[Federal Register Volume 65, Number 62 (Thursday, March 30, 2000)]
[Rules and Regulations]
[Pages 16819-16823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7642]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 982 and 983

[Docket No. FR-4428-C-06]
RIN 2577-AB91


Section 8 Tenant-Based Assistance; Statutory Merger of Section 8 
Certificate and Voucher Programs; Housing Choice Voucher Program; 
Correction

AGENCY: Office of the Secretary, HUD.

ACTION: Correction.

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SUMMARY: This document makes various corrections to HUD's October 21, 
1999 final rule implementing the statutory merger of the Section 8 
tenant-based certificate and voucher programs into the new Housing 
Choice Voucher program. Additionally, this document corrects several 
regulatory provisions of the new Section 8 merger program that were not 
part of the October 21, 1999 final rule. These technical, non-
substantive amendments will help to ensure that, once codified, the 
regulations for the Housing Choice Voucher program are free of error 
and consistent with other HUD program requirements.

DATES: Effective date: November 22, 1999.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Real 
Estate and Housing Performance Division, Office of Public and Indian 
Housing, Department of Housing and Urban Development, Room 4220, 451 
Seventh Street, SW, Washington, DC 20410; telephone (202) 708-0477, 
extension 4069 (this is not a toll-free number). 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

    On October 21, 1999 (64 FR 56894), HUD published a final rule 
implementing the Section 8 tenant-based program provisions of the 
Quality Housing and Work Responsibility Act of 1998 (Title V of the FY 
1999 HUD Appropriations Act; Pub.L. 105-276, approved October 21, 1998) 
(referred to as the ``Public Housing Reform Act''). Of particular 
significance, the October 21, 1999 final rule implemented section 545 
of the Public Housing Reform Act. Section 545 provides for the complete 
merger of the Section 8 tenant-based certificate and voucher programs. 
HUD's regulations for the new Section 8 merger program (known as the 
``Housing Choice Voucher program'') are located at 24 CFR part 982.
    The October 21, 1999 final rule became effective on November 22, 
1999. The final rule was preceded by HUD's publication of an interim 
rule on May 14, 1999 (64 FR 56894). The October 21, 1999 final rule 
adopted without change the provisions of the interim rule. The final 
rule also took into consideration of the public comments received on 
the interim rule, and most of the changes made at the final rule stage 
were in response to public comment.

