National Housing Law Project Housing Law Bulletin

The following are housing-related regulations and Notices that HUD has recently issued. For the most part, the summaries are taken directly from HUD’s summary of the regulation in the Federal Register. The Notice summaries are taken from each Notice’s introductory paragraphs.

Copies of the cited HUD 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, (4) HUD Clips,/2/ and (5) HUD./3/ Citations are included with each document to help you secure copies.

Summary: On May 29, 1998, HUD published for public comment a proposed rule that would amend HUD's regulations for the disposition of HUD-acquired single-family properties. Among other amendments, the proposed rule would provide HUD with the necessary flexibility to use a variety of innovative, efficient, and cost-effective methods for selling its inventory of single-family properties. HUD's goals are to reduce the inventory of single-family properties while continuing to expand homeownership opportunities for American families and to ensure the stability of the Federal Housing Administration (FHA) Mortgage Insurance Fund. This final rule makes effective the amendments in the May 29, 1998, proposed rule and takes into consideration the public comments submitted on the proposed rule.

Effective date: March 11, 1999.

Summary: On December 18, 1997, HUD published for public comment a proposed rule that would amend HUD's regulations governing hearing procedures for civil rights matters to clarify that, in a given case, an Administrative Law Judge (ALJ) may, and in appropriate circumstances

should, assess more than one civil penalty against a given respondent where the respondent has committed separate and distinct acts of discrimination. The rule also proposed to amend these regulations to describe how ALJs are to consider housing-related hate acts under the six factors ALJs apply in determining the amount of a civil penalty to assess against a respondent found to have committed a discriminatory housing practice. This interim rule makes effective the amendments in the December 18, 1997, proposed rule, takes into consideration the public comments received on the proposed rule. (Additional comments were solicited.)

Effective date: March 12, 1999.

Summary: This interim rule implements an important new component of public housing and tenant-based assistance operations — the public housing agency plans. Through these plans, a public housing agency (PHA) will advise HUD, its residents and members of the public of the PHA’s mission for serving the needs of low-income and very low-income families, and the PHA’s strategy for addressing those needs. The public housing agency plans constitute one of several public housing reforms made by the Quality Housing and Work Responsibility Act of 1998. This rule establishes initial procedures and requirements for development, submission and implementation of the plans.

Effective date: March 22, 1999.

Summary: HUD is publishing this proposed rule to implement a recent statutory amendment to HUD's FHA Single Family Mortgage Insurance Program. The statutory amendment requires the original lender to disclose certain information, in the form of a notice, to each prospective borrower who has applied for an FHA-insured home mortgage. HUD is required to develop this disclosure notice. Specifically, through the notice, the lender must provide the borrower with an analysis comparing the mortgage costs of the FHA-insured mortgage to the mortgage costs of other similar conventional mortgage products that the lender offers and for which the borrower might qualify. The disclosure notice must also provide information about when the borrower's requirement to pay FHA mortgage insurance premiums terminates.

Summary: This Notice withdraws a proposed rule that would have suspended the authority of the HUD Secretary to provide FHA insurance pursuant to Section 248 of the National Housing Act for mortgage loans made for the financing of single-family homes on Indian reservations.

Effective date: February 22, 1999.

Summary: This document makes technical amendments to the final rule that was published April 30, 1998 (63 Fed. Reg. 23,826), which combined and conformed program regulations for the Section 8 certificate and voucher programs. (See Certificate and Voucher Conforming Rules: The Last Installment, 28 HOUS. L. BULL. 73, and Recent HUD and USDA Notices and Regulations (first item), 28 HOUS. L. BULL. 85 (both May 1998).

Effective date: April 15, 1999.

Operating Fund Rule; Final Notice of Establishment of Negotiated Rulemaking Committee and Notice of First Meeting; Proposed Rule

Summary: HUD announces the establishment of a negotiated rulemaking advisory committee under the Federal Advisory Committee Act. The establishment of the Committee is required by the Quality Housing and Work Opportunity Act of 1998, which requires issuance of regulations under the Negotiated Rulemaking Act of 1990. The purpose of the Committee is to discuss and negotiate a proposed rule that would change the current method of determining the payment of operating subsidies to public housing agencies (PHAs). The Committee consists of

representatives with a definable stake in the outcome of the proposed rule. This document announces the Committee members and the dates, location, and agenda for the first Committee meeting.

