[Federal Register Volume 59, Number 137 (Tuesday, July 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17403]


[[Page Unknown]]

[Federal Register: July 19, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner

24 CFR Part 200

[Docket No. R-94-1623; FR-3028-F-02]
RIN: 2502-AF26

 

Changes to the Minimum Property Standards: Seismic Standards

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

ACTION: Final rule.

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SUMMARY: This final rule would amend the Minimum Property Standards 
(MPS) in 24 CFR part 200, subpart S, to specify that seismic design is 
a mandatory standard requirement for applicable housing. In addition, 
the rule would update a reference to a private sector seismic design 
standard currently incorporated into the MPS. This change to the MPS is 
needed to comply with the requirements of Executive Order 12699, the 
National Earthquake Hazards Reduction Program Reauthorization Act, and 
the Cranston-Gonzalez National Affordable Housing Act. These revisions 
would ensure the structural integrity of applicable housing, and would 
protect the Department's insurance fund.

EFFECTIVE DATE: August 18, 1994.

FOR FURTHER INFORMATION CONTACT: Donald R. Fairman, Acting Director, 
Manufactured Housing and Construction Standards Division, Department of 
Housing and Urban Development, 451 Seventh Street SW, Mail Room B133, 
Washington, DC 20410-8000, telephone (202) 755-7440, or (202) 708-4594 
(voice/TDD). (These are not toll-free telephone numbers.)

SUPPLEMENTARY INFORMATION:

Background

    On August 4, 1993, the Department published in the Federal Register 
a proposed rule (58 FR 41445) to amend the Minimum Property Standards 
(MPS) in 24 CFR part 200, subpart S. All housing constructed under the 
Department of Housing and Urban Development (``Department'' or ``HUD'') 
mortgage insurance and low-rent public housing programs is required to 
meet or exceed the HUD-established MPS.
    Section 526 of the National Housing Act (12 U.S.C. 1735f-4) 
authorizes the Secretary of Housing and Urban Development (Secretary) 
to prescribe standards for determining the acceptability of care-type 
facilities and one- and two-family and multifamily residential 
structures. Accordingly, the Secretary prescribed minimum property 
standards in 24 CFR part 200, subpart S. Provisions governing the 
health and safety criteria applicable to multifamily housing were 
simplified in 1984 (49 FR 18690, May 1, 1984), to rely on criteria 
already established in State or local codes or nationally recognized 
model codes.
    This simplification was extended to care-type housing insured under 
HUD programs by a final rule published August 11, 1986 (51 FR 28696). 
The change implemented by that rule consolidated the requirements 
applicable to multifamily and care-type housing, allowing the 
Department to rely on established codes that have been determined by 
HUD to be comparable to one of the national model codes.
    By a separate rule (50 FR 39586, September 27, 1985), the minimum 
property standards applicable to one- and two-family dwellings also 
were simplified to rely on criteria already established in State or 
local codes or one of the nationally recognized model codes. This rule 
was described (50 FR 39586) as being similar in many respects to the 
1984 rule amending the minimum property standards for multifamily 
housing.

