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National Housing Law Project
Housing Law Bulletin

Recent Regulations and Notices

The following are housing-related regulations and notices that HUD and other federal agencies have recently issued. For the most part, the summaries are taken directly from the agency's summary of the regulation in the Federal Register. The notice summaries are taken from the introductory paragraphs in the notices.

Copies of the cited documents may be secured from various sources, including (1) the Handsnet folder at Legal Services/Substantive Law/Housing Forum, (2) the Government Printing Office's spot on the World Wide Web,1 (3) bound volumes of the Federal Register, HUD Clips2, and HUD3. Citations are included with each document to help you secure copies.

HUD Regulations

Revised Restrictions on Assistance to Noncitizens; Correction
24 C.F.R. Part 5
61 Fed. Reg. 64,617-64,618 (Dec. 6, 1996)
Summary: On November 29, 1996, at 61 Fed. Reg. 60,535, HUD incorrectly listed November 29, 1996, as the public comment due date to comment on the interim rule change made to Section 214 of the Housing and Community Development Act of 1980. The correct public comment due date is January 28, 1997. These changes were made by the Use of Assisted Housing by Aliens Act of 1996. Section 214 prohibits HUD from making certain financial assistance available to persons other than United States citizens, or certain categories of eligible non-citizens.

HOME Investment Partnerships Program; Additional Streamlining
24 C.F.R. Part 92
61 Fed. Reg. 65,297-65,299 (Dec. 11, 1996)
Summary: This rule proposes to streamline the HOME Program regulation by: (1) replacing the hearing procedures of the current HOME rule with the Department-wide streamlined hearing procedures; (2) removing the closeout requirements and instead providing that HOME funds be closed out in accordance with procedures established by HUD; and (3) replacing the extensive requirements for the competitive reallocation of HOME funds with a citation to the selection factors in the HOME statute and a statement of the maximum number of points that may be awarded for each factor. In addition, this rule invites comment on establishing a separate market interest rate formula for rehabilitation loans.

Streamlining the Single-Family Components of the Single-Family/Multifamily Regulations
24 C.F.R. Parts 200, 213, 220, 221, 233 and 234
61 Fed. Reg. 60,157-60,163 (Dec. 11, 1996)
Summary: This final rule amends primarily the single-family components of HUD's regulations for certain FHA single-family and multifamily housing mortgage insurance programs. In an effort to comply with the President's regulatory reform initiatives, this rule streamlines these regulations by elimination regulatory provisions that are redundant, obsolete, or otherwise unnecessary.

Tenant Participation in Multifamily Housing Projects
24 C.F.R. Part 245
61 Fed. Reg. 57,959-57,964 (Nov. 26, 1996)
Summary: This rule consolidates into one subpart the nearly identical provisions concerning tenant participation in certain mortgagor initiated actions that require HUD approval. Currently, these procedures are found in four subparts. The rule also provides an easier to follow statement of applicability.

Section 8 Housing Assistance Payments Program; Contract Rent Annual Adjustment Factors, Fiscal Year 1997
24 C.F.R. Part 888
61 Fed. Reg. 66,131-66,156 (Nov. 8, 1996)
Summary: The United States Housing Act of 1937 requires that the assistance contracts signed by owners participating in HUD's Section 8 Housing Assistance Payments programs provide for annual or more frequent adjustment in the maximum monthly rentals for units covered by the contract to reflect changes based on Fair Market Rents (FMRs) prevailing in a particular market area, or on a reasonable formula. This document announces revised Annual Adjustment Factors (AAFs) for assistance contract anniversaries from October 1, 1996. The factors 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 Random Digit Dialing (RDD) rent change surveys.

