Rental Assistance Demonstration: Revised RAD Notice, 54630-54632 [2019-22134]
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54630
Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
Information collection
Number of
respondents
Frequency
of response
Responses
per annum
Burden
hour per
response
Annual
burden
hours
Hourly
cost per
response
Annual
cost
Certification for OZ
Preference Form ......
737
2.26
1,667
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B. Solicitation of Public Comment
This notice is soliciting comments
from members of the public and affected
parties concerning the collection of
information described in Section A on
the following:
(1) Whether the proposed collection
of information is necessary for the
proper performance of the functions of
the agency, including whether the
information will have practical utility;
(2) The accuracy of the agency’s
estimate of the burden of the proposed
collection of information;
(3) Ways to enhance the quality,
utility, and clarity of the information to
be collected; and
(4) Ways to minimize the burden of
the collection of information on those
who are to respond; including through
the use of appropriate automated
collection techniques or other forms of
information technology, e.g., permitting
electronic submission of responses.
HUD encourages interested parties to
submit comment in response to these
questions.
properties to long-term, project-based
Section 8 rental assistance. This Federal
Register notice announces the posting of
the fourth revision to the RAD notice
(Revised RAD Notice Revision 4, PIH–
2019–23 (HA)/H–2019–09, REV–4) and
solicits public comment on changed
eligibility and selection criteria. As
provided by the RAD Statute, this notice
addresses the requirement that RAD
may proceed after publication of notice
of its terms in the Federal Register. This
notice summarizes the key changes
made in the Revised RAD Notice. This
notice also meets the RAD Statute
requirement to publish waivers and
alternative requirements at least 10 days
before effect, while this does not
prevent the demonstration, as modified,
from proceeding immediately.
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Comment Due Date: November
12, 2019.
Effective Dates: The Revised RAD
Notice, PIH–2019–23 (HA)/H–2019–09,
REV–4, other than those items listed as
subject to notice and comment or new
statutory or regulatory waivers or
alternative requirements specified in
this notice, is effective October 10, 2019.
The new statutory and regulatory
waivers and alternative requirements
are effective October 21, 2019.
The items listed as subject to notice
and comment will be effective upon
November 12, 2019. If HUD receives
adverse comment that leads to
reconsideration, HUD will notify the
public in a new notice immediately
upon the expiration of the comment
period.
[Docket No. FR–5630–N–13]
ADDRESSES:
C. Authority
Section 3507 of the Paperwork
Reduction Act of 1995, 44 U.S.C.
Chapter 35.
Dated: October 4, 2019.
Ben Demarzo,
Assistant Deputy Secretary, Office of Field
Policy and Management.
[FR Doc. 2019–22135 Filed 10–9–19; 8:45 am]
BILLING CODE 4210–67–P
DATES:
Interested persons are
invited to submit comments
electronically to rad@hud.gov no later
than the comment due date.
Rental Assistance Demonstration:
Revised RAD Notice
Office of the Assistant
Secretary for Public and Indian Housing
and Office of the Assistant Secretary for
Housing—Federal Housing
Commissioner, HUD.
ACTION: Notice.
AGENCY:
FOR FURTHER INFORMATION CONTACT:
The Rental Assistance
Demonstration (RAD) provides the
opportunity to facilitate the conversion
of assistance of public housing
properties and other HUD-assisted
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Jkt 250001
To
assure a timely response, please direct
requests for further information
electronically to the email address rad@
hud.gov. Written requests may also be
directed to the following address: Office
of Recapitalization, Office of Housing;
Department of Housing and Urban
Development; 451 7th Street SW, Room
2000; Washington, DC 20410.
PO 00000
Frm 00046
Fmt 4703
Sfmt 4703
I. Background
Originally authorized by the
Consolidated and Further Continuing
Appropriations Act, 2012 (Pub. L. 122–
55, signed November 18, 2011) (2012
Appropriations Act), RAD allows for the
conversion of assistance of public
housing properties, Rent Supplement
(Rent Supp), Rental Assistance (RAP),
Moderate Rehabilitation (Mod Rehab),
Mod Rehab Single Room Occupancy
(SRO), and Section 202 Project Rental
Assistance Contract (202 PRAC)
programs (collectively, ‘‘covered
programs’’) to long-term, renewable
assistance under Section 8.1 The most
recent version of the RAD notice is PIH–
2019–23 (HA)/H–2019–09, REV–4,
located at https://www.hud.gov/sites/
documents/RAD_Notice_Rev3_
Final.docx.
