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Recent Housing-Related Regulations and Notices
The following are significant housing-related regulations and notices that HUD or USDA have recently issued. For the most part, the summaries are taken directly from the summary of the regulation in the Federal Register or each Notice’s introductory paragraphs.
Copies of the cited documents may be secured from various sources, including (1) the Government Printing Office’s website on the World Wide Web, (2) bound volumes of the Federal Register, (3) HUD Clips, (4) HUD(1), and (5) USDA’s/ Rural Development web page. Citations are included with each document to help you secure copies.
HUD Regulations
Up-Front Grants and Loans in the Disposition of Multifamily Projects; Final Rule
64 Fed. Reg. 72,409-72,412 (Dec. 27, 1999)
Summary: The purpose of this rule is to establish generally applicable requirements to govern the use of up-front grants and loans in the disposition of HUD-owned multifamily properties by defining the projects, sales, and purchasers eligible for up-front grants and loans, and setting both a maximum per-unit and overall cap for up-front grant amounts.
Effective Date: January 26, 2000.
Civil Penalties for Fair Housing Act Violations; Final Rule
64 Fed. Reg. 72,725-72,754 (Dec. 28, 1999)
Summary: This final rule adopts revisions to HUD's regulations governing hearing procedures for civil rights matters made effective by an interim rule published on February 10, 1999. These revisions implement two important changes in the way civil penalties are assessed in fair housing cases. First, they allow an administrative law judge (ALJ) to assess a separate civil penalty against a respondent for each separate and distinct discriminatory housing practice committed by the respondent. Second, they require an ALJ to take into account, in favor of imposing a maximum civil penalty, a finding that a respondent has committed a housing-related hate act. This final rule takes into consideration public comments received on the February 10, 1999 interim rule. After careful consideration of the public comments, HUD has decided to adopt the interim rule without change.
Effective Date: January 27, 2000
Section 8 Housing Assistance Payments Program-Contract Rent Annual Adjustment Factors, Fiscal Year 2000; Notice of Revised Contract Rent Annual Adjustment Factors; Correction; Final Rule
64 Fed. Reg. 72,730-72,754 (Dec. 27, 1999)
Summary: This document corrects the Schedule C area definitions for metropolitan statistical areas (MSAs) in the following states: Alabama (Auburn-Opelika), Arizona (Flagstaff), Colorado (Grand Junction), Idaho (Pocatello), Maine (Portland), Mississippi (Hattiesburg), New Hampshire (Boston), New York (Buffalo-Niagara Falls), Oregon (Corvallis), Tennessee (Jackson), and Utah. It also clarifies the names of selected places in Connecticut and Florida. All had been incorrectly categorized or named in Schedule C of the document published in the Federal Register on September 24, 1999.
None of the AAFs published in the September 24, 1999 document are being changed by this document; however, for clarity the entire document is being reprinted, and the September 24, 1999 document should be replaced with this one. The Annual Adjustment Factors (AAFs) contained in this document are for adjustment of Section 8 contract rents on housing assistance payment contract anniversaries from October 1, 1999. The AAFs are based on a formula using data on residential rent and utilities cost changes from the most current Bureau of Labor
Statistics Consumer Price Index (CPI) survey and from HUD's Random Digit Dialing (RDD) rent change surveys.
Effective Date: October 1, 1999.
Notice of Final Fiscal Year (FY) 2000 Fair Market Rents (FMRs)
for Manufactured Home Spaces; Final Rule
64 Fed. Reg. 72,721-72,723 (Dec. 28, 1999)
Summary: FMRs for the rental of manufactured home spaces in the Section 8 housing choice voucher program are now generally 40 percent of the applicable Section 8 existing housing program FMR for a two-bedroom unit, rather than 30 percent. This reflects the change in the statute (Section 545 of the Quality Housing and Work Responsibility Act of 1998) which provides that the rent for the space with respect to which assistance payments are to be made shall include tenant-paid utilities. This change was made effective in the October 21, 1999 Federal Register publication "Section 8 Tenant-Based Assistance; Statutory Merger of Section 8 Certificate and Voucher Programs; Housing Choice Voucher Program; Final Rule'') which revised 24 C.F.R. 888.113.
Effective Date: November 22, 1999.
HUD Federal Register Notices
Teacher Next Door Initiative
64 Fed. Reg. 68,370-68,371 (Dec. 7, 1999)
Summary: HUD announces the creation of the Teacher Next Door Initiative (TND Initiative). This initiative, modeled after HUD's successful Officer Next Door Sales Program, will help more teachers become homeowners and help revitalize economically distressed neighborhoods by enabling eligible teachers to purchase HUD-acquired homes located in
HUD-designated revitalization areas at a 50 percent discount from list prices.
