Narrowing the Digital Divide Through Installation of Broadband Infrastructure in HUD-Funded New Construction and Substantial Rehabilitation of Multifamily Rental Housing, 92626-92639 [2016-30708]
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Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Rules and Regulations
submitted within 30 calendar days
instead of 15 calendar days if your
combination product received
marketing authorization under a device
application.
(3) If your combination product
contains a biological product
constituent part, you must submit:
(i) Biological product deviation
reports; and
(ii) Fifteen-day reports as described in
§ 600.80 of this chapter, which must be
submitted within 30 calendar days
instead of 15 calendar days if your
combination product received
marketing authorization under a device
application.
(d) Other reporting requirements for
combination product applicants. (1) If
you are the combination product
applicant for a combination product that
contains a device constituent part and
that received marketing authorization
under an NDA, ANDA, or BLA, in
addition to the information otherwise
required in the periodic safety reports
you submit under § 314.80 or § 600.80 of
this chapter, your periodic safety reports
must also include a summary and
analysis of the reports identified in
paragraphs (c)(1)(i) and (ii) of this
section that were submitted during the
report interval.
(2) If you are the combination product
applicant for a combination product that
received marketing authorization under
a device application, in addition to the
reports required under paragraphs (b)
and (c) of this section, you must submit
reports regarding postmarketing safety
events if notified by the Agency in
writing that the Agency requires
additional information. We will specify
what safety information is needed and
will require such information if we
determine that protection of the public
health requires additional or clarifying
safety information for the combination
product. In any request under this
section, we will state the reason or
purpose for the safety information
request, specify the due date for
submitting the information, and clearly
identify the reported event(s) related to
our request.
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§ 4.103 What information must you share
with other constituent part applicants for
the combination product?
(a) When you receive information
regarding an event that involves a death
or serious injury as described in § 803.3
of this chapter, or an adverse experience
as described in § 314.80(a) of this
chapter or § 600.80(a) of this chapter,
associated with the use of the
combination product, you must provide
the information to the other constituent
part applicant(s) for the combination
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product no later than 5 calendar days of
your receipt of the information.
(b) With regard to information you
must provide to the other constituent
part applicant(s) for the combination
product, you must maintain records that
include:
(1) A copy of the information you
provided,
(2) The date the information was
received by you,
(3) The date the information was
provided to the other constituent part
applicant(s), and
(4) The name and address of the other
constituent part applicant(s) to whom
you provided the information.
accordance with the longest time period
required for records under the
regulations applicable to your product
under § 4.102.
Dated: December 14, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016–30485 Filed 12–19–16; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 5, 92, 93, 570, 574, 578,
880, 881, 883, 884, 886, 891, 905, 983
§ 4.104 How and where must you submit
postmarketing safety reports for your
combination product or constituent part?
[Docket No. FR 5890–F–02]
(a) If you are a constituent part
applicant, you must submit
postmarketing safety reports in
accordance with the regulations
identified in § 4.102(b) that are
applicable to your product based on its
application type.
(b) If you are a combination product
applicant, you must submit
postmarketing safety reports required
under § 4.102 in the manner specified in
the regulation applicable to the type of
report, with the following exceptions:
(1) You must submit the
postmarketing safety reports identified
in § 4.102(c)(1)(i) and (ii) in accordance
with § 314.80(g) of this chapter if your
combination product received
marketing authorization under an NDA
or ANDA or in accordance with
§ 600.80(h) of this chapter if your
combination product received
marketing authorization under a BLA.
(2) You must submit the
postmarketing safety reports identified
in § 4.102(c)(2)(ii) and (c)(3)(ii) in
accordance with § 803.12(a) of this
chapter if your combination product
received marketing authorization under
a device application.
Narrowing the Digital Divide Through
Installation of Broadband
Infrastructure in HUD-Funded New
Construction and Substantial
Rehabilitation of Multifamily Rental
Housing
§ 4.105 What are the postmarketing safety
reporting recordkeeping requirements for
your combination product or constituent
part?
(a) If you are a constituent part
applicant:
(1) You must maintain records in
accordance with the recordkeeping
requirements in the applicable
regulation(s) described in § 4.102(b).
(2) You must maintain records
required under § 4.103(b) for the longest
time period required for records under
the postmarketing safety reporting
regulations applicable to your product
under § 4.102(b).
(b) If you are a combination product
applicant, you must maintain records in
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RIN 2501–AD75
Office of the Secretary, HUD.
Final rule.
AGENCY:
ACTION:
Through this rule, HUD
continues its efforts to narrow the
digital divide in low-income
communities served by HUD by
providing, where feasible and with HUD
funding, broadband infrastructure to
communities in need of such
infrastructure. In this final rule, HUD
requires installation of broadband
infrastructure at the time of new
construction or substantial
rehabilitation of multifamily rental
housing that is funded or supported by
HUD, the point at which such
installation is generally easier and less
costly than when undertaken as a standalone effort. The rule, however,
recognizes that installation of
broadband infrastructure may not be
feasible for all new construction or
substantial rehabilitation, and,
therefore, it allows limited exceptions to
the installation requirements. Installing
unit-based broadband infrastructure in
multifamily rental housing that is newly
constructed or substantially
rehabilitated with or supported by HUD
funding will provide a platform for
individuals and families residing in
such housing to participate in the digital
economy and increase their access to
economic opportunities.
DATES: Effective date: January 19, 2017.
FOR FURTHER INFORMATION CONTACT: If
you have any questions, please contact
the following people (the telephone
numbers are not toll-free):
Office of Community Planning and
Development programs: Clifford Taffet,
SUMMARY:
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General Deputy Assistant Secretary for
Community Planning and Development,
Room 7100, 202–708–2690.
Office of Multifamily Housing
programs: Katie Buckner, Office of
Recapitalization, Office of Housing,
Room 6226, 202–402–7140.
Office of Public and Indian Housing
programs: Dominique Blom, Deputy
Assistant Secretary for Public Housing
Investments, Office of Public and Indian
Housing, Room 4130, 202–402–4181.
The address for all individuals is
Department of Housing and Urban
Development; 451 7th Street SW.;
Washington, DC 20410–0500. Persons
with hearing or speech impairments
may access these numbers through TTY
by calling the Federal Relay Service at
800–877–8339 (this is a toll-free
telephone number).
SUPPLEMENTARY INFORMATION:
I. Executive Summary
A. Purpose of this Rule
The purpose of this rule is to require
installation of broadband infrastructure
at the time of new construction or
substantial rehabilitation of multifamily
rental housing that is funded or
supported by HUD. This rule does not
require a funding recipient to undertake
new construction or substantial
rehabilitation, but when a funding
recipient does choose to pursue such
activity for multifamily rental housing
with HUD funding, this rule requires
installation of broadband infrastructure.
While the rule only requires affected
funding recipients to install one form of
broadband infrastructure, HUD suggests
that funding recipients consider
whether installing more than one form
of broadband infrastructure would be
beneficial to encourage competition
among service providers on quality and
price. Installing unit-based broadband
infrastructure in multifamily rental
housing that is newly constructed or
substantially rehabilitated with or
supported by HUD funding will provide
a platform for individuals and families
residing in such housing to participate
in the digital economy, and increase
their access to economic opportunities.
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B. Summary of Major Provisions of this
Rule
This rule requires installation of
broadband infrastructure at the time of
new construction or substantial
rehabilitation of multifamily rental units
funded by the following programs:
1. Choice Neighborhoods
Implementation Grant program;
2. Community Development Block
Grant (CDBG) program, including the
CDBG Disaster Recovery program;
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3. Continuum of Care program;
4. HOME Investment Partnerships
program;
5. Housing Opportunities for Persons
With AIDS program;
6. Housing Trust Fund program;
7. Project-Based Voucher program;
8. Public Housing Capital Fund
program;
9. Section 8 project-based housing
assistance payments programs,
including, but not limited to, the
Section 8 New Construction, Substantial
Rehabilitation, Loan Management SetAside, and Property Disposition
programs; 1 and
10. Section 202 and Section 811
Supportive Housing for the Elderly and
Persons with Disabilities programs.
The requirements of the rule do not
apply to multifamily rental housing that
only has a mortgage insured by HUD’s
Federal Housing Administration or with
a loan guaranteed under a HUD loan
guarantee program.
HUD defines broadband infrastructure
as cables, fiber optics, wiring, or other
permanent (integral to the structure)
infrastructure—including wireless
infrastructure—as long as the
installation results in broadband
infrastructure in each dwelling unit
meeting the Federal Communications
Commission’s (FCC’s) definition in
effect at the time the pre-construction
estimates are generated. Currently, the
FCC defines broadband speeds as 25
Megabits per second (Mbps) download,
3 Mbps upload.2 In addition, for
programs that do not already have a
definition of substantial rehabilitation,
HUD defines substantial rehabilitation
as work on the electrical system with
estimated costs equal to or greater than
75 percent of the cost of replacing the
entire electrical system, or when the
estimated cost of the rehabilitation is
equal to or greater than 75 percent of the
total estimated cost of replacing the
multifamily rental housing after the
rehabilitation is complete. The
definition of substantial rehabilitation
for purpose of the installation of
broadband infrastructure does not affect
definitions of rehabilitation already in
place for other purposes.
C. Costs and Benefits of This Rule
The costs and benefits of this rule are
difficult to quantify, but they can be
described qualitatively. This rule only
requires that the broadband
infrastructure provided be able to
receive high-speed Internet that is
‘‘accessible’’ in each unit. It does not
require those recipients of funding
undertaking new construction or
substantial rehabilitation to provide
broadband service to current or future
residents even if residents pay for such
service. Furthermore, the definition of
broadband infrastructure in the rule
includes coaxial cable television (TV)
wiring that supports cable modem
access or even permanent infrastructure
that would provide broadband speeds to
dwelling units wirelessly. The rule also
provides for exceptions to the
installation requirements where the
installation is too costly to provide due
to location or building characteristics.
A recent survey by the National
Association of Homebuilders found that
4 percent of the surveyed multifamily
housing developers never installed
landline wires and jacks in multifamily
units completed in the past 12 months.3
In recent years, HUD’s competitive
grants for new construction under the
Choice Neighborhoods program have
sought the provision of broadband
access. Therefore, this rule would
simply codify what is considered
common practice in the private market
today when new construction or
substantial rehabilitation is undertaken.
Given the wide range of technologies
that may be employed to meet the
requirements of this rule, it is not
possible to specify the cost of the
technology and how much additional
burden this may be for owners or
developers building or providing
substantial rehabilitation to HUDassisted rental housing. If the broadband
infrastructure consists of wiring
connected to proximate telephone or
cable company networks, the cost is not
expected to be significant, as all
electrical work in a multifamily project
is estimated to be only about 10 percent
of the construction cost; 4 thus, running
an additional cable through existing
electrical conduits would be a minimal
1 This rule applies to all projects with projectbased Section 8 housing assistance payment (HAP)
contracts (other than Mod Rehab or Mod Rehab
Single Room Occupancy (SRO) projects), regardless
of whether the properties receive specific funding
to pay directly for substantial rehabilitation or new
construction, as defined in this rule.
2 Federal Communications Commission, 2015
Broadband Progress Report and Notice of Inquiry on
Immediate Action to Accelerate Deployment, GN
Docket No. 14–126, Rel. Feb. 4, 2015, at para. 45
(available at https://apps.fcc.gov/edocs_public/
attachmatch/FCC-15-10A1.pdf).
3 NAHB, Multifamily Market Survey 3rd Quarter
2015. November 2015. There were 90 responses,
and of the responses, 18 percent indicated it was
not applicable, presumably because they had not
completed any projects in the past 12 months. The
survey covers all multifamily construction
including lower quality Class B and Class C. It does
not provide details on the developers or projects
that did not install landlines.
4 2015 National Building Cost Manual. Ed. Ben
Moselle. Carlsbad, CA: Craftsman Book Company.
https://www.craftsman-book.com/media/static/
previews/2015_NBC_book_preview.pdf,, pg. 19.
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incremental cost. If the broadband
infrastructure is wireless, the cost will
be for the equipment, which varies
greatly by the design and size of the
project, as does the cost per unit. Given
that the costs of installation of
broadband infrastructure are only a
portion of the 10 percent of construction
costs, the requirement imposed by this
rule is not expected to measurably
reduce the size of the housing or the
number of units to be constructed. At
most, installation of broadband
infrastructure may reduce the provision
of other amenities or nonessential
finishes, but HUD considers even these
reductions unlikely. Additionally, the
rule only applies to new construction or
substantial rehabilitation that is
supported with HUD-provided
resources, not to existing buildings
where substantial rehabilitation is not
contemplated.
Materials on the benefits of narrowing
the digital divide are voluminous.
Having broadband Internet in the home
increases household income 5 and yields
higher education achievement for
students.6 On July 2015, the Council of
Economic Advisers issued the report
‘‘Mapping the Digital Divide,’’ which
examines progress in the United States
in narrowing the digital divide and the
work that still needs to be done,
especially in the Nation’s poorest
neighborhoods and most rural
communities.7 However, this rule’s
limited scope in only requiring the
installation of infrastructure instead of
providing Internet access also limits the
benefits of the rule. The benefit of the
rule is that where broadband Internet
service can be made available, the
tenant, residing in housing with
broadband infrastructure, will be
assured of the ability to access
broadband Internet service, whether
they choose and are able to afford
Internet service or not. This puts
broadband Internet service within reach,
especially where other charitable and
public social programs, including
HUD’s ConnectHome program, provide
free or reduced-cost service.
5 Ericsson, Arthur D. Little, and Chalmers
University of Technology. Socioeconomic Effects of
Broadband Speed. September 2013. https://
www.ericsson.com/res/thecompany/docs/corporateresponsibility/2013/ericsson-broadband-final071013.pdf.
6 Davidson, Charles M. and Michael J. Santorelli.
‘‘The Impact of Broadband on Education.’’
December 2010. https://www.uschamber.com/sites/
default/files/legacy/about/US_Chamber_Paper_on_
Broadband_and_Education.pdf, pg. 24.
7 See Council of Economic Advisers. ‘‘Mapping
the Digital Divide.’’ Issue Brief. July 2015. https://
www.whitehouse.gov/sites/default/files/wh_digital_
divide_issue_brief.pdf.
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II. Background
On March 23, 2015, President Obama
issued a Presidential memorandum on
‘‘Expanding Broadband Deployment and
Adoption by Addressing Regulatory
Barriers and Encouraging Investment
and Training.’’ 8 In this memorandum,
the President noted that access to highspeed broadband is no longer a luxury,
but it is a necessity for American
families, businesses, and consumers.
The President further noted that the
Federal Government has an important
role to play in developing coordinated
policies to promote broadband
deployment and adoption, including
promoting best practices, breaking down
regulatory barriers, and encouraging
further investment.
On May 18, 2016, at 81 FR 31181,
HUD published a proposed rule seeking
to require the installation of broadband
infrastructure on all new construction or
substantial rehabilitation in multifamily
projects supported by HUD. This
proposed rule was an outgrowth of the
President’s memorandum and HUD’s
own Digital Opportunity Demonstration,
known as ‘‘ConnectHome.’’ The
comment period on the proposed rule
closed on July 18, 2016. HUD received
25 comments on the proposed rule from
a variety of commenters, including State
or local government economic
development offices, the National
Association of Home Builders, Internet
service providers, housing authorities,
and nonprofit organizations.
III. Changes From the Proposed Rule
HUD is not changing any of the
substantive requirements that were in
the proposed rule. Rather, in response to
questions raised by public comments,
HUD is offering two clarifications in the
regulatory text.
First, in the definition in 24 CFR
5.100, HUD is basing the threshold for
substantial rehabilitation on the prerehabilitation estimates for the work.