II. This Document

    This document makes several corrections to the October 21, 1999 
final rule. Additionally, this document corrects several regulatory 
provisions of the Housing Choice Voucher program that were not part of 
the October 21, 1999 final rule. These technical revisions correct 
typographical errors and inconsistencies with other HUD program 
requirements. These corrections are non-substantive, and do not modify 
or create any new program requirements. The corrections will help to 
ensure that, once codified in title 24 of the Code of Federal 
Regulations, the regulations for the new Section 8 merger program are 
free of error and consistent with other HUD program requirements.
    For the convenience of readers, the following discussion of the 
corrections made by this document is organized in the order of the 
regulatory section being corrected.
    1. Definitions (Sec. 982.4). This document corrects Sec. 982.4, 
which sets forth the definitions applicable to the Housing Choice 
Voucher program. Currently, part 982 refers readers to section 3(b) of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)) for the 
definitions of several terms applicable to the merger program. This 
document replaces the cross-reference to section 3(b) with a cross-
reference to HUD's regulations at 24 CFR part 5, subpart D. HUD 
established 24 CFR part 5 to set forth the definitions and other 
program requirements that are generally applicable to HUD's programs. 
The definitions provided in part 5 are substantively identical to those 
located in section 3(b).
    2. How applicants are selected: General requirements 
(Sec. 982.202). This document corrects Sec. 982.202 to conform with 
Sec. 982.207 of the October 21, 1999 final rule, since HUD approval is 
no longer required for the public housing agency (PHA) to adopt a 
residency preference. This document also corrects an erroneous 
regulatory citation contained in Sec. 982.202.
    3. Waiting list: Administration of waiting list (Sec. 982.204). 
This document corrects Sec. 982.204 by removing paragraph (b)(5), which 
merely repeats the language of paragraph (b)(4).
    4. Waiting list: Different programs (Sec. 982.205). This document 
corrects Sec. 982.205(b)(1) to clarify the definition of ``other 
housing assistance.'' This document also removes Sec. 982.205(b)(3), 
which incorrectly refers to a PHA offer of assistance under ``both the 
certificate program and the voucher program.'' As noted above, the new 
Housing Choice Voucher program merges the Section 8 tenant-based 
certificate and voucher programs into a single voucher program. 
Accordingly, PHAs no longer have two forms of Section 8 tenant-based 
assistance to offer families.
    5. Waiting list: Local preferences in admission to program 
(Sec. 982.207). This document corrects Sec. 982.207 to eliminate 
unnecessary redundancy. Specifically, paragraph (a)(1) of this section 
provides that the ``system of local preferences must be consistent with 
the PHA plan . . . and with the consolidated plans for local 
governments in the jurisdiction.'' Preferences are already covered 
under HUD's PHA Plan regulations, which require consistency with the 
Consolidated Plan (see 24 CFR part 903). Accordingly, it is unnecessary 
to include the quoted provision in part 982.
    This document also corrects a typographical error contained in 
Sec. 982.207(b)(5) of the October 21, 1999 final rule. Specifically, 
this document adds a phrase to the end of paragraph (b)(5) that 
clarifies that single persons who are elderly, displaced, homeless, or 
persons with disabilities may be granted an admissions preference over 
other single persons. The phrase ``over other single persons'' was 
inadvertently omitted from the October 21, 1999 final rule. This 
correction will also clarify

[[Page 16820]]

