Housing and Community Development Act of 1980: Verification of Eligible Status, 20589-20595 [2019-09566]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 84, Number 91 (Friday, May 10, 2019)]
[Proposed Rules]
[Pages 20589-20595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09566]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 84, No. 91 / Friday, May 10, 2019 / Proposed 
Rules

[[Page 20589]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 5

[Docket No. FR-6124-P-01]
RIN 2501-AD89


Housing and Community Development Act of 1980: Verification of 
Eligible Status

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would make two changes to HUD's regulations 
implementing section 214 of the Housing and Community Development Act 
of 1980, as amended (Section 214). Section 214 prohibits the Secretary 
of HUD from making financial assistance available to persons other than 
United States citizens or certain categories of eligible noncitizens in 
HUD's public and specified assisted housing programs. The proposed rule 
would require the verification of the eligible immigration status of 
all recipients of assistance under a covered program who are under the 
age of 62. As a result, the proposed rule would make prorated 
assistance a temporary condition pending verification of eligible 
status, as opposed to under the current regulation where it could 
continue indefinitely. The proposed rule would also specify that 
individuals who are not in eligible immigration status may not serve as 
the leaseholder, even as part of a mixed family whose assistance is 
prorated based on the percentage of members with eligible status. HUD 
believes the amendments will bring its regulations into greater 
alignment with the wording and purpose of Section 214.

DATES: Comment Due Date: July 9, 2019.

ADDRESSES: Interested persons are invited to submit comments to the 
Office of the General Counsel, Rules Docket Clerk, Department of 
Housing and Urban Development, 451 Seventh Street SW, Room 10276, 
Washington, DC 20410-0001. Communications should refer to the above 
docket number and title and should contain the information specified in 
the ``Request for Comments'' section. There are two methods for 
submitting public comments.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500. Due to security measures at all Federal 
agencies, however, submission of comments by mail often results in 
delayed delivery. To ensure timely receipt of comments, HUD recommends 
that comments by mail be submitted at least 2 weeks in advance of the 
public comment deadline.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
https://www.regulations.gov. HUD strongly encourages commenters to 
submit comments electronically. Electronic submission of comments 
allows the commenter maximum time to prepare and submit a comment, 
ensures timely receipt by HUD, and enables HUD to make comments 
immediately available to the public. Comments submitted electronically 
through the https://www.regulations.gov website can be viewed by other 
commenters and interested members of the public. Commenters should 
follow instructions provided on that site to submit comments 
electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
notice.

    No Facsimiled Comments. Facsimiled (faxed) comments are not 
acceptable.
    Public Inspection of Comments. All comments and communications 
submitted to HUD will be available for public inspection and copying 
between 8 a.m. and 5 p.m. weekdays at the above address. Due to 
security measures at the HUD Headquarters building, an advance 
appointment to review the public comments must be scheduled by calling 
the Regulations Division at (202) 708-3055 (this is not a toll-free 
number). Copies of all comments submitted are available for inspection 
and downloading at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: John Gibbs, Senior Advisor, Office of 
the Secretary, Department of Housing and Urban Development, 451 7th 
Street, SW, Room 10282, Washington, DC 20410; telephone number (202) 
402-4445 (this is not a toll-free number). Individuals with hearing or 
speech impediments may access this number via TTY by calling the 
Federal Relay, during working hours, at 1 (800) 877-8339 (this is a 
toll-free number).

SUPPLEMENTARY INFORMATION:

I. Section 214 of the Housing and Community Development Act of 1980

    Section 214 of the Housing and Community Development Act of 1980, 
as amended (42 U.S.C. 1436a) (Section 214) prohibits HUD from making 
certain financial assistance available to persons other than United 
States citizens or specified categories of eligible noncitizens. The 
Section 214 requirements apply to financial assistance provided under 
the following HUD programs (collectively referred to as Section 214 
covered programs):
    1. Section 235 of the National Housing Act (12 U.S.C. 1715z) (the 
Section 235 Program);
    2. Section 236 of the National Housing Act (12 U.S.C. 1715z-1) 
(tenants paying below market rent only) (the Section 236 Program);
    3. Section 101 of the Housing and Urban Development Act of 1965 (12 
U.S.C. 1701s) (the Rent Supplement Program); and
    4. The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) 
which covers: HUD's Public Housing programs, the Section 8 Housing 
Assistance programs, and the Housing Development Grant programs (with 
respect to low-income units only).\1\
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    \1\ 42 U.S.C. 1436a(b). Additional limitations on noncitizen 
eligibility are also found in the Personal Responsibility and Work 
Opportunity Act of 1996, 8 U.S.C. 1611(b)(1)(E).
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    Section 214 states that the ``Secretary [of HUD] may not provide . 
. . assistance for the benefit of . . . [an] individual before 
documentation [of eligible immigration status] is presented and 
verified.'' \2\ This is consistent with the statute's stated goal of 
ensuring that HUD's limited financial resources be used to aid families 
lawfully present in the United States, encompassing U.S. citizens and 
nationals, as well as

