Strengthening the Section 184 Indian Housing Loan Guarantee Program; Delay of Effective and Compliance Dates, 50523-50524 [2024-13124]
Download as PDF
<![CDATA[
Federal Register / Vol. 89, No. 116 / Friday, June 14, 2024 / Rules and Regulations
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 58 and 1005
[Docket No. FR–5593–F–04]
RIN 2577–AD01
Strengthening the Section 184 Indian
Housing Loan Guarantee Program;
Delay of Effective and Compliance
Dates
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; delay of effective
date, establishment of compliance dates.
AGENCY:
The Department of Housing
and Urban Development (HUD)
published in the Federal Register on
March 20, 2024, a final rule to
strengthen its Section 184 Indian Loan
Guarantee Program by, among other
things, clarifying rules for Tribes,
lenders, servicers, and other
participants. The final rule established
an effective date of June 18, 2024. To
provide time for HUD to develop and
implement a comprehensive handbook
for the Section 184 Program and to
allow Tribes, lenders, servicers, and
other participants time to conform their
policies, procedures, and systems to
comply with HUD’s March 20, 2024,
final rule, this rulemaking delays that
effective date to December 31, 2024, and
establishes a compliance date of March
1, 2025.
DATES:
Effective date: The effective date for
the final rule published March 20, 2024,
at 89 FR 20032, is delayed from June 18,
2024, until December 31, 2024.
Compliance date: March 1, 2025.
FOR FURTHER INFORMATION CONTACT:
Brian Cook, Acting Director, Office of
Loan Guarantee, Office of Native
American Programs, Office of Public
and Indian Housing, Department of
Housing and Urban Development, 451
7th Street SW, Room 4108, Washington,
DC 20410; telephone number 202–402–
4978 (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 or
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: On March
20, 2024, HUD published a final rule
titled ‘‘Strengthening the Section 184
Indian Housing Loan Guarantee
Program’’ (the Final Rule). The Final
ddrumheller on DSK120RN23PROD with RULES1
SUMMARY:
VerDate Sep<11>2014
16:11 Jun 13, 2024
Jkt 262001
Rule amended the regulations to the
Section 184 Indian Housing Loan
Guarantee Program (Section 184
Program). Since its inception, the
Section 184 Program has experienced an
increase in demand. As a result, HUD’s
March 20, 2024, final rule updated
program regulations to minimize
potential risk and increase program
participation by financial institutions.
The final rule added eligibility and
participation requirements for Lender
Applicants, Direct Guarantee Lenders,
Non-Direct Guarantee Lenders, Holders
and Servicers and other Section 184
Program participants. The final rule also
clarified the rules governing Tribal
participation in the program,
established underwriting requirements,
specifies rules on the closing and
endorsement process, established
stronger and clearer servicing
requirements, established program rules
governing claims submitted by Servicers
and paid by HUD, and added standards
governing monitoring, reporting,
sanctions, and appeals. Lastly, the final
rule added new definitions and makes
statutory conforming amendments,
including the categorical exclusion of
the Section 184 Program in HUD’s
environmental review regulations. The
final rule established a June 18, 2024,
effective date.
Since publishing the final rule, HUD
has determined that additional time is
required to fully implement the rule.
Initially, HUD has been drafting the
Section 184 Program Indian Housing
Loan Guarantee Program Handbook
(Section 184 Handbook). The Section
184 Handbook will provide
comprehensive guidance and
clarification for all stakeholders to fully
understand and implement the final
rule. Given the size of the Section 184
Handbook, HUD has determined that it
will not be available prior to the current
June 18, 2024, effective date. HUD has
also determined that it needs additional
time to ensure compliance with the
Paperwork Reduction Act requirements.
Finally, HUD has determined that
Tribes, lenders, servicers, and other
participants need additional time to
conform their policies, procedures, and
systems to comply with final rule. As a
result of these factors, HUD is delaying
the effective date of the March 20, 2024,
final rule from June 18, 2024, until
December 31, 2024. In addition, to
provide HUD time to complete drafting
the Section 184 Handbook and to
provide stakeholders time to implement
the instructions in the Section 184
Handbook, which may not be fully
available before the effective date, HUD
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
50523
is delaying compliance until March 1,
2025.