II. Key Changes Made to RAD
The following highlights key changes
to RAD that are included in the Revised
RAD Notice:
First Component (Public Housing
Conversions):
1. Extends all resident rights to
households that will reside in non-RAD
Project Based Voucher (PBV) units
placed in a Covered Project so as to
facilitate the standard protection or
residents (see section 1.6);
2. Increases resident notice
requirements to ensure adequate
communication with residents
throughout the conversion process (see
Section 1.8);
3. Establishes a mechanism for public
housing agencies (PHAs) to enter into
partnerships in order to pool resources
or capacity with each other so as to
effectively convert properties through
RAD (see Section 1.5.A.M);
4. Allows limited rent increases for
public housing conversions to Project
1 The RAD statutory requirements were amended
by the Consolidated Appropriations Act, 2014 (Pub.
L. 113–76, signed January 17, 2014), the
Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113–235, signed
December 16, 2014), the Consolidated
Appropriations Act, 2016 (Pub. L. 114–113, signed
December 18, 2015), the Consolidated
Appropriations Act, 2017 (Pub. L. 115–31, signed
May 4, 2017), and the Consolidated Appropriations
Act, 2018 (Pub. L. 115–141, signed March 23, 2018).
The statutory provisions of the 2012 Appropriations
Act pertaining to RAD, as amended, are referred to
as the RAD Statute in this notice.
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Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
Based Rental Assistance (PBRA)
contracts in certain scenarios, including
in designated Opportunity Zones (see
Section 1.7.A.5);
5. Modifies the requirements for
portfolio awards so as to provide PHAs
greater flexibility in staging the
conversion of their properties (see
Section 1.9.C);
6. Streamlines Capital Needs
Assessment (CNA) requirements to
eliminate the submission of the CNA
Tool when certain conditions have been
met (see Section 1.5.A);
7. Introduces a ‘‘Concept Call’’ so that
PHAs can receive confirmation that
project plans are sufficiently advanced
to submit a Financing Plan (see Section
1.12.C);
8. Prohibits PHAs from entering debt
into the Earned Income Verification
‘‘Debts Owed’’ module purely as a result
of the End of Participations Form HUD–
50058 that is required to be submitted
into Public and Indian Housing
Information Center (PIC) as part of the
conversion (see Section 1.13.B);
9. Broadens the use of ‘‘tiered’’
environmental reviews so that
streamlined submissions are needed for
certain 24 CFR part 50 reviews; requires
the use of the HUD Environmental
Review Online System (HEROS) for Part
50 reviews; and requires radon testing
for PBRA and PBV conversions (see
Attachment 1A);
10. Establishes policy that RAD rents
will be updated every two years and the
updated rents will be applied to new
awards issued after those established
dates (see Attachment 1C);
11. Establishes a priority for ‘‘Section
3’’ employment and other economic
opportunities for residents of public
housing or Section 8 assisted housing
(see Section 1.4.A.15).
Second Component (202 PRAC, Mod
Rehab, Mod Rehab SRO, Rent Supp,
RAP Conversions):
1. Implements the provision of the
2018 Consolidated Appropriations Act
authorizing the conversion of 202 PRAC
projects to Section 8 PBRA or PBV
contracts;
2. Streamlines Capital Needs
Assessment (CNA) requirements for
Mod Rehab conversion to eliminate the
submission of the CNA Tool when
certain conditions have been met;
3. Broadens the use of ‘‘tiered’’
environmental reviews so that
streamlined submissions are needed for
certain Part 50 reviews; requires the use
of the HUD Environmental Review
Online System (HEROS) for Part 50
reviews; and requires radon testing for
PBRA and PBV conversions;
4. Provides an ability for owners of
converting SRO properties serving the
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19:50 Oct 09, 2019
Jkt 250001
homeless to establish a preference that
facilitates permanent supportive
housing;
5. Fully establishes resident right of
return and the prohibition against rescreening for existing residents; and
6. Establishes a final date that any
remaining RAP properties may make a
submission of conversion under RAD.