HUD recognizes that, in the course of
rehabilitation, certain cost or work
changes may result in the project
exceeding the threshold to be defined
(for the purposes of installing
broadband infrastructure) as substantial
rehabilitation. However, in these
instances, the funding recipients are
already facing higher costs than
expected, and to add additional,
8 See Barack Obama. ‘‘Presidential
Memorandum—Expanding Broadband Deployment
and Adoption by Addressing Regulatory Barriers
and Encouraging Investment and Training.’’ March
23, 2015. https://www.whitehouse.gov/the-pressoffice/2015/03/23/presidential-memorandumexpanding-broadband-deployment-and-adoptionaddr.
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unplanned-for requirements would be
an undue burden.
Second, HUD has clarified the point
in the planning process for new
construction or substantial
rehabilitation at which a project must
be, as of the effective date of this rule,
to not be subject to the rule’s
requirements. Due to the different
nature of each program covered by this
rule, a tailored approach was necessary,
instead of a single declaration for all of
the programs.
In addition to these two regulatory
changes, HUD will offer some future
clarifying guidance on how funding
recipients are to determine whether
installing broadband infrastructure
would be infeasible for a given project.
This is to be a case-by-case
determination, and is very fact-specific.
The ultimate decision, however, will be
up to the funding recipient, who will
also have to maintain adequate
documentation of the determination.
IV. Public Comments and HUD
Responses
Adoption of the Internet Franchise
Policy Framework
A commenter urged HUD to adopt the
policy framework of the Internet
Franchise (found at https://webpass.net/
franchise), which the commenter stated
directly addresses the issues in HUD’s
rule and would eliminate the need for
rulemaking in this area. The commenter
stated that creating a new set of rules for
a small subset of properties—those
supported by HUD—is not helpful. HUD
should adopt broadly applicable
Internet access rules that can be a model
for the whole country.
HUD Response: HUD appreciates the
suggestion but believes the approach
provided in HUD’s rule is the
appropriate approach for HUD
programs. In addition, HUD is not able
to regulate Internet access for housing
not assisted by HUD.
Capacity or Speed
Commenters asked that HUD
encourage the installation of
infrastructure that is ‘‘future-proofed’’
against higher Internet speeds than what
meets the current broadband definition,
perhaps by encouraging fiber optic
connections to accomplish that goal or
by requiring that the infrastructure have
capacity of 150 percent of the current
standards. Commenters also suggested
that, rather than just considering
bandwidth capacity, HUD should
require that the technology allow for the
use of common Internet applications
(including voice-over-Internet protocols,
or VOIP, and other streaming services).
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Commenters suggested that HUD find
ways to provide incentives to provide
the highest level of broadband capacity.
Commenters also asked how HUD
intended to communicate and
implement new speed standards from
the FCC.
HUD Response: HUD is not
mandating that funding recipients
install a specific type of infrastructure.
Rather, HUD has specifically written the
definition of broadband infrastructure to
allow funding recipients to choose the
form of infrastructure that is most
appropriate for their circumstances,
including future technologies that we
cannot imagine today.
HUD believes that, rather than
requiring installation of infrastructure
meeting a standard higher than the
FCC’s then-current definition of
‘‘advanced telecommunications
capability,’’ it is enough to install
infrastructure that meets that definition,
especially as in some areas that speed is
more than what may be currently
available. Further, HUD believes that by
requiring that each unit has access to
infrastructure that allows broadband
speeds, every family will be able to use
Internet applications, such as VOIP, as
desired. However, this is established as
the minimum. Nothing prevents funding
recipients from aiming higher, and
nothing prevents other local authorities
from establishing higher standards as a
local requirement for funding or from
using HUD funding to pay for the cost
differential of getting to that higher
level.
In addition, by tying the infrastructure
requirements to the FCC’s definition,
future changes by the FCC will
automatically be incorporated into
HUD’s requirements. When the
definition is revised in the future, HUD
will evaluate the most appropriate way
to notify its funding recipients covered
by this rule of the change.
Costs
Commenters responded to HUD’s
estimates on the cost of installing
broadband infrastructure. Many
commented that the estimates of the
costs of labor and material were too low,
particularly when a project is
undergoing rehabilitation. Commenters
stated that the costs would vary widely
across the country, depending on the
construction type, the number of units
involved, and the regional labor costs.
Commenters also stated that HUD
should account for operation and
maintenance costs for the infrastructure,
which may be significant. Commenters
stated that the study by the National
Association of Home Builders did not
specifically address broadband access,
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and, therefore, it should not be used as
evidence that installing broadband is
already current practice.
Commenters also suggested that HUD
has not justified the costs of compliance
with the rule with enough benefits.
Some commenters stated that in rural
areas, limited access to broadband
equipment installers can inflate
installation and service costs.
HUD Response: The benefits of
narrowing the digital divide through
expansion of Internet service are well
documented. The Council of Economic
Advisers Brief, issued in March 2016,
and entitled ‘‘The Digital Divide and
Economic Benefits of Broadband
Access,’’ demonstrates such benefits.
(See https://www.whitehouse.gov/sites/
default/files/page/files/20160308_
broadband_cea_issue_brief.pdf.) HUD
understands that the costs of installing
broadband infrastructure will vary given
the geographic area in which the
construction or substantial
rehabilitation is to take place and that,
given such variations, the costs of labor
and materials will not be uniform across
the Nation. Some costs may be lower
because the jurisdiction in which the
installation is occurring may already
have a strong broadband infrastructure
in place that would reduce the cost of
a HUD funding recipient to provide
such infrastructure. However, given the
comments received, HUD has revised its
costs analyses found in Section V of this
preamble.
Whatever the cost of the installation
of a broadband infrastructure, that cost
is borne by HUD in the funds awarded
to the funding recipient, or the HUD
funds are taken into account when
leveraging them for rehabilitation
funding. There is no mandate in any of
the HUD programs covered by this rule
to undertake new construction or
substantial rehabilitation.
While HUD funds will cover the cost
of installation of the broadband
infrastructure, HUD understands that, in
tight budgetary times, installing
broadband infrastructure may be too
expensive for the construction budget to
incorporate, given other construction or
rehabilitation requirements such as
energy efficiency features or
improvements or accessible housing
features needed by the elderly or
persons with disabilities. In such cases,
the final rule provides that a funding
recipient may be exempted from
compliance if the cost of installing
broadband infrastructure would result
in a fundamental alteration in the nature
of its program or activity or in an undue
financial burden.
HUD will continue to explore the
possibilities of reducing the cost of
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broadband infrastructure, including
allowing HUD funds to be used for
operation or maintenance costs or
facilitating group purchases to reduce
the costs of the infrastructure itself.
Exceptions
Many commenters weighed in on the
exceptions to the broadband
infrastructure requirements. Several
requested examples of projects that
would fall under the listed exceptions
or more detailed definitions of the
provided exceptions. Commenters
suggested that, in addition to the
exemptions currently included, HUD
provide an exception for scattered-site
properties with 1 to 4 units.
Some commenters stated that having
a building in a rural location should not
exempt the housing provider from
providing broadband infrastructure as,
while the connection to the building
may be more expensive, a rural location
does not increase the price of installing
infrastructure in the building itself.
Other commenters stated that requiring
the installation of infrastructure where
broadband is not currently available
could result in the buildings having
obsolete infrastructure when broadband
access is provided.
Regarding the feasibility
determination, some commenters
believed that the owner should be the
proper entity to determine whether
installing broadband infrastructure is
feasible, while others stated that HUD
should make that determination,
moving as quickly as possible to avoid
delays in projects. Commenters also
requested additional information on the
infeasibility exception, particularly
what documentation developers should
maintain about any determination of
feasibility, and any specific formula or
source of pre-rehabilitation estimates
that HUD will require. Commenters
asked at what point a project would be
considered infeasible; some stated that
the threshold of feasibility should be set
such that costs of broadband installation
that are over 5 percent of the
construction budget should be
considered infeasible.
Commenters suggested that HUD
should consider the costs of maintaining
and operating the infrastructure in
determining feasibility. Commenters
reminded HUD that, in the future,
increased speed requirements could
impact the feasibility of installing
broadband infrastructure. Commenters
also suggested that HUD encourage
installation of broadband infrastructure
in common areas if it is too expensive
to install in every unit.
HUD Response: This rule only applies
to buildings with more than 4 rental
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units, so HUD does not believe an
exemption for scattered-site properties
is needed.
For the existing exemptions from the
rule’s requirements, this rule places the
burden of determining whether or not
an exemption applies and documenting
the basis for the determination on the
funding recipient. HUD will provide
additional guidance with examples and
possible ways to make such
determinations. HUD also appreciates
and supports the suggestion that if a
funding recipient determines that
providing broadband infrastructure to
every unit is too expensive, the funding
recipient should consider providing
broadband infrastructure to common
areas at the property.
HUD notes that a building’s location
in a rural area not currently served by
broadband does not necessarily mean
that broadband will not be available in
the foreseeable future. In addition, the
current unavailability of broadband
service to a property does not
automatically mean that installing the
broadband infrastructure is cost
prohibitive. However, HUD
acknowledges that, in some situations,
the fact that broadband will not be
available to a property for an extended
time period could be a legitimate
justification for meeting the ‘‘location’’
exemption, particularly if the window
before broadband service is available is
long enough to potentially render any
infrastructure installed now obsolete by
the time such service is available.
In some programs, maintenance and
operating costs are considered eligible
expenses of the funding program, and,
therefore, there is no need to consider
those costs when determining the cost
feasibility of installing the broadband
infrastructure in the first place. At this
time, it is beyond the scope of this
rulemaking to amend other program
regulations (which are sometimes based
on statutory limitations) to allow such
costs when it is not currently allowable.
However, HUD will continue to look for
situations in which program regulations
can be revised to allow Internet
operation and maintenance costs to be
eligible uses of program funds.
Effectiveness Timeline
Commenters also asked for additional
detail on the timing of when the
requirements of the new rule would
apply. Some stated that for substantial
rehabilitation, HUD should state that
any project beyond the earliest stage of
project budget development should be
exempted from the rule. Commenters
also suggested that the rule should not
apply if a request for proposals (RFP)
has been issued for a given project.
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HUD Response: HUD fully recognizes
that imposing additional requirements
on projects that have already established
budgets would have negative impacts on
those new construction or substantial
rehabilitation plans. HUD has, therefore,
put specific applicability language into
each program’s regulations specifying
the date or point in the development
process after which projects will be
subject to these new requirements. HUD
intends in particular to issue additional
guidance for the Project-Based Voucher
(PBV) program and any substantial
rehabilitation that may occur after a
Housing Assistance Payments (HAP)
contract has been signed.
However, HUD encourages funding
recipients who are currently developing
projects for new construction or
substantial rehabilitation that would not
be covered by this rule to seriously
consider whether they can include
broadband infrastructure in those
construction or rehabilitation plans.
Infrastructure Design
Commenters suggested other changes
to HUD’s requirements for the
broadband infrastructure. Several stated
that the broadband wiring should enter
the building at a central point and then
flow to each unit and common space in
the building. Commenters stated that
HUD should encourage building owners
to consider ways to future proof the
infrastructure, including how to replace
broken wires and how to make access
points easily accessible. Others wrote
that HUD should specify that buildings
using wireless should have sufficient
access points to ensure that each unit
has fast, reliable service.
Commenters also stated that HUD
should require broadband infrastructure
be provided for common areas and
meeting spaces.
Some commenters objected to HUD
allowing broadband over power lines
(BPL) or very-high-bit-rate digital
subscriber lines (VDSL), as the
commenters felt those technologies
needed significant improvements and
more widespread adoption to become
viable ways of receiving broadband.
HUD Response: This final rule does
not require a specific form of broadband
infrastructure, as long as the
infrastructure meets the speed
requirements and complies with State
and local building codes. This rule does
not supersede any State or local
building codes that may apply to the
installation of broadband infrastructure.
HUD expects funding recipients to
consider the costs of installation, as well
as operation and maintenance, when
deciding which form of broadband
infrastructure to install. HUD also
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encourages all funding recipients to
include broadband infrastructure in a
way that conforms to standards for
resilient construction.
In addition, HUD is not requiring the
installation of broadband infrastructure
in common areas and meeting spaces,
but HUD highly encourages funding
recipients to do so when possible. In
projects where installing such
infrastructure in individual units is cost
prohibitive, HUD encourages funding
recipients to install broadband
infrastructure in common areas, unless
the recipient determines that is also cost
prohibitive.
Internet Service Providers (ISPs)
Several commenters stated that HUD
should encourage housing providers to
install broadband infrastructure that
enables multiple competitive providers
in the same project, or a managed
solution to allow for subsidized
services. Commenters stated that HUD
should prohibit owners from entering
into arrangements with providers that
limit other providers’ access to inside
wiring, interfering with the right of
residents to request or receive
broadband service from a specific
provider, or entering into exclusive
marketing arrangements in HUDsupported housing.
Commenters stated that infrastructure
running from the street to the building
should have sufficient conduit capacity
to allow for use by multiple providers.
HUD Response: As noted in response
to the prior comments, HUD leaves the
precise nature or manner of installation
of broadband infrastructure to standards
and requirements set by State and local
codes. HUD does recognize that it is
important to provide as much choice as
possible regarding service providers.
However, sometimes, exclusive
contracts allow for the provision of
broadband service at a much lower rate
than would otherwise be available. HUD
therefore declines at this time to restrict
housing providers’ ability to enter into
limited service contracts, but would like
to recommend caution for public
housing agencies (PHAs) considering
exclusivity contracts.
Programs
Commenters were divided on whether
HUD should include additional
programs beyond those in the proposed
rule. Some wrote that HUD should not
include more programs. Others asked
that HUD include all programs
providing housing assistance for lowincome populations, which may make
the regulation easier to enforce in
general. Commenters also stated that
HUD should include all multifamily
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programs, while reconsidering
including Continuum of Care (CoC)
programs, as they help with shelter
needs, not long-term housing solutions.
HUD Response: The number of HUD
programs that provide for new
construction and substantial
rehabilitation has not expanded greatly
over the years. HUD’s Choice
Neighborhoods program was the
successor to HUD’s HOPE VI program.
HUD’s Housing Trust Fund program is
a new program that provides, among
other things, for the production of
affordable housing. If future HUD
programs, whether existing or new,
provide for the new construction or
substantial rehabilitation of multifamily
rental housing, HUD will incorporate
these requirements into those programs.
In addition, CoC funds long-term
housing solutions as well as temporary
housing solutions. Therefore, HUD finds
it appropriate to include broadband
infrastructure in these projects.
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Sanctions
Commenters suggested some
sanctions HUD could consider. Some
stated that HUD should fine owners for
inappropriate use of exemptions from
the requirements, perhaps using the
funds for digital literacy programs.
Commenters stated that HUD could, in
egregious cases, disqualify recipients
from future HUD funding. Other
commenters suggested that instead of
sanctions, HUD could require funding
recipients to develop ways to bring the
Internet to a project’s residents.
HUD Response: For every HUD
program, there are corrective and
remedial actions available to HUD for
funding recipients who do not follow
their regulatory requirements. These
corrective and remedial actions vary
among programs, depending on existing
statutory and regulatory authority. At
this time, developing additional
program-specific remedies is outside the
scope of this rulemaking. However, in
the event that a funding recipient does
not follow the requirements of this rule,
HUD will use the options currently
available to pursue such violations.
Substantial Rehabilitation
Commenters suggested that HUD
reconsider applying the requirements to
substantial rehabilitation projects.
Others suggested that HUD expand the
definition to include other trigger
activities, such as updating or replacing
coaxial cables, installing fiber optics, or
installing Ethernet. Commenters stated
that the definition of substantial
rehabilitation should not include the
electrical system standard, because
work on electrical systems does not
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always translate easily into providing
broadband infrastructure.
Commenters addressed HUD’s
question about how to determine
whether a rehabilitation project rises to
the level of substantial rehabilitation.
