[Federal Register Volume 61, Number 52 (Friday, March 15, 1996)]
[Rules and Regulations]
[Pages 10848-10852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6162]
[[Page 10847]]
_______________________________________________________________________
Part II
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 791
Allocation of Budget Authority for Housing Assistance; Final Rule
Federal Register / Vol. 61, No. 52 / Friday, March 15, 1996 / Rules
and Regulations
[[Page 10848]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
24 CFR Part 791
[Docket No. FR-4024-F-01]
RIN 2501-AC17
Allocation of Budget Authority for Housing Assistance
AGENCY: Office of the Secretary, HUD.
ACTION: Final rule.
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SUMMARY: This final rule amends HUD's regulations for the allocation of
budget authority for housing assistance. In an effort to comply with
the President's regulatory reform initiatives, this rule streamlines
the regulations by eliminating provisions that are redundant of
statutes or are otherwise unnecessary, making them clearer and more
concise.
In addition, this rule revises the regulations to reflect
organizational initiatives within Headquarters, as well as the
Department's reinvention of the field office structure in Fiscal Year
1994, which eliminated the regional office management layer and
delegated the authority to the State and Area offices.
EFFECTIVE DATE: April 15, 1996.
FOR FURTHER INFORMATION CONTACT: For the Public and Indian Housing
programs, and the Section 8 voucher, certificate, and moderate
rehabilitation programs: Nanci E. Gelb, Director, PIH Budget Division,
Room 4230, Department of Housing and Urban Development, 451 Seventh
Street, SW, Washington, DC 20410-0500. Telephone: (202) 708-0614.
Hearing- or speech-impaired individuals may call HUD's TDD number (202)
708-0850.
For other assisted housing programs: Karen Daly, Acting Director,
Office of Policy, Assistant Secretary for Housing, Room 9220,
Department of Housing and Urban Development, 451 Seventh Street, SW.,
Washington, DC 20410-8000. Telephone: (202) 708-4135. Hearing- or
speech-impaired individuals may call HUD's TDD number (202) 755-4594.
(These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION On March 4, 1995, President Clinton issued a
memorandum to all Federal departments and agencies regarding regulatory
reinvention. In response to this memorandum, the Department of Housing
and Urban Development conducted a page-by-page review of its
regulations to determine which can be eliminated, consolidated, or
otherwise improved. HUD has determined that the regulations for the
``Allocation of Budget Authority for Housing Assistance'' can be
improved and streamlined by eliminating unnecessary provisions.
Some provisions in the regulations are now obsolete. For instance,
this rule removes Subpart B which contains obsolete regulations
regarding the Housing Assistance Plan (HAP). The HAP has been
superseded by the comprehensive affordability strategy (and
consolidated plan). Moreover, the Department now uses a grant mechanism
for the Section 202 program as a result of statutory changes in 1990;
hence, references in the regulations to loan authority for the Section
202 program, and in general, have been deleted.
Finally, some provisions in the regulations are not statutory
requirements. Section 791.403(a) included a statement that the
Assistant Secretaries for Housing and for Public and Indian Housing
would confer to determine how the available budget authority should be
allocated. Given recent appropriations treatment of the Section 8
programs, such consultation is no longer needed. Therefore, this
provision has been eliminated.
Justification for Final Rulemaking
HUD generally publishes a rule for public comment before issuing a
rule for effect, in accordance with its own regulations on rulemaking
in 24 CFR part 10. However, part 10 provides for exceptions to the
general rule if the agency finds good cause to omit advance notice and
public participation. The good cause requirement is satisfied when
prior public procedure is ``impracticable, unnecessary, or contrary to
the public interest'' (24 CFR 10.1). HUD finds that good cause exists
to publish this rule for effect without first soliciting public
comment. This rule merely removes unnecessary regulatory provisions and
does not establish or affect substantive policy. Therefore, prior
public comment is unnecessary.
Other Matters
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this rule before publication and by
approving it certifies that this rule does not have a significant
economic impact on a substantial number of small entities. The rule
revises existing procedures for the allocation of housing assistance
funds and for local government and HUD review of applications for
housing assistance, but makes no change in the economic impact of these
procedures on small entities.
