifamily housing and residential
healthcare facilities, and updates and
SUMMARY:
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Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations
streamlines the Section 232 program
regulations that govern the financing of
the purchase and installation of fire
safety equipment in insured healthcare
facilities, which have not been
substantially updated in over 20 years.
This final rule gives HUD flexibility in
raising or lowering fees, and for
residential healthcare facilities,
streamlines the loan application process
by eliminating unnecessary
requirements, conforming needed
requirements to current industry
practices, and allowing for HUD to
centralize the loan application process.
DATES: Effective Date: September 10,
2015.
FOR FURTHER INFORMATION CONTACT: For
information about: HUD’s Multifamily
Housing program, contact Dan Sullivan,
Deputy Director, Office of Multifamily
Housing Development, Office of
Housing, Department of Housing and
Urban Development, 451 7th Street SW.,
Room 6148, Washington, DC 20410–
8000; telephone number 202–708–1142;
HUD’s Healthcare program, contact
Vance Morris, Office of Healthcare
Programs, Office of Housing,
Department of Housing and Urban
Development, 451 7th Street SW., Room
6134, Washington, DC 20410–8000;
telephone number 202–402–2419. The
telephone numbers listed above are not
toll-free numbers. Persons with hearing
or speech impairments may access these
numbers through TTY by calling the
toll-free Federal Relay Service at 800–
877–8339 (this is a toll-free number).
SUPPLEMENTARY INFORMATION:
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I. Background—the January 14, 2015,
Proposed Rule
On January 14, 2015, HUD published
a proposed rule in the Federal Register,
at 80 FR 1855, to update HUD fees for
multifamily housing and residential
healthcare facilities, and update and
streamline the Section 232 program
regulations that govern the financing of
the purchase and installation of fire
safety equipment in insured healthcare
facilities. See the January 14, 2015,
proposed rule for a more detailed listing
of the proposed changes.
Update HUD Fees
HUD’s January 14, 2015, rule
proposed to amend HUD’s general fee
regulations in 24 CFR 200.40, which
contain the fees that apply to most
mortgages insured by FHA, including
Section 232 mortgages. To bring
consistency and conformity to HUD’s
regulations, the amount of the
application fee for Section 232 programs
would be moved to a new § 200.40(d)(2),
and only cross-referenced in the Section
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232 program regulations. The current
§ 200.40(d), setting the general
application fee, would be redesignated
as § 200.40(d)(1). In addition,
paragraphs (d)(1) and (d)(2) would allow
the Secretary flexibility in setting the
respective fees, up to a maximum fee of
$5.00 per thousand dollars of the
requested mortgage amount to be
insured.
The rule proposed to eliminate the
commitment fee in HUD’s regulations at
24 CFR part 232, subpart C, and
therefore also proposed to eliminate the
requirement in § 232.515 that the
commitment fee be refunded. The
provisions allowing for refund of the
application fee remained unchanged. In
addition, instead of being set out in the
Section 232 program regulations, the
maximum fees and charges and the
inspection fee in §§ 232.520 and
232.522, respectively, would crossreference the §§ 200.40 and 200.41
regulations.
Update and Streamline 24 CFR 232,
Subpart C, Regulations
HUD’s January 14, 2015, rule
proposed to update and streamline the
requirements of HUD’s regulations at 24
CFR part 232, subpart C, and primarily
focused on removing or revising several
fees required in these regulations that
HUD has determined are no longer
needed or, alternatively, are not set at
sufficient levels.
Health and Human Services (HHS)
requirements and involvement. The rule
proposed to streamline HUD’s
regulations by eliminating duplicative
and unnecessary involvement by HHS.
For example, the rule proposed to revise
the definition of ‘‘equipment cost’’ in
§ 232.500(e) to eliminate the
involvement of the Secretary of HHS in
estimating the reasonable cost of the fire
safety equipment installation. HUD has
determined that the estimate by the
Secretary of HHS is an unnecessary
step.
The rule proposed to remove the
requirement at § 232.505(a) that an
application for insurance of a fire safety
loan under part 232 be considered in
connection with a proposal approved by
the Secretary of HHS. Section 232.615
would still require, however, that the
facility requesting the loan meet HHS
fire safety requirements.
In § 232.510(b), the rule proposed to
replace the responsibility of the
Secretary of HHS to determine the
satisfactory completion of installation of
fire safety equipment with that of the
Commissioner.
In § 232.570, the rule proposed to
eliminate the requirement that the
Secretary of HHS submit a statement
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that the fire safety equipment has been
satisfactorily installed. The rule
proposed to replace this provision with
a requirement of a certification that the
improvements were installed as
required by § 232.500(c). As stated
earlier in regard to other proposed
changes, § 232.615 would still require
the facility to meet HHS fire safety
requirements in order for HUD to insure
the loan.
The rule proposed to eliminate the
requirement in § 232.620 that an
application for insurance under 24 CFR
part 232, subpart C, be accompanied by
a statement from HHS or the HHS
Secretary’s designee, such as a State,
that the facility will meet pertinent
health and safety requirements of
HHS—other than the fire safety
equipment requirements—once the fire
safety equipment has been installed.
Instead of this requirement, the rule
proposed to substitute a reference to
certification of compliance with HHS,
Federal, State, and local requirements
for fire safety equipment to be provided
prior to endorsement.