[[Page 20590]]

noncitizens with eligible immigration status as set forth in HUD 
regulations.\3\ However, Section 214 also contains several provisions 
to mitigate the potential impacts on the elderly and families. The 
Housing and Community Development Act of 1987 \4\ (1987 HCD Act) 
amended Section 214 to exempt individuals 62 years of age or older from 
the immigration status verification requirements.\5\ The 1987 HCD Act 
also amended Section 214 to authorize ``preservation assistance'' to 
prevent the separation of families already receiving assistance on 
``the date of enactment of the'' 1987 HCD Act (i.e., February 5, 1988). 
Specifically, Section 214 authorizes the continuation of assistance to 
such a family if ``necessary to avoid the division of the family'' and 
the head of household or spouse has eligible immigration status.\6\ 
Assistance to such families, however, ``may be provided only on a 
prorated basis, under which the amount of financial assistance is based 
on the percentage of the total number of [eligible] members.'' \7\ 
Section 214 also authorized the temporary deferral of termination of 
assistance for families receiving assistance on February 5, 1988, but 
who were ineligible for continued assistance on a prorated basis ``to 
permit the orderly transition of the individual and any family members 
involved to other affordable housing.'' \8\
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    \2\ 42 U.S.C. 1436a(d)(2).
    \3\ 42 U.S.C. 1436a(a).
    \4\ Public Law 100-242, enacted February 5, 1988.
    \5\ 42 U.S.C. 1436a(d)(2).
    \6\ 42 U.S.C. 1436a(c)(1)(A).
    \7\ Id.
    \8\ 42 U.S.C. 1436a(c)(1)(B)(i).
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II. HUD's Regulations Implementing Section 214

    HUD's original regulations implementing Section 214 were 
promulgated by final rule published on March 20, 1995, with an 
effective date of June 19, 1995.\9\ The 1995 final rule promulgated 
virtually identical noncitizens'' regulations for the various HUD 
programs covered by Section 214. On March 27, 1996,\10\ HUD published a 
final rule eliminating the repetitiveness of these duplicative 
regulations by consolidating the noncitizens requirements in a new 
subpart E to 24 CFR part 5 (captioned ``Restrictions on Assistance to 
Noncitizens''), where they continue to be codified at present.
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    \9\ 60 FR 14816.
    \10\ 61 FR 13614.
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    The preamble to the March 20, 1995, final rule stated that, for 
purposes of eligibility for preservation assistance, HUD considered the 
effective date of the final rule as the pivotal date rather than the 
date of enactment of the statute. As noted, the amendments to Section 
214 made by the 1987 HCD Act condition a family's eligibility for 
preservation assistance on the family's receipt of assistance on the 
date of the statute's enactment. HUD explained in the preamble to the 
1995 final rule that it had determined the provisions of Section 214 
too ``complex to be determined self-implementing as of the date of 
enactment of the 1987 HCD Act (February 5, 1988).'' Thus, HUD's 
regulations use the effective date of the March 20, 1995, final rule 
(June 19, 1995) as the relevant date for determining eligibility for 
preservation assistance.
    HUD's current regulations require that each family member applying 
for assistance under a Section 214 covered program either: (1) Submit a 
declaration declaring that he or she is a U.S. citizen, as defined in 
24 CFR 5.504(b), or a noncitizen with eligible immigration status \11\; 
or (2) elect not to contend eligible immigration status and, therefore, 
not submit documentation for verification.\12\ Family members who 
declare themselves eligible must provide the original of a document 
designated by the Department of Homeland Security (DHS) as acceptable 
evidence of immigration status \13\ and consent to transmittal of a 
copy of the document and the information contained on the document to 
DHS to verify whether the individual has eligible immigration 
status.\14\ Verification of the immigration status of the individual is 
provided through Systematic Alien Verification for Entitlements (SAVE), 
which is administered by DHS.\15\ SAVE verifies the immigration status 
information of noncitizens.
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    \11\ Sec.  5.508(c).
    \12\ Sec.  5.508(e).
    \13\ Sec.  5.510.
    \14\ Sec.  5.508(d)(2).
    \15\ In actuality, the regulations refer to the Immigration and 
Naturalization Service (INS), a predecessor agency to DHS.
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    The regulations require that financial assistance made available to 
a ``mixed family'' be prorated, based on the number of individuals in 
the family for whom eligibility has been affirmatively established.\16\ 
As noted, Section 214 provides for proration in the context of 
preservation assistance to mixed families grandfathered by the 1987 HCD 
Act. However, the amendments made by the 1987 HCD Act limited prorated 
continued assistance to families with a head of household or spouse in 
eligible immigration status. In contrast, HUD's current regulations do 
not require that the head of household or spouse have eligible 
immigration status in order for a mixed family to qualify for such 
assistance.
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    \16\ Sec.  5.516(a)(1)(iii).
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III. This Proposed Rule

