[Federal Register Volume 64, Number 232 (Friday, December 3, 1999)]
[Rules and Regulations]
[Pages 67982-67983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31440]
[[Page 67981]]
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Part III
Department of Housing and Urban Development
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24 CFR Part 985
Technical Amendment to the Section 8 Management Assessment Program
(SEMAP); Final Rule
Federal Register / Vol. 64, No. 232 / Friday, December 3, 1999 /
Rules and Regulations
[[Page 67982]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 985
[Docket No. FR-4498-F-02]
RIN 2577-AC10
Technical Amendment to the Section 8 Management Assessment
Program (SEMAP); Final Rule
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule.
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SUMMARY: On July 26, 1999, HUD published an interim rule amending its
regulations for the Section 8 Management Assessment Program (SEMAP).
The interim rule made several technical amendments to conform the SEMAP
regulations to the requirements of the Single Audit Act Amendments of
1996. This final rule makes final the amendments made by the July 26,
1999 interim rule. HUD has adopted the interim rule without change.
Additionally, this final rule makes several amendments to conform the
SEMAP regulations to HUD's October 21, 1999 final rule implementing the
statutory merger of the Section 8 tenant-based certificate and voucher
programs.
DATES: Effective Date: January 3, 2000.
FOR FURTHER INFORMATION CONTACT: Gerald Benoit, Director, Real Estate
and Housing Performance Division, Office of Public and Assisted Housing
Delivery, Office of Public and Indian Housing, Room 4210, 451 Seventh
Street, SW, Room 4210, Washington, DC 20410; telephone: (202) 708-0477
(this is not a toll-free number). Persons with hearing or speech-
impairments may access this number via TTY by calling the toll-free
Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. The July 26, 1999 Interim Rule
On July 26, 1999 (64 FR 40496), HUD published an interim rule
amending its regulations for the Section 8 Management Assessment
Program (SEMAP). The interim rule, which became effective on August 25,
1999, made various technical amendments to conform the SEMAP
regulations to the requirements of the Single Audit Act Amendments of
1996. Specifically, the interim rule provides that HUD will base its
SEMAP rating for a housing authority (HA) based on the HA's SEMAP
certification to HUD, rather than on the independent auditor's annual
audit report. HUD continues to rely on the independent auditor to
verify the accuracy of the HA's SEMAP certification with respect to the
eight SEMAP indicators. The July 26, 1999 interim rule also clarifies
that HUD confirmatory reviews will be used as an additional method of
verification to the extent they are performed.
The July 26, 1999 interim rule requires the HA to submit a SEMAP
certification concerning the results of its supervisory quality control
reviews of file samples drawn in an unbiased manner to ensure
compliance under four SEMAP indicators ((1) Selection from the Waiting
List; (2) Reasonable Rent; (3) Determination of Adjusted Income; and
(4) HQS Enforcement). The interim rule, therefore, requires the HA to
perform annual quality control reviews of its performance under these
indicators in order to complete the SEMAP certification form.
The July 26, 1999 interim rule also revises the SEMAP standard
under Sec. 985.3(e) for Housing Quality Standards (HQS) quality control
inspections. This indicator is changed to require HQS quality control
samples of the same minimum sample size as required for other
supervisory quality control reviews. The requirement for a 5 percent
HQS quality control sample no longer applies.
II. Finalizing the July 26, 1999 Interim Rule
This final rule finalizes the amendments made by the July 26, 1999
interim rule. The public comment period on the interim rule closed on
September 24, 1999. No public comments were submitted on the interim
rule. Accordingly, HUD is adopting the interim rule without change.
III. Conforming Amendments to 24 CFR Part 985
In addition to finalizing the July 26, 1999 interim rule, this
final rule makes various amendments to conform the SEMAP regulations to
HUD's October 21, 1999 (64 FR 56894) final rule implementing the
statutory merger of the Section 8 tenant-based certificate and voucher
programs. The October 21, 1999 final rule implemented section 545 of
the Quality Housing and Work Responsibility Act of 1998 (Title V of the
FY 1999 HUD Appropriations Act; Public Law 105-276, approved October
21, 1998). The new tenant-based program (known as the Housing Choice
Voucher program) has features of the previously authorized certificate
and voucher programs, plus new features. Interested persons should
consult the preamble to the October 21, 1999 final rule for additional
details.
The conforming changes made by this final rule do not establish or
modify any substantive SEMAP requirements. Rather, these amendments
conform the SEMAP regulations at 24 CFR part 985 to the requirements of
the new Housing Choice Voucher program. The most significant of the
conforming amendments made by this final rule are as follows:
Part 985 has been revised to consistently use the term
``PHA'' rather than ``HA'' when referring to a public housing agency.
This final rule updates several regulatory citations to
the regulations at 24 CFR part 982.
The final rule updates 24 CFR part 985 by replacing the
terms ``area exception rents'' and ``exception rents'' with the term
``exception standard amounts.''