Definitions. The rule proposed to
update the outdated standard in
§ 232.500(c)(1) which required ‘‘fire
safety equipment’’ to meet the standards
for applicable occupancy of any edition
of the Life Safety Code 1 (LSC) of the
National Fire Protection Association
after 1966 (§ 232.500(c)(1)(i)); or a
standard mandated by a State, under the
provisions of section 1616(e) of the
Social Security Act (§ 232.500(c)(1)(ii));
or any appropriate requirement
approved by the Secretary of HHS for
providers of services under title XVIII or
title XIX of the Social Security Act
(§ 232.500(c)(1)(iii)). For
§ 232.500(c)(1)(i), the rule proposed
instead to require that ‘‘fire safety
equipment’’ meet the applicable
provisions of the edition of the LSC
adopted by the Secretary of HHS. For
§ 232.500(c)(1)(ii), HUD proposed no
change. HUD proposed to remove
§ 232.500(c)(1)(iii), because approval by
the Secretary of HHS is achieved
through the change to § 232.500(c)(1)(i).
The rule also proposed to revise the
definition of ‘‘eligible borrower’’ in
§ 232.615 to eliminate all references to
the requirement that the facility meet
1 The Life Safety Code addresses those
construction, protection, and occupancy features
necessary to minimize danger to life from the effects
of fire, including smoke, heat, and toxic gases
created during a fire. The code also addresses
protective features and systems, building services,
operating features, maintenance activities, and
other provisions in recognition of the fact that
achieving an acceptable degree of life safety
depends on additional safeguards to provide
adequate egress time or protection for people
exposed to fire.
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Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations
HHS health and safety requirements,
although the facility would still have to
meet HHS fire safety requirements.
Applications. HUD proposed to
remove the requirement in § 232.505(b)
to submit applications to HUD’s local
offices.
Method of loan payment and
amortization period. Instead of being set
out in the 232 program regulations, the
method of loan payment and
amortization period in § 232.540 would
cross-reference § 200.82.
Maximum loan amount. In § 232.565,
the rule proposed to revise the
maximum loan amount to allow for the
financing of fees, similar to the
regulations governing fees in other
Section 232 loan insurance programs.
Contract requirements. The rule
proposed to remove the limitation in
§ 232.605 that contracts be either lump
sum or cost plus contracts and instead
proposed to allow such contracts as may
be specified by the FHA Commissioner.
Certification of cost requirements. In
§ 232.610, the rule proposed to require
that a certification of actual cost be
made for all forms of contract, instead
of only when a cost plus form of
contract is used. Further, it proposed to
eliminate the requirement that the
amount of the loan be adjusted to reflect
the actual cost to the borrower of the
improvements.
II. This Final Rule
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This final rule follows publication of
the January 14, 2015, proposed rule and
adopts that proposed rule without
change. The public comment period for
the proposed rule closed on March 16,
2015, and HUD received one public
comment.
Comment: This rulemaking is the
appropriate solution to an outdated and
burdensome loan application process.
Commenter is supportive of HUD’s
proposed rule to update outdated and
burdensome requirements. Commenter
states that updating the rules that
govern the financing of the purchase
and installation of fire safety equipment
in insured healthcare facilities will save
lives and streamlining the loan
application process will reduce
administrative burdens and costs.
HUD Response: HUD appreciates the
commenter’s support for this rule and
adopts the proposed rule without
change.
III. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
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regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. Executive Order 13563
(Improving Regulations and Regulatory
Review) directs executive agencies to
analyze regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public.
At the proposed rule stage, this
document was determined not to be a
‘‘significant regulatory action’’ as
defined in section 3(f) of the Executive
order. Because this final rule adopts the
January 14, 2015, proposed rule,
without change, the final rule is also not
a ‘‘significant regulatory action’’ as
defined in section 3(f) of Executive
Order 12866.
Paperwork Reduction Act
The information collection
requirements contained in this proposed
rule have been submitted to the OMB
under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3520), and
approved under OMB control numbers
2502–0605 and 2502–0541. In
accordance with the Paperwork
Reduction Act, an agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless the collection
displays a currently valid OMB control
number.
Environmental Review
A Finding of No Significant Impact
(FONSI) with respect to the
environment for this rule was made at
the proposed rule stage, in accordance
with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of
the National Environmental Policy Act
of 1969 (42 U.S.C. 4332(2)(C)). The
FONSI remains applicable, and is
available for public inspection between
8 a.m. and 5 p.m., weekdays, in the
Regulations Division, Office of General
Counsel, Department of Housing and
Urban Development, 451 7th Street SW.,
Room 10276, Washington, DC 20410–
5000. Due to security measures at the
HUD Headquarters building, please
schedule an appointment to review the
FONSI by calling the Regulations
Division at 202–402–3055 (this is not a
toll-free number). Individuals with
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speech or hearing impairments may
access this number via TTY by calling
the Federal Relay Service at 800–877–
8339 (this is a toll-free number).
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 rule would not
impose any Federal mandates on any
State, local, or tribal governments, or on
the private sector, within the meaning of
the UMRA.
Regulatory Flexibility Act
The Regulatory Flexibility Act (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 final rule imposes no
requirements on small businesses. In
fact, streamlining the Fire Safety
Equipment Loan Program requirements
should ease an existing burden on those
small businesses seeking to
accommodate acute care patients and
those needing to upgrade or install fire
safety equipment to meet HHS
requirements.
