[Federal Register Volume 59, Number 32 (Wednesday, February 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3457]


[[Page Unknown]]

[Federal Register: February 16, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Parts 905, 962 and 984

[Docket No. R-94-1633; FR-2961-C-05]
RIN 2577-AB15

 

Family Self-Sufficiency Program; Correction

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Interim rule; correction.

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SUMMARY: On May 27, 1993 (58 FR 30858), the Department published in the 
Federal Register an interim rule that implemented the requirements and 
procedures that will govern local Family Self-Sufficiency programs 
beginning or continuing in Federal fiscal year 1993. The Department 
also published a final rule which adopted the interim rule as the final 
regulations for the Family Self-Sufficiency Program, and which final 
rule will be effective on May 27, 1994 (one year from the date of 
publication in accordance with the program's authorizing legislation). 
(The interim rule was effective 30 days from the date of publication 
and solicited public comment.)
    The purpose of this document is to correct technical errors 
contained in the May 27, 1993 interim rule.

EFFECTIVE DATE: June 28, 1993.

FOR FURTHER INFORMATION CONTACT: For section 8 issues: Madeline 
Hastings, Director, Rental Assistance Division, room 4204. Telephone 
number (202) 708-2841.
    For public housing management issues: Edward Whipple, Director, 
Occupancy Division, room 4206. Telephone number (202) 708-0744.
    For Indian Housing issues: Dominic Nessi, Director, Office of 
Indian Housing, room 4140. Telephone number (202) 708-1015.
    For supportive service issues: Paula Blunt, Supportive Services 
Coordinator, Office of Resident Initiatives, room 4112. Telephone 
number (202) 708-4214.
    The address for each of these contacts is the Department of Housing 
and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. 
The telephone numbers listed are not toll-free numbers. Hearing-
impaired persons may contact these offices via TDD by calling (202) 
708-9300 or 1-(800) 877-339.

