[Federal Register Volume 59, Number 187 (Wednesday, September 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23925]


[Federal Register: September 28, 1994]


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DEPARTMENT OF AGRICULTURE
Farmers Home Administration

7 CFR Part 1944


Cost Containment and Vulnerability--Corrections

Agency: Farmers Home Administration, USDA.

Action: Final rule; correction.

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Summary: The Farmers Home Administration (FmHA) corrects errors on the 
final rule published on February 14, 1994 (59 FR 6869-6897) concerning 
cost containment. The intended effect of this action is to correct 
errors in the final rule.

Effective Date: September 28, 1994.

For Further Information Contact: Gail McCowan, Rural Rental Housing 
Branch, Multi-Family Housing Processing Division, Farmers Home 
Administration, USDA, room 5337, South Agriculture Building, 
Washington, DC 20250, telephone (202) 720-1623.

Supplementary Information: FmHA published its final rule on February 
14, 1994 (59 FR 6869) which encompassed numerous additions and changes 
intended to reduce fraud, waste, and abuse in the Section 515 program, 
as well as to reduce costs associated with construction and related 
amentities.
    (1) FmHA inadvertently included dishwashers as an acceptable 
feature in elderly unit design. Dishwashers are acceptable only for 
central kitchens in congregate and group home projects. As stated, 
allowing dishwashers in elderly projects when they are not even 
acceptable in individual congregate living units is contradictory and 
will lead to higher construction costs. The results of this error would 
significantly conflict with the Agency's current emphasis on cost 
containment.
    (2) A discrepancy exists in the language of Exhibit A-8 between the 
introductory page and paragraph IV Housing demand forecasts. The word 
``person'' referred to in ``Persons Living in Substandard Rental 
Units'' and ``Persons Experiencing Rent Overburden'' outlined in 
paragraph IV should read ``Households'' as outlined in the introductory 
page. In addition, paragraph IV Housing demand forecast requires the 
market analyst to subtract ``Comparable Rental Units'' from the overall 
demand figure. These words were erroneously included in the housing 
demand calculation and are being removed to prevent miscalculation of 
housing need and demand.

List of Subjects in 7 CFR Part 1944

    Administrative practice and procedure, Low- and moderate-income 
housing--rental, Rural housing.

    Accordingly, the final rule published on February 14, 1994 (59 FR 
6869) amending Chapter XVIII, Title 7, Code of Federal Regulations, is 
corrected as follows:

PART 1944--HOUSING

    1. The authority citation for part 1944 continues to read as 
follows:

    Authority: 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR 2.23; 7 CFR 2.70.

Subpart E--Rural Rental and Rural Cooperative Housing Loan 
Policies, Procedures, and Authorizations

    2. Section 1944.215 is corrected by revising paragraph (a)(13) to 
read as follows:


Sec. 1944.215  Special conditions.

    (a) * * *
    (13) The following is a list of allowable amenities according to 
the type of units: 

----------------------------------------------------------------------------------------------------------------
                                                        Family          Elderly       Congregate     Group home 
----------------------------------------------------------------------------------------------------------------
Active outdoor recreation.........................  Yes...........  No............  No............  Yes.        
Carpet............................................  Yes...........  Yes...........  Yes...........  Yes.        
Central laundry facilities........................  Yes...........  Yes...........  Yes...........  Yes.        
Community rooms...................................  No............  Yes...........  Yes...........  Yes.        
Dishwashers.......................................  No............  No............  Yes\1\........  \1\Yes.     
Drapes/blinds/shades..............................  Yes...........  Yes...........  Yes...........  Yes.        
Elevators for 2-story elderly.....................  No............  Yes...........  Yes...........  No.         
Garbage disposals.................................  No............  No............  Yes\1\........  \1\Yes.     
Lawn sprinklers--financing will depend on                                                                       
 geographic area.                                                                                               
----------------------------------------------------------------------------------------------------------------
\1\In central kitchens only.                                                                                    

* * * * *
    3. In Exhibit A-8 of subpart E, paragraph IV is corrected to read 
as follows:
Exhibit A-8 of Subpart E--Outline of Professional Market Study
* * * * *

IV. Housing Demand Forecasts

    The analyst must give a projection of the housing needs for a 
specified forecast period. The information should include the following 
as a minimum: 

------------------------------------------------------------------------
                                                             Market area
               Sources of demand                Town renter     renter  
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New Households (from the most recent census                             
 year plus 2-year projection).................     ________     ________
.20 of Households in Substandard Rental Units.    +________    +________
Plus Demolition of Rental Stock...............    +________    +________
.20 of Households Experiencing Rent Overburden    +________    +________
Plus Vacancy (.05 of New Household Growth)....    +________    +________
Total demand..................................     ________     ________
Number of Total Demand Determined Income                                
 Eligible (tax credit eligible, if applicable)     ________     ________
Less Number of Units in Planning Stage (FmHA/                           
 HUD).........................................    -________    -________
Net Demand....................................     ________     ________
------------------------------------------------------------------------

    If a penetration percentage is used in the study analysis, explain 
how that particular percentage was chosen.

                       Recommended Number by Unit                       
------------------------------------------------------------------------
              Size                   One       Two      Three     Four  
------------------------------------------------------------------------
                                   ______    ______    ______    ______ 
------------------------------------------------------------------------

    Names and positions of individuals in the community who provided 
information for the study:

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    Dated: August 31, 1994.
Bob J. Nash,
Under Secretary for Small Community and Rural Development.
[FR Doc. 94-23925 Filed 9-27-94; 8:45 am]
BILLING CODE 3410-07-U