[Federal Register Volume 60, Number 138 (Wednesday, July 19, 1995)]
[Rules and Regulations]
[Pages 36966-36967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17684]
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FEDERAL HOUSING FINANCE BOARD
12 CFR Parts 937 and 939
[No. 95-06]
Repeal of the Nondiscrimination in Federally Assisted Programs
and Housing Opportunity Allowance Program Regulations
AGENCY: Federal Housing Finance Board.
ACTION: Final rule.
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SUMMARY: The Federal Housing Finance Board (Board) is repealing two
regulations it has determined are no longer necessary. This is intended
to reduce excess regulation, eliminate obsolete regulations and avoid
any public confusion as to the nature of the Board's activities. The
two obsolete regulations relate to the housing opportunity allowance
program and nondiscrimination in federally assisted programs.
DATES: This final rule is effective on July 19, 1995.
FOR FURTHER INFORMATION CONTACT:
Brandon B. Straus, Attorney-Advisor, Office of General Counsel, (202)
408-2589, Federal Housing Finance Board, 1777 F Street, NW.,
Washington, DC 20006.
SUPPLEMENTARY INFORMATION:
I. Statutory And Regulatory Background
As a result of an ongoing internal review of its regulations, the
Board has identified parts 939 (Nondiscrimination in Federally Assisted
Programs) and 937 (Housing Opportunity Allowance Program) as obsolete,
for the reasons set forth below. Accordingly, in an effort to meet the
goals of the Regulatory Reinvention Initiative of the Vice President's
National Performance Review, the Board intends to repeal parts 937 and
939.
A. Part 937
Part 937 of the Board's regulations sets forth the Housing
Opportunity Allowance Program (HOAP). See 12 CFR part 937. The HOAP
initially appeared in part 527 of the regulations of the Board's
predecessor agency, the Federal Home Loan Bank Board (Bank Board). When
Congress abolished the Bank Board in 1989, See section 401 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989,
Pub. L. 101-73, 103 Stat. 183 (Aug. 9, 1989), (codified at 12 U.S.C.
1437 note), part 527 was redesignated as part 937 of the Board's
regulations. See 54 FR 36759 (Sept. 5, 1989).
The Bank Board established the HOAP to implement section 101 of the
Emergency Home Finance Act of 1970 (EHFA). See Pub. L. 91-351, sec.
101, 84 Stat. 450 (July 24, 1970) (codified at 12 U.S.C. 1430 note
(1988) (removed, 12 U.S.C. 1430 (Supp. IV 1992)). Section 101 of the
EHFA authorized the appropriation of $250 million, without fiscal year
limitation, to be used by the Bank Board for disbursement to the
Federal Home Loan Banks (Banks) for the purpose of adjusting the
effective interest rates on shorter, and long-term advances to members,
the proceeds of which were to be used to assist in providing housing
for low- and middle-income families. See EHFA sec. 101, 84 Stat. 450.
[[Page 36967]]
Since that time, however, the HOAP has ceased operations.
Applications for funds under the HOAP have not been accepted since
1978, see 43 FR 14508 (Apr. 6, 1978), and none of the Banks now is
involved with the HOAP. There have been no further congressional
appropriations for use by the HOAP, and the provisions of section 101
of the EHFA no longer appear in the most recent version of the United
States Code. See 12 U.S.C. 1430. Absent a statutory authorization and
funding mechanism or any ongoing program activity, the HOAP is,
effectively, non-existent.
B. Part 939
Part 939 of the Board's regulations generally prohibits
discrimination on the grounds of race, color, or national origin in
connection with any program or activity that receives federal financial
assistance from the Board. See 12 CFR 939.1. Part 939 initially was
promulgated as part 529 of the Bank Board's regulations. When Congress
abolished the Bank Board in 1989, part 529 was redesignated as part 939
of the Board's regulations. See 54 FR 36759 (Sept. 5, 1989).
