Updating Manufactured Housing Provisions, 55601-55606 [2023-17519]
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Federal Register / Vol. 88, No. 157 / Wednesday, August 16, 2023 / Proposed Rules
Authority: 5 U.S.C. 1103(c), 2301, 2302,
4101, et seq.; E.O. 11348, 3 CFR, 1967 Comp.,
p. 275, E.O. 11478, 3 CFR 1966–1970 Comp.,
page 803, unless otherwise noted, E.O.
13087; and E.O. 13152.
23. Amend § 410.306 by revising
paragraph (c) to read as follows:
■
§ 410.306 Selecting and assigning
employees to training.
*
*
*
*
*
(c) Subject to the prohibitions of
§ 410.308(a), an agency may pay all or
part of the training expenses of students
hired under the Pathways Internship
Program (see 5 CFR part 362, subpart B).
[FR Doc. 2023–17372 Filed 8–15–23; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Parts 3550 and 3555
[Docket No. RHS–23–SFH–0007]
RIN 0575–AD32
Updating Manufactured Housing
Provisions
Rural Housing Service,
Department of Agriculture (USDA).
ACTION: Proposed rule.
AGENCY:
The Rural Housing Service
(RHS or the Agency), a Rural
Development agency of the United
States Department of Agriculture
(USDA), proposes to amend the current
regulations for the Single-Family
Housing (SFH) Section 502 Direct and
the SFH Guaranteed Loan Program. The
intent of this proposed rule is to allow
the Agency to give borrowers increased
purchase options within a competitive
market and increase adequate housing
along with an enhanced customer
experience with the SFH programs.
DATES: Comments on the proposed rule
must be received on or before October
16, 2023.
ADDRESSES: Comments may be
submitted electronically by the Federal
eRulemaking Portal: Go to https://
www.regulations.gov and, in the
‘‘Search Field’’ box, labeled ‘‘Search for
dockets and documents on agency
actions,’’ enter the following docket
number: https://
aiomostl0as096.usda.net/desktop/
container/?locale=en_US-/home (RHS–
23–SFH–0007) or RIN# 0575–AD32,
then click search. To submit or view
public comments, select the following
document title: (Updating Manufactured
Housing Provisions) from the ‘‘Search
Results,’’ and select the ‘‘Comment’’
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SUMMARY:
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button. Before inputting your
comments, you may also review the
‘‘Commenter’s Checklist’’ (optional).
Insert your comments under the
‘‘Comment’’ title, click ‘‘Browse’’ to
attach files (if available). Input your
email address and select ‘‘Submit
Comment.’’ Information on using
Regulations.gov, including instructions
for accessing documents, submitting
comments, and viewing the docket after
the close of the comment period, is
available through the site’s ‘‘FAQ’’ link.
Other Information: Additional
information about Rural Development
and its programs is available on the
internet at https://www.rurdev.usda.gov/
index.html.
All comments will be available for
public inspection online at the Federal
eRulemaking Portal (https://
www.regulations.gov).
FOR FURTHER INFORMATION CONTACT:
Sonya Evans, Finance & Loan Analyst,
SFH Direct Loan Division, Rural
Housing Service, Rural Development,
United States Department of
Agriculture, 1400 Independence Avenue
SW, Washington, DC 20250, Phone:
423–268–4333, Email: sonya.evans@
usda.gov. Or contact Stephanie
Freeman, Finance & Loan Analyst,
Policy, Analysis, and Communications
Branch, Single Family Housing
Guaranteed Loan Division, Rural
Housing Service, Rural Development,
United States Department of
Agriculture, 1400 Independence Avenue
SW, Washington DC 20250, Phone: 314–
457–6413, Email: stephanie.freeman@
usda.gov.
SUPPLEMENTARY INFORMATION:
I. Background
RHS offers a variety of programs to
build or improve housing and essential
community facilities in rural areas. RHS
offers loans, grants, and loan guarantees
for single- and multifamily housing,
childcare centers, fire and police
stations, hospitals, libraries, nursing
homes, schools, first responder vehicles
and equipment, and housing for farm
laborers. RHS also provides technical
assistance loans and grants in
partnership with non-profit
organizations, Indian tribes, state and
federal government agencies, and local
communities.
Well built, affordable housing is
essential to the vitality of communities
in rural America. Rural Development’s
(RD) Single Family Housing (SFH)
Programs give families and individuals
the opportunity to buy, build, or repair
affordable homes located in rural
America. Eligibility for these loans, loan
guarantees, and grants is based on
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55601
income and varies according to the
average median income for each area.
RHS administers the following SFH
Programs under 7 CFR parts 3550 and
3555 authorized by Section 502 of the
Housing Act of 1949, as amended, (42
U.S.C. 1472):
• Section 502 Direct Loan Program
assists low- and very low-income
applicants who currently do not own
adequate housing and cannot obtain
other credit, the opportunity to acquire,
build, rehabilitate, improve, or relocate
dwellings in rural areas.
• Section 502 Guaranteed Loan
Program assists low- and moderateincome applicants the opportunity to
acquire, build, rehabilitate, improve, or
relocate dwellings in rural areas.
The President announced in May
2022, the release of a Housing Supply
Action Plan (the Plan) to ease the
burden of housing costs over time, by
boosting the supply of quality housing
in every community. The plan includes
legislative and administrative actions
that will help close America’s housing
supply shortfall in five years, starting
with the creation and preservation of
hundreds of thousands of affordable
housing units in the next three years.
Under the Plan, the Administration
intends to deploy new financing
mechanisms to build and preserve more
housing where housing gaps exist.
There is special emphasis on supporting
production and availability of
manufactured housing through
improved loan rates and terms making
this type of homeownership more
attainable and affordable.
II. Discussion of the Proposed Rule
The Housing and Urban
Development’s (HUD) Office of
Manufactured Housing Program
regulates the construction of all
manufactured homes built in the United
States. These homes are built and
installed in accordance with the Federal
Manufactured Home Construction and
Safety Standards (FMHCSS)
administered by HUD. FMHCSS became
effective June 15, 1976, replacing the
term ‘‘Mobile Home’’ with
‘‘Manufactured Home.’’ These federal
standards regulate manufactured
housing design and construction,
installation, strength and durability,
transportability, fire resistance, energy
efficiency and quality. The FMHCSS
also sets performance standards for the
heating, plumbing, air conditioning,
thermal and electrical systems. Prior to
the implementation of the FMHCSS in
1976, the construction and installation
of manufactured homes were not
uniformly regulated and were not
generally considered to be quality, safe
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Federal Register / Vol. 88, No. 157 / Wednesday, August 16, 2023 / Proposed Rules
and sanitary housing. Further
improvements to the FMHCSS were
enacted in 1994 and 2007 with
additional improvements in 2021 that
included the development of mandates
for manufactured home installation, the
creation of a federal installation
oversight program, mandated updates to
the HUD code to enforce construction
and safety standards for factory built
manufactured homes to address items
such as structural design, wind force
resistance, additional loads
requirements that are in accordance
with the design load identified on data
plate, and smoke alarm requirements.
These were all implemented in
accordance with the Manufactured
Home Improvement Act of 2000.
RHS defines a manufactured home as
a structure that is built to FMHCSS and
placed on a permanent foundation. It is
transportable in one or more sections,
which in the traveling mode is 10-body
feet (3.048 meters) or more in width,
and when erected on site is 400 or more
square feet (37.16 square meters), and
which is built on a permanent chassis
and designed to be used as a dwelling
with or without a permanent foundation
when connected to the required
utilities. It is designed and constructed
for permanent occupancy by a single
family and contains permanent eating,
cooking, sleeping, and sanitary
facilities. The plumbing, heating, and
electrical systems are contained in the
structure. RHS will continue to require
all new and existing manufactured
homes to be constructed and placed on
a permanent foundation in accordance
with RD Instruction 1924–A, as
applicable to the Direct Program, and
the FMHCSS, established by HUD and
found in 24 CFR part 3280.