7. Clarifies the requirements with
respect to Section 8 PBRA/PBV and the
Davis-Bacon Act of 1931 by stating that
execution of a Section 8 PBRA or PBV
contract through RAD that provides
rental assistance to previously assisted
units does not trigger Davis-Bacon
prevailing wage requirements
(prevailing wages, the Contract Work
Hours and Safety Standards Act, and
implementing regulations, rules, and
requirements). However, to the extent
that construction or rehabilitation is
performed on nine or more units that
will be newly assisted as a result of the
conversion transaction (including,
without limitation, through transfer of
assistance), such construction or
rehabilitation is subject to Davis-Bacon
prevailing wage requirements. For more
information, see section VI of this
notice, below.
III. Changes Subject to Notice and
Comment
The Revised RAD Notice makes
changes to some of the selection and
eligibility criteria for conversions of
public housing under the First
Component. Pursuant to the RAD
Statute, these changes must be made
available for public comment before
they are effective. Please submit all
comments to rad@hud.gov. As indicated
above, the following changes will be
effective on November 12, 2019. If HUD
receives adverse comments that lead to
reconsideration, HUD will notify the
public in a new notice immediately
upon the expiration of the comment
period.
The changes subject to notice and
comment are:
1. Removing restrictions on certain
HOPE VI properties that are under 10
years old; and
2. Eliminating the selection of
applications based on previously
established ‘‘Priority Categories’’ so that
HUD reviews applications on a firstcome, first serve basis. In the event that
a waiting list forms, establishes the
priority selection of applications for
properties located in designated
Opportunity Zones.
IV. New Waivers and Alternative
Requirements
The RAD Statute provides that
waivers and alternative requirements
PO 00000
Frm 00047
Fmt 4703
Sfmt 4703
54631
authorized under the First Component
must be published by notice in the
Federal Register no later than 10 days
before the effective date of such notice.
HUD has previously published its
waivers and alternative requirements for
RAD, on July 26, 2012 (77 FR 43850),
July 2, 2013 (78 FR 39759), June 26,
2015 (80 FR 36830), and January 19,
2017 (82 FR 6615).
So as to facilitate the uniform
treatment of residents and units at a
Covered Project, this notice subjects any
non-RAD PBV units located in the
Covered Project to certain waivers and
alternative requirements applicable to
RAD units, including:
1. Site selection—Compliance with
PBV Goals. Provision Affected: Section
8(o)(13)(C)(ii) of the United States
Housing Act of 1937 (the Act), 24 CFR
983.57(b)(1) and (c)(2). Waiver: HUD
waives these provisions having to do
with deconcentration of poverty and
expanding housing and economic
opportunity for the existing site.
2. Phase-in of Tenant Rent Increases.
Provision Affected: Section 3(a)(1) of the
Act, 24 CFR 983.3. Alternative
Requirement: HUD is specifying
alternative requirements to allow for the
phase-in of tenant rent increases caused
purely as a result of conversion.
3. Resident Procedural Rights.
Provision Affected: 24 CFR 983.257, 24
CFR 982.555(b). Alternative
Requirement: HUD is specifying
alternative requirements to require that
PHAs provide adequate written notice
of termination of the lease and establish
a grievance process.
4. Earned Income Disregard (EID).
Provision affected: 24 CFR 5.617(b).
Waiver and Alternative Requirement:
HUD is waiving this provision and
allowing all tenants who are employed
and currently receiving EID at the time
of conversion to continue to benefit
from this exclusion from income as a
resident in the PBV project. EID will
apply to residents in a PBV project with
assistance converted under RAD
regardless of the resident’s disability
status.
5. When Total Tenant Payment
Exceeds Gross Rent. Provision affected:
24 CFR 983.53(c), 24 CFR 983.258.
Waiver and Alternative Requirement:
HUD is waiving both of these provisions
and requiring that the unit for current
residents in the converting project be
placed on and/or remain under the nonRAD PBV HAP Contract in the covered
project when the family’s TTP equals or
exceeds the Gross Rent. Further, HUD is
establishing the alternative requirement
that until such time that the family’s
TTP falls below the gross rent, the rent
to the owner for the unit will equal the
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Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
lesser of (a) the family’s TTP, less the
Utility Allowance, or (b) any applicable
maximum rent under LIHTC
regulations. During any period when the
family’s TTP falls below the gross rent,
normal PBV rules shall apply.
6. Under-Occupied Unit. Provision
affected: 24 CFR 983.260. Waiver: HUD
is waiving this provision in order to
allow the family to remain in the underoccupied unit until an appropriate-sized
unit becomes available in the Covered
Project.
