[Federal Register Volume 62, Number 61 (Monday, March 31, 1997)]
[Proposed Rules]
[Pages 15346-15349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7999]



[[Page 15345]]

_______________________________________________________________________

Part VII





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Parts 882 and 982



Housing Opportunity Program Extension Act of 1996 Implementation 
Provisions and Section 8 Certificate, Voucher, and Moderate 
Rehabilitation Admission and Occupancy Policies Revisions; Proposed 
Rule

  Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / 
Proposed Rules  

[[Page 15346]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 882 and 982

[Docket No. FR-4159-P-01]
RIN 2577-AB72


Implementing Provisions of the Housing Opportunity Program 
Extension Act of 1996; and Revising Section 8 Certificate, Voucher, and 
Moderate Rehabilitation Admission and Occupancy Policies

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

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would amend the admission and occupancy 
requirements for the Section 8 Rental Certificate, Rental Voucher, and 
Moderate Rehabilitation Programs as follows: Make certain applicants 
ineligible for admission if evicted from housing assisted under the 
United States Housing Act of 1937; Terminate assistance to tenant-based 
certificate and voucher participants evicted for serious lease 
violations; Screen out illegal drug users and alcohol abusers; and 
Terminate assistance to illegal drug users and alcohol abusers.

DATES: Comment due date: May 30, 1997.

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

FOR FURTHER INFORMATION CONTACT: Madeline Hastings, Associate Deputy 
Assistant Secretary for the Office of Public and Assisted Housing 
Operations, Room 4228, Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington, DC 20410; telephone number (202) 708-
1842. (This telephone number is not toll-free.) For hearing- and 
speech-impaired persons, this number may be accessed via text telephone 
(TTY) by calling the Federal Information Relay Service at (800) 877-
8339.

SUPPLEMENTARY INFORMATION:

I. Statutory Change and Related Change to Bar Admission of Certain 
Evicted Tenants

    The statutory foundation for the Section 8 program is the United 
States Housing Act of 1937 (42 U.S.C. 1437a et seq.) (the Act). On 
March 28, 1996, the Act was amended by the Housing Opportunity Program 
Extension Act of 1996 (Pub. L. 104-120; 110 Stat. 834) (the Extension 
Act). It makes an individual who has been evicted from housing assisted 
under the United States Housing Act of 1937 (public housing, Indian 
housing, Section 23, or any Section 8 program) for drug-related 
criminal activity ineligible for admission to Section 8 housing for a 
3-year period beginning from the date of the eviction. The Public 
Housing Agency (HA) has the discretion, however, to determine that the 
evicted individual's family is eligible for admission if the HA 
determines that the evicted individual has successfully completed a 
rehabilitation program approved by the HA or that the circumstances 
leading to the eviction no longer exist (e.g., the individual involved 
in drugs is no longer in the household because of incarceration). In 
this proposed rule, HUD would interpret the 3-year period to be at 
least 3 years, so that an HA can determine the period of time it 
believes reasonable for particular types of drug-related criminal 
activity, as long as that period is at least 3 years long.
    The Extension Act also requires HAs to establish standards for 
prohibiting occupancy in any Section 8 unit by any person who the HA 
determines is illegally using a controlled substance, or whose pattern 
of illegal use of a controlled substance or pattern of alcohol abuse 
would interfere with the health, safety, or right to peaceful enjoyment 
of the premises by other residents of the project. In this connection, 
the Extension Act authorizes the HA administering the program to 
determine whether an applicant has been rehabilitated from drug or 
alcohol abuse.
    In this proposed rule, HUD also proposes two related changes for 
tenants evicted from assisted housing: (1) Tenants evicted from housing 
assisted under the United States Housing Act of 1937 for serious lease 
violations would be ineligible for admission to units assisted under 
the Section 8 Rental Certificate, Rental Voucher, and Moderate 
Rehabilitation Programs for an appropriate period of time; and (2) 
Section 8 tenant-based certificate and voucher participants evicted for 
serious lease violations would be ineligible for continued assistance 
by the HA. For example, families evicted for a serious lease violation 
(such as committing crimes against persons or property or other acts 
that affect the health, safety, or right to peaceful enjoyment of the 
premises by other residents) would be barred from admission to Section 
8 housing for a specified period and, if applicable, be terminated from 
the Rental Certificate or Voucher Program. HUD is also proposing a 
similar requirement for the public housing program barring the 
admission of residents evicted from housing assisted under the United 
States Housing Act of 1937 for serious lease violations. These 
proposals would facilitate efforts by HUD and HAs to eliminate crime 
and to impose tougher expectations on Federally assisted tenants, 
holding them responsible for their actions.
    In order to determine the eligibility of an applicant under this 
proposed rule, an HA needs to know whether the applicant was evicted 
from housing assisted under the U.S. Housing Act of 1937 and whether 
the eviction involved drug-related criminal activity. HUD is 
specifically requesting public comment on ways HAs can share this 
information with each other, and the best means to obtain information 
on evictions from privately owned assisted projects such as Section 8 
new construction projects.