Some stated that HUD should rely on
pre-rehabilitation cost estimates
because, if there are unexpected
expenses that take the project over the
substantial rehabilitation threshold,
adding broadband requirements on top
of those expenses may be too much for
the project. However, other comments
stated that HUD should use actual costs
to judge the substantial threshold.
Commenters also asked how the
standard applies to scattered sites,
where only a single unit or a few units
are being renovated.
HUD Response: HUD believes that it
is important to include substantial
rehabilitation in this rule to maximize
the number of families who can benefit
from the rule, while minimizing costs as
much as possible. In addition, HUD
believes that maintaining the electrical
system standard as one way to
determine substantial rehabilitation is
appropriate, as such work would likely
result in exposing a building’s basic
infrastructure in such a way as to allow
for the installation of broadband
infrastructure.
HUD appreciates the responses to the
question about which construction costs
to use when determining whether or not
work rises to the level of substantial
rehabilitation. HUD has decided that the
percentage-of-cost threshold for
substantial rehabilitation should be
based on the pre-rehabilitation cost
estimates, and this has been
incorporated into the substantial
rehabilitation definition.
Because this rule only affects
structures with more than 4 rental units,
scattered-site housing with fewer than 4
rental units is not covered by the rule.
Additional HUD Support for Broadband
Commenters stated that HUD should
couple the rule with additional support
for subsidies and digital literacy
programs, including treating the
provision of broadband service as an
eligible expenditure in affordable rental
housing. Others asked for additional
funding for the infrastructure costs
themselves. Commenters further stated
that HUD could leverage its size and
buying power to secure broadband
service at lower prices. Some suggested
that HUD should explore additional
subsidies to use ‘‘white space’’ in the
over-air spectrum in rural areas for
wireless Internet or to subsidize seniors
or families with children.
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92631
Commenters also suggested that HUD
should coordinate with the United
States Department of Agriculture
(USDA) to work with ‘‘last mile’’
connection issues.
HUD Response: This rule, and HUD’s
broadband rule providing for assessing
Internet service needs in the
consolidated planning process, are not
HUD’s final responses to narrowing the
digital divide. Through HUD’s
ConnectHome initiative, HUD is striving
to narrow the digital divide in the
housing arena. In addition, HUD has
and will continue to work with other
Federal agencies, such as the USDA and
the National Telecommunications and
Information Administration.
HUD encourages funding recipients to
make their own connections with other
programs, or to establish local
requirements to accomplish these goals.
HUD will continue to seek out
opportunities to foster such
partnerships at the national and local
level. Several HUD programs can be
used to pay for such complementary
services, and HUD encourages funding
recipients to leverage those resources.
HUD will also continue to explore ways
to expand the eligibility of such
complementary services and for
infrastructure work in HUD programs.
However, Congress, not HUD,
establishes program funding levels, so
we are unable to provide additional
programmatic funds at this time.
Other Comments
Commenters asked HUD to expand
the scope of the rule beyond new
construction and substantial
rehabilitation to also include existing
facilities. Commenters also disagreed
with HUD’s encouragement to deploy
competing infrastructure or delivery
mechanisms.
HUD Response: As noted in responses
above, this rule and its companion
broadband rule regarding the
consolidated planning process are not
HUD’s final responses to narrowing the
digital divide. HUD is continuing to
examine other areas for which HUD has
authority and oversight to determine
whether there are other avenues HUD
can take to narrow the digital divide. At
this time, however, it is outside the
scope of this rulemaking to require
funding recipients to retrofit existing
buildings with broadband infrastructure
unless rehabilitation work is being
undertaken with HUD program funding.
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substantial rehabilitation of multifamily
rental housing that is funded by HUD.
As noted in the Executive Summary, the
costs and benefits of this rule are
difficult to quantify, but they can be
described qualitatively.
V. 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. This rule was
determined to be a ‘‘significant
regulatory action’’ as defined in section
3(f) of Executive Order 12866 (although
not an economically significant
regulatory action, as provided under
section 3(f)(1) of the Executive Order).
As discussed, this rule furthers HUD’s
efforts to narrow the digital divide in
low-income communities served by
HUD. Specifically, HUD is requiring
installation of broadband infrastructure
at the time of new construction or
A. Benefits
The benefits of narrowing the digital
divide are well documented. In just one
example, a study conducted by a former
chair of the President’s Council of
Economic Advisers used data on the
amount of time Internet users spend
online to estimate that Internet access
produces thousands of dollars of
consumer surplus per user each year.9
As noted above, however, the benefits of
Internet technology have not been
evenly distributed and research shows
that there remain substantial disparities
in both Internet use and the quality of
access. This digital deficit is generally
concentrated among older, less
educated, and less affluent
populations,10 as well as in persons
with disabilities.11
Additionally, individuals with vision,
learning, and physical disabilities
affecting manual dexterity rely on
assistive technologies to interact with
computers and the Internet, and such
technologies function best on broadband
Internet. Without access to broadband
infrastructure, these individuals may
have limited access to basic services
that are now offered online.
HUD recognizes that the rule’s limited
scope in only requiring the installation
of infrastructure, instead of providing
Internet access, also limits the benefits
of the rule. Specifically, the benefit of
the rule is that where broadband
Internet can be made available at a
limited price, the tenants, residing in
housing with broadband infrastructure,
will be assured of the ability to access
broadband Internet service, whether
they choose and are able to afford
Internet service or not. This rule,
therefore, would put broadband Internet
service within reach where other
charitable and public social programs,
including HUD’s ConnectHome
program, provide free or reduced-cost
service.
B. Costs
It is not possible to specify the exact
costs that recipients and owners may
incur as a result of the rule, given the
variety of available technologies that
may be used to satisfy the new
broadband requirements. However,
available data indicate that any costs
associated with this rule will be
minimal.
As is displayed on Table I, broadband
Internet access can be provided using
two general technologies: Wired and
wireless, each with several specific
technologies. Broadband can be
delivered over wired lines using veryhigh-bit-rate digital subscriber lines
(VDSL), cable lines, power lines (BPL),
or fiber optic platforms. Using wireless
technologies, broadband can be
provided using satellite, fixed wireless,
mobile wireless, and Wi-Fi platforms.
TABLE I—TYPES OF BROADBAND TECHNOLOGIES
Access requirement
Platform
Connection type
Not part of
infrastructure
Part of infrastructure
Wired:
Digital Subscriber Line (VDSL)
Cable Modem .........................
Fiber ........................................
Broadband over Power Lines
(BPL).
Wireless:
Satellite ...................................
Fixed Wireless ........................
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Mobile Wireless ......................
Wireless Fidelity (Wi-Fi) ..........
Copper wire ..................................
Copper wire ..................................
Fiber Optic wire ............................
Copper wire ..................................
Yes
Yes
Yes
Yes
................................................
................................................
................................................
................................................
Router
Router
Router
Router
&
&
&
&
Modem.
Modem.
Modem.
Modem.
Over the Air—satellite ..................
Over the Air—Longer Range Directional Equipment.
Over the Air—Cellular ..................
Over the Air—Short-Range Wireless Technology.
None .............................................
None .............................................
Router & Modem.
Router & Modem.
None .............................................
None .............................................
Router & Modem.
Router & Modem.
Whereas wired lines technologies may
require some sort of physical
infrastructure consisting of internal
wiring within the dwelling unit,
wireless technologies do not require any
additional physical infrastructure
9 Council of Economic Advisers July 2015 report,
supra, citing Austan Goolsbee and Peter J. Klenow,
Valuing Consumer Products by the Time Spent
Using Them: An Application to the Internet
National Bureau of Economic Research Working
Paper No. 11995 (February 2006) available online
at: https://www.nber.org/papers/w11995.
10 Ibid.
11 Eve Hill, Department of Justice, Testimony
before the Senate Committee on Health, Education,
Labor, and Pensions (February 7, 2012), available
online at https://www.justice.gov/sites/default/files/
testimonies//attachments/02/07/12/02-07-12-crthill-testimony.pdf.
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Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Rules and Regulations
wiring, as this is all that is required by
the rule. Within the unit or the building,
the electrical work consists of running
cable (meeting the requirements of
category (Cat) 5e or Cat 6 wire),
installing jacks and plates, and minor
construction work (such as drilling and
patching walls). Fiber optic cables are
rarely run in the dwelling unit but are
installed by the service provider outside
the unit; the non-fiber optic wiring then
makes broadband accessible within the
unit. Depending on the market, some of
the cost is also borne by the service
provider.
within the building. With wireless
technology, the signal travels through
the air to the customer, who uses a
connection technology, such as a
modem, to access the services. For
wireless technologies, the infrastructure
cost to the property boundary
(connection to the service provider) is
nil ($0.00). However, the availability of
wireless broadband service is limited
and evolving, so HUD expects many
builders will install wired broadband
infrastructure to ensure that the
requirements of this rule are met.
Building costs of installing wired
infrastructure are limited to in-dwelling
92633
The average per-unit cost for wiring
for broadband Internet is approximately
$200 (see Table II). These costs are
simply estimates of one method of
complying with the requirements of the
rule. Labor costs will also vary based on
the region and whether the installation
is being done as part of substantial
rehabilitation or new construction. At
most, installation of broadband
infrastructure may reduce the provision
of other amenities or nonessential
finishes, but even these reductions are
considered unlikely.
TABLE II—SAMPLE COST TO INSTALL ELECTRICAL WIRING (1 WIRING) 12
Item
Quantity
Electrical Wiring Labor (Hours)—Labor estimate to install electrical wiring, route,
secure, and connect new NMB–B wiring run for single receptacle, up to a 40′
run. Includes planning, equipment, and material acquisition, area preparation
and protection, setup, and cleanup.
Electrical Wiring Materials and Supplies—Cost of related materials and supplies
typically required to install electrical wiring including connectors, fittings, and
mounting hardware.
2.1 hours ................
$160.07
$205.10
1 Wiring (unit) ........
20.00
25.00
Total Costs (1 Wiring) ......................................................................................
................................
180.07
230.10
HUD also notes that the rule is drafted
so as to minimize the costs of the new
installation requirements. For example,
the rule does not mandate any
rehabilitation or construction, and the
decision to undertake such activities
appropriately remains with recipients
and owners. Rather, the scope of the
regulatory changes is limited to
requiring the installation of broadband
infrastructure if the recipient or owner
elects to undertake new construction or
substantial rehabilitation. The rule
minimizes the economic impacts on
recipients and owners by recognizing
that the installation of broadband
infrastructure is generally less
burdensome and costly at the time of
new construction or substantial
rehabilitation than when such
installation is undertaken as a standalone effort.
Moreover, this rule only requires the
installation of broadband infrastructure
that is ‘‘accessible’’ in each unit. The
rule does not require recipients or
owners to provide a regular subscription
to broadband Internet service (even at a
cost) to residents. Also minimizing the
economic costs of the regulatory
changes is the fact that the definition of
broadband infrastructure includes cable
television, fiber optic cabling, and
wireless infrastructure providing
appropriate broadband connectivity to
the individual units. As discussed above
in this Executive Summary, multifamily
HUD or standard-market new
construction typically provides
telephone landline and cable TV
connectivity. Further, HUD’s
Low
High
competitive grants for new construction
under the Choice Neighborhoods
program have, in recent years, sought
the provision of broadband.
A review of HUD internal databases,
summarized on Table III, shows that, in
2013, 58,677 units within the targeted
programs were newly constructed or
rehabilitated. However, HUD’s data did
not contain specific information to be
able to determine how many of the units
that underwent rehabilitation met the
definition of ‘‘substantial rehabilitation’’
contained in the rule, so the number of
affected units would be smaller than is
contained in the table. In addition, data
on affected units newly constructed
using CDBG funding are unavailable, as
grantee reports do not separate
multifamily from single-unit new
construction.
TABLE III—HUD-ASSISTED NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION
Sec. 8
RAD
811 PRAC
202 PRAC
Sec. 8 202
HOPE VI
PIH
CDBG
HOME
Rental
Totals
146
44
..................
703
297
..................
..................
..................
..................
..................
19,424
11,596
..................
22,492
..................
..................
36
..................
..................
..................
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New Construction
2012 ...........................
2013 ...........................
2014 ...........................
..................
110
100
506
583
482
2,405
2,034
1,592
..................
..................
..................
Rehabilitation
2012 ...........................
..................
..................
25
..................
12 https://www.homewyse.com/services/cost_to_
install_electrical_wiring.html.
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TABLE III—HUD-ASSISTED NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION—Continued
Sec. 8
RAD
811 PRAC
202 PRAC
Sec. 8 202
HOPE VI
PIH
CDBG
HOME
Rental
Totals
2013 ...........................
2014 ...........................
199
..................
15
28
..................
15
109
..................
..................
..................
16
..................
20,918
15,716
14,928
6,965
36,185
..................
FY 2013 Totals ...
..................
..................
..................
..................
..................
..................
..................
..................
58,677
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Further, a review found that
multifamily (5-plus units) HUD or
standard-market new construction
typically provides telephone landlines
and many provide cable TV
connectivity.13 A recent survey by the
National Association of Homebuilders
found that just 4 percent of the surveyed
multifamily housing developers did not
install landline wires and jacks in
multifamily units completed in the past
12 months.14 15 In recent years, HUD’s
competitive grants for new construction
under the Choice Neighborhoods
program have required the provision of
broadband.16 Therefore, this rule simply
codifies what is considered common
practice in at least one program.
Accordingly, most recipients and
owners already meet the standards
established in the rule, and the new
regulatory requirements will impose
minimal, if any, new economic costs.
HUD has addressed those rare situations
where the new requirements may prove
too costly by allowing exceptions to the
installation requirements where the
installation is documented to be
economically infeasible due to location
or building characteristics.
13 For example, under ‘‘Class 4 Low Average
Quality’’ the Craftsman 2015 National Building Cost
Manual lists cable TV as a standard feature. Only
‘‘Class 5’’ minimum quality does not list cable or
a computer network as a standard feature. All
electrical work is estimated to be 10 percent of
project cost. 2015 National Building Cost Manual,
supra, p. 19.
14 NAHB, Multifamily Market Survey, supra.
15 Note that HUD’s definition of accessibility is
more restrictive than the FCC’s because HUD
considers only the building itself.
16 United States Department of Housing and
Urban Development. ‘‘Choice Neighborhoods
Planning Grants Notice of Funding Availability,’’
supra, p. 32. ‘‘Broadband Access. All FY2014 and
FY2015 Implementation Grantees will be required,
as part of their Transformation Plan, to include
infrastructure that permits unit-based access to
broadband Internet connectivity in all new units.
Grantees may use Choice Neighborhoods funds to
provide unit-based broadband Internet connectivity,
which includes the costs of installing broadband
infrastructure and hardware in units, but not the
costs of Internet service for residents. Regular and
informed Internet adoption can increase access to
the job market, as well as health, education,
financial and other services. Further, in-home
broadband Internet access is an attractive, and in
most cases, standard amenity that can be used to
market the mixed-income community created
through the Transformation Plan.’’
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The docket file is available for public
inspection online at
www.regulations.gov under the docket
number and title of this rule.
Impact on Small Entities
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.
This rule provides that for new
construction or substantial
rehabilitation of multifamily rental
housing funded by HUD, as part of the
new construction or substantial
rehabilitation to be undertaken, such
activity must include installation of
broadband infrastructure. None of the
programs covered by this rule require a
funding recipient to undertake new
construction or substantial
rehabilitation. Instead, new construction
and substantial rehabilitation are
eligible activities that funding recipients
may take using HUD funds. Therefore,
small entities will not incur any costs
they would not otherwise incur by
voluntarily undertaking new
construction or substantial
rehabilitation, since the costs of these
activities, including the installation of
broadband infrastructure, are funded by
HUD. For these reasons, this rule will
not have a significant economic impact
on a substantial number of small
entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) establishes
requirements for Federal agencies to
assess the effects of their regulatory
actions on State, local, and tribal
governments and the private sector.