    This proposed rule would make two changes to the noncitizens 
regulations in 24 CFR part 5, subpart E. Several factors have prompted 
HUD to reconsider its noncitizens regulations. On April 10, 2018, 
President Trump issued Executive Order 13828, titled ``Reducing Poverty 
in America by Promoting Opportunity and Economic Mobility.'' \17\ Among 
other provisions, section 2(e) of the Executive order provides that 
agencies should ``adopt policies to ensure that only eligible persons 
receive benefits and enforce all relevant laws providing that aliens 
who are not otherwise qualified and eligible may not receive 
benefits.'' Further, consistent with the Administration's regulatory 
reform efforts, HUD has undertaken a comprehensive review of its 
regulations to reduce unnecessary regulatory burdens, enhance the 
effectiveness of those regulations that are necessary, and promote 
principles underlying the rule of law, including ensuring the 
conformity of regulations with statutory mandates. HUD believes the 
proposed regulatory amendments are consistent with the principles of 
Executive Order 13828 and regulatory reform.\18\ The policy changes 
will bring HUD's regulations into greater alignment with the 
requirements of Section 214 and make the administrative process for 
verification uniform. The proposed amendments are discussed below:
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    \17\ The Executive order was subsequently published in the 
Federal Register on April 13, 2018 (83 FR 15942), and is available 
at: https://www.gpo.gov/fdsys/pkg/FR-2018-04-13/pdf/2018-07874.pdf.
    \18\ This proposed rule was also prompted by the March 6, 2017, 
Presidential Memorandum directing ``[t]he heads of all relevant 
executive departments and agencies ``[to] issue new rules, 
regulations, or guidance (collectively, rules), as appropriate, to 
enforce laws relating to such grounds of inadmissibility and 
subsequent compliance.'' Although the Presidential Memorandum is 
focused on the admissibility of aliens into the United States rather 
than programs of assistance, the proposed regulatory changes are 
consistent with the directives of the memorandum. See Implementing 
Immediate Heightened Screening and Vetting of Applications for Visas 
and Other Immigration Benefits, Ensuring Enforcement of All Laws for 
Entry Into the United States, and Increasing Transparency Among 
Departments and Agencies of the Federal Government and for the 
American People, 82 FR 16279 (April. 3, 2017), available at https://www.gpo.gov/fdsys/pkg/FR-2017-04-03/pdf/2017-06702.pdf.
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    1. Verification of eligible immigration status. The first proposed 
amendment would require that the eligible immigration status of all 
recipients of assistance under a Section 214 covered

[[Page 20591]]

program who are under the age of 62 be verified through SAVE.
    As noted, the regulations presently excuse individuals from 
submitting documentation if they do not contend to having eligible 
immigration status. This results in no actual determination of 
immigration status being made. The language of Section 214, however, 
contemplates that HUD assistance under a covered program will generally 
be contingent on verification of eligible immigration status. While 
Congress recognized that exceptions to this general verification 
requirement might be warranted in some cases, this statutory exception 
is narrowly tailored to individuals 62 years of age or older 
participating in Section 214 covered programs. In contrast, the ``do 
not contend'' provision of the regulation is more broadly applicable to 
all program participants. The proposed change will better conform HUD's 
regulations to the statutory language of Section 214.
    Under the proposed amendment to the rule, a current participant in 
a Section 214 covered program (with the exception of Section 235 
assistance payments) who has not previously submitted evidence of 
eligible immigration status, will be required to do so at the first 
regular reexamination after the effective date of HUD's final rule for 
this rulemaking. This typically occurs on an annual basis. For 
financial assistance in the form of Section 235 assistance payments, 
the mortgagor would be required to submit the required evidence in 
accordance with requirements imposed under the Section 235 Program. The 
proposed amendment to the rule would not change the timing of 
verification for new applicants to a Section 214 covered program.
    2. Leaseholder eligibility. The second proposed regulatory 
amendment would specify that individuals who are not verified in an 
eligible immigration status may not serve as the head of household or 
spouse (i.e., the holder of the lease). As with the prior change, HUD 
believes this amendment better reflects the statutory requirements of 
Section 214. In addition, it will better assure that the person who is 
legally obligated under the lease or other tenancy agreement has been 
through a uniform identity verification process that would better 
facilitate locating such person and bringing any necessary 
administrative or legal actions.
    Under the current regulations, the ``do not contend'' provision 
facilitates the indefinite use by a mixed family of prorated 
assistance. Further, it is possible under the current regulations for 
the holder of the lease to be ineligible under the Section 214 covered 
program for which the mixed family is receiving assistance. Upon 
reconsideration of its implementing regulations for Section 214, HUD 
believes that Section 214 requires that no financial assistance be 
provided to, or on behalf of, an individual if his or her eligible 
status has not been verified, except for such time that it takes to 
verify eligible status. In this respect, Section 214 generally provides 
that ``with respect to a family, the term ``eligibility'' means the 
eligibility of each family member.'' HUD believes that an individual 
without verified eligible status living in a mixed household receiving 
long-term prorated assistance is benefiting from HUD financial 
assistance in a way that is prohibited by Section 214. At the time of 
enactment of Section 214, verification was a manual, paper-driven 
process that could take days or even weeks to complete. Prorated 
assistance struck a balance with timely permitting assistance but 
providing an incentive to cooperate in timely completion. Today, 
verification through SAVE is almost instantaneous in most instances. 
Thus, prorated assistance should rarely be applicable and then of short 
duration. The ``do not contend'' provision is inconsistent with the 
statutory requirements insofar as it permits prorated assistance of 
unlimited duration.
    Further, HUD no longer agrees that a leaseholder, the individual 
who is contractually bound to the landlord and who holds conditional 
ownership of the unit for the lease term, can be exempted from having 
verified eligible immigration status at the outset of the tenancy and 
assistance. HUD believes that requiring the verified eligible 
immigration status of the head of household or spouse is more in 
keeping with the intent of Section 214 to limit eligibility to 
individuals with eligible immigration status, subject to limited 
exceptions, and consistent with HUD's existing treatment of 
leaseholders in its assisted housing programs.
    3. Technical nonsubstantive changes. In addition to the two 
substantive amendments discussed above, HUD has taken the opportunity 
afforded by the proposed rule to make a few technical, nonsubstantive 
changes to the regulations to further conform to Section 214 statutory 
requirements. These amendments update terminology and correct 
formatting. For example, the proposed rule would replace outdated 
references to the Immigration and Naturalization Service (INS) to refer 
to DHS.