II. Regulatory Reinvention

    Consistent with Executive Order 12866 and President Clinton's 
memorandum of March 4, 1995 to all Federal departments and agencies on 
the subject of Regulatory Reinvention, HUD is reviewing all its 
regulations to determine whether they can be eliminated, streamlined, 
or consolidated with other regulations. As part of this review, this 
proposed rule, at the final rule stage, may undergo revisions in 
accordance with the President's regulatory reform initiatives. In 
addition to comments on the substance of these regulations, HUD 
welcomes comments on how this proposed rule may be made more 
understandable and less burdensome.

III. Findings and Certifications

A. Paperwork Reduction Act

    The proposed information collection requirements contained at 
Secs. 882.514(g) and 982.553(b) of this rule have been submitted to the 
Office of Management and Budget (OMB) for review, under section 3507(d) 
of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

[[Page 15347]]

    In accordance with 5 CFR 1320.5(a)(1)(iv), the Department is 
setting forth the following concerning the proposed collection of 
information:
    (1) Title of the information collection proposal: Implementing 
Provisions of the Housing Opportunity Program Extension Act of 1996; 
and Revising Section 8 Certificate, Voucher, and Moderate 
Rehabilitation Admission and Occupancy Policies.
    (2) Summary of the collection of information: HAs have local 
admission and subsidy termination policies that detail when applicants 
are eligible, how applicants are selected, waiting list management, 
denial of assistance to applicants, and termination of assistance to 
participants. This rulemaking requires HAs to (1) deny admission 
because of drug-related criminal activity and certain evictions from 
housing assisted under the 1937 Housing Act, (2) terminate assistance 
when a family is evicted from a tenant-based subsidy unit for serious 
lease violations, and (3) establish admission and termination standards 
concerning drug use and alcohol abuse.
    (3) Description of the need for the information and its proposed 
use: The information collected is needed to assure that subsidy is only 
provided to eligible families, and to monitor compliance with HUD 
Section 8 program admission and termination requirements authorized by 
statute.
    (4) Description of the likely respondents, including the estimated 
number of likely respondents, and proposed frequency of response to the 
collection of information: Respondents will be the 2500 HAs 
administering the Section 8 program. The proposed frequency of 
responses is once annually.
    (5) Estimate of the total reporting and recordkeeping burden that 
will result from the collection of information: HA admission and 
termination policies are contained in the HA administrative plan. When 
an HA first begins to administer the Section 8 program, the HA develops 
an administrative plan in conjunction with its first funding 
application. Thereafter, the HA updates the administrative plan 
periodically on an as-needed basis (estimated not to exceed an average 
of once a year). HUD approval of the administrative plan is not 
required and it is maintained locally. Additional burden to HAs 
required by this rule is minimal since the collections are a part of 
the day-to-day operation of the HAs, the rule simply requires HAs to 
consider additional factors when making admission and termination 
determinations, HAs already update the administrative plan periodically 
to reflect new statutory requirements and changes in local policies, 
and the collection requirements for the administrative plan are already 
included in the burden hours attributed to preparing a funding 
application and periodically updating the administrative plan. The 
reporting and recordkeeping burden for the application form HUD-52515 
(which includes the administrative plan) were previously approved by 
the Office of Management and Budget (OMB), and assigned OMB control 
number 2577-0169, as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                   Est. avg.                    
                                                 Number of         Freg. of      response time     Est. annual  
                                                respondents        response         (Hours)       burden (Hrs.) 
----------------------------------------------------------------------------------------------------------------
Reporting Burden............................           2,500                1              2.0             5000 
                                                                                                ----------------
    Total Reporting Burden..................  ...............  ...............  ...............            5000 
----------------------------------------------------------------------------------------------------------------