that a PHA may continue to have a selection preference that was 
statutorily mandated prior to the enactment of the Public Housing 
Reform Act.
    6. PHA disapproval of owner (Sec. 982.306) and Owner breach of 
contract (Sec. 982.453). This document corrects a typographical error 
contained in these two sections. Specifically, it replaces the phrase 
``housing assistance payments contract'' with the phrase ``HAP 
contract.''
    7. Table of contents for Subpart K--Rent and Housing Assistance 
Payment. This document corrects several typographical errors contained 
in the table of contents for part 982, subpart K. As corrected by this 
document, the table of contents now accurately reflects the sections 
contained in subpart K.
    8. Conversion to voucher program (Sec. 982.502). This document 
corrects Sec. 982.502(c) to clarify the elimination of the so-called 
``shopping incentive.'' Under the post-merger voucher subsidy formula 
(42 U.S.C. 1437f(o)(2), as amended by section 545 of the Public Housing 
Reform Act), the maximum subsidy for a family may not exceed the actual 
gross rent of the unit (rent to owner plus tenant-paid utilities) 
(Sec. 982.505(b)(2)). This change eliminates the old ``shopping 
incentive'' for a family that rents a unit below the applicable payment 
standard.
    For a pre-merger voucher tenancy, the May 14, 1999 interim rule 
(which was adopted without change by the October 21, 1999 final rule) 
provides that the elimination of the shopping incentive (by application 
of Sec. 982.505(b)(2) in the new voucher subsidy calculations) does not 
apply for calculation of the housing assistance payment prior to the 
second regular reexamination of family income on or after the merger 
date--but does not state explicitly that the elimination of the 
shopping incentive does apply in calculation of subsidy for such pre-
merger voucher tenancies from that point on. The rule is now corrected 
to state positively, as originally intended, that the elimination of 
the shopping incentive (by application of Sec. 982.505(b)(2)) is 
applicable for each interim or regular examination effective on or 
after the effective date of the second regular reexamination of family 
income and composition on or after the merger date.
    9. Voucher tenancy: Payment standard amount and schedule 
(Sec. 982.503). This document makes two corrections to Sec. 982.503. 
Under the Housing Choice Voucher program, the PHA adopts a ``payment 
standard schedule'' that sets ``payment standard amounts'' that are 
used to calculate the amount of subsidy for families assisted in the 
PHA's voucher program. This document corrects Sec. 982.503(a)(3) to 
specify that the PHA schedule may set a single payment standard amount 
for a whole Fair Market Rent (FMR) area, or may establish a separate 
payment standard amount for each ``designated part'' of the FMR area.
    The PHA voucher payment standard schedule establishes a single 
payment standard amount for each unit size. For each unit size, the PHA 
may establish a single payment standard amount for the whole FMR area, 
or may establish a separate payment standard amount for each designated 
part of the FMR area.
    Under the terms of the May 14, 1999 interim rule (which was adopted 
by the October 21, 1999 final rule without change), a PHA may apply for 
HUD approval to set a payment standard amount--for a part of the FMR 
area--that is higher than the ``basic range'' (i.e., the range from 90 
percent to 110 percent of the published FMR). However, the October 21, 
1999 final rule failed to specify that the PHA may set a payment 
standard amount for part of an FMR area within or below the basic 
range.
    As corrected by this document, the final rule now provides that the 
PHA may set payment standard amounts for designated parts of the FMR 
area. The PHA may establish such payment standard amounts above, within 
or below the basic range. However, as provided in the May 14, 1999 
interim rule, the PHA must request HUD approval to set any payment 
standard amount that is higher or lower than the basic range. The 
correction does not change the regulatory requirement for HUD approval 
of a payment standard amount higher than the basic range (called a 
``exception payment standard amount'').
    The October 21, 1999 final rule is also corrected by deleting 
Sec. 982.503(b)(1)(iii) concerning authority to establish a higher 
payment standard if required as a reasonable accommodation for a family 
that includes a person with disabilities. This subject is now moved to 
Sec. 982.505(d), since Sec. 982.505 covers establishment of the payment 
standard for an individual family (whereas Sec. 982.503 concerns the 
establishment of the PHA payment standard schedule for families in the 
PHA program).
    10. Rent to owner: Effect of rent control (Sec. 982.509). This 
document corrects the section heading of Sec. 982.509. The May 14, 1999 
interim rule provided an incorrect designation for this section (``Rent 
to owner in subsidized projects''). The incorrect section heading was 
adopted by the October 21, 1999 final rule. As corrected, the section 
heading for Sec. 982.509 reads: ``Rent to owner: Effect of rent 
control.''
    11. Distribution of housing assistance payment (Sec. 982.514). This 
document corrects Sec. 982.514, to clarify that if the PHA elects to 
pay the utility supplier directly, the PHA must notify the family of 
the amount paid to the utility supplier.
    12. Family income and composition: Regular and interim examinations 
(Sec. 982.516). This document corrects a typographical error contained 
in Sec. 982.516(g)(1) of the October 21, 1999 final rule. Specifically, 
this document replaces an incorrect citation to 24 CFR part 760 with 
the correct citation to 24 CFR 5.230.
    13. Rent to owner in subsidized project (Sec. 982.521). This 
document corrects Sec. 982.521, by reinserting regulatory language that 
was accidentally deleted from the pre-merger regulations (at 
Sec. 982.512).
    14. PHA denial or termination of assistance for family 
(Sec. 982.552). This document corrects a typographical error contained 
in Sec. 982.552(x) of the October 21, 1999 final rule. The final rule 
provides that a PHA may deny or terminate assistance to a welfare-to-
work (WTW) family, if the family fails to fulfill its obligations under 
the WTW voucher program. The final rule inadvertently failed to include 
the necessary qualifier that a family must ``willfully and 
persistently'' fail to fulfill its WTW obligations in order for the PHA 
to deny or terminate assistance to the WTW family. This document makes 
the necessary correction.
    15. Informal hearing for participant (Sec. 982.555). This document 
corrects two typographical errors contained in Sec. 982.555. First, it 
corrects the paragraph (b)(5) to provide that a PHA is not required to 
provide a hearing if the PHA determines not to approve a unit or 
``tenancy'' (rather than ``lease''). Secondly, this document corrects 
the title of paragraph (e)(2) to read ``Discovery'' (rather than 
``Discover'').
    16. Correction to 24 CFR part 983. In addition to the corrections 
to the part 982 regulations, this document makes a correction to HUD's 
regulations at 24 CFR part 983. The part 983 regulations establish the 
requirements governing the Section 8 Project-Based Certificate program. 
This document removes an outdated statutory citation contained in 
Sec. 983.1(a).