The proposed revisions will allow the
Agency to responsibly and effectively
utilize funds appropriated by Congress
by allowing borrowers more purchase
options within a competitive market
and thereby increasing the likelihood of
finding adequate housing which
increases program impact. The Agency
proposes to modify the direct and
guaranteed loan regulations as follows:
1. Update the current regulations to
permit the purchase of existing
manufactured homes for direct and
guaranteed loans. The current direct
and guaranteed regulations prohibit the
purchase of a manufactured home
unless it is a new unit, an existing unit
and site already financed with a section
502 loan or is a RHS real estate owned
(REO) property. The Agency has been
operating a pilot for the direct and
guaranteed programs to test the concept
of waiving the regulatory restrictions to
finance existing manufactured homes in
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selected pilot states, even if the home is
not currently financed by the agency.
Under the pilot, the unit must have been
constructed on or after January 1, 2006,
in conformance with the Federal
Manufactured Home Construction and
Safety Standards (FMHCSS), as
evidenced by an affixed Housing and
Urban Development (HUD) Certification
Label and the unit must not have been
previously installed on a different
homesite, or had any structural
alterations to it since construction in the
factory, except for porches, decks or
other structures which were built to
engineered designs or were approved
and inspected by local code officials.
Once this rulemaking is final, these
requirements will be the placed in the
program handbooks and any adjustment
to the date will be made public through
a Federal Register notice. It has been
determined that the pilot has been
successful in increasing homeownership
by expanding the Direct and Guaranteed
portfolios by 1,372 loans. Therefore,
regulatory revisions are being proposed
to provide additional flexibility for the
programs to lend on existing
manufactured homes built in
conformance with standards and a
manufacture date, as determined by the
Agency, based on factors such as
industry standards and practices.
2. For direct and guaranteed loans,
update the current regulations language
to meet conditions of the ownership
requirement for energy efficient
manufactured and modular home
financing in Land-Lease Communities
Operating on a Nonprofit Basis pilot,
and expand this to include Tribal lands.
These updates are expected to provide
additional flexibility for new energy
efficient manufactured and modular
homes that meet the conditions of the
pilot, as well as provide consistency
between the direct and guaranteed
programs. Currently, the Agency is
operating an ownership requirement
pilot for energy efficient manufactured
and modular home financing in landlease communities operating on a
nonprofit basis, for the direct and
guaranteed programs. Under the pilot,
RD accepts leases with an unexpired
term that is at least two years beyond
the term of the promissory note in the
pilot states.
3. Remove the administrative
requirements from the regulations for
review and approval of applications
from manufactured housing dealers for
direct loans. The removal of this
requirement will alleviate Agency staff
from the review and approval of
applications from manufactured
housing dealers and the maintenance of
a list that must be updated every two
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years based on the activity of the
‘‘approved’’ dealer-contractors, thus
providing the Agency with needed
flexibility. This review process provided
minimal value to both the applicant or
dealer and contrasted from the
requirements for site-built contractors
who do not have a formal application or
approval process nor is there a list of
approved site-built contractors
maintained. The removal will also
prevent delays in the processing of a
manufactured housing purchase request
by eliminating the need to approve the
dealer prior to proceeding, which can be
time-consuming due to the review of
financial and credit information for the
dealer. The dealer will still be required
to provide all site services and agree to
construction and development
requirements in 7 CFR 3550.73(d) and
standards set forth in the FMHCSS.
4. Revise the definition of
‘‘Manufactured home’’ in 7 CFR 3550.10
Definitions to remove reference to RHS
Thermal Performance Standards for
direct loans.
The removal of this reference is
necessary due to RHS exemption from
these thermal standards. Instead, RHS
relies on HUD FMHCSS for thermal
performance requirements for
construction of manufactured homes.
This change will also provide further
alignment between the Section 502
Direct and Guaranteed loan programs.
The Agency proposes to update the
current Section 502 Direct and SFH
Guaranteed Loan Programs regulations
implemented under 7 CFR parts 3550
and 3555. This will be accomplished by
reducing the regulatory burdens that are
specifically related to manufactured
housing requirements, enhancing
program delivery, customer service,
promoting consistency between the
direct and guaranteed SFH loan
programs, and reflect current housing
market conditions and mortgage loan
practices.
III. Summary of Changes
The Agency proposes to change 7 CFR
parts 3555 and 3550 by:
(1) Update sections 3550.52(e)(1),
3550.73(b)(1), 3555.208(b)(3) and add
new paragraph 3555.208(a)(3) to clarify
that borrowers are allowed under the
direct and guaranteed loan programs to
purchase existing manufactured homes
constructed in conformance with the
FMHCSS standards, as specified in
program handbooks.
(2) Update sections 3550.58(b) and
3555.203(b)(3) so that, for the direct and
guaranteed loan programs, the Agency
will accept a land-lease with an
unexpired term that is at least two years
longer than the mortgage term for new
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energy efficient manufactured and
modular home financing in Tribal and
land-lease communities operating on a
nonprofit basis.
(3) Remove paragraph (c) from section
3550.73 which requires Agency
approval of manufactured housing
dealers for direct loans.
(4) Update the definition of
Manufactured home under section
3550.10, by removing reference to ‘‘RHS
Thermal Performance Standards’’ for
direct loans. SFH is exempt from RHS
Thermal Performance Standards
compliance.
IV. Regulatory Information
Statutory Authority
Section 510(k) of Title V the Housing
Act of 1949 [42 U.S.C. 1480(k)], as
amended, authorizes the Secretary of
the Department of Agriculture to
promulgate rules and regulations as
deemed necessary to carry out the
purpose of that title; and implemented
under 7 CFR parts 3550 and 3555.
Executive Order 12372,
Intergovernmental Review of Federal
Programs
These programs are not subject to the
requirements of Executive Order 12372,
‘‘Intergovernmental Review of Federal
Programs,’’ as implemented under the
USDA’s regulations at 2 CFR part 415,
subpart C.
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Executive Order 12866, Regulatory
Planning and Review
This proposed rule has been
determined to be non-significant and,
therefore, was not reviewed by the
Office of Management and Budget
(OMB) under Executive Order 12866.
Executive Order 12988, Civil Justice
Reform
This proposed rule has been reviewed
under Executive Order 12988. In
accordance with this proposed rule: (1)
Unless otherwise specifically provided,
all State and local laws that conflict
with this proposed rule will be
preempted; (2) no retroactive effect will
be given to this proposed rule except as
specifically prescribed in the proposed
rule; and (3) administrative proceedings
of the National Appeals Division of the
Department of Agriculture (7 CFR part
11) must be exhausted before suing in
court that challenges action taken under
this proposed rule.
Executive Order 13132, Federalism
The policies contained in this
proposed rule do not have any
substantial direct effect on States, on the
relationship between the National
Government and the States, or on the
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distribution of power and
responsibilities among the various
levels of government. This proposed
rule does not impose substantial direct
compliance costs on state and local
governments; therefore, consultation
with States is not required.
Executive Order 13175, Consultation
and Coordination With Indian Tribal
Governments
This executive order imposes
requirements on RHS in the
development of regulatory policies that
have tribal implications or preempt
tribal laws. RHS has determined that the
proposed rule does not have a
substantial direct effect on one or more
Indian tribe(s) or on either the
relationship or the distribution of
powers and responsibilities between the
Federal Government and Indian tribes.
Thus, this proposed rule is not subject
to the requirements of Executive Order
13175. If tribal leaders are interested in
consulting with RHS on this rule, they
are encouraged to contact USDA’s Office
of Tribal Relations or RD’s Tribal
Coordinator at: AIAN@usda.gov to
request such a consultation.
