[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37756-37760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18443]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4083-N-01]


Office of the Assistant Secretary for Public and Indian Housing; 
Notice of Fiscal Year 1996 Funding for the Section 8 Rental Voucher 
Program and Rental Certificate Program

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

action: Notice of Fiscal Year (FY) 1996 funding for the Section 8 
rental voucher program and rental certificate program.

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summary: The Omnibus Consolidated Rescissions and Appropriations Act of 
1996 (P.L. 104-134, 110 Stat. 1321, approved April 26, 1996) provides 
$400 million of certificate and voucher funding in FY 1996 for the 
following purposes: (a) for residents to be relocated from existing 
federally subsidized or assisted housing, (b) for replacement housing 
for units demolished or disposed of from the public and Indian housing 
inventory (including units disposed of pursuant to homeownership 
programs under section 5(h) or title III (HOPE I and HOPE II) of the 
U.S. Housing Act of 1937), (c) for funds related to litigation 
settlements, including court orders agreed to by the parties in 
settlement of litigation, (d) for conversion of Section 23 housing, (e) 
to enable public housing agencies to implement allocation plans 
approved by HUD headquarters for designated housing for elderly and 
disabled persons, (f) to carry out the family unification program, and 
(g) for the relocation of witnesses in connection with efforts to 
combat crime in public, Indian and other assisted housing pursuant to a 
request from a law enforcement or prosecution agency.
    In addition to the $400 million Section 8 certificate and voucher 
funding, the FY 1996 Appropriations Act provides that HUD may designate 
up to 25 percent of amounts earmarked for Section 811 supportive 
housing for persons with disabilities for tenant-based certificate and 
voucher assistance. The FY 1996 Appropriations Act also provides for 
funding for renewal of Section 8 certificate and voucher Annual 
Contributions Contracts (ACCs), amendments to the original terms of 
ACCs for selected certificate and moderate rehabilitation programs, and 
for property disposition activities. Also, a portion of the FY 1996 
community

[[Page 37757]]

development grant funding appropriated for supportive services will be 
used for family self-sufficiency (FSS) service coordinators.
    This notice provides general information about the availability of 
Section 8 certificate and voucher program budget authority made 
available by the FY 1996 Appropriations Act (as well as FY 1996 
community development grant funds for supportive services) and 
additional budget authority (carryover and recaptured budget authority) 
that is available for use in FY 1996. This notice also specifies the 
procedures to be followed by HUD when making these funds available to 
public housing agencies and Indian housing authorities, herein referred 
to as housing agencies (HAs). Except as indicated below, the Department 
will allocate the Section 8 funds on a non-competitive basis.
    The ACC for all funding including renewals appropriated for FY 1996 
will generally be for a term of two years. However, ACCs for tenant-
based assistance from Section 811 funding will be five years.

for further information contact: Gerald J. Benoit, Director, Operations 
Division, office of Rental Assistance, Office of Public and Indian 
Housing, Room 4220, Department of Housing and Urban Development, 451 
Seventh Street, S.W., Washington, D.C. 20410-8000, telephone (202) 708-
0477. (This telephone number is not toll-free.) Hearing-impaired or 
speech-impaired individuals may access any of the voice telephone 
numbers listed in this notice by calling the Federal information relay 
services during working hours at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2577-0169. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection displays a valid 
control number.

Background

    The FY 1996 Appropriations Act provides funding for Section 8 
certificate and voucher assistance, but the funds must be used for 
specified purposes. The law does not provide funds for such other 
purposes as ``fair share'' applications, portability reimbursements, or 
``headquarters reserve'' applications to assist victims of natural 
disasters or other housing emergencies.
    The following are the purposes for which Section 8 certificate and 
voucher funding will be provided during FY 1996: (1) Relocation or 
replacement housing, (2) litigation, (3) conversion of Section 23 
housing, (4) mainstream housing opportunities for disabled persons, (5) 
family unification program, (6) relocation of witnesses involved in law 
enforcement and criminal prosecution, (7) tenant-based assistance under 
the Section 811 supportive housing for persons with disabilities 
program, (8) property disposition, (9) Section 8 counseling to achieve 
broader housing opportunities, (10) Section 8 certificate and voucher 
renewals, and (11) Section 8 cost amendments.