B. Regulatory Review

    The Office of Management and Budget (OMB) reviewed this proposed 
rule under Executive Order 12866, Regulatory Planning and Review, 
issued by the President on September 30, 1993. OMB determined that this 
rule is a ``significant regulatory action,'' as defined in section 3(f) 
of the Order (although not economically significant, as provided in 
section 3(f)(1) of the Order). Any changes made in this rule subsequent 
to its submission to OMB are identified in the docket file, which is 
available for public inspection between 7:30 a.m. and 5:30 p.m. 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.

C. Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this proposed rule, and in so 
doing certifies that this proposed rule would not have a significant 
economic impact on a substantial number of small entities. While this 
rule would amend occupancy and tenant selection policies in the Section 
8 Rental Certificate, Rental Voucher, and Moderate Rehabilitation 
Programs, it would not have a significant economic impact on small 
entities.

D. Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been 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). This Finding is available for public inspection 
between 7:30 a.m. and 5:30 p.m. weekdays in the office of the Rules 
Docket Clerk, Office of General Counsel, Room 10276, Department of 
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC.

E. Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this proposed rule would 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, this proposed rule is not subject to review under the 
Order. The proposed rule would merely implement statutory and related 
requirements with respect to admission and occupancy of housing funded 
by the Federal Government.

F. Impact on the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this proposed rule would 
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 proposed rule would increase the safety and 
security of families living in assisted housing. Since the impact of 
this proposed rule on the family would be beneficial, no further review 
is considered necessary.

G. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4;

[[Page 15348]]

approved March 22, 1995) (UMRA) establishes requirements for Federal 
agencies to assess the effects of their regulatory actions on State, 
local, and tribal governments, and the private sector. This proposed 
rule would not impose any Federal mandates on any State, local, or 
tribal governments, or on the private sector, within the meaning of the 
UMRA.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the programs 
that would be affected by this proposed rule are 14.855 (Vouchers), 
14.856 (Moderate Rehabilitation) and 14.857 (Certificates).

List of Subjects

24 CFR Part 882

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

24 CFR Part 982

    Grant programs--housing and community development, Housing, Rent 
subsidies, Reporting and recordkeeping requirements.

    Accordingly, for the reasons stated in the preamble, parts 882 and 
982 of title 24 of the Code of Federal Regulations, are proposed to be 
amended as follows:

PART 882--SECTION 8 CERTIFICATE AND MODERATE REHABILITATION 
PROGRAMS

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

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

    2. In Sec. 882.413, paragraph (b) is amended by adding a new 
sentence after the first sentence, to read as follows:


Sec. 882.413  Responsibility of the Family.

* * * * *
    (b) * * * No Family member may abuse alcohol in a way that may 
interfere with the health, safety, or right to peaceful enjoyment of 
the premises by other residents. * * *
* * * * *
    3. Section 882.514 is amended as follows:
    a. By revising paragraph (a)(2);
    b. By redesignating paragraph (a)(3) as paragraph (a)(4);
    c. By adding a new paragraph (a)(3);
    d. By revising paragraph (g); and
    e. By adding a new paragraph (h); to read as follows:


Sec. 882.514  Family participation.