National Environmental Policy Act
In accordance with the National
Environmental Policy Act of 1969,
Public Law 91–190, this document has
been reviewed in accordance with 7
CFR part 1970 (‘‘Environmental
determined that i) this action meets the
criteria established in 7 CFR 1970.53(f);
ii) no extraordinary circumstances exist;
and iii) the action is not ‘‘connected’’ to
other actions with potentially
significant impacts, is not considered a
‘‘cumulative action’’ and is not
precluded by 40 CFR 1506.1. Therefore,
the Agency has determined that the
action does not have a significant effect
on the human environment, and
therefore neither an Environmental
Assessment nor an Environmental
Impact Statement is required.
Regulatory Flexibility Act
This proposed rule has been reviewed
with regard to the requirements of the
Regulatory Flexibility Act (5 U.S.C.
601–612). The undersigned has
determined and certified by signature
on this document that this proposed
rule will not have a significant
economic impact on a substantial
number of small entities since this
rulemaking action does not involve a
new or expanded program nor does it
require any more action on the part of
a small business than required of a large
entity.
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Unfunded Mandates Reform Act
(UMRA)
Title II of the UMRA, Public Law 104–
4, establishes requirements for Federal
agencies to assess the effects of their
regulatory actions on state, local, and
tribal governments and on the private
sector. Under section 202 of the UMRA,
the Agency generally must prepare a
written statement, including cost-benefit
analysis, for proposed and final rules
with Federal mandates that may result
in expenditures to state, local, or tribal
Governments, in the aggregate, or to the
private sector, of $100 million or more
in any one year. When such a statement
is needed for a rule, section 205 of the
UMRA generally requires the Agency to
identify and consider a reasonable
number of regulatory alternatives and
adopt the least costly, more costeffective, or least burdensome
alternative that achieves the objectives
of the rule.
This proposed rule contains no
Federal mandates (under the regulatory
provisions of title II of the UMRA) for
state, local, and tribal Governments or
for the private sector. Therefore, this
proposed rule is not subject to the
requirements of sections 202 and 205 of
the UMRA.
Paperwork Reduction Act
The Office of Management and
Budget’s (OMB) regulation (5 CFR part
1320) implementing provisions of the
Paperwork Reduction Act of 1995 (Pub.
L. 104–13) requires that interested
members of the public and affected
agencies have an opportunity to
comment on information collection and
recordkeeping activities (see 5 CFR
1320.8(d)). This notice identifies the
following information collection that
RHS is submitting to OMB as a revision
to an existing approved collection with
Agency adjustment. The Agency expects
a modest change in burden once this
proposed rule is published as a final
rule in the Federal Register.
Title: Direct Single Family Housing
Loan and Grant Programs, 7 CFR 3550–
HB–1–3550, and HB–2–3550.
OMB Control Number: 0575–0172.
Expiration Date of Approval: February
28, 2025.
Type of Request: Revision of a
currently approved information
collection.
Estimate of Burden: Public reporting
burden for this collection of information
is estimated to average .500 hours per
response.
Respondents: Business or other for
profit, not-for-profit institutions.
Estimated Number of Respondents:
Approximately 50 manufactured dealer-
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contractors seeking approval to provide
manufactured sales, service and site
development services.
Estimated Number of Responses per
Respondent: 1.
Estimated Number of Responses: 50.
Estimated Total Annual Burden on
Respondents: 25 hours.
Abstract: Through the Section 502
direct single family housing loan
program, RHS provides 100 percent loan
financing to assist eligible low- and very
low-income applicants purchase modest
homes in eligible rural areas by
providing payment assistance to
increase an applicant’s repayment
ability.
Applicants must provide the Agency
with a uniform residential loan
application and supporting
documentation (e.g., verification of
income, assets, liabilities, etc.) when
applying for assistance. The information
requested is comparable to that required
by any public or private mortgage
lender.
Applicants who choose to purchase a
new manufactured home are currently
required to purchase from an approved
manufactured dealer-contractor.
Manufactured dealer-contractors who
wish to participate in the Section 502
direct program are required to submit
RD Form 1944–5, Manufactured
Housing Dealer-Contractor Application,
along with supplementary data sources
such as financial statements and tax
returns to verify or determine
employment, income, and held assets.
After RHS review, a dealer-contractor
meeting qualification criteria may be
added to list of approved dealercontractors maintained for each state.
Applicants must choose an approved
dealer-contractor from this list for
purchase and all other site services
related to the transaction. If an applicant
wishes to purchase a new manufactured
home from a dealer-contractor who has
not received prior approval, the
applicant is notified of other approved
dealer-contractors on the state list. If
applicants still request to purchase from
a dealer-contractor who has not received
prior approval, the dealer-contractor
must submit the required form and
supplementary documentation and wait
for their approval prior to entering into
a contract with the applicant.
Elimination of prior approval will
remove obstacles and potential delays
for applicants to purchase new
manufactured housing while sustained
manufactured construction regulations
will continue to maintain quality and
installation standards.
Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
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performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s
estimate of the burden of the collection
of information including the validity of
the methodology and assumptions used;
(c) ways to enhance the quality,
utility, and clarity of the information to
be collected; and
(d) ways to minimize the burden of
the collection of information on
respondents, including through the use
of appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms of
information technology.
Copies of this information collection
can be obtained from Crystal Pemberton,
Rural Development Innovation Center—
Regulations Management Division, at
Telephone: (202) 260–8621, Email:
Crystal.Pemberton@usda.gov.
All responses to this notice will be
summarized and included in the request
for OMB approval. All comments will
also become a matter of public record.
E-Government Act Compliance
RHS is committed to complying with
the E-Government Act by promoting the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information,
services, and other purposes.
Civil Rights Impact Analysis
Rural Development has reviewed this
proposed rule in accordance with USDA
Regulation 4300–004, Civil Rights
Impact Analysis,’’ to identify any major
civil rights impacts the proposed rule
might have on program participants on
the basis of age, race, color, national
origin, sex, or disability. After review
and analysis of the proposed rule and
available data, it has been determined
that implementation of the proposed
rule will not adversely or
disproportionately impact very low-,
low- and moderate-income populations,
minority populations, women, Indian
tribes, or persons with disability by
virtue of their race, color, national
origin, sex, age, disability, or marital or
familial status. No major civil rights
impact is likely to result from this
proposed rule.
Assistance Listing
The programs affected by this
regulation are listed in the Assistance
Listing Catalog (formerly Catalog of
Federal Domestic Assistance) under
number 10.410, Very Low to Moderate
Income Housing Loans (Section 502
Rural Housing Loans), and number
10.417, Very Low-Income Housing
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Repair Loans and Grants (specifically
the Section 504 direct loans and grants).
Non-Discrimination Statement
In accordance with Federal civil
rights laws and USDA civil rights
regulations and policies, the USDA, its
Mission Areas, agencies, staff offices,
employees, and institutions
participating in or administering USDA
programs are prohibited from
discriminating based on race, color,
national origin, religion, sex, gender
identity (including gender expression),
sexual orientation, disability, age,
marital status, family/parental status,
income derived from a public assistance
program, political beliefs, or reprisal or
retaliation for prior civil rights activity,
in any program or activity conducted or
funded by USDA (not all bases apply to
all programs). Remedies and complaint
filing deadlines vary by program or
incident.
Program information may be made
available in languages other than
English. Persons with disabilities who
require alternative means of
communication to obtain program
information (e.g., Braille, large print,
audiotape, American Sign Language)
should contact the responsible Mission
Area, agency, or staff office; the USDA
TARGET Center at (202) 720–2600
(voice and TTY); or the Federal Relay
Service at (800) 877–8339.
To file a program discrimination
complaint, a complainant should
complete a Form AD–3027, USDA
Program Discrimination Complaint
Form, which can be obtained online at
https://www.usda.gov/sites/default/
files/documents/ad-3027.pdf, from any
USDA office, by calling (866) 632–9992,
or by writing a letter addressed to
USDA. The letter must contain the
complainant’s name, address, telephone
number, and a written description of the
alleged discriminatory action in
sufficient detail to inform the Assistant
Secretary for Civil Rights about the
nature and date of an alleged civil rights
violation.