Summary: HUD is establishing a Negotiated Rulemaking Advisory Committee under the Federal Advisory Committee Act. The establishment of the committee is required by the Quality Housing and Work Responsibility Act of 1998, which requires issuance of regulations under the Negotiated Rulemaking Act of 1990. The purpose of the Committee is to discuss and negotiate a rule that would change the current method of distributing funds to public housing agencies (PHAs) for purposes of renewing assistance contracts in the tenant-based Section 8 program. The Committee will consist of persons representing stakeholder interests in the outcome of the rule. In accordance with 5 U.S.C. § 564 (Section 564 of the Negotiated Rulemaking Act of 1990), this document advises the public of the establishment of the Committee, provides the public with information regarding it, solicits public comment on the proposed membership of the Committee; and explains how persons may be nominated for membership.

Comment due date: April 19, 1999.

Summary: HUD is establishing a Negotiated Rulemaking Advisory committee under the Federal Advisory Committee Act. The establishment of the Committee is required by the Quality Housing and Work Opportunity Act of 1998, which requires issuance of regulations under the Negotiated Rulemaking Act of 1990. The purpose of the Committee is to discuss and negotiate a proposed rule that would change the current method of determining the allocation of capital funds to public housing agencies (PHAs). The Committee will consist of representatives with a definable stake in the outcome of a proposed rule. In accordance with 5 U.S.C. § 564 (Section 564 of the Negotiated Rulemaking Act of 1990), this document advises the public of the establishment of the Committee, provides the public with information regarding it, solicits public comment on the proposed membership of the Committee, and solicits public comment on specific agenda items to be considered by the Committee.

Comment due date: April 19, 1999.

Summary: On October 21, 1998, President Clinton signed into law the Quality Housing and Work Responsibility Act of 1998. This new statute, part of HUD’s fiscal year 1999 HUD Appropriations Act, 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. The purpose of this Notice is to advise the public of those public and assisted housing statutory provisions that are effective immediately and action that may or should be taken now. This Notice also provides guidance on certain other provisions in the FY 1999 HUD Appropriations Act that impact public housing programs and Section 8 assistance.

Summary: This Federal Register notice provides for the benefit of the public the contents of a HUD Notice issued to public housing agencies (PHAs) on December 30, 1998. That Notice advised PHAs how HUD is calculating the amount of assistance available to them to renew Section 8 rental and certificate and voucher contracts. A recent statutory provision specifies the method for HUD to use in allocating housing assistance available for renewal of these expiring contracts. The statute requires HUD to implement the provision through notice not later than December 31, 1998, and to issue final regulations on the subject developed through the negotiated rulemaking process no later than October 21, 1999. In accordance with the statute, the notice was issued on December 30, 1998.

Summary: This document announces HUD’s intention to develop, through proposed rulemaking, a formula allocation funding for HUD’s Public and Indian Housing Drug Elimination Program. HUD believes that formula funding, as opposed to competitive funding, provides a more timely, predictable and equitable allocation of funds. HUD solicits comments in advance of this rulemaking on a method, components of a method, or methods that would result in reliable and equitable funding to public housing agencies with drug elimination programs and ensure that this funding is allocated to agencies meeting certain performance standards.

Summary: HUD is establishing a Negotiated Rulemaking Advisory Committee under the Federal Advisory Committee Act. The establishment of the committee is required by the Quality Housing and Work Opportunity Act of 1998, which requires issuance of regulations under the Negotiated Rulemaking Act of 1990. The purpose of the Committee is to discuss and negotiate a proposed rule that would change the current method of determining the payment of operating subsidies to public housing agencies (PHAs). The Committee will consist of representatives with a definable stake in the outcome of a proposed rule. In accordance with Section 564 of the Negotiated Rulemaking Act of 1990, this Notice: (1) advises the public of the establishment of the Committee, (2) provides the public with information regarding the Committee, (3) solicits public comment on the proposed membership of the Committee, and (4) explains how persons may be nominated for Committee membership.