Executive and Legislative Mandates

    The Department is subject to three separate directives that require 
it to address seismic safety issues in regulations governing programs 
operated by the Department. The first of these directives is an 
Executive Order issued by former President Bush. The other two 
directives are the National Earthquake Hazards Reduction Program 
Reauthorization Act, approved November 16, 1990 (Pub. L. 101-614) 
(NEHRP Reauthorization Act), and section 947 of the Cranston-Gonzalez 
National Affordable Housing Act, approved November 28, 1990 (Pub. L. 
101-625) (NAHA).
    On January 5, 1990, former-President Bush signed Executive Order 
12699, ``Seismic Safety of Federal and Federally Assisted or Regulated 
New Building Construction'' (Executive Order). In part, the purpose of 
this Executive Order is ``to reduce risks to the lives of persons who 
would be affected by earthquake failures of federally assisted or 
regulated buildings, and to protect public investments, all in a cost-
effective manner.'' The Executive Order applies only to new buildings 
being constructed with Federal involvement. Each Federal agency is made 
responsible for developing and implementing its own cost-effective 
seismic safety program commensurate with its specific program 
responsibilities. However, section 4(a) of the Executive Order charges 
the Interagency Committee on Seismic Safety in Construction (ICSSC) to 
use consensus procedures in recommending cost-effective seismic design 
and construction standards that would satisfy the requirements of the 
Executive Order. The Department has been working with the ICSSC to 
identify and meet the Department's responsibilities under the Executive 
Order.
    Although the Executive Order does not create rights that make it 
privately enforceable, its provisions are made mandatory by section 
8(a) of the NEHRP Reauthorization Act. Under the NEHRP Reauthorization 
Act each Federal agency is required to issue final regulations that 
comply with the Executive Order.
    Finally, section 947 of NAHA requires the Secretary to develop 
seismic safety standards for properties assisted under HUD programs. 
The Secretary expressly is permitted to defer to local building codes 
that meet the seismic safety requirements established, and is 
authorized to utilize the resources of the National Earthquake Hazards 
Reduction Program (see 42 U.S.C. 7704).
    The ICSSC was established as part of this Program in 1978, in 
response to the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 
7701-7706). Since that time, the ICSSC has been working with Federal 
agencies and the private sector to develop appropriate, generally 
recognized, seismic safety standards. This final rule permits the 
Department to benefit from the efforts of the ICSSC, by referencing 
private sector seismic design and construction standards, as intended 
under section 3(a) of the Executive Order. In accordance with ICSSC 
recommendations, in this final rule the Department is adopting the 
seismic requirements included in the American Society of Civil 
Engineers (ASCE) standard ASCE 7-88, Minimum Design Loads for Buildings 
and Other Structures.
    The Department expects to follow the recommendations of the ICSSC 
in applying the requirements that would be established by this final 
rule, as long as those recommendations would promote the purposes of 
the Department's programs. For example, the seismic safety requirements 
would apply where HUD assistance is provided through loan or mortgage 
insurance programs, and the requirements will apply to additions and 
renovations to existing buildings. Further, an addition or renovation 
should not decrease the seismic resistance of an existing building.

Elements of Final Rule

    Since 1984, most of the private standards referenced in the MPS 
have been changed, often because the sponsoring organization has 
updated a standard. ASCE 7-88, adopted by the sponsoring organization 
in 1988, but not published until July 1990, recently was incorporated 
by reference in 24 CFR part 200, Appendix A (58 FR 60246, November 15, 
1993). This standard was formerly listed as ANSI A58.1-1982; with a 
sponsorship change of the standard from the American National Standards 
Institute (ANSI) to the American Society of Civil Engineers (ASCE), and 
the revisions published by ASCE in 1990, the Department revised its 
reference to this standard to be consistent with section 526 of the 
National Housing Act, OMB Circular A-119, and the goals of the 
Department. This final rule will simply mandate compliance with the 
seismic design requirements of ASCE 7-88.
    In addition, the Department is correcting minor typographical 
errors in current regulatory text. Other changes that had been included 
in the proposed rule have already been adopted recently by the 
Department in a separate rulemaking and, therefore, are not included in 
this final rule.
    This final rule concerns those property standards applicable to 
multifamily and care-type housing and to one- and two-family dwellings. 
Because manufactured homes eligible for insurance are subject to 
different minimum standards, the Department will propose a separate 
rule to mandate seismic standards appropriate for that category of 
housing.

Comments

    Two public comments were received on the proposed rule published in 
the Federal Register on August 4, 1993. One comment was from the 
American Society of Civil Engineers (ASCE), and the other was from the 
National Institute of Standards and Technology (NIST), U.S. Department 
of Commerce.
    The ASCE comment stated that ANSI/ASCE Standard 7-88, Minimum 
Design Loads for Buildings and Other Structures (November 1990) (ASCE 
7-88 in this preamble), was under review for change and should be 
considered as an interim standard. They also pointed out that ASCE was 
planning to publish changes to ASCE 7-88 in late 1993 or early 1994 and 
requested the Department to consider waiting for these changes. 
Although the Department appreciates the ASCE comment, we must comply 
with the mandate in Executive Order 12699 and the Cranston-Gonzalez 
National Affordable Housing Act (Pub. L. 101-625, approved November 28, 
1990) (NAHA), which requires HUD to adopt seismic requirements for its 
programs. Therefore, this rule references the standard that has been 
reviewed by the Department and approved for incorporation by reference. 
Newer ASCE requirements can be considered for possible revisions to any 
HUD standards to which they would apply.
    The Department of Commerce, National Institute of Standards and 
Technology (NIST), point out that the 1982 and 1984 editions of the 
model codes are not considered acceptable for seismic design. The 
Department acknowledges this problem and has changed these references 
to refer to the 1993 editions of the model codes. These changes are in 
conformity with changes to the MPS that were made in a final rule 
published November 15, 1993, in the Federal Register (58 FR 60246).
    NIST also noted that the Interagency Committee on Seismic Safety in 
Construction (ICSSC) has reviewed the 1991 edition of the ICBO Building 
Code, the 1992 edition of the BOCA National Building Code, and the 1992 
edition of the SBCCI Southern Standard Building Code, and found that 
all provide a level of safety substantially equivalent to that defined 
in the NEHRP Recommended Provisions.

