[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Proposed Rules]
[Pages 20234-20236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10463]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Chapter IX

[Docket No. FR-4423-N-02]


Capital Fund Rule; Notice of Establishment of Negotiated 
Rulemaking Committee and Notice of First Meeting

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

ACTION: Establishment of Negotiated Rulemaking Advisory Committee and 
notice of first meeting.

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SUMMARY: HUD announces the establishment of a negotiated rulemaking 
advisory committee under the Federal Advisory Committee Act. The 
establishment of the committee is required by the Quality Housing and 
Work Opportunity Act of 1998, which requires issuance of regulations 
under the Negotiated Rulemaking Act of 1990. The purpose of the 
Committee is to discuss and negotiate a proposed rule that would change 
the current method of determining the allocation of capital funds to 
public housing agencies (PHAs). The committee consists of 
representatives with a definable stake in the outcome of a proposed 
rule. This document announces the committee members and the dates, 
location, and agenda for the first committee meeting.

DATES: The first committee meeting will be held on April 28-29, 1999. 
On April 28, 1999, the meeting will start at approximately 10:00 am and 
run until completion; on April 29, 1999, the meeting will start at 9:00 
am and run until approximately 5:00 pm.

ADDRESSES: The first committee meeting will take place at the Tysons 
Corner Doubletree Hotel, 7801 Leesburg Pike, Falls Church, VA 22043; 
telephone (703) 893-1340.

FOR FURTHER INFORMATION CONTACT: William Flood, Director, Office of 
Capital Improvements, Public and Indian Housing, Room 4134, Department 
of Housing and Urban Development, 451 Seventh Street, SW, Washington, 
DC 20410-0500; telephone (202) 708-1640 ext. 4185 (this telephone 
number is not toll-free). Hearing or speech-impaired individuals may 
access this number via TTY by calling the toll-free federal Information 
Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    HUD currently uses a formula approach called the Comprehensive 
Grant Program (CGP) to distribute capital funds to large public housing 
agencies (PHAs) (i.e. PHAs with 250 units or more) and a competitive 
program called the Comprehensive Improvement Assistance Program (CIAP) 
for small PHAs (i.e., PHAs with less than 250 units). A regulatory 
description of the CGP and CIAP can be found at 24 CFR part 968. 
Generally, the amount of capital funding received by a PHA is based on 
the number of units, type of units, condition of its units, cost of 
construction in the area and prior funding. While the amount can vary, 
it is the only source of capital funding that most PHAs receive to make 
major capital investments in its public housing stock. For example, in 
1998, HUD distributed over $2.1 billion in capital funds for CGP and 
$307 million for CIAP to PHAs for 830 PHAs and over 900 PHAs 
respectively.
    On March 19, 1999 (64 FR 13533), HUD published a notice of intent 
to establish an advisory committee to discuss and negotiate a proposed 
rule that would change the current method of determining the allocation 
of capital funds to PHAs. The establishment of the committee is 
required by the Quality Housing and Work Responsibility Act of 1996 
(Pub.L. 105-276, approved October 21, 1998; 112 Stat. 2461) (the ``1998 
Act''). The 1998 Act makes extensive changes to HUD's public and 
assisted housing programs. These changes include the establishment of a 
Capital Fund for the purpose of making assistance available to PHAs for 
capital and management activities of public housing under Section 9(d) 
of the U.S. Housing Act of 1937, as amended.
    The 1998 Act requires that the assistance to be made available from 
the new Capital Fund be determined using a formula developed through 
negotiated rulemaking procedures. The basic

[[Page 20235]]

concept of negotiated rulemaking is to have the agency that is 
considering drafting a rule bring together representatives of affected 
interests for face-to-face negotiations that are open to the public. 
The give-and-take of the negotiation process is expected to foster 
constructive, creative and acceptable solutions to difficult problems. 
The effective date of the Capital Fund formula (the beginning date of 
the fiscal year for which PHAs will determine their capital eligibility 
using the new formula) is October 1, 1999. Accordingly, HUD hopes to 
publish a final rule that will take effect by October 1, 1999 to 
implement the Capital Fund formula.
    The March 19, 1999 notice: (1) advised the public of HUD's intent 
to establish the negotiated rulemaking committee; (2) solicited public 
comments on the proposed membership of the committee; and (3) explained 
how persons could be nominated for membership on the committee.