This rule will not impose any Federal
mandates on any State, local, or tribal
governments or the private sector within
the meaning of the UMRA.
Paperwork Reduction Act
The information collection
requirements contained in this rule
were submitted to OMB under the
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Paperwork Reduction Act of 1995 (44
U.S.C. 3501–3520) for review and
approval and are pending or are covered
by OMB control numbers 2577–0269,
2577–0191, 2506–0165, 2506–0077,
2506–0085, 2506–0170, 2506–0199,
2506–0171, 2506–0133, 2577–0169,
2577–0157, 2502–0587, 2502–0612,
2502–0462, and 2502–0608. 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 was made at the proposed
rule stage in accordance with HUD
regulations in 24 CFR part 50 that
implement section 102(2)(C) of the
National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)). That FONSI
remains applicable to this final rule and
is available for public inspection online
at www.regulations.gov under the
docket number and title of this rule.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial direct compliance costs on
State and local governments and is not
required by statute, or the rule 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 nor
preempts State law within the meaning
of the Executive order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance numbers applicable to the
programs that would be affected by this
rule are: 14.218, 14.225, 14.228, 14.239,
14.241, 14.267, 14.850, 14.871, and
14.872.
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List of Subjects
24 CFR Part 881
24 CFR Part 5
Grant programs-housing and
community development, Rent
subsidies, Reporting and recordkeeping
requirements.
Administrative practice and
procedure, Aged, Claims, Crime,
Government contracts, Grant programshousing and community development,
Individuals with disabilities,
Intergovernmental relations, Loan
programs-housing and community
development, Low and moderate
income housing, Mortgage insurance,
Penalties, Pets, Public housing, Rent
subsidies, Reporting and recordkeeping
requirements, Social security,
Unemployment compensation, Wages.
24 CFR Part 92
24 CFR Part 883
Grant programs-housing and
community development, Rent
subsidies, Reporting and recordkeeping
requirements.
24 CFR Part 884
Grant programs-housing and
community development, Rent
subsidies, Reporting and recordkeeping
requirements, Rural areas.
Administrative practice and
procedure, Low and moderate income
housing, Manufactured homes, Rent
subsidies, Reporting and recordkeeping
requirements.
24 CFR Part 886
24 CFR Part 93
24 CFR Part 891
Administrative practice and
procedure, Grant programs-housing and
community development, Low and
moderate income housing,
Manufactured homes, Rent subsidies,
Reporting and recordkeeping
requirements.
Aged, Grant programs-housing and
community development, Individuals
with disabilities, Loan programshousing and community development,
Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 570
Administrative practice and
procedure, American Samoa,
Community development block grants,
Grant programs-education, Grant
programs-housing and community
development, Guam, Indians, Loan
programs-housing and community
development, Low and moderate
income housing, Northern Mariana
Islands, Pacific Islands Trust Territory,
Puerto Rico, Reporting and
recordkeeping requirements, Student
aid, Virgin Islands.
24 CFR Part 574
Community facilities, Grant programshousing and community development,
Grant programs-social programs, HIV/
AIDS, Low and moderate income
housing, Reporting and recordkeeping
requirements.
mstockstill on DSK3G9T082PROD with RULES
24 CFR Part 578
Community development,
Community facilities, Grant programshousing and community development,
Grant programs-social programs,
Homeless, Reporting and recordkeeping
requirements.
Grant programs-housing and
community development, Lead
poisoning, Rent subsidies, Reporting
and recordkeeping requirements.
24 CFR Part 905
Grant programs-housing and
community development, Public
housing, Reporting and recordkeeping
requirements.
24 CFR Part 983
Grant programs-housing and
community development, Low and
moderate income housing, Rent
subsidies, Reporting and recordkeeping
requirements.
Accordingly, for the reasons stated in
the preamble, HUD amends 24 CFR
parts 5, 92, 93, 570, 574, 578, 880, 881,
883, 884, 886, 891, 905, and 983 as
follows:
PART 5—GENERAL HUD PROGRAM
REQUIREMENTS; WAIVERS
1. The authority citation for part 5
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
1437n, 3535(d), Sec. 327, Pub. L. 109–115,
119 Stat. 2936, Sec. 607, Pub. L. 109–162,
119 Stat. 3051, E.O. 13279, and E.O. 13559.
2. In § 5.100, add the definitions of
‘‘Broadband infrastructure’’ and
‘‘Substantial rehabilitation’’ in
alphabetical order, to read as follows:
■
24 CFR Part 880
§ 5.100
Grant programs-housing and
community development, Rent
subsidies, Reporting and recordkeeping
requirements.
*
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Jkt 241001
Definitions.
*
*
*
*
Broadband infrastructure means
cables, fiber optics, wiring, or other
permanent (integral to the structure)
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92635
infrastructure, including wireless
infrastructure, that is capable of
providing access to Internet connections
in individual housing units, and that
meets the definition of ‘‘advanced
telecommunications capability’’
determined by the Federal
Communications Commission under
section 706 of the Telecommunications
Act of 1996 (47 U.S.C. 1302).
*
*
*
*
*
Substantial rehabilitation, for the
purposes of determining when
installation of broadband infrastructure
is required as part of substantial
rehabilitation of multifamily rental
housing, unless otherwise defined by a
program, means work that involves:
(1) Significant work on the electrical
system of the multifamily rental
housing. ‘‘Significant work’’ means
complete replacement of the electrical
system or other work for which the preconstruction cost estimate is equal to or
greater than 75 percent of the cost of
replacing the entire electrical system. In
the case of multifamily rental housing
with multiple buildings with more than
4 units, ‘‘entire system’’ refers to the
electrical system of the building
undergoing rehabilitation; or
(2) Rehabilitation of the multifamily
rental housing in which the preconstruction estimated cost of the
rehabilitation is equal to or greater than
75 percent of the total estimated cost of
replacing the multifamily rental housing
after the rehabilitation is complete. In
the case of multifamily rental housing
with multiple buildings with more than
4 units, the replacement cost must be
the replacement cost of the building
undergoing rehabilitation.
*
*
*
*
*
PART 92—HOME INVESTMENT
PARTNERSHIPS PROGRAM
3. The authority citation for part 92
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d) and 12701–
12839.
4. Amend § 92.251 by revising the
introductory text of paragraph (a)(2) and
adding paragraphs (a)(2)(vi) and (b)(1)(x)
to read as follows:
■
§ 92.251
Property standards.
(a) * * *
(2) HUD requirements. All new
construction projects must also meet the
requirements described in this
paragraph:
*
*
*
*
*
(vi) Broadband infrastructure. For
new commitments made after January
19, 2017 for a new construction housing
project of a building with more than 4
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rental units, the construction must
include installation of broadband
infrastructure, as this term is defined in
24 CFR 5.100, except where the
participating jurisdiction determines
and, in accordance with
§ 92.508(a)(3)(iv), documents the
determination that:
(A) The location of the new
construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing the
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. For new
commitments made after January 19,
2017 for a substantial rehabilitation
project of a building with more than 4
rental units, any substantial
rehabilitation, as defined in 24 CFR
5.100, must provide for installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the participating jurisdiction
determines and, in accordance with
§ 92.508(a)(3)(iv), documents the
determination that:
(A) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(B) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(C) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
include installation of broadband
infrastructure, as this term is defined in
24 CFR 5.100, except where the grantee
determines and, in accordance with
§ 93.407(a)(2)(iv), documents the
determination that:
(A) The location of the new
construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. For new
commitments made after January 19,
2017 for a substantial rehabilitation
project of a building with more than 4
rental units, any substantial
rehabilitation, as defined in 24 CFR
5.100, must provide for installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the grantee determines and, in
accordance with § 93.407(a)(2)(iv),
documents the determination that:
(A) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(B) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(C) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
PART 93—HOUSING TRUST FUND
■
PART 570—COMMUNITY
DEVELOPMENT BLOCK GRANTS
7. The authority citation for part 570
continues to read as follows:
5. The authority citation for part 93
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d) and 5301–
5320.
Authority: 42 U.S.C. 3535(d), 12 U.S.C.
4568.
■
6. Amend § 93.301 by revising the
introductory text of paragraph (a)(2) and
adding paragraphs (a)(2)(vi) and (b)(1)(x)
to read as follows:
§ 570.202 Eligible rehabilitation and
preservation activities.
■
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§ 93.301
Property standards.
(a) * * *
(2) HUD requirements. All new
construction projects must also meet the
requirements described in this
paragraph:
*
*
*
*
*
(vi) Broadband infrastructure. For
new commitments made after January
19, 2017 for a new construction housing
project of a building with more than 4
rental units, the construction must
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8. In § 570.202, add paragraph (g) to
read as follows:
*
*
*
*
*
(g) Broadband infrastructure. Any
substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units, for which CDBG funds are
first obligated by the recipient on or
after April 19, 2017, must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the recipient
determines and, in accordance with
§ 570.506, documents the determination
that:
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(1) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
■ 9. In § 570.204 add paragraph (a)(5) to
read as follows:
§ 570.204 Special activities by CommunityBased Development Organizations
(CBDOs).
(a) * * *
(5) Any new construction or
substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units, for which CDBG funds are
first obligated by the recipient on or
after April 19, 2017, must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the recipient
determines and, in accordance with
§ 570.506, documents the determination
that:
(i) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(ii) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(iii) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
■ 10. Add paragraph (c)(5) to § 570.482
to read as follows:
§ 570.482
Eligible activities.
*
*
*
*
*
(c) * * *
(5) Broadband infrastructure in
housing. Any new construction or
substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units, for which CDBG funds are
first obligated by the State’s grant
recipient on or after July 18, 2017, must
include installation of broadband
infrastructure, as this term is also
defined in 24 CFR 5.100, except where
the State or the State’s grant recipient
determines and documents the
determination that:
(i) The location of the new
construction or substantial
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rehabilitation makes installation of
broadband infrastructure infeasible;
(ii) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(iii) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
*
*
*
*
*
■ 11. In § 570.506, redesignate
paragraph (c) as paragraph (c)(1) and
add a new paragraph (c)(2) to read as
follows:
§ 570.506
Records to be maintained.
*
*
*
*
*
(c) * * *
(2) Where applicable, records which
either demonstrate compliance with the
requirements of § 570.202(g) or
§ 570.204(a)(5) or document the State’s
or State’s grant recipient’s basis for an
exception to the requirements of those
paragraphs.
*
*
*
*
*
PART 574—HOUSING
OPPORTUNITIES FOR PERSONS WITH
AIDS
12. The authority citation for part 574
continues to read as follows:
■
Authority: 42 U.S.C. 3535(d) and 12901–
12912.
13. Add § 574.350 to subpart D to read
as follows:
■
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§ 574.350 Additional standards for
broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
574.3, of a building with more than 4
rental units, for which HOPWA funds
are first obligated by the grantee or
project sponsor on or after January 19,
2017 must include installation of
broadband infrastructure, as this term is
defined in 24 CFR 5.100, except where
the grantee or project sponsor
determines and, in accordance with
§ 574.530, documents the determination
that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
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Jkt 241001
PART 578—CONTINUUM OF CARE
PROGRAM
14. The authority citation for part 578
continues to read as follows:
■
Authority: 42 U.S.C. 11371 et seq., 42
U.S.C. 3535(d).
15. In § 578.45, add paragraph (d) to
read as follows:
■
§ 578.45
Rehabilitation.
*
*
*
*
*
(d) Broadband infrastructure. Any
substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more
than 4 rental units and funded by a
grant awarded after January 19, 2017
must include installation of broadband
infrastructure, as this term is also
defined in 24 CFR 5.100, except where
the grantee determines and, in
accordance with § 578.103, documents
the determination that:
(1) The location of the substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
■ 16. In § 578.47, add paragraph (c) to
read as follows:
§ 578.47
New construction.
*
*
*
*
(c) Broadband infrastructure. Any
new construction of a building with
more than 4 rental units and funded by
a grant awarded after January 19, 2017
must include installation of broadband
infrastructure, as this term is defined in
24 CFR 5.100, except where the grantee
determines and, in accordance with
§ 578.103, documents the determination
that:
(1) The location of the new
construction makes installation of
broadband infrastructure infeasible; or
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden.
PART 880—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM
FOR NEW CONSTRUCTION
17. The authority citation for part 880
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), 12701, and 13611–13619.
18. Add § 880.212 to subpart B to read
as follows:
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Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and that is subject to a
Housing Assistance Payments contract
executed or renewed after January 19,
2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 881—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM
FOR SUBSTANTIAL REHABILITATION
19. The authority citation for part 881
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), 12701, and 13611–13619.
20. Add § 881.212 to subpart B to read
as follows:
■
*
■
§ 880.212
92637
§ 881.212
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and that is subject to a
Housing Assistance Payments contract
executed or renewed after January 19,
2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
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PART 883—SECTION 8 HOUSING
ASSISTANCE PAYMENTS
PROGRAM—STATE HOUSING
AGENCIES
21. The authority citation for part 883
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
22. Add § 883.314 to subpart C to read
as follows:
■
§ 883.314
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and that is subject to a
Housing Assistance Payments contract
executed or renewed after January 19,
2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 884—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM,
NEW CONSTRUCTION SET–ASIDE
FOR SECTION 515 RURAL RENTAL
HOUSING PROJECTS
23. The authority citation for part 884
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
24. Add § 884.125 to subpart A to read
as follows:
■
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§ 884.125
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and that is subject to a
Housing Assistance Payments contract
executed or renewed after January 19,
2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
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Jkt 241001
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 891—SUPPORTIVE HOUSING
FOR THE ELDERLY AND PERSONS
WITH DISABILITIES
PART 886—SECTION 8 HOUSING
ASSISTANCE PAYMENTS
PROGRAM—SPECIAL ALLOCATIONS
■
■
25. The authority citation for part 886
continues to read as follows:
Authority: 12 U.S.C. 1701q; 42 U.S.C.
1437f, 3535(d), and 8013.
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
■
26. Add § 886.140 to subpart A to read
as follows:
■
§ 886.140
Broadband infrastructure.
28. The authority citation for part 891
continues to read as follows:
29. In § 891.120, add paragraph (f) to
read as follows:
§ 891.120 Project design and cost
standards.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and that is subject to a
Housing Assistance Payments contract
executed or renewed after January 19,
2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
■ 27. Add § 886.340 to subpart C to read
as follows:
*
*
*
*
(f) Broadband infrastructure. Any new
construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and funded by a grant
awarded after January 19, 2017 must
include installation of broadband
infrastructure, as this term is also
defined in 24 CFR 5.100, except where
the owner determines and documents
the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
■ 30. Add § 891.550 to subpart E to read
as follows:
§ 886.340
§ 891.550
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and that is subject to a
Housing Assistance Payments contract
executed or renewed after January 19,
2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
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*
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and funded by a grant
awarded after January 19, 2017 must
include installation of broadband
infrastructure, as this term is also
defined in 24 CFR 5.100, except where
the owner determines and documents
the determination that:
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
E:\FR\FM\20DER1.SGM
20DER1
Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Rules and Regulations
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
PART 905—THE PUBLIC HOUSING
CAPITAL FUND PROGRAM
31. The authority citation for part 905
continues to read as follows:
■
Authority: 42 U.S.C. 1437g, 42 U.S.C.
1437z–2, 42 U.S.C. 1437z–7, and 3535(d).
32. In § 905.312, add paragraph (e) to
read as follows:
■
§ 905.312
Design and construction.
