[Federal Register Volume 59, Number 147 (Tuesday, August 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18692]


[[Page Unknown]]

[Federal Register: August 2, 1994]


_______________________________________________________________________

Part III





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Parts 905 and 960




Public and Indian Housing Exemption From Eligibility Requirements for 
Police Officers and Security Personnel; Final Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Parts 905 and 960

[Docket No. R-94-1643; FR-2972-F-02]
RIN 2577-AA94

 
Public and Indian Housing Exemption From Eligibility Requirements 
for Police Officers and Security Personnel

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This regulation implements section 519 of the Cranston-
Gonzalez National Affordable Housing Act (NAHA) by amending 24 CFR 
parts 905 and 960 to permit public housing agencies (PHAs) and Indian 
housing authorities (IHAs) (hereinafter, both public housing agencies 
and Indian housing authorities will be referred to as HAs, unless a 
specific reference to a PHA or IHA is applicable) to allow police 
officers and other security personnel not otherwise eligible for 
occupancy to reside in public or Indian housing dwelling units under a 
plan that will increase security for housing residents while minimizing 
both the reduction of available public and Indian housing dwelling 
units for eligible families and the loss of income to HAs.

EFFECTIVE DATE: September 1, 1994.

FOR FURTHER INFORMATION CONTACT: Regarding public housing: Edward 
Whipple, Director, Occupancy Division, Office of Assisted Housing, 
Office of Public and Indian Housing, Department of Housing and Urban 
Development, 451 Seventh Street, S.W. Room 4206, Washington D.C. 20410, 
telephone (202) 708-0744. A telecommunications device for speech and 
hearing impaired persons (TDD) is available at (202) 708-0850. (These 
are not toll-free telephone numbers.)
    Regarding Indian housing: Dominic Nessi, Director, Office of Native 
American Programs, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 451 Seventh Street, S.W. Room 4140, 
Washington D.C. 20410, telephone (202) 708-1015. A telecommunications 
device for speech and hearing impaired persons (TDD) is available at 
(202) 708-0850. (These are not toll-free telephone numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this final 
rule have been approved by the Office of Management and Budget, under 
section 3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520), and assigned OMB control number 2577-0185.

I. Background--Proposed Rule

    On June 7, 1993 (58 FR 32006), the Department published a proposed 
rule that would implement section 519 of the Cranston-Gonzalez National 
Affordable Housing Act (NAHA) by amending existing regulations to 
permit public housing agencies (PHAs) and Indian housing authorities 
(IHAs) to allow police officers and other security personnel not 
otherwise eligible for occupancy to reside in public and Indian housing 
dwelling units under a plan that will increase security for housing 
residents while minimizing both the reduction of available public and 
Indian housing dwelling units for eligible families and the loss of 
income to housing agencies (HAs).
    Under this final rule, eligibility for use of units as provided by 
section 519 of the NAHA requires that an HA submit a plan to the 
Department that identifies the total number of units under management 
by the HA; the specific housing developments, and the number of units 
they contain, where the HA intends to place Officers; and the 
particular units (stating number of bedrooms) within each development 
that would be allocated to Officers. This plan is required by 
Secs. 905.308(c)(1)(ii) and 960.505(a)(2) of the rule. Since the 
Department intends that each plan will be reviewed and approved by the 
local HUD Field Office or Office of Native American Programs, 
Secs. 905.308(c)(2) and 960.505(b) of the rule call for submission of 
the plan directly to these offices.
    Section 519 of the NAHA requires that the Department notify each HA 
submitting a plan of HUD's approval or disapproval of the plan not 
later than thirty days after the Department receives the plan. This 
requirement is set forth in Secs. 905.308(c)(3) and 960.505(c) of the 
rule. Plan approval by the Department constitutes granting of the 
exemption from eligibility requirements that would otherwise apply.

