[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20866]
[[Page Unknown]]
[Federal Register: August 26, 1994]
_______________________________________________________________________
Part IV
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Secretary
Office of Assistant Secretary
_______________________________________________________________________
24 CFR Parts 58 and 92
HOME Investment Partnerships Program and Amendment to NOFA for FY 1994
for Indian Applicants Under the HOME Program; Interim Rule and Notice
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
24 CFR Parts 58 and 92
[Docket No. R-94-1735; FR-3716-I-01]
RIN 2501-AB77
HOME Investment Partnerships Program
AGENCY: Office of the Secretary, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule amends the existing interim rule for the
HOME Investment Partnerships Program by making it conform with program
changes enacted in the Multifamily Housing Property Disposition Reform
Act of 1994 and by making a number of additional clarifying changes.
DATES: Effective date: September 26, 1994, except amendments to part 92
effective October 26, 1994 through June 30, 1995.
Comments due date: Comments on this interim rule must be submitted
on or before October 25, 1994.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim rule to the Rules Docket Clerk, Office of General Counsel,
Room 10276, Department of Housing and Urban Development, 451 Seventh
Street, S.W., Washington, D.C. 20410. Communications should refer to
the above docket number and title. A copy of each communication
submitted will be available for public inspection and copying between
7:30 a.m. and 5:30 p.m. weekdays at the above address. FAXED comments
will not be accepted.
FOR FURTHER INFORMATION CONTACT: Mary Kolesar, Director, Program Policy
Division, Office of Affordable Housing Programs, 451 Seventh Street,
S.W., Washington, D.C. 20410, telephone (202) 708-2470, TDD (202) 708-
2565. (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION:
I. Paperwork Reduction Act Statement
The information collection requirements for the HOME Investment
Partnerships Program 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 2501-0013. This
interim rule does not contain additional information collection
requirements.
II. Background
The HOME Investment Partnerships Program (HOME) was enacted under
title II (42 U.S.C. 12701-12839) of the Cranston-Gonzalez National
Affordable Housing Act (NAHA) (Pub. L. 101-625, approved November 28,
1990). Implementing regulations for the HOME Program are at 24 CFR part
92.
The Housing and Community Development Act of 1992 (HCDA 1992) (Pub.
L. 102-550, approved October 28, 1992) included a substantial number of
amendments to the HOME program. These amendments were implemented in
rules published on December 22, 1992 (57 FR 60960), June 23, 1993 (58
FR 34130), and April 19, 1994 (59 FR 18626).
The Multifamily Housing Property Disposition Reform Act of 1994
(MHPDRA) (Pub. L. 102-233, approved April 11, 1994) included an
additional number of amendments to the HOME Program. The following
discussion, arranged according to the sequence of the MHPDRA sections,
summarizes the changes made to the HOME program regulation in this
interim rule.
Section 201 of MHPDRA amends section 104(2) of NAHA to allow
governors to designate State agencies or instrumentalities of the State
(e.g., housing finance agencies or housing authorities) to administer
HOME Program funds. Prior to this change, a subrecipient agreement was
required between the State and its instrumentality to administer the
HOME funds. This amendment provides greater flexibility to designate
such an organization to run the program and the definition of State in
Sec. 92.2 is amended accordingly.
Section 202 of MHPDRA amends section 214(1) of NAHA which required
that at least 90 percent of the HOME funds invested in rental housing
be for units occupied by families below 60 percent of median income.
This amendment changes the requirement to say that at least 90 percent
of the units assisted, and in the case of tenant-based rental
assistance, the families assisted be below 60 percent of median income.
This amendment, as implemented through Sec. 92.216, will simplify the
targeting requirement since it is easier to count units than funds
invested.
Section 203 of MHPDRA amends section 215(b) of NAHA in two ways.
The first change is the elimination of the ``first-time'' designation
for homebuyers. The HCDA 1992 amendment broadened the eligibility of
``first-time'' homebuyers to include almost all low-income homebuyers.
By eliminating the designation, participating jurisdictions will not
have to document the statutory category under which income-eligible
homebuyers qualify. The change will also conform the HOME Program to
the CDBG Program, which does not restrict homebuyer assistance to
first-time homebuyers.