*
*
*
*
*
(e) Broadband infrastructure. Any
new construction or substantial
rehabilitation, as substantial
rehabilitation is defined in 24 CFR
5.100, of a building with more than 4
rental units and funded by a grant
awarded or Capital Funds allocated after
January 19, 2017 must include
installation of broadband infrastructure,
as this term is also defined in 24 CFR
5.100, except where the PHA
determines and, in accordance with
§ 905.326, documents the determination
that:
(1) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(2) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(3) The structure of the housing to be
rehabilitated makes installation of
broadband infrastructure infeasible.
PART 983—PROJECT-BASED
VOUCHER (PBV) PROGRAM
33. The authority citation for part 983
continues to read as follows:
■
Authority: 42 U.S.C. 1437f and 3535(d).
34. Add § 983.157 to subpart D to read
as follows:
■
mstockstill on DSK3G9T082PROD with RULES
§ 983.157
Broadband infrastructure.
Any new construction or substantial
rehabilitation, as substantial
rehabilitation is defined by 24 CFR
5.100, of a building with more than 4
rental units and where the date of the
notice of owner proposal selection or
the start of the rehabilitation while
under a HAP contract is after January
19, 2017 must include installation of
broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except
where the owner determines and
documents the determination that:
VerDate Sep<11>2014
19:50 Dec 19, 2016
Jkt 241001
(a) The location of the new
construction or substantial
rehabilitation makes installation of
broadband infrastructure infeasible;
(b) The cost of installing broadband
infrastructure would result in a
fundamental alteration in the nature of
its program or activity or in an undue
financial burden; or
(c) The structure of the housing to be
substantially rehabilitated makes
installation of broadband infrastructure
infeasible.
Dated: December 15, 2016.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2016–30708 Filed 12–19–16; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF LABOR
Employee Benefits Security
Administration
29 CFR Part 2510
RIN 1210–AB76
Savings Arrangements Established by
Qualified State Political Subdivisions
for Non-Governmental Employees
Employee Benefits Security
Administration, Department of Labor.
AGENCY:
ACTION:
Final rule.
This document contains an
amendment to a final regulation that
describes how states may design and
operate payroll deduction savings
programs for private-sector employees,
including programs that use automatic
enrollment, without causing the states
or private-sector employers to have
established employee pension benefit
plans under the Employee Retirement
Income Security Act of 1974 (ERISA).
The amendment expands the final
regulation beyond states to cover
qualified state political subdivisions
and their programs that otherwise
comply with the regulation. This final
rule affects individuals and employers
subject to such programs.
SUMMARY:
This rule is effective 30 days
after the date of publication in the
Federal Register.
DATES:
FOR FURTHER INFORMATION CONTACT:
Janet Song, Office of Regulations and
Interpretations, Employee Benefits
Security Administration, (202) 693–
8500. This is not a toll-free number.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00091
Fmt 4700
Sfmt 4700
92639
I. Background
A. The 2016 Final Safe Harbor
Regulation
On August 30, 2016, the Department
issued a final regulation establishing a
safe harbor pursuant to which state
governments can establish payroll
deduction savings programs for privatesector employees, including programs
with automatic enrollment, without
causing either the state or the employers
of those employees to have established
employee pension benefit plans subject
to ERISA. The Department published
the safe harbor regulation in response to
legislation in some states, and stronglyexpressed interest in others, to
encourage private-sector employees to
save for retirement by giving those
employees broader access to retirement
savings arrangements through their
employers. The safe harbor regulation
became effective on October 31, 2016.
As the Department noted in the final
regulation’s preamble, concerns that
tens of millions of America’s workers do
not have access to workplace retirement
savings arrangements led some states to
establish state-administered programs
that allow private-sector employees to
contribute salary withholdings to taxfavored individual retirement accounts
described in 26 U.S.C. 408(a),
individual retirement annuities
described in 26 U.S.C. 408(b), and Roth
IRAs described in 26 U.S.C. 408A
(collectively, IRAs). California,
Connecticut, Illinois, Maryland, and
Oregon, for example, have adopted laws
along these lines.1 Those programs
generally require certain employers that
do not offer workplace savings
arrangements to automatically deduct a
specified amount of wages from their
employees’ paychecks, unless an
employee affirmatively chooses not to
participate in the program, and to remit
those payroll deductions to stateadministered programs consisting of
IRAs established for each participating
employee. All of these state initiatives
allow employees to stop payroll
deductions at any time once they have
begun, and they typically require that
employers provide employees with
program-generated information,
including information on employees’
rights and various program features.
None of the programs, however,
1 California Secure Choice Retirement Savings
Trust Act, Cal. Gov’t Code §§ 100000–10044 (2012);
Connecticut Retirement Security Program Act, P.A.
16–29 (2016); Illinois Secure Choice Savings
Program Act, 820 Ill. Comp. Stat. 80/1–95 (2015);
Maryland Small Business Retirement Savings
Program Act, Ch. 24 (H.B. 1378) (2016); Oregon
Retirement Savings Board Act, Ch. 557 (H.B. 2960)
(2015).
E:\FR\FM\20DER1.SGM
20DER1
]]>Agencies
[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Rules and Regulations]
[Pages 92626-92639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30708]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 92, 93, 570, 574, 578, 880, 881, 883, 884, 886,
891, 905, 983
[Docket No. FR 5890-F-02]
RIN 2501-AD75
Narrowing the Digital Divide Through Installation of Broadband
Infrastructure in HUD-Funded New Construction and Substantial
Rehabilitation of Multifamily Rental Housing
AGENCY: Office of the Secretary, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: Through this rule, HUD continues its efforts to narrow the
digital divide in low-income communities served by HUD by providing,
where feasible and with HUD funding, broadband infrastructure to
communities in need of such infrastructure. In this final rule, HUD
requires installation of broadband infrastructure at the time of new
construction or substantial rehabilitation of multifamily rental
housing that is funded or supported by HUD, the point at which such
installation is generally easier and less costly than when undertaken
as a stand-alone effort. The rule, however, recognizes that
installation of broadband infrastructure may not be feasible for all
new construction or substantial rehabilitation, and, therefore, it
allows limited exceptions to the installation requirements. Installing
unit-based broadband infrastructure in multifamily rental housing that
is newly constructed or substantially rehabilitated with or supported
by HUD funding will provide a platform for individuals and families
residing in such housing to participate in the digital economy and
increase their access to economic opportunities.
DATES: Effective date: January 19, 2017.
FOR FURTHER INFORMATION CONTACT: If you have any questions, please
contact the following people (the telephone numbers are not toll-free):
Office of Community Planning and Development programs: Clifford
Taffet,
[[Page 92627]]
General Deputy Assistant Secretary for Community Planning and
Development, Room 7100, 202-708-2690.
Office of Multifamily Housing programs: Katie Buckner, Office of
Recapitalization, Office of Housing, Room 6226, 202-402-7140.
Office of Public and Indian Housing programs: Dominique Blom,
Deputy Assistant Secretary for Public Housing Investments, Office of
Public and Indian Housing, Room 4130, 202-402-4181.
The address for all individuals is Department of Housing and Urban
Development; 451 7th Street SW.; Washington, DC 20410-0500. Persons
with hearing or speech impairments may access these numbers through TTY
by calling the Federal Relay Service at 800-877-8339 (this is a toll-
free telephone number).
SUPPLEMENTARY INFORMATION:
I. Executive Summary
A. Purpose of this Rule
The purpose of this rule is to require installation of broadband
infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental housing that is funded or
supported by HUD. This rule does not require a funding recipient to
undertake new construction or substantial rehabilitation, but when a
funding recipient does choose to pursue such activity for multifamily
rental housing with HUD funding, this rule requires installation of
broadband infrastructure. While the rule only requires affected funding
recipients to install one form of broadband infrastructure, HUD
suggests that funding recipients consider whether installing more than
one form of broadband infrastructure would be beneficial to encourage
competition among service providers on quality and price. Installing
unit-based broadband infrastructure in multifamily rental housing that
is newly constructed or substantially rehabilitated with or supported
by HUD funding will provide a platform for individuals and families
residing in such housing to participate in the digital economy, and
increase their access to economic opportunities.
B. Summary of Major Provisions of this Rule
This rule requires installation of broadband infrastructure at the
time of new construction or substantial rehabilitation of multifamily
rental units funded by the following programs:
1. Choice Neighborhoods Implementation Grant program;
2. Community Development Block Grant (CDBG) program, including the
CDBG Disaster Recovery program;
3. Continuum of Care program;
4. HOME Investment Partnerships program;
5. Housing Opportunities for Persons With AIDS program;
6. Housing Trust Fund program;
7. Project-Based Voucher program;
8. Public Housing Capital Fund program;
9. Section 8 project-based housing assistance payments programs,
including, but not limited to, the Section 8 New Construction,
Substantial Rehabilitation, Loan Management Set-Aside, and Property
Disposition programs; \1\ and
---------------------------------------------------------------------------
\1\ This rule applies to all projects with project-based Section
8 housing assistance payment (HAP) contracts (other than Mod Rehab
or Mod Rehab Single Room Occupancy (SRO) projects), regardless of
whether the properties receive specific funding to pay directly for
substantial rehabilitation or new construction, as defined in this
rule.
---------------------------------------------------------------------------
10. Section 202 and Section 811 Supportive Housing for the Elderly
and Persons with Disabilities programs.
The requirements of the rule do not apply to multifamily rental
housing that only has a mortgage insured by HUD's Federal Housing
Administration or with a loan guaranteed under a HUD loan guarantee
program.
HUD defines broadband infrastructure as cables, fiber optics,
wiring, or other permanent (integral to the structure) infrastructure--
including wireless infrastructure--as long as the installation results
in broadband infrastructure in each dwelling unit meeting the Federal
Communications Commission's (FCC's) definition in effect at the time
the pre-construction estimates are generated. Currently, the FCC
defines broadband speeds as 25 Megabits per second (Mbps) download, 3
Mbps upload.\2\ In addition, for programs that do not already have a
definition of substantial rehabilitation, HUD defines substantial
rehabilitation as work on the electrical system with estimated costs
equal to or greater than 75 percent of the cost of replacing the entire
electrical system, or when the estimated cost of the rehabilitation is
equal to or greater than 75 percent of the total estimated cost of
replacing the multifamily rental housing after the rehabilitation is
complete. The definition of substantial rehabilitation for purpose of
the installation of broadband infrastructure does not affect
definitions of rehabilitation already in place for other purposes.
---------------------------------------------------------------------------
\2\ Federal Communications Commission, 2015 Broadband Progress
Report and Notice of Inquiry on Immediate Action to Accelerate
Deployment, GN Docket No. 14-126, Rel. Feb. 4, 2015, at para. 45
(available at https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-10A1.pdf).
---------------------------------------------------------------------------
C. Costs and Benefits of This Rule
The costs and benefits of this rule are difficult to quantify, but
they can be described qualitatively. This rule only requires that the
broadband infrastructure provided be able to receive high-speed
Internet that is ``accessible'' in each unit. It does not require those
recipients of funding undertaking new construction or substantial
rehabilitation to provide broadband service to current or future
residents even if residents pay for such service. Furthermore, the
definition of broadband infrastructure in the rule includes coaxial
cable television (TV) wiring that supports cable modem access or even
permanent infrastructure that would provide broadband speeds to
dwelling units wirelessly. The rule also provides for exceptions to the
installation requirements where the installation is too costly to
provide due to location or building characteristics.
A recent survey by the National Association of Homebuilders found
that 4 percent of the surveyed multifamily housing developers never
installed landline wires and jacks in multifamily units completed in
the past 12 months.\3\ In recent years, HUD's competitive grants for
new construction under the Choice Neighborhoods program have sought the
provision of broadband access. Therefore, this rule would simply codify
what is considered common practice in the private market today when new
construction or substantial rehabilitation is undertaken.
---------------------------------------------------------------------------
\3\ NAHB, Multifamily Market Survey 3rd Quarter 2015. November
2015. There were 90 responses, and of the responses, 18 percent
indicated it was not applicable, presumably because they had not
completed any projects in the past 12 months. The survey covers all
multifamily construction including lower quality Class B and Class
C. It does not provide details on the developers or projects that
did not install landlines.
---------------------------------------------------------------------------
Given the wide range of technologies that may be employed to meet
the requirements of this rule, it is not possible to specify the cost
of the technology and how much additional burden this may be for owners
or developers building or providing substantial rehabilitation to HUD-
assisted rental housing. If the broadband infrastructure consists of
wiring connected to proximate telephone or cable company networks, the
cost is not expected to be significant, as all electrical work in a
multifamily project is estimated to be only about 10 percent of the
construction cost; \4\ thus, running an additional cable through
existing electrical conduits would be a minimal
[[Page 92628]]
incremental cost. If the broadband infrastructure is wireless, the cost
will be for the equipment, which varies greatly by the design and size
of the project, as does the cost per unit. Given that the costs of
installation of broadband infrastructure are only a portion of the 10
percent of construction costs, the requirement imposed by this rule is
not expected to measurably reduce the size of the housing or the number
of units to be constructed. At most, installation of broadband
infrastructure may reduce the provision of other amenities or
nonessential finishes, but HUD considers even these reductions
unlikely. Additionally, the rule only applies to new construction or
substantial rehabilitation that is supported with HUD-provided
resources, not to existing buildings where substantial rehabilitation
is not contemplated.
---------------------------------------------------------------------------
\4\ 2015 National Building Cost Manual. Ed. Ben Moselle.
Carlsbad, CA: Craftsman Book Company. https://www.craftsman-book.com/media/static/previews/2015_NBC_book_preview.pdf,, pg. 19.
---------------------------------------------------------------------------
Materials on the benefits of narrowing the digital divide are
voluminous. Having broadband Internet in the home increases household
income \5\ and yields higher education achievement for students.\6\ On
July 2015, the Council of Economic Advisers issued the report ``Mapping
the Digital Divide,'' which examines progress in the United States in
narrowing the digital divide and the work that still needs to be done,
especially in the Nation's poorest neighborhoods and most rural
communities.\7\ However, this rule's limited scope in only requiring
the installation of infrastructure instead of providing Internet access
also limits the benefits of the rule. The benefit of the rule is that
where broadband Internet service can be made available, the tenant,
residing in housing with broadband infrastructure, will be assured of
the ability to access broadband Internet service, whether they choose
and are able to afford Internet service or not. This puts broadband
Internet service within reach, especially where other charitable and
public social programs, including HUD's ConnectHome program, provide
free or reduced-cost service.
---------------------------------------------------------------------------
\5\ Ericsson, Arthur D. Little, and Chalmers University of
Technology. Socioeconomic Effects of Broadband Speed. September
2013. https://www.ericsson.com/res/thecompany/docs/corporate-responsibility/2013/ericsson-broadband-final-071013.pdf.
\6\ Davidson, Charles M. and Michael J. Santorelli. ``The Impact
of Broadband on Education.'' December 2010. https://www.uschamber.com/sites/default/files/legacy/about/US_Chamber_Paper_on_Broadband_and_Education.pdf, pg. 24.
\7\ See Council of Economic Advisers. ``Mapping the Digital
Divide.'' Issue Brief. July 2015. https://www.whitehouse.gov/sites/default/files/wh_digital_divide_issue_brief.pdf.
---------------------------------------------------------------------------
II. Background
On March 23, 2015, President Obama issued a Presidential memorandum
on ``Expanding Broadband Deployment and Adoption by Addressing
Regulatory Barriers and Encouraging Investment and Training.'' \8\ In
this memorandum, the President noted that access to high-speed
broadband is no longer a luxury, but it is a necessity for American
families, businesses, and consumers. The President further noted that
the Federal Government has an important role to play in developing
coordinated policies to promote broadband deployment and adoption,
including promoting best practices, breaking down regulatory barriers,
and encouraging further investment.