7. Establishment of a Waiting List.
Provision affected: 24 CFR
983.251(c)(2). Alternative Requirement:
HUD is specifying an alternative
requirement in order to ensure that
applicants on the PHA’s community
wide public housing waiting list have
been offered placement on a Covered
Project’s site-based PBV waiting list.
In addition, this notice announces
two other waivers and alternative
requirements:
1. Jobs Plus. Provision affected: Jobs
Plus provisions in the ‘‘Public Housing
Capital Fund’’ of Consolidated
Appropriations Act, 2014 (Pub. L. 113–
76) or future appropriations acts. Waiver
and Alternative Requirement: HUD is
waiving the provision in the
appropriation acts for FY14 and future
years that limits Jobs Plus funds to
provide grants to help public housing
residents obtain employment and
increase earnings. This waiver is
necessary for the continued
administration of the Jobs Plus grant at
a target project after conversion. Jobs
Plus grantees awarded FY14 and future
funds that convert the Jobs Plus target
projects(s) under RAD will be able to
finish out their Jobs Plus period of
performance unless significant
relocation and/or change in building
occupancy is planned. However, Jobs
Plus target public housing projects must
enroll public housing residents into the
Jobs Plus rent incentive, JPEID, prior to
conversion. Any resident of the Covered
Project that had not enrolled prior to
conversion is not eligible to enroll in
JPEID but may utilize Jobs Plus services
that predominantly benefit the former
public housing residents who resided at
the target project at the time of RAD
conversion.
2. Relocation requirements under
Section 18 of the Act. Provision affected:
Sections 18(a)(4) and 18(g) of the Act
and 24 CFR 970.21. Waiver and
Alternative Requirement: Where a PHA
is combining the use of RAD and
Section 18 at a project, HUD is waiving
the relocation requirements governing
Section 18 and applying the RAD
relocation requirements to affected
residents.
VerDate Sep<11>2014
19:50 Oct 09, 2019
Jkt 250001
V. Revised RAD Notice Availability
The Revised RAD Notice (PIH–2019–
23 (HA)/H–2019–09, REV–4) can be
found on RAD’s website, www.hud.gov/
RAD.
VI. Impact on 2015 Davis-Bacon Notice
On March 9, 2015 at 80 FR 12511 (the
‘‘March 9, 2015 Notice’’), HUD
published a notice in the Federal
Register with details on how the DavisBacon requirements interact with the
PBV program. The notice particularly
addressed the applicability of DavisBacon requirements to projects selected
as ‘‘existing housing’’ 2 under the PBV
program, including PBV existing
housing under the second component of
RAD (sometimes referred to as ‘‘RAD
2’’), which was covered in section II.C.
HUD’s General Counsel issued a legal
opinion on August 13, 2019 (the ‘‘2019
Opinion’’), concluding that Davis-Bacon
requirements are not triggered by the
rehabilitation of previously assisted
units occurring in connection with a
conversion of assistance under the
second component of RAD. The 2019
Opinion superseded a 2014 opinion (the
‘‘2014 Opinion’’) from the Office of
General Counsel regarding the
applicability of Davis-Bacon wage rates
to PBV existing housing under RAD 2.
The 2019 Opinion noted that the 2014
Opinion did not give proper
consideration to statutory text and was
a departure from longstanding HUD
interpretation and practice. The 2019
Opinion concluded that rehabilitation of
already-assisted units and associated
common areas that occur in connection
with PBV and PBRA provided under
RAD 2 does not constitute
‘‘development’’ of a new Section 8
project that would trigger the
application of Davis-Bacon
requirements under section 12(a) of the
United States Housing Act of 1937.
Instead, RAD 2 transactions in which
the assisted units remain the same as
those under the prior form of projectbased assistance constitute a mere
extension of existing assistance. The
2019 Opinion also noted that to the
extent that construction or rehabilitation
is performed on nine or more units that
will be newly assisted with PBVs or
PBRA under RAD 2 (including through
transfer of assistance), this work would
constitute development of an expanded
project that would trigger the
application of Davis-Bacon to the same
extent that it would apply to the nonRAD provision of PBVs or PBRA to
projects that include units not assisted
under a previous contract. Accordingly,
2 Existing
PO 00000
housing is defined in 24 CFR 983.3.
Frm 00048
Fmt 4703
Sfmt 4703
section II.C. of the March 9, 2015 Notice
is withdrawn. The guidance in the
remainder of the March 9, 2015 Notice
remains applicable to the rehabilitation
of nine or more newly assisted existing
units under RAD 2.