Public Housing Management Assessment Program
24 C.F.R. Part 901
61 Fed. Reg. 68,893-68,950 (Dec. 16, 1996)
Summary: This interim rule implements the proposed revision, published on May 6, 1996, of the Public Housing Management Assessment Program (PHMAP) at 24 C.F.R. Part 901. PHMAP applies to public housing agencies (PHAs) and resident management corporations (RMCs), and any other entities under contract to manage public housing, but does not apply to Indian housing authorities, nor to the Family Self-Sufficiency Program authorized under Section 23. PHMAP provides policies and procedures to identify PHA management capabilities and deficiencies, and assists HUD state/area offices in accountability monitoring and risk management.

HUD Notices

Assessment of the Reasonable Revitalization Potential of Certain Public Housing Required by Law
61 Fed. Reg. 68,048-68,049 (Dec. 26, 1996)
Summary: On September 26, 1996, HUD published a notice in the Federal Register (61 Fed. Reg. 50,631-38) that implements Section 202 of the Omnibus Consolidated Rescissions and Appropriations Act of 1996. Section 202 requires PHAs to identify certain distressed public housing developments that will be required to be replaced with tenant-based assistance if they cannot be revitalized by any reasonable means. In that eventuality, households in occupancy would be offered tenant-based or project-based assistance and would be relocated - if sufficient housing will not be maintained, rehabilitated or replaced on the current site - to other decent, safe, sanitary, and affordable housing which is, to the maximum extent practicable, housing of their choice. This notice amends the timeframes that the Department used in its September 26, 1996, notice for accomplishing the standards necessary for compliance with Section 202. The timeframes are being amended because comments on the September 26, 1996, notice were due by November 25, 1996, and the Department wishes to (1) adequately respond to all comments and (2) give PHAs sufficient time to comply with the Section 202 requirements, including any revisions. PHAs should position themselves to respond in a timely manner by beginning to collect the necessary data. The same data is likely to be required in order to comply with Section 202, regardless of any possible changes to the notice. Except for the amendments to the timeframes made by this notice, all of the requirements of the September 26, 1996, notice continue to be in effect. The following dates are the new timeframes: Accomplish Standards A to C by January 31, 1997 (was December 29, 1996); Accomplish Standard D by March 31, 1997 (was December 29, 1996); Accomplish Standard E by June 30, 1997 (was February 27, 1997); Submit Conversion Plan by September 26, 1997 (was August 26, 1997).

NOFA for Rental Assistance for Persons with Disabilities, in Support of Designated Housing Allocation Plans
61 Fed. Reg. 56,089-56,094 (Oct. 30, 1996)
Summary: This notice announces the availability of up to $78.6 million ($20.3 million in two-year budget authority and $58.3 million in five-year budget authority) for Section 8 rental certificates and vouchers for persons with disabilities, in support of designated housing allocation plans. This funding will support approximately 4,300 rental vouchers and certificates. Public housing agencies are invited to respond to this NOFA. It is not applicable to Indian Housing Authorities, as the requirements of Section 7 (42 U.S.C. § 1437e) pertinent to designated housing allocation plans are not applicable to IHAs. The purpose of this NOFA is to provide rental vouchers and certificates to enable persons with disabilities to rent affordable private housing.

Notice of Public and Indian Housing/Section 8 Moving to Work Demonstration
61 Fed. Reg. 66,855-66,861 (Dec. 18, 1996)
Summary: This notice invites applications for Public Housing Agencies and Indian Housing Agencies (HAs) for participation in the Public and Indian Housing/Section 8 Moving to Work demonstration program. HUD is authorized to select up to 30 HAs that administer the public and Indian housing and Section 8 programs to participate in the demonstration. HUD will select HAs for the demonstration through a merit-based process, using the evaluation criteria described in the notice.

The purpose of the demonstration is to give HAs the flexibility to design and test various approaches for providing and administering housing assistance that (1) reduce cost and achieve greater cost effectiveness; (2) provide work incentives to promote resident self-sufficiency; and (3) increase housing choices for low-income families. To achieve these goals, each selected HA will have considerable flexibility in determining how to use the federal funds, as long as the HA meets specified criteria. Furthermore, the selected HAs will be permitted to combine funds from the public and Indian housing operating assistance program for uses that meet the purposes of the demonstration. Funds used in the demonstration (whether combined or not) are generally not subject to statutory and regulatory requirements of the public and Indian housing and Section 8 programs.