II. Public Comment

    The Department received 11 comments on the proposed rule. The 
commenters consisted of housing agencies and one professional 
association. All commenters expressed general support for the 
Department's proposed implementation of section 519 of NAHA.
    The main criticism of the proposed rule focused on loss of income 
due to the exclusion of units occupied by police officers from the 
Performance Funding System (PFS) formula. The proposed rule stated that 
dwelling units allocated to police officers in accordance with this 
subpart would be excluded from the total unit months available, as 
defined in 24 CFR 905.102 for IHAs and 24 CFR 990.102 for PHAs. For 
purposes of the operating subsidy under the PFS, the full amount of any 
rent paid by Officers in accordance with this rule is included in other 
income, as defined in Secs. 905.102 and 990.102.
    To make the most of its resources, the Department has consistently 
limited funding under the PFS to units that house low income families. 
Units used for other purposes, such as day care facilities or resident 
organization offices, are excluded from PFS. The Department currently 
permits the payment of operating subsidy for one non-dwelling unit per 
development that is used to promote economic self-sufficiency services 
or anti-drug programs. Anti-drug activities directly related to ridding 
developments of illegal drugs and drug-related activities include 
housing police and security officers. HA requests to allow 
consideration for the continued payment of operating subsidy for one 
unit per housing development used to support these activities may be 
submitted to the local HUD Field Office for review and approval. 
Operating subsidy for additional sites per housing development can only 
be approved by HUD Headquarters. This provision is added in 
Secs. 905.308(f) and 960.511(b) of the rule.
    Comments were also directed at the Allocation Table, which set 
forth a formula for determining number of units within each housing 
development for residency by police officers. The comments indicated 
that the table was too rigid and failed to take into consideration 
local conditions. Since the local HUD Field Office is responsible for 
final decision-making in this area, local public safety factors must be 
evaluated by Field Office staff in making decisions regarding unit 
allocation. An HA must certify, however, that any additional units 
proposed to be allocated for Officers are vacant units for which there 
are no Eligible Families. No resident may be moved from a unit to make 
it available for occupancy by an Officer under the plan.
    The balance of comments concerned issues on HUD Field Office 
approval of HA rents, alternative lease arrangements, and police 
responsibilities in lieu of rental payment. These are addressed as 
follows:
    One comment questioned why the local HUD Field Office should have 
the discretion to approve or deny the amount of rent to be paid by 
police officers. While the rule provides latitude to impose a 
``reasonable rent'' on police officers, the Field Office is familiar 
with local market conditions and can make a prudent determination 
regarding rent to be charged. In addition, the Field Office has major 
oversight responsibility for the day-to-day operation of HAs, and 
should provide guidance in this area.
    One comment questioned why a ``memorandum of understanding'' cannot 
be used in lieu of a lease since the agreement could be considered a 
special service contract between the HA and the Officer. The overall 
intent of the rule focuses on police visability in HA developments. 
Since police officers will occupy units operated and managed by an HA 
as residents, a formal lease should be utilized. It may, however, be 
modified to meet special needs of the HA and the police officer.
    Several comments questioned the definition of ``Reasonable Rent'' 
as contained in the rule. As a substitute for rental payment, it was 
proposed that officers provide specific services equal to the value of 
the unit. This is not the intent of the rule. Reasonable rent may be a 
flat amount not related to an officer's income, but it must be 
consistent with the limited loss of income requirements of this part.
    Finally, the terminology used in the proposed rule was that the 
rule implemented a ``waiver'' of the eligibility requirements. This 
rule implements a statutory waiver, but the term used is ``exemption'' 
from the eligibility requirements, in order to avoid administrative 
problems that may result because the Department follows additional 
processing requirements for actions, also called ``waivers,'' that 
suspend non-statutory requirements on a case-by-case basis.

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 the rule does not have a significant 
economic impact on a substantial number of small entities. The rule is 
limited to exempting from the public and Indian housing admissibility 
criteria for certain police and security personnel. By its terms, the 
rule limits the number of units that would be subject to such 
exemptions, thereby limiting the economic impact on all PHAs and IHAs, 
including any that may be small entities.