SUPPLEMENTARY INFORMATION: On May 27, 1993 (58 FR 30858), the 
Department published in the Federal Register an interim rule that 
implemented the requirements and procedures that will govern local 
Family Self-Sufficiency (FSS) programs beginning or continuing in 
Federal fiscal year (FY) 1993. The Department also published a final 
rule which adopted the interim rule as the final regulations for the 
Family Self-Sufficiency Program, and which final rule will be effective 
on May 27, 1994 (one year from the date of publication in accordance 
with the program's authorizing legislation). (The interim rule was 
effective 30 days from the date of publication and solicited public 
comment.)
    The purpose of this document is to correct editorial errors 
contained in the May 27, 1993 interim rule. The following provides a 
summary of the corrections that are being made by this document.
    Corrections 1 and 2. Section 106(j) of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992) 
made operation of a local FSS program optional for Indian housing 
authorities (IHAs) for the Indian housing program. For the Indian 
housing program, the FSS rule provides that IHAs that elect to operate 
local FSS programs are not subject to minimum program size requirements 
as are housing agencies (HAs) other than IHAs. Note that the part 962 
regulations, which are the regulations applicable to the public housing 
FSS program, contain a section concerning minimum program size 
requirements--24 CFR 962.105 (Minimum program size). (See table of 
sections at 58 FR 30889.) No comparable section, however, is contained 
in the Indian housing FSS regulations. (See table of sections at 58 FR 
30883).
    Two provisions in the Indian housing FSS regulations inadvertently 
make reference to minimum program size requirements--paragraph (a)(2) 
in Sec. 905.3020 (Program implementation) and Sec. 905.3021 
(Administrative fees). (See 58 FR 30887, first column for both 
citations.) The last sentence of paragraph (a)(1) of Sec. 905.3020 also 
uses the phrase ``families required to be served'' (emphasis added) 
which indicates that IHAs are subject to minimum program size 
requirements. Accordingly, the reference to minimum program size 
requirements in these two sections is incorrect, and is removed by this 
notice.
    In addition, Sec. 905.3021 (Administrative fees) also contains a 
missing word. This section provides that the performance funding system 
(PFS) shall provide for the inclusion of ``reasonable and 
administrative costs.'' The correct phrase should be ``reasonable and 
eligible administrative costs.''
    Corrections 3, 10 and 19. In each of the three FSS rules (the 
Indian housing FSS rule, the public housing FSS rule, and the section 8 
FSS rule), the phrase, ``without good cause,'' should have been 
inserted where the rule discusses termination of the FSS contract of 
participation on the basis of the family's failure to comply with the 
contract terms. Accordingly, this phrase is added to Sec. 905.3022 
(b)(5) and (h)(2), Sec. 962.303 (b)(5) and (h)(2), and Sec. 984.303 
(b)(5) and (i). (See, respectively, 58 FR 30887 (second column), 30894 
(first column), and 30900 (third column)).
    In addition to inserting the phrase ``without good cause'' in 
Sec. 984.303(b)(5), the word ``without'' in paragraph (b)(5)(i) of this 
section should be ``withhold.'' (See 58 FR 30900).
    Correction 4. In Sec. 905.3024(b) (Total tenant payment and 
increases in family income), the second ``or'' should be ``for.'' (See 
58 FR 3088, second column.)
    Corrections 5-8. In the definitions of ``Action plan,'' 
``Certification,'' ``FSS account,'' ``Program Coordinating Committee,'' 
and ``Self-sufficiency'' in Sec. 962.103 (Definitions), the word 
``subpart'' in each definition should be ``part.'' (See 58 FR 30889, 
third column, and 58 FR 30890, second and third columns.)
    Correction 9. In Sec. 962.302 (Administrative fees), the word 
``eligible'' should be inserted after the words ``reasonable and'' in 
the fourth line of this paragraph. (See 58 FR 30893.)
    Correction 11. In Sec. 962.305 (FSS account), in paragraph 
(b)(1)(i), the second ``FSS'' should be followed by the word 
``credit.'' (See 58 FR 30895, first column.)
    Correction 12. In Sec. 962.305(c), the heading ``Disbursement 
before expiration of contract term'' should be italicized to clarify 
that this is the heading for this paragraph. (See 58 FR 30895, second 
column.)
    Correction 13. In Sec. 962.305(e), the phrase ``unless such use is 
prohibited by the statute or regulations governing the particular 
homeownership program'' was inadvertently omitted. (See 58 FR 30895, 
third column.) This phrase is included in the comparable section in the 
Indian housing FSS regulations. (See Sec. 905.3024(e) at 58 FR 30889, 
first column.)
    Corrections 14-17. In the definitions of ``Action plan,'' 
``Certification,'' ``FSS account,'' and ``Self-sufficiency'' in 
Sec. 984.103 (Definitions), the word ``subpart'' in each definition 
should be ``part.'' (See 58 FR 30896 middle column, and 58 FR 30897, 
first and second columns.)
    Correction 18. In the definition of ``FSS related service program'' 
in Sec. 984.103, the phrase ``of this subpart'' is unnecessary and 
should be omitted. (See 58 FR 30897.)
    This document will correct the above technical errors.
    The Department does not intend to make any substantive amendments 
to the FSS program rules until the FSS final rule becomes effective on 
May 27, 1994. The Department has received 34 public comments on the May 
27, 1993 FSS interim and final rules. The Department is reviewing these 
comments and may consider further amendments to the FSS final rule, 
after the rule becomes effective on May 27, 1994.
    Accordingly, FR Doc. 93-12326, an interim rule published in the 
Federal Register on May 27, 1993 (58 FR 30858), is corrected to read as 
follows:
    1. On pages 30886 and 30887, in Sec. 905.3020, the last sentence of 
paragraph (a)(1), in the third column on page 30886, and paragraph 
(a)(2), in the first column on page 30887, are corrected to read as 
follows:


Sec. 905.3020  Program implementation.

    (a) * * *
    (1) Program start-up. * * * Full delivery of the supportive 
services to be provided to the total number of families to be served 
under the program need not occur within 12 months, but must occur by 
the deadline set forth in paragraph (a)(2) of this section.
    (2) Full enrollment and delivery of services. Except as provided in 
paragraph (a)(3) of this section, the IHA must have completed 
enrollment of the total number of families to be served under the FSS 
program, and must have begun delivery of the supportive services within 
two years from the date of notification of approval of the application 
for new Indian housing units.
* * * * *
    2. On page 30887, in the first column, Sec. 905.3021 is corrected 
to read as follows:


Sec. 905.3021  Administrative fees.

    The performance funding system (PFS), provided under section 9(a) 
of the Act, shall provide for the inclusion of reasonable and eligible 
administrative costs incurred by IHAs in carrying out local FSS 
programs. These costs are subject to appropriations by the Congress.
    3. On pages 30887 and 30888, in Sec. 905.3022, paragraph (b)(5), on 
page 30887 in the second column, and paragraph (h)(2), on page 30888 in 
the first column, are corrected to read as follows:


Sec. 905.3022  Contract of participation.

* * * * *
    (b) * * *
    (5) Consequences of noncompliance with contract. The contract of 
participation shall specify that if the FSS family fails to comply with 
the terms and condition of the contract of participation, without good 
cause, the IHA may:
* * * * *
    (h) * * *
    (2) The failure of the FSS family to meet its obligations under the 
contract of participation without good cause;
* * * * *


Sec. 905.3024  [Corrected]

    4. On page 30888, in the second column, in Sec. 905.3024(b), 
correct the word ``or'' the second time it appears to read ``for.''