VII. Environmental Review
A Finding of No Significant Impact
with respect to the environment has
been completed 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)). The
Finding is available for public
inspection during regular business
hours in 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 the HUD
Headquarters building, please schedule
an appointment to review the Finding
by calling the Regulations Division at
202–402–3055 (this is not a toll-free
number). Individuals with speech or
hearing impairments may access this
number via TTY by calling the Federal
Relay Service at 800–877–8339.
Dated: October 4, 2019.
R. Hunter Kurtz,
Assistant Secretary for Public and Indian
Housing.
Brian D. Montgomery,
Assistant Secretary for Housing—Federal
Housing Commissioner.
[FR Doc. 2019–22134 Filed 10–9–19; 8:45 am]
BILLING CODE P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLAZ910000.L12100000.XP0000 19X
6100.241A]
State of Arizona Resource Advisory
Council Meeting
Bureau of Land Management,
Interior.
ACTION: Notice of public meeting.
AGENCY:
In accordance with the
Federal Land Policy and Management
Act of 1976 and the Federal Advisory
Committee Act of 1972, the U.S.
Department of the Interior, Bureau of
Land Management (BLM), Arizona
Resource Advisory Council (RAC) will
meet in Phoenix, Arizona, as indicated
below.
DATES: The RAC will hold a 2-day
public meeting on November 13–14,
2019. The meeting will be held each day
from 8:30 a.m. to 4:30 p.m.
SUMMARY:
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Agencies
[Federal Register Volume 84, Number 197 (Thursday, October 10, 2019)]
[Notices]
[Pages 54630-54632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22134]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5630-N-13]
Rental Assistance Demonstration: Revised RAD Notice
AGENCY: Office of the Assistant Secretary for Public and Indian Housing
and Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Rental Assistance Demonstration (RAD) provides the
opportunity to facilitate the conversion of assistance of public
housing properties and other HUD-assisted properties to long-term,
project-based Section 8 rental assistance. This Federal Register notice
announces the posting of the fourth revision to the RAD notice (Revised
RAD Notice Revision 4, PIH-2019-23 (HA)/H-2019-09, REV-4) and solicits
public comment on changed eligibility and selection criteria. As
provided by the RAD Statute, this notice addresses the requirement that
RAD may proceed after publication of notice of its terms in the Federal
Register. This notice summarizes the key changes made in the Revised
RAD Notice. This notice also meets the RAD Statute requirement to
publish waivers and alternative requirements at least 10 days before
effect, while this does not prevent the demonstration, as modified,
from proceeding immediately.
DATES: Comment Due Date: November 12, 2019.
Effective Dates: The Revised RAD Notice, PIH-2019-23 (HA)/H-2019-
09, REV-4, other than those items listed as subject to notice and
comment or new statutory or regulatory waivers or alternative
requirements specified in this notice, is effective October 10, 2019.
The new statutory and regulatory waivers and alternative
requirements are effective October 21, 2019.
The items listed as subject to notice and comment will be effective
upon November 12, 2019. If HUD receives adverse comment that leads to
reconsideration, HUD will notify the public in a new notice immediately
upon the expiration of the comment period.
ADDRESSES: Interested persons are invited to submit comments
electronically to [email protected] no later than the comment due date.
FOR FURTHER INFORMATION CONTACT: To assure a timely response, please
direct requests for further information electronically to the email
address [email protected]. Written requests may also be directed to the
following address: Office of Recapitalization, Office of Housing;
Department of Housing and Urban Development; 451 7th Street SW, Room
2000; Washington, DC 20410.
SUPPLEMENTARY INFORMATION:
I. Background
Originally authorized by the Consolidated and Further Continuing
Appropriations Act, 2012 (Pub. L. 122-55, signed November 18, 2011)
(2012 Appropriations Act), RAD allows for the conversion of assistance
of public housing properties, Rent Supplement (Rent Supp), Rental
Assistance (RAP), Moderate Rehabilitation (Mod Rehab), Mod Rehab Single
Room Occupancy (SRO), and Section 202 Project Rental Assistance
Contract (202 PRAC) programs (collectively, ``covered programs'') to
long-term, renewable assistance under Section 8.\1\ The most recent
version of the RAD notice is PIH-2019-23 (HA)/H-2019-09, REV-4, located
at https://www.hud.gov/sites/documents/RAD_Notice_Rev3_Final.docx.