    Accordingly, in the final rule entitled ``Section 8 Tenant-Based 
Assistance; Statutory Merger of Section 8 Certificate and Voucher 
Programs; Housing Choice Voucher Program,'' FR Document 99-

[[Page 16821]]

27519, beginning at 64 FR 56894, in the issue of Thursday, October 21, 
1999, the following corrections are made:
    1. On page 56911, in the second column, correct amendatory 
instruction 4 and the regulatory text to read as follows:
    4. Amend Sec. 982.4 as follows:
    a. Remove paragraph (a)(1);
    b. Redesignate paragraphs (a)(2), (a)(3), and (a)(4) as paragraphs 
(a)(1), (a)(2), and (a)(3), respectively;
    c. Revise newly designated paragraphs (a)(2) and (a)(3);
    d. In paragraph (b), add, in alphabetical order, definitions of the 
terms ``family rent to owner'', ``utility reimbursement'', and 
``welfare-to-work (WTW) families'';
    e. In paragraph (b), in the definition of ``public housing agency'' 
remove from the end of paragraph (1) of this definition the word ``or'' 
and add in its place the word ``and'', and remove from paragraph (2)(i) 
of this definition the word ``consortia'' and add in its place the word 
``consortium''.
    The revisions and additions read as follows:


Sec. 982.4  Definitions.

    (a) * * *
    (2) Definitions under the 1937 Act. The terms ``annual 
contributions contract (ACC),'' ``disabled family,'' ``displaced 
family,'' ``elderly family,'' ``family,'' ``live-in aide,'' ``near-
elderly family'' and ``person with disabilities'' are defined in part 
5, subpart D of this title.
    (3) Definitions concerning family income and rent. The terms 
``adjusted income,'' ``annual income,'' ``extremely low income 
family,'' ``tenant rent,'' ``total tenant payment,'' ``utility 
allowance,'' and ``utility reimbursement'' are defined in part 5, 
subpart F of this title. The definitions of ``tenant rent'' and 
``utility reimbursement'' in part 5, subpart F of this title, apply to 
the certificate program, but do not apply to the tenant-based voucher 
program under part 982.
    (b) * * *
    Family rent to owner. In the voucher program, the portion of rent 
to owner paid by the family. For calculation of family rent to owner, 
see Sec. 982.515(b).
* * * * *
    Utility reimbursement. In the voucher program, the portion of the 
housing assistance payment which exceeds the amount of the rent to 
owner. (See Sec. 982.514(b)). (For the certificate program, ``utility 
reimbursement'' is defined in part 5, subpart F of this title.)
* * * * *
    Welfare-to-work (WTW) families. Families assisted by a PHA with 
voucher funding awarded to the PHA under the HUD welfare-to-work 
voucher program (including any renewal of such WTW funding for the same 
purpose).
    2. On page 56912, in the second column, add amendatory instruction 
7a. to read as follows:
    7a. In Sec. 982.202(b)(1), revise the last sentence to read as 
follows:


Sec. 982.202  How applicants are selected: General requirements.