Sec. 962.103  [Corrected]

    5. On page 30889, in the third column, in Sec. 962.103, in the 
definition of ``Action Plan,'' correct the word ``subpart'' to read 
``part.''
    6. On page 30890, in the first column, in Sec. 962.103, in the 
definition of ``Certification,'' correct the word ``subpart'' to read 
``part.''
    7. On page 30890, in the third column, in Sec. 962.103, in the 
definition of ``Program Coordinating Committee,'' correct the word 
``subpart'' to read ``part.''
    8. On page 30890, in the third column, in Sec. 962.103, in the 
definition of ``Self-sufficiency,'' correct the word ``subpart'' to 
read ``part.''


Sec. 962.302  [Corrected]

    9. On page 30893, in the third column, in Sec. 962.302, add the 
word ``eligible'' after the words ``reasonable and'' in line 4.
    10. On page 30894, in the first and third column, in Sec. 962.303, 
correct paragraphs (b)(5) introductory text and paragraph (h)(2) to 
read as follows:


Sec. 962.303   Contract of participation.

* * * * *
    (b) * * *
    (5) Consequences of noncompliance with the contract. The contract 
of participation shall specify that if the FSS family fails to comply, 
without good cause, with the terms and conditions of the contract of 
participation, which includes compliance with the public housing lease, 
the PHA may:
* * * *
    (h) * * *
    (2) The failure of the FSS family to meet its obligations under the 
contract of participation without good cause;
* * * * *


Sec. 962.305  [Correction]

    11. On page 30895, in the first column, in Sec. 962.305, correct 
paragraph (b)(1)(i) introductory text by adding the word ``credit'' 
between the words ``FSS'' and ``shall.''
    12. On page 30895, in the second column, in Sec. 962.305, correct 
paragraph (c)(2) by italicizing the heading--``Disbursement before 
expiration of contract term.''
    13. On page 30895, in the third column, in Sec. 962.305, correct 
paragraph (e) to read as follows:


Sec. 962.305  FSS account.

* * * * *
    (e) Use of FSS account funds for homeownership. An FSS family may 
use its FSS account funds for the purchase of a home, including the 
purchase of a home under one of HUD's homeownership programs, or other 
Federal, State, or local homeownership programs unless such use is 
prohibited by the statute or regulations governing the particular 
homeownership program.


Sec. 984.103  [Corrected]

* * * * *
    14. On page 30896, in the second column, in Sec. 984.103, in the 
definition of ``Action plan,'' correct the word ``subpart'' to read 
``part.''
    15. On page 30896, in the second column, in Sec. 984.103, in the 
definition of ``Certification,'' correct the word ``subpart'' to read 
``part.''
    16. On page 30897, in the first column, in Sec. 984.103, in the 
definition of ``FSS account,'' correct the word ``subpart'' to read 
``part.''
    17. On page 30897, in the first column, in Sec. 984.103, in the 
definition of ``FSS related service program,'' remove the phrase ``of 
this subpart.''
    18. On page 30897, in the second column, in Sec. 984.103, in the 
definition of ``Self-sufficiency,'' correct the word ``subpart'' to 
read ``part.''
    19. On pages 30900 and 30901, in Sec. 984.303, correct paragraphs 
(b)(5) introductory text and (b)(5)(i) on page 30900 in the third 
column, and correct paragraph (i) on page 30901 in the second column, 
to read as follows:


Sec. 984.303  Contract of participation.

* * * * *
    (b) * * *
    (5) Consequences of noncompliance with contract. The contract of 
participation shall specify that if the FSS family fails to comply, 
without good cause, with the terms and conditions of the contract of 
participation, which includes compliance with the assisted lease, the 
PHA may:
    (i) Withhold the supportive services;
* * * * *
    (i) Option to terminate section 8 housing and supportive service 
assistance. The PHA may terminate or withhold section 8 housing 
assistance, the supportive services, and the FSS family's participation 
in the FSS program, if the PHA determines, in accordance with the 
hearing procedures provided in 24 CFR 882.216 and 887.405, that the FSS 
family has failed to comply without good cause with the requirements of 
the contract of participation as provided in paragraph (b)(5) of this 
section.
* * * * *
    Dated: February 7, 1994.
Myra L. Ransick,
Assistant General Counsel for Regulations.
[FR Doc. 94-3457 Filed 2-15-94; 8:45 am]
BILLING CODE 4210-33-P