Fire Protection for Recreational Vessels, 59303 [2021-23403]
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Federal Register / Vol. 86, No. 205 / Wednesday, October 27, 2021 / Rules and Regulations
applied only at the time of loan
disbursements. Note that future
notifications may provide for a
combination of upfront and periodic
fees for loan guarantee commitments
awarded in future fiscal years but, if so,
will provide the public an opportunity
to comment if appropriate under 24 CFR
570.712(b)(2).
The expected cost of a Section 108
loan guarantee is difficult to estimate
using historical program data because
there have been no defaults in the
history of the program that required
HUD to invoke its full faith and credit
guarantee or use the credit subsidy
reserved each year for future losses.3
This is due to a variety of factors,
including the availability of Community
Development Block Grant (CDBG) funds
as security for HUD’s guarantee as
provided in 24 CFR 570.705(b). As
authorized by Section 108 of the
Housing and Community Development
Act of 1974, as amended (42 U.S.C.
5308), borrowers may make payments
on Section 108 loans using CDBG grant
funds. Borrowers may also make Section
108 loan payments from other
anticipated sources but continue to have
CDBG funds available should they
encounter shortfalls in the anticipated
repayment source. Despite the
program’s history of no defaults, Federal
credit budgeting principles require that
the availability of CDBG funds to repay
the guaranteed loans cannot be assumed
in the development of the credit subsidy
cost estimate (see 80 FR 67629,
November 3, 2015). Thus, the estimate
must incorporate the risk that
alternative sources are used to repay the
guaranteed loan in lieu of CDBG funds,
and that those sources may be
insufficient. Based on the rate that
CDBG funds are used annually for
repayment of loan guarantees, HUD’s
calculation of the credit subsidy cost
must acknowledge the possibility of
future defaults if those CDBG funds
were not available. The fee of 2.00
percent of the principal amount of the
loan will offset the expected cost to the
Federal Government due to default,
financing costs, and other relevant
factors. To arrive at this measure, HUD
analyzed data on comparable municipal
debt over an extended period. The
estimated rate is based on the default
and recovery rates for general purpose
municipal debt and industrial
development bonds. The cumulative
default rates on industrial development
bonds were higher than the default rates
on general purpose municipal debt
during the period from which the data
were taken. These two subsectors of
municipal debt were chosen because
their purposes and loan terms most
closely resemble those of Section 108
guaranteed loans.
In this regard, Section 108 guaranteed
loans can be broken down into two
categories: (1) Loans that finance public
infrastructure and activities to support
subsidized housing (other than
financing new construction) and (2)
other development projects (e.g., retail,
commercial, industrial). The 2.00
percent fee was derived by weighting
the default and recovery data for general
purpose municipal debt and the data for
industrial development bonds according
to the expected composition of the
Section 108 portfolio by corresponding
project type. Based on the dollar amount
of Section 108 loan guarantee
commitments awarded from FY 2016
through FY 2020, HUD expects that 47
percent of the Section 108 portfolio will
be similar to general purpose municipal
debt and 53 percent of the portfolio will
be similar to industrial development
bonds. In setting the fee at 2.00 percent
of the principal amount of the
guaranteed loan, HUD expects that the
amount generated will fully offset the
cost to the Federal Government
associated with making guarantee
commitments awarded in FY 2022. Note
that the FY 2022 fee represents a 0.15
percent decrease from the FY 2021 fee
of 2.15 percent.
This document establishes a rate that
does not constitute a development
decision that affects the physical
condition of specific project areas or
building sites. Accordingly, under 24
CFR 50.19(c)(6), this document is
categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
James Arthur Jemison, II,
Principal Deputy, Assistant Secretary for
Community Planning and Development.
[FR Doc. 2021–23365 Filed 10–26–21; 8:45 am]
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Parts 1 and 175
46 CFR Part 25
[Docket No. USCG–2018–0099]
RIN 1625–AC41
Fire Protection for Recreational
Vessels
Coast Guard, Department of
Homeland Security.
AGENCY:
ACTION:
Final rule; correction.
The Coast Guard is correcting
a final rule that appeared in the Federal
Register on October 22, 2021. The
document issued a final rule that
amended fire extinguishing equipment
regulations for recreational vessels that
are propelled or controlled by
propulsion machinery.
SUMMARY:
DATES:
Effective April 20, 2022.
For
information about this document, call or
email Jeffrey Decker, Office of Auxiliary
and Boating Safety, Boating Safety
Division (CG–BSX–2), Coast Guard;
telephone 202–372–1507, email
RBSinfo@uscg.mil.
FOR FURTHER INFORMATION CONTACT:
In FR Doc.
2021–22578 apearing on pages 58560–
58573 in the Federal Register of Friday,
October 22, 2021, the following
correction is made:
SUPPLEMENTARY INFORMATION:
33 CFR 175.320 [Corrected]
1. On page 58573, in the first column,
in table 3 to § 175.320(a)(2), the header
for the second column is corrected to
read ‘‘Conditions that do not in
themselves require fire extinguishers’’.
■
Michael Cunningham,
Chief, Office of Regulations and
Administrative Law, U.S. Coast Guard.
[FR Doc. 2021–23403 Filed 10–26–21; 8:45 am]
BILLING CODE 9110–04–P
BILLING CODE 4210–67–P
3 U.S. Department of Housing and Urban
Development, Study of HUD’s Section 108 Loan
Guarantee Program, (prepared by Econometrica,
Inc. and The Urban Institute), September 2012, at
pp. 73–74. This fact has not changed since the
issuance of this report.
VerDate Sep<11>2014
18:39 Oct 26, 2021
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[Federal Register Volume 86, Number 205 (Wednesday, October 27, 2021)]
[Rules and Regulations]
[Page 59303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23403]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
33 CFR Parts 1 and 175
46 CFR Part 25
[Docket No. USCG-2018-0099]
RIN 1625-AC41
Fire Protection for Recreational Vessels
AGENCY: Coast Guard, Department of Homeland Security.
ACTION: Final rule; correction.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard is correcting a final rule that appeared in
the Federal Register on October 22, 2021. The document issued a final
rule that amended fire extinguishing equipment regulations for
recreational vessels that are propelled or controlled by propulsion
machinery.
DATES: Effective April 20, 2022.
FOR FURTHER INFORMATION CONTACT: For information about this document,
call or email Jeffrey Decker, Office of Auxiliary and Boating Safety,
Boating Safety Division (CG-BSX-2), Coast Guard; telephone 202-372-
1507, email [email protected].
SUPPLEMENTARY INFORMATION: In FR Doc. 2021-22578 apearing on pages
58560-58573 in the Federal Register of Friday, October 22, 2021, the
following correction is made:
33 CFR 175.320 [Corrected]
0
1. On page 58573, in the first column, in table 3 to Sec.
175.320(a)(2), the header for the second column is corrected to read
``Conditions that do not in themselves require fire extinguishers''.
Michael Cunningham,
Chief, Office of Regulations and Administrative Law, U.S. Coast Guard.
[FR Doc. 2021-23403 Filed 10-26-21; 8:45 am]
BILLING CODE 9110-04-P