I. Relocation or Replacement Housing (Approximately 18,000 Units)

A. Categories

    Funds will be awarded for relocation of families living in public 
housing and for replacement of public housing units. Listed below are 
six categories for the use of Section 8 funds for relocation or 
replacement housing. HUD expects that most of the $400 million of the 
Section 8 certificate and voucher funds will be used to relocate 
residents who are living in public and Indian housing that is 
deteriorated or obsolete or to provide replacement housing for vacant 
units. HUD may establish a maximum amount of funds that will be 
available for any of the six categories under the relocation or 
replacement housing set-aside. The six categories for relocation or 
replacement housing are as follows: (1) Relocation assistance for 
families for units approved for demolition or disposition prior to 
October 1, 1995, (2) relocation assistance for families for units 
approved for demolition or disposition on or after October 1, 1995, (3) 
replacement units for public or Indian housing units that were occupied 
at the time of demolition or disposition approval, (4) relocation 
assistance for families living in public housing displaced due to 
mandatory conversion of distressed units, (5) relocation assistance for 
families living in public housing undergoing vacancy consolidation, and 
(6) replacement units for vacant public or Indian housing units in 
projects approved for demolition or disposition.
    The Section 8 program funds will be awarded to housing agencies for 
Category 1 applications until all Category 1 applications are funded or 
all the funds are awarded. If any funds are remaining after all the 
Category 1 applications are funded, HUD will award funds for Category 2 
applications until all Category 2 applications are funded or all the 
funds are awarded and so on for each of the categories in order of 
priority until all the fund are awarded.
    The following is a description, in order of priority for funding, 
of the relocation or replacement categories under which housing 
agencies may receive an award:
    Category 1: Relocation Assistance for Families Living in Public or 
Indian Housing Units Approved for Demolition or Disposition Prior to 
October 1, 1995. Applications will be accepted from housing agencies 
with applications approved prior to October 1, 1995, for demolition or 
disposition of public and Indian housing units where families are still 
living in the units and need to be relocated.
    Category 2: Relocation Assistance for Families Living in Public or 
Indian Housing Units Approved for Demolition or Disposition on or After 
October 1, 1995. Applications will be accepted from housing agencies 
with applications approved on or after October 1, 1995, for demolition 
or disposition of public and Indian housing units where families are 
still living in the units and need to be relocated. This category also 
includes demolition or disposition applications that are approvable in 
all respects, except that the time frames for the resident purchase 
option are still running and will be completed after the date for 
submission of applications for funding under this notice.
    Category 3: Replacement Assistance for Families Living in Public 
and Indian Housing Units at the Time of Demolition or Disposition 
Approval. Applications will be accepted from housing agencies as 
replacement of public and Indian housing units that were occupied at 
the time of demolition or disposition approval, but the units are no 
longer occupied by the families. Replacement assistance may be provided 
from the Section 8 funds as long as the HA did not receive Section 8 
funding for resident relocation or other replacement housing funding.
    Category 4: Relocation Assistance for Families Living in Public 
Housing Displaced Due to Mandatory Conversion of Distressed Units. 
Applications will be accepted from housing agencies for assistance to 
families living in public housing who need to be relocated due to the 
conversion of the distressed public housing units mandated by federal 
regulation.
    Category 5: Relocation Assistance for Families Living in Public 
Housing

[[Page 37758]]

Undergoing Vacancy Consolidation. Applications will be accepted from 
housing agencies for assistance to families living in public housing 
who need to be relocated from obsolete public housing because of 
vacancy consolidation.
    Category 6: Replacement Units for Vacant Public and Indian Housing 
Units in Projects Approved for Demolition or Disposition. Applications 
will be accepted from housing agencies for public and Indian housing 
units vacant at the time of demolition or disposition approval.