The second change would permit participating jurisdictions to use
funds recaptured from the sale of homebuyer units for any eligible HOME
cost. The provision formerly limited the use of the recaptured funds to
assistance for additional first-time homebuyers. This change will
effect the use of current and future recaptured funds. Conforming
changes have been made to Secs. 92.2, 92.61(b)(4), 92.150(b)(4),
92.205(a)(1), 92.206(b), 92.214(a)(7), 92.254(a), and 92.354 to
implement the new homebuyer requirements.
Section 204 of MHPDRA amends section 220(a) of NAHA to effect a
flat 25 percent match on all funds drawn down for HOME projects or
tenant-based rental assistance. This provision eliminates the 30
percent match of funds drawn down for new construction. This new, lower
match rate will be applied to all Fiscal Year 1993 funds currently
expended or future year funds drawn down for eligible HOME activities,
and Sec. 92.218 has been changed accordingly.
The new environmental provisions make three amendments to section
288 of NAHA which are implemented for the HOME Program by Sec. 92.352,
for Subpart M--HOME Funds for Indian Tribes at Sec. 92.633, and also by
revisions to HUD regulations in 24 CFR part 58, which govern the
assumption of environmental responsibilities by recipients under the
HOME program and other programs with similar statutory authority for
recipient environmental reviews. The first amendment provides for
assumption of HUD's environmental review responsibilities by all
jurisdictions receiving assistance under the HOME Program, not just
participating jurisdictions, as well as Indian tribes and insular
areas.
The second amendment to Section 288 makes HOME environmental review
procedures consistent with the procedures under the Community
Development Block Grant and McKinney Act homeless assistance programs
with regard to States' responsibilities. Where a State makes funds
available to a unit of general local government, the State would
perform the release of funds function otherwise performed by HUD, and
local governments would assume the responsibility for performing
environmental reviews. To the extent that the State would be using the
HOME funds directly, HUD would approve the request for release of
funds.
Third, a new paragraph, Sec. 58.77(d), is added to part 58, which
adds the new statutory provisions for monitoring, training, and
termination or suspension of assumption of review responsibilities.
The amendments to 24 CFR part 58 in this interim rule contain
changes consistent with the above changes in part 92. In addition,
Section 305 of MHPDRA amends Section 1011 of the HCDA 1992 to provide
that for purposes of environmental review, decisionmaking and action,
certain grants for lead-based paint hazard reduction and abatement
shall be treated as assistance under the HOME Investment Partnership
Act and shall be subject to HUD's regulations implementing section 288
of that Act. In other words, recipients of these lead-based paint
grants will assume environmental responsibilities to the same extent as
recipients under the HOME program and will be subject to 24 CFR part
58. The grants covered by this provision are lead-based paint hazard
reduction grants under section 1011, as well as grants to States and
units of general local government for abatement of lead-based paint and
lead dust hazards pursuant to title II of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1992 (approved October 28, 1991, Pub. L. 102-139),
(92 App. Act). Accordingly, Sec. 58.1(c) is amended to reflect the
applicability of part 58 to these lead-based paint grants.
Section 208 of MHPDRA creates a new section 290 of NAHA which
permits the Secretary to waive certain statutory provisions for PJs
that are in federally-declared disaster areas under title IV of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act and
that will be using HOME funds to address damage. However, the Secretary
may not waive requirements related to public notice of funding
availability, nondiscrimination, fair housing, labor standards,
environmental standards and low-income housing affordability. With
regard to low-income housing affordability, projects must meet the
occupancy rent and periods of affordability provisions outlined in
Secs. 92.252 and 92.254. It is the Department's intent to provide
waivers on other HOME requirements based on the circumstances of a
particular disaster, tailoring the waivers to the needs of the
participating jurisdiction.
The Department is making a technical correction to
Sec. 92.211(a)(2) to reflect the 1992 amendments to the Section
6(c)(4)(A) of the Housing Act of 1937. Selection policies and criteria
for a tenant-based rental assistance program funded by HOME are
considered reasonably related to the Federal preference rules if, at
least, 50% of the families would meet the Federal preferences. The
change reduces the proportion of families required to meet the Federal
preferences from 70% to 50%.