Summary: This Fiscal Year 1999 Super Notice of Funding Availability (SuperNOFA) announces the availability of approximately $2.4 billion in HUD program funds covering 32 grant categories within programs operated and administered by the following HUD offices: the Office of Community Planning and Development (CPD), the Office of Housing-Federal Housing

Administration (FHA), the Office of Public and Indian Housing, the Office of Policy Development and Research, the Office of Fair Housing and Equal Opportunity; and the Office of Lead Hazard Control. The general section of this SuperNOFA provides the application procedures and requirements that are applicable to all the programs. The programs section provides a description of the specific programs for which funding is made available and describes any additional procedures and requirements that are applicable to a specific program. Both sections provide information on all the requirements for funding.

Application due dates: Application due dates are established for each program for which funding is sought.

Summary: The purpose of the Family Unification Program is to promote family unification by providing housing assistance to families for whom the lack of adequate housing is a primary factor in the separation, or the threat of imminent separation, of children from their families.

The $75 million in one-year budget authority will support approximately 11,200 Section 8 rental vouchers. A provision in the FY 1998 Family Unification Program NOFA indicated that any approvable 1998 applications not funded because of insufficient funds would be funded first with any Family Unification Program appropriations available in FY 1999. Accordingly, these unfunded FY 1998 applications were funded first in FY 1999 in the order in which they were selected in the FY 1998 lottery for the Family Unification Program. After funding these previously unfunded FY 1998 applications, approximately $28.2 million to fund approximately 4,200 units will be available in FY 1999 for new applications for the Family Unification Program.

Eligible applicants: Public Housing Agencies (PHAs). Indian Housing Authorities, Indian tribes and their tribally designated housing entities are not eligible.

Application deadline: May 28, 1999.

Summary: This NOFA announces the FY 1999 funding available for the Service Coordinator Program in multifamily housing. Up to $5 million in funding is available.

The purpose of this Service Coordinator Program is to allow multifamily housing owners to assist elderly residents and residents with disabilities to obtain needed supportive services from the community in order to enable them to continue living as independently as possible in their apartments.

Only owners of eligible developments may apply for and become the recipient of grant funds. Property management companies may administer grant programs but are not eligible applicants. More detailed eligibility criteria are set out in the NOFA.

Application deadline: July 15, 1999.

Summary: The purpose of the Section 8 Family Self-Sufficiency (FSS) Program is to promote the development of local strategies to coordinate the use of assistance under the Section 8 rental certificate and rental voucher programs with public and private resources to enable participating families to achieve economic independence and self-sufficiency. An FSS program coordinator assures that program participants are linked to the supportive services they need to achieve self-sufficiency.

This NOFA announces the availability of approximately $32 million in Fiscal Year (FY) 1999 to fund Section 8 Family Self-Sufficiency (FSS) program coordinators.

Public housing agencies (HAs) eligible to receive funding under this NOFA are only those that received funding under the FY 1998 NOFA for Section 8 FSS Program Coordinators and those HAs authorized through their HUD-approved FSS Action Plan to administer Section 8 FSS programs of at least 25 FSS slots. Under this NOFA, both the voluntary Section 8 FSS slots and the mandatory Section 8 FSS slots reflected in the HA's HUD-approved FSS Action Plan are counted in determining the HA's Section 8 FSS program size. HAs with Section 8 FSS programs of fewer than 25 approved slots also may receive funding under this NOFA if they are applying jointly with one or more other HAs, so that between or among the HAs they have HUD approval to administer at least 25 Section 8 FSS slots. There is no maximum Section 8 program size limit for HAs eligible to apply for funding under this NOFA. Indian Housing Authorities (IHAs) are not eligible for funding under this NOFA since the Native American Housing Assistance and Self Determination Act of 1996 does not allow HUD to enter into new Annual Contributions Contracts (ACCs) with IHAs after September 30, 1997.

Application deadline: May 7, 1999.