Environmental Impact
In accordance with 40 CFR 1508.4 of the regulations of the Council
on Environmental Quality and 24 CFR 50.20(k) of the HUD regulations,
the policies and procedures contained in this rule relate only to
internal administrative procedures whose content does not constitute a
development decision nor affect the physical condition of project areas
or building sites, and therefore, are categorically excluded from the
requirements of the National Environmental Policy Act.
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 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. Specifically,
this rule will not substantially alter the established roles of HUD and
the States and local governments, including PHAs, in administering the
affected programs. As a result, the rule is not subject to review under
the Order.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule does not have
potential for 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 rule, as those policies and programs
relate to family concerns.
List of Subjects in 24 CFR Part 791
Grant programs--housing and community development, Indians,
Intergovernmental relations, Public housing, Rent subsidies.
Accordingly, pursuant to the Secretary's authority under 42 U.S.C.
3535(d), 24 CFR part 791 is revised as follows:
[[Page 10849]]
PART 791--REVIEW OF APPLICATIONS FOR HOUSING ASSISTANCE AND
ALLOCATIONS OF HOUSING ASSISTANCE FUNDS
Subpart A--General Provisions
Sec.
791.101 Applicability and scope.
791.102 Definitions.
Subpart B--[Reserved]
Subpart C--Applications for Housing Assistance
791.301 General.
791.302 Finding of need for housing assistance.
791.303 Notification of local government.
791.304 Review and comment period.
791.305 HUD review of applications for housing assistance.
Subpart D--Allocation of Budget Authority for Housing Assistance
791.401 General.
791.402 Determination of low-income housing needs.
791.403 Allocation of housing assistance.
791.404 Field Office allocation planning.
791.405 Reallocations of budget authority.
791.406 Competition.
791.407 Headquarters Reserve.
Authority: 42 U.S.C. 1439 and 3535(d).
Subpart A--General Provisions
Sec. 791.101 Applicability and scope.
This part describes the roles and responsibilities of HUD and local
governments under section 213 of the Housing and Community Development
Act of 1974 (42 U.S.C. 1437). It applies to the allocation of budget
authority, and the review and approval of applications for housing
assistance under the United States Housing Act of 1937 (42 U.S.C. 1437-
1437q), section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s), and with respect to subpart D only, section 202 of
the Housing Act of 1959 (12 U.S.C. 1710q), except as follows:
(a) This part does not apply to programs for public housing
operating subsidy, public housing modernization, or rental
rehabilitation grant assistance under section 9, 14, or 17 of the
United States Housing Act of 1937; and
(b) Subpart D of this part does not apply to the allocation of
budget authority for housing development grant assistance under section
17 of the U.S. Housing Act of 1937.
Sec. 791.102 Definitions.
Act. The Housing and Community Development Act of 1974 (42 U.S.D.
1437), as amended.
Allocation area. A municipality, county, or group of municipalities
or counties or Indian areas identified by the HUD field office for the
purpose of allocating housing assistance.
Application for housing assistance. The first submission to HUD for
housing assistance under one of the programs identified in
Sec. 791.101(a). For the purposes of this part, the term includes an
application, a preliminary proposal, or a proposal, so long as it meets
the applicable program regulations. For the public housing program, the
first application identifying a project site will be considered the
application for housing assistance.
Assistant Secretary. The Assistant Secretary for Housing or the
Assistant Secretary for Public and Indian Housing, as appropriate to
the housing assistance under consideration.
Budget authority. The maximum amount authorized by the Congress for
payments over the term of assistance contracts.
Chief executive officer. The elected official or legally designated
official who has the primary responsibility for conducting the
governmental affairs of a unit of general local government. Examples of
the ``chief executive officer'' include: the elected mayor of a
municipality; the elected county executive of a county; the presiding
officer of a county commission or board in a county that has no elected
county executive; the official designated by the governing body of the
local government pursuant to law (e.g., the city manager or city
administrator); and the chairman, governor, chief or president of an
Indian tribe or Alaskan native village.
Fiscal year. The official operating period of the Federal
government, beginning on October 1 and ending on September 30.
Household type. The three household types are: elderly, small
family, and large family. References to household type shall mean the
household type within the appropriate tenure type.
Housing type. The three housing types are:
(1) New construction;
(2) Rehabilitation; and
(3) Existing housing.
