[Federal Register Volume 64, Number 6 (Monday, January 11, 1999)]
[Rules and Regulations]
[Pages 1504-1505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-443]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 5

[Docket No. FR-4321-F-05]
RIN 2501-AC49


Uniform Financial Reporting Standards for HUD Housing Programs; 
Technical Amendment

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

ACTION: Final rule; technical amendment.

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

SUMMARY: This final rule makes a technical amendment to HUD's 
regulations on Uniform Financial Reporting Standards, published on 
September 1, 1998. The amendment will change for certain entities whose 
fiscal years ends December 31st, as further described in the 
Supplementary Information section of this rule, the first financial 
report submission date from April 30, 1999 to June 30, 1999. The June 
30, 1999 report submission date is only for the first year of 
compliance with these standards.

DATES: Effective February 10, 1999.

FOR FURTHER INFORMATION CONTACT: For further information contact 
Kenneth Hannon, Office of Housing, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Room 6274, Washington, DC 20410; 
telephone (202) 708-0547, ext. 2599 (this is not a toll-free number). 
Persons with hearing or speech impairments may access that number via 
TTY by calling the Federal Information Relay Service at (800) 877-8399.

SUPPLEMENTARY INFORMATION: On September 1, 1998 (63 FR 46582), HUD 
published a final rule that established uniform annual financial 
reporting standards for HUD's Public Housing, Section 8 housing, and 
multifamily insured housing programs. The rule provides that the 
financial information already required to be submitted to HUD on an 
annual basis under these programs must be submitted electronically to 
HUD and must be prepared in accordance with generally accepted 
accounting principles.
    The September 1, 1998 final rule also established annual financial 
report filing dates. The rule provides for all covered entities an 
annual financial report submission date that is 60 days after the end 
of a covered entity's fiscal year. For the first year of compliance 
with the new standards, the September 1, 1998 rule provided an April 
30, 1999 annual report submission date for those entities that are:
    (1) Owners of housing assisted under Section 8 project-based 
housing assistance payments programs, described in Sec. 5.801(a)(3) of 
the new rule; or
    (2) Owners of multifamily projects receiving direct or indirect 
assistance from HUD, or with mortgages insured, coinsured, or held by 
HUD, including but not limited to housing under certain HUD programs 
described in Sec. 5.801(a)(4) of the new rule; and 
    (3) Have fiscal years ending December 31, 1998.
    The majority of non-public housing entities covered by this rule 
fall into the category of entities that will have reports due by April 
30, 1999. (Note that for public housing agencies (PHAs), the rule 
provides that compliance with the uniform financial reporting standards 
begins for PHAs with fiscal years ending September 30, 1999.)
    The April 30, 1999 date with its close proximity to the Federal 
income tax filing deadline makes conversion to the new reporting system 
and completion of the required report by April 30, 1999 burdensome for 
entities that must meet this deadline. Therefore, this final rule 
amends Sec. 5.801 to change the April 30, 1999 date to June 30, 1999. 
The June 30, 1999 report submission date is only for the first year of 
compliance with the standards. For covered entities whose fiscal years 
end December 31st, the report due for the year 2000 and the years that 
follow will be due 60 days after December 31st.

[[Page 1505]]

Other Matters

Justification for Final Rulemaking

    In general, the Department publishes a rule for public comment 
before issuing a rule for effect, in accordance with its own 
regulations on rulemaking at 24 CFR part 10. Part 10, however, does 
provide for exceptions from that general rule where the Department 
finds good cause to omit advance notice and public participation. The 
good cause requirement is satisfied when the prior public procedure is 
``impracticable, unnecessary, or contrary to the public interest'' (24 
CFR 10.1). The Department finds that good cause exists to publish this 
final rule for effect without first soliciting public comment, in that 
prior public procedure is unnecessary. Public procedure is unnecessary 
because this final rule simply makes a technical amendment to its 
uniform financial reporting standards regulations to change, for 
certain covered entities, an April 30, 1999 annual report submission 
date to June 30, 1999. The April 30, 1999 date with its proximity to 
the new Federal income tax filing deadline makes conversion to the new 
reporting system and completion of the required report by April 30, 
1999 burdensome for entities that must submit reports by that date. The 
regulatory amendment made by this rule, therefore, alleviates a burden 
for these entities. No policies or standards are changed by this 
rulemaking.