---------------------------------------------------------------------------
\8\ See Barack Obama. ``Presidential Memorandum--Expanding
Broadband Deployment and Adoption by Addressing Regulatory Barriers
and Encouraging Investment and Training.'' March 23, 2015. https://www.whitehouse.gov/the-press-office/2015/03/23/presidential-memorandum-expanding-broadband-deployment-and-adoption-addr.
---------------------------------------------------------------------------
On May 18, 2016, at 81 FR 31181, HUD published a proposed rule
seeking to require the installation of broadband infrastructure on all
new construction or substantial rehabilitation in multifamily projects
supported by HUD. This proposed rule was an outgrowth of the
President's memorandum and HUD's own Digital Opportunity Demonstration,
known as ``ConnectHome.'' The comment period on the proposed rule
closed on July 18, 2016. HUD received 25 comments on the proposed rule
from a variety of commenters, including State or local government
economic development offices, the National Association of Home
Builders, Internet service providers, housing authorities, and
nonprofit organizations.
III. Changes From the Proposed Rule
HUD is not changing any of the substantive requirements that were
in the proposed rule. Rather, in response to questions raised by public
comments, HUD is offering two clarifications in the regulatory text.
First, in the definition in 24 CFR 5.100, HUD is basing the
threshold for substantial rehabilitation on the pre-rehabilitation
estimates for the work. HUD recognizes that, in the course of
rehabilitation, certain cost or work changes may result in the project
exceeding the threshold to be defined (for the purposes of installing
broadband infrastructure) as substantial rehabilitation. However, in
these instances, the funding recipients are already facing higher costs
than expected, and to add additional, unplanned-for requirements would
be an undue burden.
Second, HUD has clarified the point in the planning process for new
construction or substantial rehabilitation at which a project must be,
as of the effective date of this rule, to not be subject to the rule's
requirements. Due to the different nature of each program covered by
this rule, a tailored approach was necessary, instead of a single
declaration for all of the programs.
In addition to these two regulatory changes, HUD will offer some
future clarifying guidance on how funding recipients are to determine
whether installing broadband infrastructure would be infeasible for a
given project. This is to be a case-by-case determination, and is very
fact-specific. The ultimate decision, however, will be up to the
funding recipient, who will also have to maintain adequate
documentation of the determination.
IV. Public Comments and HUD Responses
Adoption of the Internet Franchise Policy Framework
A commenter urged HUD to adopt the policy framework of the Internet
Franchise (found at https://webpass.net/franchise), which the commenter
stated directly addresses the issues in HUD's rule and would eliminate
the need for rulemaking in this area. The commenter stated that
creating a new set of rules for a small subset of properties--those
supported by HUD--is not helpful. HUD should adopt broadly applicable
Internet access rules that can be a model for the whole country.
HUD Response: HUD appreciates the suggestion but believes the
approach provided in HUD's rule is the appropriate approach for HUD
programs. In addition, HUD is not able to regulate Internet access for
housing not assisted by HUD.
Capacity or Speed
Commenters asked that HUD encourage the installation of
infrastructure that is ``future-proofed'' against higher Internet
speeds than what meets the current broadband definition, perhaps by
encouraging fiber optic connections to accomplish that goal or by
requiring that the infrastructure have capacity of 150 percent of the
current standards. Commenters also suggested that, rather than just
considering bandwidth capacity, HUD should require that the technology
allow for the use of common Internet applications (including voice-
over-Internet protocols, or VOIP, and other streaming services).
[[Page 92629]]
Commenters suggested that HUD find ways to provide incentives to
provide the highest level of broadband capacity.
Commenters also asked how HUD intended to communicate and implement
new speed standards from the FCC.
HUD Response: HUD is not mandating that funding recipients install
a specific type of infrastructure. Rather, HUD has specifically written
the definition of broadband infrastructure to allow funding recipients
to choose the form of infrastructure that is most appropriate for their
circumstances, including future technologies that we cannot imagine
today.
HUD believes that, rather than requiring installation of
infrastructure meeting a standard higher than the FCC's then-current
definition of ``advanced telecommunications capability,'' it is enough
to install infrastructure that meets that definition, especially as in
some areas that speed is more than what may be currently available.
Further, HUD believes that by requiring that each unit has access to
infrastructure that allows broadband speeds, every family will be able
to use Internet applications, such as VOIP, as desired. However, this
is established as the minimum. Nothing prevents funding recipients from
aiming higher, and nothing prevents other local authorities from
establishing higher standards as a local requirement for funding or
from using HUD funding to pay for the cost differential of getting to
that higher level.
In addition, by tying the infrastructure requirements to the FCC's
definition, future changes by the FCC will automatically be
incorporated into HUD's requirements. When the definition is revised in
the future, HUD will evaluate the most appropriate way to notify its
funding recipients covered by this rule of the change.
Costs
Commenters responded to HUD's estimates on the cost of installing
broadband infrastructure. Many commented that the estimates of the
costs of labor and material were too low, particularly when a project
is undergoing rehabilitation. Commenters stated that the costs would
vary widely across the country, depending on the construction type, the
number of units involved, and the regional labor costs. Commenters also
stated that HUD should account for operation and maintenance costs for
the infrastructure, which may be significant. Commenters stated that
the study by the National Association of Home Builders did not
specifically address broadband access, and, therefore, it should not be
used as evidence that installing broadband is already current practice.
Commenters also suggested that HUD has not justified the costs of
compliance with the rule with enough benefits. Some commenters stated
that in rural areas, limited access to broadband equipment installers
can inflate installation and service costs.
HUD Response: The benefits of narrowing the digital divide through
expansion of Internet service are well documented. The Council of
Economic Advisers Brief, issued in March 2016, and entitled ``The
Digital Divide and Economic Benefits of Broadband Access,''
demonstrates such benefits. (See https://www.whitehouse.gov/sites/default/files/page/files/20160308_broadband_cea_issue_brief.pdf.) HUD
understands that the costs of installing broadband infrastructure will
vary given the geographic area in which the construction or substantial
rehabilitation is to take place and that, given such variations, the
costs of labor and materials will not be uniform across the Nation.
Some costs may be lower because the jurisdiction in which the
installation is occurring may already have a strong broadband
infrastructure in place that would reduce the cost of a HUD funding
recipient to provide such infrastructure. However, given the comments
received, HUD has revised its costs analyses found in Section V of this
preamble.
Whatever the cost of the installation of a broadband
infrastructure, that cost is borne by HUD in the funds awarded to the
funding recipient, or the HUD funds are taken into account when
leveraging them for rehabilitation funding. There is no mandate in any
of the HUD programs covered by this rule to undertake new construction
or substantial rehabilitation.
While HUD funds will cover the cost of installation of the
broadband infrastructure, HUD understands that, in tight budgetary
times, installing broadband infrastructure may be too expensive for the
construction budget to incorporate, given other construction or
rehabilitation requirements such as energy efficiency features or
improvements or accessible housing features needed by the elderly or
persons with disabilities. In such cases, the final rule provides that
a funding recipient may be exempted from compliance if the cost of
installing broadband infrastructure would result in a fundamental
alteration in the nature of its program or activity or in an undue
financial burden.
HUD will continue to explore the possibilities of reducing the cost
of broadband infrastructure, including allowing HUD funds to be used
for operation or maintenance costs or facilitating group purchases to
reduce the costs of the infrastructure itself.
Exceptions
Many commenters weighed in on the exceptions to the broadband
infrastructure requirements. Several requested examples of projects
that would fall under the listed exceptions or more detailed
definitions of the provided exceptions. Commenters suggested that, in
addition to the exemptions currently included, HUD provide an exception
for scattered-site properties with 1 to 4 units.
Some commenters stated that having a building in a rural location
should not exempt the housing provider from providing broadband
infrastructure as, while the connection to the building may be more
expensive, a rural location does not increase the price of installing
infrastructure in the building itself. Other commenters stated that
requiring the installation of infrastructure where broadband is not
currently available could result in the buildings having obsolete
infrastructure when broadband access is provided.
Regarding the feasibility determination, some commenters believed
that the owner should be the proper entity to determine whether
installing broadband infrastructure is feasible, while others stated
that HUD should make that determination, moving as quickly as possible
to avoid delays in projects. Commenters also requested additional
information on the infeasibility exception, particularly what
documentation developers should maintain about any determination of
feasibility, and any specific formula or source of pre-rehabilitation
estimates that HUD will require. Commenters asked at what point a
project would be considered infeasible; some stated that the threshold
of feasibility should be set such that costs of broadband installation
that are over 5 percent of the construction budget should be considered
infeasible.
Commenters suggested that HUD should consider the costs of
maintaining and operating the infrastructure in determining
feasibility. Commenters reminded HUD that, in the future, increased
speed requirements could impact the feasibility of installing broadband
infrastructure. Commenters also suggested that HUD encourage
installation of broadband infrastructure in common areas if it is too
expensive to install in every unit.
HUD Response: This rule only applies to buildings with more than 4
rental
[[Page 92630]]
units, so HUD does not believe an exemption for scattered-site
properties is needed.
For the existing exemptions from the rule's requirements, this rule
places the burden of determining whether or not an exemption applies
and documenting the basis for the determination on the funding
recipient. HUD will provide additional guidance with examples and
possible ways to make such determinations. HUD also appreciates and
supports the suggestion that if a funding recipient determines that
providing broadband infrastructure to every unit is too expensive, the
funding recipient should consider providing broadband infrastructure to
common areas at the property.
HUD notes that a building's location in a rural area not currently
served by broadband does not necessarily mean that broadband will not
be available in the foreseeable future. In addition, the current
unavailability of broadband service to a property does not
automatically mean that installing the broadband infrastructure is cost
prohibitive. However, HUD acknowledges that, in some situations, the
fact that broadband will not be available to a property for an extended
time period could be a legitimate justification for meeting the
``location'' exemption, particularly if the window before broadband
service is available is long enough to potentially render any
infrastructure installed now obsolete by the time such service is
available.
In some programs, maintenance and operating costs are considered
eligible expenses of the funding program, and, therefore, there is no
need to consider those costs when determining the cost feasibility of
installing the broadband infrastructure in the first place. At this
time, it is beyond the scope of this rulemaking to amend other program
regulations (which are sometimes based on statutory limitations) to
allow such costs when it is not currently allowable. However, HUD will
continue to look for situations in which program regulations can be
revised to allow Internet operation and maintenance costs to be
eligible uses of program funds.
Effectiveness Timeline
Commenters also asked for additional detail on the timing of when
the requirements of the new rule would apply. Some stated that for
substantial rehabilitation, HUD should state that any project beyond
the earliest stage of project budget development should be exempted
from the rule. Commenters also suggested that the rule should not apply
if a request for proposals (RFP) has been issued for a given project.
HUD Response: HUD fully recognizes that imposing additional
requirements on projects that have already established budgets would
have negative impacts on those new construction or substantial
rehabilitation plans. HUD has, therefore, put specific applicability
language into each program's regulations specifying the date or point
in the development process after which projects will be subject to
these new requirements. HUD intends in particular to issue additional
guidance for the Project-Based Voucher (PBV) program and any
substantial rehabilitation that may occur after a Housing Assistance
Payments (HAP) contract has been signed.
However, HUD encourages funding recipients who are currently
developing projects for new construction or substantial rehabilitation
that would not be covered by this rule to seriously consider whether
they can include broadband infrastructure in those construction or
rehabilitation plans.
Infrastructure Design
Commenters suggested other changes to HUD's requirements for the
broadband infrastructure. Several stated that the broadband wiring
should enter the building at a central point and then flow to each unit
and common space in the building. Commenters stated that HUD should
encourage building owners to consider ways to future proof the
infrastructure, including how to replace broken wires and how to make
access points easily accessible. Others wrote that HUD should specify
that buildings using wireless should have sufficient access points to
ensure that each unit has fast, reliable service.
Commenters also stated that HUD should require broadband
infrastructure be provided for common areas and meeting spaces.
Some commenters objected to HUD allowing broadband over power lines
(BPL) or very-high-bit-rate digital subscriber lines (VDSL), as the
commenters felt those technologies needed significant improvements and
more widespread adoption to become viable ways of receiving broadband.
HUD Response: This final rule does not require a specific form of
broadband infrastructure, as long as the infrastructure meets the speed
requirements and complies with State and local building codes. This
rule does not supersede any State or local building codes that may
apply to the installation of broadband infrastructure. HUD expects
funding recipients to consider the costs of installation, as well as
operation and maintenance, when deciding which form of broadband
infrastructure to install. HUD also encourages all funding recipients
to include broadband infrastructure in a way that conforms to standards
for resilient construction.
In addition, HUD is not requiring the installation of broadband
infrastructure in common areas and meeting spaces, but HUD highly
encourages funding recipients to do so when possible. In projects where
installing such infrastructure in individual units is cost prohibitive,
HUD encourages funding recipients to install broadband infrastructure
in common areas, unless the recipient determines that is also cost
prohibitive.
Internet Service Providers (ISPs)
Several commenters stated that HUD should encourage housing
providers to install broadband infrastructure that enables multiple
competitive providers in the same project, or a managed solution to
allow for subsidized services. Commenters stated that HUD should
prohibit owners from entering into arrangements with providers that
limit other providers' access to inside wiring, interfering with the
right of residents to request or receive broadband service from a
specific provider, or entering into exclusive marketing arrangements in
HUD-supported housing.
Commenters stated that infrastructure running from the street to
the building should have sufficient conduit capacity to allow for use
by multiple providers.
HUD Response: As noted in response to the prior comments, HUD
leaves the precise nature or manner of installation of broadband
infrastructure to standards and requirements set by State and local
codes. HUD does recognize that it is important to provide as much
choice as possible regarding service providers. However, sometimes,
exclusive contracts allow for the provision of broadband service at a
much lower rate than would otherwise be available. HUD therefore
declines at this time to restrict housing providers' ability to enter
into limited service contracts, but would like to recommend caution for
public housing agencies (PHAs) considering exclusivity contracts.
Programs
Commenters were divided on whether HUD should include additional
programs beyond those in the proposed rule. Some wrote that HUD should
not include more programs. Others asked that HUD include all programs
providing housing assistance for low-income populations, which may make
the regulation easier to enforce in general. Commenters also stated
that HUD should include all multifamily
[[Page 92631]]
programs, while reconsidering including Continuum of Care (CoC)
programs, as they help with shelter needs, not long-term housing
solutions.
HUD Response: The number of HUD programs that provide for new
construction and substantial rehabilitation has not expanded greatly
over the years. HUD's Choice Neighborhoods program was the successor to
HUD's HOPE VI program. HUD's Housing Trust Fund program is a new
program that provides, among other things, for the production of
affordable housing. If future HUD programs, whether existing or new,
provide for the new construction or substantial rehabilitation of
multifamily rental housing, HUD will incorporate these requirements
into those programs. In addition, CoC funds long-term housing solutions
as well as temporary housing solutions. Therefore, HUD finds it
appropriate to include broadband infrastructure in these projects.
Sanctions
Commenters suggested some sanctions HUD could consider. Some stated
that HUD should fine owners for inappropriate use of exemptions from
the requirements, perhaps using the funds for digital literacy
programs. Commenters stated that HUD could, in egregious cases,
disqualify recipients from future HUD funding. Other commenters
suggested that instead of sanctions, HUD could require funding
recipients to develop ways to bring the Internet to a project's
residents.
HUD Response: For every HUD program, there are corrective and
remedial actions available to HUD for funding recipients who do not
follow their regulatory requirements. These corrective and remedial
actions vary among programs, depending on existing statutory and
regulatory authority. At this time, developing additional program-
specific remedies is outside the scope of this rulemaking. However, in
the event that a funding recipient does not follow the requirements of
this rule, HUD will use the options currently available to pursue such
violations.