Administrative Procedure Act and 24
CFR Part 10
In general, HUD publishes a rule for
public comment before issuing a rule for
effect, in accordance with both the
Administrative Procedure Act (APA), 5
U.S.C. 553, and its own regulations on
rulemaking, 24 CFR part 10. Both the
APA and Part 10, however, provide for
exceptions from that general rule where
HUD finds good cause to omit advance
notice and public participation. The
good cause requirement is satisfied
when the prior public procedure is
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ To publish a rule
for effect prior to receiving and
responding to public comments, the
agency must make a finding that at least
one of these ‘‘good cause’’ exceptions
applies.
HUD has determined that good cause
exists to promulgate this final rule
without prior notice and comment.
Without this rulemaking, the final rule
published at 89 FR 20032 will become
effective June 18, 2024. Given the
imminence of the effective date, seeking
prior notice and the opportunity for
public comment on this delay is
impractical. Specifically, if prior notice
and opportunity for public comment are
required to delay the effective date to
December 31, 2024, this final rule will
not be issued prior to June 18, 2024. If
this were to happen, HUD would not be
able to provide comprehensive guidance
to Tribes, lenders, servicers, and other
participants to assist them in
implementing the requirements of the
March 20, 2024, final rule. Further,
implementation of the rule would
further be complicated by the absence of
approved paperwork. Finally, this delay
will provide Tribes, lenders, servicers,
and other participants time to update
their procedures, policies, and systems
to ensure a smooth implementation of
the rule.
Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563 and 14094
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
E:\FR\FM\14JNR1.SGM
14JNR1
50524
Federal Register / Vol. 89, No. 116 / Friday, June 14, 2024 / Rules and Regulations
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. Executive Order
14094 (Modernizing Regulatory Review)
amends section 3(f) of Executive Order
12866, among other things. This rule
has been determined not to be a
‘‘significant regulatory action’’ as
defined in section 3(f) of the Executive
order and therefore was not reviewed by
OMB.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1531–
1538) establishes requirements for
Federal agencies to assess the effects of
their regulatory actions on state, local,
and tribal governments, and the private
sector. This rule will not impose any
Federal mandates on any state, local, or
tribal government or the private sector
within the meaning of the Unfunded
Mandates Reform Act of 1995.
ddrumheller on DSK120RN23PROD with RULES1
Environmental Review
A Finding of No Significant Impact
with respect to the environment was
made prior to publication of the March
20, 2024, final rule, in accordance with
HUD regulations at 24 CFR part 50,
which 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
remains applicable and 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 Finding of No
Significant Impact will also be available
for review in the docket for this rule on
Regulations.gov.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits, to the extent
practicable and permitted by law, an
agency from promulgating a regulation
that has federalism implications and
either imposes substantial direct
compliance costs on state and local
governments and is not required by
statute, or preempts state law, unless the
relevant requirements of section 6 of the
Executive order are met. This rule does
not have federalism implications and
does not impose substantial direct
VerDate Sep<11>2014
16:11 Jun 13, 2024
Jkt 262001
compliance costs on state and local
governments or preempt state law
within the meaning of the Executive
order.
Damon Smith,
General Counsel.
[FR Doc. 2024–13124 Filed 6–13–24; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9945]
RIN 1545–BO81
Guidance Under Section 1061;
Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Final rule; correction and
correcting amendments.
AGENCY:
This document contains
corrections to Treasury Decision 9945
published in the Federal Register on
Tuesday, January 19, 2021. Treasury
Decision 9945 issued final regulations
that recharacterize certain net long-term
capital gains of a partner that holds one
or more applicable partnership interests
as short-term capital gains.
DATES: These corrections are effective
on June 14, 2024 and for dates of
applicability, see §§ 1.702–1(g), 1.704–
3(f), 1.1061–1(b), 1.1061–2(c), 1.1061–
3(f), 1.1061–4(d), 1.1061–5(g), 1.1061–
6(e), and 1.1223–3(g).
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations, Alta Li of
the Office of Associate Chief Counsel
(Passthroughs and Special Industries) at
(202) 317–5279 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations (TD 9945)
subject to these corrections are issued
under section 1061 of the Internal
Revenue Code.
Corrections to Publication
Accordingly, the final regulations (TD
9945) that are the subject of FR Doc.
2021–00427, published on Tuesday,
January 19, 2021, are corrected as
follows:
1. On page 5455, in the first column,
in the seventh line of the column the
language ‘‘make’’ is corrected to read
‘‘made’’.
