National Housing Law Project Housing Law Bulletin

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 summaries in the Federal Register. The Notice summaries are taken from their introductory paragraphs.

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

HUD Regulations

HOME Investment Partnerships Program: Technical Amendment to Final Rule
24 C.F.R. Part 92
62 Fed. Reg. 28,925-30 (May 28, 1997)

Summary: This document makes a number of technical amendments to a final rule previously issued by the Department of Housing and Urban Development on September 16, 1996 (61 Fed. Reg. 48,736), to implement the HOME Investment Partnerships Program.

Section 92.203(a)(1) is amended to clarify that participating jurisdictions must make the initial determination of income eligibility for families to be assisted with HOME funds, and also must conduct periodic income determinations for tenants in HOME-assisted rental units during the period of affordability. New cross-references are made to the new 24 C.F.R. Part 5 which covers income, income limits, and related issues. Section 92.205(d) is amended to clarify that the eligible HOME development costs for multi-unit projects include all costs made eligible for HOME funding under Section 92.206. Section 92.206(a)(5) is amended to clarify that utility connections and site improvements are eligible project-related soft costs in connection with the acquisition of standard housing. Section 92.209(c)(2) is amended to reflect the provision in HUD's Fiscal Year 1997 appropriations act that suspends federal preferences for FY 1997. Section 92.209(j) is amended to clarify that the income determination and Housing Quality Standards inspection requirements apply to security deposit assistance only at the point at which the assistance is provided. Section 92.214(a)(6) is amended to implement a provision of HUD's FY 1997 appropriations act which permits the use of HOME funds for a priority purchaser under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). Section 92.219(b)(1)(i) is amended to more accurately reflect the requirements of Section 92.209 that apply to tenant-based rental assistance programs not funded with HOME that will be counted as a match. Section 220(a)(10) is amended to add as an eligible match the direct cost of supportive services provided to recipients of HOME-funded tenant-based rental assistance.

Effective date: June 27, 1997.

Retroactive applicability: This technical amendment applies retroactively to the final rule published September 16, 1996 (61 Fed. Reg. 48,736), that became effective on October 16, 1996.

Single-Family Property Disposition; Advanced Notice of Proposed Rulemaking
24 C.F.R. Part 291
62 Fed. Reg. 32,251-52 (June 13, 1997)

Summary: This Notice announces HUD's intention to issue a proposed rule to amend HUD's Single-Family Property Disposition Program regulations (24 C.F.R. Part 291) for the purpose of developing innovative methods for disposing of HUD-owned single-family properties in a cost-efficient manner that furthers the Department's mission of providing decent, safe, and affordable housing. HUD's current regulations provide that HUD's principal method of sale of single-family properties is the competitive sales method to individuals. While this method works well in some cases, HUD believes that there may be other disposition methods that should be considered and utilized that may better serve HUD's objectives. Specifically, HUD seeks comments that provide for innovative, efficient, and cost-effective structures and procedures with respect to the disposition of the HUD inventory of single-family properties. These procedures may include but, should not be limited to, bulk sales of current inventory or future acquisitions on a regional or national basis, and structures similar to joint ventures, profit-share arrangements, or private/public partnering. This Notice therefore solicits public comment on this subject prior to publication of a proposed rule.

Comments due: July 14, 1997.
Address: Interested persons are invited to submit comments and responses to the Rules Docket Clerk, Office of the General Counsel, Room 10276, Department of Housing and Urban Development, 451 Seventh Street, S.W., Washington DC 20410-0500.

HUD Federal Register Notices

Fiscal Year 1997 Notice of Funding Availability for Continuum of Care Homeless Assistance; Supportive Housing Program (SHP); Shelter Plus Care (S+C); Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) Program for Homeless Individuals. Notice of Funding Availability (NOFA); Notice of Revision and Extension of Deadline.
62 Fed. Reg. 30,873-74 (June 5, 1997)

Summary: On April 8, 1997, HUD published a Notice announcing the availability of FY 1997 funding for three of its programs that assist communities in combating homelessness (62 Fed. Reg. 17,024). The three programs are: (1) Supportive Housing; (2) Shelter Plus Care; and (3) Section 8 Moderate Rehabilitation for Single Room Occupancy Dwellings for Homeless Individuals. Since the issuance of the April 8, 1997, NOFA, HUD has realized that the NOFA limitations placed on the level of refunding for existing projects are too inflexible. HUD's policy is to allow communities as much flexibility as possible in the preparation of their Continuum of Care system and the size and selection of projects. Therefore, this Notice announces that the April 8, 1997, NOFA is revised to allow communities to request full funding for eligible renewal activities when proposing renewal of existing projects. This Notice also extends the application deadline to August 18, 1997.

Application deadline: Applications are due before midnight on August 18, 1997.

NOFA for Fair Housing Initiatives Program; FY 1997 Competitive Solicitation
62 Fed. Reg. 34,561-71 (June 26, 1997)

Summary: This NOFA announces the availability of $15 million of 1997 Fiscal Year funding for the Fair Housing Initiatives Program (FHIP). This program assists projects and activities designed to enforce and enhance compliance with the Fair Housing Act and substantially equivalent state and local fair housing laws. HUD will fund projects undertaken through the Private Enforcement Initiative (PEI), Education and Outreach Initiative (EOI), and the Fair Housing Organizations Initiative (FHOI). For this funding round, $1.35 million is reserved from the Fair Housing Organizations Initiative for organizations that assist persons with disabilities to build the capacity of such organizations to undertake fair housing enforcement activities. Additionally, $500,000 is reserved from the Education and Outreach Initiative's regional, local and community-based component for projects that propose to address community tensions that arise as people expand their housing choices; and $150,000 is reserved under the EOI national component for a fair housing site on the Internet.