II. The Negotiated Rulemaking Advisory Committee

    This notice announces HUD's establishment of the Negotiated 
Rulemaking Advisory Committee on Capital Fund Allocation. As noted 
above, the March 19, 1999 notice tentatively identified a list of 
possible interests and parties to be represented on the negotiated 
rulemaking committee, and requested public comment on the proposed 
committee membership. The public comment period on the March 19, 1999 
notice closed on April 19, 1999. HUD has carefully considered the 13 
comments received on the proposed committee membership.
    The list of committee members includes representatives of PHAs, PHA 
organizations, tenant groups, public interest groups, and HUD. 
Additionally, two members of the Federal Mediation and Conciliation 
Service will serve as facilitators. The list of members for the 
Negotiated Rulemaking Advisory Committee on Capital Fund Allocation is 
as follows:

National PHA Associations

1. Council of Large Public Housing Authorities (CLPHA)
2. National Association of Housing Renewal Officials (NAHRO)
3. Public Housing Authority Directors Association (PHADA)
4. National Organization of African Americans in Housing (NOAAH)

Housing Authorities

1. Philadelphia Housing Authority, Philadelphia, PA
2. Chicago Housing Authority, Chicago, IL
3. Dallas Housing Authority, Dallas, TX
4. Puerto Rico Public Housing Administration, San Juan, PR
5. Seattle Housing Authority, Seattle, WA
6. New York City Housing Authority, New York, NY
7. Dayton Housing Authority, Dayton, OH
8. Jersey City Housing Authority, Jersey City, NJ
9. San Diego Housing Authority, San Diego, CA
10. Macon Housing Authority, Macon, GA
11. Sanford Housing Authority, Sanford, ME
12. Housing Authority of the City of San Benito, San Benito, TX
13. City of La Junta Housing Authority, La Junta, CO
14. Housing Authority of the Town of Laurinburg, Laurinburg, NC
15. Madison Housing Authority, Madison, NJ

Tenant and Community Organizations

1. Guinotte Manor Tenant Association, Kansas City, MO
2. Center for Community Change, Washington, DC
3. Hillside Family Resource Center, Milwaukee, WI
4. Mount Pleasant Estates Tenant Association, Newark, NJ

Other Groups

1. National Housing Conference
2. U.S. Conference of Mayors
3. Fannie Mae
4. National Low-Income Housing Coalition

Federal Government

1. U.S. Department of Housing and Urban Development

    HUD will also invite a group of technical advisors to assist, where 
appropriate, in Committee deliberations. This group consists of non-
profit and for-profit developers and other individuals who have had 
experience in mixed-finance development, the HOPE VI program, or other 
relevant experience.

III. First Committee Meeting

    The first meeting of the Negotiated Rulemaking Advisory Committee 
on Capital Fund Allocation will be held on April 28 and April 29, 1999. 
On April 28, 1999, the meeting will start at 10 am and run until 
completion; on April 29, 1999, the meeting will start at 9 am and run 
until approximately 5 pm. On both days, the meeting will take place at 
the Tysons Corner Doubletree Hotel, 7801 Leesburg Pike, Falls Church, 
VA 22043; telephone (703) 893-1340.
    The agenda planned for the meeting includes: (1) Orienting members 
to the negotiated rulemaking process; (2) establishing a basic set of 
understandings and ground rules (protocols) regarding the process that 
will be followed in seeking a consensus; and (3) discussion of the 
issues relating to the development of a Capital Fund formula.
    The meeting will be open to the public without advance 
registration. Public attendance may be limited to the space available. 
Members of the public may make statements during the meeting, to the 
extent time permits, and file written statements with the committee for 
its consideration. Written statements should be submitted to the 
address listed in the FOR FURTHER INFORMATION section of this document. 
Summaries of committee meetings will be available for public inspection 
and copying at the address in the same section.
    In accordance with the General Services Administration (GSA) 
regulations implementing the Federal Advisory Committee Act, HUD 
normally publishes a Federal Register meeting document at least 15 
calendar days before the date of an advisory committee meeting (see 41 
CFR 105-54.301(i)). The GSA regulations, however, also provide that an 
agency may give less than 15 days document if the reasons for doing so 
are included in the Federal Register meeting document. (See 41 CFR 105-
54.301(j).) Given the strict statutory deadline for implementation of 
the Capital Fund formula, HUD believes it is imperative that the 
negotiations for development of the formula begin as soon as possible. 
Failure to publish the Capital Fund final rule on a timely basis will 
delay the provision of capital funds to PHAs. Accordingly, rather than 
defer the start of the negotiations, HUD has decided to proceed with 
the committee meeting announced in the March 19, 1999 notice.

IV. Future Committee Meetings

    Decisions with respect to future meetings will be made at the first 
meeting and from time to time thereafter. Additional committee meetings 
are tentatively scheduled for May 11-12 and May 25-26, 1999, at a 
location within the Washington, DC area to be determined. Notices of 
future meetings will be published in the Federal Register.


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    Dated: April 21, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-10463 Filed 4-23-99; 8:45 am]
BILLING CODE 4210-33-P