Accordingly, the undersigned certifies
that this final rule will not have a
significant economic impact on a
substantial number of small entities.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either (i)
imposes substantial direct compliance
costs on State and local governments
and is not required by statute or (ii)
preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the
Executive order. 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.
Catalogue of Federal Domestic
Assistance
The Catalogue of Federal Domestic
Assistance Number for the Mortgage
Insurance Nursing Homes, Intermediate
Care Facilities, Board and Care Homes
and Assisted Living Facilities is 14.129;
for Mortgage Insurance-Rental Housing
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is 14.134; for Mortgage Insurance for the
Purchase or Refinancing of Existing
Multifamily Housing Projects is 14.155.
List of Subjects
24 CFR Part 200
Administrative practice and
procedure, Claims, Equal employment
opportunity, Fair housing, Home
improvement, Housing standards, Lead
poisoning, Loan programs—housing and
community development, Mortgage
insurance, Organization and functions
(Government agencies), Penalties,
Reporting and recordkeeping.
24 CFR Part 232
Fire prevention, Health facilities,
Loan programs—health, Loan
programs—housing and community
development, Mortgage insurance,
Nursing homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons
discussed in this preamble, HUD
amends 24 CFR parts 200 and 232 as
follows:
2. Amend § 200.40 to:
■ a. Redesignate paragraph (d) as
paragraph (d)(1);
■ b. Revise the paragraph heading and
first sentence of newly redesignated
(d)(1); and
■ c. Add paragraph (d)(2).
The revisions and addition read as
follows:
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Definitions.
*
*
*
*
(c) * * *
(1) * * *
(i) The edition of The Life Safety Code
of the National Fire Protection
Association as accepted by the
Department of Health and Human
Services in 42 CFR 483.70; or
(ii) A standard mandated by a State
under the provisions of section 1616(e)
of the Social Security Act.
*
*
*
*
*
(e) Equipment cost means the
reasonable cost of fire safety equipment
fully installed as determined by the
Commissioner.
*
*
*
*
*
■ 5. Revise § 232.505 to read as follows:
■
§ 232.505
HUD fees.
*
*
*
*
(d)(1) Application fee—firm
commitment: General. An application
for firm commitment shall be
accompanied by an applicationcommitment fee in an amount
determined by the Secretary, which
when added to any prior fees received
in connection with the same
application, shall not exceed $5.00 per
thousand dollars of the requested
mortgage amount to be insured.
* * *
(2) Application fee—Section 232
Programs. For purposes of mortgages
insured under HUD’s regulations in 24
CFR part 232, subpart C, an application
for firm commitment shall be
accompanied by an application fee in an
amount determined by the Secretary,
which shall not exceed $5.00 per
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Subpart C—Eligibility Requirements—
Supplemental Loans To Finance
Purchase and Installation of Fire
Safety Equipment
*
Authority: 12 U.S.C. 1702–1715z–21; 42
U.S.C. 3535(d).
15:24 Aug 10, 2015
Authority: 12 U.S.C. 1715b, 1715w; 42
U.S.C. 3535(d).
§ 232.500
1. The authority citation for 24 CFR
part 200 continues to read as follows:
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3. The authority citation for 24 CFR
part 232 continues to read as follows:
■
4. In § 232.500, revise paragraphs
(c)(1)(i) and (ii) and (e) to read as
follows:
■
*
PART 232—MORTGAGE INSURANCE
FOR NURSING HOMES,
INTERMEDIATE CARE FACILITIES,
BOARD AND CARE HOMES, AND
ASSISTED LIVING FACILITIES
■
PART 200—INTRODUCTION TO FHA
PROGRAMS
§ 200.40
thousand dollars of the requested
mortgage amount to be insured.
*
*
*
*
*
Application and application fee.
(a) Filing of application. An
application for insurance of a fire safety
loan for a nursing home, intermediate
care facility, assisted living facility or
board and care home shall be submitted
on an approved HUD form by an
approved lender and by the owners of
the project to the HUD office.
(b) Application fee. See 24 CFR
200.40(d)(2).
■ 6. Amend § 232.510 to:
■ a. Revise paragraphs (b), (c), and (d);
■ b. Remove paragraph (e); and
■ c. Redesignate paragraph (f) as
paragraph (e) and revise newly
designated paragraph (e) to read as
follows:
§ 232.510
fee.
Commitment and commitment
*
*
*
*
*
(b) Type of commitment. The
commitment will provide for the
insurance of the loan after satisfactory
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48027
completion of installation of the fire
safety equipment, as determined by the
Commissioner.
(c) Term of commitment. A
commitment shall have a term as the
Commissioner deems necessary for
satisfactory completion of installation.
(d) Commitment fee. See 24 CFR
200.40(d)(2).
(e) Increase in commitment prior to
endorsement. An application, filed prior
to endorsement, for an increase in the
amount of an outstanding firm
commitment shall be accompanied by
an additional application fee. The
additional application fee shall be in an
amount determined by the Secretary as
equal to the amount determined under
24 CFR 200.40(d)(2), which shall not
exceed $5.00 per thousand dollars of the
amount of the requested increase. If an
inspection fee was required in the
original commitment, an additional
inspection fee shall be paid in an
amount computed at the same dollar
rate per thousand dollars of the amount
of increase in commitment as was used
for the inspection fee required in the
original commitment. The additional
inspection fee shall be paid prior to the
date installation of fire safety equipment
is begun, or, if installation has begun, it
shall be paid with the application for
increase.