In the body of this document is information concerning the principal objectives of the NOFA, eligibility, available amounts, selection criteria, how to apply for funding, how selections will be made, and a checklist of application submission requirements.

Application deadlines: The application due date will be specified in the application kit. Applicants submitting an application under the PEI will be given at least 50 days from June 26, 1997 (until August 15, 1997), to submit their applications. Applicants submitting applications under the EOI and the FHOI will be given at least 60 days from June 26, 1997, (until August 25, 1997), to submit their applications.

To request application kit: To obtain a copy of the application kit, please write the Fair Housing Information Clearinghouse, P.O. Box 9146, McLean, VA 22102, or call the toll-free number 1-800-343-3442 (voice) or 1-800-290-1617 (TTY).

Combined Notices of Funding Availability for FY 1997 for the Public and Indian Housing Economic Development and Supportive Services Program and the Tenant Opportunities Program
62 Fed. Reg. 31,271-92 (June 6, 1997)

Summary: Through this announcement, HUD is making a total of $62.225 million in grant funds available for two programs: the Public and Indian Housing Economic Development and Supportive Services Program (ED/SS) and the Tenant Opportunities Program (TOP). Applicants will continue to submit separate applications for either program. The announcements have been combined to highlight HUD's parallel restructuring of these complementary programs. The restructuring represents a major HUD initiative to improve the targeting and management of limited resources for public and Indian housing residents' self-sufficiency. The goal is to most effectively focus these resources on "welfare to work" and on independent living for the elderly and persons with disabilities. With these revised NOFAs, HUD believes it has restructured both of these programs to: (1) maximize their effectiveness in helping the public housing and Native American communities meet the challenge of welfare reform; and (2) direct funding to public housing and Native American communities that have the best prospects for success.

In applying for TOP funds, applicants (Resident Associations (RAs), including, e.g., RCs, RMCs, ROs (see definitions in Section IV of the announcement)) will have to include an implementation plan with specific measurable goals that can be achieved within 24 months. HUD is requiring that TOP applicants have a signed partnership agreement (Memorandum of Understanding or Agreement) with the housing authority prior to submitting their application. A provision in the partnership agreement must give TOP applicants access to a community facility to anchor the residents' activities.

This NOFA adds the following additional threshold requirements for both programs:

Applications for funding under the ED/SS NOFA must be physically received at the correct local HUD Field Office or Area Office of Native American Programs (AONAP), as applicable, on or before August 18, 1997, at 3:00 p.m. local time. This application deadline is firm as to date and hour.

Notice of Funding Availability for HOPE VI Public Housing Demolition -- Fiscal Year 1997
62 Fed. Reg. 30,401-09 (June 3, 1997)

Summary: This Notice informs public housing agencies (PHAs) of the availability of up to $30 million in HOPE VI funding for the demolition of obsolete public housing units without revitalization, where the demolition would otherwise not occur due to lack of available resources. Indian Housing authorities are not eligible to apply. There is no minimum or maximum limitation on the size of the PHA that may apply or on the number of dwelling units for which demolition funding is requested. Eligible costs include: (1) the cost of demolition of dwelling units and nondwelling facilities, including any required asbestos and/or lead-based paint abatement, where the demolition is approved by HUD under 24 C.F.R. Part 970, but where the PHA has not yet signed a contract for demolition and the building(s) has/have not been demolished; (2) minimal site restoration after demolition and subsequent site improvements to benefit the remaining portion of the project or to make the site more saleable; (3) demolition costs of nondwelling facilities are eligible only where related to the demolition of the dwelling units; (4) necessary administrative costs, and relocation and other assistance costs related to the permanent relocation of residents.

Application deadline: An original application must be received at HUD Headquarters, Attention: Director, Office of Public Housing Investments, 451 Seventh Street, S.W., Room 4138, Washington, DC 20410, on or before 4 p.m. Eastern Time on August 4, 1997.

HUD Notices

Tenant-Based Rental Vouchers or Certificates for Eligible Residents of Preservation-Eligible Projects Approved for Prepayment of the Mortgage or Voluntary Termination of the Mortgage Insurance in Federal FY 1997
PIH 97-29 (HA)
Issued: June 11, 1997; Expires: September 30, 1997

This Notice informs public housing agencies and Indian Housing Authorities (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 Fiscal Year 1997. This notice does not apply to prepayments or voluntary terminations that occurred in FY 1996 and does not supersede HUD Notice PIH 96-61.

The HUD FY 1997 Appropriation Act provides that, subject to the availability of appropriated funds, certain families residing in an eligible preservation project on the date of the owner's prepayment or voluntary termination must be offered tenant-based assistance under Section 8 if, as the result of a rent increase no later than one year after the date of the owner's prepayment or voluntary termination, the family's rent exceeds 30 percent of adjusted income. The law establishes special requirements concerning the minimum amount of the family's contribution towards rent. The law also provides a special voucher payment standard or certificate Fair Market Rent (FMR) for families that choose to stay in their current units.

The Notice provides information on the unique statutory requirements governing these special preservation rental vouchers and certificates.

1. At http://www.access.gpo.gov/su_docs.
2. Call Aspen Systems at (301) 251-5395 to find out how to use HUD Clips.
3. To order Notices and Handbooks from HUD, call (800) 767-7468 or fax (202) 708-2313.