[Federal Register Volume 62, Number 130 (Tuesday, July 8, 1997)]
[Proposed Rules]
[Page 36467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17688]


      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 62, No. 130 / Tuesday, July 8, 1997 / 
Proposed Rules  

[[Page 36467]]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service
Rural Business--Cooperative Service
Rural Utilities Service
Farm Service Agency

7 CFR Part 1944

RIN 0575-AB93


Processing Requests for Section 515 Rural Rental Housing (RRH) 
Loans, Exhibit A-8; Reopening of Comment Period

AGENCIES: Rural Housing Service, Rural Business--Cooperative Service, 
Rural Utilities Service, and Farm Service Agency, USDA.

ACTION: Reopening of comment period on proposed rule.

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SUMMARY: The Rural Housing Service (RHS) is reopening the comment 
period for proposed revisions to Exhibit A-8, Outline of A Professional 
Market Study, of the Section 515 RRH loans regulation. The proposed 
revisions were published in the Federal Register on January 17, 1996 
(61 FR 1153).

DATES: Written comments must be received on or before August 7, 1997.

ADDRESSES: Written comments may be submitted, in duplicate, to the 
Chief, Regulations and Paperwork Management Branch, U.S. Department of 
Agriculture, Stop 0743, 1400 Independence Avenue SW, Washington, D.C. 
20250. Comments may be submitted via the Internet by addressing them to 
``[email protected]'' and must contain the word ``market'' in the 
subject. All written comments will be available for public inspection 
at the above address during normal working hours.

FOR FURTHER INFORMATION CONTACT: Linda Armour, Senior Loan Specialist, 
Multi-Family Housing Processing Division, RHS, U.S. Department of 
Agriculture, Room 5349--South Building, Stop 0781, Washington, D.C. 
20250, telephone (202) 720-1608.

SUPPLEMENTARY INFORMATION:

Background

    On January 17, 1996, the Rural Housing Service published a proposed 
rule in the Federal Register (61 FR 1153), which included proposed 
changes to Exhibit A-8, Outline of a Professional Market Study, of 7 
CFR part 1944, subpart E. The final rule, which was subsequently 
published in the Federal Register on May 7, 1997 (62 FR 25071) did not 
include any of the proposed revisions to Exhibit A-8 for the reasons 
discussed later in this document. The final rule advised that the 
comment period would be reopened in a separate rulemaking document for 
the proposed revisions to Exhibit A-8 only.
    The proposed rule invited comments on the merits of changing the 
manner of calculating market demand in Exhibit A-8, Outline of a 
Professional Market Study. The current method of determining the number 
of units needed is based on an estimate of the change in income-
eligible renter households since the last census (projected for 2 years 
from the date of the study), plus 20 percent of renter households 
living in substandard housing and 20 percent of rent-overburdened 
households, minus units being developed or in the planning stages. The 
method presented in the proposed rule estimates the total current 
number of income-eligible households, minus the current stock of 
available comparable rental units and units being developed or planned. 
Only 2 commentors addressed this proposed change; one supported the 
change, the other opposed it.
    Since only 2 comments were received and because the opinions were 
divided, we feel this issue merits further consideration. We believe 
there are benefits to both of the methods discussed above. In addition, 
a third important indicator of demand is found by analyzing existing 
rental stock based on the number of single-family, mobile home, and 
multi-family rentals, a survey of existing multi-family rentals with 
their rent structure, current vacancy rates by unit size, length of 
rent-up, and the extent of waiting and inquiry lists. Therefore, we are 
considering an option whereby estimates of demand would be provided 
using all three methods; the recommended number of units would be based 
on the smaller number unless justification for a higher number could be 
demonstrated. We are inviting comments from all interested parties on 
these proposed changes.

    Dated: June 30, 1997.
Ronnie O. Tharrington,
Acting Administrator, Rural Housing Service.
[FR Doc. 97-17688 Filed 7-7-97; 8:45 am]
BILLING CODE 3410-XV-U