[Federal Register Volume 61, Number 31 (Wednesday, February 14, 1996)]
[Rules and Regulations]
[Pages 5850-5852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3275]




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Part IV





Department of Housing and Urban Development





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24 CFR Part 882



Section 8 Moderate Rehabilitation Single Room Occupancy Program for 
Homeless Individuals; Rule

  Federal Register / Vol. 61, No. 31 / Wednesday, February 14, 1996 / 
Rules and Regulations  
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Community Planning and 
Development

24 CFR Part 882

[Docket No. FR-3929-I-01]
RIN 2506-AB75


Section 8 Moderate Rehabilitation Single Room Occupancy Program 
for Homeless Individuals; Amendments

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Interim rule.

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SUMMARY: This interim rule amends HUD's regulations for the Section 8 
Moderate Rehabilitation Single Room Occupancy Program for Homeless 
Individuals at 24 CFR part 882, subpart H. These amendments conform the 
program regulations with statutory and regulatory changes. The 
amendments will clarify and update the regulations according to current 
requirements.

DATES: Effective date: March 15, 1996. Comments due date: April 15, 
1996.

ADDRESSES: Interested persons are invited to submit comments regarding 
this interim rule to the Office of General Counsel, Rules Docket Clerk, 
Room 10276, Department of Housing and Urban Development, 451 Seventh 
Street SW., Washington, DC 20410-0500. Communications should refer to 
the above docket number and title. A copy of each communication 
submitted will be available for public inspection and copying on 
weekdays between 7:30 a.m. and 5:30 p.m. at the above address. Comments 
sent by FAX are not acceptable.

FOR FURTHER INFORMATION CONTACT: Maggie H. Taylor, Director, Office of 
Special Needs Assistance Programs, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410; (202) 708-
4300; TTY for persons who are deaf, hard-of-hearing, or who have speech 
impairments (202) 708-2565. (Telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Background

    This interim rule makes several changes to conform the Section 8 
Moderate Rehabilitation Single Room Occupancy (SRO) program regulations 
with statutory and regulatory changes. First, this interim rule 
eliminates the remaining provisions on the required use of housing 
authority (HA) waiting lists. In an interim rule published on March 15, 
1993 (58 FR 13828), HUD conformed the process for selecting homeless 
persons for participation in the SRO program with the process used in 
HUD's other homeless programs. In place of the HA waiting list process, 
the interim rule required that HAs and/or Owners engage in outreach 
efforts to bring homeless individuals into the program, and that vacant 
units be rented directly to homeless individuals located through these 
outreach efforts. This interim rule deletes the remaining references to 
HA waiting lists that HUD inadvertently overlooked. This interim rule 
also clarifies the role of HAs in helping to identify homeless 
individuals during the outreach process (Sec. 882.808(a)(1)).
    Second, this interim rule conforms the program regulations with 
section 1405 of the Housing and Community Development Act of 1992 (Pub. 
L. 102-550, approved October 28, 1992), which amended the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11401). This statutory 
amendment includes a requirement for the participation of homeless 
individuals in considering and making policies and decisions regarding 
rehabilitation of structures receiving assistance under this program, 
and for the involvement of homeless individuals in the rehabilitation 
and operation of these structures. This interim rule implements the 
requirement at Sec. 882.808(q).
    The statutory amendment also requires a formal process for 
terminating assistance to individuals who violate program requirements. 
HUD has determined that the existing requirements for the termination 
of tenancy at Sec. 882.808(l) sufficiently protect the rights of 
homeless individuals and should serve to prevent abuses such as lack of 
notice. Therefore, no change to the regulations is necessary to 
implement the requirement. (Note: This interim rule does not change the 
lawful grounds for terminating assistance. Termination of assistance 
due to unwillingness to accept supportive services or other activities 
that do not of themselves constitute a violation of the housing lease 
are not allowed.)
    The statutory amendment further provides that private nonprofit 
organizations can apply directly for SRO assistance. Prior to the 
amendments, the only eligible applicants under the program were public 
housing agencies and Indian housing authorities. To implement this 
change, the interim rule adds definitions of ``applicant'' and 
``private nonprofit organization'' at Sec. 882.802. This revised 
section further provides that HUD will require private nonprofit 
applicants to subcontract with public housing agencies to administer 
their rental assistance.
    Third, this interim rule conforms the program regulations with the 
environmental review procedures in 24 CFR part 58. The Multifamily 
Housing Property Disposition Reform Act of 1994 (Pub. L. 103-233, 
approved April 11, 1994) made these procedures applicable to the 
Section 8 Moderate Rehabilitation SRO program, and HUD published 
implementing regulations in the Federal Register on March 13, 1995 (60 
FR 13518). Under part 58, it is the HA's responsibility to obtain an 
agreement with the responsible entity designated under part 58 for the 
performance of environmental reviews.
    Fourth, this interim rule revises the provision on project 
eligibility at Sec. 882.803(a)(2). This interim rule will provide that 
housing is ineligible for assistance under this program if it is 
receiving Federal funding for rental assistance or operating costs 
under other HUD programs. The current regulation provides that housing 
is not eligible for assistance if it is, or has been within 12 months 
before the Owner submits a proposal, subsidized under any Federal 
housing program. A number of nonprofit organizations and PHAs have 
requested clarification of the term ``subsidized,'' and have indicated 
that the 12-month restriction eliminates a number of otherwise 
excellent facilities from consideration for SRO assistance. In response 
to these comments, HUD is revising this provision by adopting the 
clearer, less restrictive standard used in its Shelter Plus Care 
program. Under the revised standard, there is no restriction on the use 
of other Federal funding for acquisition and rehabilitation costs.
    Fifth, this interim rule eliminates an obsolete date reference in 
the provisions for determining the maximum amount of rehabilitation 
allowable in the program. Although Sec. 882.805(g)(1)(ii)(A) provides 
that the rehabilitation cost calculation should use the HUD-approved 
High Cost Percentage for Base Cities in use before April 1988, HUD 
recalculates this percentage periodically. Therefore, this interim rule 
will eliminate the date reference so that a more recent percentage can 
be used.
    Finally, this interim rule corrects an error in a final rule 
published in the Federal Register on June 6, 1994 (59 FR 29326). That 
rule, which conformed HUD's regulations with the requirements of the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970, as amended, and its implementing regulations at 49 CFR 
part 24, added 