The completed AD–3027 form or
letter must be submitted to USDA by:
(1) Mail: U.S. Department of
Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400
Independence Avenue SW, Washington,
DC 20250–9410; or
(2) Fax: (833) 256–1665 or (202) 690–
7442; or
(3) Email: program.intake@usda.gov.
USDA is an equal opportunity
provider, employer, and lender.
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List of Subjects
7 CFR Part 3550
Administrative practice and
procedure, Environmental impact
statements, Fair housing, Grant
programs—housing and community
development, Housing, Loan
programs—housing and community
development, low- and moderateincome housing, Reporting and
recordkeeping requirements, Rural
areas.
7 CFR Part 3555
Administrative practice and
procedure, Business and industry,
Conflicts of interest, Credit,
Environmental impact statements, Fair
housing, Flood insurance, Grant
programs—housing and community
development, Home improvement,
Housing, Loan programs—housing and
community development, low and
moderate-income housing,
Manufactured homes, Mortgages,
Reporting and recordkeeping
requirements, Rural areas.
For the reasons set forth in the
preamble, the Rural Housing Service
proposes to amend 7 CFR parts 3550
and 3555 as follows:
PART 3550—DIRECT SINGLE FAMILY
HOUSING LOANS AND GRANTS
1. The authority citation for part 3550
continues to read as follows:
■
Authority: 5 U.S.C. 301; 42 U.S.C. 1480.
2. Amend § 3550.10 by revising the
first sentence of the Manufactured home
definition to read as follows:
■
Definitions.
*
*
*
*
*
Manufactured home. A structure that
is built to Federally Manufactured
Home Construction and Safety
Standards established by HUD and
found at 24 CFR part 3280.
* * *
*
*
*
*
*
Subpart B—Section 502 Origination
3. Amend § 3550.52 by revising
paragraph (e)(1) to read as follows:
■
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§ 3550.52
*
*
*
*
(e) * * *
(1) Purchase an existing manufactured
home (unless the unit was constructed
in conformance with Federal
Manufactured Home Construction and
Safety Standards (FMHCSS) standards
as evidenced by both an affixed HUD
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16:28 Aug 15, 2023
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Ownership requirements.
*
*
*
*
*
(b) * * * For new energy efficient
manufactured and modular home
financing in land-lease communities
operating on a nonprofit basis, and on
Tribal Trust land, individual (allotted)
Trust land, or Tribal restricted fee land,
the Agency will accept a lease with an
unexpired term that is at least 2 years
longer than the loan term.
*
*
*
*
*
■ 5. Amend § 3550.73 by:
■ a. Revising paragraph (b)(1);
■ b. Removing paragraph (c); and
■ c. Redesignating paragraphs (d)
through (h) as (c) through (g).
The revision reads as follows:
§ 3550. 73
Manufactured homes.
*
*
*
*
(b) * * *
(1) An existing unit and site unless it
is already financed with a section 502
loan or is an RHS REO property; or, the
unit was constructed both in
conformance with FMHCSS standards
as evidenced by both an affixed HUD
Certification label and HUD Data Plate
on or after a date specified in the
program handbook, the unit is installed
on a permanent foundation which meets
HUD regulations, and the unit has not
been previously installed on a different
homesite or had any alterations since
construction in the factory except as
specified in the program handbook.
*
*
*
*
*
PART 3555—GUARANTEED RURAL
HOUSING PROGRAM
Loan purposes.
*
§ 3550.58
*
Subpart A—General
§ 3550.10
Certification label and HUD Data Plate);
on or after a date specified in the
program handbook (any adjustment to
the date will be made public through a
Federal Register notice); and has not
been previously installed on a different
homesite or had any alterations since
construction in the factory (except for
porches, decks or other structures which
were built to engineered designs or were
approved and inspected by local code
officials), or for any other purposes
prohibited in § 3550.73(b).
*
*
*
*
*
■ 4. Amend § 3550.58 by adding a
sentence to the end of paragraph (b) to
read as follows:
6. The authority citation for part 3555
continues read as follows:
■
Authority: 5 U.S.C. 301; 42 U.S.C. 1471 et
seq.
Subpart E—Underwriting the Property
7. Amend § 3555.203 by revising
paragraph (b)(3) to read as follows:
■
PO 00000
Frm 00020
Fmt 4702
Sfmt 4702
§ 3555.203
55605
Ownership requirements.
*
*
*
*
*
(b) * * *
(3) The lease has an unexpired term
of at least 45 years from the date of loan
closing, except in the case of properties
located on Tribal Trust land, individual
(allotted) Trust land, or Tribal restricted
fee land, where the lease must have an
unexpired term at least equal to the term
of the loan. Leases on Tribal Trust land,
individual Trust (allotted) land, or
Tribal restricted fee land, for period of
25 years which are renewable for a
second 25 year period are permissible,
as are leases of a longer duration. For
new energy efficient manufactured and
modular home financing in land-lease
communities operating on a nonprofit
basis and on Tribal Trust land, the
Agency will accept a lease with an
unexpired term that is at least two years
longer than the loan term;
*
*
*
*
*
■ 8. Amend § 3555.208 by:
■ a. Adding paragraph (a)(3); and
■ b. Revising paragraphs (b)(3)(iii) and
(iv), and adding paragraphs (b)(3)(v)
through (viii).
The addition and revisions read as
follows:
§ 3555.208 Special requirements for
manufactured homes.
*
*
*
*
*
(a) * * *
(3) An existing unit and site,
provided:
(i) The unit was constructed in
conformance with the Federal
Manufactured Home Construction and
Safety Standards (FMHCSS) as
evidenced by both an affixed HUD
Certification label and HUD Data Plate;
and
(ii) The unit was installed on a
permanent foundation in accordance to
the manufacturer’s requirements and
HUD installation standards.
Certification of a proper foundation is
required; and
(iii) The unit has not been previously
installed on a different homesite, or had
any alterations since construction in the
factory, except for porches, decks or
other structures which were built to
engineered designs or were approved
and inspected by local code officials;
and
(iv) The unit was constructed on or
after the date specified in the program
handbook (any adjustment to the date
will be made public through a Federal
Register notice).
*
*
*
*
*
(b) * * *
(3) * * *
(iii) The unit and site are being sold
from the lender’s inventory, and the
E:\FR\FM\16AUP1.SGM
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Federal Register / Vol. 88, No. 157 / Wednesday, August 16, 2023 / Proposed Rules
loan for which the unit and site served
as security was a loan guaranteed by
Rural Development;
(iv) The unit was installed on its
initial installation site on a permanent
foundation complying with the
manufacturers and HUD installation
standards; or
(v) The unit was constructed in
conformance with the Federal
Manufactured Home Construction and
Safety Standards (FMHCSS) as
evidenced by an affixed HUD
Certification label and HUD Data Plate;
and
(vi) The foundation design meets
HUD standards for manufactured
housing; and
(vii) The unit has not had any
alterations or modifications since
construction in the factory, except for
porches, decks or other structures which
were built to engineered designs or were
approved and inspected by local code
officials; and
(viii) The unit was constructed on or
after a date, as specified in the program
handbook (any adjustment to the date
will be made public through a Federal
Register notice) (any adjustment to the
date will be made public through a
Federal Register notice).
*
*
*
*
*
(e) HUD requirements. The FMHCSS
and HUD requirements can be located in
the National Archives Code of Federal
Regulations, 24 CFR part 3280—
Manufactured Home Construction
Safety Standards.
*
*
*
*
*
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2023–17519 Filed 8–15–23; 8:45 am]
BILLING CODE 3410–XV–P
FEDERAL ELECTION COMMISSION
11 CFR Part 112
[Notice 2023–13]
Artificial Intelligence in Campaign Ads
Federal Election Commission.
Notification of availability of
Petition for Rulemaking.