■ 7. Revise § 232.515 to read as follows:
§ 232.515
Refund of fees.
If the amount of the commitment
issued or an increase in the loan amount
prior to endorsement is less than the
amount applied for, the Commissioner
shall refund the excess amount of the
application fee submitted by the
applicant. If an application is rejected
before it is assigned for processing, or in
such other instances as the
Commissioner may determine, the
entire application fee or any portion
thereof may be returned to the
applicant.
■ 8. Revise § 232.520 to read as follows:
§ 232.520
lender.
Maximum fees and charges by
See 24 CFR 200.40 titled ‘‘HUD fees’’
and 200.41 titled ‘‘Maximum mortgage
fees and charges’’ for maximum fees and
charges applicable to mortgages insured
under 24 CFR part 232.
■ 9. Revise § 232.522 to read as follows:
§ 232.522
Inspection fee.
See 24 CFR 200.40 titled ‘‘HUD fees’’
and 200.41 titled ‘‘Maximum mortgage
fees and charges’’ for maximum fees and
charges applicable to mortgages insured
under 24 CFR part 232.
■ 10. Revise § 232.540 to read as
follows:
E:\FR\FM\11AUR1.SGM
11AUR1
48028
Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations
§ 232.540 Method of loan payment and
amortization period.
See 24 CFR 200.82 titled ‘‘Maturity’’
for loan payment and amortization
period requirements applicable to
mortgages insured under 24 CFR part
232.
■ 11. In § 232.565, revise the first
sentence to read as follows:
§ 232.565
Maximum loan amount.
The principal amount of the loan
shall not exceed the lower of the
Commissioner’s estimate of the cost of
the fire safety equipment, including the
cost of installation and eligible fees, or
the amount supported by ninety percent
(90%) of the residual income, which is
ninety percent (90%) of the amount of
net income remaining after payment of
all existing debt service requirements, as
determined by the Commissioner. * * *
■ 12. In § 232.570, revise paragraph (c)
to read as follows:
§ 232.570 Endorsement of credit
instrument.
*
*
*
*
*
(c) Certification that fire safety
equipment was installed as required by
§ 232.500(c).
■ 13. Revise § 232.605 to read as
follows:
§ 232.605
(a) Certificate and adjustment. No
loan shall be insured unless a
certification of actual cost is made by
the contractor.
*
*
*
*
*
■ 15. In § 232.615, revise paragraph (a)
to read as follows:
rmajette on DSK2TPTVN1PROD with RULES
[FR Doc. 2015–19714 Filed 8–10–15; 8:45 am]
DEPARTMENT OF EDUCATION
34 CFR Chapter III
[Docket ID ED–2015–OSERS–0048; CFDA
Number: 84.263B.]
Office of Special Education and
Rehabilitative Services, Department of
Education.
ACTION: Final priority.
The Assistant Secretary for
Special Education and Rehabilitative
Services announces a priority under the
Experimental and Innovative Training
program. The Assistant Secretary may
use this priority for competitions in
fiscal year (FY) 2015 and later years. We
take this action to focus Federal
financial assistance on an identified
national need. We intend the priority to
support a Technical Assistance Center
for Vocational Rehabilitation Agency
Program Evaluation and Quality
Assurance (PEQA).
DATES: This priority is effective
September 10, 2015.
SUMMARY:
(a) In order to be eligible as a
borrower under this subpart the
applicant shall be a profit or non-profit
entity, which owns a nursing home or
intermediate care facility for which the
Secretary of Health and Human Services
has determined that the installation of
fire safety equipment in such facility is
necessary to meet the applicable
requirements of the Secretary of Health
and Human Services for providers of
services under Title XVIII and Title XIX
of the Social Security Act and that upon
completion of the installation of such
Jkt 235001
Dated: August 6, 2015.
Edward L. Golding,
Principal Deputy, Assistant Secretary for
Housing.
Nani A. Coloretti,
Deputy Secretary.
AGENCY:
Eligible borrowers.
15:24 Aug 10, 2015
Prior to Endorsement, applicant must
provide certification that the installed
improvements will meet HHS, as well as
all other Federal, state and local
requirements for fire safety equipment,
if applicable.
Final Priority—Technical Assistance
Center for Vocational Rehabilitation
Agency Program Evaluation and
Quality Assurance
§ 232.610 Certification of cost
requirements.
VerDate Sep<11>2014
§ 232.620 Determination of compliance
with fire safety equipment requirements.
BILLING CODE 4210–67–P
Contract requirements.
The contract between the mortgagor
and the general contractor may be in the
form of a lump sum contract, a cost plus
contract, or different or alternative
forms of contract specified by the
Commissioner.
■ 14. In § 232.610, revise paragraph (a)
to read as follows:
§ 232.615
equipment the nursing home or
intermediate care facility will meet the
applicable fire safety requirements of
HHS. Until the termination of all
obligations of the Commissioner under
an insurance contract under this subpart
and during such further period of time
as the Commissioner shall be the owner,
holder, or reinsurer of the loan, the
borrower shall be regulated or restricted
by the Commissioner as to methods of
operation including requirements for
maintenance of fire safety equipment.
*
*
*
*
*
■ 16. Revise § 232.620 to read as
follows:
PO 00000
Frm 00028
Fmt 4700
Sfmt 4700
Don
Bunuan, U.S. Department of Education,
400 Maryland Avenue SW., Room 5046,
Potomac Center Plaza (PCP),
Washington, DC 20202–2800.
