National Housing Law Project Housing Law Bulletin

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.

The USDA website for the Rural Housing Service (RHS) is: http//www.rurdev.usda.gov/rhs/index.html.

HUD Federal Register Notices

Portfolio Reengineering — Fiscal Year 1998 Transition Program Guidelines; Notice of Guidelines
63 Fed. Reg. 36,129-36,133 (July 1, 1998)
Summary: HUD is currently implementing a statutory demonstration program authorized for Fiscal Year (FY) 1997. The demonstration program is directed at FHA-insured multifamily projects that have project-based Section 8 contracts with rents in excess of 120 percent of fair market rents. That program has been extended by Congress through FY 1998 with certain modifications as a transitional program while HUD develops regulations to implement the new authority for a non-demonstration FHA-insured mortgage and rental assistance restructuring program. This Notice provides guidelines for the FY 1998 Transition Program. It also identifies projects that will continue to proceed under the FY 1997 Demonstration Program, unmodified by the transitional provisions. Finally, it clarifies HUD policy concerning delegation of responsibilities to joint venture designees. This clarification applies to both the FY 1998 Transition Program and the FY 1997 Demonstration Program.

Notice of Title VI Loan Guarantee Demonstration Program; Notice 63 Fed. Reg. 39,682-39,683 (July 23, 1998)
Summary: The FY 1998 HUD Appropriations Act provided a $5 million appropriation for the funding of a demonstration program that could guarantee up to $45 million in Title VI loan guarantees. This Notice announces HUD's loan guarantee demonstration program under Title VI of the native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA). Through the demonstration program, HUD is seeking to develop models that will provide innovative ways to enhance development of affordable and accessible housing in Indian areas, while increasing access to private capital, economic growth, and the investment and participation of traditional financial institutions not customarily serving Indian reservations and other Native American areas. Indian tribes and Tribally Designated Housing Entities (TDHEs) are encouraged to form partnerships (financial, service/supportive and economic development-oriented) with investors or financial institutions and to submit model Title VI demonstration projects to be evaluated in accordance with criteria listed in this Notice. Applications for Title VI loans may be submitted to HUD at any time during the demonstration program and will be processed on a first-come, first-served basis.
Effective date: July 23, 1998.

Notice of Extension of Public Comment Period on Public Housing Assessment System; Proposed Rule
63 Fed. Reg. 40,682 (July 30, 1998)
Summary: On June 30, 1998, HUD published a proposed rule that establishes a new system for the assessment of public housing —- the new Public Housing Assessment System (PHAS). The public comment period on the proposed rule was scheduled to end July 30, 1998. This Notice extends to August 13, 1998, the public comment period on the PHAS proposed rule.
Comments due: August 13, 1998.

SuperNotice of Funding Availability (SuperNOFA) for Economic Development and Empowerment Programs; Economic Development Initiative (EDI) Program Funding; Announcement of Intention to Establish Future Community Development Block Grant Risk Reduction Pool Demonstration Using EDI Funds; Notice of Funding Availability; Supplemental Notice
63 Fed. Reb. 40,165-40,166 (July 27, 1998)
Summary: The purposes of this Notice are: (1) to announce HUD's intention to establish a Community Development Block Grant (CDBG) Risk Reduction Pool demonstration, as first discussed in the Economic Development Initiative (EDI) Program section of SuperNOFA II, published on April 30, 1998; (2) to notify the public that HUD intends to use $10 million of the $38 million in FY 1998 funds available for the EDI Program to fund the CDBG Risk Reduction Pool demonstration. As a result, $28 million will be available for FY 1998 EDI grants under SuperNOFA II. HUD will issue a future Notice that describes the details.

HUD Notices

Procedures to Avoid Displacement of Section 8 Program Participants Receiving Rental Assistance from Indian Housing Authorities;
Notice PIH 98-38 (ONAP) (July 9, 1998)
Summary: This Notice clarifies the guidance contained in Notice PIH 97-50 (HA), issued September 19, 1997, and provides procedures to prevent displacement of families receiving Section 8 tenant-based rental assistance under the Section 8 moderate rehabilitation, certificate and voucher programs from Indian housing authorities (IHA). The Notice applies only to funding increments under consolidated Section 8 Annual Contributions Contracts (ACCs) that were entered into by an IHA and HUD prior to October 1, 1997.
Effective date: July 9, 1998.

USDA Rural Housing Service Regulations

Guaranteed Rural Rental Housing Program; Interim Final Rule with Request for Comments;
7 C.F.R. Parts 1940 and 3565
63 Fed. Reg. 39,451-39,471 (July 22, 1998)
Summary: The Rural Housing Service (RHS) is issuing new regulations for the Guaranteed Rural Rental Housing Program (GRRHP). This action is taken to implement the "Housing Opportunity Program, Extension Act of 1996." The program is intended to increase the supply of affordable rural multifamily housing through partnerships between RHS and major lending sources, including banks, state and local housing finance agencies and bond issuers.
Effective date: July 22, 1998.
Comments due: September 21, 1998.

RHS Notices

Notice of Availability of Funding and Requests for Proposals for Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program; Notice
63 Fed. Reg. 39,472-39,474 (July 22, 1998)
Summary: This Notice of Fund Availability (NOFA or Notice) announces the timeframe to submit proposals in the form of "NOFA responses" for the Section 538 Guaranteed Rural Rental Housing Program (GRRHP). Eligible lenders are invited to submit NOFA proposals for the development of affordable rental housing to serve rural America. Lenders have the option, but it is not a requirement, of submitting their application concurrently with their NOFA response. This document also describes the overall application process, including the selection of NOFA responses and the allocation of interest credits.
Due date: August 17, 1998.

Notice of Availability of Funding and Requests for Proposals for Guaranteed Loans Under the Section 538 Guaranteed Rural Rental Housing Program; Notice
63 Fed. Reg. 39,472-39,474 (July 27, 1998)
Summary: This Notice of Fund Availability (NOFA or Notice) announces the timeframe to submit proposals in the form of "NOFA responses" for the Section 538 Guaranteed Rural Rental Housing Program (GRRHP). Eligible lenders are invited to submit NOFA proposals for the development of affordable rental housing to serve rural America. Lenders have the option, but it is not a requirement, of submitting their application concurrently with their NOFA response. This document also describes the overall application process, including the selection of NOFA responses and the allocation of interest credits.
Application deadline: August 17, 1998.

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.