* * * * *
    (b) * * *
    (1) * * * However, the PHA may target assistance for families who 
live in public housing or other federally assisted housing, or may 
adopt a residency preference (see Sec. 982.207).
* * * * *
    3. On page 56912, in the second column, add amendatory instruction 
7b. to read as follows:
    7b. In Sec. 982.204, remove paragraph (b)(5) and redesignate 
paragraph (b)(6) as paragraph (b)(5).
    4. On page 56912, in the second column, add amendatory instruction 
7c. to read as follows:
    7c. In Sec. 982.205, revise paragraph (b)(1) and remove paragraph 
(b)(3) to read as follows:


Sec. 982.205  Waiting list: Different programs.

* * * * *
    (b) * * *
    (1) For purposes of this section, ``other housing subsidy'' means a 
housing subsidy other than assistance under the voucher program. 
Housing subsidy includes subsidy assistance under a federal housing 
program (including public housing), a State housing program, or a local 
housing program.
* * * * *
    5. On page 56912, in the second column, correct amendatory 
instruction 8. to read as follows:
    8. Amend Sec. 982.207 as follows:
    a. Remove the last sentence of paragraph (a)(1);
    b. Add paragraph (a)(4); and
    c. Revise paragraphs (b) and (d) to read as set forth below:
    6. On page 56912, in the third column, correct Sec. 982.207(b)(5) 
to read as follows:


Sec. 982.207  Waiting list: Local preferences in admission to program.

* * * * *
    (b) * * *
    (5) Preference for single persons who are elderly, displaced, 
homeless, or persons with disabilities. The PHA may adopt a preference 
for admission of single persons who are age 62 or older, displaced, 
homeless, or persons with disabilities over other single persons.
* * * * *
    7. On page 56913, in the first column, correct amendatory 
instruction 12. to read as follows:


Sec. 982.306  [Amended]

    12. Amend Sec. 982.306 as follows:
    a. Revise the section heading;
    b. In paragraph (c)(1), revise the phrase ``housing assistance 
payments contract'' to read ``HAP contract'';
    c. Amend the introductory paragraph of paragraph (c)(5) to add the 
words ``engaged in'' after the words ``for activity''; and
    d. Amend paragraph (d) to add a new final sentence to that 
paragraph to read as follows:
    8. On page 56914, in the second column, correct amendatory 
instruction 19. to read as follows:


Sec. 982.543  [Amended]

    19. Amend Sec. 982.453 as follows:
    a. In paragraph (a)(2), revise the phrase ``housing assistance 
payments contract'' to read ``HAP contract''; and
    b. Add paragraph (a)(6) to read as follows:
    9. On page 56914, in the second column, add amendatory instruction 
19a. to read as follows:
    19a. Revise the table of contents for Subpart K to read as follows:
Subpart K--Rent and Housing Assistance Payment
982.501   Overview.
982.502   Conversion to voucher program.
982.503   Voucher tenancy: Payment standard amount and schedule.
982.504   Voucher tenancy: Payment standard for family in 
restructured subsidized multifamily project.
982.505   Voucher tenancy: How to calculate housing assistance 
payment.
982.506   Negotiating rent to owner.
982.507   Rent to owner: Reasonable rent.
982.508   Rent to owner: Maximum family share at initial occupancy.
982.509   Rent to owner: Effect of rent control.
982.510   Other fees and charges.
982.514   Distribution of housing assistance payment.
982.515   Family share: Family responsibility.
982.516   Family income and composition: Regular and interim 
reexaminations.
982.517   Utility allowance schedule.
982.518   Regular tenancy: How to calculate housing assistance 
payment.
982.519   Regular tenancy: Annual adjustment of rent to owner.
982.520   Regular tenancy: Special adjustment of rent to owner.
982.521   Rent to owner in subsidized project.

    10. On page 56914, in the second column, correct Sec. 982.502(c)(2) 
to read as follows:

[[Page 16822]]

Sec. 982.502  Conversion to voucher program.

