Implementing Rental Housing Assistance for the Native Hawaiian Housing Block Grant Program, 328-337 [2022-28020]
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Federal Register / Vol. 88, No. 2 / Wednesday, January 4, 2023 / Proposed Rules
outline the key requirements for the
study: a definition for the terms
‘‘survivor of a severe form of trafficking’’
and ‘‘survivor of trafficking,’’ 21 the
requirements for coordination 22 and
consultation 23 while conducting the
study, and the contents of the study.24
Lastly, section 606 of VAWA 2022
provides that not later than September
15, 2023, the Secretary shall submit a
report containing the contents of the
study to the Committee on Banking,
Housing, and Urban Affairs of the
Senate and the Committee on Financial
Services of the House of
Representatives, as well as making the
report publicly available.
Implementation: Section 606 of
VAWA 2022 was effective upon
enactment of VAWA 2022. No
regulatory action is needed to
implement this provision. HUD began
work on the study in Spring 2022,
including conducting the required
consultations with stakeholders, and
expects to complete the report on
schedule.
IV. Solicitation of Comment
In this document, HUD has
highlighted certain issues for which
comment is specifically sought but
welcomes comment on any aspect of
this document.
Marcia L. Fudge,
Secretary.
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BILLING CODE 4210–67–P
21 Section 606 applies the same meaning given to
the respective terms as in section 103 of the
Trafficking Victims Protection Act of 2000 (22
U.S.C. 7102).
22 The Secretary shall coordinate with: (i) the
Interagency Task Force to Monitor and Combat
Trafficking established under section 105 of the
Trafficking Victims Protection Act of 2000 (22
U.S.C. 7103), (ii) the United States Advisory
Council on Human Trafficking, (iii) the Secretary of
Health and Human Services; and (iv) the Attorney
General.
23 The Secretary shall consult with: (i) the
National Advisory Committee on the Sex
Trafficking of Children and Youth in the United
States; (ii) survivors of trafficking; (iii) direct service
providers, including—(I) organizations serving
runaway and homeless youth; (II) organizations
serving survivors of trafficking through communitybased programs; and (III) organizations providing
housing services to survivors of trafficking—and
(iv) housing and homelessness assistance providers,
including recipients of grants under (I) the
Continuum of Care program authorized under
subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11381 et seq.)
and (II) the Emergency Solutions Grants program
authorized under subtitle B of title IV of the
McKinney-Vento Homeless Assistance Act (42
U.S.C. 11371 et seq.).
24 See section 606(b)(3).
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Part 1006
[Docket No. FR–6273–P–01]
RIN 2577–AD13
Implementing Rental Housing
Assistance for the Native Hawaiian
Housing Block Grant Program
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Proposed rule.
AGENCY:
Through this notice of
proposed rulemaking, the Department of
Housing and Urban Development (HUD)
is proposing to amend its regulations
covering rental housing assistance for
the Native Hawaiian Housing Block
Grant (NHHBG) program, consistent
with the Native American Housing
Assistance and Self-Determination Act
of 1996 (NAHASDA). HUD proposes to
clarify and improve consistency with
NAHASDA’s statutory requirements and
HUD’s Indian Housing Block Grant
program regulations. This proposed rule
would also help make affordable
housing opportunities, in the form of
NHHBG-assisted rental housing, more
available to eligible Native Hawaiian
families.
DATES: Comment Due Date: March 6,
2023.
ADDRESSES: There are two methods for
submitting public comments. All
submissions must refer to the above
docket number and title.
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.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
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 them immediately available to the
public. Comments submitted
electronically through the
www.regulations.gov website can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
SUMMARY:
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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 proposed
rule.
No Facsimile Comments. Facsimile
(fax) comments are not acceptable.
Public Inspection of Public
Comments. HUD will make all properly
submitted comments and
communications 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, you must
schedule an appointment in advance to
review the public comments by calling
the Regulations Division at 202–708–
3055 (this is not a toll-free number).
HUD welcomes and is prepared to
receive calls from individuals who are
deaf or hard of hearing, as well as
individuals with speech and
communication disabilities. To learn
more about how to make an accessible
telephone call, please visit https://
www.fcc.gov/consumers/guides/
telecommunications-relay-service-trs.
Copies of all comments submitted are
available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Claudine Allen, Lead Native Hawaiian
Program Specialist, Office of Native
American Programs, HUD Honolulu
Field Office, 1003 Bishop Street, Suite
2100, Honolulu, HI 96813; telephone
number 808–457–4674 (this is not a tollfree number). HUD welcomes and is
prepared to receive calls from
individuals who are deaf or hard of
hearing, as well as individuals with
speech and communication disabilities.
To learn more about how to make an
accessible telephone call, please visit
https://www.fcc.gov/consumers/guides/
telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
The Hawaiian Homelands
Homeownership Act of 2000 (HHH Act)
was enacted as both title II of the
Omnibus Indian Advancement Act
(Pub. L. 106–568, 114 Stat. 2868,
approved December 27, 2000) and
subtitle B of title V of the American
Homeownership and Economic
Opportunity Act of 2000 (Pub. L. 106–
569, 114 Stat. 2944, approved December
27, 2000). Section 513 of the HHH Act,
Public Law 106–569, amended the
Native American Housing Assistance
and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) (NAHASDA) by
adding to it a new ‘‘Title VIII—Housing
Assistance for Native Hawaiians’’. Title
VIII established the Native Hawaiian
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Housing Block Grant (NHHBG) program
to provide block grant assistance for
affordable housing for eligible Native
Hawaiians,1 and section 810 provides
statutory authority for NHHBG rental
housing assistance.
In accordance with title VIII of
NAHASDA, the NHHBG program must
primarily benefit low-income Native
Hawaiian families who are eligible to
reside on the Hawaiian Home Lands.
Native Hawaiian families eligible to
reside on the Hawaiian Home Lands
experience more significant housing
challenges compared to Native
Hawaiian households overall, including
other Hawaii residents and Native
Hawaiians already residing on the
Hawaiian Home Lands.
On June 13, 2002, HUD published an
interim rule (‘‘interim rule’’) adding a
new 24 CFR part 1006 to implement the
block grant assistance program for
Native Hawaiians. 67 FR 40773. HUD
modeled the NHHBG regulations after
the Indian Housing Block Grant (IHBG)
regulations implemented at 24 CFR part
1000 because the NHHBG and IHBG
programs are authorized under the same
statute and have overlapping
requirements that apply to both
programs.2
The interim rule established program
requirements pertaining to
homeownership and rental assistance
authorized under section 810 of title
VIII of NAHASDA.3 The new 24 CFR
part 1006 as implemented by the
interim rule closely followed the statute
with some differences for clarification.
Part 1006 established requirements such
as: applicability, definitions, and
waivers; what the Department of
Hawaiian Home Lands (DHHL) must
include in its housing plan that it must
submit to HUD for each Federal fiscal
year grant; eligible program activities,
1 Section 513 of the HHH Act adds sections 801
through 824, which authorize this NHHBG program,
as title VIII of NAHASDA. Although NAHASDA
may be referenced throughout this proposed rule,
NHHBG serves Native Hawaiians specifically.
2 67 FR 40773; see Native American Housing
Assistance and Self-Determination Act of 1996
[hereinafter NAHASDA] sections 810–811, 25
U.S.C. 4229–30. There are also differences between
the statutory authorities governing the IHBG and
NHHBG programs. In 2008, the Native American
Housing Assistance and Self-Determination
Reauthorization Act of 2008 (Pub. L. 110–411)
(NAHASDA Reauthorization Act), made several
changes to, inter alia, statutory requirements
governing HUD’s IHBG program, and implemented
statutory changes to NAHASDA made by several
laws enacted between 1998 and 2005. See 77 FR
71513. The NAHASDA Reauthorization Act did not
amend statutory provisions governing block grant
assistance for Native Hawaiians. See Native
American Housing Assistance and SelfDetermination Reauthorization Act of 2008, Public
Law 110–411, 122 Stat. 4319–35.
3 NAHASDA section 810(a), 25 U.S.C. 4229(a).
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including development, housing
services, housing management services,
crime prevention and safety activities
and model activities; requirements
related to income eligibility and
compliance with applicable Federal
laws; and reporting, performance
reviews, and how to address and
remedy noncompliance. HUD has not
comprehensively reviewed or amended
24 CFR part 1006 since this interim
rulemaking.
Prior to fiscal year 2020, the DHHL,
the sole recipient of the NHHBG, used
NHHBG funds primarily for
homeownership housing assistance. In
2019, Hawaii’s governor approved
administrative rules allowing the DHHL
to expand residential lease offerings to
include rental housing.4 HUD received
feedback from the DHHL about the
DHHL’s rental housing projects
currently in development. HUD then
reviewed its regulations and determined
they do not adequately explain how
NHHBG funds may be used for rental
assistance and could be revised to
provide additional details to better
support a fully successful rental housing
program administered by the DHHL.
This review has prompted HUD’s
proposal to amend NHHBG program
regulations in this notice of proposed
rulemaking.
Two of HUD’s proposals require
further background discussion. First,
NAHASDA requires HUD to establish
certain program requirements for both
IHBG and NHHBG. On July 26, 2007,
HUD amended the IHBG regulations at
24 CFR part 1000 to reflect these
requirements. 72 FR 41211. Pursuant to
authority in section 404(c) of
NAHASDA, HUD revised § 1000.514 to
require IHBG recipients to submit
Annual Performance Reports within 90
days, instead of 60 days, of the end of
their program year. HUD did not make
a corresponding change to the NHHBG
provision in § 1006.410, Performance
reports.
Second, HUD has identified one
provision, § 1006.101, Housing plan
requirements, where HUD has flexibility
to implement regulatory requirements
different than those in the IHBG
framework due to differences in
underlying statutory language for the
NHHBG and IHBG programs. Under
section 803 of NAHASDA, 25 U.S.C.
4223, the DHHL must submit a housing
plan ‘‘each fiscal year;’’ and no deadline
is specified. Section 1006.101 currently
requires submission of a housing plan
4 Dep’t
of Haw. Home Lands, Adoption of Chapter
10–7 Hawaii Administrative Rules (2019), https://
dhhl.hawaii.gov/wp-content/uploads/2020/02/
HAR-Ch-10-7_Eff-Aug-17-2019-1.pdf.
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329
‘‘for each Federal Fiscal Year grant.’’
The Native American Housing
Assistance and Self-Determination
Reauthorization Act of 2008 (Pub. L.
110–411) (NAHASDA Reauthorization
Act) amended, inter alia, statutory
requirements for submission of housing
plans under the IHBG program; the
amended statute requires submission no
later than 75 days before the beginning
of a program year.5 However, the
NAHASDA Reauthorization Act did not
amend statutory provisions governing
the NHHBG program.6 Accordingly,
HUD published a final rule in the
Federal Register on December 3, 2012,
77 FR 71513, that revised IHBG program
regulations at 24 CFR part 1000 to
conform to new statutory requirements,
including 24 CFR 1000.214 governing
the deadline for submission of Indian
housing plans under the IHBG program.
HUD did not amend any NHHBG
regulations in that final rule.
II. This Proposed Rule
Given the need to clarify the rental
assistance provisions in HUD’s current
NHHBG regulations and because HUD
has not comprehensively reviewed or
amended 24 CFR part 1006 in over 20
years, HUD is proposing to amend its
regulations to clarify how the funding
recipient may use NHHBG program
funds for rental housing assistance, as
authorized by title VIII of NAHASDA.
These changes should relieve burden on
the funding recipient in implementing
rental assistance, directly help lowincome Native Hawaiian families who
need rental assistance, and clarify the
tools available for HUD to monitor and
enforce program requirements. This
proposed rule would help make
affordable housing opportunities, in the
form of NHHBG-assisted rental housing,
more available to Native Hawaiian
families who are not ready for or do not
desire homeownership housing, and
who otherwise may be experiencing
overcrowded conditions, lack of
affordability, and/or homelessness.
HUD is proposing in this rulemaking
to amend 24 CFR part 1006 to ensure
compliance with the NHHBG program’s
statutory requirements; promote
consistency between NHHBG and IHBG
program regulations where the
programs’ statutory requirements
overlap or where inconsistencies exist
between the NHHBG and IHBG
regulatory frameworks; and add details
that would improve the NHHBG
5 NAHASDA Reauthorization Act section 102
(amending section 102 of NAHASDA, 25 U.S.C.
4112).
6 See generally NAHASDA Reauthorization Act of
2008, Public Law 110–411, 122 Stat. 4319–35.
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regulatory framework governing rental
assistance.
Section 1006.10, Definitions
HUD is proposing to add definitions
in § 1006.10 for each of the reasons
identified in the most immediately
preceding paragraph.
HUD is proposing to add a definition
for ‘‘Annual income’’ that matches the
definition in § 1000.10. This term is
currently used in part 1006 but does not
have a specific definition. The proposed
definition would allow for discretion by
the Department of Hawaiian Home
Lands to use the Section 8 programs
definition in 24 CFR part 5, the
definition of income as used by the U.S.
Census Bureau, or adjusted gross
income as defined for purposes of
reporting under Internal Revenue
Service (IRS) Form 1040 series for
individual Federal annual income tax
purposes.