Substantial Rehabilitation
Commenters suggested that HUD reconsider applying the requirements
to substantial rehabilitation projects. Others suggested that HUD
expand the definition to include other trigger activities, such as
updating or replacing coaxial cables, installing fiber optics, or
installing Ethernet. Commenters stated that the definition of
substantial rehabilitation should not include the electrical system
standard, because work on electrical systems does not always translate
easily into providing broadband infrastructure.
Commenters addressed HUD's question about how to determine whether
a rehabilitation project rises to the level of substantial
rehabilitation. Some stated that HUD should rely on pre-rehabilitation
cost estimates because, if there are unexpected expenses that take the
project over the substantial rehabilitation threshold, adding broadband
requirements on top of those expenses may be too much for the project.
However, other comments stated that HUD should use actual costs to
judge the substantial threshold.
Commenters also asked how the standard applies to scattered sites,
where only a single unit or a few units are being renovated.
HUD Response: HUD believes that it is important to include
substantial rehabilitation in this rule to maximize the number of
families who can benefit from the rule, while minimizing costs as much
as possible. In addition, HUD believes that maintaining the electrical
system standard as one way to determine substantial rehabilitation is
appropriate, as such work would likely result in exposing a building's
basic infrastructure in such a way as to allow for the installation of
broadband infrastructure.
HUD appreciates the responses to the question about which
construction costs to use when determining whether or not work rises to
the level of substantial rehabilitation. HUD has decided that the
percentage-of-cost threshold for substantial rehabilitation should be
based on the pre-rehabilitation cost estimates, and this has been
incorporated into the substantial rehabilitation definition.
Because this rule only affects structures with more than 4 rental
units, scattered-site housing with fewer than 4 rental units is not
covered by the rule.
Additional HUD Support for Broadband
Commenters stated that HUD should couple the rule with additional
support for subsidies and digital literacy programs, including treating
the provision of broadband service as an eligible expenditure in
affordable rental housing. Others asked for additional funding for the
infrastructure costs themselves. Commenters further stated that HUD
could leverage its size and buying power to secure broadband service at
lower prices. Some suggested that HUD should explore additional
subsidies to use ``white space'' in the over-air spectrum in rural
areas for wireless Internet or to subsidize seniors or families with
children.
Commenters also suggested that HUD should coordinate with the
United States Department of Agriculture (USDA) to work with ``last
mile'' connection issues.
HUD Response: This rule, and HUD's broadband rule providing for
assessing Internet service needs in the consolidated planning process,
are not HUD's final responses to narrowing the digital divide. Through
HUD's ConnectHome initiative, HUD is striving to narrow the digital
divide in the housing arena. In addition, HUD has and will continue to
work with other Federal agencies, such as the USDA and the National
Telecommunications and Information Administration.
HUD encourages funding recipients to make their own connections
with other programs, or to establish local requirements to accomplish
these goals. HUD will continue to seek out opportunities to foster such
partnerships at the national and local level. Several HUD programs can
be used to pay for such complementary services, and HUD encourages
funding recipients to leverage those resources. HUD will also continue
to explore ways to expand the eligibility of such complementary
services and for infrastructure work in HUD programs. However,
Congress, not HUD, establishes program funding levels, so we are unable
to provide additional programmatic funds at this time.
Other Comments
Commenters asked HUD to expand the scope of the rule beyond new
construction and substantial rehabilitation to also include existing
facilities. Commenters also disagreed with HUD's encouragement to
deploy competing infrastructure or delivery mechanisms.
HUD Response: As noted in responses above, this rule and its
companion broadband rule regarding the consolidated planning process
are not HUD's final responses to narrowing the digital divide. HUD is
continuing to examine other areas for which HUD has authority and
oversight to determine whether there are other avenues HUD can take to
narrow the digital divide. At this time, however, it is outside the
scope of this rulemaking to require funding recipients to retrofit
existing buildings with broadband infrastructure unless rehabilitation
work is being undertaken with HUD program funding.
[[Page 92632]]
V. 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. This rule was determined to be a ``significant
regulatory action'' as defined in section 3(f) of Executive Order 12866
(although not an economically significant regulatory action, as
provided under section 3(f)(1) of the Executive Order).
As discussed, this rule furthers HUD's efforts to narrow the
digital divide in low-income communities served by HUD. Specifically,
HUD is requiring installation of broadband infrastructure at the time
of new construction or substantial rehabilitation of multifamily rental
housing that is funded by HUD. As noted in the Executive Summary, the
costs and benefits of this rule are difficult to quantify, but they can
be described qualitatively.
A. Benefits
The benefits of narrowing the digital divide are well documented.
In just one example, a study conducted by a former chair of the
President's Council of Economic Advisers used data on the amount of
time Internet users spend online to estimate that Internet access
produces thousands of dollars of consumer surplus per user each
year.\9\ As noted above, however, the benefits of Internet technology
have not been evenly distributed and research shows that there remain
substantial disparities in both Internet use and the quality of access.
This digital deficit is generally concentrated among older, less
educated, and less affluent populations,\10\ as well as in persons with
disabilities.\11\
---------------------------------------------------------------------------
\9\ Council of Economic Advisers July 2015 report, supra, citing
Austan Goolsbee and Peter J. Klenow, Valuing Consumer Products by
the Time Spent Using Them: An Application to the Internet National
Bureau of Economic Research Working Paper No. 11995 (February 2006)
available online at: https://www.nber.org/papers/w11995.
\10\ Ibid.
\11\ Eve Hill, Department of Justice, Testimony before the
Senate Committee on Health, Education, Labor, and Pensions (February
7, 2012), available online at https://www.justice.gov/sites/default/files/testimonies//attachments/02/07/12/02-07-12-crt-hill-testimony.pdf.
---------------------------------------------------------------------------
Additionally, individuals with vision, learning, and physical
disabilities affecting manual dexterity rely on assistive technologies
to interact with computers and the Internet, and such technologies
function best on broadband Internet. Without access to broadband
infrastructure, these individuals may have limited access to basic
services that are now offered online.
HUD recognizes that the rule's limited scope in only requiring the
installation of infrastructure, instead of providing Internet access,
also limits the benefits of the rule. Specifically, the benefit of the
rule is that where broadband Internet can be made available at a
limited price, the tenants, residing in housing with broadband
infrastructure, will be assured of the ability to access broadband
Internet service, whether they choose and are able to afford Internet
service or not. This rule, therefore, would put broadband Internet
service within reach where other charitable and public social programs,
including HUD's ConnectHome program, provide free or reduced-cost
service.
B. Costs
It is not possible to specify the exact costs that recipients and
owners may incur as a result of the rule, given the variety of
available technologies that may be used to satisfy the new broadband
requirements. However, available data indicate that any costs
associated with this rule will be minimal.
As is displayed on Table I, broadband Internet access can be
provided using two general technologies: Wired and wireless, each with
several specific technologies. Broadband can be delivered over wired
lines using very-high-bit-rate digital subscriber lines (VDSL), cable
lines, power lines (BPL), or fiber optic platforms. Using wireless
technologies, broadband can be provided using satellite, fixed
wireless, mobile wireless, and Wi-Fi platforms.
Table I--Types of Broadband Technologies
----------------------------------------------------------------------------------------------------------------
Access requirement
-------------------------------------------------
Platform Connection type Not part of
Part of infrastructure infrastructure
----------------------------------------------------------------------------------------------------------------
Wired:
Digital Subscriber Line (VDSL)... Copper wire............ Yes.................... Router & Modem.
Cable Modem...................... Copper wire............ Yes.................... Router & Modem.
Fiber............................ Fiber Optic wire....... Yes.................... Router & Modem.
Broadband over Power Lines (BPL). Copper wire............ Yes.................... Router & Modem.
Wireless:
Satellite........................ Over the Air--satellite None................... Router & Modem.
Fixed Wireless................... Over the Air--Longer None................... Router & Modem.
Range Directional
Equipment.
Mobile Wireless.................. Over the Air--Cellular. None................... Router & Modem.
Wireless Fidelity (Wi-Fi)........ Over the Air--Short- None................... Router & Modem.
Range Wireless
Technology.
----------------------------------------------------------------------------------------------------------------
Whereas wired lines technologies may require some sort of physical
infrastructure consisting of internal wiring within the dwelling unit,
wireless technologies do not require any additional physical
infrastructure
[[Page 92633]]
within the building. With wireless technology, the signal travels
through the air to the customer, who uses a connection technology, such
as a modem, to access the services. For wireless technologies, the
infrastructure cost to the property boundary (connection to the service
provider) is nil ($0.00). However, the availability of wireless
broadband service is limited and evolving, so HUD expects many builders
will install wired broadband infrastructure to ensure that the
requirements of this rule are met.
Building costs of installing wired infrastructure are limited to
in-dwelling wiring, as this is all that is required by the rule. Within
the unit or the building, the electrical work consists of running cable
(meeting the requirements of category (Cat) 5e or Cat 6 wire),
installing jacks and plates, and minor construction work (such as
drilling and patching walls). Fiber optic cables are rarely run in the
dwelling unit but are installed by the service provider outside the
unit; the non-fiber optic wiring then makes broadband accessible within
the unit. Depending on the market, some of the cost is also borne by
the service provider.
The average per-unit cost for wiring for broadband Internet is
approximately $200 (see Table II). These costs are simply estimates of
one method of complying with the requirements of the rule. Labor costs
will also vary based on the region and whether the installation is
being done as part of substantial rehabilitation or new construction.
At most, installation of broadband infrastructure may reduce the
provision of other amenities or nonessential finishes, but even these
reductions are considered unlikely.
---------------------------------------------------------------------------
\12\ https://www.homewyse.com/services/cost_to_install_electrical_wiring.html.
Table II--Sample Cost to Install Electrical Wiring (1 Wiring) 12
----------------------------------------------------------------------------------------------------------------
Item Quantity Low High
----------------------------------------------------------------------------------------------------------------
Electrical Wiring Labor (Hours)--Labor 2.1 hours.................... $160.07 $205.10
estimate to install electrical wiring,
route, secure, and connect new NMB-B
wiring run for single receptacle, up to a
40' run. Includes planning, equipment, and
material acquisition, area preparation and
protection, setup, and cleanup.
Electrical Wiring Materials and Supplies-- 1 Wiring (unit).............. 20.00 25.00
Cost of related materials and supplies
typically required to install electrical
wiring including connectors, fittings, and
mounting hardware.
--------------------------------------------------------------------
Total Costs (1 Wiring)................. ............................. 180.07 230.10
----------------------------------------------------------------------------------------------------------------
HUD also notes that the rule is drafted so as to minimize the costs
of the new installation requirements. For example, the rule does not
mandate any rehabilitation or construction, and the decision to
undertake such activities appropriately remains with recipients and
owners. Rather, the scope of the regulatory changes is limited to
requiring the installation of broadband infrastructure if the recipient
or owner elects to undertake new construction or substantial
rehabilitation. The rule minimizes the economic impacts on recipients
and owners by recognizing that the installation of broadband
infrastructure is generally less burdensome and costly at the time of
new construction or substantial rehabilitation than when such
installation is undertaken as a stand-alone effort.
Moreover, this rule only requires the installation of broadband
infrastructure that is ``accessible'' in each unit. The rule does not
require recipients or owners to provide a regular subscription to
broadband Internet service (even at a cost) to residents. Also
minimizing the economic costs of the regulatory changes is the fact
that the definition of broadband infrastructure includes cable
television, fiber optic cabling, and wireless infrastructure providing
appropriate broadband connectivity to the individual units. As
discussed above in this Executive Summary, multifamily HUD or standard-
market new construction typically provides telephone landline and cable
TV connectivity. Further, HUD's competitive grants for new construction
under the Choice Neighborhoods program have, in recent years, sought
the provision of broadband.
A review of HUD internal databases, summarized on Table III, shows
that, in 2013, 58,677 units within the targeted programs were newly
constructed or rehabilitated. However, HUD's data did not contain
specific information to be able to determine how many of the units that
underwent rehabilitation met the definition of ``substantial
rehabilitation'' contained in the rule, so the number of affected units
would be smaller than is contained in the table. In addition, data on
affected units newly constructed using CDBG funding are unavailable, as
grantee reports do not separate multifamily from single-unit new
construction.
Table III--HUD-Assisted New Construction and Substantial Rehabilitation
--------------------------------------------------------------------------------------------------------------------------------------------------------
HOME
Sec. 8 RAD 811 PRAC 202 PRAC Sec. 8 202 HOPE VI PIH CDBG Rental Totals
--------------------------------------------------------------------------------------------------------------------------------------------------------
New Construction
--------------------------------------------------------------------------------------------------------------------------------------------------------
2012........................................ .......... 506 2,405 .......... 146 703 .......... .......... ..........
2013........................................ 110 583 2,034 .......... 44 297 .......... 19,424 22,492
2014........................................ 100 482 1,592 .......... .......... .......... .......... 11,596 ..........
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rehabilitation
--------------------------------------------------------------------------------------------------------------------------------------------------------
2012........................................ .......... .......... 25 .......... .......... 36 .......... .......... ..........
[[Page 92634]]
2013........................................ 199 15 .......... 109 .......... 16 20,918 14,928 36,185
2014........................................ .......... 28 15 .......... .......... .......... 15,716 6,965 ..........
-----------------------------------------------------------------------------------------------------------
FY 2013 Totals.......................... .......... .......... .......... .......... .......... .......... .......... .......... 58,677
--------------------------------------------------------------------------------------------------------------------------------------------------------
Further, a review found that multifamily (5-plus units) HUD or
standard-market new construction typically provides telephone landlines
and many provide cable TV connectivity.\13\ A recent survey by the
National Association of Homebuilders found that just 4 percent of the
surveyed multifamily housing developers did not install landline wires
and jacks in multifamily units completed in the past 12
months.14 15 In recent years, HUD's competitive grants for
new construction under the Choice Neighborhoods program have required
the provision of broadband.\16\ Therefore, this rule simply codifies
what is considered common practice in at least one program.
---------------------------------------------------------------------------
\13\ For example, under ``Class 4 Low Average Quality'' the
Craftsman 2015 National Building Cost Manual lists cable TV as a
standard feature. Only ``Class 5'' minimum quality does not list
cable or a computer network as a standard feature. All electrical
work is estimated to be 10 percent of project cost. 2015 National
Building Cost Manual, supra, p. 19.
\14\ NAHB, Multifamily Market Survey, supra.
\15\ Note that HUD's definition of accessibility is more
restrictive than the FCC's because HUD considers only the building
itself.
\16\ United States Department of Housing and Urban Development.
``Choice Neighborhoods Planning Grants Notice of Funding
Availability,'' supra, p. 32. ``Broadband Access. All FY2014 and
FY2015 Implementation Grantees will be required, as part of their
Transformation Plan, to include infrastructure that permits unit-
based access to broadband Internet connectivity in all new units.
Grantees may use Choice Neighborhoods funds to provide unit-based
broadband Internet connectivity, which includes the costs of
installing broadband infrastructure and hardware in units, but not
the costs of Internet service for residents. Regular and informed
Internet adoption can increase access to the job market, as well as
health, education, financial and other services. Further, in-home
broadband Internet access is an attractive, and in most cases,
standard amenity that can be used to market the mixed-income
community created through the Transformation Plan.''
---------------------------------------------------------------------------
Accordingly, most recipients and owners already meet the standards
established in the rule, and the new regulatory requirements will
impose minimal, if any, new economic costs. HUD has addressed those
rare situations where the new requirements may prove too costly by
allowing exceptions to the installation requirements where the
installation is documented to be economically infeasible due to
location or building characteristics.
The docket file is available for public inspection online at
www.regulations.gov under the docket number and title of this rule.
Impact on Small Entities
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
This rule provides that for new construction or substantial
rehabilitation of multifamily rental housing funded by HUD, as part of
the new construction or substantial rehabilitation to be undertaken,
such activity must include installation of broadband infrastructure.