Local government. Any city, county, town, township, parish, village
or other unit of general local government which is a general purpose
political subdivision of a State or the Commonwealth of Puerto Rico;
Guam, the Commonwealth of the Northern Marianas, the Virgin Islands and
American Samoa, or a general purpose political subdivision thereof; a
combination of such political subdivisions recognized by the Secretary
of HUD: the District of Columbia; the former Trust Territories of the
Pacific Islands, as applicable ; Indian tribes, bands, groups and
nations, including Alaska Indians, Aleuts and Eskimos; and any Alaskan
native village of the United States. The term also includes a State or
local public body or agency, community association, or other entity
which is approved by HUD to provide public facilities or services to a
new community meeting the requirements of Title IV of the Housing and
Urban Development Act of 1968 (42 U.S.C. 3901) or Title VII of the
Housing and Urban Development Act of 1970 (42 U.S.C. 4501).
Metropolitan area. See MSA.
MSA. A metropolitan statistical area established by the Office of
Management and Budget. The term also includes primary metropolitan
statistical areas (PMSAs), which are the component parts of larger
urbanized areas designated as consolidated metropolitan statistical
areas (CMSAs). Where an MSA is divided among two or more field offices,
references to an MSA mean the portion of the MSA within the State/Area
Office jurisdiction.
Public housing agency. Any State, county, municipality, or other
governmental entity or public body (or agency or instrumentality
thereof) which is authorized to engage in or assist in the development
or operation of housing for low-income families.
Tenure type. The two tenure types are owners and renters.
Urban county. Any county within a metropolitan area which is
authorized under State law to undertake essential community development
and housing assistance activities in its unincorporated areas, and
which meets the other requirements of 24 CFR 570.307 for qualification
as an urban county.
Subpart B--[Reserved]
Subpart C--Applications for Housing Assistance
Sec. 791.301 General.
This subpart C establishes the policies and procedures governing
reviews and determinations, pursuant to section 213(c) of the Act, with
respect to applications for housing assistance, under the programs
identified in Sec. 791.101(a).
Sec. 791.302 Finding of need for housing assistance.
With respect to each application for housing assistance, the field
office is required to make a determination as to whether there is a
need for such housing and whether the public facilities and services
available in the area will be adequate to serve the proposed housing.
[[Page 10850]]
(a) The initial determination of need for housing assistance within
an allocation area is made as part of the allocation process in
Sec. 791.404. In making this determination, the field office shall give
consideration to the contents of any applicable State or areawide
housing plan proposing housing assistance in the area, as well as
generally available data on population, poverty, housing overcrowding,
housing vacancies, amount of substandard housing, or other objectively
measurable conditions pertaining to low-income housing needs.
(b) Prior to making a determination with regard to a specific
application, the field office shall give the local government in which
the proposed assistance is to be provided an opportunity to provide
comments, during a 30-calendar-day period, concerning the need for
housing assistance and the adequacy of public facilities and services.
If the local government finding is negative, it must be accompanied by
supporting evidence.
Sec. 791.303 Notification of local government.
(a) The field office shall notify the chief executive officer no
later than 10 working days after receipt (or completion of any
preliminary review and determination that the application is acceptable
for further processing) that an application for housing assistance to
be provided in that jurisdiction has been received and is under
consideration.
(1) When the application is for housing assistance in newly
constructed or rehabilitated housing within the overlapping
jurisdictions of more than one local government (e.g., a municipality
which is also within a county), the field office shall notify the chief
executive officer of each local government.
(2) When the application is for housing assistance in newly
constructed or rehabilitated housing within several nonoverlapping
political jurisdictions (e.g., a scattered site project), the field
office shall notify the chief executive officer of each local
government where housing assistance is proposed.
(3) For a Section 8 existing housing, moderate rehabilitation, or
housing voucher application submitted in accordance with 24 CFR part
982, the field office shall notify the chief executive officers of the
localities that are identified in the application as:
(i) Primary areas from which households to be assisted under the
existing housing program will be drawn; or
(ii) Primary areas in which units will be rehabilitated under the
moderate rehabilitation program.
(b) The notification to the chief executive officer shall:
(1) Indicate that the field office has received and is considering
an application for housing assistance, and identify the housing
program, the housing type, the number of units by bedroom size and
household type, and the proposed location(s).
(2) Invite the submission, within a period of 30 calendar days from
the date of the field office letter, of a statement on behalf of the
local government concerning the need for housing assistance and the
adequacy of public facilities and services and any other comments which
are relevant to a determination by the field office concerning the
proposed housing assistance (e.g., comments on the site; whether the
project is approvable under local codes and zoning ordinances).