NOFA for FY 1996 Public and Indian Housing Tenant Opportunities Program
61 Fed. Reg. 56,244 (Oct. 31, 1996)
Summary: For reasons set forth in the Supplementary Information section of this document, this Notice advises the public that HUD will not award funds under the Public and Indian Housing Tenant Opportunities Program for FY 1996, until further notice. The Supplementary Information states that on July 3, 1996, HUD published in the Federal Register (at FR-4066-N-01) a NOFA that announced that availability of approximately $15 million to eligible resident organizations to provide technical assistance and training activities under the Tenant Opportunity Program (TOP). On August 9, 1996, HUD published in the Federal Register (at 41,646) an amendment to the July 3, 1996, NOFA that (1) decreased the amount of funds made available for basic and additional grants for resident organizations; (2) correspondingly increased the amount of funds made available for the provision of technical assistance by national, regional, or statewide resident organizations (NROs/RROs/SROs); and (3) extended the eligibility and application deadline to September 9, 1996, for NROs/RROs/SROs to apply for funding under the other requirements and criteria set out in the July 3, 1996, NOFA. The amendment also provided that NRO/RRO/SRO applicants who had previously submitted applications in accordance with the provisions in the July 3, 1996, NOFA were permitted to amend their applications prior to the extended deadline date of September 9, 1996.

On September 20, 1996, Congress issued a Conference Report (H.R. REP. NO. 812) that accompanied H.R. 3666, the bill that appropriated funds for HUD (and other agencies) for FY 1997 and that was signed into law on September 26, 1996 (Pub. L. No. 104-204). The Conference Report stated:

Funds for the Tenant Opportunity Program shall not be available for any purpose until the Secretary certifies that the program is working effectively. The conferees are concerned about reports of wasteful spending practices and allegedly fraudulent activities within the program, practices which put the program at risk of elimination altogether.4
Therefore, HUD is undertaking an evaluation of the TOP program's effectiveness and problems of concern to the Congress and will take corrective action upon confirmation of program deficiencies, in order to reduce and eliminate potential risks.

HUD will issue a NOFA for FY 1997 after incorporating program revisions that are responsive to the Conference Report regarding the need for TOP program integrity and accountability. The NOFA will include the funding appropriations from both FY 1996 and FY 1997.

Rural Housing Service Regulations

Reengineering and Reinvention of the Direct Section 502 and 504 Single-Family Housing (SFH) Programs
7 C.F.R. Parts 1086, 1910, 1922, 1944, 1951, 1955, 1956, 1965, and 3550
61 Fed. Reg. 59,761-59,802 (Nov. 22, 1996)
Summary: The Rural Housing Service (RHS), formerly the Rural Housing and Community Development Service (RHCDS), a successor agency to the Department of Agriculture's Farmers Home Administration (FmHA), is streamlining and reengineering its regulations and will be utilizing private sector processes and techniques in the administration of its direct single-family housing (SFH) portfolio. This action is taken to reduce unnecessary federal regulations, improve customer service, and improve the agency's ability to achieve greater efficiency, flexibility and effectiveness in managing its SFH portfolio. The intended effect of this action is to improve service to rural America and comply with the National Performance Review's (NPR's) goal of reducing unnecessary federal regulations.

1At http://www.access.gpo.gov/su_docs.

2Call Aspen Systems at (301) 251-5395 to find out how to use HUD Clips.

3To order Notices and Handbooks from HUD, call (800) 767-7468 or fax (202) 708-2313.

4H.R. REP. NO. 812, 104th Cong., 2d Sess. 59.



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Main Office:
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