HUD is proposing to add definitions
for ‘‘Homeless family’’ and ‘‘Person with
a Disability’’. These terms are currently
used in part 1006 but do not have
specific definitions. HUD’s proposed
definition for ‘‘Person with a Disability’’
is consistent with the definition of
person with a disability in HUD’s
regulations for section 504 of the
Rehabilitation Act of 1973 in 24 CFR
8.3, as amended by the Americans with
Disabilities Act (ADA) Amendments Act
of 2008, see 42 U.S.C. 12102(3)(B). The
provisions and rules of construction in
28 CFR 35.108 are necessary when
applying the definition of ‘‘Person with
a Disability’’ in this proposed rule.
HUD is proposing to add a definition
for ‘‘Income’’ that clarifies this term has
the meaning provided in the definition
of ‘‘Income’’ in section 4(9) of
NAHASDA. The statute defines
‘‘Income’’ as income from all sources of
each member of the household, as
determined according to criteria
determined by HUD, and provides for
three categories of amounts that may not
be considered income: amounts not
actually received by the family, certain
amounts received under the Social
Security Act, and amounts received for
certain disability compensation or as
dependency and indemnity
compensation received by veterans or
their surviving family members.
HUD is proposing to add a definition
for ‘‘NAHASDA’’ that provides the full
title, Native American Housing
Assistance and Self-Determination Act
of 1996, and United States Code
citation, 25 U.S.C. 4101 et seq.
HUD is proposing to add a definition
for ‘‘Project-based rental assistance’’
since HUD is proposing to add projectbased rental assistance requirements in
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new § 1006.227, Tenant-based or
project-based rental assistance. The
definition would provide that projectbased rental assistance means rental
assistance provided through a contract
with the owner of an existing structure,
where the owner agrees to lease the
subsidized units to program
participants. The definition would also
provide that program participants
would not retain rental assistance if
they move from the project.
Section 1006.101, Housing Plan
Requirements
In this proposed rule, HUD is
proposing to amend § 1006.101 by
revising the introductory text of
§ 1006.101 to clarify that the DHHL
must submit a housing plan before the
start of its fiscal year. This is consistent
with NHHBG statutory requirements
and provides a clear deadline.
HUD is also proposing to amend
§ 1006.101 by making technical
revisions to the introductory text to
clarify that the housing plan has two
components, a five-year plan and a oneyear plan. HUD also proposes clarifying
amendments to paragraphs (c) and (d).
HUD is proposing to revise paragraph
(c)(1) to clarify that the five-year plan
may be changed as necessary to update
it after its initial submission, but the
information for the one-year plan must
be submitted annually. HUD proposes
revising paragraph (c)(2) to clarify that
complete plans must include a new fiveyear plan. Paragraph (d) currently
requires that, before undertaking new
activities not addressed in a current
one-year housing plan, the DHHL must
submit to HUD for review any
amendment to the plan. HUD proposes
to revise this paragraph to clarify that
the current one-year plan must have
been reviewed by HUD and determined
to comply with section 803 of
NAHASDA.
Section 1006.201, Eligible Affordable
Housing Activities
HUD is proposing to amend
§ 1006.201 by adding language that
clarifies that eligible affordable housing
activities may include those conducted
in accordance with subpart D of part
1006 and that develop, operate,
maintain, or support housing for rental
or homeownership, or provide services
with respect to affordable housing
through the activities described in
subpart C of part 1006. This added
language improves consistency between
§ 1006.201 and statutory language.7
7 25
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U.S.C. 4229(a).
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Section 1006.210, Housing Services
HUD is proposing to amend
§ 1006.210 by removing existing
paragraph (g) and redesignating existing
paragraph (h) as new paragraph (g).
HUD proposes to move the existing
language in § 1006.210(g) to a new
section, § 1006.227, Tenant-based or
project-based rental assistance,
paragraph (a)—HUD is adding new
§ 1006.227 that provides that NHHBG
funds may be used for the provision of
tenant-based (and project-based) rental
assistance, and that provides further
details about how funds may be used for
such purposes. Existing § 1006.210(g)
speaks to these details, so HUD
proposes moving this language to the
new section to eliminate redundancy
and to efficiently organize HUD’s
regulations on the use of funds for
tenant-based rental assistance.
Section 1006.227, Tenant-Based or
Project-Based Rental Assistance
HUD is proposing to add § 1006.227
that describes in detail how NHHBG
funds may be used for tenant-based
rental assistance and project-based
rental assistance. HUD proposes to
model this new section off § 1000.103 to
maintain consistency between IHBG and
NHHBG regulations. However, HUD
proposes slightly different language
from § 1000.103 to conform to NHHBG
statutory requirements. Paragraph (a) of
§ 1006.227 would explicitly authorize
use of NHHBG funds for tenant-based
rental assistance, which may include
security deposits and first month’s rent,
and project-based rental assistance.
Paragraph (a)(1) of this section would
clarify that rental assistance must
comply with the requirements of part
1006 and be provided to eligible
families. In paragraph (a)(2), HUD
proposes to incorporate statutory
flexibility providing that DHHL ‘‘may’’
use NHHBG funds for rental assistance
for eligible Native Hawaiian families
‘‘both on and off the Hawaiian Home
Lands,’’ 8 when appropriations acts
enacted by Congress authorize such use
by the DHHL.
Section 1006.301, Eligible Families
HUD is proposing to amend
§ 1006.301 by adding new paragraphs
(b)(3) and (b)(3)(i) through (iii) to
implement limitations on uses of
NHHBG assistance for non-low-income
families pursuant to section
809(a)(2)(B)(ii) of NAHASDA. HUD
proposes to implement a 10-percent
limitation on the use, if any, of the
8 Public Law 115–141; Public Law 116–6; Public
Law 116–94; Public Law 116–260; Public Law 117–
103 (emphasis added).
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amount specified in a housing plan for
families whose income is 81 to 100
percent of the median income; specify
when the recipient, the DHHL, must
seek HUD’s approval; and set out related
requirements. New paragraph (b)(3)(iii)
would state that the limitations in the
preceding paragraphs (b)(3)(i) and (ii) do
not apply to other families who are nonlow income that the DHHL has
determined to be essential under
§ 1006.301(c).
HUD is proposing to further amend
§ 1006.301 by revising paragraph (b)(2)
to add a sentence at the end of the
paragraph clarifying that the DHHL
must obtain HUD approval by
submitting proposals in its housing
plan, by amendment of the housing
plan, or by special request to HUD at
any time, where the DHHL would
provide homeownership assistance to
Native Hawaiian families who are not
low-income under § 1006.301(b)(1). This
revision would improve consistency
with the IHBG program regulation at
§ 1000.108.
HUD is also proposing to amend
§ 1006.301 by revising language in
paragraph (b)(1) to clarify that the DHHL
may provide homeownership assistance
in conjunction with loan guarantee
activities. Section 1006.301(b)(1)
currently states the DHHL may provide
homeownership assistance through loan
guarantee activities, but such assistance
is not provided through loan guarantee
activities alone.
Finally, HUD proposes to revise
paragraph (b)(2) to make technical
changes, such as the addition of a cross
reference, that conform to HUD’s
proposed addition of new paragraph
(b)(3) and subordinate paragraphs
(b)(3)(i) through (iii).
Section 1006.305, Low-Income
Requirement and Income Targeting
HUD is proposing to amend
§ 1006.305 by revising existing
paragraph (a) and existing paragraphs
(a)(1) and (2) and adding new
paragraphs (a)(3) through (5). HUD
proposes these changes to reflect the
typical timeline for families entering
programs offered by the DHHL, the
typical timeline for constructing
housing, and the possibility of
fluctuating incomes over time.
HUD’s proposed revision to paragraph
(a) would provide that housing qualifies
as affordable housing for purposes of
NAHASDA and part 1006 provided that
the family occupying the housing unit is
low-income at the times described in
paragraphs (a)(1) through (5).
HUD proposes removing language in
paragraph (a)(1) referring to occupancy
by a low-income family to avoid
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redundancy with new language
proposed in paragraph (a).
HUD proposes removing the last
clause of paragraph (a)(2), ‘‘or is an
owner-occupied unit in which the
family is low-income at the time it
receives NHHBG assistance’’ and adding
it as a new paragraph (a)(3). HUD also
proposes to add a sentence to the end
of paragraph (a)(2) providing that when
the DHHL enters into a loan contract
with the family for assistance to
purchase or construct a homeownership
unit, the time of purchase means the
time that loan contract is executed.
HUD proposes adding paragraphs
(a)(3) through (5) to further clarify when
housing qualifies as affordable housing:
under paragraph (a)(3), in the case of
owner-occupied housing units, at the
time the family receives NHHBG
assistance; under paragraph (a)(4), in the
case of a lease-purchase agreement for
existing housing or for housing to be
constructed, at the time the leasepurchase agreement is signed; and
under paragraph (a)(5), in the case of
emergency assistance to prevent
homelessness or foreclosure, at the time
the family receives NHHBG assistance.
Section 1006.306, Income Verification
for Receipt of NHHBG Assistance
HUD is proposing to add § 1006.306
to incorporate for the NHHBG program
requirements for initial determination of
income eligibility and periodic
reverification. These requirements are
already implemented for the IHBG
program in § 1000.128, and HUD’s
proposed addition of these requirements
in § 1006.306 would ensure compliance
with NAHASDA and improve
consistency between IHBG and NHHBG
program regulations.
Section 1006.307, Non-Low-Income
Families
HUD is proposing to add § 1006.307
to clarify that a family that was lowincome at the times described in
§ 1006.305 but subsequently becomes a
non-low-income family may continue to
participate in the program in accordance
with the DHHL’s admission and
occupancy policies. HUD proposes to
model this new section off the IHBG
program regulation in § 1000.110(a) to
improve consistency between NHHBG
and IHBG program regulations. Section
1006.307 would exempt these families
from the limitations HUD proposes to
add at § 1006.301(b)(3)(i), and would
permit the DHHL to apply the
additional requirements HUD proposes
to add in § 1006.301(b)(3)(ii) based on
the DHHL’s policies.
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331
Section 1006.310, Rent and LeasePurchase Limitations
HUD is proposing to amend
§ 1006.310 by adding details about
maximum and minimum rents
limitations, flat or income-adjusted rent,
and utilities, to maintain consistency
with IHBG program regulations at
§§ 1000.124 and 1000.126. HUD
proposes to move the last sentence in
§ 1006.310(a), which states the
maximum monthly rent for a lowincome family may not exceed 30
percent of the family’s monthly adjusted
income, to new paragraph (a)(1). New
paragraph (a)(1) would further provide
that the DHHL may compute payments
based on any lesser percentage of the
family’s adjusted income, and while the
Act does not set minimum tenant rent
or homebuyer payments, the DHHL may
do so. HUD proposes to add paragraph
(a)(2) about flat or income-adjusted rent.
Paragraph (a)(2) would provide that flat
rent means the tenant’s rent payment is
set at a specific dollar amount or
specific percent of market rent, incomeadjusted rent means the tenant’s rent
payment varies based on the tenant’s
income (i.e., 30% of monthly adjusted
income), and the DHHL may charge flat
or income-adjusted rents, provided the
rental or homebuyer payment of the
low-income family does not exceed 30
percent of the family’s adjusted income.
New paragraph (a)(3) would permit the
DHHL to include utilities as part of rent
or homebuyer payments if the DHHL
has defined rent or homebuyer
payments as such in its written policies.
Section 1006.375, Other Federal
Requirements
HUD is proposing to amend
§ 1006.375 by removing paragraph (c),
Displacement and relocation, and
redesignating existing paragraphs (d)
and (e) as paragraphs (c) and (d). HUD
is proposing to add paragraph (c)’s
language and requirements with minor
technical changes to new § 1006.377.
HUD is further proposing to amend
§ 1006.375 by adding new paragraph (e),
Section 3, to clarify that requirements
under section 3 of the Housing and
Urban Development Act of 1968 and 24
CFR part 75 apply to the NHHBG
program; and by adding new paragraph
(f), Debarment and suspension, to
clarify that the nonprocurement
debarment and suspension requirements
at 2 CFR part 2424 apply to the NHHBG
program.
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Section 1006.377, Other Federal
Requirements: Displacement,
Relocation, and Acquisition
HUD is proposing to add § 1006.377
which would contain only the existing
displacement and relocation
requirements in current § 1006.375(c)
with minor technical changes to cross
references. HUD proposes this change
for structural reorganization and
readability. Existing § 1006.375(c) is
lengthy and includes definitions
relevant only to displacement and
relocation requirements. Additionally,
HUD is proposing to amend new
§ 1006.377(c) by adding sentences at the
end of paragraph (c) that describe civil
rights requirements included in 24 CFR
576.408(c)(1): that a displaced person
must be advised of his or her rights
under the Fair Housing Act (42 U.S.C.
3601 et seq.); minority persons shall be
given reasonable opportunities to
relocate to comparable and suitable
decent, safe, and sanitary replacement
dwellings, not located in an area of
minority concentration, that are within
their financial means; and, for a
displaced person with a disability, a
unit will not be considered a
comparable replacement dwelling under
the Uniform Relocation Assistance and
Real Property Acquisition Policies Act
of 1970, as amended (URA) unless it is
free of any barriers which would
preclude reasonable ingress, egress, or
use of the dwelling by such displaced
person in accordance with 49 CFR
24.2(a)(8)(vii) and the unit meets the
requirements of section 504 of the
Rehabilitation Act (29 U.S.C. 794).