Other Matters

Regulatory Flexibility Act

    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 this rule does not have a significant 
economic impact on a substantial number of small entities. The major 
portion of the rule is designed to effectuate statutory requirements 
broadly, so that affected parties are permitted to choose among 
reasonable alternatives in complying with the statutory requirements. 
Generally, these requirements are imposed separately through State and 
local building codes that have been, or are being, updated to include 
the seismic safety standards. This rule would comply with the statutory 
requirements by specifically referencing existing standards, which have 
been reviewed and determined to be adequate.

Environmental Impact

    At the time of publication of the proposed rule, a finding of no 
significant impact with respect to the environment was made in 
accordance with HUD regulations in 24 CFR part 50 that implement 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332). The proposed rule is adopted by this final rule without 
significant change. Accordingly, the initial finding of no significant 
impact remains applicable, and is available for public inspection 
between 7:30 a.m. and 5:30 p.m. weekdays in the office of the Rules 
Docket Clerk at the above address.

Executive Order 12612, 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 final rule have federalism implications, and are 
subject to review under the order. Specifically, the rule provides for 
additional building design and construction standards to be applied to 
certain buildings in which federal assistance is provided. Because 
current building standards are met largely through compliance with 
existing State and local building codes, the additional requirement 
imposed by this rule may encourage States and local jurisdictions to 
adopt more stringent seismic design standards. This approach would 
allow local contractors to continue to rely upon the State and local 
codes in building to meet any federal requirements.
    However, this rule is intended to implement statutory requirements 
that are broadly applicable to federal programs government-wide, and 
are not limited to HUD programs. In an effort for consistency and 
simplification, and as a result of information provided by the 
Interagency Committee on Seismic Safety in Construction, a great 
majority of State and local governments have already adopted acceptable 
seismic design and construction standards in their State and local 
codes. In large part, the movement to include seismic standards in 
building design and construction was led by the national model code 
organizations, whose model codes are often adopted by State and local 
governments.
    Therefore, while the Department recognizes the potential federalism 
implications of this rule, the Department believes any federalism 
impact on State and local governments would be a function of the 
government-wide Federal requirements, rather than this discrete rule. 
Therefore, a more comprehensive review under Executive Order 12612 is 
not required, because the implementation of the statutes and Executive 
Order 12699 leaves little discretion with the Department to lessen 
these impacts.

Executive Order 12606, the Family

    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. No significant change in existing HUD policies or programs will 
result from promulgation of this rule, as those policies and programs 
relate to family concerns.

Regulatory Agenda

    This rule was listed as Item No. 1590 in the Department's 
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR 
20424, 20448), in accordance with Executive Order 12866 and the 
Regulatory Flexibility Act.

List of Subjects

24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Housing standards, Incorporation by 
reference, Lead poisoning, Loan programs--housing and community 
development, Minimum property standards, Mortgage insurance, 
Organization and functions (Government agencies), Penalties, Reporting 
and recordkeeping requirements, Social security, Unemployment 
compensation, Wages.

    For the reasons set out in the preamble, title 24, subpart S of the 
Code of Federal Regulations, is amended as follows:
PART 200--INTRODUCTION 
Subpart S--Minimum Property Standards 
    1. The authority citation for Part 200 is revised to read as 
follows:

    Authority: 12 U.S.C. 1701-1715z-18; 42 U.S.C. 3535(d).

    2. Section 200.925a is amended by revising paragraph (c)(2) and by 
adding a sentence at the end of paragraph (c)(3), to read as follows: 
Sec. 200.925a  Multifamily and care-type minimum property standards.