Telephone: (202) 245–6616 or by email:
don.bunuan@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay
Service (FRS), toll free, at 1–800–877–
8339.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Purpose of Program: This program is
designed to (a) develop new types of
training programs for rehabilitation
personnel and to demonstrate the
effectiveness of these new types of
training programs for rehabilitation
personnel in providing rehabilitation
services to individuals with disabilities;
and (b) develop new and improved
methods of training rehabilitation
personnel, so that there may be a more
effective delivery of rehabilitation
services by State and other
rehabilitation agencies.
Program Authority: 29 U.S.C.
772(a)(1).
Applicable Program Regulations: 34
CFR part 385 and 387.
We published a notice of proposed
priority for this competition in the
Federal Register on May 28, 2015 (80
FR 30399). That notice contained
background information and our reasons
for proposing the particular priority.
There are differences between the
proposed priority and the final priority,
and we explain those differences in the
Analysis of Comments and Changes
section of this notice.
Public Comment: In response to our
invitation in the notice of proposed
priority, four parties submitted
comments.
Generally, we do not address
technical and other minor changes. In
addition, we do not address comments
that raise concerns not directly related
to the proposed priority.
Analysis of the Comments and
Changes: An analysis of the comments
and of any changes in the priority since
publication of the notice of proposed
priority follows.
Comment: One commenter observed
that the priority should provide for
continuing personnel development for
those who have completed the Basic
Certification Program and approach the
intermediate level of competency. The
commenter recommended allowing
those who have completed the Basic
Certification Training to qualify as
intermediate-level program evaluators
in order to access the Special Topical
Trainings. In addition, two commenters
E:\FR\FM\11AUR1.SGM
11AUR1
Agencies
[Federal Register Volume 80, Number 154 (Tuesday, August 11, 2015)]
[Rules and Regulations]
[Pages 48024-48028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19714]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 200 and 232
[Docket No. FR-5632-F-02]
RIN 2502-AJ27
Federal Housing Administration (FHA): Updating Regulations
Governing HUD Fees and the Financing of the Purchase and Installation
of Fire Safety Equipment in FHA-Insured Healthcare Facilities
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule updates HUD fees for multifamily housing and
residential healthcare facilities, and updates and
[[Page 48025]]
streamlines the Section 232 program regulations that govern the
financing of the purchase and installation of fire safety equipment in
insured healthcare facilities, which have not been substantially
updated in over 20 years. This final rule gives HUD flexibility in
raising or lowering fees, and for residential healthcare facilities,
streamlines the loan application process by eliminating unnecessary
requirements, conforming needed requirements to current industry
practices, and allowing for HUD to centralize the loan application
process.
DATES: Effective Date: September 10, 2015.
FOR FURTHER INFORMATION CONTACT: For information about: HUD's
Multifamily Housing program, contact Dan Sullivan, Deputy Director,
Office of Multifamily Housing Development, Office of Housing,
Department of Housing and Urban Development, 451 7th Street SW., Room
6148, Washington, DC 20410-8000; telephone number 202-708-1142; HUD's
Healthcare program, contact Vance Morris, Office of Healthcare
Programs, Office of Housing, Department of Housing and Urban
Development, 451 7th Street SW., Room 6134, Washington, DC 20410-8000;
telephone number 202-402-2419. The telephone numbers listed above are
not toll-free numbers. Persons with hearing or speech impairments may
access these numbers through TTY by calling the toll-free Federal Relay
Service at 800-877-8339 (this is a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background--the January 14, 2015, Proposed Rule
On January 14, 2015, HUD published a proposed rule in the Federal
Register, at 80 FR 1855, to update HUD fees for multifamily housing and
residential healthcare facilities, and update and streamline the
Section 232 program regulations that govern the financing of the
purchase and installation of fire safety equipment in insured
healthcare facilities. See the January 14, 2015, proposed rule for a
more detailed listing of the proposed changes.
Update HUD Fees
HUD's January 14, 2015, rule proposed to amend HUD's general fee
regulations in 24 CFR 200.40, which contain the fees that apply to most
mortgages insured by FHA, including Section 232 mortgages. To bring
consistency and conformity to HUD's regulations, the amount of the
application fee for Section 232 programs would be moved to a new Sec.
200.40(d)(2), and only cross-referenced in the Section 232 program
regulations. The current Sec. 200.40(d), setting the general
application fee, would be redesignated as Sec. 200.40(d)(1). In
addition, paragraphs (d)(1) and (d)(2) would allow the Secretary
flexibility in setting the respective fees, up to a maximum fee of
$5.00 per thousand dollars of the requested mortgage amount to be
insured.
The rule proposed to eliminate the commitment fee in HUD's
regulations at 24 CFR part 232, subpart C, and therefore also proposed
to eliminate the requirement in Sec. 232.515 that the commitment fee
be refunded. The provisions allowing for refund of the application fee
remained unchanged. In addition, instead of being set out in the
Section 232 program regulations, the maximum fees and charges and the
inspection fee in Sec. Sec. 232.520 and 232.522, respectively, would
cross-reference the Sec. Sec. 200.40 and 200.41 regulations.
Update and Streamline 24 CFR 232, Subpart C, Regulations
HUD's January 14, 2015, rule proposed to update and streamline the
requirements of HUD's regulations at 24 CFR part 232, subpart C, and
primarily focused on removing or revising several fees required in
these regulations that HUD has determined are no longer needed or,
alternatively, are not set at sufficient levels.
