[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]



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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  

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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.

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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]
BILLING CODE 4210-33-P