[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