[Federal Register Volume 69, Number 114 (Tuesday, June 15, 2004)]
[Rules and Regulations]
[Pages 33524-33525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13431]



[[Page 33523]]

-----------------------------------------------------------------------

Part III





Department of Housing and Urban Development





-----------------------------------------------------------------------



24 CFR Part 203



Eligibility of Mortgages on Hawaiian Home Lands Insured Under Section 
247; Interim Rule

  Federal Register / Vol. 69, No. 114 / Tuesday, June 15, 2004 / Rules 
and Regulations  

[[Page 33524]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 203

[Docket No. FR-4779-I-01]
RIN 2502-AH92


Eligibility of Mortgages on Hawaiian Home Lands Insured Under 
Section 247

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

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: This interim rule amends the regulations regarding eligibility 
for mortgages on Hawaiian home lands to reflect a recent statutory 
change to the National Housing Act.

DATES: Effective Date: July 15, 2004.
    Comment Due Date: August 16, 2004.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410-0500. Electronic comments may be submitted 
through Regulations.gov (www.regulations.gov). Communications should 
refer to the above docket number and title. Facsimile (FAX) comments 
are not acceptable. A copy of each communication submitted 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: Vance T. Morris, Office of the Deputy 
Assistant Secretary for Single Family Housing, Department of Housing 
and Urban Development, 451 Seventh Street, SW., Washington, DC 20410-
8000; telephone (202) 708-2121 (this is not a toll-free number). 
Hearing- and speech-impaired persons may access this number through TTY 
by calling the toll free Federal Information Relay Service at 800-877-
8339.

SUPPLEMENTARY INFORMATION:

I. Background

    This interim rule implements an amendment to Section 247 of the 
National Housing Act (12 U.S.C. 1715z-12) relating to single family 
insurance on Hawaiian home lands made by section 215 of the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2002 (Pub. L. 107-73, approved November 
26, 2001) (FY2002 HUD Appropriations Act). The amendment revised the 
definition of the terms ``Hawaiian home lands'' and ``native 
Hawaiian.'' Section 215 also changed the eligibility criterion for the 
receipt of a leasehold or mortgage insured under section 247 of the 
National Housing Act.

II. This Interim Rule

    This interim rule amends 24 CFR 203.43i(c)(2) to conform the 
existing regulatory definition of the term ``Hawaiian home lands'' to 
the revised definition of the term found in section 247(d)(2) of the 
National Housing Act. Even though the only change is the addition of 
two statutory citations, the inclusion of the citations makes the 
regulatory definition consistent with the statutory language. This rule 
also amends 24 CFR 203.43i(c)(3) to conform the existing regulatory 
definition of the term ``native Hawaiian'' to the revised definition 
enacted by section 215 of the FY2002 HUD Appropriations Act. A ``native 
Hawaiian'' now is defined as ``any descendant of not less than one-half 
part of the blood of the races inhabiting the Hawaiian islands before 
January 1, 1778, or, in the case of an individual who is awarded an 
interest in a lease of Hawaiian home lands through transfer or 
succession, such lower percentage as may be established for such 
transfer or succession under section 208 or section 209 of the Hawaiian 
Homes Commission Act of 1920 (42 Stat. 111), or under the corresponding 
provision of the Constitution of the State of Hawaii adopted under 
section 4 of the Act entitled ``An Act to provide for the admission of 
the State of Hawaii into the Union'', approved March 18, 1959 (73 Stat. 
5).''
    Section 247 of the National Housing Act was amended by section 
215(2) of the FY2002 HUD Appropriations Act to provide that possession 
of a lease of Hawaiian home lands issued under section 207(a) of the 
Hawaiian Homes Commission Act of 1920 (42 Stat. 110) shall be necessary 
to certify eligibility to obtain an insured mortgage. Therefore, 24 CFR 
203.43i(i) is amended to state that, in addition to all the other 
eligibility requirements set forth in subpart A of 24 CFR part 203, 
possession of a lease issued under section 207 of the Hawaiian Homes 
Commission Act of 1920, which has been certified by the Department of 
Hawaiian Home Lands as being valid, current, and not in default, will 
be sufficient to satisfy the eligibility of a mortgagor for an insured 
mortgage under this section. Such certification is customary when a 
leasehold is the security for a mortgage transaction.
    This rule amends 24 CFR 203.43i(h) also as a result of the 
amendment made by section 215(2) of the FY2002 HUD Appropriations Act. 
The restrictive language in Sec.  203.43i(h) with respect to assumption 
of the leasehold is removed. As a consequence of the enactment of 
section 215(2), this rule eliminates the requirement for a 
certification from the Department of Hawaiian Home Lands that the 
mortgagor (lessee) qualifies as a native Hawaiian; therefore, the 
requirement for a certification when a leasehold is assumed also is 
eliminated.