* * * * *
    (c) * * *
    (2) A State or local building code will be partially accepted if it 
regulates most of the areas on the list. However, no code may be 
partially accepted if it fails to regulate the subarea for seismic 
design (see Sec. 200.925b(c)(5)), or if it fails to regulate subareas 
in more than one of the following major areas listed in Sec. 200.925b: 
fire safety, light and ventilation, structural loads and seismic 
design, foundation systems, materials standards, construction 
components, glass, mechanical, plumbing, electrical, and elevators.
    (3) * * * However, for earthquake loads (see Sec. 200.925b(c)(5)), 
ASCE 7-88 is mandatory.
* * * * *
    3. Section 200.925b is amended by revising the heading for 
paragraph (c) and paragraph (c)(5) to read as follows: 
Sec. 200.925b  Residential and institutional building code comparison 
items.

* * * * *
    (c) Structural loads and seismic design. * * *
    (5) Earthquake loads (in localities identified by ASCE 7-88 
(formerly ANSI A58.1-82) as being in seismic zones 1, 2, 3, or 4, and 
Guam).
* * * * * 
    4. Section 200.925c is amended by revising the introductory text of 
paragraph (c) to read as follows: 
Sec. 200.925c  Model codes.

* * * * * 
    (c) Designation of Model Codes. When a multifamily or care-type 
property is to comply with a model code, it shall comply with one of 
the model codes designated in paragraphs (c)(1), (2), or (3) of this 
section, and with any other code or codes identified in the same 
paragraph. However, seismic design is a mandatory requirement. In 
addition, the property shall comply with all of the standards that are 
incorporated into the code or codes by reference. By the time of 
application for insurance or other benefits, the developer or other 
interested party shall notify the Department of the code or group of 
codes to which the developer intends to comply.
* * * * * 
    5. Section 200.926 is amended by revising paragraph (c)(2) and 
adding a sentence at the end of paragraph (c)(3), to read as follows: 
Sec. 200.926  Minimum property standards for one and two family 
dwellings.

* * * * *
    (c) * * *
    (2) A State or local building code will be partially accepted if it 
regulates most of the areas on the list. However, no code may be 
partially accepted if it fails to regulate the subarea for seismic 
design (see Sec. 200.926a(c)(5)), or if it fails to regulate subareas 
in more than one of the following major areas listed in Sec. 200.926a: 
fire safety, light and ventilation, structural loads and seismic 
design, foundation systems, materials standards, construction 
components, glass, mechanical, plumbing, and electrical.
    (3) * * * However, for earthquake loads (see Sec. 200.926a(c)(5)), 
ASCE 7-88 is mandatory.
* * * * * 
    6. Section 200.926a is amended by revising the heading of paragraph 
(c) and paragraphs (c)(3) and (c)(5), to read as follows: 
Sec. 200.926a  Residential building code comparison items.

* * * * * 
    (c) Structural loads and seismic design. * * *
    (3) Snow loads (for jurisdictions with snow loading conditions 
identified in Section 7 of ASCE-7-88 (formerly ANSI A58.1-82); * * *
    (5) Earthquake loads (for jurisdictions in seismic zones 3 or 4, as 
identified in Section 9 of ASCE-7-88 (formerly ANSI A58.1-82)).
* * * * * 
Sec. 200.926c  [Amended]

    7. The table titled ``Schedule for Model Code Supplements to Local 
or State Codes'' in Sec. 200.926c is amended by revising the heading, 
``Deficient major from Sec. 200.926a as determined by field office 
review'', and item (c), ``Structural loads * * *'', in the first (left-
hand) column, to read, respectively, as follows: ``Deficient major 
items from Sec. 200.926a as determined by field office review'' and 
``(c) Structural loads and seismic design * * *''. 
Sec. 200.926e  [Amended]

    8. Section 200.926e is amended by removing each reference to ``ANSI 
A58.1-82'' where it occurs in paragraphs (b), (c) introductory text 
(two occurrences), (c)(2), and (d), and replacing each occurrence with 
the reference ``ASCE 7-88''. 
Sec. 200.937  [Amended]

    9. Section 200.937(a)(2) is amended by revising the address, ``1430 
Broadway, New York, NY 10018'', listed for the American National 
Standards Institute, Inc., to read as follows: ``11 West 42nd Street, 
New York, NY 10036''.

    Dated: June 28, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 94-17403 Filed 7-18-94; 8:45 am]
BILLING CODE 4210-27-P