2. On page 5455, in the first column,
in the fifteenth line of the column the
language ‘‘are’’ is corrected to read ‘‘at’’.
PO 00000
Frm 00024
Fmt 4700
Sfmt 4700
3. On page 5456, in the first column,
the fourteenth line of the column is
corrected to read ‘‘terms, priority, type
and level of risk’’.
4. On page 5457, in the first column,
in the last line of the column the
language ‘‘allocation’’ is corrected to
read ‘‘allocations’’.
5. On page 5459, in the first column,
the thirteenth line from the bottom of
the column is corrected to read ‘‘other
partner, other than’’.
6. On page 5459, in the first column,
the fifth line from the bottom of the
column is corrected to read ‘‘advances
made by another partner in the’’.
7. On page 5459, in the first column,
the fourth line from the bottom of the
column is corrected to read
‘‘partnership (or any Related Person
with respect to such’’.
8. On page 5459, in the first column,
the third line from the bottom of the
column is corrected to read ‘‘other
partner, other than the partnership) to
a’’.
9. On page 5459, in the second
column, the ninth line of the column is
corrected to read ‘‘loan or advance made
by another partner (or’’.
10. On page 5459, in the second
column, the tenth line of the column is
corrected to read ‘‘any Related Person
with respect to such other partner, other
than the’’.
11. On page 5463, in the third
column, the second line of the second
full paragraph is corrected to read ‘‘that
once a partnership interest qualifies as’’.
12. On page 5465, in the first column,
the twelfth line of the first full
paragraph is corrected to read ‘‘Assets;
and (vi) options or derivative’’.
13. On page 5465, in the third
column, in the twelfth line of the
second full paragraph the language
‘‘APIs’’ is corrected to read ‘‘API’’.
14. On page 5467, in the first column,
in the ninth line from the bottom of the
column, the language ‘‘API Distributed’’
is corrected to read ‘‘Distributed API’’.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction to the Regulations
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
E:\FR\FM\14JNR1.SGM
14JNR1
]]>Agencies
[Federal Register Volume 89, Number 116 (Friday, June 14, 2024)]
[Rules and Regulations]
[Pages 50523-50524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13124]
[[Page 50523]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 58 and 1005
[Docket No. FR-5593-F-04]
RIN 2577-AD01
Strengthening the Section 184 Indian Housing Loan Guarantee
Program; Delay of Effective and Compliance Dates
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; delay of effective date, establishment of
compliance dates.
-----------------------------------------------------------------------
SUMMARY: The Department of Housing and Urban Development (HUD)
published in the Federal Register on March 20, 2024, a final rule to
strengthen its Section 184 Indian Loan Guarantee Program by, among
other things, clarifying rules for Tribes, lenders, servicers, and
other participants. The final rule established an effective date of
June 18, 2024. To provide time for HUD to develop and implement a
comprehensive handbook for the Section 184 Program and to allow Tribes,
lenders, servicers, and other participants time to conform their
policies, procedures, and systems to comply with HUD's March 20, 2024,
final rule, this rulemaking delays that effective date to December 31,
2024, and establishes a compliance date of March 1, 2025.
DATES:
Effective date: The effective date for the final rule published
March 20, 2024, at 89 FR 20032, is delayed from June 18, 2024, until
December 31, 2024.
Compliance date: March 1, 2025.
FOR FURTHER INFORMATION CONTACT: Brian Cook, Acting Director, Office of
Loan Guarantee, Office of Native American Programs, Office of Public
and Indian Housing, Department of Housing and Urban Development, 451
7th Street SW, Room 4108, Washington, DC 20410; telephone number 202-
402-4978 (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 or 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: On March 20, 2024, HUD published a final
rule titled ``Strengthening the Section 184 Indian Housing Loan
Guarantee Program'' (the Final Rule). The Final Rule amended the
regulations to the Section 184 Indian Housing Loan Guarantee Program
(Section 184 Program). Since its inception, the Section 184 Program has
experienced an increase in demand. As a result, HUD's March 20, 2024,
final rule updated program regulations to minimize potential risk and
increase program participation by financial institutions. The final
rule added eligibility and participation requirements for Lender
Applicants, Direct Guarantee Lenders, Non-Direct Guarantee Lenders,
Holders and Servicers and other Section 184 Program participants. The
final rule also clarified the rules governing Tribal participation in
the program, established underwriting requirements, specifies rules on
the closing and endorsement process, established stronger and clearer
servicing requirements, established program rules governing claims
submitted by Servicers and paid by HUD, and added standards governing
monitoring, reporting, sanctions, and appeals. Lastly, the final rule
added new definitions and makes statutory conforming amendments,
including the categorical exclusion of the Section 184 Program in HUD's
environmental review regulations. The final rule established a June 18,
2024, effective date.
