[Federal Register Volume 60, Number 219 (Tuesday, November 14, 1995)]
[Rules and Regulations]
[Pages 57304-57305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28033]



      

[[Page 57303]]

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Part III





Department of Housing and Urban Development





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24 CFR Parts 950 and 990



Public and Indian Housing; Performance Funding System: Unit Months 
Available; Final Rule

  Federal Register / Vol. 60, No. 219 / Tuesday, November 14, 1995 / 
Rules and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Parts 950 and 990

[Docket No. FR-3747-F-02]
RIN 2577-AB49


Performance Funding System: Unit Months Available

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

ACTION: Final rule.

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SUMMARY: The Department is revising the Performance Funding System to 
permit payment of operating subsidies for scattered-site units as they 
become occupied.

EFFECTIVE DATE: December 14, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. John T. Comerford, Director, 
Financial Management Division, Office of Management Operations, Public 
and Indian Housing, Room 4212, Department of Housing and Urban 
Development, 451 Seventh Street SW., Washington, DC 20410, telephone 
(202) 708-1872; or with respect to the Indian Housing programs, Ms. 
Joann A. Teiken, Financial Management Specialist, Office of Native 
American Programs, Public and Indian Housing, Room B-133, Department of 
Housing and Urban Development, 451 Seventh Street SW., Washington, DC 
20410, telephone (202) 708-2980. Hearing or speech impaired individuals 
may call HUD's TDD number, (202) 708-0850. (These telephone numbers are 
not toll-free.)

SUPPLEMENTARY INFORMATION: On May 9, 1995 (60 FR 24597), the Department 
published a proposed rule which would revise the definition of unit 
months available (Secs. 950.102 and 990.102) and provide an explanation 
of the alternate method for calculating unit months available upon 
acquisition of units in a scattered-site project (Secs. 950.705 and 
990.104(b)). The change in procedure would be applicable to scattered-
site developments acquired by Indian Housing Authorities.
    Only five public comments were received. All supported the 
Department's proposed rule. However, one commenter requested a 
clarification of the regulatory reference to amending the Development 
Cost Budget to reflect units occupied in the previous six months. The 
commenter asked: ``Does the PHA claim the unit months available through 
an amendment every six months until all units are occupied, do we 
project the occupancy when the annual budget is proposed or can this be 
a year-end adjustment item?''
    The Department will not permit revisions to the Department Cost 
Budget or to the calculation of operating subsidy based on projections. 
The regulations state that the development budget revision will reflect 
the number of units that were occupied and that subsidy shall be 
revised to include units that are actually occupied. The reference to 
previous six months in the regulations is intended to ensure that 
revisions are not processed more often than once every six months. The 
rule does not require housing authorities to request these revisions 
and the Department would certainly allow housing agencies to submit a 
revision that reflects activity for the previous twelve months at the 
end of the year.

Findings and Certifications

Environmental Impact

    The subject matter of this final rule is categorically excluded 
from HUD's environmental clearance procedures under 24 CFR 50.20(k). It 
relates to internal administrative procedures whose content does not 
constitute a development decision or affect the physical condition of 
project areas or building sites.

Executive Order 12866

    The Office of Management and Budget reviewed this final rule under 
Executive Order 12866, Regulatory Planning and Review. Any changes made 
to the rule as a result of that review are clearly identified in the 
docket file, which is available for public inspection at the Office of 
General Counsel, room 10276, Department and Housing and Urban 
Development, 451 Seventh Street SW., Washington, DC 20410-0500.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this final rule before publication and by 
approving it certifies that this final rule does not have a significant 
economic impact on substantial number of small entities. The final rule 
will recognize that homes that are part of scattered-site developments 
become ready for occupancy at varying times, and removes a potential 
penalty to housing authorities who would otherwise have to wait for all 
units in a scattered-site development to be occupied before they can 
receive subsidy.

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 final rule would not have federalism implications 
and, thus, are not subject to review under the Order. The final rule 
refines an established formula under which HUD calculates operating 
subsidies for low-income housing developments, but contains no 
requirement for explicit action by local officials and does not 
interfere with State or local governmental functions.