The Department is amending Sec. 92.254(a) to include the
requirement that homeownership under a lease-purchase agreement, in
conjunction with a homebuyer program, must occur within 36 months. This
addition serves to integrate policy guidance enunciated previously to
the field into the rule. The Department believes that 36 months should
be ample time for a homebuyer to resolve any outstanding credit
problems, to complete homeowner education courses, or build up
sufficient equity for homeownership (especially since HOME funds can be
used for down-payment assistance). Lease-purchase arrangements in
connection with homebuyer programs are not subject to the same
occupancy and rental restrictions as are HOME rental projects and,
therefore, the Department is concerned that any longer lease period
would be contrary to the statutory requirements governing HOME rental
projects. The Department would appreciate any comment regarding this
regulatory amendment, whether the 36 month period is too long or not
long enough or whether the time period should be determined by the PJ.
The HOME Program regulations published April 19, 1994 made a change
to Sec. 92.252(a)(2) designed to prevent ``Low HOME Rents,'' as
calculated, to be higher than ``High HOME Rents'' as a result of fair
market rents in some regions. The change was made to correct this
problem by indicating that if the low HOME rents were higher than the
high HOME rents that the figure for the lower rent would be used for
all HOME units. That change, however, has been interpreted as limiting
the method for calculation of low HOME rents, which was not intended.
Revisions have been made to Sec. 92.252(a)(2)(iii) to clarify this
point.
This interim rule also makes clarifying changes to three cross-
cutting program provisions in the HOME rule. First, this interim rule
amends Sec. 92.257, ``Religious organizations,'' to remove a reference
relating to control of wholly secular entities established by
``primarily religious organizations'' to rehabilitate or construct
housing which will therefore not be owned by such primarily religious
organizations. The Department recognizes the important role served by
religious groups in providing lower income housing. This change
conforms the rule to the same principles and tests applied in the
Community Development Block Grant regulations at Sec. 570.200(j) and in
the section 202 program for elderly housing assistance. This
clarification is intended to indicate the availability of no lesser
role in the HOME program for entities established by a ``primarily
religious organization,'' a term equivalent to what the United States
Supreme Court describes as a ``pervasively sectarian institution,'' one
in which ``religion is so pervasive that a substantial portion of its
functions are subsumed in the religious mission.'' Hunt v. McNair, 413
U.S. 734, 743 (1973).
Second, this interim rule revises Sec. 92.353(e) to set out the
requirement that HOME participating jurisdictions must comply with the
requirements of a Residential Antidisplacement and Relocation
Assistance Plan (Plan). The change reflects a statutory amendment to
the Comprehensive Housing Affordability Strategy made by Section 220(b)
of the Housing and Community Development Act of 1992. A participating
jurisdiction with a Community Development Block Grant (CDBG) must
follow a Plan identical to its CDBG Plan. A participating jurisdiction
that is not a CDBG grantee must follow a Plan that meets the
requirements of the applicable CDBG regulation (24 CFR 570.606(c) for a
local jurisdiction and Sec. 570.488(c) for States). A certification
requirement related to this provision is also added to
Sec. 92.10(c)(4). On July 1, 1994, HUD published a proposed rule at 24
CFR part 43 (59 FR 34300) describing proposed changes to Plan
requirements. The deadline for public comments was August 1, 1994.
Finally, this interim rule also amends Sec. 92.354(a)(2), regarding
Davis-Bacon Act applicability. The change is intended to make clear
that construction contracts covering 12 or more units, disregarding the
number of projects involved, are subject to Davis-Bacon requirements.
Also, dividing a single project into multiple construction contracts
for purposes of avoiding Davis-Bacon requirements is not permitted.
III. Findings and Certifications
Justification for Interim Rulemaking
The Department has determined that this interim rule should be
adopted without the delay occasioned by requiring prior notice and
comment. This interim rule simply constitutes the implementation of
statutory language with the exercise of little or no discretion on the
part of the Department and makes a number of clarifying changes to
existing provisons. As such, prior notice and comment are unnecessary
under 24 CFR Part 10. This rule is being published as an interim rule
and not as a final rule because the HOME program regulation at 24 CFR
part 92 has not yet been issued as a final rule.
Environmental Review
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 of No Significant Impact is available for
public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the
Office of the Rules Docket Clerk.
Regulatory Planning and Review
This interim rule has been reviewed and approved in accordance with
Executive Order 12866, issued by the President on September 30, 1993
(58 FR 51735, October 4, 1993). Any changes to the interim rule
resulting from this review are available for public inspection between
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket
Clerk.
Impact on Small Entities
In accordance with the Regulatory Flexibility Act (5 U.S.C.