[[Page 5851]]
Sec. 882.810 and intended to remove much of Sec. 882.803(d). However, 
the most recent codification of part 882 (April 1, 1995) included both 
Sec. 882.810 and Sec. 882.803(d) in its entirety. Therefore, in order 
to correct the error, this rule removes much of Sec. 882.803(d).

Justification for Interim Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
rule for effect, in accordance with its regulations on rulemaking at 24 
CFR part 10. However, part 10 provides that prior public procedure will 
be omitted if HUD determines that it is ``impracticable, unnecessary, 
or contrary to the public interest'' (24 CFR 10.1). With this interim 
rule, HUD is merely correcting several minor oversights and conforming 
the SRO regulations to statutory or regulatory provisions that are 
already effective. Therefore, HUD finds that prior public procedure 
would be unnecessary. However, HUD is inviting public comments for 60 
days, after which it will consider the relevant issues raised by the 
commenters in developing a final rule.

Other Matters

Environmental Impact

    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 (42 U.S.C. 4332). The finding is available for public 
inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of 
the Rules Docket Clerk, Office of the General Counsel, Department of 
Housing and Urban Development, Room 10276, 451 Seventh Street SW, 
Washington, DC 20410.

Executive Order 12606, The Family

    The General Counsel, as the designated official under Executive 
Order 12606, The Family, has determined that this interim rule does not 
have potential for significant impact on family formation, maintenance, 
and general well-being. To the extent that this interim rule benefits 
homeless individuals, it would benefit the families of such 
individuals. Since any effect of the interim rule would be beneficial, 
this interim rule is not subject to review under the Order.

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 
in this interim rule will not have substantial direct effects on States 
or their political subdivisions, or the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. This interim 
rule is limited to conforming the regulations with statutory and 
regulatory requirements. Therefore the interim rule is not subject to 
review under the Order.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this interim rule before publication and 
by approving it certifies that this interim rule does not have a 
significant economic impact on a substantial number of small entities. 
Specifically, the interim rule is limited to making conforming changes 
to the program regulations.

List of Subjects in 24 CFR Part 882

    Grant programs--housing and community development, Homeless, Lead 
poisoning, Manufactured homes, Rent subsidies, Reporting and 
recordkeeping requirements.

    Accordingly, 24 CFR part 882 is amended as follows:

PART 882--SECTION 8 CERTIFICATE AND MODERATE REHABILITATION 
PROGRAMS

    1. The authority citation for part 882 continues to read as 
follows:

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

    2. Section 882.802 is amended by adding definitions for the terms 
``applicant'' and ``private nonprofit organization'' in alphabetical 
order, to read as follows:


Sec. 882.802  Definitions.