Summary: The purpose of this program is to provide Section 8 rental vouchers to enable persons with disabilities (elderly and non-elderly) to rent affordable private housing.

Approximately $48.5million in five-year budget authority for approximately 1,600 rental vouchers is available under this NOFA. Although the NOFA issued on April 30, 1998, for the FY 1998 Mainstream Program (63 Fed. Reg. 4,359) indicated that approvable applications not funded in FY 1998 would receive priority for funding in FY 1999 contingent upon FY 1999 appropriations, HUD must depart from this approach. With the enactment of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act of 1999 (Pub. L. No. 105-276, 112 Stat. 2461, approved Oct. 21, 1998), Congress directed HUD in the FY 1999 House Committee Report to broaden the Section 811 Mainstream Program's eligible applicants to include disability nonprofit organizations, as well as PHAs. Consequently, the approximately $48.5 million available under this NOFA will be used to fund new FY 1999 Section 811 program applications submitted in response to this NOFA by PHAs and nonprofit disability organizations. PHAs with unfunded FY 1998 Mainstream Program applications will need to submit a new application in accordance with the requirements of this NOFA in order to be eligible to receive any FY 1999 Mainstream Program funding.

Applications are also being invited, however, from PHAs for one-year budget authority funding (non-Section 811 funds) that HUD anticipates may be available for the Mainstream Program in FY 1999. Specifically, any portion of the $40 million in one-year budget authority in FY 1999 appropriations related to designated housing plans, preferences in occupancy for the elderly in certain types of Section 8 project-based developments, or restrictions in occupancy to

elderly only in certain types of Section 202, Section 221(d)(3), or Section 236 developments remaining unobligated will be added to the approximately $48.5 million available under this NOFA. This one-year budget authority will be for use only for non-elderly disabled families.

PHAs and nonprofit disability organizations that provide services to disabled families are eligible to apply for the $48.5 million in five-year budget authority available under this NOFA for applications submitted in FY 1999. Only PHAs are eligible to apply for the one-year budget authority (up to a maximum of $40 million) that may otherwise be available under this NOFA. Indian Housing Authorities, Indian tribes and their tribally designated housing entities are not eligible to apply.

The rental vouchers that HUD will provide under this NOFA must be made available to eligible disabled families (as defined in paragraph II(B)(1) of the NOFA) regardless of their type of disability.

Application deadline: May 7, 1999.

Summary: The purpose of the rental voucher funding being made available under this NOFA is to enable non-elderly families with disabilities to rent affordable private housing. The rental vouchers will assist public housing agencies (PHAs) in providing sufficient alternative resources to meet the housing needs of those non-elderly disabled families who would have been housed by the PHA if occupancy in a designated public housing project/building (or portion thereof) were not restricted to elderly households. The vouchers will also assist PHAs that wish to continue to designate their buildings as "mixed elderly and disabled buildings'' but that can demonstrate a need for alternative resources for non-elderly disabled families.

Approximately $20 million in one-year budget authority for approximately 4,200 Section 8 rental vouchers is available.

Eligible applicants: Public housing agencies (PHAs). Indian Housing Authorities, Indian tribes and their tribally designated housing entities are not eligible.

Application deadline: June 30, 1999.

Summary: The purpose of this program is to provide Section 8 rental vouchers to non-elderly disabled families who are not currently receiving housing assistance in certain Section 8 project-based developments due to the owners establishing preferences for the admission of elderly families, or in certain types of Section 202, Section 221(d)(3), or Section 236 developments where the owners are restricting occupancy in the developments (or portions thereof) to elderly families. The rental vouchers will enable non-elderly disabled families to rent affordable housing.

Approximately $20 million in one-year budget authority for approximately 4,200 Section 8 rental vouchers is available.

Eligible applicants: Public housing agencies (PHAs). Indian Housing Authorities, Indian tribes and their tribally designated housing entities are not eligible.

Application deadline: June 30, 1999.