Sec. 791.304 Review and comment period.
The chief executive officer shall have a 30-calendar day comment
period, beginning on the date of the notification letter described in
Sec. 791.303, to submit written comments relevant to a determination by
the field office concerning the approval of an application for housing
assistance. The field office shall consider the comment period closed
when the written comments are received. In no case shall the Program
Office Director in the field office be obligated to consider subsequent
or revised comments unless the initial response indicated that
additional comments would be provided and such comments are received
prior to the expiration of the 30-day comment period. As an alternative
to this process, the chief executive officer may submit any comments on
the application with the application at the time it is submitted to
HUD. Such early comment shall state whether such comment is intended to
be the final comment, notwithstanding the 30-day period otherwise
provided under this paragraph.
Sec. 791.305 HUD review of applications for housing assistance.
(a) The field office shall not approve an application for housing
assistance prior to either:
(1) Receipt of comments pursuant to Sec. 791.304; or
(2) Expiration of the 30-day comment period, whichever occurs
earlier.
(b) In determining whether an application will be approved, the
field office shall consider the comments provided by the local
government including comments submitted by the chief executive officer
on behalf of the local government. The field office shall make an
independent determination as to whether there is a need for housing
assistance and whether facilities and services are adequate before
approving the application.
(c) The field office shall promptly notify both the chief executive
officer and the applicant of the HUD determination with respect to the
approval or disapproval of the application for housing assistance.
Subpart D--Allocation of Budget Authority for Housing Assistance
Sec. 791.401 General.
This subpart D establishes the procedures for allocating budget
authority under section 213(d) of the Act for the programs identified
in Sec. 791.101(a). It describes the allocation of budget authority by
the appropriate Assistant Secretary to the applicable Program Office
Director in the HUD field office, and by the Program Office Director to
allocation areas within their jurisdiction.
Sec. 791.402 Determination of low-income housing needs.
(a) Before budget authority is allocated, the Assistant Secretary
for Policy Development and Research shall determine the relative need
for low-income housing assistance in each HUD field office
jurisdiction. This determination shall be based upon data from the most
recent, available decennial census and, where appropriate, upon more
recent data from the Bureau of the Census or other Federal agencies, or
from the American Housing Survey.
(b) Except for paragraph (c) of this section, the factors used to
determine the relative need for assistance shall be based upon the
following criteria:
(1) Population. The renter population;
(2) Poverty. The number of renter households with annual incomes at
or below the poverty level, as defined by the Bureau of the Census;
(3) Housing overcrowding. The number of renter-occupied housing
units with an occupancy ratio of 1.01 or more persons per room;
(4) Housing vacancies. The number of renter housing units that
would be required to maintain vacancies at levels typical of balanced
market conditions;
(5) Substandard housing. The number of housing units built before
1940 and occupied by renter households with annual incomes at or below
the poverty level, as defined by the Bureau of the Census; and
[[Page 10851]]
(6) Other objectively measurable conditions. Data indicating
potential need for rental housing assistance, such as the number of
renter households with incomes below specified levels and paying a
gross rent of more than 30 percent of household income.
(c)(1) For the section 202 elderly program, the data used shall
reflect relevant characteristics of the elderly population. The data
shall use the criteria specified in paragraph (b)(1) and (6) of this
section, as modified to apply specifically to the needs of the elderly
population.
(2) Budget authority for the Indian housing program under 24 CFR
part 905 shall be allocated on the basis of the relative housing needs
of the Indian tribal population, as measured by the Bureau of Indian
Affairs, and by data for non-BIA recognized groups served by the Indian
housing program.
(d) Based on the criteria in paragraphs (b) and (c)(1) of this
section, the Assistant Secretary for Policy Development and Research
shall establish housing needs factors for each county and independent
city in the field office jurisdiction, and shall aggregate the factors
into metropolitan and nonmetropolitan totals for the field office. The
field office total for each metropolitan and nonmetropolitan factor is
then divided by the respective national total for that factor. The
resulting housing needs ratios under paragraph (b) of this section are
then weighted to provide metropolitan and nonmetropolitan housing needs
percentages for each field office, using the following weights:
Population, 20 percent; poverty, 20 percent; housing overcrowding, 10
percent; housing vacancies, 10 percent; substandard housing, 20
percent; other objectively measurable conditions, 20 percent. For the
section 202 elderly program, the two criteria described in paragraph
(c)(1) of this section are weighted equally.