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
was made on the proposed rule in accordance with HUD regulations in 24 
CFR Part 50 which implements Section 102(2)(C) of the National 
Environmental Policy Act of 1969, 42 U.S.C. 4332. That Finding is 
available for public inspection during regular business hours 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. Since the environmental provisions of 
this final rule are unchanged from those published in the proposed 
rule, the original Finding of No Significant Impact is still valid.

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 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. The rule will effect 
a minor exception to a previously existing scheme of federal assistance 
to programs run by state and local government, but it will not alter 
the existing division of responsibility among federal, state and local 
governments.

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 the rule 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 sequence number 1702 in the Department's 
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR 
20424, 20473) in accordance with Executive Order 12866 and the 
Regulatory Flexibility Act.

List of Subjects

24 CFR Part 905

    Aged, Grant programs--Indians, Grant programs--housing and 
community development, Handicapped, Indians, Loan programs--housing and 
community development, Loan programs--Indians, Low and moderate income 
housing, Public housing, Reporting and recordkeeping requirements.

24 CFR Part 960

    Aged, Grant programs--housing and community development, 
Handicapped, Public housing.

    Accordingly, the Department amends 24 CFR parts 905 and 960 as 
follows:

PART 905--INDIAN HOUSING PROGRAMS

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

    Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a-1, 1437aa, 1437bb, 
1437c, 1437cc, 1437d(c)(4)(D), 1437ee, and 3535(d).

    2. 24 CFR part 905 is amended by adding a new Sec. 905.308 to read 
as follows:


Sec. 905.308  Exemption from eligibility requirements for police 
officers and other security personnel.

