[Federal Register Volume 64, Number 151 (Friday, August 6, 1999)]
[Notices]
[Pages 42956-42957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20298]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4434-N-03]


Public Housing Rent Policies; Guidance Pending Publication of 
Final Rule on Admissions and Occupancy Requirements

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

ACTION: Guidance.

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SUMMARY: This document provides guidance on certain admissions and 
occupancy requirements for those public housing agencies that must 
implement changes in the United States Housing Act of 1937 regarding 
rents that are effective October 1, 1999.

DATES: Effective Date: August 6, 1999.

FOR FURTHER INFORMATION CONTACT: Patricia Arnaudo, Senior Program 
Manager, Office of Public and Assisted Housing Delivery, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 4112,

[[Page 42957]]

Washington, DC, 20410; telephone (202) 708-0744, or the Public and 
Indian Housing Resource Center at 1-800-955-2232. (With the exception 
of the telephone number for the PIH Resource Center, these are not 
toll-free telephone numbers.) Persons with hearing or speech 
impairments may access these numbers via TTY by calling the Federal 
Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

Background

    On February 18, 1999 (64 FR 8192), HUD published a Notice of 
Initial Guidance on the Quality Housing and Work Responsibility Act of 
1998 (Pub.L. 105-276, 112 Stat. 2461, approved October 21, 1998) (the 
``Public Housing Reform Act''). The Public Housing Reform Act makes 
significant changes to the rents charged for public housing units (see 
sections 508 and 523 of the statute). These changes are the subject of 
HUD's rulemaking on ``Changes to Admission and Occupancy Requirements 
in Pubic Housing and Section 8 Housing Assistance Programs.'' HUD's 
proposed rule on this subject was published on April 30, 1999 (64 FR 
23460), and the 60-day public comment period on this rule closed on 
June 29, 1999. Certain provisions of the Public Housing Reform Act are 
effective October 1, 1999, notwithstanding whether HUD has issued rules 
for effect on these statutory provisions. The statutory provisions that 
become effective October 1, 1999, include the changes to rents charged 
for public housing units.
    HUD realizes the importance of this April 30, 1999 rule to public 
housing agencies (PHAs) in setting and describing their rent policies, 
as required by the PHA plans. HUD is making every effort to complete 
this rulemaking as quickly as possible, but believes that given the 
time to carefully review, consider and address the public comments 
received on the April 30, 1999 proposed rule, the earliest publication 
date will probably occur near the end of August. HUD recognizes that an 
end-of-August publication may not provide sufficient time for PHAs to 
obtain the guidance they need to put these rent provisions into effect 
for new admissions, re-examinations, and recertifications after October 
1, 1999. Therefore, HUD is issuing this guidance now on rent 
determinations.

Guidance on Rent Provisions

    1. As indicated in HUD's Notice of Initial Guidance, published 
February 18, 1999, the new rent provisions are effective for families 
as they are admitted, re-examined or recertified, on or after October 
1, 1999.
    2. In determining annual income and adjusted income (e.g., required 
earned income disallowance or the alternative individual savings 
account, exclusions versus deductions, permissive deductions) for such 
families, Secs. 5.603, 5.611, 5.612 and 5.614(a)(2) and the 
corresponding sections of the preamble to the April 30, 1999 proposed 
rule serve as guidance for these determinations, with the exception of 
earned income of minors. PHAs must take all necessary steps to ensure 
that families eligible for new mandatory deductions receive those 
deductions.
    3. For addressing earned income of minors, the existing regulations 
which exclude earned income of minors from the definition of income (24 
CFR 5.609(c)(1)) serve as the appropriate guidance.
    4. For choice of rents (flat rents, income-based rents), Sec. 5.614 
and the corresponding section of the preamble to the April 30, 1999 
proposed rule serve as guidance for choice of rent requirements. As 
further clarification, the market value of a unit on which flat rents 
are based must be a rent which would allow the unit to be successfully 
rented if the development were not public housing (neither lower nor 
higher). In addition to the documentation required by the April 30, 
1999 proposed rule, regarding the calculation and establishment of flat 
rents, PHAs should keep records documenting specific offers to families 
of the dollar amounts of tenant rent under each option.
    PHAs that follow this guidance will not be penalized for any 
changes made by HUD to the proposed rule provisions at the final rule 
stage. If changes are made at the final rule stage to these provisions, 
the final rule will provide adequate time for PHAs to adjust their 
policies.

    Dated: August 2, 1999.
Deborah Vincent,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-20298 Filed 8-5-99; 8:45 am]
BILLING CODE 4210-33-P