605(b)), the undersigned hereby certifies that this interim rule does
not have a significant economic impact on a substantial number of small
entities, because jurisdictions that are statutorily eligible to
receive formula allocations are relatively larger cities, counties or
States.
Regulatory Agenda
This interim rule was not listed in the Department's Semiannual
Agenda of Regulations published on April 25, 1994 (59 FR 20424) under
Executive Order 12866 and the Regulatory Flexibility Act.
Federalism Impact
The General Counsel has determined, as the Designated Official for
HUD under section 6(a) of Executive Order 12612, Federalism, that this
interim rule does not have federalism implications concerning the
division of local, State, and federal responsibilities. While the HOME
Program interim rule amended by this interim rule was determined to be
a rule with federalism implications and the Department submitted a
Federalism Assessment concerning the interim rule to OMB, this amending
rule only makes limited adjustments to the interim rule and does not
significantly affect any of the factors considered in the Federalism
Assessment for the interim rule.
Impact on the Family
The General Counsel, as the designated official under Executive
Order 12606, The Family, has determined that this interim rule would
not have significant impact on family formation, maintenance, and
general well-being. Assistance provided under this interim rule can be
expected to support family values, by helping families achieve security
and independence; by enabling them to live in decent, safe, and
sanitary housing; and by giving them the means to live independently in
mainstream American society. This interim rule would not, however,
affect the institution of the family, which is requisite to coverage by
the Order. Even if this interim rule had the necessary family impact,
it would not be subject to further review under the Order, since the
provision of assistance under this interim rule is required by statute,
and is not subject to agency discretion.
The Catalog of Federal Domestic Assistance Number for the HOME
Program is 14.239.
List of Subjects
24 CFR Part 58
Environmental protection, Community development block grants,
Environmental impact statements, Grant programs--housing and community
development, Reporting and recordkeeping requirements.
24 CFR Part 92
Administrative practice and procedure, Grant programs--housing and
community development, Grant programs--Indians, Indians, Low and
moderate income housing, Manufactured homes, Rent subsidies, Reporting
and recordkeeping requirements.
Accordingly, the Department amends parts 58 and 92 of title 24 of
the Code of Federal Regulations as follows:
PART 58--ENVIRONMENTAL REVIEW PROCEDURES FOR RECIPIENTS ASSUMING
HUD RESPONSIBILITIES
1. The authority citation for part 58 is revised to read as
follows:
Authority: 42 U.S.C. 1437o(i)(1) and (2), 3535(d), 4332, 4852,
5304(g), 11402, and 12838.
2. Section 58.1 is amended by:
a. Revising the second sentence in the introductory text of
paragraph (c);
b. Removing the word ``and'' at the end of paragraph (c)(3);
c. Removing the period at the end of paragraph (c)(4) and adding
``; and'' ; and
d. Adding a new paragraph (c)(5), to read as follows:
Sec. 58.1 Purpose, scope and applicability.
* * * * *
(c) Applicability. * * * Programs and activities subject to this
part include:
* * * * *
(5) Grants to States and units of general local government for
abatement of lead-based paint and lead dust hazards pursuant to title
II of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1992, and
grants for lead-based paint hazard reduction under Section 1011 of the
Housing and Community Development Act of 1992, in accordance with
section 1011(o) (42 U.S.C. 4852(o)).
3. In Sec. 58.2, paragraph (a)(4) is revised to read as follows:
Sec. 58.2 Terms, abbreviations and definitions.
(a) * * *
(4) Recipient means:
(i) A State that does not distribute HUD assistance under the
program to a unit of general local government;
(ii) Guam, the Northern Mariana Islands, the Virgin Islands,
American Samoa, the Trust Territory of the Pacific Islands;
(iii) A unit of general local government; or
(iv) An Indian tribe.
* * * * *
4. In Sec. 58.4, the second sentence of paragraph (c)(1) is revised
to read as follows:
Sec. 58.4 HUD legal authority.
* * * * *
(c) * * *
(1) * * * The State must submit the certification and RROF to HUD.
* * * * *
5. In Sec. 58.77, a new paragraph (d) is added to read as follows:
Sec. 58.77 Effect of approval of certification.
