[Federal Register Volume 67, Number 171 (Wednesday, September 4, 2002)]
[Rules and Regulations]
[Pages 56688-56689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22327]



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Part III





Department of Housing and Urban Development





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24 CFR Part 982



Exception Payment Standard to Offset Increase in Utility Costs in the 
Housing Choice Voucher Program; Final Rule

  Federal Register / Vol. 67, No. 171 / Wednesday, September 4, 2002 / 
Rules and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 982

[Docket No. FR 4672F02]
RIN 2577AC29


Exception Payment Standard to Offset Increase in Utility Costs in 
the Housing Choice Voucher Program

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

ACTION: Final rule.

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SUMMARY: This final rule withdraws the interim rule that temporarily 
increased FMRs in areas affected by increased utility prices, and 
restores the regulatory language to that which was in effect before the 
issuance of the interim rule.

DATES: Effective Date: October 4, 2002.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Office of Public and 
Indian Housing, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 4210, Washington, DC 204100001; telephone 
(202) 7080477 (this is not a toll-free number). Persons with hearing-or 
speech-impairments may access these numbers via TTY by calling the 
Federal Information Relay Service at (800) 8778339 (this is a toll-free 
number).

SUPPLEMENTARY INFORMATION:

1. The June 6, 2001 Interim Rule

    During Fiscal Year (FY) 2001, increased energy costs in some parts 
of the country had an adverse impact on the ability of applicants and 
participants in the Housing Choice Voucher program to either lease a 
unit while paying no more than 40 percent of their income for rent, or, 
once having leased a unit, to continue to pay both rent and the higher 
utility costs. In order to mitigate those effects, in the interim rule 
issued on June 6, 2001 (66 FR 30568), HUD temporarily approved higher 
exception payment standard amounts for certain Public Housing Agencies 
(PHAs) that adopted new utility allowance schedules after October 1, 
2000 of between 110% and 120% of the FMRs without requiring those PHAs 
to seek HUD approval. HUD calculated these exception payment standards 
using the most recent rental data, which are also the same data on 
which the FY 2002 FMRs are based, which had the effect of raising the 
exception payment standard amount to between 110% and 120% of then-
current FMRs in areas where energy costs have increased substantially.
    The interim rule by its own term was applicable only for the 
balance of the Federal Fiscal Year ending September 30, 2001. The FMRs 
for FY 2002, which have now been published, reflect the most recent 
rental data, including the increased cost of utilities.

2. This Final Rule

    The interim rule provided for termination on its own terms after 
September 30, 2001. The FMRs that went into effect as of October 1, 
2001, reflect the latest rental data, including the increased utility 
costs (see 66 FR 50024, October 1, 2001). Therefore, no further 
alteration of the FMRs is necessary. Accordingly, this final rule 
withdraws the changes made by the June 6, 2001, interim rule, and 
restores the regulatory language to that which was in effect before the 
issuance of the interim rule.

3. Public Comments

    HUD received no public comments on this rule.

Findings and Certifications

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this 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 withdraws the interim 
rule that allowed PHAs in areas affected by sharply increased utility 
costs to use the new rental data before the FY 2002 FMRs went into 
effect nationwide. This rule simply recognizes that the FY 2002 FMRs 
are in effect. There is no change from the viewpoint of the affected 
PHAs.

Environmental Impact

    This rule relates to establishment of rate or cost determinations 
and related external administrative requirements and procedures which 
do not constitute a development decision that affects the physical 
condition of specific project areas or building sites. Accordingly, 
under 24 CFR 50.19(c)(6), this rule is categorically excluded from 
environmental review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321).

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on State and local governments and 
is not required by statute, or preempts State law, unless the relevant 
requirements of section 6 of the Executive Order are met. This 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.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Public Law 
1044; approved March 22, 1995) (UMRA) establishes requirements for 
Federal agencies to assess the effects of their regulatory actions on 
State, local, and tribal governments, and on the private sector. This 
rule does not impose any Federal mandates on any State, local, or 
tribal governments, or on the private sector, within the meaning of the 
UMRA.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number applicable to the 
program affected by this rule is 14.871.

List of Subjects in 24 CFR Part 982

    Grant programs--housing and community development, Housing, Low- 
and moderate-income housing, Rent subsidies, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, HUD amends 24 CFR part 982 
as follows:

PART 982--SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER 
PROGRAM

    1. The authority citation for 24 CFR part 982 continues to read as 
follows:

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

    2. Amend Sec.  982.503 as follows:
    a. Revise paragraph (b)(2) to read as follows;
    b. Revise the introductory text of paragraph (c)(2)(i); and
    c. Remove paragraph (c)(2)(iii).


Sec.  982.503  Voucher tenancy; payment standard amount and schedule.

* * * * *
    (b) * * *
    (2) The PHA must request HUD approval to establish a payment 
standard amount that is higher or lower than the basic range. HUD has 
sole discretion to grant or deny approval of a higher or lower payment 
standard amount. Paragraphs (c) and (e) of this section describe the 
requirements for approval of a higher payment standard amount 
(``exception payment standard amount'').

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    (c) * * *
    (2) Above 110 percent of FMR to 120 percent of published FMR. (i) 
The HUD Field Office may approve an exception payment standard amount 
from above 110 percent of the published FMR to 120 percent of the 
published FMR (upper range) if the HUD Field Office determines that 
approval is justified by either the median rent method or the 40th or 
50th percentile rent method as described in paragraph (c)(2)(i)(B) of 
this section (and that such approval is also supported by an 
appropriate program justification in accordance with paragraph (c)(4) 
of this section).
* * * * *

    3. Amend Sec.  982.505 by revising paragraph (c)(4) to read as 
follows:


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

* * * * *
    (c) * * *
    (4) Increase in the payment standard amount during the HAP contract 
term. If the payment standard amount is increased during the term of 
the HAP contract, the increased payment standard amount shall be used 
to calculate the monthly housing assistance payment for the family 
beginning at the effective date of the family's first regular 
reexamination on or after the effective date of the increase in the 
payment standard amount.
* * * * *

    Dated: July 15, 2002.
Michael Liu,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 02-22327 Filed 9302; 8:45 am]
BILLING CODE 421027P