* * * * *
    (c) * * *
    (2) The payment standard for the family as calculated in accordance 
with Sec. 982.505, except that Sec. 982.505(b)(2) shall not be 
applicable until the effective date of the second regular reexamination 
of family income and composition on or after the merger date.
* * * * *
    11. On page 56914, in the second column, correct regulatory 
instruction 21. and the regulatory text to read as follows:
    21. Amend Sec. 982.503 as follows:
    a. Revise paragraph (a)(3);
    b. Revise paragraph (b)(1)(ii);
    c. Remove paragraph (b)(1)(iii)
    d. Revise paragraph (d); and
    e. Add paragraph (e):


Sec. 982.503  Voucher tenancy: Payment standard amount and schedule.

    (a) * * *
    (3) The PHA voucher payment standard schedule shall establish a 
single payment standard amount for each unit size. For each unit size, 
the PHA may establish a single payment standard amount for the whole 
FMR area, or may establish a separate payment standard amount for each 
designated part of the FMR area.
    (b) * * *
    (1) * * *
    (ii) The PHA may establish a separate payment standard amount 
within the basic range for a designated part of an FMR area.
* * * * *
    (d) HUD approval of payment standard amount below the basic range. 
HUD may consider a PHA request for approval to establish a payment 
standard amount that is lower than the basic range. At HUD's sole 
discretion, HUD may approve PHA establishment of a payment standard 
lower than the basic range. In determining whether to approve the PHA 
request, HUD will consider appropriate factors, including rent burden 
of families assisted under the program. HUD will not approve a lower 
payment standard if the family share for more than 40 percent of 
participants in the PHA's voucher program exceeds 30 percent of 
adjusted monthly income. Such determination may be based on the most 
recent examinations of family income.
    (e) HUD review of PHA payment standard schedules. (1) HUD will 
monitor rent burdens of families assisted in a PHA's voucher program. 
HUD will review the PHA's payment standard for a particular unit size 
if HUD finds that 40 percent or more of such families occupying units 
of that unit size currently pay more than 30 percent of adjusted 
monthly income as the family share. Such determination may be based on 
the most recent examinations of family income.
    (2) After such review, HUD may, at its discretion, require the PHA 
to modify payment standard amounts for any unit size on the PHA payment 
standard schedule. HUD may require the PHA to establish an increased 
payment standard amount within the basic range.
    12. On page 56914, in the third column, correct amendatory 
instruction 22. and the regulatory text to read as follows:
    22. Amend Sec. 982.505 as follows:
    a. Amend paragraph (b)(1) by removing the phrase ``payment 
standard'' and inserting instead the phrase ``payment standard for the 
family'';
    b. Revise paragraph (c)(1) introductory text;
    c. Revise paragraph (c)(2);
    d. Amend paragraph (c)(3) by inserting ``first 24 months of the'' 
after the words ``During the'';
    e. Redesignate paragraph (c)(4) as paragraph (c)(5);
    f. Add new paragraph (c)(4); and
    g. Add new paragraph (d).
    The revisions and additions read as follows:


Sec. 982.505  Voucher tenancy: How to calculate housing assistance 
payment.

* * * * *
    (c) * * *
    (1) The payment standard for the family is the lower of:
* * * * *
    (2) If the PHA has established a separate payment standard amount 
for a designated part of an FMR area in accordance with Sec. 982.503 
(including an exception payment standard amount as determined in 
accordance with Sec. 982.503(b)(2) and Sec. 982.503(c)), and the 
dwelling unit is located in such designated part, the PHA must use the 
appropriate payment standard amount for such designated part to 
calculate the payment standard for the family. The payment standard for 
the family shall be calculated in accordance with this paragraph and 
paragraph (c)(1) of this section.
* * * * *
    (4) After the first 24 months of the HAP contract term, the payment 
standard for a family is the payment standard for the family as 
determined in accordance with paragraphs (c)(1) and (c)(2) of this 
section, as determined at the effective date of the most recent regular 
reexamination of family income and composition effective after the 
beginning of the HAP contract term.
* * * * *
    (d) PHA approval of higher payment standard for the family as a 
reasonable accommodation. If the family includes a person with 
disabilities and requires a higher payment standard for the family, as 
a reasonable accommodation for such person, in accordance with part 8 
of this title, the PHA may establish a higher payment standard for the 
family within the basic range.
    13. On page 56914, in the third column, add amendatory instruction 
23a. to read as follows:
    23a. Revise the section heading of Sec. 982.509 to read as follows:


