[Federal Register Volume 61, Number 161 (Monday, August 19, 1996)]
[Rules and Regulations]
[Pages 42952-42954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21032]



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Part III





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 280



Streamlining of the Nehemiah Housing Opportunity Grants Program; Final 
Rule

  Federal Register / Vol. 61, No. 161 / Monday, August 19, 1996 / Rules 
and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 280

[Docket No. FR-4090-F-01]
RIN 2502-AG76


Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner; Streamlining of the Nehemiah Housing Opportunity Grants 
Program

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends HUD's regulations governing the 
Nehemiah Housing Opportunity Grants Program (NHOP). Congress is no 
longer authorizing grants under NHOP. Accordingly, this final rule 
removes HUD's obsolete regulations implementing NHOP from title 24. 
Those provisions which are necessary to the administration of existing 
NHOP grants will be retained. This rule will make HUD's regulations 
governing NHOP clearer and more concise.

EFFECTIVE DATE: September 18, 1996.

FOR FURTHER INFORMATION CONTACT: Richard K. Manuel, Office of Insured 
Single Family Housing, Room 9272, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC, 20410, telephone 
number (202) 708-2700. (This is not a toll-free telephone number.) 
Hearing- or speech-impaired individuals may access this number via TTY 
by calling the toll-free Federal Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    HUD's regulations at 24 CFR part 280 describe the requirements for 
the Nehemiah Housing Opportunity Grants Program (NHOP). Under the NHOP, 
HUD made grants to nonprofit organizations to be used to provide loans 
to families purchasing homes constructed or substantially rehabilitated 
in accordance with HUD approved programs. Section 289(a) of the 
National Affordable Housing Act (42 U.S.C. 12839) repealed the NHOP. 
Accordingly, HUD is no longer making new NHOP grants. This final rule 
removes the obsolete regulations at 24 CFR part 280. However, those 
regulatory provisions which are necessary to the administration of 
existing NHOP grants are being retained.
    For the convenience of readers, the following table summarizes the 
changes made by this final rule to 24 CFR part 280:

----------------------------------------------------------------------------------------------------------------
             Section                      Section title                   Summary of changes to section         
----------------------------------------------------------------------------------------------------------------
Sec.  280.1.....................  Applicability and Scope.....  Amended to reflect elimination of the NHOP.     
Sec.  280.5.....................  Definitions.................  Amended to remove obsolete definitions.         
Sec.  280.100...................  NHOP Assistance.............  Redesignated as Sec.  280.10. Amended to reflect
                                                                 elimination of the NHOP.                       
Sec.  280.103...................  Assistance under other HUD    Redesignated as Sec.  280.15.                   
                                   programs.                                                                    
Sec.  280.105...................  Program size................  Removed.                                        
Sec.  280.110...................  Program location............  Removed.                                        
Sec.  280.115...................  Home quality................  Redesignated as Sec.  280.20.                   
Sec.  280.200...................  Notice of fund availability.  Removed.                                        
Sec.  280.205...................  Application requirements....  Removed.                                        
Sec.  280.207...................  Other Federal requirements..  Redesignated as Sec.  280.25.                   
Sec.  280.210...................  Selection process...........  Removed.                                        
Sec.  280.215...................  Threshold requirements......  Removed.                                        
Sec.  280.220...................  Ranking criteria............  Removed.                                        
Sec.  280.225...................  Final selection.............  Removed.                                        
Sec.  280.300...................  Obligation of funds.........  Removed.                                        
Sec.  280.303...................  Grant agreement.............  Redesignated as Sec.  280.30.                   
Sec.  280.305...................  Minimum participation.......  Redesignated as Sec.  280.35.                   
Sec.  280.315...................  Eligible purchasers.........  Redesignated as Sec.  280.40.                   
Sec.  280.320...................  Sales contract and            Redesignated as Sec.  280.45. Amended to reflect
                                   downpayment requirements.     changes made by this final rule.               
Sec.  280.322...................  Loan requirements...........  Redesignated as Sec.  280.50. Amended to reflect
                                                                 changes made by this final rule.               
Sec.  280.330...................  Repayment of loan...........  Redesignated as Sec.  280.55.                   
Sec.  280.335...................  Funding amendments and        Redesignated as Sec.  280.60.                   
                                   deobligation of funds.                                                       
----------------------------------------------------------------------------------------------------------------

II. Justification for Final Rulemaking

    It is HUD's policy to publish rules for public comment before their 
issuance for effect, in accordance with its own regulations on 
rulemaking found at 24 CFR part 10. However, part 10 provides for 
exceptions to the general rule if HUD 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 final rule merely removes obsolete 
regulatory provisions from title 24. The rule does not establish or 
affect substantive policy. Therefore, prior public comment is 
unnecessary.

III. Findings and Certifications

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this final rule, and in so 
doing certifies that this rule will not have a significant economic 
impact on a substantial number of small entities. This rule merely 
streamlines regulations by removing obsolete provisions. Specifically, 
this rule removes HUD's outdated regulations at 24 CFR part 280, which 
govern participation in NHOP. HUD is only retaining those provisions 
which are necessary to the administration of existing NHOP grants. The 
final rule will have no adverse or disproportionate economic impact on 
small businesses.

Environmental Impact

    This rulemaking does not have an environmental impact. This 
rulemaking simply amends existing regulations by removing obsolete 
provisions and does not alter the environmental effect of the

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regulations being amended. A Finding of No Significant Impact with 
respect to the environment was made in accordance with HUD regulations 
in 24 CFR part 50 that implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time of 
development of the regulations implementing NHOP. This finding remains 
applicable to this rule and 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 General Counsel, Room 10276, Department of Housing and 
Urban Development, 451 Seventh Street, SW, Washington, DC.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that 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. This final rule removes the outdated 
regulations governing NHOP from title 24. No programmatic or policy 
changes will result from this rule that would affect the relationship 
between the Federal Government and State and local governments.

Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule will not have 
the potential for significant impact on family formation, maintenance, 
or general well-being, and thus is not subject to review under the 
Order. This final rule streamlines HUD's regulations governing NHOP at 
24 CFR part 280. Specifically, this rule removes outdated provisions 
from part 280. No significant change in existing HUD policies or 
programs will result from promulgation of this rule.

Unfunded Mandates Reform Act

    The Secretary has reviewed this rule before publication and by 
approving it certifies, in accordance with the Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal 
mandate that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year.

List of Subjects in 24 CFR Part 280

    Community development, Grant programs--housing and community 
development, Loan programs--housing and community development, Low and 
moderate income housing, Nonprofit organizations, Reporting and 
recordkeeping requirements.

    Accordingly, 24 CFR part 280 is amended as follows:

PART 280--NEHEMIAH HOUSING OPPORTUNITY GRANTS PROGRAM

    1. The authority citation for 24 CFR part 280 continues to read as 
follows:

    Authority: 12 U.S.C. 1715l note; 42 U.S.C. 3535(d).

    2. The headings for subparts A, B, C, and D are removed.
    3. Section 280.1 is amended by revising paragraph (a) to read as 
follows:


Sec. 280.1   Applicability and scope.

    (a) This part sets forth the requirements for existing grants under 
the Nehemiah Housing Opportunity Grants Program (NHOP). NHOP was 
established by title VI of the Housing and Community Development Act of 
1987 (12 U.S.C. 1715l). Under NHOP, HUD made grants to nonprofit 
organizations to be used to provide loans to families purchasing homes 
constructed or substantially rehabilitated in accordance with a HUD 
approved program. NHOP was repealed by Section 289(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12839). 
Accordingly, no new grants are being awarded under the program.
* * * * *


Sec. 280.5   [Amended]

    4. Section 280.5 is amended by removing the definitions of 
``Applicant'', ``Contiguous parcels of land'', and ``Financial and 
other contributions to the program.''


Sec. 280.100   [Redesignated]

    5. Section 280.100 redesignated as Sec. 280.10 and is revised to 
read as follows:


Sec. 280.10   NHOP assistance.

    Recipients may only use assistance under this part to provide loans 
to families purchasing homes constructed or substantially rehabilitated 
in accordance with an approved program.


Sec. 280.103   [Redesignated]

    6. Section 280.103 is redesignated as Sec. 280.15.


Secs. 280.105 and 280.110   [Removed]

    7. Sections 280.105 and 280.110 are removed.


Sec. 280.115   [Redesignated]

    8. Section 280.115 is redesignated as Sec. 280.20.


Secs. 280.200 and 280.205   [Removed]

    9. Sections 280.200 and 280.205 are removed.


Sec. 280.207   [Redesignated]

    10. Section 280.207 is redesignated as Sec. 280.25.


Secs. 280.210, 280.215, 280.220, 280.225, and 280.300   [Removed]

    11. Sections 280.210, 280.215, 280.220, 280.225, and 280.300 are 
removed.


Sec. 280.303   [Redesignated]

    12. Section 280.303 is redesignated as Sec. 280.30.


Sec. 280.305   [Redesignated]

    13. Section 280.305 is redesignated as Sec. 280.35 and amended by 
revising the introductory text to read as follows:


Sec. 280.35   Minimum participation.

    Except as provided in paragraph (a) or (b) of this section, the 
recipient may not begin the construction or substantial rehabilitation 
of homes until 25 percent of the homes to be constructed or 
substantially rehabilitated under the program are contracted for sale 
to purchasers who intend to live in the homes and the downpayments 
required under Sec. 280.45(b) have been made.
* * * * *


Sec. 280.315   [Redesignated]

    14. Section 280.315 is redesignated as Sec. 280.40.


Sec. 280.320   [Redesignated]

    15. Section 280.320 is redesignated as Sec. 280.45 and amended by 
revising paragraphs (a)(2) and (b)(2) to read as follows:


Sec. 280.45   Sales contract and downpayment requirements.

    (a) * * *
    (2) The repayment provisions described in Sec. 280.55 of this part.
* * * * *
    (b) * * *
    (2) Date of downpayment. The downpayment must be made on the date 
required by the recipient. Under Sec. 280.35, however, no construction 
or rehabilitation may be begun until at least 25 percent of the homes 
constructed or substantially rehabilitated under the program are 
contracted for sale to purchasers who intend to live in the homes and 
the downpayments are made.
* * * * *
    16. Section 280.322 is redesignated as Sec. 280.50 and amended by 
revising

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paragraphs (a)(4) and (a)(6) to read as follows:


Sec. 280.50   Loan requirements.

    (a) * * *
    (4) Is repayable to HUD upon the sale, lease, or other transfer of 
the property; except, as an alternative, the nonprofit organization may 
elect to provide the Homeowner Incentive under Sec. 280.55(c) for 
subsequent sale or transfer of the property (the Homeowner Incentive is 
not available upon the lease of the property).
* * * * *
    (6) May not be used by the family to provide the downpayment 
required under Sec. 280.45.
* * * * *


Sec. 280.330   [Redesignated]

    17. Section 280.330 is redesignated as Sec. 280.55.


Sec. 280.335   [Redesignated]

    18. Section 280.335 is redesignated as Sec. 280.60.

    Dated: August 6, 1996.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 96-21032 Filed 8-16-96; 8:45 am]
BILLING CODE 4210-27-P