B. Definitions

1. Mandatory Conversion
    The FY 1996 Appropriations Act (Section 202) requires the 
conversion from assistance to distressed public housing developments to 
assistance for tenant-based certificates or vouchers. The law requires 
the removal of distressed units from the public housing inventory. The 
requirement applies to public housing developments (or portions of 
developments) of more than 300 units on the same or contiguous sites 
that (1) have a vacancy rate of at least ten percent for units not in 
funded, on-schedule modernization programs, (2) cannot assure long term 
public housing viability through reasonable revitalization, density 
reduction or broader range of resident incomes, and (3) cost more than 
Section 8 certificates or vouchers. These developments generally must 
be removed from the public housing inventory within five years. HUD 
will accept HA applications for Section 8 tenant-based assistance to 
relocate families of such developments. The implementation standards 
for mandatory conversion of distressed public housing will be provided 
in a separate notice.
2. Vacancy Consolidation
    This is an initiative to allow residents of partially occupied, 
obsolete public housing to have immediate, improved housing 
opportunities through the Section 8 program, while also providing 
improved public housing management, maintenance, and security at the 
HA. The improved management, maintenance and security will be achieved 
by the HA reducing the number of partially occupied obsolete public 
housing buildings.

C. Application Date

    HAs interested in obtaining FY 1996 Section 8 certificates or 
vouchers for public and Indian housing relocation or replacement 
purposes identified in Categories 1-6 above should submit a Section 8 
application to the HUD field office by ________ (45 days from date of 
notice publication).

D. Applications

1. Applications for Categories 1, 2, 3, or 6
    For these categories of funding, the application must include: (a) 
a Form HUD-52515, Funding Application for Section 8 Tenant-Based 
Assistance, (b) a statement identifying the public or Indian housing 
development being demolished or disposed and (c) whether there is any 
Section 8 funding previously provided by HUD to the HA for relocation 
or replacement that is no longer needed or Section 8 or other funding 
for relocation or replacement with respect to the same public housing 
units.
    The HA's demolition/disposition application must be submitted with 
the Section 8 application unless HUD has already approved the public or 
Indian housing demolition/disposition application or the application 
for demolition/disposition is being reviewed by HUD. HAs must 
simultaneously submit a copy of the demolition/disposition application 
to the appropriate HUD processing center. The HUD State or Area office 
(field Office) should complete a Section 8 fund reservation worksheet 
for each Section 8 application received, and forward each worksheet to 
the Operations Division in the Office of Rental Assistance in 
Headquarters with a cover memorandum indicating the status of the HA 
demolition/disposition request. No further HUD field office review of 
the Section 8 application is necessary except for initiating the 
Section 213 local government comment process.
    Section 8 funding will not be provided for relocation or 
replacement if funds for replacement, relocation or vacancy 
consolidation were previously provided (or will be provided) through 
the HOPE VI, public or Indian housing development, Section 8, or major 
reconstruction of obsolete projects (MROP) programs. If Section 8 
funding is provided for relocation of a resident from a public or 
Indian housing unit due to demolition, disposition or vacancy 
consolidation, there will be no additional Section 8 funding for 
replacement purposes. Additionally, if Section 8 funding previously 
provided for relocation or replacement is no longer needed, FY 1996 
Section 8 funding requests will be offset by the amount of funding no 
longer needed.
    2. Application for Category 4
    The application must include: (a) a Form HUD-52515, Funding 
Application for Section 8 Tenant-Based Assistance, (b) a statement 
identifying the public or Indian housing development affected by the 
mandatory conversion and (c) whether there is any Section 8 funding 
previously provided by HUD to the HA for relocation or replacement that 
is no longer needed.
    3. Applications for Category 5
    For Vacancy Consolidation requests, HAs must submit (a) a Form HUD-
52515, Funding Application Section 8 Tenant-Based Assistance, and (b) a 
vacancy consolidation application consisting of (i) a description of 
the partially vacant and deteriorated public housing building or 
developments, including the vacancy rate, for which vacancy 
consolidation is being requested; (ii) a statement indicating whether 
there is any Section 8 funding previously provided to the HA for 
relocation/replacement or vacancy consolidation that is no longer 
needed because of receipt of subsequent HOPE VI funding, a change of HA 
plans, or because residents do not need or have declined the offer of a 
certificate or a voucher; (iii) a certification that the PHA will 
submit an approvable vacancy consolidation plan to the HUD field office 
within three months of notification of approval of the Section 8 
application and after consultation with affected residents or their 
representatives, and promptly consolidate occupancy in particular 
buildings after departure of the residents and in accordance with the 
HUD approved vacancy consolidation plan; and (iv) any other information 
relevant to the vacancy consolidation application to be taken into 
consideration by HUD in determining the need for certificates or 
vouchers for vacancy consolidation.
    The field office should submit the vacancy consolidation 
application to the Office of Capital Improvements in Headquarters with 
a cover memorandum indicating the field office's evaluation comments, a 
recommendation whether to approve the application, and comments 
regarding the status of any previously approved vacancy consolidation 
certificates or vouchers. The HUD field office should complete a 
Section 8 fund reservation worksheet for each Section 8 application 
received, and forward this worksheet to the Operations Division in the 
Office of Rental Assistance in Headquarters. No further HUD field 
office review of the Section 8 application is necessary except for 
initiating the Section 213 local government comment process.