    (a) Purpose and scope. The purpose of this section is to permit the 
admission to Indian housing of police officers and other security 
personnel, who are not otherwise eligible for such housing under any 
other admission requirements or procedures, under a plan submitted by 
an Indian housing authority (HA) and approved by the Department, and to 
set forth standards and criteria for the approval of such plans. The 
Department's objective in granting the exemption allowed by this 
section is to permit long term residence in Indian housing developments 
by police officers and security personnel, whose visible presence is 
expected to serve as a deterrent to criminal activity in and around 
Indian housing.
    (b) Definitions. For the purposes of this section:
    Department means the U.S. Department of Housing and Urban 
Development (HUD). For purposes of plan submission and approval, 
Department refers to the local HUD Office of Native American Programs.
    Eligible families means families that are eligible for residence in 
Indian housing assisted under the United States Housing Act of 1937.
    Officer means a professional police officer or other professional 
security provider. Police officers and other security personnel are 
considered professional if they are employed full time, i.e., not less 
than 35 hours per week, by a governmental unit or a private employer 
and compensated expressly for providing police or security services. As 
used in this section, ``Officer'' may refer to the Officer as so 
defined or to the Officer and his or her family taken together, 
depending on the context.
    Plan means the written plan submitted by an HA to the Department, 
under which, if approved, the Department will exempt Officers from the 
normal eligibility requirements for residence in Indian housing 
developments and allow Officers, who are otherwise not eligible, to 
reside in Indian housing units. An HA may have only one plan in effect 
at any one time, which will govern exemptions under this section for 
all housing developments managed by that HA.
    (c) Exemption from eligibility requirements; plan submission; plan 
approval or disapproval.
    (1) Conditions for exemption. The Department may exempt Officers 
from the eligibility requirements for admission to Indian housing, 
provided that:
    (i) The Officers would not be eligible, under any other admission 
requirements or procedures, for admission to the Indian housing 
development without such an exemption; and
    (ii) The exemption is given under a properly submitted plan that 
satisfies the standards and criteria set forth in Sec. 905.308(d) of 
this part and, accordingly, has been approved by the Department.
    (2) Plan submission. A plan is properly submitted when it is 
received by the local HUD Office of Native American Programs with 
jurisdiction over the HA.
    (3) Notification of plan approval or disapproval. The Department 
will notify an HA of the approval or disapproval of its plan within 
thirty days of its submission. Plan approval by the Department 
constitutes granting of the exemption for the purposes of this section.
    (d) Plan standards and criteria.
    (1) Minimum requirements. To be approved, a plan must satisfy the 
following requirements:
    (i) The plan must identify the total number of units under 
management by the HA; the specific housing developments, and the number 
of units they contain, where the HA intends to place Officers; and the 
particular units (stating number of bedrooms) within each development 
that would be allocated to Officers. For each unit identified, the plan 
must state the amount of rent that the Officer will pay and facts and 
circumstances (such as, the rent that would ordinarily be charged for 
the unit, the HA's annual maintenance cost for the unit, the degree of 
difficulty in attracting Officers to reside in the unit, the extent of 
the crime problem in the development, and the anticipated benefits of 
the Officer's presence) that demonstrate the reasonableness of that 
amount, as required under Sec. 905.308(e)(i) of this part.
    (ii) The plan must identify specifically the benefits to the 
community and to the HA that will result from the presence of Officers 
in each affected development.
    (iii) The plan must describe the existing physical and social 
conditions in and around each affected development, providing specific 
evidence of criminal activity (such as, frequency of telephone calls to 
local police, number of arrests and types of offenses involved, and 
data on drug abuse in the community) in order to permit the Department 
to make an informed assessment of the level of need for increased 
security.
    (iv) The plan must afford the Department a reasonable basis, which 
necessarily includes the certifications required under 
Sec. 905.308(d)(2) of this part, for determining that the use by 
Officers of the identified dwelling units will:
    (A) Increase security for other Indian housing residents;
    (B) Result in a limited loss of income to the HA; and
    (C) Not result in a significant reduction of units available for 
residence by Eligible Families.
    (2) Certifications by HA. Only upon making the determination 
described in Sec. 905.308(d)(1)(iv) of this part will the Department 
approve a plan. Further, the Department will not make this 
determination unless the plan contains a written statement, signed by 
an authorized officer or other agent of the HA, certifying that:
    (i) The dwelling units proposed to be allocated to Officers are 
situated so as to place the Officers in close physical proximity to 
other residents;
    (ii) No resident families will have to be transferred to other 
dwelling units in order to make available the units proposed to be 
allocated to Officers;
    (iii) The dwelling units proposed to be allocated to Officers will 
be rented under a lease that contains the terms described in 
Sec. 905.308(e) of this part; and
    (iv) The number of dwelling units proposed to be allocated to 
Officers under the plan does not exceed the limits set forth in 
Sec. 905.308(d)(3) of this part or, in the alternative, any units so 
allocated in excess of the applicable maximum number are vacant units 
for which there are no Eligible Families. This certification on the 
part of the HA satisfies the requirements of Secs. 905.308(d)(1)(iv) 
(B) and (C) of this part.
    (3) Unit allocation table. For purposes of the certification 
required by Sec. 905.308(d)(2) of this part, the following table sets 
forth the maximum number of units to be allocated to Officers as a 
function of the total number of units under management by the HA: 

                         Unit Allocation Table                          
------------------------------------------------------------------------
                                                             Units to be
                Total units under management                  allocated 
------------------------------------------------------------------------
500-999....................................................            5
1000-4999..................................................           10
5000-9999..................................................           15
10,000+....................................................          20 
------------------------------------------------------------------------

    The maximum number of units to be allocated by HAs with less than 
500 units under management will be determined by the Office of Native 
American Programs on a case by case basis.

(Approved by the Office of Management and Budget under OMB control 
number 2577-0185.)