Health and Human Services (HHS) requirements and involvement. The
rule proposed to streamline HUD's regulations by eliminating
duplicative and unnecessary involvement by HHS. For example, the rule
proposed to revise the definition of ``equipment cost'' in Sec.
232.500(e) to eliminate the involvement of the Secretary of HHS in
estimating the reasonable cost of the fire safety equipment
installation. HUD has determined that the estimate by the Secretary of
HHS is an unnecessary step.
The rule proposed to remove the requirement at Sec. 232.505(a)
that an application for insurance of a fire safety loan under part 232
be considered in connection with a proposal approved by the Secretary
of HHS. Section 232.615 would still require, however, that the facility
requesting the loan meet HHS fire safety requirements.
In Sec. 232.510(b), the rule proposed to replace the
responsibility of the Secretary of HHS to determine the satisfactory
completion of installation of fire safety equipment with that of the
Commissioner.
In Sec. 232.570, the rule proposed to eliminate the requirement
that the Secretary of HHS submit a statement that the fire safety
equipment has been satisfactorily installed. The rule proposed to
replace this provision with a requirement of a certification that the
improvements were installed as required by Sec. 232.500(c). As stated
earlier in regard to other proposed changes, Sec. 232.615 would still
require the facility to meet HHS fire safety requirements in order for
HUD to insure the loan.
The rule proposed to eliminate the requirement in Sec. 232.620
that an application for insurance under 24 CFR part 232, subpart C, be
accompanied by a statement from HHS or the HHS Secretary's designee,
such as a State, that the facility will meet pertinent health and
safety requirements of HHS--other than the fire safety equipment
requirements--once the fire safety equipment has been installed.
Instead of this requirement, the rule proposed to substitute a
reference to certification of compliance with HHS, Federal, State, and
local requirements for fire safety equipment to be provided prior to
endorsement.
Definitions. The rule proposed to update the outdated standard in
Sec. 232.500(c)(1) which required ``fire safety equipment'' to meet
the standards for applicable occupancy of any edition of the Life
Safety Code \1\ (LSC) of the National Fire Protection Association after
1966 (Sec. 232.500(c)(1)(i)); or a standard mandated by a State, under
the provisions of section 1616(e) of the Social Security Act (Sec.
232.500(c)(1)(ii)); or any appropriate requirement approved by the
Secretary of HHS for providers of services under title XVIII or title
XIX of the Social Security Act (Sec. 232.500(c)(1)(iii)). For Sec.
232.500(c)(1)(i), the rule proposed instead to require that ``fire
safety equipment'' meet the applicable provisions of the edition of the
LSC adopted by the Secretary of HHS. For Sec. 232.500(c)(1)(ii), HUD
proposed no change. HUD proposed to remove Sec. 232.500(c)(1)(iii),
because approval by the Secretary of HHS is achieved through the change
to Sec. 232.500(c)(1)(i).
---------------------------------------------------------------------------
\1\ The Life Safety Code addresses those construction,
protection, and occupancy features necessary to minimize danger to
life from the effects of fire, including smoke, heat, and toxic
gases created during a fire. The code also addresses protective
features and systems, building services, operating features,
maintenance activities, and other provisions in recognition of the
fact that achieving an acceptable degree of life safety depends on
additional safeguards to provide adequate egress time or protection
for people exposed to fire.
---------------------------------------------------------------------------
The rule also proposed to revise the definition of ``eligible
borrower'' in Sec. 232.615 to eliminate all references to the
requirement that the facility meet
[[Page 48026]]
HHS health and safety requirements, although the facility would still
have to meet HHS fire safety requirements.
Applications. HUD proposed to remove the requirement in Sec.
232.505(b) to submit applications to HUD's local offices.
Method of loan payment and amortization period. Instead of being
set out in the 232 program regulations, the method of loan payment and
amortization period in Sec. 232.540 would cross-reference Sec.
200.82.
Maximum loan amount. In Sec. 232.565, the rule proposed to revise
the maximum loan amount to allow for the financing of fees, similar to
the regulations governing fees in other Section 232 loan insurance
programs.
Contract requirements. The rule proposed to remove the limitation
in Sec. 232.605 that contracts be either lump sum or cost plus
contracts and instead proposed to allow such contracts as may be
specified by the FHA Commissioner.
Certification of cost requirements. In Sec. 232.610, the rule
proposed to require that a certification of actual cost be made for all
forms of contract, instead of only when a cost plus form of contract is
used. Further, it proposed to eliminate the requirement that the amount
of the loan be adjusted to reflect the actual cost to the borrower of
the improvements.
II. This Final Rule
This final rule follows publication of the January 14, 2015,
proposed rule and adopts that proposed rule without change. The public
comment period for the proposed rule closed on March 16, 2015, and HUD
received one public comment.
Comment: This rulemaking is the appropriate solution to an outdated
and burdensome loan application process. Commenter is supportive of
HUD's proposed rule to update outdated and burdensome requirements.
Commenter states that updating the rules that govern the financing of
the purchase and installation of fire safety equipment in insured
healthcare facilities will save lives and streamlining the loan
application process will reduce administrative burdens and costs.
HUD Response: HUD appreciates the commenter's support for this rule
and adopts the proposed rule without change.
III. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public.