IV. 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 the order (although not an economically 
significant regulatory action under the order). HUD has prepared a cost 
benefit analysis that addresses the costs and benefits of the proposed 
rule. The cost analysis is part of the docket file for this rule.
    The docket file is available for public inspection in the 
Regulations Division, Office of the General Counsel, Room 10276, 451 
7th Street SW, Washington, DC 20410-0500. Due to security measures at 
the HUD Headquarters building, please schedule an appointment to review 
the docket file by calling the Regulations Division at (202) 402-3055 
(this is not a toll-free number). Individuals with speech or hearing 
impairments may access this number via TTY by calling the Federal Relay 
at 1(800) 877-8339 (this is a toll-free number).

Environmental Impact

    The proposed rule does not direct, provide for assistance or loan 
and mortgage insurance for, or otherwise govern or regulate, real 
property acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction or establish, revise or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
proposed rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

[[Page 20592]]

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements, unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. The proposed 
regulatory amendments to HUD's noncitizen requirements will have only a 
minimal impact on small housing project owners, small mortgagees, and 
small housing agencies. The amendments would not require the creation 
of new procedures or impose significant additional costs on responsible 
entities. Rather, the requirements of the proposed rule could be 
satisfied using existing procedures. For example, the proposed rule 
would require that the eligible immigration status of all noncitizens 
be verified through SAVE. This requirement can be fulfilled by 
utilizing the existing verification procedures. Likewise, although the 
proposed rule would revise eligibility for prorated assistance, current 
methods would be used to calculate the prorated assistance provided to 
an eligible family.
    Notwithstanding HUD's determination that this rule will not have a 
significant effect on a substantial number of small entities, HUD 
specifically invites comments regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

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 preempts State law, 
unless the agency meets the consultation and funding requirements of 
section 6 of the Executive order. This proposed rule does not have 
federalism implications and does not impose substantial direct 
compliance costs on State and local governments nor preempt state law 
within the meaning of the Executive order.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
(UMRA) establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and on the private sector. This proposed rule does not 
impose a Federal mandate on any State, local, or tribal government, or 
on the private sector, within the meaning of UMRA.

List of Subjects in 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.

    Accordingly, for the reasons stated in the preamble, HUD proposes 
to amend 24 CFR part 5, subpart E as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

0
1. The authority citation for 24 CFR part 5 continues to read as 
follows:

    Authority: 12 U.S.C. 1701x; 42 U.S.C. 1437a, 1437c, 1437d, 
1437f, 1437n, 3535(d); Sec. 327, Pub. L. 109-115, 119 Stat. 2936; 
Sec. 607, Pub. L. 109-162, 119 Stat. 3051 (42 U.S.C. 14043e et 
seq.); E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 258; and E.O. 
13559, 75 FR 71319, 3 CFR, 2010 Comp., p. 273.

Subpart E--Restrictions on Assistance to Noncitizens

0
2. The authority citation for subpart E continues to read as follows:

    Authority: 42 U.S.C. 1436a and 3535(d).

0
3. Amend paragraph (b) of Sec.  5.504 by adding the definition of 
``DHS'' in alphabetical order and removing the definitions of ``INS'' 
and ``Mixed family'' to read as follows:


Sec.  5.504  Definitions.

* * * * *
    (b) * * *
    DHS means the Department of Homeland Security.
* * * * *
0
4. Revise Sec.  5.506(b) to read as follows:


Sec.  5.506  General provisions.