Summary: The purpose of the program is to provide Section 8 Welfare-to-Work rental voucher program funding, as provided by the VA/HUD and Independent Agencies Appropriations Act of 1999 (1999 Appropriations Act), for local self-sufficiency/welfare-to-work initiatives in San Bernardino County, California; Cleveland, Ohio; Kansas City, Missouri; Charlotte, North Carolina; Miami/Dade County, Florida; Prince Georges County, Maryland; New York City, New York; and Anchorage, Alaska.

At least $4 million is available to each of the eight sites identified above.

Eligible applicants: Housing agencies (HAs) currently administering Section 8 rental certificate and voucher programs in any of the eight locations identified above in this NOFA and in the 1999 Appropriations Act.

Application deadline: May 7, 1999.

Summary: The purpose of the Rural Housing and Economic Development program is to build capacity at the state and local level for rural housing and economic development and to support innovative housing and economic development activities in rural areas. The funds made available under this program will be awarded competitively, through a selection process conducted by HUD in consultation with the United States Department of Agriculture (USDA).

Approximately $27 million is available in Fiscal Year 1998 and 1999 funding (combined).

Eligible applicants: Local rural nonprofit organizations, community development corporations, Indian tribes, state housing finance agencies, and state economic development or community development agencies.

Application deadline: April 30, 1999.

Summary: This NOFA announces the availability of $10 million in funding for grants to qualified nonprofit organizations to demonstrate methods of expanding the secondary market for non-conforming home mortgage loans to "low-wealth" borrowers. The NOFA is issued under the HOME Investment Partnership Program.

The purpose of the program is to enhance homeownership opportunities for low-wealth borrowers by enabling nonprofit intermediaries (including Community Development Financial Institutions) to purchase non-conforming home loans from conventional lenders, to document the performance of these pools of affordable mortgages, and thereby to encourage the secondary market and institutional investors to expand purchases of, or investments in, loans made to low-income homebuyers. The goal of the demonstration is to expand the secondary market by ensuring that non-conforming loans have a receptive and dependable outlet.

Application due date: May 10, 1999.

Summary: The purpose of the Economic Development and Supportive Services (EDSS) program is to provide grants to public housing agencies (PHAs), and tribes or tribally designated housing entities (TDHEs) to enable them to establish and implement programs that increase resident self-sufficiency and that support continued independent living for elderly or disabled residents.

Approximately $23.5 million in carryover funding is being made available for the EDSS program under this NOFA.

Eligible applicants: PHAs, and tribes or TDHEs that have not received a previous EDSS grant are eligible recipients under this NOFA.

Application deadline: Completed applications (one original and two copies) must be submitted no later than 12:00 midnight local time on April 26, 1999, for this program. All grants require a match of at least 25 percent of the grant amount. This match may be in-kind and/or cash contributions. More detailed requirements are set out in the NOFA.

Summary: This Notice amends a Notice published October 22, 1998, governing the allocation and use of HUD Disaster Recovery Initiative grant funds. The amendments add Indian tribes and Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa (Insular Areas) as eligible grant recipients, and make technical corrections to the Allocation and Expenditure of Funds section of the original Notice.

Summary: This Notice announces the monthly per-unit fee amounts for use in determining the ongoing administrative fee for housing agencies (HAs) administering the Section 8 rental voucher, rental certificate and moderate rehabilitation programs (including Single Room Occupancy and Shelter Plus Care) during Federal Fiscal Year (FY) 1999.

Summary: Under the Department of Housing and Urban Development Reform Act of 1989 (Reform Act), HUD is required to make public all approval actions taken on waivers of regulations. This Notice is the 31^st in a series, being published on a quarterly basis, providing notification of waivers granted during the preceding reporting period. The purpose of this Notice is to comply with the requirements of Section 106 of the Reform Act.

Summary: The purpose of this Notice is to prevent loss of life and injury in public and Indian housing developments due to fire. This Notice applies to the following housing programs under the jurisdiction of the Office of Public and Indian Housing: (1)Existing public and Indian housing projects; (2) Public and Indian Housing Development; (3) Public and Indian Housing Modernization; (4) Section 8 Tenant-Based Rental Certificates/Vouchers, Project-Based Rental Certificates and Moderate Rehabilitation; (5) HOPE Programs for Public and Indian Housing;

(6) Indian Housing units assisted under the Native American Housing Assistance and Self

Determination Act.