At the proposed rule stage, this document was determined not to be
a ``significant regulatory action'' as defined in section 3(f) of the
Executive order. Because this final rule adopts the January 14, 2015,
proposed rule, without change, the final rule is also not a
``significant regulatory action'' as defined in section 3(f) of
Executive Order 12866.
Paperwork Reduction Act
The information collection requirements contained in this proposed
rule have been submitted to the OMB under the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501-3520), and approved under OMB control numbers
2502-0605 and 2502-0541. In accordance with the Paperwork Reduction
Act, an agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection
displays a currently valid OMB control number.
Environmental Review
A Finding of No Significant Impact (FONSI) with respect to the
environment for this rule was made at the proposed rule stage, in
accordance with HUD regulations at 24 CFR part 50, which implement
section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)). The FONSI remains applicable, and is available for
public inspection between 8 a.m. and 5 p.m., weekdays, in the
Regulations Division, Office of General Counsel, Department of Housing
and Urban Development, 451 7th Street SW., Room 10276, Washington, DC
20410-5000. Due to security measures at the HUD Headquarters building,
please schedule an appointment to review the FONSI by calling the
Regulations Division at 202-402-3055 (this is not a toll-free number).
Individuals with speech or hearing impairments may access this number
via TTY by calling the Federal Relay Service at 800-877-8339 (this is a
toll-free number).
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 rule would not
impose any Federal mandates on any State, local, or tribal governments,
or on the private sector, within the meaning of the UMRA.
Regulatory Flexibility Act
The Regulatory Flexibility Act (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 final rule imposes no requirements on small businesses. In
fact, streamlining the Fire Safety Equipment Loan Program requirements
should ease an existing burden on those small businesses seeking to
accommodate acute care patients and those needing to upgrade or install
fire safety equipment to meet HHS requirements.
Accordingly, the undersigned certifies that this final rule will
not have a significant economic impact on a substantial number of small
entities.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either (i) imposes substantial direct compliance costs on State and
local governments and is not required by statute or (ii) preempts State
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive order. 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.
Catalogue of Federal Domestic Assistance
The Catalogue of Federal Domestic Assistance Number for the
Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board
and Care Homes and Assisted Living Facilities is 14.129; for Mortgage
Insurance-Rental Housing
[[Page 48027]]
is 14.134; for Mortgage Insurance for the Purchase or Refinancing of
Existing Multifamily Housing Projects is 14.155.
List of Subjects
24 CFR Part 200
Administrative practice and procedure, Claims, Equal employment
opportunity, Fair housing, Home improvement, Housing standards, Lead
poisoning, Loan programs--housing and community development, Mortgage
insurance, Organization and functions (Government agencies), Penalties,
Reporting and recordkeeping.
24 CFR Part 232
Fire prevention, Health facilities, Loan programs--health, Loan
programs--housing and community development, Mortgage insurance,
Nursing homes, Reporting and recordkeeping requirements.
Accordingly, for the reasons discussed in this preamble, HUD amends
24 CFR parts 200 and 232 as follows:
PART 200--INTRODUCTION TO FHA PROGRAMS
0
1. The authority citation for 24 CFR part 200 continues to read as
follows:
Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).
0
2. Amend Sec. 200.40 to:
0
a. Redesignate paragraph (d) as paragraph (d)(1);
0
b. Revise the paragraph heading and first sentence of newly
redesignated (d)(1); and
0
c. Add paragraph (d)(2).
The revisions and addition read as follows:
Sec. 200.40 HUD fees.
* * * * *
(d)(1) Application fee--firm commitment: General. An application
for firm commitment shall be accompanied by an application-commitment
fee in an amount determined by the Secretary, which when added to any
prior fees received in connection with the same application, shall not
exceed $5.00 per thousand dollars of the requested mortgage amount to
be insured.
* * *
(2) Application fee--Section 232 Programs. For purposes of
mortgages insured under HUD's regulations in 24 CFR part 232, subpart
C, an application for firm commitment shall be accompanied by an
application fee in an amount determined by the Secretary, which shall
not exceed $5.00 per thousand dollars of the requested mortgage amount
to be insured.
* * * * *
PART 232--MORTGAGE INSURANCE FOR NURSING HOMES, INTERMEDIATE CARE
FACILITIES, BOARD AND CARE HOMES, AND ASSISTED LIVING FACILITIES
0
3. The authority citation for 24 CFR part 232 continues to read as
follows:
Authority: 12 U.S.C. 1715b, 1715w; 42 U.S.C. 3535(d).
Subpart C--Eligibility Requirements--Supplemental Loans To Finance
Purchase and Installation of Fire Safety Equipment
0
4. In Sec. 232.500, revise paragraphs (c)(1)(i) and (ii) and (e) to
read as follows:
Sec. 232.500 Definitions.
* * * * *
(c) * * *
(1) * * *
(i) The edition of The Life Safety Code of the National Fire
Protection Association as accepted by the Department of Health and
Human Services in 42 CFR 483.70; or
(ii) A standard mandated by a State under the provisions of section
1616(e) of the Social Security Act.
* * * * *
(e) Equipment cost means the reasonable cost of fire safety
equipment fully installed as determined by the Commissioner.
* * * * *
0
5. Revise Sec. 232.505 to read as follows:
Sec. 232.505 Application and application fee.
(a) Filing of application. An application for insurance of a fire
safety loan for a nursing home, intermediate care facility, assisted
living facility or board and care home shall be submitted on an
approved HUD form by an approved lender and by the owners of the
project to the HUD office.