* * * * *
(d) Responsibility for monitoring and training. (1) At least once
every three years, HUD intends to conduct in-depth monitoring of the
environmental activities performed by recipients that have assumed
responsibilities for environmental review, decisionmaking, and action
under this part. Limited monitoring of these environmental activities
will be conducted during each program monitoring site visit. If through
limited or in-depth monitoring of these environmental activities or by
other means, HUD becomes aware of any environmental deficiencies, HUD
may take one or more of the following actions:
(i) In the case of problems found during limited monitoring, HUD
may schedule in-depth monitoring at an earlier date or may schedule in-
depth monitoring more frequently;
(ii) HUD may require attendance by recipient staff at HUD sponsored
or approved training, which will be provided periodically at various
locations around the country;
(iii) HUD may refuse to accept the certifications of environmental
compliance on subsequent grants;
(iv) HUD may suspend or terminate the recipient's assumption of the
environmental review responsibility;
(v) HUD may initiate sanctions, corrective actions or other
remedies provided in program regulations or agreements or contracts
with the recipient.
(2) HUD's responsibilities and action under paragraph (d)(1) of
this section shall not be construed to limit or reduce any
responsibility assumed by a recipient with respect to any particular
release of funds under this part. Whether or not HUD takes action under
paragraph (d)(1) of this section, the Certifying Officer remains the
responsible Federal official under Sec. 58.17 with respect to projects
and activities for which the Certifying Officer has submitted a RROF
and certification under this part.
PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM
6. The authority citation for part 92 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 12701-12839.
7. In Sec. 92.2, the definition of ``First-time homebuyer'' is
removed, and the definition of ``State'' is revised to read as follows:
Sec. 92.2 Definitions.
* * * * *
State means any State of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or any agency or
instrumentality thereof that is established pursuant to legislation and
designated by the chief executive officer to act on behalf of the State
with regard to the provisions of this part.
* * * * *
8. Section 92.4 is redesignated Sec. 92.5, and a new Sec. 92.4 is
added to read as follows:
Sec. 92.4 Suspension of requirements for disaster areas.
The Secretary may suspend any HOME statutory requirements (except
for those related to public notice of funding availability,
nondiscrimination, fair housing, labor standards, environmental
standards, and low-income housing affordability) or regulatory
requirements, for HOME funds designated by a recipient to address the
damage in an area for which a disaster is declared under title IV of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
9. In Sec. 92.61, paragraph (b)(4) is revised to read as follows:
Sec. 92.61 Program description and housing strategy.
* * * * *
(b) * * *
(4) If the insular area intends to use HOME funds for homebuyers,
the guidelines for resale or recapture as required in
Sec. 92.254(a)(4);
* * * * *
10. In Sec. 92.150, paragraphs (b)(5) and (c)(4) are revised to
read as follows:
Sec. 92.150 Submission of program description and certifications.
* * * * *
(b) * * *
(5) If the participating jurisdiction intends to use HOME funds for
homebuyers, the guidelines for resale or recapture must be described as
required in Sec. 92.254(a)(4);
* * * * *
(c) * * *
(4) A certification that the participating jurisdiction:
(i) Is following a Residential Antidisplacement and Relocation
Assistance Plan as described in Sec. 92.353(e);
(ii) Will comply with the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 and implementing regulations
at 49 CFR part 24; and
(iii) Will comply with the requirements in Sec. 92.353.
* * * * *
11. In Sec. 92.205, paragraph (a)(1) is revised to read as follows:
Sec. 92.205 Eligible activities: General.
(a) * * *
(1) HOME funds may be used by a participating jurisdiction to
provide incentives to develop and support affordable rental housing and
homeownership affordability through the acquisition (including
assistance to homebuyers), new construction, reconstruction, or
moderate or substantial rehabilitation of non-luxury housing with
suitable amenities, including real property acquisition, site
improvements, conversion, demolition, and other expenses, including
financing costs, relocation expenses of any displaced persons,
families, businesses, or organizations, to provide tenant-based rental
assistance, including security deposits; to provide payment of
reasonable administrative and planning costs; and to provide for the
payment of operating expenses of community housing development
organizations. The housing must be permanent or transitional housing,
and includes permanent housing for disabled homeless persons, and
single-room occupancy housing. The specific eligible costs for these
activities are set forth in Secs. 92.206 through 92.209.
* * * * *
12. In Sec. 92.206, paragraph (b) is revised to read as follows:
Sec. 92.206 Eligible costs.
* * * * *
(b) Acquisition costs. Costs of acquiring improved or unimproved
real property, including acquisition by homebuyers.