    (a) * * *
    (2) A Family is ineligible for admission if:
    (i) The Family contains any Family member evicted from housing 
assisted under the 1937 Act for drug-related criminal activity during a 
reasonable time period specified by the PHA, which is not less than 3 
years from the date of the eviction. Notwithstanding the immediately 
preceding sentence, the PHA may, in its discretion, determine that the 
Family is eligible for admission if the PHA determines that the evicted 
Family member who was engaged in drug-related criminal activity has 
successfully completeed a rehabilitation program approved by the PHA or 
that the circumstances leading to the eviction no longer exist (e.g., 
the evicted Family member involved in drugs is no longer in the 
household because of incarceration); or
    (ii) The Family contains any Family member evicted from housing 
assisted under the 1937 Act for other serious violation of the lease 
during a reasonable time period specified by the PHA, unless the PHA 
determines that the circumstances leading to the eviction no longer 
exist.
    (3) A PHA may determine to deny assistance to an applicant Family 
because one or more Family members have engaged in violent criminal 
activity or drug-related criminal activity as defined in Sec. 882.413, 
illegal use of a controlled substance, or abuse of alcohol that may 
interfere with the health, safety, or right to peaceful enjoyment of 
the premises by other residents. See paragraph (g) of this section.
* * * * *
    (g) Considerations in certain denials and terminations. (1) The PHA 
must establish standards for denying program assistance if the PHA 
determines that:
    (i) Any Family member is illegally using a controlled substance; or
    (ii) There is reasonable cause to believe that a Family member's 
illegal use or pattern of illegal use of a controlled substance or 
abuse or pattern of abuse of alcohol may interfere with the health, 
safety, or right to peaceful enjoyment of the premises by other 
residents.
    (2) The PHA must establish standards for determining whether to 
terminate program assistance if the PHA determines that:
    (i) Any Family member is illegally using a controlled substance; or
    (ii) A Family member's use of a controlled substance or abuse of 
alcohol interferes with the health, safety, or right to peaceful 
enjoyment of the premises by other residents.
    (3) In determining whether to deny or terminate program assistance 
for illegal use or pattern of use of a controlled substance or for 
abuse or a pattern of abuse of alcohol, by a Family member, the PHA may 
consider whether the person:
    (i) Is no longer engaging in illegal use of a controlled substance 
or in abuse of alcohol (as applicable); or
    (ii) Has successfully completed a supervised drug or alcohol 
rehabilitation program (as applicable), has otherwise been 
rehabilitated successfully, or is participating in a supervised drug or 
alcohol rehabilitation program (as applicable).
    (4) The PHA may require a Family member who has engaged in the 
illegal use of a controlled substance, or in alcohol abuse activity 
that interfered with the health, safety, and peaceful enjoyment of the 
premises by other residents, to submit evidence of participation in, or 
successful completion of, a supervised drug or alcohol rehabilitation 
program (as applicable) as a condition to being allowed to reside in 
the unit.
    (5) At any time, the HA may deny program assistance to an applicant 
or terminate program assistance to a participant Family if the PHA 
determines that any Family member has engaged in drug-trafficking or 
violent criminal activity. In determining whether to deny or terminate 
program assistance based on drug-related criminal activity, violent 
criminal activity, or alcohol abuse, the PHA may deny or terminate 
program assistance if the preponderance of evidence indicates that a 
Family member has engaged in such activity, regardless of whether the 
Family member has been arrested or convicted.
    (h) Inapplicability to a program administered by an IHA. Paragraphs 
(a)(2)(i) and (g)(1) through (g)(5) of this section are not applicable 
to a program administered by an IHA.

PART 982--TENANT-BASED ASSISTANCE UNDER THE SECTION 8 RENTAL 
CERTIFICATE PROGRAM AND THE SECTION 8 RENTAL VOUCHER PROGRAM

    4. The authority citation for part 982 continues to read as 
follows:

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

    5. In Sec. 982.201, paragraph (a) is revised to read as follows:


Sec. 982.201  Eligibility.

    (a) When applicant is eligible: general. (1) The HA may only admit 
an eligible family to a program. To be eligible, the

[[Page 15349]]

applicant must be a ``family'', must be income-eligible, and the 
members of the family must be citizens or noncitizens who have eligible 
immigration status as determined in accordance with 24 CFR part 5.
    (2) The family must not contain any family member evicted from 
housing assisted under the 1937 Act for drug-related criminal activity 
during a reasonable time period specified by the HA, which is not less 
than 3 years from the date of the eviction. Notwithstanding the 
immediately preceding sentence, the HA may, in its discretion, 
determine that the family is eligible for admission if the HA 
determines that the evicted family member who was engaged in drug-
related criminal activity has successfully completed a rehabilitation 
program approved by the HA or that the circumstances leading to the 
eviction no longer exist (e.g., the individual involved in drugs is no 
longer in the household because the person is incarcerated).
    (3) The family must not contain any family member evicted from 
housing assisted under the 1937 Act for other serious violation of the 
lease during a reasonable time period specified by the HA, unless the 
HA determines that the circumstances leading to the eviction no longer 
exist.
    (4) Paragraph (a)(2) of this section is not applicable to a program 
administered by an IHA.
* * * * *
    6. Section 982.551 is amended by redesignating paragraph (m) as 
paragraph (n), and by adding a new paragraph (m), to read as follows:


Sec. 982.551  Obligations of participant.

