[Federal Register Volume 69, Number 18 (Wednesday, January 28, 2004)]
[Proposed Rules]
[Pages 4212-4213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1747]



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Part II





Department of Housing and Urban Development





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 24 CFR Part 990



Operating Fund Program; Notice of Intent To Establish a Negotiated 
Rulemaking Committee and Notice of First Meeting; Proposed Rule

  Federal Register / Vol. 69, No. 18 / Wednesday, January 28, 2004 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 990

[Docket No. FR-4874-N-02]


Operating Fund Program; Notice of Intent To Establish a 
Negotiated Rulemaking Committee and Notice of First Meeting

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

ACTION: Notice of intent to establish a negotiated rulemaking advisory 
committee and notice of first meeting.

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SUMMARY: The Department of Housing and Urban Development (HUD) is 
establishing a Negotiated Rulemaking Advisory Committee (Committee) 
under the Federal Advisory Committee Act. The purpose of the Committee 
is to provide advice and recommendations on developing a rule for 
effectuating changes to the Public Housing Operating Fund Program in 
response to the Harvard University Graduate School of Design's ``Public 
Housing Operating Cost Study'' (Harvard Cost Study). In accordance with 
the Negotiated Rulemaking Act of 1990, this document: Advises the 
public of the establishment of the Committee; provides the public with 
information regarding the Committee; solicits public comment on the 
proposed membership of the Committee; and explains how persons may be 
nominated for membership on the Committee.

DATES: Comment Due Date: February 27, 2004.

ADDRESSES: Interested persons are invited to submit comments regarding 
the Committee and its proposed members to the Regulations Division, 
Office of General Counsel, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-0500. 
Comments or any other communications submitted should consist of an 
original and four copies and refer to the above docket number and 
title. Facsimile (FAX) comments are not acceptable. The docket will be 
available for public inspection and copying between 8 a.m. and 5 p.m. 
weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Chris Kubacki, Director, Funding and 
Financial Management Division, Public and Indian Housing--Real Estate 
Assessment Center, Suite 800, Department of Housing and Urban 
Development, 1280 Maryland Ave, SW., Washington, DC 20024-2135; 
telephone (202) 708-4932 (this telephone numbers is not toll-free). 
Individuals with speech or hearing impairments may access this number 
through TTY by calling the toll-free Federal Information Relay Service 
at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    HUD currently uses a formula approach called the Operating Fund 
Formula to distribute operating subsidies to public housing agencies 
(PHAs). A regulatory description of the Operating Fund Formula can be 
found at 24 CFR part 990. Generally, the amount of subsidy received by 
a PHA is the difference between an ``allowable expense level'' and 
projected rental income, with the Operating Fund Formula regulations 
detailing how these projections will be made. ``Allowable expense 
level'' is defined in 24 CFR part 990 and does not necessarily reflect 
the actual cost of operating public housing properties. PHAs calculate 
their Operating Fund Formula eligibility annually and submit a request 
for funding as part of their budget process. The amount of subsidy can 
vary from one year to the next as a result of the annual appropriations 
process and accounts for approximately 57 percent of a PHA's total 
operating revenue, the balance coming from rents and other sources, 
e.g., fees. For fiscal year 2003, HUD distributed over $3.34 billion in 
operating subsidies to PHAs.
    On October 21, 1998, Congress enacted the Quality Housing and Work 
Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 2461, approved 
October 21, 1998) (QHWRA). Section 519 of QHWRA established an 
Operating Fund for the purpose of making assistance available to PHAs 
for the operation and management of public housing and required the 
amount of assistance made available to a PHA to be determined using a 
formula developed through negotiated rule-making procedures. Negotiated 
rulemaking for an Operating Fund Formula was initiated in March 1999, 
and resulted in a proposed rule, published on July 10, 2000 (65 FR 
42488), which was followed by an interim rule published on March 29, 
2001 (66 FR 17276). The March 29, 2001, interim rule established the 
Operating Fund Formula that is currently in effect.
    During the negotiated rulemaking for the Operating Fund Formula, 
Congress in the Conference Report (H.Rept. 106-379, October 13, 1999) 
accompanying HUD's Fiscal Year (FY) 2000 Appropriation Act (Pub. L. 
106-74, approved October 20, 1999) directed HUD to contract with the 
Harvard University Graduate School of Design (Harvard GSD) to conduct a 
study on the costs incurred in operating well-run public housing. A 
Final Report, the Harvard Cost Study, was issued by Harvard GSD on June 
6, 2003.
    HUD is publishing this notice to announce it intends to establish a 
negotiated rulemaking committee that will provide advice and 
recommendations on developing a rule for effectuating changes to the 
Public Housing Operating Fund Program in response to the Harvard Cost 
Study.

II. Regulatory Negotiation

    The basic concept of negotiated rulemaking is to have the agency 
that is considering drafting a rule bring together representatives of 
affected interests for face-to-face negotiations that are open to the 
public. The give-and-take of the negotiation process is expected to 
foster constructive, creative, and acceptable solutions to difficult 
problems. The Committee's role will be advisory and the Committee's 
goal will be to provide ``consensus'' recommendations to HUD. 
``Consensus'' will be defined in the initial meeting of the Committee. 
The Committee will consist of representatives of the various interests 
that are potentially affected by the rulemaking. Members may include 
public housing agencies, tenant organizations, elected officials, 
community based organizations, national organizations representing the 
interests of these entities, other interested parties, and HUD. Members 
will serve at HUD's discretion.