Section 1006.410, Performance Reports
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HUD is proposing to amend
§ 1006.410 by revising paragraph (a)(2)
to require the DHHL to submit a
performance report within 90 days,
instead of 60 days, of the end of the
DHHL’s fiscal year. HUD is also
proposing to add a new paragraph (a)(3)
that states the DHHL may request an
extension and that HUD will provide a
new date for submission if HUD grants
the extension. Both changes would
improve consistency between the IHBG
requirements at § 1000.514 and the
NHHBG requirements.
Technical Changes for Compliance With
NAHASDA and Consistency With IHBG
HUD is proposing to make minor
technical revisions to several provisions
to conform to statutory requirements
and increase consistency with IHBG
regulations. These provisions and
revisions are:
• In § 1006.205, HUD is proposing to
add language to paragraph (a)(9) so that
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it conforms to language in section 202
of NAHASDA and is more consistent
with § 1000.102.
• In § 1006.215, HUD is proposing to
add paragraph (f) so it conforms to
language in section 202 of NAHASDA
and is more consistent with § 1000.102.
• In § 1006.235, HUD is proposing to
revise the title to read Types of
investments and forms of assistance, to
maintain consistency with section 812
of NAHASDA.
• In § 1006.340, HUD is proposing to
revise the cross reference at the end of
paragraph (a) to cite to statutory
requirements, ‘‘Section 812(b) of
NAHASDA’’, instead of regulatory
requirements, ‘‘§ 1006.235’’.
• In §§ 1006.230, 1006.350, 1006.410,
and 1006.420, HUD is also proposing
minor technical amendments.
III. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
Order. Executive Order 13563
(Improving Regulations and Regulatory
Review) directs executive agencies to
analyze regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. HUD is proposing
changes to NHHBG program
requirements and regulations, such as
clarifying that NHHBG funds can be
used for certain affordable housing
activities including project-based rental
assistance, permitting rental assistance
to be provided off the Hawaiian Home
Lands when Congress authorizes such
use through appropriations acts, and
adding or changing requirements for
low-income and non-low-income
families. However, there is no
significant impact because DHHL is the
sole recipient of NHHBG funds. This
proposed rule was not subject to OMB
review. This proposed rule is not a
‘‘significant regulatory action’’ as
defined in section 3(f) of Executive
Order 12866, and is not an economically
significant regulatory action.
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Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.), generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. This
rulemaking proposes to amend HUD
regulations to implement rental housing
assistance for the NHHBG program,
consistent with title VIII of NAHASDA.
These amendments impose no
significant economic impact on a
substantial number of small entities,
and there is only a singular recipient of
funding. Therefore, the undersigned
certifies that this proposed rule will not
have a significant impact on a
substantial number of small entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1531–
1538) (UMRA) establishes requirements
for federal agencies to assess the effects
of their regulatory actions on state,
local, and tribal governments and the
private sector. This proposed rule does
not impose any federal mandates on any
state, local, or tribal governments or the
private sector within the meaning of the
UMRA.
Environmental Review
A Finding of No Significant Impact
with respect to the environment has
been made 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 of No Significant Impact is
available for public inspection between
the hours of 8 a.m. and 5 p.m. weekdays
in the Regulations Division, Office of
General Counsel, Room 10276,
Department of Housing and Urban
Development, 451 Seventh Street SW,
Washington, DC 20410–0500. The
FONSI is also available through the
Federal eRulemaking Portal at https://
www.regulations.gov.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial direct compliance costs on
state and local governments and is not
required by statute, or the rule preempts
state law, unless the agency meets the
consultation and funding requirements
of section 6 of the Order. This proposed
rule does not have federalism
implications and would not impose
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substantial direct compliance costs on
state and local governments nor
preempt state law within the meaning of
the Order.
List of Subjects
24 CFR Part 1006
Community development block
grants; Grant programs—housing and
community development; Grant
programs—Indians; Hawaiian natives;
Low and moderate income housing;
Reporting and recordkeeping
requirements.
For the reasons described in the
preamble, the Department of Housing
and Urban Development proposes to
amend 24 CFR part 1006, as set forth
below:
PART 1006—NATIVE HAWAIIAN
HOUSING BLOCK GRANT PROGRAM
1. Revise the authority citation for part
1006 to read as follows:
■
Authority: 12 U.S.C. 1701x, 1701x–1; 25
U.S.C. 4221 et seq.; 42 U.S.C. 3535(d), Pub.
L. 115–141, Pub. L. 116–6, Pub. L. 116–94,
Pub. L. 116–260, Pub. L. 117–103.
2. In § 1006.10, add in alphabetical
order the definitions for ‘‘Annual
income,’’ ‘‘Homeless family,’’ ‘‘Income,’’
‘‘NAHASDA,’’ ‘‘Person with a
Disability,’’ and ‘‘Project-based rental
assistance,’’ to read as follows:
■
§ 1006.10
Definitions.
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*
*
*
*
*
Annual income has one or more of the
following meanings, as determined by
the Department of Hawaiian Home
Lands:
(1) ‘‘Annual income’’ as defined for
HUD’s Section 8 programs in 24 CFR
part 5, subpart F (except when
determining the income of a homebuyer
for an owner-occupied rehabilitation
project, the value of the homeowner’s
principal residence may be excluded
from the calculation of net family
assets); or
(2) The definition of income as used
by the U.S. Census Bureau. This
definition includes:
(i) Wages, salaries, tips, commissions,
etc.;
(ii) Self-employment income;
(iii) Farm self-employment income;
(iv) Interest, dividends, net rental
income, or income from estates or trusts;
(v) Social security or railroad
retirement;
(vi) Supplemental Security Income,
Aid to Families with Dependent
Children, or other public assistance or
public welfare programs;
(vii) Retirement, survivor, or
disability pensions; and
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(viii) Any other sources of income
received regularly, including Veterans’
(VA) payments, unemployment
compensation, and alimony; or
(3) Adjusted gross income as defined
for purposes of reporting under Internal
Revenue Service (IRS) Form 1040 series
for individual Federal annual income
tax purposes.
*
*
*
*
*
Homeless family means a family who
is without safe, sanitary and affordable
housing even though it may have
temporary shelter provided by the
community, or a family who is homeless
as determined by the DHHL.
*
*
*
*
*
Income means the term ‘‘income’’ as
defined in section 4(9) of NAHASDA.
*
*
*
*
*
NAHASDA means the Native
American Housing Assistance and SelfDetermination Act of 1996 (25 U.S.C.
4101 et seq.).
*
*
*
*
*
Person with a Disability means a
person who, as further explained in 28
CFR 35.108—
(1) Has a physical or mental
impairment which substantially limits
one or more major
life activities;
(2) Has a record of having such an
impairment;
(3) Is regarded as having such an
impairment;
(4) Has a disability as defined in
section 223 of the Social Security Act;
or
(5) Has a developmental disability as
defined in section 102 of the
Developmental Disabilities Assistance
and Bill of Rights Act.
(6) For the purposes of this definition,
the term ‘‘Physical or mental
impairment’’ means:
(i) Any physiological disorder or
condition, cosmetic disfigurement, or
anatomical loss affecting one or more
body systems, such as: neurological,
musculoskeletal, special sense organs,
respiratory (including speech organs),
cardiovascular, reproductive, digestive,
genitourinary, immune, circulatory,
hemic, lymphatic, skin, and endocrine;
or
(ii) Any mental or psychological
disorder such as intellectual disability,
organic brain syndrome, emotional or
mental illness, and specific learning
disability.
(7) For the purposes of this definition,
the term ‘‘physical or mental
impairment’’ includes, but is not limited
to contagious and noncontagious
diseases and conditions such as the
following: orthopedic, visual, speech,
and hearing impairments, and cerebral
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333
palsy, epilepsy, muscular dystrophy,
multiple sclerosis, cancer, heart disease,
diabetes, intellectual disability,
emotional illness, dyslexia and other
specific learning disabilities, Attention
Deficit Hyperactivity Disorder, Human
Immunodeficiency Virus infection
(whether symptomatic or
asymptomatic), tuberculosis, drug
addiction, and alcoholism.
(8) For the purposes of this definition,
the term ‘‘major life activities’’ includes,
but is not limited to:
(i) Caring for oneself, performing
manual tasks, seeing, hearing, eating,
sleeping, walking, standing, sitting,
reaching, lifting, bending, speaking,
breathing, learning, reading,
concentrating, thinking, writing,
communicating, interacting with others,
and working; and
(ii) The operation of a major bodily
function, such as the functions of the
immune system, special sense organs
and skin, normal cell growth, and
digestive, genitourinary, bowel, bladder,
neurological, brain, respiratory,
circulatory, cardiovascular, endocrine,
hemic, lymphatic, musculoskeletal, and
reproductive systems. The operation of
a major bodily function includes the
operation of an individual organ within
a body system.
*
*
*
*
*
Project-based rental assistance means
rental assistance provided through a
contract with the owner of an existing
structure, where the owner agrees to
lease the subsidized units to program
participants. Program participants will
not retain the rental assistance if they
move from the project.
*
*
*
*
*
■ 3. In § 1006.101, revise the
introductory text paragraph and
paragraphs (c) and (d) to read as follows.
§ 1006.101
Housing plans requirements.
The DHHL must submit a housing
plan each year prior to the start of its
fiscal year. The housing plan has two
components, a five-year plan and a oneyear plan, as follows:
*
*
*
*
*
(c) Updates to plan—(1) In general.
Subject to paragraph (c)(2) of this
section, after the housing plan has been
submitted for a fiscal year, the DHHL
may comply with the provisions of this
section for any succeeding fiscal year
with respect to information included for
the 5-year period under paragraph (a) of
this section by submitting only such
information regarding such changes as
may be necessary to update the 5-year
period of the plan previously submitted.
Information for the 1-year period under
paragraph (b) of this section must be
submitted each fiscal year.
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(2) Complete plans. The DHHL shall
submit a complete plan that includes a
new five-year plan under this section
not later than 4 years after submitting an
initial plan, and not less frequently than
every 4 years thereafter.
(d) Amendments to plan. The DHHL
must submit any amendment to the oneyear housing plan for HUD review
before undertaking any new activities
that are not addressed in the current
plan that was reviewed by HUD and
found to be in compliance with section
803 of NAHASDA and this part. The
amendment must include a description
of the new activity and a revised budget
reflecting the changes. HUD will review
the revised plan and will notify DHHL
within 30 days whether the amendment
complies with applicable requirements.
■ 4. Revise § 1006.201 to read as
follows:
§ 1006.201
activities.
Eligible affordable housing
Eligible affordable housing activities
are development, housing services,
housing management services, crime
prevention and safety activities, and
model activities. Affordable housing
activities under this part are activities
conducted in accordance with subpart D
of this part to develop, operate,
maintain, or support housing for rental
or homeownership; or provide services
with respect to affordable housing
through the activities described in this
subpart. NHHBG funds may only be
used for eligible activities that are
consistent with the DHHL’s housing
plan.
■ 5. In § 1006.205, revise paragraph
(a)(9) to read as follows:
§ 1006.205
Development.
(a) * * *
(9) The development and
rehabilitation of utilities, necessary
infrastructure, and utility services;
*
*
*
*
*
§ 1006.210
[Amended]
6. In § 1006.210, remove paragraph (g)
and redesignate paragraph (h) as
paragraph (g).
■ 7. In § 1006.215, revise paragraph (e),
redesignate paragraph (f) as paragraph
(g), and add new paragraph (f) to read
as follow:
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■
§ 1006.215
Housing management services.
*
*
*
*
*
(e) Management of tenant-based rental
assistance;
(f) The costs of operation and
maintenance of units developed with
NHHBG funds; and
*
*
*
*
*
■ 8. Add § 1006.227 to read as follows:
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§ 1006.227 Tenant-based or project-based
rental assistance.
(a) NHHBG funds may be used for the
provision of tenant-based rental
assistance, which may include security
deposits and first month’s rent, and
project-based rental assistance.
(1) Rental assistance must comply
with the requirements of this part and
be provided to eligible families.
(2) Rental assistance may be provided
to eligible families both on and off the
Hawaiian Home Lands provided such
use is consistent with the applicable
appropriations acts governing the use of
the NHHBG funds.
(b) [Reserved].
§ 1006.230
[Amended]
9. In § 1006.230, paragraph (d),
remove the citation ‘‘2 CFR part 200,
subpart E.’’ and add in its place the
citation ‘‘2 CFR part 200, subpart E.’’,
and in paragraph (f), remove the text
‘‘§§ 1006.370 and 1006.375 of this part’’
and add in its place the text
‘‘§§ 1006.370, 1006.375, and 1006.377’’.
■
§ 1006.235
[Amended]
10. In § 1006.235, revise the section
heading to read ‘‘§ 1006.235 Types of
investments and forms of assistance.’’.
■ 11. Revise § 1006.301 to read as
follows:
■
§ 1006.301
Eligible families.
(a) General. Assistance for eligible
housing activities under the Act and
this part is limited to low-income Native
Hawaiian families who are eligible to
reside on the Hawaiian Home Lands,
except as provided under paragraphs (b)
and (c) of this section.
(b) Exception to low-income
requirement—(1) Other Native
Hawaiian families. The DHHL may
provide assistance for homeownership
activities, which may include assistance
in conjunction with loan guarantee
activities to Native Hawaiian families
who are not low-income families, as
approved by HUD, to address a need for
housing for those families that cannot be
reasonably met without that assistance.