AGENCY:
ACTION:
The Commission announces
its receipt of a Petition for Rulemaking
filed by Public Citizen. The Petition
asks the Commission to amend its
regulation on fraudulent
misrepresentation of campaign authority
to make clear that the related statutory
prohibition applies to deliberately
deceptive Artificial Intelligence
campaign ads.
lotter on DSK11XQN23PROD with PROPOSALS1
SUMMARY:
VerDate Sep<11>2014
16:28 Aug 15, 2023
Jkt 259001
Comments must be submitted on
or before October 16, 2023.
ADDRESSES: All comments must be in
writing. Commenters may submit
comments electronically via the
Commission’s website at https://
sers.fec.gov/fosers/, reference REG
2023–02.
Each commenter must provide, at a
minimum, his or her first name, last
name, city and state. All properly
submitted comments, including
attachments, will become part of the
public record, and the Commission will
make comments available for public
viewing on the Commission’s website
and in the Commission’s Public Records
Office. Accordingly, commenters should
not provide in their comments any
information that they do not wish to
make public, such as a home street
address, personal email address, date of
birth, phone number, social security
number, or driver’s license number, or
any information that is restricted from
disclosure, such as trade secrets or
commercial or financial information
that is privileged or confidential.
FOR FURTHER INFORMATION CONTACT:
Robert M. Knop, Assistant General
Counsel, or Ms. Jennifer Waldman,
Attorney, 1050 First Street NE,
Washington, DC 20463, (202) 694–1650
or (800) 424–9530.
SUPPLEMENTARY INFORMATION: On July
13, 2023, the Commission received a
Petition for Rulemaking (‘‘Petition’’)
from Public Citizen, a non-profit
advocacy organization. The Petition
asks the Commission to amend its
regulation on ‘‘fraudulent
misrepresentation’’ at 11 CFR 110.16 to
clarify that ‘‘the restrictions and
penalties of the law and the Code of
Regulations are applicable’’ should
‘‘candidates or their agents fraudulently
misrepresent other candidates or
political parties through deliberately
false [Artificial Intelligence]-generated
content in campaign ads or other
communications.’’ Petition at 5.
The Federal Election Campaign Act
(the ‘‘Act’’) provides that a candidate for
federal office, employee, or agent of
such a candidate shall not ‘‘fraudulently
misrepresent’’ themselves or any
committee or organization under their
control ‘‘as speaking or writing or
otherwise acting for or on behalf of any
other candidate or political party or
employee or agent thereof on a matter
which is damaging to such other
candidate or political party or employee
or agent thereof.’’ 52 U.S.C. 30124(a)(1).
The Petition asserts that generative
Artificial Intelligence and deepfake
technology, is being ‘‘used to create
convincing images, audio and video
DATES:
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Fmt 4702
Sfmt 4702
hoaxes.’’ Petition at 2. The Petition
asserts that while the technology is not
so far advanced currently as for viewers
to not be able to identify when it is used
disingenuously, if the use of the
‘‘technology continues to improve, it
will become increasingly difficult, and
perhaps, nearly impossible for an
average person to distinguish deepfake
videos and audio clips from authentic
media.’’ Id.
The Petition notes that the technology
will ‘‘almost certainly create the
opportunity for political actors to
deploy it to deceive voters[,] in ways
that extend well beyond any First
Amendment protections for political
expression, opinion or satire.’’ Id.
According to the Petition, this
technology might be used to ‘‘create a
video that purports to show an
opponent making an offensive statement
or accepting a bribe’’ and, once
disseminated, be used for the purpose of
‘‘persuading voters that the opponent
said or did something they did not say
or do.’’ Id. The Petition explains that a
deepfake audio clip or video by a
candidate or their agent would violate
the fraudulent misrepresentation
provision by ‘‘falsely putting words into
another candidate’s mouth, or showing
the candidate taking action they did not
[take],’’ thereby ‘‘fraudulently speak[ing]
or act[ing] ‘for’ that candidate in a way
deliberately intended to [harm] him or
her.’’ Id. at 3. The Petitioner states that
because the deepfaker misrepresents
themselves as speaking for the
deepfaked candidate, ‘‘the deepfake is
fraudulent because the deepfaked
candidate in fact did not say or do what
is depicted by the deepfake and because
the deepfake aims to deceive the
public.’’ Id. The Petitioner draws a
distinction between deepfakes, which it
contends violates the prohibition on
fraudulent misrepresentation, and other
uses of Artificial Intelligence in
campaign communications, such as in
parodies, where the purpose and effect
are not to deceive voters, or as in other
communications where ‘‘there is a
sufficiently prominent disclosure that
the image, audio or video was generated
by [A]rtificial [I]ntelligence and portrays
fictitious statements and actions.’’ Id. at
4.
The Commission seeks comment on
the Petition. The public may inspect the
Petition on the Commission’s website at
https://www.fec.gov/fosers/.
The Commission will not consider the
Petition’s merits until after the comment
period closes. If the Commission
decides that the Petition has merit, it
may begin a rulemaking proceeding.
The Commission will announce any
E:\FR\FM\16AUP1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 157 (Wednesday, August 16, 2023)]
[Proposed Rules]
[Pages 55601-55606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17519]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Parts 3550 and 3555
[Docket No. RHS-23-SFH-0007]
RIN 0575-AD32
Updating Manufactured Housing Provisions
AGENCY: Rural Housing Service, Department of Agriculture (USDA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), proposes to amend the current regulations for the Single-Family
Housing (SFH) Section 502 Direct and the SFH Guaranteed Loan Program.
The intent of this proposed rule is to allow the Agency to give
borrowers increased purchase options within a competitive market and
increase adequate housing along with an enhanced customer experience
with the SFH programs.
DATES: Comments on the proposed rule must be received on or before
October 16, 2023.
ADDRESSES: Comments may be submitted electronically by the Federal
eRulemaking Portal: Go to https://www.regulations.gov and, in the
``Search Field'' box, labeled ``Search for dockets and documents on
agency actions,'' enter the following docket number: https://aiomostl0as096.usda.net/desktop/container/?locale=en_US-/home (RHS-23-
SFH-0007) or RIN# 0575-AD32, then click search. To submit or view
public comments, select the following document title: (Updating
Manufactured Housing Provisions) from the ``Search Results,'' and
select the ``Comment'' button. Before inputting your comments, you may
also review the ``Commenter's Checklist'' (optional). Insert your
comments under the ``Comment'' title, click ``Browse'' to attach files
(if available). Input your email address and select ``Submit Comment.''
Information on using Regulations.gov, including instructions for
accessing documents, submitting comments, and viewing the docket after
the close of the comment period, is available through the site's
``FAQ'' link.
Other Information: Additional information about Rural Development
and its programs is available on the internet at https://www.rurdev.usda.gov/.
All comments will be available for public inspection online at the
Federal eRulemaking Portal (https://www.regulations.gov).
FOR FURTHER INFORMATION CONTACT: Sonya Evans, Finance & Loan Analyst,
SFH Direct Loan Division, Rural Housing Service, Rural Development,
United States Department of Agriculture, 1400 Independence Avenue SW,
Washington, DC 20250, Phone: 423-268-4333, Email: [email protected].
Or contact Stephanie Freeman, Finance & Loan Analyst, Policy, Analysis,
and Communications Branch, Single Family Housing Guaranteed Loan
Division, Rural Housing Service, Rural Development, United States
Department of Agriculture, 1400 Independence Avenue SW, Washington DC
20250, Phone: 314-457-6413, Email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
RHS offers a variety of programs to build or improve housing and
essential community facilities in rural areas. RHS offers loans,
grants, and loan guarantees for single- and multifamily housing,
childcare centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, and
housing for farm laborers. RHS also provides technical assistance loans
and grants in partnership with non-profit organizations, Indian tribes,
state and federal government agencies, and local communities.
Well built, affordable housing is essential to the vitality of
communities in rural America. Rural Development's (RD) Single Family
Housing (SFH) Programs give families and individuals the opportunity to
buy, build, or repair affordable homes located in rural America.
Eligibility for these loans, loan guarantees, and grants is based on
income and varies according to the average median income for each area.