Since publishing the final rule, HUD has determined that additional
time is required to fully implement the rule. Initially, HUD has been
drafting the Section 184 Program Indian Housing Loan Guarantee Program
Handbook (Section 184 Handbook). The Section 184 Handbook will provide
comprehensive guidance and clarification for all stakeholders to fully
understand and implement the final rule. Given the size of the Section
184 Handbook, HUD has determined that it will not be available prior to
the current June 18, 2024, effective date. HUD has also determined that
it needs additional time to ensure compliance with the Paperwork
Reduction Act requirements. Finally, HUD has determined that Tribes,
lenders, servicers, and other participants need additional time to
conform their policies, procedures, and systems to comply with final
rule. As a result of these factors, HUD is delaying the effective date
of the March 20, 2024, final rule from June 18, 2024, until December
31, 2024. In addition, to provide HUD time to complete drafting the
Section 184 Handbook and to provide stakeholders time to implement the
instructions in the Section 184 Handbook, which may not be fully
available before the effective date, HUD is delaying compliance until
March 1, 2025.
Administrative Procedure Act and 24 CFR Part 10
In general, HUD publishes a rule for public comment before issuing
a rule for effect, in accordance with both the Administrative Procedure
Act (APA), 5 U.S.C. 553, and its own regulations on rulemaking, 24 CFR
part 10. Both the APA and Part 10, however, provide for exceptions from
that general rule where HUD finds good cause to omit advance notice and
public participation. The good cause requirement is satisfied when the
prior public procedure is ``impracticable, unnecessary, or contrary to
the public interest.'' To publish a rule for effect prior to receiving
and responding to public comments, the agency must make a finding that
at least one of these ``good cause'' exceptions applies.
HUD has determined that good cause exists to promulgate this final
rule without prior notice and comment. Without this rulemaking, the
final rule published at 89 FR 20032 will become effective June 18,
2024. Given the imminence of the effective date, seeking prior notice
and the opportunity for public comment on this delay is impractical.
Specifically, if prior notice and opportunity for public comment are
required to delay the effective date to December 31, 2024, this final
rule will not be issued prior to June 18, 2024. If this were to happen,
HUD would not be able to provide comprehensive guidance to Tribes,
lenders, servicers, and other participants to assist them in
implementing the requirements of the March 20, 2024, final rule.
Further, implementation of the rule would further be complicated by the
absence of approved paperwork. Finally, this delay will provide Tribes,
lenders, servicers, and other participants time to update their
procedures, policies, and systems to ensure a smooth implementation of
the rule.
Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563 and 14094
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
[[Page 50524]]
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. Executive
Order 14094 (Modernizing Regulatory Review) amends section 3(f) of
Executive Order 12866, among other things. This rule has been
determined not to be a ``significant regulatory action'' as defined in
section 3(f) of the Executive order and therefore was not reviewed by
OMB.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) establishes requirements for Federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments, and the private sector. This rule will not impose any
Federal mandates on any state, local, or tribal government or the
private sector within the meaning of the Unfunded Mandates Reform Act
of 1995.
Environmental Review
A Finding of No Significant Impact with respect to the environment
was made prior to publication of the March 20, 2024, final rule, in
accordance with HUD regulations at 24 CFR part 50, which 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 remains
applicable and 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
Finding of No Significant Impact will also be available for review in
the docket for this rule on Regulations.gov.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on state and local governments and
is not required by statute, or preempts state law, unless the relevant
requirements of section 6 of the Executive order are met. This rule
does not have federalism implications and does not impose substantial
direct compliance costs on state and local governments or preempt state
law within the meaning of the Executive order.
Damon Smith,
General Counsel.
[FR Doc. 2024-13124 Filed 6-13-24; 8:45 am]
BILLING CODE 4210-67-P