* * * * *
    (b) Family eligibility for assistance. (1) A family shall not be 
eligible for assistance unless every member of the family residing in 
the unit is determined to have eligible status, as described in 
paragraph (a) of this section, or unless the family meets the 
conditions set forth in either paragraph (b)(2) or (3) of this section.
    (2) Despite the ineligibility of one or more family members, a 
family that was receiving assistance under a Section 214 covered 
program on June 19, 1995, may be eligible for continued assistance, as 
provided in Sec. Sec.  5.516 and 5.518. If the family does not qualify 
for continued assistance, it may nonetheless be eligible for temporary 
deferral of termination of assistance as provided in Sec. Sec.  5.516 
and 5.518.
    (3) A family whose head of household or spouse has eligible 
immigration status is eligible for prorated assistance under Sec.  
5.520, pending final determinations on the eligibility of other family 
members.
* * * * *
0
5. Revise Sec.  5.508 to read as follows:


Sec.  5.508  Submission of evidence of citizenship or eligible 
immigration status.

    (a) General. Eligibility for assistance or continued assistance 
under a Section 214 covered program is contingent upon a family's 
submission, to the responsible entity, of the documents described in 
paragraphs (b), (c), and (d) of this section, as applicable, for each 
family member.
    (b) Evidence of citizenship or eligible immigration status. Each 
family member, regardless of age, must submit the following evidence to 
the responsible entity.
    (1) For U.S. citizens as defined in Sec.  5.504(b), the evidence 
consists of appropriate documentation, such as:
    (i) A U.S. birth certificate;
    (ii) A naturalization certificate;
    (iii) A Consular Report of Birth Abroad (FS-240);
    (iv) A valid unexpired U.S. passport;
    (v) A certificate of citizenship; or
    (vi) Other appropriate documentation, as specified in HUD guidance.
    (2) For noncitizens who are 62 years of age or older and were 
receiving assistance under a Section 214 covered program on September 
30, 1996, or who will be 62 years of age or older or applying for 
assistance on or after that date, the evidence consists of a proof of 
age document, as may be specified by HUD, and one of the following:
    (i) A Form I-551, Permanent Resident Card;
    (ii) Form I-94, Arrival/Departure Record;
    (iii) A foreign passport with I-551 stamp;
    (iv) A notice of approval of status or action from DHS; or
    (v) Other appropriate documentation specified by HUD.
    (3) For all other noncitizens, the evidence consists of:
    (i) A signed declaration of eligible immigration status (see 
paragraph (c) of this section);
    (ii) One of the DHS documents referred to in Sec.  5.510; and

[[Page 20593]]