RHS administers the following SFH Programs under 7 CFR parts 3550
and 3555 authorized by Section 502 of the Housing Act of 1949, as
amended, (42 U.S.C. 1472):
Section 502 Direct Loan Program assists low- and very low-
income applicants who currently do not own adequate housing and cannot
obtain other credit, the opportunity to acquire, build, rehabilitate,
improve, or relocate dwellings in rural areas.
Section 502 Guaranteed Loan Program assists low- and
moderate-income applicants the opportunity to acquire, build,
rehabilitate, improve, or relocate dwellings in rural areas.
The President announced in May 2022, the release of a Housing
Supply Action Plan (the Plan) to ease the burden of housing costs over
time, by boosting the supply of quality housing in every community. The
plan includes legislative and administrative actions that will help
close America's housing supply shortfall in five years, starting with
the creation and preservation of hundreds of thousands of affordable
housing units in the next three years. Under the Plan, the
Administration intends to deploy new financing mechanisms to build and
preserve more housing where housing gaps exist. There is special
emphasis on supporting production and availability of manufactured
housing through improved loan rates and terms making this type of
homeownership more attainable and affordable.
II. Discussion of the Proposed Rule
The Housing and Urban Development's (HUD) Office of Manufactured
Housing Program regulates the construction of all manufactured homes
built in the United States. These homes are built and installed in
accordance with the Federal Manufactured Home Construction and Safety
Standards (FMHCSS) administered by HUD. FMHCSS became effective June
15, 1976, replacing the term ``Mobile Home'' with ``Manufactured
Home.'' These federal standards regulate manufactured housing design
and construction, installation, strength and durability,
transportability, fire resistance, energy efficiency and quality. The
FMHCSS also sets performance standards for the heating, plumbing, air
conditioning, thermal and electrical systems. Prior to the
implementation of the FMHCSS in 1976, the construction and installation
of manufactured homes were not uniformly regulated and were not
generally considered to be quality, safe
[[Page 55602]]
and sanitary housing. Further improvements to the FMHCSS were enacted
in 1994 and 2007 with additional improvements in 2021 that included the
development of mandates for manufactured home installation, the
creation of a federal installation oversight program, mandated updates
to the HUD code to enforce construction and safety standards for
factory built manufactured homes to address items such as structural
design, wind force resistance, additional loads requirements that are
in accordance with the design load identified on data plate, and smoke
alarm requirements. These were all implemented in accordance with the
Manufactured Home Improvement Act of 2000.
RHS defines a manufactured home as a structure that is built to
FMHCSS and placed on a permanent foundation. It is transportable in one
or more sections, which in the traveling mode is 10-body feet (3.048
meters) or more in width, and when erected on site is 400 or more
square feet (37.16 square meters), and which is built on a permanent
chassis and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities. It is
designed and constructed for permanent occupancy by a single family and
contains permanent eating, cooking, sleeping, and sanitary facilities.
The plumbing, heating, and electrical systems are contained in the
structure. RHS will continue to require all new and existing
manufactured homes to be constructed and placed on a permanent
foundation in accordance with RD Instruction 1924-A, as applicable to
the Direct Program, and the FMHCSS, established by HUD and found in 24
CFR part 3280.
The proposed revisions will allow the Agency to responsibly and
effectively utilize funds appropriated by Congress by allowing
borrowers more purchase options within a competitive market and thereby
increasing the likelihood of finding adequate housing which increases
program impact. The Agency proposes to modify the direct and guaranteed
loan regulations as follows:
1. Update the current regulations to permit the purchase of
existing manufactured homes for direct and guaranteed loans. The
current direct and guaranteed regulations prohibit the purchase of a
manufactured home unless it is a new unit, an existing unit and site
already financed with a section 502 loan or is a RHS real estate owned
(REO) property. The Agency has been operating a pilot for the direct
and guaranteed programs to test the concept of waiving the regulatory
restrictions to finance existing manufactured homes in selected pilot
states, even if the home is not currently financed by the agency. Under
the pilot, the unit must have been constructed on or after January 1,
2006, in conformance with the Federal Manufactured Home Construction
and Safety Standards (FMHCSS), as evidenced by an affixed Housing and
Urban Development (HUD) Certification Label and the unit must not have
been previously installed on a different homesite, or had any
structural alterations to it since construction in the factory, except
for porches, decks or other structures which were built to engineered
designs or were approved and inspected by local code officials. Once
this rulemaking is final, these requirements will be the placed in the
program handbooks and any adjustment to the date will be made public
through a Federal Register notice. It has been determined that the
pilot has been successful in increasing homeownership by expanding the
Direct and Guaranteed portfolios by 1,372 loans. Therefore, regulatory
revisions are being proposed to provide additional flexibility for the
programs to lend on existing manufactured homes built in conformance
with standards and a manufacture date, as determined by the Agency,
based on factors such as industry standards and practices.
2. For direct and guaranteed loans, update the current regulations
language to meet conditions of the ownership requirement for energy
efficient manufactured and modular home financing in Land-Lease
Communities Operating on a Nonprofit Basis pilot, and expand this to
include Tribal lands. These updates are expected to provide additional
flexibility for new energy efficient manufactured and modular homes
that meet the conditions of the pilot, as well as provide consistency
between the direct and guaranteed programs. Currently, the Agency is
operating an ownership requirement pilot for energy efficient
manufactured and modular home financing in land-lease communities
operating on a nonprofit basis, for the direct and guaranteed programs.
Under the pilot, RD accepts leases with an unexpired term that is at
least two years beyond the term of the promissory note in the pilot
states.
3. Remove the administrative requirements from the regulations for
review and approval of applications from manufactured housing dealers
for direct loans. The removal of this requirement will alleviate Agency
staff from the review and approval of applications from manufactured
housing dealers and the maintenance of a list that must be updated
every two years based on the activity of the ``approved'' dealer-
contractors, thus providing the Agency with needed flexibility. This
review process provided minimal value to both the applicant or dealer
and contrasted from the requirements for site-built contractors who do
not have a formal application or approval process nor is there a list
of approved site-built contractors maintained. The removal will also
prevent delays in the processing of a manufactured housing purchase
request by eliminating the need to approve the dealer prior to
proceeding, which can be time-consuming due to the review of financial
and credit information for the dealer. The dealer will still be
required to provide all site services and agree to construction and
development requirements in 7 CFR 3550.73(d) and standards set forth in
the FMHCSS.
4. Revise the definition of ``Manufactured home'' in 7 CFR 3550.10
Definitions to remove reference to RHS Thermal Performance Standards
for direct loans.
The removal of this reference is necessary due to RHS exemption
from these thermal standards. Instead, RHS relies on HUD FMHCSS for
thermal performance requirements for construction of manufactured
homes. This change will also provide further alignment between the
Section 502 Direct and Guaranteed loan programs.
The Agency proposes to update the current Section 502 Direct and
SFH Guaranteed Loan Programs regulations implemented under 7 CFR parts
3550 and 3555. This will be accomplished by reducing the regulatory
burdens that are specifically related to manufactured housing
requirements, enhancing program delivery, customer service, promoting
consistency between the direct and guaranteed SFH loan programs, and
reflect current housing market conditions and mortgage loan practices.
III. Summary of Changes
The Agency proposes to change 7 CFR parts 3555 and 3550 by:
(1) Update sections 3550.52(e)(1), 3550.73(b)(1), 3555.208(b)(3)
and add new paragraph 3555.208(a)(3) to clarify that borrowers are
allowed under the direct and guaranteed loan programs to purchase
existing manufactured homes constructed in conformance with the FMHCSS
standards, as specified in program handbooks.
(2) Update sections 3550.58(b) and 3555.203(b)(3) so that, for the
direct and guaranteed loan programs, the Agency will accept a land-
lease with an unexpired term that is at least two years longer than the
mortgage term for new
[[Page 55603]]
energy efficient manufactured and modular home financing in Tribal and
land-lease communities operating on a nonprofit basis.
(3) Remove paragraph (c) from section 3550.73 which requires Agency
approval of manufactured housing dealers for direct loans.