* * * * *
13. In Sec. 92.211, paragraph (a)(2) is revised to read as follows:
Sec. 92.211 Tenant-based rental assistance.
(a) * * *
(2) The participating jurisdiction selects families in accordance
with written tenant selection policies and criteria that are consistent
with the purposes of providing housing to very low- and low-income
families and are reasonably related to preference rules established
under section 6(c)(4)(A) of the Housing Act of 1937 (42 U.S.C. 1437 et
seq.). Selection policies and criteria meet the ``reasonably related''
requirement if at least 50% of the families assisted qualify, or would
qualify in the near future without tenant-based rental assistance, for
one of the three Federal preferences under section 6(c)(4)(A) of the
Housing Act of 1937. These are families that occupy substandard housing
(including families that are homeless or living in a shelter for
homeless families); families that are paying more than 50 percent of
(gross) family income for rent; or families that are involuntarily
displaced. The participating jurisdiction may select low-income
families currently residing in units that are designated for
rehabilitation or acquisition under the participating jurisdiction's
HOME program without requiring that the family meet the written tenant
selection policies and criteria. Families so selected may use the
tenant-based assistance in the rehabilitation or acquired unit or in
other qualified housing.
* * * * *
14. In Sec. 92.214, paragraph (a)(7) is revised to read as follows:
Sec. 92.214 Prohibited activities.
(a) * * *
(7) Provide assistance (other than tenant-based rental assistance
or assistance to a homebuyer to acquire housing previously assisted
with HOME funds) to a project previously assisted with HOME funds
during the period of affordability established by the participating
jurisdiction under Sec. 92.502 or Sec. 92.504. However, additional HOME
funds may be committed to a project up to one year after project
completion (see Sec. 92.502), but the amount of HOME funds in the
project may not exceed the maximum per-unit subsidy amount established
under Sec. 92.250.
* * * * *
15. In Sec. 92.216, paragraphs (a)(1) and (a)(2) are revised to
read as follows:
Sec. 92.216 Income targeting: Tenant-based rental assistance and
rental units--Initial eligibility determination and reexamination.
(a) * * *
(1) Not less than 90 percent of:
(i) The families receiving such rental assistance are families
whose annual incomes do not exceed 60 percent of the median family
income for the area, as determined and made available by HUD with
adjustments for smaller and larger families (except that HUD may
establish income ceilings higher or lower than 60 percent of the median
for the area on the basis of HUD's findings that such variations are
necessary because of prevailing levels of construction cost or fair
market rent, or unusually high or low family income) at the time of
occupancy or at the time funds are invested, whichever is later; or
(ii) The dwelling units assisted with such funds are occupied by
families having such incomes; and
(2) The remainder of:
(i) The families receiving such rental assistance are households
that qualify as low-income families (other than families described in
paragraph (a)(1) of this section) at the time of occupancy or at the
time funds are invested, whichever is later; or
(ii) The dwelling units assisted with such funds are occupied by
such households.
* * * * *
16. In Sec. 92.218, paragraph (a) is revised to read as follows:
Sec. 92.218 Amount of matching contribution.
(a) Each participating jurisdiction must make contributions to
housing that qualifies as affordable housing under the HOME program,
throughout a fiscal year. The contributions must total not less than 25
percent of the funds drawn from the jurisdiction's HOME Investment
Trust Fund Treasury account in that fiscal year.
* * * * *
17. In Sec. 92.252, paragraph (a)(2)(iii) is revised, to read as
follows:
Sec. 92.252 Qualification as affordable housing and income targeting:
Rental housing.
(a) * * *
(2) * * *
(iii) If the rent determined under this paragraph (a)(2) is higher
than the applicable rent under (a)(1) of this section, then the
applicable maximum rent for units under this paragraph would be that
calculated under (a)(1) of this section.
* * * * *
18. In Sec. 92.254, paragraphs (a)(3), (a)(4)(ii)(C) and
(a)(4)(ii)(D) are revised, to read as follows:
Sec. 92.254 Qualification as affordable housing: homeownership.
(a) * * *
(3) Is purchased within 36 months if a lease-purchase agreement in
conjunction with a homebuyer program is used to acquire the housing;
(4) * * *
(ii) * * *
(C) The HOME investment that is subject to recapture is the HOME
assistance that enabled the homebuyer to buy the dwelling unit. This
includes any HOME assistance, whether a direct subsidy to the homebuyer
or a construction or development subsidy, that reduced the purchase
price from fair market value to an affordable price. The recaptured
funds must be used to carry out HOME-eligible activities. If no HOME
funds will be subject to recapture, the provisions at
Sec. 92.254(a)(4)(i) apply.