    (iii) A signed verification consent form (see paragraph (d) of this 
section).
    (c) Declaration. (1) Each family member, regardless of age, must 
submit to the responsible entity a written declaration, signed under 
penalty of perjury, by which the family member declares he or she is a 
U.S. citizen as defined in Sec.  5.504(b) or a noncitizen with eligible 
immigration status set forth in Sec.  5.506(a)(2).
    (i) For each adult, the declaration must be signed by the adult.
    (ii) For each child, as defined in Sec.  5.504(b), the declaration 
must be signed by an adult residing in the assisted dwelling unit who 
is responsible for the child.
    (2) The written declaration may be incorporated as part of the 
application for housing assistance or may constitute a separate 
document.
    (d) Verification consent form--(1) Who signs. Each family member, 
regardless of age, (except certain noncitizens who are 62 years of age 
or older as described in paragraph (b)(2) of this section) must sign a 
verification consent form as follows:
    (i) For each adult, the form must be signed by the adult.
    (ii) For each child, the form must be signed by an adult residing 
in the assisted dwelling unit who is responsible for the child.
    (2) Notice of release of evidence by responsible entity. The 
verification consent form shall provide that evidence of eligible 
immigration status may be released by the responsible entity, without 
responsibility for the further use or transmission of the evidence by 
the entity receiving it, to:
    (i) HUD, as required by HUD; and
    (ii) DHS to verify the immigration status of the individual.
    (3) Notice of release of evidence by HUD. The verification consent 
form shall also notify the individual of the possible release of 
evidence of eligible immigration status by HUD. Evidence of eligible 
immigration status shall only be released to DHS for purposes of 
verifying the individual has eligible immigration status for financial 
assistance and not for any other purpose. HUD is not responsible for 
the further use or transmission of the evidence or other information by 
DHS.
    (e) Notification of requirements of Section 214--(1) When notice is 
to be issued. Notification of the requirement to submit evidence that 
the individual is a U.S. citizen, as defined in Sec.  5.504(b), or that 
individual has eligible immigration status, as required by this 
section, shall be given by the responsible entity as follows:
    (i) Applicant's notice. The notification shall be given to each 
applicant at the time of application for assistance.
    (ii) Notice to tenants. The notification shall be given to each 
tenant who has not submitted evidence of eligible status as of [insert 
effective date of final rule] at the time of, and together with, the 
responsible entity's notice of regular reexamination of income.
    (iii) Timing of mortgagor's notice. A mortgagor receiving Section 
235 assistance must be provided the notification and any additional 
requirements imposed under the Section 235 Program.
    (2) Form and content of notice. The notice shall:
    (i) State that financial assistance is contingent upon the 
submission and verification, as appropriate, of evidence that the 
individual is a U.S. citizen, as defined in Sec.  5.504(b), or has 
eligible immigration status;
    (ii) Describe the type of evidence that must be submitted, and 
state the time period in which that evidence must be submitted (see 
paragraph (f) of this section concerning when evidence must be 
submitted);
    (iii) State that assistance will be denied or terminated, as 
appropriate, upon a final determination of ineligibility after all 
appeals, if any, have been exhausted or, if appeals are not pursued, at 
a time to be specified in accordance with HUD requirements;
    (iv) State that assistance may be prorated, pursuant to Sec.  
5.520, to a family whose head of household or spouse has eligible 
immigration status, pending final determinations for other family 
members; and
    (v) Inform tenant's how to obtain assistance under the preservation 
of families provisions of Sec. Sec.  5.516 and 5.518.
    (f) When evidence of eligible status is required to be submitted. 
The responsible entity shall require evidence of eligible status to be 
submitted at the times specified in this paragraph (f), subject to any 
extension granted in accordance with paragraph (g) of this section.
    (1) Applicants. For applicants, responsible entities must ensure 
that evidence of eligible status is submitted not later than the date 
the responsible entity anticipates or has knowledge that verification 
of other aspects of eligibility for assistance will occur (see Sec.  
5.512(a)).
    (2) Tenants. A tenant who has not submitted evidence of eligible 
status as of [insert effective date of final rule] is required to 
submit such evidence as follows:
    (i) For financial assistance under a Section 214 covered program, 
with the exception of Section 235 assistance payments, the required 
evidence shall be submitted at the first regular reexamination after 
[insert effective date of final rule], in accordance with program 
requirements.
    (ii) For financial assistance in the form of Section 235 assistance 
payments, the mortgagor shall submit the required evidence in 
accordance with requirements imposed under the Section 235 Program.
    (3) New occupants of assisted units. For any new occupant of an 
assisted unit (e.g., a new family member comes to reside in the 
assisted unit), the required evidence shall be submitted at the first 
interim or regular reexamination following the person's occupancy.
    (4) Changing participation in a HUD program. Whenever a family 
applies for admission to a Section 214 covered program, evidence of 
eligible status is required to be submitted in accordance with the 
requirements of this subpart unless the family already has submitted 
the evidence to the responsible entity for a Section 214 covered 
program.
    (5) One-time evidence requirement for continuous occupancy. For 
each family member, the family is required to submit evidence of 
eligible status only one time during continuously assisted occupancy 
under any Section 214 covered program.
    (g) Extensions of time to submit evidence of eligible status--(1) 
When extension must be granted. The responsible entity shall extend the 
time, provided in paragraph (f) of this section, to submit evidence of 
eligible immigration status if the family member:
    (i) Submits the required declaration described in paragraph (c) of 
this section certifying that any person for whom required evidence has 
not been submitted is a noncitizen with eligible immigration status; 
and
    (ii) Certifies that the evidence needed to support a claim of 
eligible immigration status is temporarily unavailable, additional time 
is needed to obtain and submit the evidence, and prompt and diligent 
efforts will be undertaken to obtain the evidence.
    (2) Thirty-day extension period. Any extension of time, if granted, 
shall not exceed 30 days. The additional time provided should be 
sufficient to allow the individual the time to obtain the evidence 
needed. The responsible entity's determination of the length of the 
extension needed shall be based on the circumstances of the individual 
case.
    (3) Grant or denial of extension to be in writing. The responsible 
entity's

[[Page 20594]]

decision to grant or deny an extension shall be issued to the family by 
written notice. If the extension is granted, the notice shall specify 
the extension period granted (which shall not exceed 30 days). If the 
extension is denied, the notice shall explain the reasons for denial of 
the extension.
    (h) Failure to submit evidence or to establish eligible status. If 
the family fails to submit required evidence of eligible status within 
the time period specified in the notice, or any extension granted in 
accordance with paragraph (g) of this section, or if the evidence is 
timely submitted but fails to establish eligible immigration status, 
the responsible entity shall proceed to deny, or terminate, assistance 
or provide continued assistance or temporary deferral of termination of 
assistance, as appropriate, in accordance with the provisions of 
Sec. Sec.  5.514, 5.516, and 5.518.


Sec.  5.510  [Amended]

0
6. In Sec.  5.510(b), remove the reference to ``INS'' and add in its 
place ``DHS''.
0
7. Revise Sec.  5.512 to read as follows:


Sec.  5.512  Verification of eligible immigration status.