DHHL must determine and document
the need for housing for each family that
cannot reasonably be met without such
assistance.
(2) HUD approval. HUD approval is
required, except as provided in
paragraph (b)(3)(i) of this section, if the
DHHL plans to use grant amounts
provided under the Act for assistance in
accordance with paragraph (b)(1) of this
section. HUD approval shall be obtained
by DHHL submitting proposals in its
housing plan, by amendment of the
housing plan, or by special request to
HUD at any time.
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(3) Limitations. (i) DHHL may use up
to 10 percent of the amount planned in
its Housing Plan for its fiscal year for
families whose income is 81 to 100
percent of the median income without
HUD approval. HUD approval is
required if DHHL plans to use more
than 10 percent of the amount planned
for its fiscal year for such assistance or
to provide housing for families with
income over 100 percent of median
income.
(ii) Non-low-income families cannot
receive the same benefits provided lowincome Native Hawaiian families. The
amount of assistance non-low-income
families may receive will be determined
by DHHL as established in its written
policies.
(iii) The requirements set forth in
paragraphs (b)(3)(i) and (ii) of this
section do not apply to other families
who are non-low income that DHHL has
determined to be essential under
§ 1006.301(c).
(c) Other families. The DHHL may
provide housing or NHHBG assistance
to a family that is not low-income and
is not a Native Hawaiian family without
HUD approval if the DHHL documents
that:
(1) The presence of the family in the
housing involved is essential to the
well-being of Native Hawaiian families;
and
(2) The need for housing for the
family cannot be reasonably met
without the assistance.
(d) Written policies. The DHHL must
develop, follow, and have available for
review by HUD written policies
governing the eligibility, admission, and
occupancy of families for housing
assisted with NHHBG funds and
governing the selection of families
receiving other assistance under the Act
and this part.
■ 12. In § 1006.305, revise paragraphs
(a) and (b) to read as follows:
§ 1006.305 Low-income requirement and
income targeting.
(a) In general. Housing qualifies as
affordable housing for purposes of the
Act and this part, provided that the
family occupying the unit is low-income
at the following times:
(1) In the case of rental housing, at the
time of the family’s initial occupancy of
such unit;
(2) In the case of housing for
homeownership, at the time of
purchase. When DHHL enters into a
loan contract with the family for
NHHBG assistance to purchase or
construct a homeownership unit, the
time of purchase means the time that
loan contract is executed;
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(3) In the case of owner-occupied
housing units, at the time the family
receives NHHBG assistance;
(4) In the case of a lease-purchase
agreement for existing housing or for
housing to be constructed, at the time
the lease-purchase agreement is signed;
and
(5) In the case of emergency assistance
to prevent homelessness or foreclosure,
at the time the family receives NHHBG
assistance.
(b) Affordability requirements.
NHHBG-assisted rental and
homeownership units must meet the
affordability requirements for the
remaining useful life of the property, as
determined by HUD, or such other
period as HUD determines in
accordance with section 813(a)(2)(B) of
the Act.
*
*
*
*
*
■ 13. Add § 1006.306 to read as follows:
§ 1006.306 Income verification for receipt
of NHHBG assistance.
(a) Initial determination of eligibility.
DHHL must verify that the family is
income eligible based on anticipated
annual income. The family is required
to provide documentation to verify this
determination. DHHL is required to
maintain the documentation on which
the determination of eligibility is based.
(b) Periodic verification. DHHL may
require a family to periodically verify its
income in order to determine housing
payments or continued occupancy
consistent with DHHL’s written
policies. When income verification is
required, the family must provide
documentation which verifies its
income, and this documentation must
be retained by DHHL.
■ 14. Add § 1006.307 to read as follows:
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§ 1006.307
Non-low-income families.
(a) A family that was low-income at
the times described in § 1006.305 but
subsequently becomes a non-lowincome family may continue to
participate in the program in accordance
with DHHL’s admission and occupancy
policies. The 10 percent limitation in
§ 1006.301(b)(3)(i) in this part shall not
apply to such families. Such families
may be made subject to the additional
requirements in § 1006.301(b)(3)(ii) of
this part based on those policies.
(b) [Reserved]
■ 15. Revise § 1006.310 to read as
follows:
§ 1006.310 Rent and lease-purchase
limitations.
(a) Rents. The DHHL must develop
and follow written policies governing
rents for rental housing units assisted
with NHHBG funds, including methods
by which rents are determined.
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(1) Maximum and minimum rent. The
maximum monthly tenant rent payment
for a low-income family may not exceed
30 percent of the family’s monthly
adjusted income. DHHL may also decide
to compute rental or homebuyer
payments on any lesser percentage of
the adjusted income of the family. The
Act does not set minimum rent or
homebuyer payments; however, DHHL
may do so.
(2) Flat or income-adjusted rent. Flat
rent means the tenant’s rent payment is
set at a specific dollar amount or
specific percent of market rent. Incomeadjusted rent means the tenant’s rent
payment varies based on the tenant’s
income (i.e., 30% of monthly adjusted
income). DHHL may charge flat or
income-adjusted rents, provided the
rental or homebuyer payment of the
low-income family does not exceed 30
percent of the family’s adjusted income.
(3) Utilities. Utilities may be
considered a part of rent or homebuyer
payments if DHHL decides to define
rent or homebuyer payments to include
utilities in its written policies on rents
and homebuyer payments required by
section 811(a)(1) of NAHASDA. DHHL
may define rents and homebuyer
payments to exclude utilities.
(b) Lease-purchase. If DHHL assists
low-income families to become
homeowners of rental housing through
a long-term lease (i.e., 10 or more years)
with an option to purchase the housing,
DHHL must develop and follow written
policies governing lease-purchase
payments (i.e., homebuyer payments)
for rental housing units assisted with
NHHBG funds, including methods by
which payments are determined. The
maximum monthly payment for a lowincome family may not exceed 30
percent of the family’s monthly adjusted
income.
(c) Exception for certain
homeownership payments.
Homeownership payments for families
who are not low-income, as permitted
under § 1006.301(b), are not subject to
the requirement that homebuyer
payments may not exceed 30 percent of
the monthly adjusted income of that
family.
(d) Applicability. Low-income
families who receive homeownership
assistance other than lease-purchase
assistance are not subject to the
limitations in paragraphs (a) and (b) of
this section.
§ 1006.340
[Amended]
16. In § 1006.340, paragraph (a),
remove the citation ‘‘§ 1006.235’’ and
add in its place the citation ‘‘section
812(b) of NAHASDA’’.
■
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§ 1006.350
335
[Amended]
17. In § 1006.350, paragraph (a),
remove the word ‘‘decisionmaking’’ and
add in its place the word ‘‘decisionmaking’’.
■ 18. Revise § 1006.375 to read as
follows:
■
§ 1006.375
Other Federal requirements.
(a) Lead-based paint. The following
subparts of HUD’s lead-based paint
regulations at part 35 of this title, which
implement the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C.
4822–4846) and the Residential LeadBased Paint Hazard Reduction Act of
1992 (42 U.S.C. 4851–4856), apply to
the use of assistance under this part:
(1) Subpart A, ‘‘Disclosure of Known
Lead-Based Paint Hazards Upon Sale or
Lease of Residential Property’’;
(2) Subpart B, ‘‘General Lead-Based
Paint Requirements and Definitions for
All Programs’’;
(3) Subpart H, ‘‘Project-Based Rental
Assistance’’;
(4) Subpart J, ‘‘Rehabilitation’’;
(5) Subpart K, ‘‘Acquisition, Leasing,
Support Services, or Operation’’;
(6) Subpart M, ‘‘Tenant-Based Rental
Assistance’’; and
(7) Subpart R, ‘‘Methods and
Standards for Lead-Based Paint Hazard
Evaluation and Hazard Reduction
Activities’’.
(b) Drug-free workplace. The DrugFree Workplace Act of 1988 (41 U.S.C.
701, et seq.) and HUD’s implementing
regulations in 2 CFR part 2429 apply to
the use of assistance under this part.
(c) Audits. The DHHL must comply
with the requirements of the Single
Audit Act and 2 CFR part 200, subpart
F, with the audit report providing a
schedule of expenditures for each grant.
A copy of each audit must be submitted
to the Federal Audit Clearinghouse.
(d) Housing counseling. Housing
counseling, as defined in § 5.100, that is
funded with or provided in connection
with NHHBG funds must be carried out
in accordance with 24 CFR 5.111.
(e) Section 3. Requirements under
section 3 of the Housing and Urban
Development Act of 1968 and 24 CFR
part 75 apply.
(f) Debarment and suspension. The
Nonprocurement debarment and
suspension requirements at 2 CFR part
2424 are applicable.
■ 19. Add § 1006.377 to read as follows:
§ 1006.377 Other Federal requirements:
Displacement, relocation, and acquisition.
The following relocation and real
property acquisition policies are
applicable to programs developed or
operated under the Act and this part:
(a) Real property acquisition
requirements. The acquisition of real
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property for an assisted activity is
subject to the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act of 1970, as
amended (URA) and the requirements of
49 CFR part 24, subpart B.
(b) Minimize displacement. Consistent
with the other goals and objectives of
the Act and this part, the DHHL shall
assure that it has taken all reasonable
steps to minimize the displacement of
persons (households, businesses,
nonprofit organizations, and farms) as a
result of a project assisted under the Act
and this part.
(c) Relocation assistance for displaced
persons. A displaced person (defined in
paragraph (f) of this section) must be
provided relocation assistance at the
levels described in, and in accordance
with the URA requirements of 49 CFR
part 24. A displaced person must be
advised of his or her rights under the
Fair Housing Act (42 U.S.C. 3601 et
seq.). Whenever possible, minority
persons shall be given reasonable
opportunities to relocate to comparable
and suitable decent, safe, and sanitary
replacement dwellings, not located in
an area of minority concentration, that
are within their financial means. For a
displaced person with a disability, a
unit is not a comparable replacement
dwelling under the URA unless it is free
of any barriers which would preclude
reasonable ingress, egress, or use of the
dwelling by such displaced person in
accordance with 49 CFR 24.2(a)(8)(vii)
and the unit meets the requirements of
section 504 of the Rehabilitation Act (29
U.S.C. 794).
(d) Appeals to the DHHL. A person
who disagrees with the DHHL’s
determination concerning whether the
person qualifies as a ‘‘displaced
person,’’ or the amount of relocation
assistance for which the person is
eligible, may file a written appeal of that
determination with the DHHL in
accordance with URA requirements of
49 CFR 24.10.
(e) Responsibility of DHHL. (1) The
DHHL shall certify that it will comply
with the URA requirements of 49 CFR
part 24, and the requirements of this
section. The DHHL shall ensure such
compliance notwithstanding any third
party’s contractual obligation to the
DHHL to comply with the provisions in
this section.
(2) The cost of required relocation
assistance is an eligible project cost in
the same manner and to the same extent
as other project costs. However, such
assistance may also be paid for with
funds available to the DHHL from any
other source.
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(3) The DHHL shall maintain records
in sufficient detail to demonstrate
compliance with this section.
(f) Definition of displaced person. (1)
For purposes of this section, the term
‘‘displaced person’’ means any person
(household, business, nonprofit
organization, or farm) that moves from
real property, or moves his or her
personal property from real property,
permanently, as a direct result of
rehabilitation, demolition, or
acquisition for a project assisted under
the Act. The term ‘‘displaced person’’
includes, but is not limited to:
(i) A tenant-occupant of a dwelling
unit who moves from the building/
complex permanently after the
submission to HUD of a housing plan
that is later approved;
(ii) Any person, including a person
who moves before the date the housing
plan is submitted to HUD, that the
DHHL determines was displaced as a
direct result of acquisition,
rehabilitation, or demolition for the
assisted project;
(iii) A tenant-occupant of a dwelling
unit who moves from the building/
complex permanently after execution of
the agreement between the DHHL and
HUD, if the move occurs before the
tenant is provided written notice
offering him or her the opportunity to
lease and occupy a suitable, decent, safe
and sanitary dwelling in the same
building/complex, under reasonable
terms and conditions, upon completion
of the project. Such reasonable terms
and conditions include a monthly rent
and estimated average monthly utility
costs that do not exceed the greater of:
(A) The tenant-occupant’s monthly
rent and estimated average monthly
utility costs before the agreement; or
(B) 30 percent of gross household
income.
(iv) A tenant-occupant of a dwelling
who is required to relocate temporarily,
but does not return to the building/
complex, if either:
(A) The tenant-occupant is not offered
payment for all reasonable out-of-pocket
expenses incurred in connection with
the temporary relocation, including the
cost of moving to and from the
temporarily occupied unit, any
increased housing costs and incidental
expenses; or
(B) Other conditions of the temporary
relocation are not reasonable.
(v) A tenant-occupant of a dwelling
who moves from the building/complex
after he or she has been required to
move to another dwelling unit in the
same building/complex in order to carry
out the project, if either:
(A) The tenant-occupant is not offered
reimbursement for all reasonable out-of-
PO 00000
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pocket expenses incurred in connection
with the move; or
(B) Other conditions of the move are
not reasonable.