---------------------------------------------------------------------------
\1\ The RAD statutory requirements were amended by the
Consolidated Appropriations Act, 2014 (Pub. L. 113-76, signed
January 17, 2014), the Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113-235, signed December 16,
2014), the Consolidated Appropriations Act, 2016 (Pub. L. 114-113,
signed December 18, 2015), the Consolidated Appropriations Act, 2017
(Pub. L. 115-31, signed May 4, 2017), and the Consolidated
Appropriations Act, 2018 (Pub. L. 115-141, signed March 23, 2018).
The statutory provisions of the 2012 Appropriations Act pertaining
to RAD, as amended, are referred to as the RAD Statute in this
notice.
---------------------------------------------------------------------------
II. Key Changes Made to RAD
The following highlights key changes to RAD that are included in
the Revised RAD Notice:
First Component (Public Housing Conversions):
1. Extends all resident rights to households that will reside in
non-RAD Project Based Voucher (PBV) units placed in a Covered Project
so as to facilitate the standard protection or residents (see section
1.6);
2. Increases resident notice requirements to ensure adequate
communication with residents throughout the conversion process (see
Section 1.8);
3. Establishes a mechanism for public housing agencies (PHAs) to
enter into partnerships in order to pool resources or capacity with
each other so as to effectively convert properties through RAD (see
Section 1.5.A.M);
4. Allows limited rent increases for public housing conversions to
Project
[[Page 54631]]
Based Rental Assistance (PBRA) contracts in certain scenarios,
including in designated Opportunity Zones (see Section 1.7.A.5);
5. Modifies the requirements for portfolio awards so as to provide
PHAs greater flexibility in staging the conversion of their properties
(see Section 1.9.C);
6. Streamlines Capital Needs Assessment (CNA) requirements to
eliminate the submission of the CNA Tool when certain conditions have
been met (see Section 1.5.A);
7. Introduces a ``Concept Call'' so that PHAs can receive
confirmation that project plans are sufficiently advanced to submit a
Financing Plan (see Section 1.12.C);
8. Prohibits PHAs from entering debt into the Earned Income
Verification ``Debts Owed'' module purely as a result of the End of
Participations Form HUD-50058 that is required to be submitted into
Public and Indian Housing Information Center (PIC) as part of the
conversion (see Section 1.13.B);
9. Broadens the use of ``tiered'' environmental reviews so that
streamlined submissions are needed for certain 24 CFR part 50 reviews;
requires the use of the HUD Environmental Review Online System (HEROS)
for Part 50 reviews; and requires radon testing for PBRA and PBV
conversions (see Attachment 1A);
10. Establishes policy that RAD rents will be updated every two
years and the updated rents will be applied to new awards issued after
those established dates (see Attachment 1C);
11. Establishes a priority for ``Section 3'' employment and other
economic opportunities for residents of public housing or Section 8
assisted housing (see Section 1.4.A.15).
Second Component (202 PRAC, Mod Rehab, Mod Rehab SRO, Rent Supp,
RAP Conversions):
1. Implements the provision of the 2018 Consolidated Appropriations
Act authorizing the conversion of 202 PRAC projects to Section 8 PBRA
or PBV contracts;
2. Streamlines Capital Needs Assessment (CNA) requirements for Mod
Rehab conversion to eliminate the submission of the CNA Tool when
certain conditions have been met;
3. Broadens the use of ``tiered'' environmental reviews so that
streamlined submissions are needed for certain Part 50 reviews;
requires the use of the HUD Environmental Review Online System (HEROS)
for Part 50 reviews; and requires radon testing for PBRA and PBV
conversions;
4. Provides an ability for owners of converting SRO properties
serving the homeless to establish a preference that facilitates
permanent supportive housing;
5. Fully establishes resident right of return and the prohibition
against re-screening for existing residents; and
6. Establishes a final date that any remaining RAP properties may
make a submission of conversion under RAD.
7. Clarifies the requirements with respect to Section 8 PBRA/PBV
and the Davis-Bacon Act of 1931 by stating that execution of a Section
8 PBRA or PBV contract through RAD that provides rental assistance to
previously assisted units does not trigger Davis-Bacon prevailing wage
requirements (prevailing wages, the Contract Work Hours and Safety
Standards Act, and implementing regulations, rules, and requirements).