(D) Upon recapture of the HOME funds used in a single-family,
homebuyer project with two to four units, the affordability period on
the rental units may be terminated at the discretion of the
participating jurisdiction.
* * * * *
19. Section 92.257 is revised to read as follows:
Sec. 92.257 Religious organizations.
HOME funds may not be provided to primarily religious
organizations, such as churches, for any activity including secular
activities. In addition, HOME funds may not be used to rehabilitate or
construct housing owned by primarily religious organizations or to
assist primarily religious organizations in acquiring housing. However,
HOME funds may be used by a secular entity to acquire housing from a
primarily religious organization, and a primarily religious entity may
transfer title to property to a wholly secular entity and the entity
may participate in the HOME program in accordance with the requirements
of this part. The entity may be an existing or newly established
entity, which may be an entity established by the religious
organization. The completed housing project must be used exclusively by
the owner entity for secular purposes, available to all persons
regardless of religion. In particular, there must be no religious or
membership criteria for tenants of the property.
20. In Sec. 92.352, paragraph (b) is revised to read as follows:
Sec. 92.352 Environmental review.
* * * * *
(b) Responsibility for review. (1) The jurisdiction (e.g., the
participating jurisdiction or state recipient) or insular area must
assume responsibility for environmental review, decisionmaking, and
action for each activity that it carries out with HOME funds, in
accordance with the requirements imposed on a recipient under 24 CFR
part 58. In accordance with 24 CFR part 58, the jurisdiction or insular
area must carry out the environmental review of an activity and obtain
approval of its request for release of funds before HOME funds are
committed for the activity.
(2) A state participating jurisdiction must also assume
responsibility for approval of requests for release of HOME funds
submitted by state recipients.
(3) HUD will perform the environmental review, in accordance with
24 CFR part 50, for a competitively awarded application for HOME funds
submitted to HUD by an entity that is not a jurisdiction.
21. In Sec. 92.353, paragraph (e) is revised to read as follows:
Sec. 92.353 Displacement, relocation, and acquisition.
* * * * *
(e) Residential antidisplacement and relocation assistance plan.
Each participating jurisdiction shall comply with the Residential
Antidisplacement and Relocation Assistance Plan requirements described
at 24 CFR 570.606(c), or, in the case of a State-administered HOME
Program, the requirements at 24 CFR 570.488(c). These policies require
one-for-one replacement of low/moderate-income housing demolished or
converted to another use and the provision of relocation assistance to
lower income persons displaced by such conversion or by demolition.
* * * * *
22. In Sec. 92.354, paragraph (a)(2) is revised to read as follows:
Sec. 92.354 Labor.
(a) * * *
(2) The contract for construction must contain these wage
provisions if HOME funds are used for any project costs (as defined in
Sec. 92.206), including construction or nonconstruction costs, of
housing with 12 or more HOME-assisted units. When HOME funds are only
used to assist homebuyers to acquire single-family housing, and not for
any other project costs, the wage provisions apply to the construction
of the housing if there is a written agreement with the owner or
developer of the housing that HOME funds will be used to assist
homebuyers to buy the housing and the construction contract covers 12
or more housing units to be purchased with HOME assistance. The wage
provisions apply to any construction contract that includes a total of
12 or more HOME-assisted units, whether one or more than one project is
covered by the construction contract. Once they are determined to be
applicable, the wage provisions must be contained in the construction
contract so as to cover all laborers and mechanics employed in the
development of the entire project, including portions other than the
assisted units. Arranging multiple construction contracts within a
single project for the purpose of avoiding the wage provisions is not
permitted.
* * * * *
23. Section 92.633 is revised to read as follows:
Sec. 92.633 Environmental review.
The Indian tribe must assume responsibility for environmental
review, decisionmaking, and action for each activity that it carries
out with HOME funds, in accordance with the requirements imposed on a
recipient under 24 CFR part 58. In accordance with 24 CFR part 58, the
Indian tribe must carry out the environmental review of an activity and
obtain approval of its request for release of funds before HOME funds
are committed for the activity.
Dated: August 18, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-20866 Filed 8-25-94; 8:45 am]
BILLING CODE 4210-32-P