(2) Notwithstanding the provisions of
this section for the definition of
‘‘Displaced Person,’’ a person does not
qualify as a ‘‘displaced person’’ (and is
not eligible for relocation assistance
under the URA or this section), if:
(i) The person moved into the
property after the submission of the
housing plan to HUD, but before signing
a lease or commencing occupancy, was
provided written notice of the project,
its possible impact on the person (e.g.,
the person may be displaced,
temporarily relocated or suffer a rent
increase) and the fact that the person
would not qualify as a ‘‘displaced
person’’ or for any assistance provided
under this section as a result of the
project;
(ii) The person is ineligible under 49
CFR 24.2(a)(9)(ii); or
(iii) The DHHL determines the person
is not displaced as a direct result of
acquisition, rehabilitation, or
demolition for an assisted project. To
exclude a person on this basis, HUD
must concur in that determination.
(3) The DHHL may at any time ask
HUD to determine whether a specific
displacement is or would be covered
under this section.
(g) Definition of initiation of
negotiations. For purposes of
determining the formula for computing
the replacement housing assistance to
be provided to a person displaced from
a dwelling as a direct result of
acquisition, rehabilitation, or
demolition of the real property, the term
‘‘initiation of negotiations’’ means the
execution of the written agreement
covering the acquisition, rehabilitation,
or demolition (See 49 CFR 24.2(a)(15)).
■ 20. In § 1006.410, revise paragraph
(a)(2), add paragraph (a)(3), and revise
paragraph (c)(1) to read as follows:
§ 1006.410
Performance reports.
(a) * * *
(2) Submit a report in a form
acceptable to HUD, within 90 days of
the end of the DHHL’s fiscal year, to
HUD describing the conclusions of the
review.
(3) DHHL may submit a written
request for an extension of the deadline.
HUD will establish a new date for
submission if the extension is granted.
*
*
*
*
*
(c) * * *
(1) Comments by Native Hawaiians. In
preparing a report under this section,
the DHHL shall make the report
publicly available to Native Hawaiians
who are eligible to reside on the
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Hawaiian Home Lands and give a
sufficient amount of time to permit
them to comment on that report, in such
manner and at such time as the DHHL
may determine, before it is submitted to
HUD.
*
*
*
*
*
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§ 1006.420
[Amended]
21. In § 1006.420, paragraph (c), add
the paragraph heading ‘‘Failure to
maintain records.’’ before the words
■
PO 00000
‘‘The DHHL’s failure to maintain
records’’.
Dominique Blom,
General Deputy Assistant Secretary for Public
and Indian Housing.
[FR Doc. 2022–28020 Filed 1–3–23; 8:45 am]
BILLING CODE 4210–67–P
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Agencies
[Federal Register Volume 88, Number 2 (Wednesday, January 4, 2023)]
[Proposed Rules]
[Pages 328-337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28020]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1006
[Docket No. FR-6273-P-01]
RIN 2577-AD13
Implementing Rental Housing Assistance for the Native Hawaiian
Housing Block Grant Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: Through this notice of proposed rulemaking, the Department of
Housing and Urban Development (HUD) is proposing to amend its
regulations covering rental housing assistance for the Native Hawaiian
Housing Block Grant (NHHBG) program, consistent with the Native
American Housing Assistance and Self-Determination Act of 1996
(NAHASDA). HUD proposes to clarify and improve consistency with
NAHASDA's statutory requirements and HUD's Indian Housing Block Grant
program regulations. This proposed rule would also help make affordable
housing opportunities, in the form of NHHBG-assisted rental housing,
more available to eligible Native Hawaiian families.
DATES: Comment Due Date: March 6, 2023.
ADDRESSES: There are two methods for submitting public comments. All
submissions must refer to the above docket number and title.
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.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
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 them immediately available to
the public. Comments submitted electronically through the
www.regulations.gov website can be viewed by other commenters and
interested members of the public. Commenters should follow the
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
proposed rule.
No Facsimile Comments. Facsimile (fax) comments are not acceptable.
Public Inspection of Public Comments. HUD will make all properly
submitted comments and communications 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, you must
schedule an appointment in advance to review the public comments by
calling the Regulations Division at 202-708-3055 (this is not a toll-
free number). HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech and communication disabilities. To learn more about how to
make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs. Copies of all
comments submitted are available for inspection and downloading at
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Claudine Allen, Lead Native Hawaiian
Program Specialist, Office of Native American Programs, HUD Honolulu
Field Office, 1003 Bishop Street, Suite 2100, Honolulu, HI 96813;
telephone number 808-457-4674 (this is not a toll-free number). HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech and
communication disabilities. To learn more about how to make an
accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
The Hawaiian Homelands Homeownership Act of 2000 (HHH Act) was
enacted as both title II of the Omnibus Indian Advancement Act (Pub. L.
106-568, 114 Stat. 2868, approved December 27, 2000) and subtitle B of
title V of the American Homeownership and Economic Opportunity Act of
2000 (Pub. L. 106-569, 114 Stat. 2944, approved December 27, 2000).
Section 513 of the HHH Act, Public Law 106-569, amended the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) (NAHASDA) by adding to it a new ``Title VIII--
Housing Assistance for Native Hawaiians''. Title VIII established the
Native Hawaiian
[[Page 329]]
Housing Block Grant (NHHBG) program to provide block grant assistance
for affordable housing for eligible Native Hawaiians,\1\ and section
810 provides statutory authority for NHHBG rental housing assistance.
---------------------------------------------------------------------------
\1\ Section 513 of the HHH Act adds sections 801 through 824,
which authorize this NHHBG program, as title VIII of NAHASDA.
Although NAHASDA may be referenced throughout this proposed rule,
NHHBG serves Native Hawaiians specifically.
---------------------------------------------------------------------------
In accordance with title VIII of NAHASDA, the NHHBG program must
primarily benefit low-income Native Hawaiian families who are eligible
to reside on the Hawaiian Home Lands. Native Hawaiian families eligible
to reside on the Hawaiian Home Lands experience more significant
housing challenges compared to Native Hawaiian households overall,
including other Hawaii residents and Native Hawaiians already residing
on the Hawaiian Home Lands.
On June 13, 2002, HUD published an interim rule (``interim rule'')
adding a new 24 CFR part 1006 to implement the block grant assistance
program for Native Hawaiians. 67 FR 40773. HUD modeled the NHHBG
regulations after the Indian Housing Block Grant (IHBG) regulations
implemented at 24 CFR part 1000 because the NHHBG and IHBG programs are
authorized under the same statute and have overlapping requirements
that apply to both programs.\2\
---------------------------------------------------------------------------
\2\ 67 FR 40773; see Native American Housing Assistance and
Self-Determination Act of 1996 [hereinafter NAHASDA] sections 810-
811, 25 U.S.C. 4229-30. There are also differences between the
statutory authorities governing the IHBG and NHHBG programs. In
2008, the Native American Housing Assistance and Self-Determination
Reauthorization Act of 2008 (Pub. L. 110-411) (NAHASDA
Reauthorization Act), made several changes to, inter alia, statutory
requirements governing HUD's IHBG program, and implemented statutory
changes to NAHASDA made by several laws enacted between 1998 and
2005. See 77 FR 71513. The NAHASDA Reauthorization Act did not amend
statutory provisions governing block grant assistance for Native
Hawaiians. See Native American Housing Assistance and Self-
Determination Reauthorization Act of 2008, Public Law 110-411, 122
Stat. 4319-35.
---------------------------------------------------------------------------
The interim rule established program requirements pertaining to
homeownership and rental assistance authorized under section 810 of
title VIII of NAHASDA.\3\ The new 24 CFR part 1006 as implemented by
the interim rule closely followed the statute with some differences for
clarification. Part 1006 established requirements such as:
applicability, definitions, and waivers; what the Department of
Hawaiian Home Lands (DHHL) must include in its housing plan that it
must submit to HUD for each Federal fiscal year grant; eligible program
activities, including development, housing services, housing management
services, crime prevention and safety activities and model activities;
requirements related to income eligibility and compliance with
applicable Federal laws; and reporting, performance reviews, and how to
address and remedy noncompliance. HUD has not comprehensively reviewed
or amended 24 CFR part 1006 since this interim rulemaking.
---------------------------------------------------------------------------
\3\ NAHASDA section 810(a), 25 U.S.C. 4229(a).
---------------------------------------------------------------------------
Prior to fiscal year 2020, the DHHL, the sole recipient of the
NHHBG, used NHHBG funds primarily for homeownership housing assistance.
In 2019, Hawaii's governor approved administrative rules allowing the
DHHL to expand residential lease offerings to include rental
housing.\4\ HUD received feedback from the DHHL about the DHHL's rental
housing projects currently in development. HUD then reviewed its
regulations and determined they do not adequately explain how NHHBG
funds may be used for rental assistance and could be revised to provide
additional details to better support a fully successful rental housing
program administered by the DHHL. This review has prompted HUD's
proposal to amend NHHBG program regulations in this notice of proposed
rulemaking.
---------------------------------------------------------------------------
\4\ Dep't of Haw. Home Lands, Adoption of Chapter 10-7 Hawaii
Administrative Rules (2019), https://dhhl.hawaii.gov/wp-content/uploads/2020/02/HAR-Ch-10-7_Eff-Aug-17-2019-1.pdf.
---------------------------------------------------------------------------
Two of HUD's proposals require further background discussion.
First, NAHASDA requires HUD to establish certain program requirements
for both IHBG and NHHBG. On July 26, 2007, HUD amended the IHBG
regulations at 24 CFR part 1000 to reflect these requirements. 72 FR
41211. Pursuant to authority in section 404(c) of NAHASDA, HUD revised
Sec. 1000.514 to require IHBG recipients to submit Annual Performance
Reports within 90 days, instead of 60 days, of the end of their program
year. HUD did not make a corresponding change to the NHHBG provision in
Sec. 1006.410, Performance reports.
Second, HUD has identified one provision, Sec. 1006.101, Housing
plan requirements, where HUD has flexibility to implement regulatory
requirements different than those in the IHBG framework due to
differences in underlying statutory language for the NHHBG and IHBG
programs. Under section 803 of NAHASDA, 25 U.S.C. 4223, the DHHL must
submit a housing plan ``each fiscal year;'' and no deadline is
specified. Section 1006.101 currently requires submission of a housing
plan ``for each Federal Fiscal Year grant.'' The Native American
Housing Assistance and Self-Determination Reauthorization Act of 2008
(Pub. L. 110-411) (NAHASDA Reauthorization Act) amended, inter alia,
statutory requirements for submission of housing plans under the IHBG
program; the amended statute requires submission no later than 75 days
before the beginning of a program year.\5\ However, the NAHASDA
Reauthorization Act did not amend statutory provisions governing the
NHHBG program.\6\ Accordingly, HUD published a final rule in the
Federal Register on December 3, 2012, 77 FR 71513, that revised IHBG
program regulations at 24 CFR part 1000 to conform to new statutory
requirements, including 24 CFR 1000.214 governing the deadline for
submission of Indian housing plans under the IHBG program. HUD did not
amend any NHHBG regulations in that final rule.
---------------------------------------------------------------------------
\5\ NAHASDA Reauthorization Act section 102 (amending section
102 of NAHASDA, 25 U.S.C. 4112).
\6\ See generally NAHASDA Reauthorization Act of 2008, Public
Law 110-411, 122 Stat. 4319-35.
---------------------------------------------------------------------------
II. This Proposed Rule
Given the need to clarify the rental assistance provisions in HUD's
current NHHBG regulations and because HUD has not comprehensively
reviewed or amended 24 CFR part 1006 in over 20 years, HUD is proposing
to amend its regulations to clarify how the funding recipient may use
NHHBG program funds for rental housing assistance, as authorized by
title VIII of NAHASDA. These changes should relieve burden on the
funding recipient in implementing rental assistance, directly help low-
income Native Hawaiian families who need rental assistance, and clarify
the tools available for HUD to monitor and enforce program
requirements. This proposed rule would help make affordable housing
opportunities, in the form of NHHBG-assisted rental housing, more
available to Native Hawaiian families who are not ready for or do not
desire homeownership housing, and who otherwise may be experiencing
overcrowded conditions, lack of affordability, and/or homelessness.
HUD is proposing in this rulemaking to amend 24 CFR part 1006 to
ensure compliance with the NHHBG program's statutory requirements;
promote consistency between NHHBG and IHBG program regulations where
the programs' statutory requirements overlap or where inconsistencies
exist between the NHHBG and IHBG regulatory frameworks; and add details
that would improve the NHHBG
[[Page 330]]
regulatory framework governing rental assistance.
Section 1006.10, Definitions
HUD is proposing to add definitions in Sec. 1006.10 for each of
the reasons identified in the most immediately preceding paragraph.
HUD is proposing to add a definition for ``Annual income'' that
matches the definition in Sec. 1000.10. This term is currently used in
part 1006 but does not have a specific definition. The proposed
definition would allow for discretion by the Department of Hawaiian
Home Lands to use the Section 8 programs definition in 24 CFR part 5,
the definition of income as used by the U.S. Census Bureau, or adjusted
gross income as defined for purposes of reporting under Internal
Revenue Service (IRS) Form 1040 series for individual Federal annual
income tax purposes.
HUD is proposing to add definitions for ``Homeless family'' and
``Person with a Disability''. These terms are currently used in part
1006 but do not have specific definitions. HUD's proposed definition
for ``Person with a Disability'' is consistent with the definition of
person with a disability in HUD's regulations for section 504 of the
Rehabilitation Act of 1973 in 24 CFR 8.3, as amended by the Americans
with Disabilities Act (ADA) Amendments Act of 2008, see 42 U.S.C.