However, to the extent that construction or rehabilitation is performed
on nine or more units that will be newly assisted as a result of the
conversion transaction (including, without limitation, through transfer
of assistance), such construction or rehabilitation is subject to
Davis-Bacon prevailing wage requirements. For more information, see
section VI of this notice, below.
III. Changes Subject to Notice and Comment
The Revised RAD Notice makes changes to some of the selection and
eligibility criteria for conversions of public housing under the First
Component. Pursuant to the RAD Statute, these changes must be made
available for public comment before they are effective. Please submit
all comments to [email protected]. As indicated above, the following changes
will be effective on November 12, 2019. If HUD receives adverse
comments that lead to reconsideration, HUD will notify the public in a
new notice immediately upon the expiration of the comment period.
The changes subject to notice and comment are:
1. Removing restrictions on certain HOPE VI properties that are
under 10 years old; and
2. Eliminating the selection of applications based on previously
established ``Priority Categories'' so that HUD reviews applications on
a first-come, first serve basis. In the event that a waiting list
forms, establishes the priority selection of applications for
properties located in designated Opportunity Zones.
IV. New Waivers and Alternative Requirements
The RAD Statute provides that waivers and alternative requirements
authorized under the First Component must be published by notice in the
Federal Register no later than 10 days before the effective date of
such notice. HUD has previously published its waivers and alternative
requirements for RAD, on July 26, 2012 (77 FR 43850), July 2, 2013 (78
FR 39759), June 26, 2015 (80 FR 36830), and January 19, 2017 (82 FR
6615).
So as to facilitate the uniform treatment of residents and units at
a Covered Project, this notice subjects any non-RAD PBV units located
in the Covered Project to certain waivers and alternative requirements
applicable to RAD units, including:
1. Site selection--Compliance with PBV Goals. Provision Affected:
Section 8(o)(13)(C)(ii) of the United States Housing Act of 1937 (the
Act), 24 CFR 983.57(b)(1) and (c)(2). Waiver: HUD waives these
provisions having to do with deconcentration of poverty and expanding
housing and economic opportunity for the existing site.
2. Phase-in of Tenant Rent Increases. Provision Affected: Section
3(a)(1) of the Act, 24 CFR 983.3. Alternative Requirement: HUD is
specifying alternative requirements to allow for the phase-in of tenant
rent increases caused purely as a result of conversion.
3. Resident Procedural Rights. Provision Affected: 24 CFR 983.257,
24 CFR 982.555(b). Alternative Requirement: HUD is specifying
alternative requirements to require that PHAs provide adequate written
notice of termination of the lease and establish a grievance process.
4. Earned Income Disregard (EID). Provision affected: 24 CFR
5.617(b). Waiver and Alternative Requirement: HUD is waiving this
provision and allowing all tenants who are employed and currently
receiving EID at the time of conversion to continue to benefit from
this exclusion from income as a resident in the PBV project. EID will
apply to residents in a PBV project with assistance converted under RAD
regardless of the resident's disability status.
5. When Total Tenant Payment Exceeds Gross Rent. Provision
affected: 24 CFR 983.53(c), 24 CFR 983.258. Waiver and Alternative
Requirement: HUD is waiving both of these provisions and requiring that
the unit for current residents in the converting project be placed on
and/or remain under the non-RAD PBV HAP Contract in the covered project
when the family's TTP equals or exceeds the Gross Rent. Further, HUD is
establishing the alternative requirement that until such time that the
family's TTP falls below the gross rent, the rent to the owner for the
unit will equal the
[[Page 54632]]
lesser of (a) the family's TTP, less the Utility Allowance, or (b) any
applicable maximum rent under LIHTC regulations. During any period when
the family's TTP falls below the gross rent, normal PBV rules shall
apply.
6. Under-Occupied Unit. Provision affected: 24 CFR 983.260. Waiver:
HUD is waiving this provision in order to allow the family to remain in
the under-occupied unit until an appropriate-sized unit becomes
available in the Covered Project.
7. Establishment of a Waiting List. Provision affected: 24 CFR
983.251(c)(2). Alternative Requirement: HUD is specifying an
alternative requirement in order to ensure that applicants on the PHA's
community wide public housing waiting list have been offered placement
on a Covered Project's site-based PBV waiting list.