Sec. 982.509  Rent to owner: Effect of rent control.

* * * * *
    14. On page 56914, in the third column, correct amendatory 
instruction 24. to read as follows:
    24. Revise Sec. 982.514(b) to read as follows:


Sec. 982.514  Distribution of housing assistance payment.

* * * * *
    (b) If the housing assistance payment exceeds the rent to owner, 
the PHA may pay the balance of the housing assistance payment 
(``utility reimbursement'') either to the family or directly to the 
utility supplier to pay the utility bill on behalf of the family. If 
the PHA elects to pay the utility supplier directly, the PHA must 
notify the family of the amount paid to the utility supplier.


Sec. 982.516  [Corrected]

    15. On page 56915, in the first column, correct Sec. 982.516(g)(1) 
by revising the phrase ``under part 760 of this title'' to read ``under 
Sec. 5.230 of this title.''
    16. On page 56915, in the second column, add amendatory instruction 
26a. to read as follows:
    26a. Revise Sec. 982.521 to read as follows:


Sec. 982.521  Rent to owner in subsidized project.

    (a) Applicability to subsidized project. This section applies to a 
program tenancy in any of the following types of federally subsidized 
project:
    (1) An insured or non-insured Section 236 project;
    (2) A Section 202 project;
    (3) A Section 221(d)(3) below market interest rate (BMIR) project; 
or
    (4) A Section 515 project of the Rural Development Administration.
    (b) How rent to owner is determined. The rent to owner is the 
subsidized rent as determined in accordance with

[[Page 16823]]

requirements for the applicable federal program listed in paragraph (a) 
of this section. This determination is not subject to the prohibition 
against increasing the rent to owner during the initial lease term (see 
Sec. 982.309).
    (c) Certificate tenancy--Rent adjustment. Rent to owner for a 
certificate tenancy is not subject to provisions governing annual 
adjustment (Sec. 982.519) or special adjustment (Sec. 982.520) of rent 
to owner.
    17. On page 56915, in the second column, correct 
Sec. 982.552(c)(1)(x) to read as follows:


Sec. 982.552  PHA denial or termination of assistance for family.

* * * * *
    (c) * * *
    (1) * * *
    (x) If a welfare-to-work (WTW) family fails, willfully and 
persistently, to fulfill its obligations under the welfare-to-work 
voucher program.
* * * * *


Sec. 982.555  [Amended]

    18. On page 56915, in the third column, add amendatory instruction 
27a. to read as follows:
    27a. Amend Sec. 982.555 as follows:
    a. In paragraph (b)(5), revise the reference to ``or lease'' to 
read ``or tenancy'';
    b. Revise the heading for paragraph (e)(2) to read ``Discovery.''

    19. On page 56915, in the third column, add amendatory instructions 
29. and 30. to read as follows:

PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM

    29. The authority citation continues to read as follows:

    Authority: 42 U.S.C. 1437f and 3535(d).


Sec. 983.1  [Amended]

    30. Amend Sec. 983.1(a) by removing the phrase ``, authorized under 
section 8(d)(2) of the 1937 Act (42 U.S.C. 1437f(d)(2))''.

    Dated: March 22, 2000.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 00-7642 Filed 3-29-00; 8:45 am]
BILLING CODE 4210-32-P