[Federal Register Volume 59, Number 95 (Wednesday, May 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12026]


[[Page Unknown]]

[Federal Register: May 18, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Part 905

[Docket No. R-94-1718; FR-3488-F-01]
RIN 2577-AB29

 

Assisted Housing for Indians & Alaskan Natives--Payments to 
Municipalities

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

ACTION: Final rule.

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SUMMARY: This rule amends existing regulations to implement provisions 
in the Housing and Community Development Act of 1992 that eliminate the 
requirement that Indian Housing Authorities (IHAs) demonstrate that the 
cost of new construction would be less costly than acquiring 
properties; and allow IHAs to make annual payments to municipalities, 
which may include Tribal, city or county government, or other politial 
subdivisions that provide roads, water supply, sewage facilities, 
electrical systems or fuel distributions systems to IHAs.

EFFECTIVE DATE: June 17, 1994.

FOR FURTHER INFORMATION CONTACT: Dominic Nessi, Director, Office of 
Native American Programs, Room 4140, 451 Seventh Street, SW, 
Washington, DC 20410; telephone (202) 708-1015; TDD (202) 708-0850. 
(These are not toll-free telephone numbers.)

SUPPLEMENTARY INFORMATION:

Background

    This rule implements section 122(a) and section 122(c) of the 
Housing and Community Development Act of 1992. Section 122(a) amends 
section 201(c) of the United States Housing Act of 1937 (1937 Act) by 
making section 6(h) inapplicable to IHAs. Section 6(h) required that 
IHAs demonstrate to the satisfaction of the Secretary that the cost of 
new construction would be less than the cost of acquiring properties, 
before an IHA constructed new units. Under the amendment made by 
section 122(a), IHAs are no longer required to provide documentation 
with an application for new construction stating that the new 
construction is less costly than the acquisition and/or rehabilitation 
of existing dwellings. The Indian housing regulation (24 CFR 
905.210(a)) has been removed.
    Section 122(c) amended section 203(b) of the 1937 Act by allowing 
IHAs to make annual payments (hereafter referred to as User Fees) to 
municipalities that provide any roads, water supply, sewage facilities, 
electrical systems, or fuel distributions systems to IHAs. Section 6(d) 
of the 1937 Act provides that no contribution will be made to a low-
income housing project unless the project is exempt from all real and 
personal property taxes levied or imposed by the State, city, county, 
or other political subdivision. The 1937 Act also contained a provision 
for Payment in Lieu of Taxes (PILOT) for related facilities and 
services delivered by a local government, which did not include Tribal 
government.
    Section 122(c) amended section 203(b) by adding the following:

    Notwithstanding any other provision of this Act, the Secretary 
shall make annual payments from funds appropriated under section 
9(c) to municipalities providing such roads, facilities, and systems 
in a[n] amount equal to--
    (1) 10 percent of the applicable shelter rent, minus the utility 
allowance; or
    (2) $150,

whichever is greater, for each rental housing unit covered by this 
subsection.

    This regulatory change applies to all IHAs operating rental 
programs and receiving related facilities and services from 
municipalities. The Indian housing regulations at 24 CFR 905.720 will 
incorporate the amendment and add a new category of additional 
operating subsidy eligibility for an IHA's rental program.

Justification for Final Rule

    In general, the Department publishes a rule for public comment 
before issuing a rule for effect, in accordance with its own 
regulations on rulemaking at 24 CFR part 10. However, part 10 provides 
for exceptions from that general rule where the Department finds good 
cause to omit advance notice and public comment. ``Good cause'' may be 
found where advance notice and comment is ``impracticable, unnecessary, 
or contrary to the public interest'' (24 CFR 10.1). The Department 
finds that good cause exists to publish this rule for effect without 
first soliciting public comment, because the statutory provisions are 
self-executing and prior public comment is unnecessary. The rule is a 
technical amendment to update the regulations.

Other Matters

Impact on Environment

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
which implement section 102(2)(C) of the National Environmental Policy 
Act of 1969. The Finding is available for public inspection between 
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket 
Clerk, Office of the General Counsel, Department of Housing and Urban 
Development, Room 10276, 451 Seventh Street SW, Washington, DC 20410

Regulatory Flexibility

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this rule before publication and by 
approving it certifies that the rule will not have a significant 
economic impact on a substantial number of small entities. Any impact 
on small entities will be beneficial.

Semiannual Agenda

    This rule was listed as item 1697 in the Department's Semiannual 
Agenda of Regulations published on April 25, 1994 (59 FR 20424, 20472) 
under Executive Order 12866 and the Regulatory Flexibility Act.

Family Impact

    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; therefore, is not subject to review under the 
order.

Federalism

    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 do not have federalism implications and thus, 
are not subject to review under this order. The rule will not interfere 
with or preempt State or local government functions.

List of Subjects in 24 CFR Part 905

    Aged, Energy conservation, Grant programs--housing and community 
development, Grant programs--Indians, Indians, Individuals with 
disabilities, Lead poisoning, Loan programs--housing and community 
development, Loan programs--Indians, Low and moderate income housing, 
Public housing, Reporting and recordkeeping requirements.

    Accordingly, 24 CFR part 905 is amended as follows:

PART 905--INDIAN HOUSING PROGRAMS

    1. The authority citation for 24 CFR part 905 continues to read as 
follows:

    Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a, 1437aa, 1437bb, 
1437cc, 1437ee and 3535(d).


Sec. 905.210  [Removed]

    2. Section 905.210 is removed.
    3. Section 905.720 is amended by adding paragraph (f) to read as 
follows:


Sec. 905.720  Other costs.

* * * * *
    (f) User Fee. Additional operating subsidy will be provided to IHAs 
for payment of an annual User Fee separate from the PFS. An IHA 
operating a rental program shall pay an annual User Fee to 
municipalities, which may include Tribal, city, county government, or 
other political subdivision that provides any roads, water supply, 
sewage facilities, electrical systems or fuel distributions systems. 
The annual User Fee will be paid in an amount equal to 10 percent of 
the applicable shelter rent, minus the utility allowance; or $150, 
whichever is greater, for each rental housing unit covered by this 
section.
* * * * *
    Dated: May 3, 1994.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 94-12026 Filed 5-17-94; 8:45 am]
BILLING CODE 4210-33-P