12102(3)(B). The provisions and rules of construction in 28 CFR 35.108
are necessary when applying the definition of ``Person with a
Disability'' in this proposed rule.
HUD is proposing to add a definition for ``Income'' that clarifies
this term has the meaning provided in the definition of ``Income'' in
section 4(9) of NAHASDA. The statute defines ``Income'' as income from
all sources of each member of the household, as determined according to
criteria determined by HUD, and provides for three categories of
amounts that may not be considered income: amounts not actually
received by the family, certain amounts received under the Social
Security Act, and amounts received for certain disability compensation
or as dependency and indemnity compensation received by veterans or
their surviving family members.
HUD is proposing to add a definition for ``NAHASDA'' that provides
the full title, Native American Housing Assistance and Self-
Determination Act of 1996, and United States Code citation, 25 U.S.C.
4101 et seq.
HUD is proposing to add a definition for ``Project-based rental
assistance'' since HUD is proposing to add project-based rental
assistance requirements in new Sec. 1006.227, Tenant-based or project-
based rental assistance. The definition would provide that project-
based rental assistance means rental assistance provided through a
contract with the owner of an existing structure, where the owner
agrees to lease the subsidized units to program participants. The
definition would also provide that program participants would not
retain rental assistance if they move from the project.
Section 1006.101, Housing Plan Requirements
In this proposed rule, HUD is proposing to amend Sec. 1006.101 by
revising the introductory text of Sec. 1006.101 to clarify that the
DHHL must submit a housing plan before the start of its fiscal year.
This is consistent with NHHBG statutory requirements and provides a
clear deadline.
HUD is also proposing to amend Sec. 1006.101 by making technical
revisions to the introductory text to clarify that the housing plan has
two components, a five-year plan and a one-year plan. HUD also proposes
clarifying amendments to paragraphs (c) and (d). HUD is proposing to
revise paragraph (c)(1) to clarify that the five-year plan may be
changed as necessary to update it after its initial submission, but the
information for the one-year plan must be submitted annually. HUD
proposes revising paragraph (c)(2) to clarify that complete plans must
include a new five-year plan. Paragraph (d) currently requires that,
before undertaking new activities not addressed in a current one-year
housing plan, the DHHL must submit to HUD for review any amendment to
the plan. HUD proposes to revise this paragraph to clarify that the
current one-year plan must have been reviewed by HUD and determined to
comply with section 803 of NAHASDA.
Section 1006.201, Eligible Affordable Housing Activities
HUD is proposing to amend Sec. 1006.201 by adding language that
clarifies that eligible affordable housing activities may include those
conducted in accordance with subpart D of part 1006 and that develop,
operate, maintain, or support housing for rental or homeownership, or
provide services with respect to affordable housing through the
activities described in subpart C of part 1006. This added language
improves consistency between Sec. 1006.201 and statutory language.\7\
---------------------------------------------------------------------------
\7\ 25 U.S.C. 4229(a).
---------------------------------------------------------------------------
Section 1006.210, Housing Services
HUD is proposing to amend Sec. 1006.210 by removing existing
paragraph (g) and redesignating existing paragraph (h) as new paragraph
(g). HUD proposes to move the existing language in Sec. 1006.210(g) to
a new section, Sec. 1006.227, Tenant-based or project-based rental
assistance, paragraph (a)--HUD is adding new Sec. 1006.227 that
provides that NHHBG funds may be used for the provision of tenant-based
(and project-based) rental assistance, and that provides further
details about how funds may be used for such purposes. Existing Sec.
1006.210(g) speaks to these details, so HUD proposes moving this
language to the new section to eliminate redundancy and to efficiently
organize HUD's regulations on the use of funds for tenant-based rental
assistance.
Section 1006.227, Tenant-Based or Project-Based Rental Assistance
HUD is proposing to add Sec. 1006.227 that describes in detail how
NHHBG funds may be used for tenant-based rental assistance and project-
based rental assistance. HUD proposes to model this new section off
Sec. 1000.103 to maintain consistency between IHBG and NHHBG
regulations. However, HUD proposes slightly different language from
Sec. 1000.103 to conform to NHHBG statutory requirements. Paragraph
(a) of Sec. 1006.227 would explicitly authorize use of NHHBG funds for
tenant-based rental assistance, which may include security deposits and
first month's rent, and project-based rental assistance. Paragraph
(a)(1) of this section would clarify that rental assistance must comply
with the requirements of part 1006 and be provided to eligible
families. In paragraph (a)(2), HUD proposes to incorporate statutory
flexibility providing that DHHL ``may'' use NHHBG funds for rental
assistance for eligible Native Hawaiian families ``both on and off the
Hawaiian Home Lands,'' \8\ when appropriations acts enacted by Congress
authorize such use by the DHHL.
---------------------------------------------------------------------------
\8\ Public Law 115-141; Public Law 116-6; Public Law 116-94;
Public Law 116-260; Public Law 117-103 (emphasis added).
---------------------------------------------------------------------------
Section 1006.301, Eligible Families
HUD is proposing to amend Sec. 1006.301 by adding new paragraphs
(b)(3) and (b)(3)(i) through (iii) to implement limitations on uses of
NHHBG assistance for non-low-income families pursuant to section
809(a)(2)(B)(ii) of NAHASDA. HUD proposes to implement a 10-percent
limitation on the use, if any, of the
[[Page 331]]
amount specified in a housing plan for families whose income is 81 to
100 percent of the median income; specify when the recipient, the DHHL,
must seek HUD's approval; and set out related requirements. New
paragraph (b)(3)(iii) would state that the limitations in the preceding
paragraphs (b)(3)(i) and (ii) do not apply to other families who are
non-low income that the DHHL has determined to be essential under Sec.
1006.301(c).
HUD is proposing to further amend Sec. 1006.301 by revising
paragraph (b)(2) to add a sentence at the end of the paragraph
clarifying that the DHHL must obtain HUD approval by submitting
proposals in its housing plan, by amendment of the housing plan, or by
special request to HUD at any time, where the DHHL would provide
homeownership assistance to Native Hawaiian families who are not low-
income under Sec. 1006.301(b)(1). This revision would improve
consistency with the IHBG program regulation at Sec. 1000.108.
HUD is also proposing to amend Sec. 1006.301 by revising language
in paragraph (b)(1) to clarify that the DHHL may provide homeownership
assistance in conjunction with loan guarantee activities. Section
1006.301(b)(1) currently states the DHHL may provide homeownership
assistance through loan guarantee activities, but such assistance is
not provided through loan guarantee activities alone.
Finally, HUD proposes to revise paragraph (b)(2) to make technical
changes, such as the addition of a cross reference, that conform to
HUD's proposed addition of new paragraph (b)(3) and subordinate
paragraphs (b)(3)(i) through (iii).
Section 1006.305, Low-Income Requirement and Income Targeting
HUD is proposing to amend Sec. 1006.305 by revising existing
paragraph (a) and existing paragraphs (a)(1) and (2) and adding new
paragraphs (a)(3) through (5). HUD proposes these changes to reflect
the typical timeline for families entering programs offered by the
DHHL, the typical timeline for constructing housing, and the
possibility of fluctuating incomes over time.
HUD's proposed revision to paragraph (a) would provide that housing
qualifies as affordable housing for purposes of NAHASDA and part 1006
provided that the family occupying the housing unit is low-income at
the times described in paragraphs (a)(1) through (5).
HUD proposes removing language in paragraph (a)(1) referring to
occupancy by a low-income family to avoid redundancy with new language
proposed in paragraph (a).
HUD proposes removing the last clause of paragraph (a)(2), ``or is
an owner-occupied unit in which the family is low-income at the time it
receives NHHBG assistance'' and adding it as a new paragraph (a)(3).
HUD also proposes to add a sentence to the end of paragraph (a)(2)
providing that when the DHHL enters into a loan contract with the
family for assistance to purchase or construct a homeownership unit,
the time of purchase means the time that loan contract is executed.
HUD proposes adding paragraphs (a)(3) through (5) to further
clarify when housing qualifies as affordable housing: under paragraph
(a)(3), in the case of owner-occupied housing units, at the time the
family receives NHHBG assistance; under paragraph (a)(4), in the case
of a lease-purchase agreement for existing housing or for housing to be
constructed, at the time the lease-purchase agreement is signed; and
under paragraph (a)(5), in the case of emergency assistance to prevent
homelessness or foreclosure, at the time the family receives NHHBG
assistance.
Section 1006.306, Income Verification for Receipt of NHHBG Assistance
HUD is proposing to add Sec. 1006.306 to incorporate for the NHHBG
program requirements for initial determination of income eligibility
and periodic reverification. These requirements are already implemented
for the IHBG program in Sec. 1000.128, and HUD's proposed addition of
these requirements in Sec. 1006.306 would ensure compliance with
NAHASDA and improve consistency between IHBG and NHHBG program
regulations.
Section 1006.307, Non-Low-Income Families
HUD is proposing to add Sec. 1006.307 to clarify that a family
that was low-income at the times described in Sec. 1006.305 but
subsequently becomes a non-low-income family may continue to
participate in the program in accordance with the DHHL's admission and
occupancy policies. HUD proposes to model this new section off the IHBG
program regulation in Sec. 1000.110(a) to improve consistency between
NHHBG and IHBG program regulations. Section 1006.307 would exempt these
families from the limitations HUD proposes to add at Sec.
1006.301(b)(3)(i), and would permit the DHHL to apply the additional
requirements HUD proposes to add in Sec. 1006.301(b)(3)(ii) based on
the DHHL's policies.
Section 1006.310, Rent and Lease-Purchase Limitations
HUD is proposing to amend Sec. 1006.310 by adding details about
maximum and minimum rents limitations, flat or income-adjusted rent,
and utilities, to maintain consistency with IHBG program regulations at
Sec. Sec. 1000.124 and 1000.126. HUD proposes to move the last
sentence in Sec. 1006.310(a), which states the maximum monthly rent
for a low-income family may not exceed 30 percent of the family's
monthly adjusted income, to new paragraph (a)(1). New paragraph (a)(1)
would further provide that the DHHL may compute payments based on any
lesser percentage of the family's adjusted income, and while the Act
does not set minimum tenant rent or homebuyer payments, the DHHL may do
so. HUD proposes to add paragraph (a)(2) about flat or income-adjusted
rent. Paragraph (a)(2) would provide that flat rent means the tenant's
rent payment is set at a specific dollar amount or specific percent of
market rent, income-adjusted rent means the tenant's rent payment
varies based on the tenant's income (i.e., 30% of monthly adjusted
income), and the DHHL may charge flat or income-adjusted rents,
provided the rental or homebuyer payment of the low-income family does
not exceed 30 percent of the family's adjusted income. New paragraph
(a)(3) would permit the DHHL to include utilities as part of rent or
homebuyer payments if the DHHL has defined rent or homebuyer payments
as such in its written policies.
Section 1006.375, Other Federal Requirements
HUD is proposing to amend Sec. 1006.375 by removing paragraph (c),
Displacement and relocation, and redesignating existing paragraphs (d)
and (e) as paragraphs (c) and (d). HUD is proposing to add paragraph
(c)'s language and requirements with minor technical changes to new
Sec. 1006.377. HUD is further proposing to amend Sec. 1006.375 by
adding new paragraph (e), Section 3, to clarify that requirements under
section 3 of the Housing and Urban Development Act of 1968 and 24 CFR
part 75 apply to the NHHBG program; and by adding new paragraph (f),
Debarment and suspension, to clarify that the nonprocurement debarment
and suspension requirements at 2 CFR part 2424 apply to the NHHBG
program.
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Section 1006.377, Other Federal Requirements: Displacement, Relocation,
and Acquisition
HUD is proposing to add Sec. 1006.377 which would contain only the
existing displacement and relocation requirements in current Sec.
1006.375(c) with minor technical changes to cross references. HUD
proposes this change for structural reorganization and readability.
Existing Sec. 1006.375(c) is lengthy and includes definitions relevant
only to displacement and relocation requirements. Additionally, HUD is
proposing to amend new Sec. 1006.377(c) by adding sentences at the end
of paragraph (c) that describe civil rights requirements included in 24
CFR 576.408(c)(1): that a displaced person must be advised of his or
her rights under the Fair Housing Act (42 U.S.C. 3601 et seq.);
minority persons shall be given reasonable opportunities to relocate to
comparable and suitable decent, safe, and sanitary replacement
dwellings, not located in an area of minority concentration, that are
within their financial means; and, for a displaced person with a
disability, a unit will not be considered a comparable replacement
dwelling under the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA) unless it is free of
any barriers which would preclude reasonable ingress, egress, or use of
the dwelling by such displaced person in accordance with 49 CFR
24.2(a)(8)(vii) and the unit meets the requirements of section 504 of
the Rehabilitation Act (29 U.S.C. 794).
Section 1006.410, Performance Reports
HUD is proposing to amend Sec. 1006.410 by revising paragraph
(a)(2) to require the DHHL to submit a performance report within 90
days, instead of 60 days, of the end of the DHHL's fiscal year. HUD is
also proposing to add a new paragraph (a)(3) that states the DHHL may
request an extension and that HUD will provide a new date for
submission if HUD grants the extension. Both changes would improve
consistency between the IHBG requirements at Sec. 1000.514 and the
NHHBG requirements.
