[Federal Register Volume 59, Number 84 (Tuesday, May 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10518]


[[Page Unknown]]

[Federal Register: May 3, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner

24 CFR Parts 880, 881, and 883

[Docket No. R-94-1714; FR-3683-F-01]

 

Special Rent Adjustments

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

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SUMMARY: This final rule is a technical amendment to HUD's regulations 
for certain Section 8 programs governed by 24 CFR parts 880 (New 
Construction), 881 (Substantial Rehabilitation), and 883 (State Housing 
Agencies) to conform the language to that used in section 8(c)(2)(B) of 
the U.S. Housing Act of 1937. The amendment will authorize rent 
adjustments for privately owned Section 8 projects to cover expenses 
that are not presently compensated for by annual rental adjustments.

EFFECTIVE DATE: June 2, 1994.

FOR FURTHER INFORMATION CONTACT: James Tahash, Director, Planning and 
Procedures Division, room 6280, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC, 20410-0500; 
telephone: (voice) (202) 708-3944 and (TDD) (202) 708-4594. (These are 
not toll-free numbers).

SUPPLEMENTARY INFORMATION: This rule is a technical amendment to the 
Section 8 Housing Assistance Payments programs governed by 24 CFR parts 
880 (New Construction), 881 (Substantial Rehabilitation), and 883 
(State Housing Agencies). The amendment will conform the special rent 
adjustment regulations for those programs (Secs. 880.609(b), 881.609(b) 
and 883.710(b)) to the language used in section 8(c)(2)(B), by adding 
the phrase ``or similar costs'' to the list of substantial increases in 
expenses, such as real property taxes and utility rates, that may 
result in the need for special rent adjustments. The ``similar costs'' 
language appears in other section 8 program regulations (parts 882, 884 
and 886), but was never included in the regulations for those programs 
covered by parts 880, 881, and 883. This final rule will treat all 
section 8 programs comparably.
    In accordance with its own regulations on rulemaking in 24 CFR part 
10, the Department generally publishes a rule for public comment before 
issuing a rule for effect, unless to do so would be impracticable, 
unnecessary, or contrary to the public interest. This rule is being 
published as a final rule for effect because the Department believes 
that public comment is unnecessary. The amendments made by this rule 
are technical in nature, and conform the regulations to the statutory 
language.

Other Matters

    An environmental assessment is unnecessary, since fair market rent 
schedules is categorically excluded from the Department's National 
Environmental Policy Act procedures under 24 CFR 50.20(l), and rent 
adjustments are directly related to such rent schedules.
    This rule was not listed in the Department's Semiannual Agenda of 
Regulations published on April 25, 1994 (59 FR 20424) in accordance 
with Executive Order 12866 and the Regulatory Flexibility Act.
    In accordance with 5 U.S.C. 605(b) (the Regulatory Flexibility 
Act), the undersigned hereby certifies that this rule does not have a 
significant economic impact on a substantial number of small entities. 
Any economic impact, whether on small entities or large, would be 
beneficial, in that it would seek to compensate property owners for 
extraordinary expenses incurred that are not compensated by the annual 
rent adjustments.
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this rule will not have substantial direct effects on 
States or their political subdivisions, or the relationship between the 
Federal government and the States, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the rule is not subject to review under the Order. Specifically, the 
requirements of this rule are directed to private owners of Section 8 
projects and do not impinge upon the relationship between the Federal 
government and State and local governments.
    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
Order. Nothing in this rule changes the amount of rent paid by tenant 
families, which is based on the income of the family.

List of Subjects

24 CFR Part 880

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 881

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 883

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

    Accordingly, title 24 of the Code of Federal Regulations is amended 
as follows:

PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW 
CONSTRUCTION

    1. The authority citation for part 880 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    2. Section 880.609 is amended by revising paragraph (b) to read as 
follows:


Sec. 880.609  Adjustment of contract rents.

* * * * *
    (b) Special additional adjustments. For all projects, special 
additional adjustments will be granted, to the extent determined 
necessary by HUD, to reflect increases in the actual and necessary 
expenses of owning and maintaining the assisted units which have 
resulted from substantial general increases in real property taxes, 
assessments, utility rates, utilities not covered by regulated rates, 
or similar costs, and which are not adequately compensated for by 
annual adjustments under paragraph (a) of this section. The owner must 
submit to the contract administrator required supporting data, 
financial statements and certifications.
* * * * *

PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR 
SUBSTANTIAL REHABILITATION

    3. The authority citation for part 881 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and 
13611-13619.

    4. Section 881.609 is amended by revising paragraph (b) to read as 
follows:


Sec. 881.609  Adjustment of contract rents.

* * * * *
    (b) Special additional adjustments. For all projects, special 
additional adjustments will be granted, to the extent determined 
necessary by HUD, to reflect increases in the actual and necessary 
expenses of owning and maintaining the assisted units which have 
resulted from substantial general increases in real property taxes, 
assessments, utility rates, utilities not covered by regulated rates or 
similar costs, and which are not adequately compensated for by annual 
adjustments under paragraph (a) of this section. The owner must submit 
to the contract administrator required supporting data, financial 
statements and certifications.
* * * * *

PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE 
HOUSING AGENCIES

    5. The authority citation for part 883 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    6. Section 883.710 is amended by revising paragraph (b) to read as 
follows:


Sec. 883.710  Adjustment of contract rents.

* * * * *
    (b) Special additional adjustments. For all projects, special 
additional adjustments will be granted, to the extent determined 
necessary by HUD, to reflect increases in the actual and necessary 
expenses of owning and maintaining the assisted units which have 
resulted from substantial general increases in real property taxes, 
assessments, utility rates, utilities not covered by regulated rates, 
or similar costs, and which are not adequately compensated for by 
annual adjustments under paragraph (a) of this section. The owner must 
submit to the contract administrator required supporting data, 
financial statements and certifications.
* * * * *
    Dated: April 25, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 94-10518 Filed 5-2-94; 8:45 am]
BILLING CODE 4210-27-P