In an effort to maximize the safety of residents, housing authority staff and fire and rescue personnel, particularly in high-rise buildings, it is imperative that all public housing agencies, tribes and Tribally Designated Housing Entities (hereafter collectively referred to as HAs) and Section 8 owners comply with the provisions of the Fire Administration Authorization Act of 1992 (the Act). In September 1995, the HUD issued a "Guide for the Implementation of Pub. L. No. 102-522 for Fire Alarm and Automatic Sprinkler Installations." This publication addresses three provisions of the Act affecting HUD-assisted housing: (1) four-story or higher multifamily buildings that are newly constructed after October 26, 1992, and for which: (a) housing assistance is used for the construction or (b) a binding commitment is made, before construction begins, to provide housing assistance for the newly constructed property with an automatic sprinkler system and hard-wired smoke detectors, all of which must be installed in accordance with NFPA requirements; (2) four-story or higher multifamily buildings that are rebuilt after October 1, 1994, and for which housing assistance is used (a) to rebuild the property or (b) for which a binding commitment is made, before rebuilding begins, to provide housing assistance in compliance with Chapter 19 of the National Fire Protection Association (NFPA), the "Life Safety Code," which includes requirements such as hard-wired smoke detectors, automatic sprinkler systems, egress systems, emergency lighting; and (3) all other dwelling units receiving housing assistance which must be protected by hard-wired or battery-operated smoke detectors installed in compliance with NFPA requirements.

The implementation guide may be obtained from HUD User by calling 1 (800) 245-2691.

Summary: This Notice is to advise housing agencies (HAs), Office of Public Housing HUBs, and Office of Public Housing Program Centers, that HUD is combining certain funding for the rental certificate and rental voucher programs under the consolidated annual contributions contract (CACC).

Section 545 of the Quality Housing and Work Responsibility Act of 1998 (Pub. L. No. 105-276, approved Oct. 21, 1998) authorized the merger of the rental certificate and rental

voucher programs. This merger will be implemented by issuance of a regulation. In anticipation of the merger and to reduce the number of required budgets and financial statements from administering HAs, HUD intends to fund all increments of the Section 8 tenant-based programs upon renewal under a joint instrument.

Applicability: This Notice is applicable to HA certificate funding increments that expire from April 1999 through December 2000.

Summary: Housing assistance that was established under United States Housing Act will no longer be provided to Indian Housing Authorities (IHAs). The Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) creates a new Indian Housing Block Grant (IHBG) program under which grants will be made directly to Indian tribes. A tribe may be the recipient of the IHBG or it may designate a Tribally Designated Housing Entity for this purpose.

Summary: This Notice provides instructions to Public and Indian Housing State/Area Offices and the Section 8 Financial Management Center (FMC) on financial procedures for implementing Notice PIH 98-62, Fiscal Year 1999 Renewal of Expiring Section 8 Moderate Rehabilitation (Mod Rehab) Housing Assistance Payments Contracts (HAP), dated December 15, 1998. This Notice updates PIH Notice 98-11, Financial Management Program Requirements for the Moderate Rehabilitation Program, dated February 3, 1998.

Summary: The purpose of this Notice is to advise Public Housing Agencies (HAs) of the proration of operating budget approvals during federal fiscal year 1999 (HA fiscal years beginning January 1, April 1, July 1, and October 1, 1999). The 1999 Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act includes $2.818 billion for FY 1999 operating subsidy requirements. Under current authorizations, the amount appropriated in the FY 1999 Appropriations Act will not be sufficient to cover total subsidy requirements for both Performance Funding System (PFS) and non-PFS projects. Accordingly, payments to all HAs will be based on 92.5 percent of the full eligibility of each, as determined by the PFS, or the appropriate alternate approach for the non-PFS HAs and projects. Under 24 C.F.R. § 990.112(c) of the regulations, "In the event that insufficient funds are available to make payments approvable under PFS for operating subsidy payable by HUD, HUD shall have complete discretion to revise, on a pro rata basis or other basis established by HUD, the amounts of operating subsidy to be paid to PHAs."