Technical Changes for Compliance With NAHASDA and Consistency With IHBG
HUD is proposing to make minor technical revisions to several
provisions to conform to statutory requirements and increase
consistency with IHBG regulations. These provisions and revisions are:
In Sec. 1006.205, HUD is proposing to add language to
paragraph (a)(9) so that it conforms to language in section 202 of
NAHASDA and is more consistent with Sec. 1000.102.
In Sec. 1006.215, HUD is proposing to add paragraph (f)
so it conforms to language in section 202 of NAHASDA and is more
consistent with Sec. 1000.102.
In Sec. 1006.235, HUD is proposing to revise the title to
read Types of investments and forms of assistance, to maintain
consistency with section 812 of NAHASDA.
In Sec. 1006.340, HUD is proposing to revise the cross
reference at the end of paragraph (a) to cite to statutory
requirements, ``Section 812(b) of NAHASDA'', instead of regulatory
requirements, ``Sec. 1006.235''.
In Sec. Sec. 1006.230, 1006.350, 1006.410, and 1006.420,
HUD is also proposing minor technical amendments.
III. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the Order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. HUD is proposing changes to NHHBG program
requirements and regulations, such as clarifying that NHHBG funds can
be used for certain affordable housing activities including project-
based rental assistance, permitting rental assistance to be provided
off the Hawaiian Home Lands when Congress authorizes such use through
appropriations acts, and adding or changing requirements for low-income
and non-low-income families. However, there is no significant impact
because DHHL is the sole recipient of NHHBG funds. This proposed rule
was not subject to OMB review. This proposed rule is not a
``significant regulatory action'' as defined in section 3(f) of
Executive Order 12866, and is not an economically significant
regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.),
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
This rulemaking proposes to amend HUD regulations to implement rental
housing assistance for the NHHBG program, consistent with title VIII of
NAHASDA. These amendments impose no significant economic impact on a
substantial number of small entities, and there is only a singular
recipient of funding. Therefore, the undersigned certifies that this
proposed rule will not have a significant impact on a substantial
number of small entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments and the private sector. This proposed rule does not
impose any federal mandates on any state, local, or tribal governments
or the private sector within the meaning of the UMRA.
Environmental Review
A Finding of No Significant Impact with respect to the environment
has been made 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 of No Significant Impact is
available for public inspection between the hours of 8 a.m. and 5 p.m.
weekdays in the Regulations Division, Office of General Counsel, Room
10276, Department of Housing and Urban Development, 451 Seventh Street
SW, Washington, DC 20410-0500. The FONSI is also available through the
Federal eRulemaking Portal at https://www.regulations.gov.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Order. This proposed rule does not have federalism
implications and would not impose
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substantial direct compliance costs on state and local governments nor
preempt state law within the meaning of the Order.
List of Subjects
24 CFR Part 1006
Community development block grants; Grant programs--housing and
community development; Grant programs--Indians; Hawaiian natives; Low
and moderate income housing; Reporting and recordkeeping requirements.
For the reasons described in the preamble, the Department of
Housing and Urban Development proposes to amend 24 CFR part 1006, as
set forth below:
PART 1006--NATIVE HAWAIIAN HOUSING BLOCK GRANT PROGRAM
0
1. Revise the authority citation for part 1006 to read as follows:
Authority: 12 U.S.C. 1701x, 1701x-1; 25 U.S.C. 4221 et seq.; 42
U.S.C. 3535(d), Pub. L. 115-141, Pub. L. 116-6, Pub. L. 116-94, Pub.
L. 116-260, Pub. L. 117-103.
0
2. In Sec. 1006.10, add in alphabetical order the definitions for
``Annual income,'' ``Homeless family,'' ``Income,'' ``NAHASDA,''
``Person with a Disability,'' and ``Project-based rental assistance,''
to read as follows:
Sec. 1006.10 Definitions.
* * * * *
Annual income has one or more of the following meanings, as
determined by the Department of Hawaiian Home Lands:
(1) ``Annual income'' as defined for HUD's Section 8 programs in 24
CFR part 5, subpart F (except when determining the income of a
homebuyer for an owner-occupied rehabilitation project, the value of
the homeowner's principal residence may be excluded from the
calculation of net family assets); or
(2) The definition of income as used by the U.S. Census Bureau.
This definition includes:
(i) Wages, salaries, tips, commissions, etc.;
(ii) Self-employment income;
(iii) Farm self-employment income;
(iv) Interest, dividends, net rental income, or income from estates
or trusts;
(v) Social security or railroad retirement;
(vi) Supplemental Security Income, Aid to Families with Dependent
Children, or other public assistance or public welfare programs;
(vii) Retirement, survivor, or disability pensions; and
(viii) Any other sources of income received regularly, including
Veterans' (VA) payments, unemployment compensation, and alimony; or
(3) Adjusted gross income as defined for purposes of reporting
under Internal Revenue Service (IRS) Form 1040 series for individual
Federal annual income tax purposes.
* * * * *
Homeless family means a family who is without safe, sanitary and
affordable housing even though it may have temporary shelter provided
by the community, or a family who is homeless as determined by the
DHHL.
* * * * *
Income means the term ``income'' as defined in section 4(9) of
NAHASDA.
* * * * *
NAHASDA means the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.).
* * * * *
Person with a Disability means a person who, as further explained
in 28 CFR 35.108--
(1) Has a physical or mental impairment which substantially limits
one or more major
life activities;
(2) Has a record of having such an impairment;
(3) Is regarded as having such an impairment;
(4) Has a disability as defined in section 223 of the Social
Security Act; or
(5) Has a developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act.
(6) For the purposes of this definition, the term ``Physical or
mental impairment'' means:
(i) Any physiological disorder or condition, cosmetic
disfigurement, or anatomical loss affecting one or more body systems,
such as: neurological, musculoskeletal, special sense organs,
respiratory (including speech organs), cardiovascular, reproductive,
digestive, genitourinary, immune, circulatory, hemic, lymphatic, skin,
and endocrine; or
(ii) Any mental or psychological disorder such as intellectual
disability, organic brain syndrome, emotional or mental illness, and
specific learning disability.
(7) For the purposes of this definition, the term ``physical or
mental impairment'' includes, but is not limited to contagious and
noncontagious diseases and conditions such as the following:
orthopedic, visual, speech, and hearing impairments, and cerebral
palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart
disease, diabetes, intellectual disability, emotional illness, dyslexia
and other specific learning disabilities, Attention Deficit
Hyperactivity Disorder, Human Immunodeficiency Virus infection (whether
symptomatic or asymptomatic), tuberculosis, drug addiction, and
alcoholism.
(8) For the purposes of this definition, the term ``major life
activities'' includes, but is not limited to:
(i) Caring for oneself, performing manual tasks, seeing, hearing,
eating, sleeping, walking, standing, sitting, reaching, lifting,
bending, speaking, breathing, learning, reading, concentrating,
thinking, writing, communicating, interacting with others, and working;
and
(ii) The operation of a major bodily function, such as the
functions of the immune system, special sense organs and skin, normal
cell growth, and digestive, genitourinary, bowel, bladder,
neurological, brain, respiratory, circulatory, cardiovascular,
endocrine, hemic, lymphatic, musculoskeletal, and reproductive systems.
The operation of a major bodily function includes the operation of an
individual organ within a body system.
* * * * *
Project-based rental assistance means rental assistance provided
through a contract with the owner of an existing structure, where the
owner agrees to lease the subsidized units to program participants.
Program participants will not retain the rental assistance if they move
from the project.
* * * * *
0
3. In Sec. 1006.101, revise the introductory text paragraph and
paragraphs (c) and (d) to read as follows.
Sec. 1006.101 Housing plans requirements.
The DHHL must submit a housing plan each year prior to the start of
its fiscal year. The housing plan has two components, a five-year plan
and a one-year plan, as follows:
* * * * *
(c) Updates to plan--(1) In general. Subject to paragraph (c)(2) of
this section, after the housing plan has been submitted for a fiscal
year, the DHHL may comply with the provisions of this section for any
succeeding fiscal year with respect to information included for the 5-
year period under paragraph (a) of this section by submitting only such
information regarding such changes as may be necessary to update the 5-
year period of the plan previously submitted. Information for the 1-
year period under paragraph (b) of this section must be submitted each
fiscal year.
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(2) Complete plans. The DHHL shall submit a complete plan that
includes a new five-year plan under this section not later than 4 years
after submitting an initial plan, and not less frequently than every 4
years thereafter.
(d) Amendments to plan. The DHHL must submit any amendment to the
one-year housing plan for HUD review before undertaking any new
activities that are not addressed in the current plan that was reviewed
by HUD and found to be in compliance with section 803 of NAHASDA and
this part. The amendment must include a description of the new activity
and a revised budget reflecting the changes. HUD will review the
revised plan and will notify DHHL within 30 days whether the amendment
complies with applicable requirements.
0
4. Revise Sec. 1006.201 to read as follows:
Sec. 1006.201 Eligible affordable housing activities.
Eligible affordable housing activities are development, housing
services, housing management services, crime prevention and safety
activities, and model activities. Affordable housing activities under
this part are activities conducted in accordance with subpart D of this
part to develop, operate, maintain, or support housing for rental or
homeownership; or provide services with respect to affordable housing
through the activities described in this subpart. NHHBG funds may only
be used for eligible activities that are consistent with the DHHL's
housing plan.
0
5. In Sec. 1006.205, revise paragraph (a)(9) to read as follows:
Sec. 1006.205 Development.
(a) * * *
(9) The development and rehabilitation of utilities, necessary
infrastructure, and utility services;
* * * * *
Sec. 1006.210 [Amended]
0
6. In Sec. 1006.210, remove paragraph (g) and redesignate paragraph
(h) as paragraph (g).
0
7. In Sec. 1006.215, revise paragraph (e), redesignate paragraph (f)
as paragraph (g), and add new paragraph (f) to read as follow:
Sec. 1006.215 Housing management services.
* * * * *
(e) Management of tenant-based rental assistance;
(f) The costs of operation and maintenance of units developed with
NHHBG funds; and
* * * * *
0
8. Add Sec. 1006.227 to read as follows:
Sec. 1006.227 Tenant-based or project-based rental assistance.
(a) NHHBG funds may be used for the provision of tenant-based
rental assistance, which may include security deposits and first
month's rent, and project-based rental assistance.
(1) Rental assistance must comply with the requirements of this
part and be provided to eligible families.
(2) Rental assistance may be provided to eligible families both on
and off the Hawaiian Home Lands provided such use is consistent with
the applicable appropriations acts governing the use of the NHHBG
funds.
(b) [Reserved].
Sec. 1006.230 [Amended]
0
9. In Sec. 1006.230, paragraph (d), remove the citation ``2 CFR part
200, subpart E.'' and add in its place the citation ``2 CFR part 200,
subpart E.'', and in paragraph (f), remove the text ``Sec. Sec.
1006.370 and 1006.375 of this part'' and add in its place the text
``Sec. Sec. 1006.370, 1006.375, and 1006.377''.
Sec. 1006.235 [Amended]
0
10. In Sec. 1006.235, revise the section heading to read ``Sec.
1006.235 Types of investments and forms of assistance.''.
0
11. Revise Sec. 1006.301 to read as follows:
Sec. 1006.301 Eligible families.
(a) General. Assistance for eligible housing activities under the
Act and this part is limited to low-income Native Hawaiian families who
are eligible to reside on the Hawaiian Home Lands, except as provided
under paragraphs (b) and (c) of this section.
(b) Exception to low-income requirement--(1) Other Native Hawaiian
families. The DHHL may provide assistance for homeownership activities,
which may include assistance in conjunction with loan guarantee
activities to Native Hawaiian families who are not low-income families,
as approved by HUD, to address a need for housing for those families
that cannot be reasonably met without that assistance. DHHL must
determine and document the need for housing for each family that cannot
reasonably be met without such assistance.
(2) HUD approval. HUD approval is required, except as provided in
paragraph (b)(3)(i) of this section, if the DHHL plans to use grant
amounts provided under the Act for assistance in accordance with
paragraph (b)(1) of this section. HUD approval shall be obtained by
DHHL submitting proposals in its housing plan, by amendment of the
housing plan, or by special request to HUD at any time.
(3) Limitations. (i) DHHL may use up to 10 percent of the amount
planned in its Housing Plan for its fiscal year for families whose
income is 81 to 100 percent of the median income without HUD approval.
HUD approval is required if DHHL plans to use more than 10 percent of
the amount planned for its fiscal year for such assistance or to
provide housing for families with income over 100 percent of median
income.
(ii) Non-low-income families cannot receive the same benefits
provided low-income Native Hawaiian families. The amount of assistance
non-low-income families may receive will be determined by DHHL as
established in its written policies.
(iii) The requirements set forth in paragraphs (b)(3)(i) and (ii)
of this section do not apply to other families who are non-low income
that DHHL has determined to be essential under Sec. 1006.301(c).
(c) Other families. The DHHL may provide housing or NHHBG
assistance to a family that is not low-income and is not a Native
Hawaiian family without HUD approval if the DHHL documents that:
(1) The presence of the family in the housing involved is essential
to the well-being of Native Hawaiian families; and
(2) The need for housing for the family cannot be reasonably met
without the assistance.