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 only makes 
a technical amendment to existing regulations by changing a reporting 
deadline for the first year of compliance with HUD's uniform financial 
reporting standards from April 30, 1999 to June 30, 1999. Although this 
change alleviates a burdensome requirement for covered entities and the 
covered entities include small entities, the rulemaking nevertheless 
does not result either adversely or beneficially in any significant 
economic impact on a substantial number of small entities.

Environmental Impact

    This final rule is exempt from the environmental review procedures 
under 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) because of the exemption under Sec. 50.19(c)(1). This final rule 
only makes a technical correction to existing regulations.

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. No programmatic or policy changes 
will result from this rule that would affect the relationship between 
the Federal Government and State and local governments.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the programs 
that would be affected by this rule are:

14.126--Mortgage Insurance--Cooperative Projects (Section 213)
14.129--Mortgage Insurance--Nursing Homes, Intermediate Care 
Facilities, Board and Care Homes and Assisted Living Facilities 
(Section 232)
14.134--Mortgage Insurance--Rental Housing (Section 207)
    14.135--Mortgage Insurance--Rental and Cooperative Housing for 
Moderate Income Families and Elderly, Market Rate Interest (Sections 
221(d)(3) and (4))
14.138--Mortgage Insurance--Rental Housing for Elderly (Section 231)
14.139--Mortgage Insurance--Rental Housing in Urban Areas (Section 220 
Multifamily)
14.157--Supportive Housing for the Elderly (Section 202)
14.181--Supportive Housing for Persons with Disabilities (Section 811)
14.188--Housing Finance Agency (HFA) Risk Sharing Pilot Program 
(Section 542(c))
14.850--Public Housing
14.851--Low Income Housing--Homeownership Opportunities for Low Income 
Families (Turnkey III)
14.852--Public Housing--Comprehensive Improvement Assistance Program
14.855--Section 8 Rental Voucher Program
14.856--Lower Income Housing Assistance Program--Section 8 Moderate 
Rehabilitation
14.857--Section 8 Rental Certificate Program
14.859--Public Housing--Comprehensive Grant Program

List of Subjects

24 CFR Part 5

    Administrative practice and procedure, Aged, Claims, Drug abuse, 
Drug traffic control, Grant programs--housing and community 
development, Grant programs--Indians, Individuals with disabilities, 
Loan programs--housing and community development, Low- and moderate-
income housing, Mortgage insurance, Pets, Public housing, Rent 
subsidies, Reporting and recordkeeping requirements.

    Accordingly, for the reasons stated in the preamble, title 24 of 
the CFR is amended as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

    1. The authority citation for 24 CFR part 5 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d), unless otherwise noted.

    2. Paragraph (c) of Sec. 5.801 is revised to read as follows;


Sec. 5.801  Uniform financial reporting standards.

* * * * *
    (c) Annual financial report filing dates. The financial information 
to be submitted to HUD in accordance with paragraph (b) of this 
section, must be submitted to HUD annually, no later than 60 days after 
the end of the fiscal year of the reporting period, and as otherwise 
provided by law. For entities listed in paragraphs (a)(3) and (4) of 
this section and that have fiscal years ending December 31, 1998, the 
report shall be due June 30, 1999. This extended report due date is 
only for entities listed in paragraphs (a)(3) and (4) of this section, 
and only for the first report due under this section.
* * * * *
    Dated: December 28, 1998.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 99-443 Filed 1-8-99; 8:45 am]
BILLING CODE 4210-32-P