Summary: This Notice transmits a copy of the NOFA for the Welfare-to-Work Section 8 Tenant-Based Assistance Program for Fiscal Year 1999 which was published in the Federal Register on January 28, 1999. The NOFA announces a national competition for approximately $248.2 million in funding for Section 8 Welfare-to-Work rental vouchers, explains the application requirements and invites housing agencies, Indian tribes and Tribally Designated Housing Entities (TDHEs) to submit applications for Section 8 Welfare-to-Work rental vouchers under that competition.

Application deadline: April 28, 1999.

Summary: This Notice describes the exception to the low-income requirement whereby non-low-income Indian families may receive assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) and under the Notice of Transition Requirements from the United States Housing Act of 1937 to NAHASDA. This Notice also

describes the method for determining and documenting when housing needs cannot reasonably be met without NAHASDA assistance. The process for recipients to request HUD approval to assist non-low-income Indian families is also described.

Summary: This Notice establishes the basis upon which HUD will determine if a recipient of Indian Housing Block Grant (IHBG) funds, as authorized by the Native American Housing Assistance and Self-Determination Act (NAHASDA) of 1996 (Pub. L. No. 104-330, approved Oct. 26, 1996), has the administrative capacity to draw down IHBG funds for investment purposes.

Summary: HUD has a vital interest in promoting a full, accurate count in the 2000 Census and supports the Census Bureau's efforts to recruit an adequate workforce in every neighborhood. HUD regulations at 24 C.F.R. § 5.609(c) exclude "temporary nonrecurring, or sporadic income" from annual income calculations. HUD will therefore exclude the amounts earned by temporary Census employees for determining income in its assisted housing programs.

Summary: This Notice provides direction for field environmental review processing as set forth in paragraph II(N) of the Notice of Funding Availability (63 Fed. Reg. 38,251, 38,255 (July 15, 1998) for the HUD Colonias Initiative (HCI) Program in the four border states where colonias are found: Texas, Arizona, New Mexico, and California. This Notice directs certain field office CPD Division Directors to perform the environmental review processing for any HCI projects located within their HUD field office jurisdiction. These field directors shall direct their staff to conduct the environmental review in accordance with 24 C.F.R. Part 50 -- Protection and Enhancement of Environmental Quality. HCI grantees must supply field CPD Division Directors with information that would help HUD complete the environmental review procedure under 24 C.F.R. Part 50. The Notice defines the information to be provided by HCI grantees to HUD.

Notice: CPD 99-2 (Mar. 23, 1999)

Summary: The purpose of this Notice is to provide instructions for closing out Homeownership for People Everywhere (HOPE 3) Program Implementation Grants authorized by the National Affordable Housing Act of 1990, as amended by the Housing and Community

Development Act of 1992. This Notice supersedes prior closeout instructions contained in CPD Notice 97-13, issued November 19, 1997.

The HOPE 3 Program regulations provide, at 24 C.F.R. § 572.210(g), that recipients will comply with closeout procedures as issued by HUD. Closeout of HOPE 3 Implementation Grants will provide a systematic process of assuring that major program requirements have been met as specified in the program regulations at 24 C.F.R. Part 572. These procedures apply to grants where the grantee has provided at least 70 percent of the homeownership opportunities in the HUD-approved application for the HOPE 3 Implementation Grant or the number of homeownership opportunities subsequently approved in an amendment to the application. Grants not meeting this criterion will be closed on a case-by-case basis with the assistance of HUD Headquarters, Office of Affordable Housing staff.

Summary: The purpose of this Notice is to communicate HUD’s new requirements regarding the ground leases in Section 232 projects. This change reflects amendments to Section 232(b)(4)(B) the National Housing Act mandated by Section 216 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1998. Under the new requirements, HUD mortgages insured under Section 232 may be secured by projects on property under a lease of no fewer than 99 years which is renewable, or under a lease having a period of no fewer than 10 years beyond the maturity date of the mortgage.