    (e) Special rent requirements and other terms and conditions. The 
HA shall lease units to Officers under a lease agreement, which must be 
submitted as a part of the plan, containing terms that provide as 
follows:
    (1) Reasonable rent. The lease shall provide for a reasonable rent, 
which may be a flat amount not related to the Officer's income. The HA 
should attempt to establish a rent that will provide an incentive to 
Officers to reside in the units but that is also consistent with the 
limited loss of income requirement of Sec. 905.308(d)(1)(iv)(B) of this 
part. As required in Sec. 905.308(d)(1)(i) of this part, the plan must 
state facts and circumstances (such as, the rent that would ordinarily 
be charged for the unit, the HA's annual maintenance cost for the unit, 
the degree of difficulty in attracting Officers to reside in the unit, 
the extent of the crime problem in the development, and the anticipated 
benefits of the Officer's presence) that demonstrate the reasonableness 
of the rent amount.
    (2) Responsibility for damage and overall condition. The Officer 
shall be responsible for physical damage to the interior of the leased 
unit, hallway and entrance, if any, and exterior area bordering the 
unit. The lease also shall require the Officer to maintain the overall 
condition of the leased unit, including control of litter in the area 
of the development immediately around the unit.
    (3) Responsibility for normal facility management. The lease shall 
impose on the HA responsibility for routine facility management 
relating to the leased unit, including ongoing maintenance and repair 
of equipment, trash collection and similar areas of responsibility.
    (4) Continued employment. The lease shall provide that the 
Officer's right of occupancy is dependent on the continuation of 
employment as an Officer. The lease also shall provide that the Officer 
will move out of the leased unit within a reasonably prompt time, to be 
established by the lease, after termination of employment as an 
Officer.
    (5) Prohibition on subletting. The lease shall prohibit the Officer 
from subletting the unit, and provide that the unit must be the 
Officer's primary residence.
    (f) Applicability of the annual contributions contract; effect on 
the performance funding system.
    (1) Annual contributions contract. Except to the extent that an 
exemption from eligibility requirements is provided under 
Sec. 905.308(c) of this part, Indian housing units occupied by Officers 
in accordance with a plan submitted and approved under this section 
will be subject to the terms and conditions of the annual contributions 
contract (ACC) between the HA and the United States of America. This 
section does not override any of the terms and conditions of the ACC 
except insofar as they are inconsistent with the provisions of this 
section.
    (2) Performance funding system. For purposes of the operating 
subsidy under the Performance Funding System (PFS) described in subpart 
J of this part, dwelling units allocated to Officers in accordance with 
this section are excluded from the total unit months available, as 
defined in Sec. 905.102 of this part. Also for purposes of the 
operating subsidy under the PFS, the full amount of any rent paid by 
Officers in accordance with this section is included in other income, 
as defined in Sec. 905.102 of this part. HAs may receive operating 
subsidy for one unit per housing development to promote economic self-
sufficiency services or anti-drug programs, including housing police 
officers and security personnel. An HA may request consideration of 
such units in its calculation of operating subsidy eligibility through 
the appropriate local HUD Office of Native American Programs.

PART 960--ADMISSION TO, AND OCCUPANCY OF, PUBLIC HOUSING

    3. The authority citation for 24 CFR part 960 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437a-1, 1437c, 1437d, 1437n, 
3535(d).

    4. 24 CFR part 960 is amended by adding a new subpart E to read as 
follows:
* * * * *

Subpart E--Exemption From Eligibility Requirements for Police Officers 
and Other Security Personnel

Sec.
960.501  Purpose and scope.
960.503  Definitions.
960.505  Exemption from eligibility requirements; plan submission; 
plan approval or disapproval.
960.507  Plan standards and criteria.
960.509  Special rent requirements and other terms and conditions.
960.511  Applicability of the annual contributions contract; effect 
on the Performance Funding System.

Subpart E--Exemption From Eligibility Requirements for Police 
Officers and Other Security Personnel


Sec. 960.501  Purpose and scope.

    The purpose of this subpart is to permit the admission to public 
housing of police officers and other security personnel, who are not 
otherwise eligible for such housing under any other admission 
requirements or procedures, under a plan submitted by a public housing 
agency (HA) and approved by the Department, and to set forth standards 
and criteria for the approval of such plans. The Department's objective 
in granting the exemption allowed by this subpart is to permit long 
term residence in public housing developments by police officers and 
security personnel, whose visible presence is expected to serve as a 
deterrent to criminal activity in and around public housing.