(4) Update the definition of Manufactured home under section
3550.10, by removing reference to ``RHS Thermal Performance Standards''
for direct loans. SFH is exempt from RHS Thermal Performance Standards
compliance.
IV. Regulatory Information
Statutory Authority
Section 510(k) of Title V the Housing Act of 1949 [42 U.S.C.
1480(k)], as amended, authorizes the Secretary of the Department of
Agriculture to promulgate rules and regulations as deemed necessary to
carry out the purpose of that title; and implemented under 7 CFR parts
3550 and 3555.
Executive Order 12372, Intergovernmental Review of Federal Programs
These programs are not subject to the requirements of Executive
Order 12372, ``Intergovernmental Review of Federal Programs,'' as
implemented under the USDA's regulations at 2 CFR part 415, subpart C.
Executive Order 12866, Regulatory Planning and Review
This proposed rule has been determined to be non-significant and,
therefore, was not reviewed by the Office of Management and Budget
(OMB) under Executive Order 12866.
Executive Order 12988, Civil Justice Reform
This proposed rule has been reviewed under Executive Order 12988.
In accordance with this proposed rule: (1) Unless otherwise
specifically provided, all State and local laws that conflict with this
proposed rule will be preempted; (2) no retroactive effect will be
given to this proposed rule except as specifically prescribed in the
proposed rule; and (3) administrative proceedings of the National
Appeals Division of the Department of Agriculture (7 CFR part 11) must
be exhausted before suing in court that challenges action taken under
this proposed rule.
Executive Order 13132, Federalism
The policies contained in this proposed rule do not have any
substantial direct effect on States, on the relationship between the
National Government and the States, or on the distribution of power and
responsibilities among the various levels of government. This proposed
rule does not impose substantial direct compliance costs on state and
local governments; therefore, consultation with States is not required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This executive order imposes requirements on RHS in the development
of regulatory policies that have tribal implications or preempt tribal
laws. RHS has determined that the proposed rule does not have a
substantial direct effect on one or more Indian tribe(s) or on either
the relationship or the distribution of powers and responsibilities
between the Federal Government and Indian tribes. Thus, this proposed
rule is not subject to the requirements of Executive Order 13175. If
tribal leaders are interested in consulting with RHS on this rule, they
are encouraged to contact USDA's Office of Tribal Relations or RD's
Tribal Coordinator at: [email protected] to request such a consultation.
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969,
Public Law 91-190, this document has been reviewed in accordance with 7
CFR part 1970 (``Environmental determined that i) this action meets the
criteria established in 7 CFR 1970.53(f); ii) no extraordinary
circumstances exist; and iii) the action is not ``connected'' to other
actions with potentially significant impacts, is not considered a
``cumulative action'' and is not precluded by 40 CFR 1506.1. Therefore,
the Agency has determined that the action does not have a significant
effect on the human environment, and therefore neither an Environmental
Assessment nor an Environmental Impact Statement is required.
Regulatory Flexibility Act
This proposed rule has been reviewed with regard to the
requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). The
undersigned has determined and certified by signature on this document
that this proposed rule will not have a significant economic impact on
a substantial number of small entities since this rulemaking action
does not involve a new or expanded program nor does it require any more
action on the part of a small business than required of a large entity.
Unfunded Mandates Reform Act (UMRA)
Title II of the UMRA, Public Law 104-4, establishes requirements
for Federal agencies to assess the effects of their regulatory actions
on state, local, and tribal governments and on the private sector.
Under section 202 of the UMRA, the Agency generally must prepare a
written statement, including cost-benefit analysis, for proposed and
final rules with Federal mandates that may result in expenditures to
state, local, or tribal Governments, in the aggregate, or to the
private sector, of $100 million or more in any one year. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires the Agency to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This proposed rule contains no Federal mandates (under the
regulatory provisions of title II of the UMRA) for state, local, and
tribal Governments or for the private sector. Therefore, this proposed
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Paperwork Reduction Act
The Office of Management and Budget's (OMB) regulation (5 CFR part
1320) implementing provisions of the Paperwork Reduction Act of 1995
(Pub. L. 104-13) requires that interested members of the public and
affected agencies have an opportunity to comment on information
collection and recordkeeping activities (see 5 CFR 1320.8(d)). This
notice identifies the following information collection that RHS is
submitting to OMB as a revision to an existing approved collection with
Agency adjustment. The Agency expects a modest change in burden once
this proposed rule is published as a final rule in the Federal
Register.
Title: Direct Single Family Housing Loan and Grant Programs, 7 CFR
3550-HB-1-3550, and HB-2-3550.
OMB Control Number: 0575-0172.
Expiration Date of Approval: February 28, 2025.
Type of Request: Revision of a currently approved information
collection.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average .500 hours per response.
Respondents: Business or other for profit, not-for-profit
institutions.
Estimated Number of Respondents: Approximately 50 manufactured
dealer-
[[Page 55604]]
contractors seeking approval to provide manufactured sales, service and
site development services.
Estimated Number of Responses per Respondent: 1.
Estimated Number of Responses: 50.
Estimated Total Annual Burden on Respondents: 25 hours.
Abstract: Through the Section 502 direct single family housing loan
program, RHS provides 100 percent loan financing to assist eligible
low- and very low-income applicants purchase modest homes in eligible
rural areas by providing payment assistance to increase an applicant's
repayment ability.
Applicants must provide the Agency with a uniform residential loan
application and supporting documentation (e.g., verification of income,
assets, liabilities, etc.) when applying for assistance. The
information requested is comparable to that required by any public or
private mortgage lender.
Applicants who choose to purchase a new manufactured home are
currently required to purchase from an approved manufactured dealer-
contractor. Manufactured dealer-contractors who wish to participate in
the Section 502 direct program are required to submit RD Form 1944-5,
Manufactured Housing Dealer-Contractor Application, along with
supplementary data sources such as financial statements and tax returns
to verify or determine employment, income, and held assets. After RHS
review, a dealer-contractor meeting qualification criteria may be added
to list of approved dealer-contractors maintained for each state.
Applicants must choose an approved dealer-contractor from this list for
purchase and all other site services related to the transaction. If an
applicant wishes to purchase a new manufactured home from a dealer-
contractor who has not received prior approval, the applicant is
notified of other approved dealer-contractors on the state list. If
applicants still request to purchase from a dealer-contractor who has
not received prior approval, the dealer-contractor must submit the
required form and supplementary documentation and wait for their
approval prior to entering into a contract with the applicant.
Elimination of prior approval will remove obstacles and potential
delays for applicants to purchase new manufactured housing while
sustained manufactured construction regulations will continue to
maintain quality and installation standards.
Comments are invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information will have practical utility;
(b) the accuracy of the agency's estimate of the burden of the
collection of information including the validity of the methodology and
assumptions used;
(c) ways to enhance the quality, utility, and clarity of the
information to be collected; and
(d) ways to minimize the burden of the collection of information on
respondents, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology.
Copies of this information collection can be obtained from Crystal
Pemberton, Rural Development Innovation Center--Regulations Management
Division, at Telephone: (202) 260-8621, Email:
[email protected].
All responses to this notice will be summarized and included in the
request for OMB approval. All comments will also become a matter of
public record.
E-Government Act Compliance
RHS is committed to complying with the E-Government Act by
promoting the use of the internet and other information technologies to
provide increased opportunities for citizen access to Government
information, services, and other purposes.
Civil Rights Impact Analysis
Rural Development has reviewed this proposed rule in accordance
with USDA Regulation 4300-004, Civil Rights Impact Analysis,'' to
identify any major civil rights impacts the proposed rule might have on
program participants on the basis of age, race, color, national origin,
sex, or disability. After review and analysis of the proposed rule and
available data, it has been determined that implementation of the
proposed rule will not adversely or disproportionately impact very low-
, low- and moderate-income populations, minority populations, women,
Indian tribes, or persons with disability by virtue of their race,
color, national origin, sex, age, disability, or marital or familial
status. No major civil rights impact is likely to result from this
proposed rule.