The SEMAP payment standards indicator at Sec. 985.3(i) has
been revised to reflect the fact that, under the Housing Choice Voucher
program, there are no more initial gross rents under the Section 8
certificate program.
The discussion of correct tenant rent calculations at
Sec. 985.3(k) has been revised to remove all references to over-Fair
Market Rent (FMR) tenancies. Such tenancies no longer exist under the
Housing Choice Voucher program.
IV. Findings and Certifications
Environmental Impact
A Finding of No Significant Impact with respect to the environment
for this rulemaking was made at the interim rule stage, in accordance
with HUD regulations at 24 CFR part 50, which implement section
102(2)(C) of the National Environmental Policy Act of 1969. That
finding remains applicable to this final rule and is available for
public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the
Office of the Rules Docket Clerk, Office of the General Counsel,
Department of Housing and Urban Development, Room 10276, 451 Seventh
Street, SW, Washington, DC 20410.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this rule before publication and by
approving it certifies that this rule would not have a significant
economic impact on a substantial number of small entities. There are no
anti-competitive discriminatory aspects of the rule with regard to
small entities, and there are not any unusual procedures that would
need to be complied with by small entities.
[[Page 67983]]
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on State and local
governments and is not required by statute, or the rule preempts State
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive Order. This final rule does not have
federalism implications and does not impose substantial direct
compliance costs on State and local governments or preempt State law
within the meaning of the Executive Order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance Program numbers assigned
to the Section 8 Management Assessment Program are 14.855 and 14.857.
List of Subjects for 24 CFR Part 985
Grant programs--housing and community development, Housing, Rent
subsidies, Reporting and recordkeeping requirements.
PART 985--SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP)
For the reasons discussed in the preamble, HUD adopts the
amendments made to 24 CFR part 985 in the interim rule published on
July 26, 1999 at 64 FR 40496 without change and makes the following
additional amendments to 24 CFR part 985 as follows.
1. The authority citation for Part 985 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f and 3535d.
1a. In part 985, ``HA'' is removed and ``PHA'' is added in its
place wherever it appears, and ``an HA'' is removed and ``a PHA'' is
added in its place wherever it appears.
2. Amend Sec. 985.3 as follows:
a. In paragraph (b)(1), revise the reference to ``Sec. 982.503'' to
read ``Sec. 982.507'';
b. In paragraph (b)(3)(i)(B), revise the reference to
``Sec. 982.503'' to read ``Sec. 982.507'';
c. In paragraph (e)(1), revise the reference to ``Sec. 983.2'' to
read ``Sec. 985.2'';
d. In paragraph (g)(1), revise the reference to
``Sec. 982.301(b)(5)'' to read ``982.301(b)(4)'';
e. In paragraph (g)(1) revise the reference to
``Sec. 982.301(b)(13)'' to read ``Sec. 982.301(b)(12)'';
f. In paragraphs (g)(1), (g)(3)(i)(C), (g)(3)(i)(D), and
(g)(3)(i)(F), remove the references to ``and certificate'' and ``or
certificate'' wherever they appear;
g. In paragraph (g)(3)(i)(D), revise the reference to the plural
``programs'' to the singular ``program'';
h. In paragraph (g)(3)(i)(F), revise the references to ``area
exception rents'' and ``exception rents'' to read ``exception payment
standard amounts'';
i. Revise paragraphs (i); and
j. Revise the second sentence of paragraph (k)(2).
Sec. 985.3 Indicators, HUD verification methods and ratings.
* * * * *
(i) Payment standards. (1) This indicator shows whether the PHA has
adopted a payment standard schedule that establishes voucher payment
standard amounts by unit size for each FMR area in the PHA
jurisdiction, and, if applicable, separate payment standard amounts by
unit size for a PHA-designated part of an FMR area, which payment
standards do not exceed 110 percent of the current applicable published
FMRs and which are not less than 90 percent of the current applicable
published FMRs (unless a higher or lower payment standard amount is
approved by HUD). (Sec. 982.503 of this chapter.)
(2) HUD verification method: PHA data submitted on the SEMAP
certification form concerning payment standards.
(3) Rating:
(i) The PHA's voucher program payment standard schedule contains
payment standards which do not exceed 110 percent of the current
applicable published FMR and which are not less than 90 percent of the
current applicable published FMR (unless a higher or lower payment
standard amount is approved by HUD). 5 points.
(ii) The PHA's voucher program payment standard schedule contains
payment standards which exceed 110 percent of the current applicable
published FMRs or which are less than 90 percent of the current
applicable published FMRs (unless a higher or lower payment standard
amount is approved by HUD). 0 points.
* * * * *
(k) * * *
(2) * * * The MTCS data used for verification cover only voucher
program and regular certificate program tenancies, and do not include
rent calculation discrepancies for manufactured home owner rentals of
manufactured home spaces under the certificate program or for proration
of assistance under the noncitizen rule.
* * * * *
Dated: November 23, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-31440 Filed 12-2-99; 8:45 am]
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