III. Committee Membership

    HUD has tentatively identified the following list of possible 
interests and parties. The final list of participants may not include 
all of these parties. HUD will decide on the final list of participants 
based upon comments on this notice, as well as its own efforts to 
identify other entities having an interest in the outcome of this 
rulemaking. The Negotiated Rulemaking Act of 1990 (5 U.S.C. 561-570) 
provides, at 5 U.S.C. 565(b), that the membership of a negotiated 
rulemaking committee should generally be limited to 25 members. In this 
instance, the Committee's proposed membership is greater than 25 
members, since HUD has determined that a greater number of members may 
be required to adequately represent the interests affected by changes 
to the Public Housing Operating Fund Program.

Housing Agencies

1. Atlanta Housing Authority, Atlanta, GA

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2. New York City Housing Authority, NYC, NY
3. Puerto Rico Housing Authority, San Juan, PR
4. Chicago Housing Authority, Chicago, IL
5. Dallas Housing Authority, Dallas, TX
6. Anne Arundel Housing Authority, Anne Arundel, MD
7. Indianapolis Housing Authority, Indianapolis, IN
8. Albany Housing Authority, Albany, NY
9. Jackson Housing Authority, Jackson, MS
10. Boise City/Ada County Housing Authority, Boise City, ID
11. Reno Housing Authority, Reno, NV
12. Alameda Housing Authority, Alameda, CA
13. Athens Housing Authority, Athens, GA
14. Housing Authority of East Baton Rouge, Baton Rouge, LA
15. Housing Authority of the City of Montgomery, Montgomery, AL

Tenant Organizations

1. Jack Cooper, Massachusetts Union of Public Housing Tenants, Needham, 
MA

Other Interests/Policy Groups

1. Ned Epstein, Housing Partners, Inc.
2. Howard Husock, Director of Kenney School Case Program
3. Greg Byrne, Project Director for Harvard Cost Study
4. Dan Anderson, Bank of America
5. David Land, Lindsey and Company
6. Council of Large Public Housing Agencies
7. National Association of Housing and Redevelopment Officials
8. Public Housing Authorities Directors Association
9. National Organization of African Americans in Housing

Federal Government

1. Assistant Secretary Michael Liu, U.S. Department of Housing and 
Urban Development
2. Deputy Assistant Secretary William Russell, U.S. Department of 
Housing and Urban Development
    We invite you to give us comments and suggestions on this tentative 
list of Committee members. We do not believe that each potentially 
affected organization or individual must necessarily have its own 
representative. However, we must be satisfied that the group as a whole 
reflects a proper balance and mix of interests. Accordingly, the 
composition of the final list may be different from this tentative 
list. Negotiation sessions will be open to members of the public, so 
individuals and organizations that are not members of the Committee may 
attend sessions and communicate informally with members of the 
Committee.

IV. Requests for Representation

    If you are interested in serving as a member of the Committee or in 
nominating another person to serve as a member of the Committee, you 
must submit a written nomination to HUD at the address listed in the 
ADDRESSES section of this notice. Your nomination for membership on the 
Committee must include:
    (1) The name of your nominee and a description of the interests the 
nominee would represent;
    (2) Evidence that your nominee is authorized to represent parties 
with the interests the nominee would represent;
    (3) A written commitment that the nominee will actively participate 
in good faith in the development of the rule; and
    (4) The reasons that the parties listed in this notice do not 
adequately represent your interests.
    HUD will determine whether a proposed member should be included in 
the makeup of the Committee. HUD will make that decision based on 
whether a proposed member would be significantly affected by the 
proposed rule and whether the interest of the proposed member could be 
represented adequately by other members.

V. Final Notice Regarding Committee Establishment

    After reviewing any comments on this notice and any requests for 
representation, HUD will publish a notice in the Federal Register that 
will announce the final composition of the Committee and the firm date, 
time, and place of the initial meeting.

VI. Tentative Schedule

    At this time, HUD's tentative plan is to hold the first meeting of 
the Committee on March 23-March 25, 2004. All meetings are expected to 
start at 8:30 a.m. and run until approximately 5 p.m. unless the 
Committee agrees otherwise. HUD plans to hold the meetings at the Real 
Estate Assessment Center, 1280 Maryland Ave, SW., Suite 800, 
Washington, DC 20024. The purpose of the first meeting will be to 
orient members to the negotiated rulemaking process, to establish a 
basic set of understandings and ground rules (protocols) regarding the 
process that will be followed in seeking a consensus, and to begin to 
address the issues. This meeting will be open to the public. In the 
event that the date and times of these meetings are changed, HUD will 
advise the public through Federal Register notice.
    Decisions with respect to future meetings will be made at the first 
meeting and from time to time thereafter. Notices of future meetings 
will be published in the Federal Register.

VII. Administrative Support

    HUD will take steps to ensure that the Committee has the dedicated 
resources it requires to conduct its work in a timely fashion, 
consistent with the requirements of the Negotiated Rulemaking Act of 
1990.

    Dated: January 14, 2004.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 04-1747 Filed 1-27-04; 8:45 am]
BILLING CODE 4210-33-P