Findings and Certifications

Justification for Interim Rulemaking

    In general, the Department publishes a rule for public comment 
before issuing a rule for effect, in accordance with its own 
regulations on rulemaking at 24 CFR part 10. Part 10, however, does 
provide in Sec.  10.1 for exceptions from that general rule where the 
Department finds good cause to omit advance notice and public 
participation. The good cause requirement is satisfied when the prior 
public procedure is ``impracticable, unnecessary, or contrary to the 
public interest.''
    The Department finds that good cause exists to publish this interim 
rule for effect without first soliciting public comment. The amendments 
enacted by Section 215 of the FY2002 HUD Appropriations Act, discussed 
above, are fairly prescriptive and allow little, if any, discretion in 
defining a ``native Hawaiian'' or ``Hawaiian home lands'' or in setting 
forth the procedure for a qualified lessee to establish proof of 
eligibility for mortgage insurance. Moreover, the regulatory text 
reflects the amendatory language of Section 215 without any substantive 
change. Accordingly, the Department believes that it is in the public 
interest to publish this interim rule to make the statutory amendments 
effective as soon as possible and that prior public procedure is 
unnecessary. Although the Department is publishing this interim rule 
for effect, the Department is inviting and welcomes public comment on 
the rule. Comments received in response to the published interim rule 
will be considered during development of a final rule that will 
supersede this interim rule.

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
for this rule has been made in accordance with HUD regulations at 24 
CFR part 50, which implement section 102(2)(C) of the National 
Environmental Policy Act of 1969. The Finding of No Significant Impact 
is available for public inspection between 8 a.m. and 5 p.m. weekdays 
in

[[Page 33525]]

the Regulations Division, Office of the General Counsel, Department of 
Housing and Urban Development, Room 10276, 451 Seventh Street, SW., 
Washington, DC 20410-5000.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
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 a federal mandate on any 
state, local, or tribal government, or on the private sector, within 
the meaning of the Unfunded Mandates Reform Act of 1995.

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 does 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 no unusual procedures that would need to 
be complied with by small entities. The rule would facilitate FHA 
insurance of mortgages on leaseholds held by native Hawaiians. Although 
HUD has determined that this rule would not have a significant economic 
impact on a substantial number of small entities, HUD welcomes comments 
regarding any less burdensome alternative to this rule that will meet 
HUD's objectives as described in this preamble.

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this rule under 
Executive Order 12866, Regulatory Planning and Review. OMB determined 
that this rule is a ``significant regulatory action'' as defined in 
section 3 (f) of the order (although not economically significant, as 
provided in section 3 (f)(1) of the order). Any changes made to the 
rule subsequent to its submission to OMB are identified in the docket 
file, which is available for public inspection in the Regulations 
Division, Office of General Counsel, Department of Housing and Urban 
Development, Room 10276, 451 Seventh Street, SW., Washington, DC 20410-
0500.

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 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 number is 14.117.

List of Subjects in 24 CFR Part 203

    Hawaiian Natives, Home improvement, Indian-lands, Loan programs-
housing and community development, Mortgage insurance, Reporting and 
recordkeeping requirements, solar energy.


0
Accordingly, for the reasons described in the preamble, HUD amends 24 
CFR part 203 as follows:

PART 203--SINGLE FAMILY MORTGAGE INSURANCE

0
1. The authority citation for part 203 continues to read as follows:

    Authority: 12 U.S.C. 1709, 1710, 1715b, and 1715u; 42 U.S.C. 
3535(d)


0
2. Amend Sec.  203.43i to revise paragraphs (c)(2) and (3), (h), and 
(i) to read as follows:


Sec.  203.43i  Eligibility of mortgages on Hawaiian Home Lands insured 
pursuant to section 247 of the National Housing Act.

* * * * *
    (c)(1) * * *
    (2) Hawaiian home lands means all lands given the status of 
Hawaiian home lands under section 204 of the Hawaiian Homes Commission 
Act of 1920 (42 Stat. 110), or under the corresponding provision of the 
Constitution of the State of Hawaii adopted under section 4 of the Act 
entitled ``An Act to provide for the admission of the State of Hawaii 
into the Union,'' approved March 18, 1959 (73 Stat. 5).
    (3) Native Hawaiian means any descendant of not less than one-half 
part of the blood of the races inhabiting the Hawaiian islands before 
January 1, 1778, or, in the case of an individual who is awarded an 
interest in a lease of Hawaiian home lands through transfer or 
succession, such lower percentage as may be established for such 
transfer or succession under section 208 or 209 of the Hawaiian Homes 
Commission Act of 1920 (42 Stat.111), or under the corresponding 
provision of the Constitution of the State of Hawaii adopted under 
section 4 of the Act entitled ``An Act to provide for the admission of 
the State of Hawaii into the Union,'' approved March 18, 1959 (73 Stat. 
5).
* * * * *
    (h) Form of lease. The form of lease must be approved by both HUD 
and the Department of Hawaiian Home Lands (DHHL). The lease may not be 
terminated by DHHL without the approval of the Secretary while the 
mortgage is insured or held by the Secretary.
    (i) Eligibility of mortgagor. In addition to the eligibility 
requirements contained in this subpart, possession of a lease of 
Hawaiian home lands issued under section 207(a) of the Hawaiian Homes 
Commission Act of 1920 (42 Stat.110) that has been certified by the 
Department of Hawaiian Home Lands as being valid, current, and not in 
default, shall be sufficient to certify eligibility to receive a 
mortgage to be insured under this section.

    Dated: May 19, 2004.
Sean Cassidy,
General Deputy Assistant Secretary for Housing.
[FR Doc. 04-13431 Filed 6-14-04; 8:45 am]
BILLING CODE 4210-27-P