(b) Application fee. See 24 CFR 200.40(d)(2).
0
6. Amend Sec. 232.510 to:
0
a. Revise paragraphs (b), (c), and (d);
0
b. Remove paragraph (e); and
0
c. Redesignate paragraph (f) as paragraph (e) and revise newly
designated paragraph (e) to read as follows:
Sec. 232.510 Commitment and commitment fee.
* * * * *
(b) Type of commitment. The commitment will provide for the
insurance of the loan after satisfactory completion of installation of
the fire safety equipment, as determined by the Commissioner.
(c) Term of commitment. A commitment shall have a term as the
Commissioner deems necessary for satisfactory completion of
installation.
(d) Commitment fee. See 24 CFR 200.40(d)(2).
(e) Increase in commitment prior to endorsement. An application,
filed prior to endorsement, for an increase in the amount of an
outstanding firm commitment shall be accompanied by an additional
application fee. The additional application fee shall be in an amount
determined by the Secretary as equal to the amount determined under 24
CFR 200.40(d)(2), which shall not exceed $5.00 per thousand dollars of
the amount of the requested increase. If an inspection fee was required
in the original commitment, an additional inspection fee shall be paid
in an amount computed at the same dollar rate per thousand dollars of
the amount of increase in commitment as was used for the inspection fee
required in the original commitment. The additional inspection fee
shall be paid prior to the date installation of fire safety equipment
is begun, or, if installation has begun, it shall be paid with the
application for increase.
0
7. Revise Sec. 232.515 to read as follows:
Sec. 232.515 Refund of fees.
If the amount of the commitment issued or an increase in the loan
amount prior to endorsement is less than the amount applied for, the
Commissioner shall refund the excess amount of the application fee
submitted by the applicant. If an application is rejected before it is
assigned for processing, or in such other instances as the Commissioner
may determine, the entire application fee or any portion thereof may be
returned to the applicant.
0
8. Revise Sec. 232.520 to read as follows:
Sec. 232.520 Maximum fees and charges by lender.
See 24 CFR 200.40 titled ``HUD fees'' and 200.41 titled ``Maximum
mortgage fees and charges'' for maximum fees and charges applicable to
mortgages insured under 24 CFR part 232.
0
9. Revise Sec. 232.522 to read as follows:
Sec. 232.522 Inspection fee.
See 24 CFR 200.40 titled ``HUD fees'' and 200.41 titled ``Maximum
mortgage fees and charges'' for maximum fees and charges applicable to
mortgages insured under 24 CFR part 232.
0
10. Revise Sec. 232.540 to read as follows:
[[Page 48028]]
Sec. 232.540 Method of loan payment and amortization period.
See 24 CFR 200.82 titled ``Maturity'' for loan payment and
amortization period requirements applicable to mortgages insured under
24 CFR part 232.
0
11. In Sec. 232.565, revise the first sentence to read as follows:
Sec. 232.565 Maximum loan amount.
The principal amount of the loan shall not exceed the lower of the
Commissioner's estimate of the cost of the fire safety equipment,
including the cost of installation and eligible fees, or the amount
supported by ninety percent (90%) of the residual income, which is
ninety percent (90%) of the amount of net income remaining after
payment of all existing debt service requirements, as determined by the
Commissioner. * * *
0
12. In Sec. 232.570, revise paragraph (c) to read as follows:
Sec. 232.570 Endorsement of credit instrument.
* * * * *
(c) Certification that fire safety equipment was installed as
required by Sec. 232.500(c).
0
13. Revise Sec. 232.605 to read as follows:
Sec. 232.605 Contract requirements.
The contract between the mortgagor and the general contractor may
be in the form of a lump sum contract, a cost plus contract, or
different or alternative forms of contract specified by the
Commissioner.
0
14. In Sec. 232.610, revise paragraph (a) to read as follows:
Sec. 232.610 Certification of cost requirements.
(a) Certificate and adjustment. No loan shall be insured unless a
certification of actual cost is made by the contractor.
* * * * *
0
15. In Sec. 232.615, revise paragraph (a) to read as follows:
Sec. 232.615 Eligible borrowers.
(a) In order to be eligible as a borrower under this subpart the
applicant shall be a profit or non-profit entity, which owns a nursing
home or intermediate care facility for which the Secretary of Health
and Human Services has determined that the installation of fire safety
equipment in such facility is necessary to meet the applicable
requirements of the Secretary of Health and Human Services for
providers of services under Title XVIII and Title XIX of the Social
Security Act and that upon completion of the installation of such
equipment the nursing home or intermediate care facility will meet the
applicable fire safety requirements of HHS. Until the termination of
all obligations of the Commissioner under an insurance contract under
this subpart and during such further period of time as the Commissioner
shall be the owner, holder, or reinsurer of the loan, the borrower
shall be regulated or restricted by the Commissioner as to methods of
operation including requirements for maintenance of fire safety
equipment.
* * * * *
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16. Revise Sec. 232.620 to read as follows:
Sec. 232.620 Determination of compliance with fire safety equipment
requirements.
Prior to Endorsement, applicant must provide certification that the
installed improvements will meet HHS, as well as all other Federal,
state and local requirements for fire safety equipment, if applicable.
Dated: August 6, 2015.
Edward L. Golding,
Principal Deputy, Assistant Secretary for Housing.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-19714 Filed 8-10-15; 8:45 am]
BILLING CODE 4210-67-P