* * * * *
    (m) Alcohol abuse by family members. The members of the family may 
not abuse alcohol in a way that may interfere with the health, safety, 
or right to peaceful enjoyment of the premises by other residents.
* * * * *
    7. Section 982.552 is amended as follows:
    a. By removing paragraph (b)(2);
    b. By redesignating paragraphs (b)(3) through (b)(10) as paragraphs 
(b)(2) through (b)(9), respectively;
    c. By redesignating paragraph (f) as paragraph (h); and
    d. By adding new paragraphs (f) and (g); to read as follows:


Sec. 982.552  HA denial or termination of assistance for family.

* * * * *
    (f) Eviction from 1937 Act housing: Requirement to deny admission. 
See Sec. 982.201(a) for a statement of the circumstances in which the 
HA must deny program assistance for an applicant if any family member 
has been evicted from housing assisted under the 1937 Act.
    (g) Eviction for serious lease violation: Requirement to terminate 
assistance. The HA must terminate program assistance for a participant 
family (i.e., all family members) if the family is evicted from housing 
assisted under the program for serious violation of the lease.
* * * * *
    8. Section 982.553 is revised to read as follows:


Sec. 982.553  Crime or alcohol abuse by family members.

    (a) Drug-trafficking or violent criminal activity: Authority to 
deny admission or terminate assistance. At any time, the HA may deny 
program assistance to an applicant or terminate program assistance to a 
participant family if the HA determines that any family member has 
engaged in drug-trafficking or violent criminal activity.
    (b) Illegal drug use and alcohol abuse: Requirement to establish 
standards for denial of admission or termination of assistance. (1) The 
HA must establish standards for denying program assistance if the HA 
determines that:
    (i) Any family member is illegally using a controlled substance; or
    (ii) There is reasonable cause to believe that a family member's 
illegal use or pattern of illegal use of a controlled substance or 
abuse or pattern of abuse of alcohol may interfere with the health, 
safety, or right to peaceful enjoyment of the premises by other 
residents.
    (2) The HA must establish standards for determining whether to 
terminate program assistance if the HA determines that:
    (i) Any family member is illegally using a controlled substance; or
    (ii) A family member's use of a controlled substance or abuse of 
alcohol interferes with the health, safety, or right to peaceful 
enjoyment of the premises by other residents.
    (3) In determining whether to deny or terminate program assistance 
for illegal use or pattern of use of a controlled substance or for 
abuse or pattern of abuse of alcohol by a family member, the HA may 
consider whether the person:
    (i) Is no longer engaging in illegal use of a controlled substance 
or in abuse of alcohol (as applicable); or
    (ii) Has successfully completed a supervised drug or alcohol 
rehabilitation program (as applicable), has otherwise been 
rehabilitated successfully, or is participating in a supervised drug or 
alcohol rehabilitation program (as applicable).
    (4) The HA may require a family member who has engaged in the 
illegal use of a controlled substance, or in alcohol abuse activity 
that interfered with the health, safety, and peaceful enjoyment of the 
premises by other residents, to submit evidence of current 
participation in, or successful completion of, a supervised drug or 
alcohol rehabilitation program (as applicable) as a condition to being 
allowed to reside in the unit.
    (c) Eviction for drug-related criminal activity from 1937 Act 
housing: Requirement to deny admission. See Sec. 982.201(a) for a 
statement of the circumstances in which the HA must deny program 
assistance for an applicant if any family member has been evicted from 
housing assisted under the 1937 Act for drug-related criminal activity.
    (d) Evidence of criminal activity or alcohol abuse. In determining 
whether to deny or terminate program assistance based on drug-related 
criminal activity, violent criminal activity, or alcohol abuse, the HA 
may deny or terminate program assistance if the preponderance of 
evidence indicates that a family member has engaged in such activity, 
regardless of whether the family member has been arrested or convicted.
    (e) Inapplicability to a program administered by an IHA. Paragraph 
(b) of this section is not applicable to a program administered by an 
IHA.

    Dated: March 4, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 97-7999 Filed 3-28-97; 8:45 am]
BILLING CODE 4210-33-P