The Bank Board initially issued the regulation that is now part 939
to implement the provisions of title VI of the Civil Rights Act of 1964
(title IV). See Pub. L. 88-352, tit. VI, secs. 601, 602, 78 Stat. 252
(July 2, 1964). Title VI requires federal agencies that are empowered
to extend federal financial assistance to any program or activity to
issue rules that ensure that no person in the United States shall, on
the ground of race, color, or national origin, be excluded from
participation in, be denied the benefits of, or subjected to
discrimination under any program or activity receiving federal
financial assistance. 42 U.S.C. 2000d, 2000d-1.
Part 939 requires applicants for federal financial assistance
provided by the Board to furnish assurances that they will comply with
the nondiscrimination requirement of part 939. See id. Sec. 939.5. Part
939 also sets forth procedures for effecting compliance with the
nondiscrimination requirement, including the collection of reports, the
conduct of investigations, and the holding of administrative hearings.
See id. Sec. 939.6-939.10.
Appendix A to part 939 lists the programs and activities to which
part 939 applies. See id. part 939, Appendix A. The only program or
activity listed in appendix A is the HOAP, which, as discussed
previously, no longer is in operation. Absent the HOAP, the Board
currently is not authorized to extend federal financial assistance to
any program or activity.
II. Analysis of the Final Rule
Since the HOAP is no longer an operating program and the Board does
not now extend federal financial assistance to any other programs or
activities, the Board is not required to maintain either part 937 or
part 939 as part of its regulations.
In fact, retaining parts 937 and 939 as Board regulations published
in the Code of Federal Regulations may cause confusion to the public,
because part 937 incorrectly indicates that the HOAP remains in
operation, and part 939 incorrectly implies that the Board extends
federal financial assistance to one or more of the programs or
activities it administers. Repeal of parts 937 and 939 will avoid any
potential confusion.
Repeal of these regulations also will be consistent with the goal
of the Vice President's National Performance Review to reduce the total
number of regulations of executive agencies. See Report of the National
Performance Review 32-33 (September 17, 1993); E.O. 12861, 58 FR 48255
(Sept. 14, 1993).
For the foregoing reasons, the Board has decided to repeal parts
937 and 939 of its regulations, pursuant to its general rulemaking
authority under section 2B(a)(1) of the Federal Home Loan Bank Act. See
12 U.S.C. 1422b(a)(1).
III. Notice and Public Participation
Publication of notice of a proposed rulemaking is not required by
the Administrative Procedure Act (APA), 5 U.S.C. 551 et seq., because
the Board for good cause finds that notice and comment procedure is
unnecessary and contrary to the public interest in this instance. See
id. section 553(b)(3)(B). Compliance with the public notice and comment
procedure requirement of APA section 553 is unnecessary because the
final rule repeals sections of the Board's regulations that no longer
have any effect on the public. Further, the Board believes that it is
in the public interest to repeal parts 937 and 939 as soon as possible
in order to avoid perpetuating the appearance that these provisions
continue to affect the public and the activities of the Board.
IV. Effective Date
The Board finds that under APA section 553(d)(3), there is good
cause that the final rule be effective upon publication for the reasons
stated in part III of the Supplementary Information.
V. Regulatory Flexibility Act
This final rule will not impose any regulatory requirements on
small entities, because it repeals provisions of the Board's
regulations. Therefore, in accordance with the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq., the Board hereby certifies that this final
rule, as promulgated, will not have a significant economic impact on a
substantial number of small entities.
List of Subjects
12 CFR Part 937
Federal home loan banks, Low and moderate income housing,
Mortgages, Reporting and recordkeeping requirements.
12 CFR Part 939
Administrative practice and procedure, Civil rights.
Accordingly and under the authority of 12 U.S.C. 1422b(a)(1),
chapter IX, title 12, Code of Federal Regulations is hereby amended as
follows:
PART 937--[REMOVED]
1. Part 937 is removed.
PART 939--[REMOVED]
2. Part 939 is removed.
Dated: July 13, 1995.
By the Federal Housing Finance Board.
Bruce A. Morrison,
Chairman.
[FR Doc. 95-17684 Filed 7-18-95; 8:45 am]
BILLING CODE 6725-01-M