[[Page 37759]]

    Vacancy consolidation applications will be approved by HUD 
Headquarters based on HUD's judgement of the need for certificates or 
vouchers for vacancy consolidation. HUD will take into account, in its 
discretion, the magnitude of the deteriorated conditions faced by the 
HA; the availability of other means of addressing the problem (e.g., 
relocation of households into other public housing units); the local 
and national impact of the proposed initiative; and other relevant 
factors based on the expression of interest made available by the HA or 
known to HUD (including ability to implement the program).

II. Litigation (Approximately 2,500 Units)

    The Department will continue to provide funds for settlement of 
litigation. When negotiations of the litigation settlement are 
complete, Headquarters will notify the HUD field offices of the number 
of vouchers and/ or certificates to be provided to the HA. The HUD 
field office will invite Section 8 applications from the HAs eligible 
for these funds.

III. Section 23 Conversions (Approximately 1,000 Units)

    Headquarters will allocate certificate funds directly to the HUD 
field offices for tenant-based rental assistance to assist residents of 
Section 23 leased housing for which leased are expiring during FY 1996. 
An HA that has a Section 23 leased housing project with a lease 
expiring during FY 1996 should submit a Section 8 application to the 
HUD field office.

IV. Mainstream Housing Opportunities for Persons With Disabilities 
(Approximately 2,000 Units)

    As was done in FY 1995, HUD will provide vouchers and certificates 
to HAs to allow implementation of allocation plans for public housing 
developments designated for occupancy by elderly persons or persons 
with disabilities. The Department will publish a NOFA detailing the 
procedures for requesting Section 8 funding for designated housing. In 
order to be eligible to receive Section 8 units for a designated 
housing use, the HA must currently administer a Section 8 voucher or 
certificate program. Section 8 funding preference will be given to HAs 
with approved designated housing allocation plans that did not 
previously receive Section 8 funding for this purpose.
    The Housing Opportunity Program Extension Act of 1996 amended some 
of the statutory requirements for designated housing, including 
requirements concerning the submission and review of designated housing 
allocation plans. HUD will soon issue a notice specifying the 
designated housing program changes and providing additional information 
on allocation plan requirements.

V. Family Unification Program (Approximately 1,600 Units)

    On May 3, 1996, HUD published a NOFA soliciting applications for 
certificate funding for the family unification program. The funding 
will be provided by lottery to HAs in the sixteen states previously 
funded; California, Florida, Georgia, Illinois, Maryland, 
Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, 
North Carolina, Ohio, Pennsylvania, Texas, and Virginia.

