[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