[Federal Register Volume 68, Number 161 (Wednesday, August 20, 2003)]
[Notices]
[Pages 50173-50174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21242]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4837-D-04]


Redelegations of Authority to Other HUD Offices

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice of revocation and redelegations of authority.

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SUMMARY: Published elsewhere in today's Federal Register, the Secretary 
of HUD issued an up-to-date comprehensive delegation of authority for 
housing programs to the Assistant Secretary for Housing--Federal 
Housing Commissioner and the General Deputy Assistant Secretary for 
Housing--Deputy Federal Housing Commissioner. This notice advises the 
public of redelegations of authority from the Assistant Secretary for 
Housing--Federal Housing Commissioner to HUD officials in HUD Offices 
other than the Office of Housing.

EFFECTIVE DATE: August 11, 2003.

FOR FURTHER INFORMATION CONTACT: Eliot C. Horowitz, Senior Advisor to 
the Assistant Secretary for Housing-Federal Housing Commissioner, 
Office of Housing, Department of Housing and Urban Development, Room 
9110, Washington, DC 20410, phone (202) 708-0614, x2125. Persons with 
hearing or speech impairments may call HUD's TTY number at (202) 708-
1455 or the Federal Information Relay Service's TTY number at (800) 
877-8339. Other than the ``800'' number, the telephone numbers listed 
are not toll-free.

SUPPLEMENTARY INFORMATION: Housing legislation and programs are 
implemented and administered by the Office of Housing. However, in some 
instances, the nature of a statute or program, or component thereof, 
requires another HUD Office to conduct the program or participate in 
its administration. Under this delegation, the Housing Assistant 
Secretary is redelegating authority to two HUD Offices as follows: the 
Office of Fair Housing and Equal Opportunity (FHEO) and the Office of 
the General Counsel. All prior delegations from the Assistant Secretary 
of Housing to other HUD Offices are superseded and/or revoked.

Section I. Discussion of Redelegations of Authority

A. FHEO

    On February 12, 1999, the Secretary of HUD delegated authority to 
the Assistant Secretary and General Deputy Assistant Secretary for 
Housing, enabling each to implement various provisions of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992 
(FHEFSSA), 12 U.S.C. 4501 et seq. (64 FR 7406). Under FHEFSSA, HUD has 
general and specific regulatory authorities respecting the Federal 
National Mortgage Association and the Federal Home Loan Mortgage 
Association (collectively referred to as Government Sponsored 
Enterprises or GSEs). The legislation, more fully described in the 
February 12, 1999 Federal Register, requires HUD to take a number of 
actions including, but not limited to, establishing goals for the GSEs' 
purchases of mortgages (e.g., for low- and moderate-income families and 
housing located in central cities, rural and other under-served areas). 
Another major thrust of the legislation is designed to ensure that the 
GSEs and mortgage lenders comply with the Fair Housing authority under 
FHEFSSA and, thus, do not engage in discriminatory practices.
    Also, on February 12, 1999, the Assistant Secretary for Housing 
redelegated the Fair Housing authority of FHEFSSA to the Assistant 
Secretary for FHEO (64 FR 7407). The nature of the authority 
redelegated, also more fully described in the February 12, 1999 Federal 
Register publication, complements authorities already under the 
jurisdiction of FHEO. Essentially, this authority enables FHEO to 
receive and properly safeguard confidential and propriety information 
received from a GSE and to take appropriate enforcement related actions 
where violations of FHEFSSA requirements occur. The authority delegated 
herein references the reader to the notice in the Federal Register of 
February 12, 1999, and in no way revises that delegation. Consistent 
with that notice, the authority delegated to the Assistant Secretary 
for FHEO may not be redelegated.

[[Page 50174]]