* * * * *
    Applicant. A public housing agency or Indian housing authority 
(collectively referred to as housing agencies or HAs), or a private 
nonprofit organization that applies for assistance under this program. 
HUD will require private nonprofit applicants to subcontract with 
public housing agencies to administer their rental assistance.
* * * * *
    Private nonprofit organization. An organization, no part of the net 
earnings of which inures to the benefit of any member, founder, 
contributor, or individual. The organization must:
    (1) Have a voluntary board;
    (2) Have a functioning accounting system that is operated in 
accordance with generally accepted accounting principles, or designate 
an entity that will maintain a functioning accounting system for the 
organization in accordance with generally accepted accounting 
principles; and
    (3) Practice nondiscrimination in the provision of assistance.
* * * * *
    3. Section 882.803 is amended by revising paragraphs (a)(2) and (d) 
to read as follows:


Sec. 882.803  Project eligibility and other requirements.

    (a) * * *
    (2) Housing is not eligible for assistance under this program if it 
is receiving Federal funding for rental assistance or operating costs 
under other HUD programs.
* * * * *
    (d) Relocation. A project assisted under this subpart H is subject 
to the requirements of Sec. 882.810.
* * * * *
    4. Section 882.804 is amended by revising paragraph (d) to read as 
follows:


Sec. 882.804  Other Federal requirements.

* * * * *
    (d) The environmental review requirements of 24 CFR part 58, 
implementing the National Environmental Policy Act and related 
environmental laws and authorities listed in 24 CFR 58.5, are 
applicable to this program.
    5. Section 882.805 is amended by removing and reserving paragraph 
(d), and by revising paragraph (g)(1)(ii)(A) to read as follows:


Sec. 882.805  PHA application process, HUD review and selection, ACC 
execution, and pre-rehabilitation activities.

* * * * *
    (d) [Reserved]
* * * * *
    (g) * * *
    (1) * * *
    (ii) * * *
    (A) HUD may approve a higher per unit amount up to, but not to 
exceed, an amount computed by multiplying the HUD-approved High Cost 
Percentage for Base Cities (used for computing FHA high cost area 
adjustments) for the area, by the current published cost limitation 
plus the cost of the required fire and safety improvements.
* * * * *
    6. Section 882.808 is amended by:
    a. Revising paragraph (a)(1);
    b. Removing paragraphs (a)(3), (b)(2), and (b)(4);
    c. Redesignating paragraph (a)(4) as paragraph (a)(3) and revising 
it;
    d. Redesignating paragraph (b)(3) as paragraph (b)(2);
    e. Redesignating paragraphs (b)(5) through (b)(7) as paragraphs 
(b)(3) through (b)(5), respectively; and 

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    f. Adding a new paragraph (q), to read as follows:


Sec. 882.808  Management.

    (a) Outreach to homeless individuals and appropriate organizations. 
(1) The HA or the Owner shall undertake outreach efforts to homeless 
individuals so that they may be brought into the program. The outreach 
effort should include notification to emergency shelter providers and 
other organizations that could provide referrals of homeless 
individuals. In cases where the owner conducts the outreach effort, the 
HA shall be notified so that it may provide referrals of homeless 
individuals.
* * * * *
    (3) First priority for homeless individuals. Homeless individuals 
shall have a first priority for occupancy of housing rehabilitated 
under this program.
* * * * *
    (q) Participation of homeless individuals. (1) Each approved 
applicant receiving assistance under this program, except HAs, shall 
provide for the participation of not less than one homeless individual 
or formerly homeless individual on the board of directors or other 
equivalent policymaking entity of such applicant, to the extent that 
the entity considers and makes policies and decisions regarding the 
rehabilitation of any housing with assistance under this subpart. This 
requirement is waived if the applicant is unable to meet this 
requirement and presents a plan that HUD approves to consult with 
homeless or formerly homeless individuals in considering and making 
such policies and decisions.
    (2) To the maximum extent practicable, each approved applicant must 
involve homeless individuals and families, through employment, 
volunteer services, or otherwise, in rehabilitating and operating 
facilities assisted under this subpart, and in providing services for 
occupants of such facilities.

    Dated: January 18, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-3275 Filed 2-13-96; 8:45 am]
BILLING CODE 4210-29-P