In addition, this notice announces two other waivers and
alternative requirements:
1. Jobs Plus. Provision affected: Jobs Plus provisions in the
``Public Housing Capital Fund'' of Consolidated Appropriations Act,
2014 (Pub. L. 113-76) or future appropriations acts. Waiver and
Alternative Requirement: HUD is waiving the provision in the
appropriation acts for FY14 and future years that limits Jobs Plus
funds to provide grants to help public housing residents obtain
employment and increase earnings. This waiver is necessary for the
continued administration of the Jobs Plus grant at a target project
after conversion. Jobs Plus grantees awarded FY14 and future funds that
convert the Jobs Plus target projects(s) under RAD will be able to
finish out their Jobs Plus period of performance unless significant
relocation and/or change in building occupancy is planned. However,
Jobs Plus target public housing projects must enroll public housing
residents into the Jobs Plus rent incentive, JPEID, prior to
conversion. Any resident of the Covered Project that had not enrolled
prior to conversion is not eligible to enroll in JPEID but may utilize
Jobs Plus services that predominantly benefit the former public housing
residents who resided at the target project at the time of RAD
conversion.
2. Relocation requirements under Section 18 of the Act. Provision
affected: Sections 18(a)(4) and 18(g) of the Act and 24 CFR 970.21.
Waiver and Alternative Requirement: Where a PHA is combining the use of
RAD and Section 18 at a project, HUD is waiving the relocation
requirements governing Section 18 and applying the RAD relocation
requirements to affected residents.
V. Revised RAD Notice Availability
The Revised RAD Notice (PIH-2019-23 (HA)/H-2019-09, REV-4) can be
found on RAD's website, www.hud.gov/RAD.
VI. Impact on 2015 Davis-Bacon Notice
On March 9, 2015 at 80 FR 12511 (the ``March 9, 2015 Notice''), HUD
published a notice in the Federal Register with details on how the
Davis-Bacon requirements interact with the PBV program. The notice
particularly addressed the applicability of Davis-Bacon requirements to
projects selected as ``existing housing'' \2\ under the PBV program,
including PBV existing housing under the second component of RAD
(sometimes referred to as ``RAD 2''), which was covered in section
II.C.
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\2\ Existing housing is defined in 24 CFR 983.3.
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HUD's General Counsel issued a legal opinion on August 13, 2019
(the ``2019 Opinion''), concluding that Davis-Bacon requirements are
not triggered by the rehabilitation of previously assisted units
occurring in connection with a conversion of assistance under the
second component of RAD. The 2019 Opinion superseded a 2014 opinion
(the ``2014 Opinion'') from the Office of General Counsel regarding the
applicability of Davis-Bacon wage rates to PBV existing housing under
RAD 2. The 2019 Opinion noted that the 2014 Opinion did not give proper
consideration to statutory text and was a departure from longstanding
HUD interpretation and practice. The 2019 Opinion concluded that
rehabilitation of already-assisted units and associated common areas
that occur in connection with PBV and PBRA provided under RAD 2 does
not constitute ``development'' of a new Section 8 project that would
trigger the application of Davis-Bacon requirements under section 12(a)
of the United States Housing Act of 1937. Instead, RAD 2 transactions
in which the assisted units remain the same as those under the prior
form of project-based assistance constitute a mere extension of
existing assistance. The 2019 Opinion also noted that to the extent
that construction or rehabilitation is performed on nine or more units
that will be newly assisted with PBVs or PBRA under RAD 2 (including
through transfer of assistance), this work would constitute development
of an expanded project that would trigger the application of Davis-
Bacon to the same extent that it would apply to the non-RAD provision
of PBVs or PBRA to projects that include units not assisted under a
previous contract. Accordingly, section II.C. of the March 9, 2015
Notice is withdrawn. The guidance in the remainder of the March 9, 2015
Notice remains applicable to the rehabilitation of nine or more newly
assisted existing units under RAD 2.
VII. Environmental Review
A Finding of No Significant Impact with respect to the environment
has been completed 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)). The Finding is available for public
inspection during regular business hours in 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 the HUD Headquarters building, please schedule an
appointment to review the Finding by calling the Regulations Division
at 202-402-3055 (this is not a toll-free number). Individuals with
speech or hearing impairments may access this number via TTY by calling
the Federal Relay Service at 800-877-8339.
Dated: October 4, 2019.
R. Hunter Kurtz,
Assistant Secretary for Public and Indian Housing.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2019-22134 Filed 10-9-19; 8:45 am]
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