B. Office of General Counsel

    The Assistant Secretary for Housing-Federal Housing Commissioner is 
redelegating authority to the General Counsel to take all actions 
permitted under 24 CFR 30.45 and 24 CFR 30.36. This action restates, 
reaffirms, and supersedes the Assistant Secretary's decisions to 
redelegate the same authority on September 12, 2002, published in the 
Federal Register on December 31, 2002 at 67 FR 79943 and 79944. .
    Also on September 12, 2002, the General Counsel redelegated the 
authority, to staff in the Departmental Enforcement Center (DEC), to 
take actions under 24 CFR 30.45 and 30.36. See 67 FR 79944 and 79945. 
That redelegation remains in effect and is not affected by the 
redelegations issued today. The DEC was recently placed under the 
Office of the General Counsel and is responsible for carrying out a 
wide range of HUD enforcement activities. The redelegations issued 
today promote efficient enforcement operations within the Department. 
The nature of the authority being redelegated today is set forth below.
    HUD regulations at 24 CFR 30.45 authorize the Assistant Secretary 
for Housing, or his or her designee, to take a civil money penalty 
action against any mortgagor of a multifamily property with a mortgage 
insured, co-insured, or held by the Secretary pursuant to Title II of 
the National Housing Act or against any mortgagor of a property with a 
mortgage held by the Secretary pursuant to section 202 of the Housing 
Act of 1959. Section 30.45 refers to the statutory provisions 
enumerating the violations for which the Assistant Secretary may impose 
a penalty upon those mortgagors. (See 12 U.S.C. 1701q-1(b) and (c), and 
12 U.S.C. 1735f-15(b) and (c).)
    HUD regulations at 24 CFR 30.36 authorize the Assistant Secretary 
for Housing, or the Assistant Secretary's designee, to take a civil 
money penalty action against any principal, officer or employee of a 
mortgagee or lender, or other participant, in either a mortgage insured 
under the National Housing Act (Act) or any loan that is covered by a 
contract of insurance under Title I of the Act, or any provider of 
assistance to a borrower in connection with any such mortgage or loan, 
including sellers, borrowers, closing agents, title companies, real 
estate agents, mortgage brokers, appraisers, loan correspondents, 
dealers, consultants, contractors, subcontractors and inspectors. 
Section 30.36 also identifies the violations for which the Assistant 
Secretary may impose a penalty. (See also 12 U.S.C. 1735f-14.)
    In addition, the Assistant Secretary is redelegating the authority 
to the General Counsel to issue (1) a notice of violation under the 
terms of a regulatory agreement and/or (2) a notice of default under 
the terms of a section 8 housing assistance contract. HUD regulations 
at 24 CFR 30.68 authorize the Assistant Secretary for Housing or his or 
her designee, and the Assistant Secretary for Public and Indian 
Housing, or his or her designee, to initiate civil money penalty 
actions against any owner, any general partner of a partnership owner, 
or any agent employed to manage the property that has an identity of 
interest with the owner or the general partner or a partnership owner 
of a property receiving project-based assistance under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f), for a knowing and 
material breach of a housing assistance payments contract.
    Violations of a project regulatory agreement can result in serious 
sanctions being imposed against a project owner. A notice of violation 
of the regulatory agreement provides an owner with both a notice of 
violations and the opportunity to remedy the violations. If violations 
are not remedied, the Office of Housing can impose sanctions upon a 
project owner including making a request that a lender declare a 
default under the project's insured mortgage. Similarly, violations of 
the terms of a housing assistance contract, if not remedied, can lead 
to serious consequences, including a decision by the Office of Housing 
to abate, terminate or redirect housing assistance funds. Notices of 
violations under regulatory agreements and defaults under housing 
assistance contracts address project owners who fail to maintain their 
properties in accordance with HUD requirements.
    Finally, the delegation of authority, noticed today, does not 
affect the authority of the Mortgagee Review Board, described in 24 CFR 
30.35, or the Assistant Secretary for Housing, to initiate civil money 
penalty actions.

Section II. Authority Redelegated

    The Assistant Secretary for Housing-Federal Housing Commissioner 
and the General Deputy Assistant Secretary for Housing--Deputy Federal 
Housing Commissioner retain and redelegate, to the officials listed 
below, the power and authority described as follows:

A. Assistant Secretary, Office of Fair Housing and Equal Opportunity

    Authority is redelegated on a nation-wide basis to exercise the 
Fair Housing provisions of FHEFSSA at 12 U.S.C. 4545, and under the 
regulations at 24 CFR part 81, subpart C, as described in the Federal 
Register notice of delegation of February 12, 1999 (64 FR 7407) and 
subject to the limitations and/or exceptions set forth therein.

B. General Counsel, Office of the General Counsel

    Authority is redelegated to the General Counsel to take all actions 
permitted under 24 CFR 30.45, 24 CFR 30.36, and 24 CFR 30.68 to issue 
(1) a notice of violation under the terms of a project regulatory 
agreement and (2) a notice of default under a section 8 housing 
assistance contract.

Section III. Authority Excepted

    The authority delegated in Section II. does not include the 
authority to waive regulations under the program jurisdiction of the 
Assistant Secretary for Housing.

Section IV. Further Redelegations

    A. The authority redelegated to the Assistant Secretary for the 
Office of Fair Housing and Equal Opportunity may not be redelegated.
    B. The General Counsel is authorized to redelegate the authority 
redelegated in section II.B. above.

Section V. Prior Delegations Revoked and/or Superseded

    The delegations of authority to the General Counsel, issued on 
December 31, 2002 are hereby superseded.

Section VI. Revocation of Authority

    The Assistant Secretary for Housing-Federal Housing Commissioner 
may revoke the authority authorized herein, in whole or part, at any 
time. Any revocation or modification of a redelegation will be 
published in the Federal Register.

    Authority: Section 7(d), Department of Housing and Urban 
Development Act, 42 U.S.C. 3535(d).

    Dated: August 11, 2003.
John C. Weicher,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 03-21242 Filed 8-19-03; 8:45 am]
BILLING CODE 4210-27-P