VI. Relocation of Witnesses Involved in Law Enforcement and Criminal 
Prosecution (Approximately 200 Units)

    The Department will provide funding for vouchers or certificates to 
accommodate requests from law enforcement agencies for relocation 
assistance to families that have cooperated in efforts to combat crime 
in public, Indian, and other assisted housing. The process for using 
Section 8 certificates and vouchers for witness relocation purposes 
will be provided in a separate HUD administrative notice.

VII. FSS Service Coorindators

    Up to $9.2 million of the FY 1996 community development grant 
funding appropriated for supportive services will be used for FSS 
service coordinators. A separate NOFA will detail the application 
procedures for these funds.

VIII. Tenant-Based Assistance Under the Section 811 Supportive Housing 
for Persons With Disabilities Program (Approximately 2,300 Units)

    The Department will publish a NOFA detailing the procedures for 
requesting funding for tenant-based supportive housing for persons with 
disabilities. It is anticipated that HA Section 8 applications will be 
selected by lottery.

IX. Property Disposition Units (Approximately 1,300 Units)

    HUD Headquarters will assign funds for Section 8 tanant-based 
assistance directly to the HUD field offices to assist families living 
in a HUD-owned property when it is sold. HUD field office requests to 
Headquarters for funding under this category will be approved on a 
first-come, first-served basis.

X. Section 8 Counseling To Achieve Broader Housing Opportunities 
(Approximately $52 Million in Budget Authority)

    Headquarters may provide Section 8 counseling funding from FY 1995 
carryover funds to provide housing search assistance to certificate and 
voucher holders in connection with litigation, public housing 
relocation/replacement, and public housing vacancy consolidation 
activities. In addition, HUD may provide a portion of the funding 
available for Section 8 counseling activities to achieve broader 
housing opportunities. Housing agencies that are eligible for the 
special administrative fees for counseling activities will be notified 
by HUD.

XI. Section 8 Voucher and Certificate Renewals (Approximately 300,000 
Units and $3.8 Billion in Two-Year Budget Authority)

    HUD Headquarters will allocate funds directly to the HUD field 
offices for the renewal of voucher and certificate funding increments 
expiring in Fiscal Year 1996. Renewal funding will be provided on an 
``as-needed'' basis. Generally, Section 8 certificate funds will be 
provided for the renewal of moderate rehabilitation funding increments 
expiring in fiscal year 1996.

XII. Section 8 Cost Amendments (Approximately $213 Million in Budget 
Authority)

    HUD Headquarters will allocate certificate and moderate 
rehabilitation cost amendments within the original term of the housing 
assistance payments contracts or ACCs to provide budget authority 
increases to HA certificate and moderate rehabilitation programs. HUD 
Headquarters will allocate the funds on an ``as needed'' basis.

Other Matters

Environmental Finding

    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. The Finding of No Significant Impact is available for 
public inspection during regular business hours in the Office of 
General Counsel, the Rules Docket Clerk, Room 10276, 451 Seventh 
Street, SW, Washington, DC 20410.

Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained

[[Page 37760]]

in this notice 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. As a result, 
the notice is not subject to review under the Order. This notice is a 
funding notice and does not substantially alter the established roles 
of the Department, the States, and local governments, including HAs.

The Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for this program 
is 14.857 (Section 8 Rental Certificate Program).

Impact on the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this notice does not have 
potential for significant impact on family formation, maintenance, and 
general well-being within the meaning of the Executive Order and, thus, 
is not subject to review under the Order. This is a funding notice and 
does not alter program requirements concerning family eligibility.

    Dated: July 15, 1996.
Michael B. Janis,
General Deputy, Assistant Secretary for Public and Indian Housing.
[FR Doc. 96-18443 Filed 7-16-96; 3:34 pm]
BILLING CODE 4210-33-M