Public Housing Assessment System (PHAS): Transition Assistance on
Compliance With Management Indicator #5; PHA Annual Inspection of Units
64 Fed. Reg. 70,274 (Dec. 16, 1999)
Summary: This notice is a follow-up to the PHAS notice published on October 21, 1999, which advised of transition assistance in connection with implementation of the PHAS for public housing agencies (PHAs) with fiscal years ending September 30, 1999, and December 31, 1999. The October 21, 1999, notice advised that these PHAs would not be issued a PHAS score for their 1999 fiscal years, but would be issued a management assessment score based on HUD's assessment of the PHA's management operations in accordance with 24 C.F.R. part 902, subpart D. This notice provides information to PHAs on how to meet the requirements of Management Indicator #5 (PHA annual inspection of units and systems) of this subpart.
Quality Housing and Work Responsibility Act of 1998; Status of
Implementation; Guidance
64 Fed. Reg. 71,799-71,813 (Dec. 22, 1999)
Summary: On October 21, 1998, President Clinton signed into law the Quality Housing and Work Responsibility Act of 1998 (the "Public Housing Reform Act"). This statute embodies many of the reforms of the HUD 2020 Management Reform Plan that are directed at revitalizing and improving HUD's public housing and Section 8 assistance programs. This notice updates the public on HUD's overall implementation of the Public Housing Reform Act and identifies where existing implementation guidance may be found, with respect to the provisions regarding public
housing and tenant-based assistance. This notice also provides further implementation guidance on those provisions of the Public Housing Reform Act that are effective on October 1, 1999 or on October 21, 1999.
HUD Notices
Additional Instructions for Submitting First PHA Plans under the Final Rule and Extension of Due Date for Submission of PHA Plans for PHAs with Fiscal Years Beginning January 1, 2000 and April 1, 2000; Guidance for PHAs with Fiscal Years Beginning July 1, 2000 and after; Availability of Required Format for Public Housing Drug Elimination Program (PHDEP) Plan
Notice H 99-51 (Dec. 14, 1999)
Summary: This notice transmits additional instructions to PHAs on complying with the requirements of Public Housing Agency (PHA) Plans as provided in the PHA Plans Final Rule (issued October 21, 1999), found at 24 C.F.R. part 903. This notice confirms that all PHAs are subject to the requirements of the final rule, and provides information and direction for PHA Plan submissions under the final rule, particularly:
(1) PHAs with fiscal years beginning January 1, 2000 and April 1, 2000 (hereafter referred to as "January PHAs" and "April PHAs," respectively) are instructed to prepare and submit their first plans using the PHA Plan template and accompanying instructions for submission of plans (Notice PIH 99-33, Attachment B) issued in July, 1999, as amended by this notice (PIH 99-51(HA)). PHAs that may have already submitted plans to HUD as of the date of this notice are provided with special instructions where necessary.
(2) For PHAs with fiscal years beginning on or after July 1, 2000, HUD will issue guidance, templates and certifications necessary for completion of plans under the final rule in a subsequent notice.
HUD expects to issue additional information and direction to PHAs on their plan submissions. As a result, January and April PHAs may determine that additional time is needed to prepare their plans. HUD has extended the submission deadline for January PHAs to January 31, 2000 and extended the submission deadline for April PHAs to February 29, 2000. This notice also announces the availability of a template that PHAs must use to prepare and submit Public Housing Drug Elimination Program (PHDEP) plans with the PHA Plan. Use of this template is required for PHAs with fiscal years beginning April 1, 2000 and after. January PHAs have the option to use this template in Federal Fiscal Year (FFY) 2000.
Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988; Notice
PIH 99-52 (Dec. 15, 1999)
Summary: This Notice is to remind recipients of federal funds of their obligation to comply with pertinent laws and implementing regulations which provide for non-discrimination and accessibility in federally funded housing and non-housing programs for people with disabilities. Additionally, this Notice provides information on key compliance elements of the relevant regulations and examples and resources to enhance recipients' compliance efforts; however, specific regulations must be reviewed in their entirety for full compliance.
Revisions to Notice H 99-15, Emergency Initiative to Preserve Below-Market Project-Based Section 8 Multifamily Housing Stock, and Clarification of Certain Section 8 Policies in Notices H 98-34 and H 99-08
Notice: H 99-32 (Dec. 1, 1999)
Summary: This Notice revises and/or clarifies certain provisions of 1) HUD Notice H 99-15, Emergency Initiative to Preserve Below-Market Project-Based Section 8 Multifamily Housing Stock; 2) Notice H 98-34 , Project-Based Section 8 Contracts Expiring in Fiscal Year 1999; and 3) Notice H 99-08, Revision to Notice H 98-34 (HUD) on Project-Based Section 8 Contracts Expiring in Fiscal Year 1999. The Guidance in this Notice is consistent with the provisions of section 524 of the Multifamily Assisted Housing and Reform Act of 1997 (MAHRA), as amended by section 531 of the FY 2000 Appropriations Act. HUD will be issuing comprehensive guidance in the near future with respect to the implementation of Section 8 renewal provisions in the FY 2000 HUD Appropriations Act.
