[Federal Register Volume 64, Number 121 (Thursday, June 24, 1999)]
[Rules and Regulations]
[Pages 33754-33755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16134]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 5
[Docket No. FR-4321-F-06]
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.
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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 provide a delayed submission date
for the first annual financial report required by all multifamily
entities subject to these standards. The delayed submission date is
only for the first year of compliance with HUD's uniform financial
reporting standards.
DATES: Effective July 26, 1999.
FOR FURTHER INFORMATION CONTACT: For further information contact James
Martin, Real Estate Assessment Center, Department of Housing and Urban
Development, 1280 Maryland Avenue, SW, Suite 800, Washington, DC 20410;
telephone Customer Service Center 1-888-245-4860. Persons with hearing
or speech impairments may access that number via TTY by calling the
Federal Information Relay Service at 1-800-877-8399. (Both telephone
numbers are toll free numbers).
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 financial 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.)
On January 11, 1999 (64 FR 1504), HUD amended the September 1, 1998
rule to change the April 30, 1999 due date to June 30, 1999, to provide
additional time for participants (subject to the April 30, 1999 report
deadline) to convert to the new reporting system and to complete the
first annual financial report.
All entities subject to HUD's uniform financial reporting
requirements, (including those entities provided the deferred date of
June 30, 1999) advise of the necessity for additional time for
successful conversion to the new reporting system. For this first year
with HUD's new financial reporting system, HUD has agreed to provide
additional time. This technical amendment provides for delayed report
submission dates as shown in the regulatory text.
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 provide, for
covered entities, for a delayed submission date for the first financial
report due under HUD's uniform financial reporting standards. HUD
acknowledges that conversion to the new reporting system and completion
of the required report involves more time than originally contemplated
for these entities. 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. 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
[[Page 33755]]
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 in 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. (1) 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.
(2) For entities listed in paragraphs (a) (3) and (4) of this
section, the first annual financial report shall be due on the date
provided in this paragraph (2), or at such later date that HUD may
provide through notice. This delayed submission date is only for the
first year of compliance with the requirements of this section:
(i) For entities with fiscal years ending December 31, 1998, the
first annual financial report shall be due August 31, 1999;
(ii) For entities with fiscal years ending in January through April
1999, the first annual financial report shall be due August 31, 1999;
(iii) For entities with fiscal years ending in May through November
1999, the first annual financial report shall be due 120 days after the
end of the applicable fiscal year end date.
* * * * *
Dated: June 18, 1999.
William C. Apgar,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 99-16134 Filed 6-21-99; 4:34 pm]
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