Sec. 960.503  Definitions.

    Department means the U.S. Department of Housing and Urban 
Development (HUD). For purposes of plan submission and approval, 
Department refers to the local HUD Field Office.
    Eligible families means families that are eligible for residence in 
public housing assisted under the United States Housing Act of 1937.
    Officer means a professional police officer or other professional 
security provider. Police officers and other security personnel are 
considered professional if they are employed full time, i.e., not less 
than 35 hours per week, by a governmental unit or a private employer 
and compensated expressly for providing police or security services. As 
used in this subpart, ``Officer'' may refer to the Officer as so 
defined or to the Officer and his or her family taken together, 
depending on the context.
    Plan means the written plan submitted by a public housing agency 
(PHA) to the Department, under which, if approved, the Department will 
exempt Officers from the normal eligibility requirements for residence 
in public housing and allow Officers, who are otherwise not eligible, 
to reside in public housing units. An HA may have only one plan in 
effect at any one time, which will govern exemptions under this subpart 
for all public housing managed by that HA.


Sec. 960.505  Exemption from eligibility requirements; plan submission; 
plan approval or disapproval.

    (a) Conditions for exemption. The Department may exempt Officers 
from the eligibility requirements for admission to public housing, 
provided that:
    (1) The Officers would not be eligible, under any other admission 
requirements or procedures, for admission to the public housing 
development without such an exemption; and
    (2) The exemption is given under a properly submitted plan that 
satisfies the standards and criteria set forth in Sec. 960.507 of this 
part and, accordingly, has been approved by the Department.
    (b) Plan submission. A plan is properly submitted when it is 
received by the local HUD Field Office with jurisdiction over the HA.
    (c) Notification of plan approval or disapproval. The Department 
will notify an HA of the approval or disapproval of its plan within 
thirty days of its submission. Plan approval by the Department 
constitutes granting of the exemption for the purposes of this subpart.


Sec. 960.507  Plan standards and criteria.

    (a) Minimum requirements. To be approved, a plan must satisfy the 
following requirements:
    (1) The plan must identify the total number of units under 
management by the HA; the specific housing developments, and the number 
of units they contain, where the HA intends to place Officers; and the 
particular units (stating number of bedrooms) within each development 
that would be allocated to Officers. For each unit identified, the plan 
must state the amount of rent that the Officer will pay and facts and 
circumstances (such as, the rent that would ordinarily be charged for 
the unit, the HA's annual maintenance cost for the unit, the degree of 
difficulty in attracting Officers to reside in the unit, the extent of 
the crime problem in the development, and the anticipated benefits of 
the Officer's presence) that demonstrate the reasonableness of that 
amount, as required under Sec. 960.509(a) of this subpart.
    (2) The plan must identify specifically the benefits to the 
community and to the HA that will result from the presence of Officers 
in each affected development.
    (3) The plan must describe the existing physical and social 
conditions in and around each affected development, providing specific 
evidence of criminal activity (such as, frequency of telephone calls to 
local police, number of arrests and types of offenses involved, and 
data on drug abuse in the community) in order to permit the Department 
to make an informed assessment of the level of need for increased 
security.
    (4) The plan must afford the Department a reasonable basis, which 
necessarily includes the certifications required under Sec. 960.507(b) 
of this part, for determining that the use by Officers of the 
identified dwelling units will:
    (i) Increase security for other public housing residents;
    (ii) Result in a limited loss of income to the HA; and
    (iii) Not result in a significant reduction of units available for 
residence by Eligible Families.
    (b) Certifications by HA. Only upon making the determination 
described in Sec. 960.507(a)(4) of this part will the Department 
approve a plan. Further, the Department will not make such a 
determination unless the plan contains a written statement, signed by 
an authorized officer or other agent of the HA, certifying that:
    (1) The dwelling units proposed to be allocated to Officers are 
situated so as to place the Officers in close physical proximity to 
other residents;
    (2) No resident families will have to be transferred to other 
dwelling units in order to make available the units proposed to be 
allocated to Officers;
    (3) The dwelling units proposed to be allocated to Officers will be 
rented under a lease that contains the terms described in Sec. 960.509 
of this part; and
    (4) The number of dwelling units proposed to be allocated to 
Officers under the plan does not exceed the limits set forth in 
Sec. 960.507(c) of this part or, in the alternative, any units so 
allocated in excess of the applicable maximum number are vacant units 
for which there are no Eligible Families. This certification on the 
part of the HA satisfies the requirements of Secs. 960.507(a)(4)(ii) 
and (iii) of this part.
    (c) Unit allocation table. For purposes of the certification 
required by Sec. 960.507(b)(4) of this part, the following table sets 
forth the maximum number of units to be allocated to Officers as a 
function of the total number of units under management by the HA: 