The authority for renewing rents in projects that were subject to Section 524(a)(1) of MAHRA is now addressed in the new Section 524(a). The authority for renewing rents in projects that were subject to section 524(a)(2) of MAHRA are now addressed in section 524(b)(1).
This Notice:
(1) Revises the instructions for conducting a comparability analysis where the owner is requesting a contract renewal without restructuring, to include units "in the expiring Section 8 contract(s)" instead of "all Section 8 units;"
(2) Makes the five-year renewal contract that is required for projects that are participating in the Mark-up-to-Market intiative (formerly Emergency Initiative) available to other owners;
(3) Provides forms of contracts to be used in FY 2000 renewals;
(4) Requires at the time of initial renewal of a Section 8 contract with rents that are below market, but which is not in the Mark-Up-To-Market initiative, that the current rents be adjusted by an OCAF or budget-based method, subject to HUD approval and provided the new rent does not exceed comparable market rent;
(5) Provides instructions for adjusting rents at thetime of initial renewals and for subsequent rent adjustments.
Revised Processing Instructions for the Section 223(f) Program
Notice: H 99-33 (Dec. 2, 1999)
Summary: The Section 223(f) Program was the major financing vehicle for existing multifamily properties that did not require substantial rehabilitation. However, market forces combined with dated instructions have caused a reduction in the level of activity within this program. This notice makes changes to the processing instructions that will enhance the program marketability and aid the Field Office's ability to review an application of mortgage insurance. Unless specifically stated, these instructions are effective immediately and apply to only Section 207 pursuant to Section 223(f) rental housing projects that do not have an outstanding firm commitment.
Reinstatement and Extension of Notice H 95-55, Procedures for Implementing Section 214 of the Housing and Community Development Act of 1980, as amended; Restrictions on Assistance to Noncitizens
Notice H 99-34 (Dec. 14, 1999)
Summary: Notice H 95-55 and related Notices (H 95-68, H 96-52, and H 96-
88) are being reinstated and extended to December 31, 2000.
Reinstatement and Extension of HUD Notices H 97-02 and H 98-11, Comprehensive Needs Assessments
Notice H 99-35 (Dec. 23, 1999)
Summary: Notice H 97-02, issued January 28, 1997, extended by HUD Notice H 98-11, issued February 23, 1998, provides instructions applicable to the Department's policy for projects required by statute to complete a Comprehensive Needs Assessment. The statute required that 100 percent of eligible projects complete a Comprehensive Needs Assessment by September 30, 1997. Until such time as the Department receives 100 percent compliance from eligible project owners, Comprehensive Needs Assessments will continue to be required. This notice requires owners that have not completed and submitted a Comprehensive Needs Assessment to do so in FY 2000.
Project-based Section 8 Contracts Expiring in Fiscal Year 2000
Notice H 99-36 (Dec. 29, 1999)
Summary: This Notice provides instructions for renewing Section 8 project-based assistance contracts (or stages) expiring in FY 2000. It:
• Provides guidance to owners, management agents, contract administrators and HUD staff on: (1) renewing contracts, including the combination of multiple stages and/or multiple contracts; (2) setting initial renewal rents and handling annual rent increases at subsequent renewals; and (3) the requirements and procedures for opting-out of a Section 8 project-based contract.
• Advises owners to submit their option selection (Attachment 4) to HUD 120 days before expiration of the contract, rather than the previous 90 days.
• Defines owners' notification responsibilities regarding: (1) contract expiration/termination; (2) prepayment notification for Emergency Low-Income Housing Preservation Act (ELIPHA) and Low-Income Housing Preservation and Resident Home Ownership Act (LIHPRHA) projects; and (3) intent to Opt out of the Section 8 program.
RHS Regulations
Re-engineering of the Section 502 Guaranteed Rural Housing (GRH); Proposed Rule
64 Fed. Reg. 70,123-70,144 (Dec. 15, 1999)
Summary: The Rural Housing Service proposes to streamline and re-engineer its regulations for the administration of its Guaranteed Rural Housing (GRH) Program. This action is taken to reduce regulations, improve customer service, and improve the Agency's ability to achieve greater efficiency, flexibility, and effectiveness in managing the program. The effect of this action is to provide better service, reduce program vulnerability, and reduce federal regulations.
Comments Due Date: February 14, 2000.
RHS Federal Register Notice
Notice of Funds Availability (NOFA) for Section 514 Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing for Fiscal Year 2000
64 Fed. Reg. 71,609-71,611 (Dec. 21, 1999)
Summary: This NOFA announces the timeframe to submit applications for Section 514 Farm Labor Housing loan funds and Section 516 Farm Labor Housing grant funds for new construction of off-farm units for farmworker households. Applications may also include requests for Section 521 rental assistance (RA). This document describes the method used to distribute funds, the application process, and submission requirements.
Response Deadline: The closing deadline for receipt of all applications in response to this NOFA is 5:00 p.m., local time for each Rural Development State office on June 19, 2000.
Notes-
(1) To order Notices and Handbooks from HUD, call (800) 767-7468 or fax (202) 708-2313.
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