    (a) General. Except as described in Sec.  5.514, no individual or 
family applying for assistance may receive such assistance prior to the 
verification of the eligibility of at least the head of household or 
spouse. Verification of eligibility consistent with Sec.  5.514 occurs 
when the individual or family members have submitted documentation to 
the responsible entity in accordance with Sec.  5.508.
    (b) Initial verification--(1) Verification system. Verification of 
the immigration status of the person is conducted by the responsible 
entity through Systematic Alien Verification for Entitlements (SAVE), a 
DHS-administered system for the verification of immigration status. 
Initial verification in SAVE confirms immigration status using 
biographic information (first name, last name, and date of birth) and 
immigration numeric identifiers.
    (2) Failure of initial verification to confirm eligible immigration 
status. If SAVE is not initially able to confirm immigration status, 
then additional verification must be performed.
    (c) Additional verification. If the initial verification does not 
confirm eligible immigration status, or if initial verification 
confirms immigration status that is ineligible for assistance under a 
Section 214 covered program, the responsible entity must request 
additional verification within 10 days of receiving the results of the 
initial verification. Additional verification is initiated when the 
responsible entity submits an s additional request to SAVE with 
optional additional information and/or a copy of the original document 
that the noncitizen had presented as acceptable evidence of their 
immigration status to SAVE.
    (d) Failure to confirm eligible immigration status. If initial or 
additional verification does not confirm eligible immigration status, 
the responsible entity shall issue to the family the notice described 
in Sec.  5.514(d), which describes the process for seeking record 
correction with DHS if he or she believes the verification response was 
due to inaccurate DHS records.
    (e) Exemption from liability for DHS verification. The responsible 
entity shall not be liable for any action, delay, or failure of DHS in 
conducting initial or additional verification.
0
8. Amend Sec.  5.514 as follows:
0
a. Revise paragraphs (b)(1), (c), and (d); and
0
b. In paragraphs (e), (f), and (h), remove the reference to ``INS'' 
everywhere it appears and add in its place ``DHS''.
    The revisions read as follows:


Sec.  5.514  Delay, denial, reduction or termination of assistance.

* * * * *
    (b) Restrictions on delay, denial, reduction or termination of 
assistance--(1) Restrictions on reduction, denial or termination of 
assistance for applicants and tenants. Assistance to an applicant or 
tenant shall not be delayed, denied, reduced, or terminated, on the 
basis of ineligible immigration status of a family member, if:
    (i) The SAVE verification of any immigration documents that were 
timely submitted has not been completed;
    (ii) The family member for whom required evidence has not been 
submitted has moved from the assisted dwelling unit;
    (iii) The family member who is determined not to be in an eligible 
immigration status following the SAVE verification has moved from the 
assisted dwelling unit;
    (iv) Assistance is continued in accordance with Sec. Sec.  5.516 
and 5.518; or
    (v) Deferral of termination of assistance is granted in accordance 
with Sec. Sec.  5.516 and 5.518.
* * * * *
    (c) Events causing denial or termination of assistance--(1) 
General. Assistance to an applicant shall be denied, and a tenant's 
assistance shall be terminated, in accordance with the procedures of 
this section, upon the occurrence of any of the following events:
    (i) Evidence that the individual is a U.S. citizen as defined in 
Sec.  5.504(b) (i.e., the declaration), or has eligible immigration 
status, is not submitted by the date specified in Sec.  5.508(f) or by 
the expiration of any extension granted in accordance with Sec.  
5.508(g); or
    (ii) Evidence that the individual is a U.S. citizen as defined in 
Sec.  5.504(b), or has eligible immigration status, is timely 
submitted, but the SAVE verification does not verify eligible 
immigration status of a family member.
    (2) Termination of assisted occupancy. For termination of assisted 
occupancy, see paragraph (i) of this section.
    (d) Notice of denial or termination of assistance. The notice of 
denial or termination of assistance shall advise the family:
    (1) That financial assistance will be denied or terminated, and 
provide a brief explanation of the reasons for the proposed denial or 
termination of assistance;
    (2) In the case of a tenant, the criteria and procedures for 
obtaining relief under the provisions for preservation of families in 
Sec. Sec.  5.516 and 5.518; and
    (3) That any family member may seek a record correction with DHS if 
they believe that SAVE was unable to verify their status due to 
incorrect immigration records.
* * * * *
0
9. Revise Sec.  5.516 to read as follows:


Sec.  5.516  Availability of preservation assistance to tenant 
families.