                         Unit Allocation Table                          
------------------------------------------------------------------------
                                                             Units to be
               Total units under management                   allocated 
------------------------------------------------------------------------
500-999....................................................            5
1000-4999..................................................           10
5000-9999..................................................           15
10,000+....................................................          20 
------------------------------------------------------------------------

    The maximum number of units to be allocated by HAs with less than 
500 units under management will be determined by the Field Office on a 
case by case basis.

(Approved by the Office of Management and Budget under OMB control 
number 2577-0185.)


Sec. 960.509  Special rent requirements and other terms and conditions.

    The HA shall lease units to Officers under a lease agreement that 
is consistent with the requirements of this section and 24 CFR part 
966. The requirements of this section shall take precedence if there is 
any inconsistency between them and 24 CFR part 966.
    (a) Reasonable rent. The lease shall provide for a reasonable rent, 
which may be a flat amount not related to the Officer's income. The HA 
should attempt to establish a rent that will provide an incentive to 
Officers to reside in the units but that is also consistent with the 
limited loss of income requirement of Sec. 960.507(a)(4)(ii) of this 
part. As required in Sec. 960.507(a)(1) of this part, the plan must 
state facts and circumstances (such as, the rent that would ordinarily 
be charged for the unit, the HA's annual maintenance cost for the unit, 
the degree of difficulty in attracting Officers to reside in the unit, 
the extent of the crime problem in the development, and the anticipated 
benefits of the Officer's presence) that demonstrate the reasonableness 
of the rent amount.
    (b) Continued employment. The lease shall provide that the 
Officer's right of occupancy is dependent on the continuation of the 
employment that qualified the Officer for residency in the development 
under the plan. The lease also shall provide that the Officer will move 
out of the leased unit within a reasonably prompt time, to be 
established by the lease, after termination of employment.


Sec. 960.511  Applicability of the annual contributions contract; 
effect on the Performance Funding System.

    (a) Annual contributions contract. Except to the extent that 
eligibility requirements are exempted under Sec. 960.505 of this part, 
public housing units occupied by Officers in accordance with a plan 
submitted and approved under this subpart will be subject to the terms 
and conditions of the annual contributions contract (ACC) between the 
HA and the United States of America. This subpart does not override any 
of the terms and conditions of the ACC except insofar as they are 
inconsistent with the provisions of this subpart.
    (b) Performance funding system. For purposes of the operating 
subsidy under the Performance Funding System (PFS) described in part 
990, subpart A of this chapter, dwelling units allocated to Officers in 
accordance with this subpart are excluded from the total unit months 
available, as defined in Sec. 990.102 of this chapter. Also for 
purposes of the operating subsidy under the PFS, the full amount of any 
rent paid by Officers in accordance with this subpart is included in 
other income, as defined in Sec. 990.102 of this chapter. HAs may 
receive operating subsidy for one unit per housing development to 
promote economic self-sufficiency services or anti-drug programs, 
including housing police officers and security personnel. An HA may 
request consideration of such units in its calculation of operating 
subsidy eligibility through the appropriate local HUD Office.

    Date: July 20, 1994.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 94-18692 Filed 8-1-94; 8:45 am]
BILLING CODE 4210-33-P