(e) The Assistant Secretary for Policy Development and Research
shall adjust the housing needs percentages derived in paragraph (d) of
this section to reflect the relative cost of providing housing among
the field office jurisdictions.
Sec. 791.403 Allocation of housing assistance.
(a) The total budget authority available for any fiscal year shall
be determined by adding any available, unreserved budget authority from
prior fiscal years to any newly appropriated budget authority for each
housing program. On a nationwide basis, at least 20 percent, but not
more than 25 percent, of the total budget authority available for any
fiscal year, which is allocated pursuant to paragraph (b)(2) of this
section and any amounts which are retained pursuant to Sec. 791.407,
shall be allocated for use in nonmetropolitan areas.
(b) Budget authority available for the fiscal year, except for that
retained pursuant to Sec. 791.407, shall be allocated to the field
offices as follows:
(1) Budget authority shall be allocated as needed for uses that the
Secretary determines are incapable of geographic allocation by formula,
including--
(i) Amendments of existing contracts, renewal of assistance
contracts, assistance to families that would otherwise lose assistance
due to the decision of the project owner to prepay the project mortgage
or not to renew the assistance contract, assistance to prevent
displacement or to provide replacement housing in connection with the
demolition or disposition of public and Indian housing, assistance in
support of the property disposition and loan management functions of
the Secretary;
(ii) Assistance which is--
(A) The subject of a line item identification in the HUD
appropriations law, or in the table customarily included in the
Conference Report on the appropriation for the Fiscal Year in which the
funds are to be allocated;
(B) Reported in the Operating Plan submitted by HUD to the
Committees on Appropriations; or
(C) Included in an authorization statute where the nature of the
assistance, such as a prescribed set-aside, is, in the determination of
the Secretary, incapable of geographic allocation by formula,
(iii) Assistance determined by the Secretary to be necessary in
carrying out the following programs authorized by the Cranston-Gonzalez
National Affordable Housing Act: the Homeownership and Opportunity
Through HOPE Act under title IV and HOPE for Elderly Independence under
section 803.
(2) Budget authority remaining after carrying out allocation steps
outlined in paragraph (b)(1) of this section shall be allocated in
accordance with the housing needs percentages calculated under
paragraphs (b), (c), (d), and (e) of Sec. 791.402. HUD may allocate
assistance under this paragraph in such a manner that each State shall
receive not less than one-half of one percent of the amount of funds
available for each program referred to in Sec. 791.101(a) in each
fiscal year. If the budget authority for a particular program is
insufficient to fund feasible projects, or to promote meaningful
competition, at the field office level, budget authority may be
allocated among the ten geographic areas of the country. The funds so
allocated will be assigned by Headquarters to the field office(s) with
the highest ranked applications within the ten geographic areas.
(c) At least annually HUD will publish a notice in the Federal
Register informing the public of all allocations under
Sec. 791.403(b)(2).
Sec. 791.404 Field Office allocation planning.
(a) General objective. The allocation planning process should
provide for the equitable distribution of available budget authority,
consistent with the relative housing needs of each allocation area
within the field office jurisdiction.
(b) Establishing allocation areas. Allocation areas, consisting of
one or more counties or independent cities, shall be established by the
field office in accordance with the following criteria:
(1) Each allocation shall be to the smallest practicable area, but
of sufficient size so that at least three eligible entities are viable
competitors for funds in the allocation area, and so that all
applicable statutory requirements can be met. (It is expected that in
many instances individual MSAs will be established as metropolitan
allocation areas.) For the section 202 program for the elderly, the
allocation area must include sufficient units to promote a meaningful
competition among disparate types of providers of such housing (e.g.,
local as well as national sponsors, minority as well as non-minority
sponsors). The preceding sentence shall not apply to projects acquired
from the Resolution Trust Corporation under section 21A(c) of the
Federal Home Loan Bank Act.
(2) Each allocation area shall also be of sufficient size, in terms
of population and housing need, that the amount of budget authority
being allocated to the area will support at least one feasible program
or project.
(3) In establishing allocation areas, counties and independent
cities within MSAs should not be combined with counties that are not in
MSAs.