(d) Written policies. The DHHL must develop, follow, and have
available for review by HUD written policies governing the eligibility,
admission, and occupancy of families for housing assisted with NHHBG
funds and governing the selection of families receiving other
assistance under the Act and this part.
0
12. In Sec. 1006.305, revise paragraphs (a) and (b) to read as
follows:
Sec. 1006.305 Low-income requirement and income targeting.
(a) In general. Housing qualifies as affordable housing for
purposes of the Act and this part, provided that the family occupying
the unit is low-income at the following times:
(1) In the case of rental housing, at the time of the family's
initial occupancy of such unit;
(2) In the case of housing for homeownership, at the time of
purchase. When DHHL enters into a loan contract with the family for
NHHBG assistance to purchase or construct a homeownership unit, the
time of purchase means the time that loan contract is executed;
[[Page 335]]
(3) In the case of owner-occupied housing units, at the time the
family receives NHHBG assistance;
(4) In the case of a lease-purchase agreement for existing housing
or for housing to be constructed, at the time the lease-purchase
agreement is signed; and
(5) In the case of emergency assistance to prevent homelessness or
foreclosure, at the time the family receives NHHBG assistance.
(b) Affordability requirements. NHHBG-assisted rental and
homeownership units must meet the affordability requirements for the
remaining useful life of the property, as determined by HUD, or such
other period as HUD determines in accordance with section 813(a)(2)(B)
of the Act.
* * * * *
0
13. Add Sec. 1006.306 to read as follows:
Sec. 1006.306 Income verification for receipt of NHHBG assistance.
(a) Initial determination of eligibility. DHHL must verify that the
family is income eligible based on anticipated annual income. The
family is required to provide documentation to verify this
determination. DHHL is required to maintain the documentation on which
the determination of eligibility is based.
(b) Periodic verification. DHHL may require a family to
periodically verify its income in order to determine housing payments
or continued occupancy consistent with DHHL's written policies. When
income verification is required, the family must provide documentation
which verifies its income, and this documentation must be retained by
DHHL.
0
14. Add Sec. 1006.307 to read as follows:
Sec. 1006.307 Non-low-income families.
(a) A family that was low-income at the times described in Sec.
1006.305 but subsequently becomes a non-low-income family may continue
to participate in the program in accordance with DHHL's admission and
occupancy policies. The 10 percent limitation in Sec.
1006.301(b)(3)(i) in this part shall not apply to such families. Such
families may be made subject to the additional requirements in Sec.
1006.301(b)(3)(ii) of this part based on those policies.
(b) [Reserved]
0
15. Revise Sec. 1006.310 to read as follows:
Sec. 1006.310 Rent and lease-purchase limitations.
(a) Rents. The DHHL must develop and follow written policies
governing rents for rental housing units assisted with NHHBG funds,
including methods by which rents are determined.
(1) Maximum and minimum rent. The maximum monthly tenant rent
payment for a low-income family may not exceed 30 percent of the
family's monthly adjusted income. DHHL may also decide to compute
rental or homebuyer payments on any lesser percentage of the adjusted
income of the family. The Act does not set minimum rent or homebuyer
payments; however, DHHL may do so.
(2) Flat or income-adjusted rent. Flat rent means the tenant's rent
payment is set at a specific dollar amount or specific percent of
market rent. Income-adjusted rent means the tenant's rent payment
varies based on the tenant's income (i.e., 30% of monthly adjusted
income). DHHL may charge flat or income-adjusted rents, provided the
rental or homebuyer payment of the low-income family does not exceed 30
percent of the family's adjusted income.
(3) Utilities. Utilities may be considered a part of rent or
homebuyer payments if DHHL decides to define rent or homebuyer payments
to include utilities in its written policies on rents and homebuyer
payments required by section 811(a)(1) of NAHASDA. DHHL may define
rents and homebuyer payments to exclude utilities.
(b) Lease-purchase. If DHHL assists low-income families to become
homeowners of rental housing through a long-term lease (i.e., 10 or
more years) with an option to purchase the housing, DHHL must develop
and follow written policies governing lease-purchase payments (i.e.,
homebuyer payments) for rental housing units assisted with NHHBG funds,
including methods by which payments are determined. The maximum monthly
payment for a low-income family may not exceed 30 percent of the
family's monthly adjusted income.
(c) Exception for certain homeownership payments. Homeownership
payments for families who are not low-income, as permitted under Sec.
1006.301(b), are not subject to the requirement that homebuyer payments
may not exceed 30 percent of the monthly adjusted income of that
family.
(d) Applicability. Low-income families who receive homeownership
assistance other than lease-purchase assistance are not subject to the
limitations in paragraphs (a) and (b) of this section.
Sec. 1006.340 [Amended]
0
16. In Sec. 1006.340, paragraph (a), remove the citation ``Sec.
1006.235'' and add in its place the citation ``section 812(b) of
NAHASDA''.
Sec. 1006.350 [Amended]
0
17. In Sec. 1006.350, paragraph (a), remove the word
``decisionmaking'' and add in its place the word ``decision-making''.
0
18. Revise Sec. 1006.375 to read as follows:
Sec. 1006.375 Other Federal requirements.
(a) Lead-based paint. The following subparts of HUD's lead-based
paint regulations at part 35 of this title, which implement the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4822-4846) and the
Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C.
4851-4856), apply to the use of assistance under this part:
(1) Subpart A, ``Disclosure of Known Lead-Based Paint Hazards Upon
Sale or Lease of Residential Property'';
(2) Subpart B, ``General Lead-Based Paint Requirements and
Definitions for All Programs'';
(3) Subpart H, ``Project-Based Rental Assistance'';
(4) Subpart J, ``Rehabilitation'';
(5) Subpart K, ``Acquisition, Leasing, Support Services, or
Operation'';
(6) Subpart M, ``Tenant-Based Rental Assistance''; and
(7) Subpart R, ``Methods and Standards for Lead-Based Paint Hazard
Evaluation and Hazard Reduction Activities''.
(b) Drug-free workplace. The Drug-Free Workplace Act of 1988 (41
U.S.C. 701, et seq.) and HUD's implementing regulations in 2 CFR part
2429 apply to the use of assistance under this part.
(c) Audits. The DHHL must comply with the requirements of the
Single Audit Act and 2 CFR part 200, subpart F, with the audit report
providing a schedule of expenditures for each grant. A copy of each
audit must be submitted to the Federal Audit Clearinghouse.
(d) Housing counseling. Housing counseling, as defined in Sec.
5.100, that is funded with or provided in connection with NHHBG funds
must be carried out in accordance with 24 CFR 5.111.
(e) Section 3. Requirements under section 3 of the Housing and
Urban Development Act of 1968 and 24 CFR part 75 apply.
(f) Debarment and suspension. The Nonprocurement debarment and
suspension requirements at 2 CFR part 2424 are applicable.
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19. Add Sec. 1006.377 to read as follows:
Sec. 1006.377 Other Federal requirements: Displacement, relocation,
and acquisition.
The following relocation and real property acquisition policies are
applicable to programs developed or operated under the Act and this
part:
(a) Real property acquisition requirements. The acquisition of real
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property for an assisted activity is subject to the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended (URA) and the requirements of 49 CFR part 24, subpart B.
(b) Minimize displacement. Consistent with the other goals and
objectives of the Act and this part, the DHHL shall assure that it has
taken all reasonable steps to minimize the displacement of persons
(households, businesses, nonprofit organizations, and farms) as a
result of a project assisted under the Act and this part.
(c) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (f) of this section) must be provided relocation
assistance at the levels described in, and in accordance with the URA
requirements of 49 CFR part 24. A displaced person must be advised of
his or her rights under the Fair Housing Act (42 U.S.C. 3601 et seq.).
Whenever possible, minority persons shall be given reasonable
opportunities to relocate to comparable and suitable decent, safe, and
sanitary replacement dwellings, not located in an area of minority
concentration, that are within their financial means. For a displaced
person with a disability, a unit is not a comparable replacement
dwelling under the URA unless it is free of any barriers which would
preclude reasonable ingress, egress, or use of the dwelling by such
displaced person in accordance with 49 CFR 24.2(a)(8)(vii) and the unit
meets the requirements of section 504 of the Rehabilitation Act (29
U.S.C. 794).
(d) Appeals to the DHHL. A person who disagrees with the DHHL's
determination concerning whether the person qualifies as a ``displaced
person,'' or the amount of relocation assistance for which the person
is eligible, may file a written appeal of that determination with the
DHHL in accordance with URA requirements of 49 CFR 24.10.
(e) Responsibility of DHHL. (1) The DHHL shall certify that it will
comply with the URA requirements of 49 CFR part 24, and the
requirements of this section. The DHHL shall ensure such compliance
notwithstanding any third party's contractual obligation to the DHHL to
comply with the provisions in this section.
(2) The cost of required relocation assistance is an eligible
project cost in the same manner and to the same extent as other project
costs. However, such assistance may also be paid for with funds
available to the DHHL from any other source.
(3) The DHHL shall maintain records in sufficient detail to
demonstrate compliance with this section.
(f) Definition of displaced person. (1) For purposes of this
section, the term ``displaced person'' means any person (household,
business, nonprofit organization, or farm) that moves from real
property, or moves his or her personal property from real property,
permanently, as a direct result of rehabilitation, demolition, or
acquisition for a project assisted under the Act. The term ``displaced
person'' includes, but is not limited to:
(i) A tenant-occupant of a dwelling unit who moves from the
building/complex permanently after the submission to HUD of a housing
plan that is later approved;
(ii) Any person, including a person who moves before the date the
housing plan is submitted to HUD, that the DHHL determines was
displaced as a direct result of acquisition, rehabilitation, or
demolition for the assisted project;
(iii) A tenant-occupant of a dwelling unit who moves from the
building/complex permanently after execution of the agreement between
the DHHL and HUD, if the move occurs before the tenant is provided
written notice offering him or her the opportunity to lease and occupy
a suitable, decent, safe and sanitary dwelling in the same building/
complex, under reasonable terms and conditions, upon completion of the
project. Such reasonable terms and conditions include a monthly rent
and estimated average monthly utility costs that do not exceed the
greater of:
(A) The tenant-occupant's monthly rent and estimated average
monthly utility costs before the agreement; or
(B) 30 percent of gross household income.
(iv) A tenant-occupant of a dwelling who is required to relocate
temporarily, but does not return to the building/complex, if either:
(A) The tenant-occupant is not offered payment for all reasonable
out-of-pocket expenses incurred in connection with the temporary
relocation, including the cost of moving to and from the temporarily
occupied unit, any increased housing costs and incidental expenses; or
(B) Other conditions of the temporary relocation are not
reasonable.
(v) A tenant-occupant of a dwelling who moves from the building/
complex after he or she has been required to move to another dwelling
unit in the same building/complex in order to carry out the project, if
either:
(A) The tenant-occupant is not offered reimbursement for all
reasonable out-of-pocket expenses incurred in connection with the move;
or
(B) Other conditions of the move are not reasonable.
(2) Notwithstanding the provisions of this section for the
definition of ``Displaced Person,'' a person does not qualify as a
``displaced person'' (and is not eligible for relocation assistance
under the URA or this section), if:
(i) The person moved into the property after the submission of the
housing plan to HUD, but before signing a lease or commencing
occupancy, was provided written notice of the project, its possible
impact on the person (e.g., the person may be displaced, temporarily
relocated or suffer a rent increase) and the fact that the person would
not qualify as a ``displaced person'' or for any assistance provided
under this section as a result of the project;
(ii) The person is ineligible under 49 CFR 24.2(a)(9)(ii); or
(iii) The DHHL determines the person is not displaced as a direct
result of acquisition, rehabilitation, or demolition for an assisted
project. To exclude a person on this basis, HUD must concur in that
determination.
(3) The DHHL may at any time ask HUD to determine whether a
specific displacement is or would be covered under this section.
(g) Definition of initiation of negotiations. For purposes of
determining the formula for computing the replacement housing
assistance to be provided to a person displaced from a dwelling as a
direct result of acquisition, rehabilitation, or demolition of the real
property, the term ``initiation of negotiations'' means the execution
of the written agreement covering the acquisition, rehabilitation, or
demolition (See 49 CFR 24.2(a)(15)).
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20. In Sec. 1006.410, revise paragraph (a)(2), add paragraph (a)(3),
and revise paragraph (c)(1) to read as follows:
Sec. 1006.410 Performance reports.
(a) * * *
(2) Submit a report in a form acceptable to HUD, within 90 days of
the end of the DHHL's fiscal year, to HUD describing the conclusions of
the review.
(3) DHHL may submit a written request for an extension of the
deadline. HUD will establish a new date for submission if the extension
is granted.
* * * * *
(c) * * *
(1) Comments by Native Hawaiians. In preparing a report under this
section, the DHHL shall make the report publicly available to Native
Hawaiians who are eligible to reside on the
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Hawaiian Home Lands and give a sufficient amount of time to permit them
to comment on that report, in such manner and at such time as the DHHL
may determine, before it is submitted to HUD.
* * * * *
Sec. 1006.420 [Amended]
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21. In Sec. 1006.420, paragraph (c), add the paragraph heading
``Failure to maintain records.'' before the words ``The DHHL's failure
to maintain records''.
Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2022-28020 Filed 1-3-23; 8:45 am]
BILLING CODE 4210-67-P