Executive Order 12606

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this final rule does not 
have potential significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
Order. No significant change in existing HUD policies or programs will 
result from promulgation of this final rule, as those policies and 
programs relate to family concerns.
    The Catalog of Federal Domestic Assistance number is 14.850.

List of Subjects

24 CFR Part 950

    Aged, Grant programs--housing and community development, Grant 
programs--Indians, Indians, Individuals with disabilities, Low and 
moderate income housing, Public housing, Reporting and recordkeeping 
requirements.

24 CFR Part 990

    Grant programs--housing and community development, Public housing, 
Reporting and recordkeeping requirements.

    Accordingly, in title 24 of the Code of Federal Regulations, parts 
950 and 990 are amended, as follows:

PART 950--INDIAN HOUSING PROGRAMS

    1. The authority citation for part 950 continues to read as 
follows:

    Authority: 25 U.S.C. 450e(b), 1437aa-1437ee, and 3535(d).

    2. Section 950.102 is amended by revising the definition of ``Unit 
months available'' to read as follows:


Sec. 950.102  Definitions.

* * * * *
    Unit months available. Units multiplied by the number of months the 
project units are available for occupancy during a given IHA fiscal 
year. See also Sec. 950.705(b).
* * * * * 

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    3. The existing text in Sec. 950.705 is redesignated as paragraph 
(a), and a new paragraph (b) is added, to read as follows:


Sec. 950.705  Determination of amount of operating subsidy under PFS.

* * * * *
    (b) For purposes of this part, a unit is considered available for 
occupancy from the date on which the End of Initial Operating Period 
(EIOP) is established for the project with which it is asso- ciated 
until the time it is approved by HUD for deprogramming and is vacated 
or is approved for non-dwelling use, except that, on or after July 1, 
1991, a unit shall not be considered available for occupancy in any IHA 
Requested Budget Year if the unit is located in a vacant building in a 
project that HUD has determined to be nonviable. In the case of an IHA 
development involving the acquisition of scattered site housing, the 
IHA may submit, and HUD shall review and can approve, a revised 
Development Cost Budget reflecting the number of units that were 
occupied during the previous six months, and the Unit Months Available 
used in the calculation of operating subsidy eligibility shall be 
revised to include the number of months the new/acquired units are 
actually occupied.

PART 990--ANNUAL CONTRIBUTIONS FOR OPERATING SUBSIDY

    4. The authority citation for part 990 continues to read as 
follows:

    Authority: 42 U.S.C. 1437g and 3535(d).

    5. Section 990.102 is amended by revising the definition of ``Unit 
Months Available'', to read as follows:


Sec. 990.102  Definitions.

* * * * *
    Unit months available. Units multiplied by the number of months the 
project units are available for occupancy during a given PHA fiscal 
year. See also Sec. 990.104(b).
* * * * *
    6. In Sec. 990.104, paragraph (b) is revised, to read as follows:


Sec. 990.104  Determination of amount of operating subsidy under PFS.

* * * * *
    (b) For purposes of this part, a unit is considered available for 
occupancy from the date on which the End of Initial Operating Period 
(EIOP) is established for the project with which it is associated until 
the time it is approved by HUD for deprogramming and is vacated or is 
approved for non-dwelling use, except that, on or after July 1, 1991, a 
unit shall not be considered available for occupancy in any PHA 
Requested Budget Year if the unit is located in a vacant building in a 
project that HUD has determined to be nonviable. In the case of a PHA 
development involving the acquisition of scattered site housing, the 
PHA may submit, and HUD shall review and can approve, a revised 
Development Cost Budget reflecting the number of units that were 
occupied during the previous six months, and the Unit Months Available 
used in the calculation of operating subsidy eligibility shall be 
revised to include the number of months the new/acquired units are 
actually occupied.

    Dated: August 30, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-28033 Filed 11-13-95; 8:45 am]
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