    (a) Assistance available for tenant families--(1) General. 
Preservation assistance may be available to tenant families, in 
accordance with this section and following the conclusion of a records 
correction request. There are two types of preservation assistance:
    (i) Continued assistance (see Sec.  5.518(a)); and
    (ii) Temporary deferral of termination of assistance (see Sec.  
5.518(a)).
    (2) Availability of assistance--(i) For Housing covered programs. 
One of the two types of assistance described in paragraph (a)(1) of 
this section may be available to tenant families assisted under a 
National Housing Act or 1965 HUD Act covered program, depending upon 
the family's eligibility for such assistance. Continued assistance must 
be provided to a tenant family that meets the conditions for 
eligibility for continued assistance.
    (ii) For Section 8 or Public Housing covered programs. One of the 
two types of assistance described in paragraph (a)(1) of this section 
may be available to

[[Page 20595]]

tenant families assisted under a Section 8 or Public Housing covered 
program.
    (b) Assistance available to other families in occupancy. Temporary 
deferral of termination of assistance may be available to families 
receiving assistance under a Section 214 covered program on June 19, 
1995, and who have no members with eligible immigration status, as set 
forth in paragraphs (b)(1) and (2) of this section.
    (1) For Housing covered programs. Temporary deferral of termination 
of assistance is available to families assisted under a Housing covered 
program.
    (2) For Section 8 or Public Housing covered programs. The 
responsible entity may make temporary deferral of termination of 
assistance to families assisted under a Section 8 or Public Housing 
covered program.
    (c) Section 8 covered programs: Discretion afforded to provide 
certain family preservation assistance--(1) Project owners. With 
respect to assistance under a Section 8 Act covered program 
administered by a project owner, HUD has the discretion to determine 
under what circumstances families are to be provided one of the two 
statutory forms of assistance for preservation of the family (continued 
assistance or temporary deferral of assistance). HUD is exercising its 
discretion by specifying the standards in this section under which a 
project owner must provide one of these two types of assistance to a 
family.
    (2) PHAs. The PHA, rather than HUD, has the discretion to determine 
the circumstances under which a family will be offered one of the two 
statutory forms of assistance (continued assistance or temporary 
deferral of termination of assistance). The PHA must establish its own 
policy and criteria to follow in making its decision. In establishing 
the criteria for granting continued assistance or temporary deferral of 
termination of assistance, the PHA must incorporate the statutory 
criteria, which are set forth in Sec.  5.518(a) and (b).
0
10. Amend Sec.  5.518 as follows:
0
a. Revise the section heading and paragraphs (a), (b)(1), (b)(2) 
introductory text, and (b)(3); and
0
b. Remove paragraph (c) and redesignate paragraph (d) as new paragraph 
(c).
    The revisions read as follows:


Sec.  5.518  Types of preservation assistance available to tenant 
families.

    (a) Continued assistance. A tenant family may receive continued 
housing assistance if all the following conditions are met (a tenant 
family assisted under a Housing covered program must be provided 
continued assistance if the family meets the following conditions):
    (1) The family was receiving assistance under a Section 214 covered 
program on June 19, 1995;
    (2) The family's head of household or spouse has eligible 
immigration status as described in Sec.  5.506; and
    (3) The family does not include any person who does not have 
eligible immigration status other than the head of household, any 
spouse of the head of household, any parents of the head of household, 
any parents of the spouse, or any children of the head of household or 
spouse.
    (b) Temporary deferral of termination of assistance--(1) 
Eligibility for this type of assistance. If a tenant family does not 
qualify for continued assistance, the family may be eligible for 
temporary deferral of termination of assistance, if necessary, to 
permit the family additional time for the orderly transition of those 
family members with ineligible status, and any other family members 
involved, to other affordable housing. Other affordable housing is used 
in the context of transition of an ineligible family from a rent level 
that reflects HUD assistance to a rent level that is unassisted; the 
term refers to housing that is not substandard, that is of appropriate 
size for the family, and that can be rented for an amount not exceeding 
the amount that the family pays for rent, including utilities, plus 25 
percent.
    (2) Housing covered programs: Conditions for granting temporary 
deferral of termination of assistance. The responsible entity shall 
grant a temporary deferral of termination of assistance to a family if 
the family is assisted under a Housing covered program and one of the 
following conditions is met:
* * * * *
    (3) Time limit on deferral period. If temporary deferral of 
termination of assistance is granted, the deferral period shall be for 
an initial period not to exceed six months. The initial period may be 
renewed for additional periods of six months, but the aggregate 
deferral period for deferrals shall not exceed a period of eighteen 
months. These time periods do not apply to a family that includes an 
individual admitted as a refugee under section 207 of the Immigration 
and Nationality Act or an individual granted asylum under section 208 
of that Act.
* * * * *
0
11. Revise Sec.  5.520(a) to read as follows:


Sec.  5.520  Proration of assistance.

    (a) Applicability. This section applies to a family whose head of 
household or spouse has eligible immigration status, pending final 
determinations for other family members.
* * * * *
0
12. Revise Sec.  5.522 to read as follows:


Sec.  5.522  Prohibition of assistance to noncitizen students.

    The provisions of Sec. Sec.  5.516 and 5.518 permitting continued 
assistance or temporary deferral of termination of assistance for 
certain families do not apply to any person who is determined to be a 
noncitizen student as in section 214(c)(2)(A) (42 U.S.C. 
1436a(c)(2)(A)).

    Dated: May 3, 2019.
Benjamin S. Carson, Sr.,
Secretary.
[FR Doc. 2019-09566 Filed 5-9-19; 8:45 am]
BILLING CODE 4210-67-P