Assistance Listing
The programs affected by this regulation are listed in the
Assistance Listing Catalog (formerly Catalog of Federal Domestic
Assistance) under number 10.410, Very Low to Moderate Income Housing
Loans (Section 502 Rural Housing Loans), and number 10.417, Very Low-
Income Housing Repair Loans and Grants (specifically the Section 504
direct loans and grants).
Non-Discrimination Statement
In accordance with Federal civil rights laws and USDA civil rights
regulations and policies, the USDA, its Mission Areas, agencies, staff
offices, employees, and institutions participating in or administering
USDA programs are prohibited from discriminating based on race, color,
national origin, religion, sex, gender identity (including gender
expression), sexual orientation, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, or staff office; the USDA TARGET
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service
at (800) 877-8339.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866)
632-9992, or by writing a letter addressed to USDA. The letter must
contain the complainant's name, address, telephone number, and a
written description of the alleged discriminatory action in sufficient
detail to inform the Assistant Secretary for Civil Rights about the
nature and date of an alleged civil rights violation.
The completed AD-3027 form or letter must be submitted to USDA by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
(2) Fax: (833) 256-1665 or (202) 690-7442; or
(3) Email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
[[Page 55605]]
List of Subjects
7 CFR Part 3550
Administrative practice and procedure, Environmental impact
statements, Fair housing, Grant programs--housing and community
development, Housing, Loan programs--housing and community development,
low- and moderate-income housing, Reporting and recordkeeping
requirements, Rural areas.
7 CFR Part 3555
Administrative practice and procedure, Business and industry,
Conflicts of interest, Credit, Environmental impact statements, Fair
housing, Flood insurance, Grant programs--housing and community
development, Home improvement, Housing, Loan programs--housing and
community development, low and moderate-income housing, Manufactured
homes, Mortgages, Reporting and recordkeeping requirements, Rural
areas.
For the reasons set forth in the preamble, the Rural Housing
Service proposes to amend 7 CFR parts 3550 and 3555 as follows:
PART 3550--DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS
0
1. The authority citation for part 3550 continues to read as follows:
Authority: 5 U.S.C. 301; 42 U.S.C. 1480.
Subpart A--General
0
2. Amend Sec. 3550.10 by revising the first sentence of the
Manufactured home definition to read as follows:
Sec. 3550.10 Definitions.
* * * * *
Manufactured home. A structure that is built to Federally
Manufactured Home Construction and Safety Standards established by HUD
and found at 24 CFR part 3280.
* * *
* * * * *
Subpart B--Section 502 Origination
0
3. Amend Sec. 3550.52 by revising paragraph (e)(1) to read as follows:
Sec. 3550.52 Loan purposes.
* * * * *
(e) * * *
(1) Purchase an existing manufactured home (unless the unit was
constructed in conformance with Federal Manufactured Home Construction
and Safety Standards (FMHCSS) standards as evidenced by both an affixed
HUD Certification label and HUD Data Plate); on or after a date
specified in the program handbook (any adjustment to the date will be
made public through a Federal Register notice); and has not been
previously installed on a different homesite or had any alterations
since construction in the factory (except for porches, decks or other
structures which were built to engineered designs or were approved and
inspected by local code officials), or for any other purposes
prohibited in Sec. 3550.73(b).
* * * * *
0
4. Amend Sec. 3550.58 by adding a sentence to the end of paragraph (b)
to read as follows:
Sec. 3550.58 Ownership requirements.
* * * * *
(b) * * * For new energy efficient manufactured and modular home
financing in land-lease communities operating on a nonprofit basis, and
on Tribal Trust land, individual (allotted) Trust land, or Tribal
restricted fee land, the Agency will accept a lease with an unexpired
term that is at least 2 years longer than the loan term.
* * * * *
0
5. Amend Sec. 3550.73 by:
0
a. Revising paragraph (b)(1);
0
b. Removing paragraph (c); and
0
c. Redesignating paragraphs (d) through (h) as (c) through (g).
The revision reads as follows:
Sec. 3550. 73 Manufactured homes.
* * * * *
(b) * * *
(1) An existing unit and site unless it is already financed with a
section 502 loan or is an RHS REO property; or, the unit was
constructed both in conformance with FMHCSS standards as evidenced by
both an affixed HUD Certification label and HUD Data Plate on or after
a date specified in the program handbook, the unit is installed on a
permanent foundation which meets HUD regulations, and the unit has not
been previously installed on a different homesite or had any
alterations since construction in the factory except as specified in
the program handbook.
* * * * *
PART 3555--GUARANTEED RURAL HOUSING PROGRAM
0
6. The authority citation for part 3555 continues read as follows:
Authority: 5 U.S.C. 301; 42 U.S.C. 1471 et seq.
Subpart E--Underwriting the Property
0
7. Amend Sec. 3555.203 by revising paragraph (b)(3) to read as
follows:
Sec. 3555.203 Ownership requirements.
* * * * *
(b) * * *
(3) The lease has an unexpired term of at least 45 years from the
date of loan closing, except in the case of properties located on
Tribal Trust land, individual (allotted) Trust land, or Tribal
restricted fee land, where the lease must have an unexpired term at
least equal to the term of the loan. Leases on Tribal Trust land,
individual Trust (allotted) land, or Tribal restricted fee land, for
period of 25 years which are renewable for a second 25 year period are
permissible, as are leases of a longer duration. For new energy
efficient manufactured and modular home financing in land-lease
communities operating on a nonprofit basis and on Tribal Trust land,
the Agency will accept a lease with an unexpired term that is at least
two years longer than the loan term;
* * * * *
0
8. Amend Sec. 3555.208 by:
0
a. Adding paragraph (a)(3); and
0
b. Revising paragraphs (b)(3)(iii) and (iv), and adding paragraphs
(b)(3)(v) through (viii).
The addition and revisions read as follows:
Sec. 3555.208 Special requirements for manufactured homes.
* * * * *
(a) * * *
(3) An existing unit and site, provided:
(i) The unit was constructed in conformance with the Federal
Manufactured Home Construction and Safety Standards (FMHCSS) as
evidenced by both an affixed HUD Certification label and HUD Data
Plate; and
(ii) The unit was installed on a permanent foundation in accordance
to the manufacturer's requirements and HUD installation standards.
Certification of a proper foundation is required; and
(iii) The unit has not been previously installed on a different
homesite, or had any alterations since construction in the factory,
except for porches, decks or other structures which were built to
engineered designs or were approved and inspected by local code
officials; and
(iv) The unit was constructed on or after the date specified in the
program handbook (any adjustment to the date will be made public
through a Federal Register notice).
* * * * *
(b) * * *
(3) * * *
(iii) The unit and site are being sold from the lender's inventory,
and the
[[Page 55606]]
loan for which the unit and site served as security was a loan
guaranteed by Rural Development;
(iv) The unit was installed on its initial installation site on a
permanent foundation complying with the manufacturers and HUD
installation standards; or
(v) The unit was constructed in conformance with the Federal
Manufactured Home Construction and Safety Standards (FMHCSS) as
evidenced by an affixed HUD Certification label and HUD Data Plate; and
(vi) The foundation design meets HUD standards for manufactured
housing; and
(vii) The unit has not had any alterations or modifications since
construction in the factory, except for porches, decks or other
structures which were built to engineered designs or were approved and
inspected by local code officials; and
(viii) The unit was constructed on or after a date, as specified in
the program handbook (any adjustment to the date will be made public
through a Federal Register notice) (any adjustment to the date will be
made public through a Federal Register notice).
* * * * *
(e) HUD requirements. The FMHCSS and HUD requirements can be
located in the National Archives Code of Federal Regulations, 24 CFR
part 3280--Manufactured Home Construction Safety Standards.
* * * * *
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2023-17519 Filed 8-15-23; 8:45 am]
BILLING CODE 3410-XV-P
