[Federal Register Volume 59, Number 123 (Tuesday, June 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15555]


[Federal Register: June 28, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 55

[Docket No. R-94-1436; FR-865-F-06]
RIN 2501-AA23


HUD Procedure for the Implementation of Executive Order 11988; 
Technical Amendment to Final Rule

AGENCY: Office of the Secretary, HUD.

ACTION: Technical amendment to final rule.

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SUMMARY: HUD is adopting a technical amendment to its final rule 
containing procedures to implement Executive Order 11988 on floodplain 
management. The final rule requires that documents used in the 
conveyance of HUD-acquired properties in a floodplain must refer to 
uses restricted under Federal, state or local floodplain regulations 
and include any land use restrictions under state or local laws. The 
final rule also requires purchasers of HUD-acquired properties 
containing Critical Actions to notify tenants regarding floodplain 
hazards and flood insurance. The technical amendment restricts these 
requirements to the disposition of multifamily properties. HUD is also 
correcting an error in a cross-citation within the final rule.

EFFECTIVE DATE: May 23, 1994.

FOR FURTHER INFORMATION CONTACT: Richard H. Broun, Director, Office of 
Environment and Energy, Room 7240, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410. For 
telephone communications, contact Truman Goins, Water Resources 
Coordinator, Office of Environment and Energy, at (202) 708-2894, TDD 
(202) 708-2565.

SUPPLEMENTARY INFORMATION: HUD published 24 CFR part 55 as a final rule 
on April 21, 1994 (59 FR 19100), with an effective date of May 23, 
1994. Part 55 contains procedures implementing Executive Order 11988, 
Floodplain Management (42 FR 26951, May 25, 1977).
    Section 55.22(a) of the final rule requires that in the disposition 
(including leasing) of properties acquired by HUD that are located in a 
100-year floodplain (a 500-year floodplain for a Critical Action), the 
documents used for the conveyance must: (1) Refer to those uses that 
are restricted under identified federal, state, or local floodplain 
regulations; and (2) include any land use restrictions limiting the use 
of the property by a grantee or purchaser and any successors under 
state or local laws.
    Section 55.22(b) requires that for disposition of properties 
acquired by HUD that are located in a 500-year floodplain and contain 
Critical Actions, HUD shall, as a condition of approval of the 
disposition, require by covenant or comparable restriction on the 
property's use that the property owner and successive owners provide 
written notification to each current and prospective tenant, and post 
an easily visible notice, concerning: (1) The hazards to life and 
property for persons who reside or work in a structure in the 500-year 
floodplain, and (2) the availability of flood insurance on the contents 
of their dwelling unit or business.
    The requirements in Sec. 55.22(a) were intended to implement 
Section 3(d) of Executive Order 11988, which applies to agencies with 
responsibilities for Federal real property and facilities. However, HUD 
annually disposes of approximately 65,000 to 70,000 one- to four-family 
properties acquired as the result of foreclosure or similar means, 
generally in connection with a homeowner's default under a mortgage 
that has been insured by HUD under the National Housing Act. HUD has 
determined that application of the requirements in Sec. 55.22(a) to the 
disposition of these one- to four-family properties would be 
impractical and unnecessary. Application of the requirement to these 
properties is impractical because it would necessitate the research of 
Federal, state and local restrictions on thousands of properties to be 
disposed of within the floodplain each year. These restrictions may be 
located within building codes, zoning ordinances or other bodies of 
law, thus requiring a broad search of various laws and ordinances. The 
research needed to locate these provisions for each one- to four-family 
property would impose an unreasonable burden on HUD resources. In 
addition, the requirement is unnecessary, because the Federal, State 
and local laws and regulations are applicable and enforceable 
regardless of whether they are specifically mentioned in conveyance 
documents. The vast majority of such acquired properties will already 
contain an existing residential structure, so that any legal 
restrictions will generally apply only to additions to the structure or 
a change in use; in any case, the owner will generally need to obtain a 
building permit or other local government approval for any improvements 
or additions to the property.
    Accordingly, HUD has determined to amend Sec. 55.22(a) to apply 
these requirements only to the disposition of multifamily properties.
    The requirements contained in Sec. 55.22(b) with regard to 
notification of tenants in properties containing Critical Actions (such 
as hospitals, nursing homes, and other facilities that are likely to 
contain occupants with mobility difficulties) are not expected to be 
applied to one- to four-family properties, since it is unlikely that 
one- to four-family properties will contain critical actions. However, 
to avoid confusion on this issue, HUD is amending Sec. 55.22(b) to 
clarify that the requirements of that paragraph apply only to the 
disposition of multifamily properties that contain Critical Actions.
    Finally, HUD is correcting an inadvertent error in a cross-citation 
within part 55. Section 55.12(b)(2) refers to the definition of 
``substantial improvement''. The citation to that definition is 
corrected to refer to Sec. 55.2(b)(8) rather than Sec. 55.12(b)(9).

Other Matters

    The findings and statements made in the preamble to the final rule 
with respect to Executive Orders 12606, 12612 and 12866 and the 
Regulatory Flexibility Act are not affected by this technical 
amendment. The Finding of No Significant Impact with respect to the 
environment that has been made with respect to this rule is also 
unaffected.

List of Subjects in 24 CFR Part 55

    Environmental protection, Flood plains.

    Accordingly, 24 CFR part 55 is amended as follows:

PART 55--[AMENDED]

    1. The authority citation for part 55 continues to read as follows:

    Authority: 42 U.S.C. 3535(d) and 4001-4128; E.O. 11988, 42 FR 
26951, 3 CFR, 1977 Comp., p. 117.


Sec. 55.12  [AMENDED]

    2. Section 55.12(b)(2) is amended by deleting ``Sec. 55.2(b)(9)'' 
and adding in its place ``Sec. 55.2(b)(8)''.
    3. Section 55.22 is amended by revising the section heading to read 
as set forth below and by adding the word ``multifamily'' immediately 
before the words ``properties acquired by HUD'' in the introductory 
text of paragraphs (a) and (b) (1).


Sec. 55.22  Conveyance restrictions for the disposition of multifamily 
real property.

* * * * *
    Dated: June 20, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-15555 Filed 6-27-94; 8:45 am]
BILLING CODE 4210-32-P