(c) Determining the amount of budget authority. Where the field
office establishes more than one allocation area, it shall determine
the amount of budget authority to be allocated to each allocation area,
based upon a housing needs percentage which represents the needs of
that area relative to the needs of the metropolitan or nonmetropolitan
portion of the field office jurisdiction, whichever is appropriate. For
each program, a composite housing needs percentage developed under
Sec. 791.402
[[Page 10852]]
for those counties and independent cities comprising the allocation
area shall be aggregated into allocation area totals.
(d) Planning for the allocation. The field office should develop an
allocation plan which reflects the amount of budget authority
determined for each allocation area in paragraph (c). The plan should
include a map or maps clearly showing the allocation areas within the
field office jurisdiction. The relative share of budget authority by
individual program type need not be the same for each allocation area,
so long as the total amount of budget authority made available to the
allocation area is not significantly reduced.
Sec. 791.405 Reallocations of budget authority.
(a) The field office shall make every reasonable effort to use the
budget authority made available for each allocation area within such
area. If the Program Office Director determines that not all of the
budget authority allocated for a particular allocation area is likely
to be used during the fiscal year, the remaining authority may be
allocated to other allocation areas where it is likely to be used
during that fiscal year.
(b) If the Assistant Secretary determines that not all of the
budget authority allocated to a field office is likely to be used
during the fiscal year, the remaining authority may be reallocated to
another field office where it is likely to be used during that fiscal
year.
(c) Any reallocations of budget authority among allocation areas or
field offices shall be consistent with the assignment of budget
authority for the specific program type and established set-asides.
(d) Notwithstanding the requirements of paragraphs (a) through (c)
of this section, budget authority shall not be reallocated for use in
another State unless the Program Office Director or the Assistant
Secretary has determined that other allocation areas within the same
State cannot use the available authority during the fiscal year.
Sec. 791.406 Competition.
(a) All budget authority allocated pursuant to Sec. 791.403(b)(2)
shall be reserved and obligated pursuant to a competition. Any such
competition shall be conducted pursuant to specific criteria for the
selection of recipients of assistance. These criteria shall be
contained in a regulation promulgated after notice and public comment
or, to the extent authorized by law, a notice published in the Federal
Register.
(b) This section shall not apply to assistance referred to in
Secs. 791.403(b)(1) and 791.407.
Sec. 791.407 Headquarters Reserve.
(a) A portion of the budget authority available for the housing
programs listed in Sec. 791.101(a), not to exceed an amount equal to
five percent of the total amount of budget authority available for the
fiscal year for programs under the United States Housing Act of 1937
listed in Sec. 791.101(a), may be retained by the Assistant Secretary
for subsequent allocation to specific areas and communities, and may
only be used for:
(1) Unforeseen housing needs resulting from natural and other
disasters, including hurricanes, tornadoes, storms, high water, wind
driven water, tidal waves, tsunamis, earthquakes, volcanic eruptions,
landslides, mudslides, snowstorms, drought, fires, floods, or
explosions, which in the determination of the Secretary cause damage of
sufficient severity and magnitude to warrant Federal housing
assistance;
(2) Housing needs resulting from emergencies, as certified by the
Secretary, other than disasters described in paragraph (a)(1) of this
section. Emergency housing needs that can be certified are only those
that result from unpredictable and sudden circumstances causing housing
deprivation (such as physical displacement, loss of Federal rental
assistance, or substandard housing conditions) or causing an unforeseen
and significant increase in low-income housing demand in a housing
market (such as influx of refugees or plant closings);
(3) Housing needs resulting from the settlement of litigation; and
(4) Housing in support of desegregation efforts.
(b) Applications for funds retained under paragraph (a) of this
section shall be made to the field office, which will make
recommendations to Headquarters for approval or rejection of the
application. Applications generally will be considered for funding on a
first-come, first-served basis. Specific instructions governing access
to the Headquarters Reserve shall be published by notice in the Federal
Register, as necessary.
(c) Any amounts retained in any fiscal year under paragraph (a) of
this section that are not reserved by the end of such fiscal year shall
remain available for the following fiscal year in the program under
Sec. 791.101(a) from which the amount was retained. Such amounts shall
be allocated pursuant to Sec. 791.403(b)(2).
Dated: March 7, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-6162 Filed 3-14-96; 8:45 am]
BILLING CODE 4210-32-P