None of the programs covered by this rule require a funding recipient
to undertake new construction or substantial rehabilitation. Instead,
new construction and substantial rehabilitation are eligible activities
that funding recipients may take using HUD funds. Therefore, small
entities will not incur any costs they would not otherwise incur by
voluntarily undertaking new construction or substantial rehabilitation,
since the costs of these activities, including the installation of
broadband infrastructure, are funded by HUD. For these reasons, this
rule will not have a significant economic impact on a substantial
number of small entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This rule will not impose any Federal mandates on
any State, local, or tribal governments or the private sector within
the meaning of the UMRA.
Paperwork Reduction Act
The information collection requirements contained in this rule were
submitted to OMB under the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520) for review and approval and are pending or are covered by
OMB control numbers 2577-0269, 2577-0191, 2506-0165, 2506-0077, 2506-
0085, 2506-0170, 2506-0199, 2506-0171, 2506-0133, 2577-0169, 2577-0157,
2502-0587, 2502-0612, 2502-0462, and 2502-0608. 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 was made at the proposed rule stage in accordance with HUD
regulations in 24 CFR part 50 that implement section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). That
FONSI remains applicable to this final rule and is available for public
inspection online at www.regulations.gov under the docket number and
title of this rule.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on State and local
governments and is not required by statute, or the rule 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 nor preempts State law within the meaning
of the Executive order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers applicable to
the programs that would be affected by this rule are: 14.218, 14.225,
14.228, 14.239, 14.241, 14.267, 14.850, 14.871, and 14.872.
[[Page 92635]]
List of Subjects
24 CFR Part 5
Administrative practice and procedure, Aged, Claims, Crime,
Government contracts, Grant programs-housing and community development,
Individuals with disabilities, Intergovernmental relations, Loan
programs-housing and community development, Low and moderate income
housing, Mortgage insurance, Penalties, Pets, Public housing, Rent
subsidies, Reporting and recordkeeping requirements, Social security,
Unemployment compensation, Wages.
24 CFR Part 92
Administrative practice and procedure, Low and moderate income
housing, Manufactured homes, Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 93
Administrative practice and procedure, Grant programs-housing and
community development, Low and moderate income housing, Manufactured
homes, Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 570
Administrative practice and procedure, American Samoa, Community
development block grants, Grant programs-education, Grant programs-
housing and community development, Guam, Indians, Loan programs-housing
and community development, Low and moderate income housing, Northern
Mariana Islands, Pacific Islands Trust Territory, Puerto Rico,
Reporting and recordkeeping requirements, Student aid, Virgin Islands.
24 CFR Part 574
Community facilities, Grant programs-housing and community
development, Grant programs-social programs, HIV/AIDS, Low and moderate
income housing, Reporting and recordkeeping requirements.
24 CFR Part 578
Community development, Community facilities, Grant programs-housing
and community development, Grant programs-social programs, Homeless,
Reporting and recordkeeping requirements.
24 CFR Part 880
Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 881
Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 883
Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 884
Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements, Rural areas.
24 CFR Part 886
Grant programs-housing and community development, Lead poisoning,
Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 891
Aged, Grant programs-housing and community development, Individuals
with disabilities, Loan programs-housing and community development,
Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 905
Grant programs-housing and community development, Public housing,
Reporting and recordkeeping requirements.
24 CFR Part 983
Grant programs-housing and community development, Low and moderate
income housing, Rent subsidies, Reporting and recordkeeping
requirements.
Accordingly, for the reasons stated in the preamble, HUD amends 24
CFR parts 5, 92, 93, 570, 574, 578, 880, 881, 883, 884, 886, 891, 905,
and 983 as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
0
1. The authority citation for part 5 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437n, 3535(d), Sec.
327, Pub. L. 109-115, 119 Stat. 2936, Sec. 607, Pub. L. 109-162, 119
Stat. 3051, E.O. 13279, and E.O. 13559.
0
2. In Sec. 5.100, add the definitions of ``Broadband infrastructure''
and ``Substantial rehabilitation'' in alphabetical order, to read as
follows:
Sec. 5.100 Definitions.
* * * * *
Broadband infrastructure means cables, fiber optics, wiring, or
other permanent (integral to the structure) infrastructure, including
wireless infrastructure, that is capable of providing access to
Internet connections in individual housing units, and that meets the
definition of ``advanced telecommunications capability'' determined by
the Federal Communications Commission under section 706 of the
Telecommunications Act of 1996 (47 U.S.C. 1302).
* * * * *
Substantial rehabilitation, for the purposes of determining when
installation of broadband infrastructure is required as part of
substantial rehabilitation of multifamily rental housing, unless
otherwise defined by a program, means work that involves:
(1) Significant work on the electrical system of the multifamily
rental housing. ``Significant work'' means complete replacement of the
electrical system or other work for which the pre-construction cost
estimate is equal to or greater than 75 percent of the cost of
replacing the entire electrical system. In the case of multifamily
rental housing with multiple buildings with more than 4 units, ``entire
system'' refers to the electrical system of the building undergoing
rehabilitation; or
(2) Rehabilitation of the multifamily rental housing in which the
pre-construction estimated cost of the rehabilitation is equal to or
greater than 75 percent of the total estimated cost of replacing the
multifamily rental housing after the rehabilitation is complete. In the
case of multifamily rental housing with multiple buildings with more
than 4 units, the replacement cost must be the replacement cost of the
building undergoing rehabilitation.
* * * * *
PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM
0
3. The authority citation for part 92 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 12701-12839.
0
4. Amend Sec. 92.251 by revising the introductory text of paragraph
(a)(2) and adding paragraphs (a)(2)(vi) and (b)(1)(x) to read as
follows:
Sec. 92.251 Property standards.
(a) * * *
(2) HUD requirements. All new construction projects must also meet
the requirements described in this paragraph:
* * * * *
(vi) Broadband infrastructure. For new commitments made after
January 19, 2017 for a new construction housing project of a building
with more than 4
[[Page 92636]]
rental units, the construction must include installation of broadband
infrastructure, as this term is defined in 24 CFR 5.100, except where
the participating jurisdiction determines and, in accordance with Sec.
92.508(a)(3)(iv), documents the determination that:
(A) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing the infrastructure would result in a
fundamental alteration in the nature of its program or activity or in
an undue financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. For new commitments made after
January 19, 2017 for a substantial rehabilitation project of a building
with more than 4 rental units, any substantial rehabilitation, as
defined in 24 CFR 5.100, must provide for installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the participating jurisdiction determines and, in accordance with
Sec. 92.508(a)(3)(iv), documents the determination that:
(A) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(C) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
* * * * *
PART 93--HOUSING TRUST FUND
0
5. The authority citation for part 93 continues to read as follows:
Authority: 42 U.S.C. 3535(d), 12 U.S.C. 4568.
0
6. Amend Sec. 93.301 by revising the introductory text of paragraph
(a)(2) and adding paragraphs (a)(2)(vi) and (b)(1)(x) to read as
follows:
Sec. 93.301 Property standards.
(a) * * *
(2) HUD requirements. All new construction projects must also meet
the requirements described in this paragraph:
* * * * *
(vi) Broadband infrastructure. For new commitments made after
January 19, 2017 for a new construction housing project of a building
with more than 4 rental units, the construction must include
installation of broadband infrastructure, as this term is defined in 24
CFR 5.100, except where the grantee determines and, in accordance with
Sec. 93.407(a)(2)(iv), documents the determination that:
(A) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. For new commitments made after
January 19, 2017 for a substantial rehabilitation project of a building
with more than 4 rental units, any substantial rehabilitation, as
defined in 24 CFR 5.100, must provide for installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the grantee determines and, in accordance with Sec.
93.407(a)(2)(iv), documents the determination that:
(A) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(C) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
* * * * *
PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS
0
7. The authority citation for part 570 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 5301-5320.
0
8. In Sec. 570.202, add paragraph (g) to read as follows:
Sec. 570.202 Eligible rehabilitation and preservation activities.
* * * * *
(g) Broadband infrastructure. Any substantial rehabilitation, as
substantial rehabilitation is defined by 24 CFR 5.100, of a building
with more than 4 rental units, for which CDBG funds are first obligated
by the recipient on or after April 19, 2017, must include installation
of broadband infrastructure, as this term is also defined in 24 CFR
5.100, except where the recipient determines and, in accordance with
Sec. 570.506, documents the determination that:
(1) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
9. In Sec. 570.204 add paragraph (a)(5) to read as follows:
Sec. 570.204 Special activities by Community-Based Development
Organizations (CBDOs).
(a) * * *
(5) Any new construction or substantial rehabilitation, as
substantial rehabilitation is defined by 24 CFR 5.100, of a building
with more than 4 rental units, for which CDBG funds are first obligated
by the recipient on or after April 19, 2017, must include installation
of broadband infrastructure, as this term is also defined in 24 CFR
5.100, except where the recipient determines and, in accordance with
Sec. 570.506, documents the determination that:
(i) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(ii) The cost of installing broadband infrastructure would result
in a fundamental alteration in the nature of its program or activity or
in an undue financial burden; or
(iii) The structure of the housing to be substantially
rehabilitated makes installation of broadband infrastructure
infeasible.
* * * * *
0
10. Add paragraph (c)(5) to Sec. 570.482 to read as follows:
Sec. 570.482 Eligible activities.
* * * * *
(c) * * *
(5) Broadband infrastructure in housing. Any new construction or
substantial rehabilitation, as substantial rehabilitation is defined by
24 CFR 5.100, of a building with more than 4 rental units, for which
CDBG funds are first obligated by the State's grant recipient on or
after July 18, 2017, must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the State or the State's grant recipient determines and documents
the determination that:
(i) The location of the new construction or substantial
[[Page 92637]]
rehabilitation makes installation of broadband infrastructure
infeasible;
(ii) The cost of installing broadband infrastructure would result
in a fundamental alteration in the nature of its program or activity or
in an undue financial burden; or
(iii) The structure of the housing to be substantially
rehabilitated makes installation of broadband infrastructure
infeasible.
* * * * *
0
11. In Sec. 570.506, redesignate paragraph (c) as paragraph (c)(1) and
add a new paragraph (c)(2) to read as follows:
Sec. 570.506 Records to be maintained.
* * * * *
(c) * * *
(2) Where applicable, records which either demonstrate compliance
with the requirements of Sec. 570.202(g) or Sec. 570.204(a)(5) or
document the State's or State's grant recipient's basis for an
exception to the requirements of those paragraphs.
* * * * *
PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
0
12. The authority citation for part 574 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 12901-12912.
0
13. Add Sec. 574.350 to subpart D to read as follows:
Sec. 574.350 Additional standards for broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 574.3, of a building with more than
4 rental units, for which HOPWA funds are first obligated by the
grantee or project sponsor on or after January 19, 2017 must include
installation of broadband infrastructure, as this term is defined in 24
CFR 5.100, except where the grantee or project sponsor determines and,
in accordance with Sec. 574.530, documents the determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 578--CONTINUUM OF CARE PROGRAM
0
14. The authority citation for part 578 continues to read as follows:
Authority: 42 U.S.C. 11371 et seq., 42 U.S.C. 3535(d).
0
15. In Sec. 578.45, add paragraph (d) to read as follows:
Sec. 578.45 Rehabilitation.
* * * * *
(d) Broadband infrastructure. Any substantial rehabilitation, as
defined by 24 CFR 5.100, of a building with more than 4 rental units
and funded by a grant awarded after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the grantee determines and, in accordance
with Sec. 578.103, documents the determination that:
(1) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
16. In Sec. 578.47, add paragraph (c) to read as follows:
Sec. 578.47 New construction.
* * * * *
(c) Broadband infrastructure. Any new construction of a building
with more than 4 rental units and funded by a grant awarded after
January 19, 2017 must include installation of broadband infrastructure,
as this term is defined in 24 CFR 5.100, except where the grantee
determines and, in accordance with Sec. 578.103, documents the
determination that:
(1) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden.
PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW
CONSTRUCTION
0
17. The authority citation for part 880 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and
13611-13619.
0
18. Add Sec. 880.212 to subpart B to read as follows:
Sec. 880.212 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and that is subject to a Housing Assistance Payments
contract executed or renewed after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner determines and documents the
determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR
SUBSTANTIAL REHABILITATION
0
19. The authority citation for part 881 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and
13611-13619.
0
20. Add Sec. 881.212 to subpart B to read as follows:
Sec. 881.212 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and that is subject to a Housing Assistance Payments
contract executed or renewed after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner determines and documents the
determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
[[Page 92638]]
PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE
HOUSING AGENCIES
0
21. The authority citation for part 883 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
0
22. Add Sec. 883.314 to subpart C to read as follows:
Sec. 883.314 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and that is subject to a Housing Assistance Payments
contract executed or renewed after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner determines and documents the
determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW
CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING
PROJECTS
0
23. The authority citation for part 884 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
0
24. Add Sec. 884.125 to subpart A to read as follows:
Sec. 884.125 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and that is subject to a Housing Assistance Payments
contract executed or renewed after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner determines and documents the
determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--SPECIAL
ALLOCATIONS
0
25. The authority citation for part 886 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
0
26. Add Sec. 886.140 to subpart A to read as follows:
Sec. 886.140 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and that is subject to a Housing Assistance Payments
contract executed or renewed after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner determines and documents the
determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
27. Add Sec. 886.340 to subpart C to read as follows:
Sec. 886.340 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and that is subject to a Housing Assistance Payments
contract executed or renewed after January 19, 2017 must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner determines and documents the
determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH
DISABILITIES
0
28. The authority citation for part 891 continues to read as follows:
Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.
0
29. In Sec. 891.120, add paragraph (f) to read as follows:
Sec. 891.120 Project design and cost standards.
* * * * *
(f) Broadband infrastructure. Any new construction or substantial
rehabilitation, as substantial rehabilitation is defined by 24 CFR
5.100, of a building with more than 4 rental units and funded by a
grant awarded after January 19, 2017 must include installation of
broadband infrastructure, as this term is also defined in 24 CFR 5.100,
except where the owner determines and documents the determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
30. Add Sec. 891.550 to subpart E to read as follows:
Sec. 891.550 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and funded by a grant awarded after January 19, 2017
must include installation of broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except where the owner determines and
documents the determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of
[[Page 92639]]
its program or activity or in an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
PART 905--THE PUBLIC HOUSING CAPITAL FUND PROGRAM
0
31. The authority citation for part 905 continues to read as follows:
Authority: 42 U.S.C. 1437g, 42 U.S.C. 1437z-2, 42 U.S.C. 1437z-
7, and 3535(d).
0
32. In Sec. 905.312, add paragraph (e) to read as follows:
Sec. 905.312 Design and construction.
* * * * *
(e) Broadband infrastructure. Any new construction or substantial
rehabilitation, as substantial rehabilitation is defined in 24 CFR
5.100, of a building with more than 4 rental units and funded by a
grant awarded or Capital Funds allocated after January 19, 2017 must
include installation of broadband infrastructure, as this term is also
defined in 24 CFR 5.100, except where the PHA determines and, in
accordance with Sec. 905.326, documents the determination that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be rehabilitated makes
installation of broadband infrastructure infeasible.
PART 983--PROJECT-BASED VOUCHER (PBV) PROGRAM
0
33. The authority citation for part 983 continues to read as follows:
Authority: 42 U.S.C. 1437f and 3535(d).
0
34. Add Sec. 983.157 to subpart D to read as follows:
Sec. 983.157 Broadband infrastructure.
Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 5.100, of a building with more than
4 rental units and where the date of the notice of owner proposal
selection or the start of the rehabilitation while under a HAP contract
is after January 19, 2017 must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the owner determines and documents the determination that:
(a) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(b) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(c) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
Dated: December 15, 2016.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2016-30708 Filed 12-19-16; 8:45 am]
BILLING CODE 4210-67-P