Notice H 99-3 (Mar. 23, 1999)

Summary: Notice H 97-74 (HUD), issued December 31, 1997, is being reinstated and extended to March 31, 2000.

Summary: This Notice provides guidance for the implementation of 24 C.F.R. Part 291 published in the Federal Register as a Final Rule on February 9, 1999, and emphasizes revisions being made to the regulation. It also supersedes any housing Notices issued and any provisions of PD Handbook 4310.5 , REV-2, which are not consistent with this Notice. However, unless otherwise specifically stated herein, sales procedures described in the PD Handbook still apply.

HUD has entered into contracts for the management of single-family properties owned by or in the custody of the Department and for the marketing of HUD-owned properties. Effective March 29, 1999, contractors will assume full responsibility for the management and marketing functions. It should be noted, however, that existing real estate asset management contractors will maintain responsibility for an additional 60 days for those acquired single-family properties under sales agreement as of the effective date of the new management and marketing contracts. Should properties not close within the 60 days, they will be transferred to the management and marketing contractor responsible for the geographic location of the properties. Attached is the Mortgagee Letter that was issued which identifies the new Management and Marketing (M&M) contractors and their geographic jurisdictions.

Notice PIH 99-15 (Mar. 8, 1999)

Summary: This Notice provides instructions to public housing agencies (HAs), Office of Public Housing HUBs, Program Centers, and the Financial Management Center to facilitate the

preparation and review of tenant-based Section 8 budgets resulting from the merger of the rental certificate and rental voucher programs.

Summary: This Notice alerts public housing agencies (HAs) that HUD will provide funds for Section 8 tenant-based assistance to assist certain residents of preservation-eligible projects where the owner elects to prepay the mortgage or is approved for voluntary termination of a mortgage insurance contract in FY 1999. The Notice also provides information on the unique statutory requirements governing these special preservation rental vouchers, including a recent statutory change in the calculation of the family's preservation minimum rent if the family's income subsequently declines to a significant extent (which HUD has defined as a decrease of 15 percent or more from the gross family income on the effective date of the prepayment/voluntary termination).

The change in the minimum rent calculation for families whose income significantly declines applies not only to families provided preservation tenant-based assistance in FY 1999 but also to families currently assisted with preservation tenant-based assistance resulting from FY 1997

and 1998 prepayments. Therefore, in those cases where the HA has previously determined (either through an interim or annual reexamination) that the gross income of a family currently assisted with preservation tenant-based assistance has declined 15 percent or more from the gross

family income at the effective date of the prepayment, the HA must change the minimum rent calculation. If this decrease of 15 percent or more occurred before November 1, 1998, this change must be made retroactive to November 1, 1998.

This Notice covers projects where the owner prepays or voluntarily terminates the mortgage insurance contract on eligible low-income housing in FY 1999. Unless specifically noted (such as the change in the minimum rent calculation), the Notice does not apply to prepayments or voluntary terminations that occurred in FY 1996, 1997, or 1998, and does not supersede HUD Notices PIH 96-61, PIH 97-29, and PIH 98-19. The policies and procedures outlined by those Notices remain in effect for assistance provided for residents of projects where the owner prepaid or voluntarily terminated the mortgage insurance in FY 1996, FY 1997, and FY 1998.

Notice PIH 99-17 (Mar. 15, 1999)

Summary: The purpose of this Notice is to transmit HUD’s newly established policy with regard to total development costs (TDCs) for the development of public housing consistent with the Quality Housing and Work Responsibility Act of 1998. The Notice also transmits the updated schedule of unit TDC limits which will be effective for public housing projects developed with funds awarded under the HOPE VI Program in FYs 1997, 1998 and 1999 for public housing projects developed in FY 1998 and 1999 and with other public housing capital funds. This Notice also provides further guidance with respect to the new TDC policy and project funds allocation controls for HUD Field Offices and PHAs in connection with the development of public housing. It is HUD’s intent to publish a rule relative to TDC for FY 2000 and forward.

Notes

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

2    At http://www.hudclips.org/cgi/index.cgi.

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

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