[Federal Register Volume 59, Number 121 (Friday, June 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15432]


[[Page Unknown]]

[Federal Register: June 24, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 215, 236, 813, and 913

[Docket No. R-94-1576; FR-3025-F-01]
RIN 2501-AB20

 

Definition of Annual Income

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: The Omnibus Budget Reconciliation Act of 1990 (1990 OBR Act) 
(Pub. L. 101-508, approved November 5, 1990) excludes, for taxable 
years beginning after December 31, 1990, the earned income tax credit 
(EITC) refund from being considered as income for purposes of HUD's 
assisted housing programs. Because HUD regulations promulgated before 
the 1990 OBR Act specifically include in annual income any earned 
income tax credit to the extent it exceeds income tax liability, they 
are being amended to remove this requirement.

EFFECTIVE DATE: July 25, 1994.

FOR FURTHER INFORMATION CONTACT: Issues related to part 813 and 
programs administered by the Assistant Secretary for Housing--Federal 
Housing Commissioner, including parts 215 and 236: Barbara D. Hunter, 
Acting Director, Planning and Procedures Division, Office of 
Multifamily Housing Management, Room 6182, 451 Seventh Street, S.W., 
Washington, D.C. 20410, Telephone (202) 708-4162. A telecommunications 
device (TDD) for speech or hearing impaired persons is available at 
(202) 708-4594. (These are not toll-free telephone numbers.)
    Issues related to part 913 and programs administered by the 
Assistant Secretary for Public and Indian Housing, including part 813 
as it relates to Section 8 certificates, vouchers, and moderate 
rehabilitation: Casimir Bonkowski, Director, Office of Management and 
Policy, Office of Public and Indian Housing, Room 4224, 451 Seventh 
Street, SW., Washington, D.C. 20410, Telephone (202) 708-0444. A 
telecommunications device (TDD) for speech or hearing impaired persons 
is available at (202) 708-0850. (These are not toll-free telephone 
numbers.)

SUPPLEMENTARY INFORMATION: The earned income tax credit refund is a 
payment from the Internal Revenue Service to low income workers with 
children. Eligible workers must apply for this credit. The refund may 
be received over the year as a regular addition to a worker's pay, or 
as a single sum after filing a tax return, at the option of the worker. 
Under either option, no EITC refund payment received on or after 
January 1, 1991 is considered as income for the Department's assisted 
housing programs, in accordance with section 11111(b) of the Omnibus 
Budget Reconciliation Act of 1990 (1990 OBR Act) (Pub. L. 101-508, 
approved November 5, 1990).
    Because existing HUD regulations at 24 CFR 215.21(b)(9), 
236.3(b)(9), 813.106(b)(9) and 913.106(b)(9) specifically include in 
annual income any earned income tax credit to the extent it exceeds 
income tax liability, they are being amended to remove this 
requirement.
    The Department has determined that the changes made by this rule 
should be adopted without the delay occasioned by requiring prior 
notice and comment. These changes simply construe statutory language 
and do not seek to impose obligations that are not in the statute. As 
such, the rule is exempt, as an interpretive rule under 24 CFR Part 10, 
from notice and comment requirements.

Findings and Certifications

Environmental Impact

    This action is categorically excluded from the NEPA requirements at 
24 CFR Part 50 in accordance with 24 CFR 50.20(l) because it relates to 
a statutorily required establishment of a HUD-determined rate which 
does not constitute a development decision that affects the physical 
condition of specific project areas or building sites.

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 the Order. This rule only implements a 
statutory requirement that adjusts the way annual income is determined, 
and it will not have substantial, direct effects on States, on their 
political subdivisions, or on their relationships with the Federal 
government, or on the distribution of power and responsibilities 
between them and other levels of government.

Family Impact

    The General Counsel, as the Designated Official under Executive 
Order 12606, the Family, has determined that this rule does not have a 
potentially significant impact on family formation, maintenance, and 
general well-being, since it implements a statutory requirement that 
affects a single factor in how annual income is determined, and thus, 
is not subject to review under the Order.
    This rule was listed as item No. 1544 in the Department's 
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR 
20424, 20438) under Executive Order 12866 and the Regulatory 
Flexibility Act.

List of Subjects

24 CFR Part 215

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

24 CFR Part 236

    Grant programs--housing and community development, Low and moderate 
income housing, Mortgage insurance, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 813

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

24 CFR Part 913

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

    Accordingly, the Department amends 24 CFR Parts 215, 236, 813, and 
913 as set forth below:

PART 215--RENT SUPPLEMENT PAYMENTS

    1. The authority citation for 24 CFR part 215 continues to read as 
follows:

    Authority: 12 U.S.C. 1701s; 42 U.S.C. 3535(d).


Sec. 215.21  [Removed]

    2. In Sec. 215.21, paragraph (b)(9) is removed.

PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENT FOR 
RENTAL PROJECTS

    3. The authority citation for 24 CFR part 236 continues to read as 
follows:

    Authority: 12 U.S.C. 1715b and 1715z-1; 42 U.S.C. 3535(d).


Sec. 236.3   [Removed]

    4. In Sec. 236.3, paragraph (b)(9) is removed.

PART 813--DEFINITION OF INCOME, INCOME LIMITS, RENT AND 
REEXAMINATION OF FAMILY INCOME FOR THE SECTION 8 HOUSING ASSISTANCE 
PAYMENTS PROGRAMS AND RELATED PROGRAMS

    5. The authority citation for 24 CFR part 813 continues to read as 
follows:

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


Sec. 813.106  [Removed]

    6. In Sec. 813.106, paragraph (b)(9) is removed.

PART 913--DEFINITION OF INCOME, INCOME LIMITS, RENT AND 
REEXAMINATION OF FAMILY INCOME FOR THE PUBLIC HOUSING PROGRAM

    7. The authority citation for 24 CFR part 913 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437d, 1437n and 3535(d).


Sec. 913.106  [Removed]

    8. In Sec. 913.106, paragraph (b)(9) is removed.

    Dated: June 20, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-15432 Filed 6-23-94; 8:45 am]
BILLING CODE 4210-32-P