[Federal Register Volume 70, Number 250 (Friday, December 30, 2005)]
[Rules and Regulations]
[Pages 77742-77745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24672]
[[Page 77741]]
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Part VIII
Department of Housing and Urban Development
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24 CFR Parts 5, 880, 883, et al.
Eligibility of Students for Assisted Housing Under Section 8 of the
U.S. Housing Act of 1937; Final Rule
Federal Register / Vol. 70, No. 250 / Friday, December 30, 2005 /
Rules and Regulations
[[Page 77742]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 880, 883, 884, 886, 891, and 982
[Docket No. FR-5036-F-01]
RIN 2501-AD19
Eligibility of Students for Assisted Housing Under Section 8 of
the U.S. Housing Act of 1937
AGENCY: Office of the Secretary, HUD.
ACTION: Final rule.
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SUMMARY: This rule implements a new law, enacted as part of HUD's
Fiscal Year (FY) 2006 appropriations, that restricts individuals
enrolled in an institution of higher education and who meet certain
other requirements from receiving assistance under section 8 of the
U.S. Housing Act of 1937. The new law directed HUD to issue a final
rule within 30 days of enactment of the new law. This rule fulfills the
statutory requirement.
DATES: Effective Date: January 30, 2006.
FOR FURTHER INFORMATION CONTACT: For Section 8 voucher issues, Alfred
C. Jurison, Director, Housing Voucher Management and Operations
Division, Office of Public and Indian Housing, Room 4210, telephone
(202) 708-0477; for the Office of Housing's project-based Section 8,
Gail Williamson, Director, Housing Assistance Policy Division, Room
6180, telephone (202) 708-3000. For all of the individuals, the address
is Department of Housing and Urban Development, 451 Seventh Street,
SW., Washington, DC 20410-8000. None of the aforementioned telephone
numbers are toll-free numbers. Persons with hearing or speech
impairments may access this number through TTY by calling the toll-free
Federal Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
Fiscal Year (FY) 2006 appropriations for HUD were recently enacted
in Public Law 109-115 (119 Stat. 2936), which was approved on November
30, 2005 (the Act). HUD's appropriations are found in Title III of this
law. Section 327 of the administrative provisions of Title III place
restrictions on housing assistance that can be provided to students of
higher education under Section 8 of the U.S. Housing Act of 1937 (42
U.S.C. 1437f). Specifically, Section 327 of Public Law 109-115 (Section
327) provides as follows:
``Sec. 327. (a) No assistance shall be provided under Section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f) to any
individual who--
(1) Is enrolled as a student at an institution of higher education
(as defined under section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002));
(2) Is under 24 years of age;
(3) Is not a veteran;
(4) Is unmarried;
(5) Does not have a dependent child; and
(6) Is not otherwise individually eligible, or has parents who,
individually or jointly, are not eligible, to receive assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).
(b) For purposes of determining the eligibility of a person to
receive assistance under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), any financial assistance (in excess of amounts
received for tuition) that an individual receives under the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources,
or an institution of higher education (as defined under the Higher
Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to
that individual, except for a person over the age of 23 with dependent
children.''
The new law is intended to address recent incidents of college
students obtaining federal housing assistance without their educational
financial assistance counting as income for purposes of income
eligibility for federal housing assistance. The law also describes how
educational financial assistance is to be treated in the calculation of
income for purposes of determining eligibility.
Section 327 of the Act directs HUD to issue a final rule to carry
out this section no later than 30 days from the date of enactment of
the law. Since HUD finds the restrictions of the law to be clear, this
final rule codifies the restrictions largely as set forth in the
statute.
HUD strongly encourages public housing agencies, owners, and
management agents administering Section 8 programs to, as soon as it is
practicable, recertify existing Section 8 participants that have family
members that may meet the requirements of Section 327 of the Act.
Prompt recertification, in addition to careful applicant screening,
will ensure compliance with the restrictions of the new law.
II. This Final Rule
This final rule amends 24 CFR part 5, subpart F, which addresses
income eligibility in assisted housing, among other matters, to
incorporate the provisions of the new law. Specifically, this rule
makes the following amendments to 24 CFR part 5, subpart F.
Section 5.609(b) of subpart F, which lists forms of compensation
that are calculated as income, is amended to include as income, for
programs under section 8 of the U.S. Housing Act of 1937 (section 8),
the educational financial assistance described in Section 327(b) of the
Act, except for persons over the age of 23 with dependent children.
Section 327(b) provides for such exemption for persons over the age of
23 with dependent children. HUD has interpreted the term ``financial
assistance'' as used in Section 327(b) to not include loan proceeds for
the purpose of determining income.
Section 5.609(c)(6) of subpart F lists forms of compensation that
are excluded from the calculation of annual income. Prior to the change
being made by this final rule, Sec. 5.609(c) provided for the full
amount of student financial assistance paid directly to the student or
the educational institution to be excluded from annual income. Section
5.609(c)(6) is amended to provide, by cross-reference to Sec.
5.609(b), that the exclusion does not pertain, with regard to Section 8
programs, to the financial assistance described in Section 327(b) of
the Act.
A new regulatory section, Sec. 5.612, is added to 24 CFR part 5,
subpart F, to codify the criteria set forth in Section 327(a) of the
Act by which an individual enrolled in an institution of higher
education is ineligible for assistance. Subsection (a)(6) of Section
327 concludes the list of criteria by providing that an individual who
is enrolled in an institution of higher education is ineligible for
assistance if the individual is not otherwise individually eligible, or
has parents who, individually or jointly, are ineligible to receive
assistance under Section 8. Since Section 327 is focused on income
eligibility of a higher education student, the Department interprets
the section's reference to the eligibility of the parents to also refer
to income eligibility.
In addition to the amendments made to 24 CFR part 5, subpart F,
this final rule also makes conforming amendments to 24 CFR 880.603(b),
24 CFR 883.302, 24 CFR 884.102, 24 CFR 886.102, 24 CFR 886.132, 24 CFR
886.321(b), 24 CFR 891.610(c), 24 CFR 982.201, and 24 CFR 982.552.
III. Justification for Final Rule
HUD generally publishes a rule for public comment before issuing a
rule for effect, in accordance with its own
[[Page 77743]]
regulations on rulemaking in 24 CFR part 10. Part 10, however, provides
for exceptions to the general rule if the agency finds good cause to
omit advanced notice and public participation. The good cause
requirement is satisfied when prior public procedure is ``impractical,
unnecessary, or contrary to the public interest'' (see 24 CFR 10.1). In
this rulemaking, however, HUD is issuing a final rule to comply with a
statutory directive to issue final regulations within 30 days of
enactment of Public Law 109-115.
IV. Findings and Certifications
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
This rule would impose no additional economic or other burdens on small
entities. The entities affected by this rule are agencies administering
tenant-based and project-assisted housing and properties that are
already required to screen applicants applying for assistance. This
rule provides clear directions on how educational financial assistance
is to be calculated in an income determination prior to receiving
assistance under section 8 of the U.S. Housing Act of 1937.
Environmental Impact
In accordance with 24 CFR 50.19(c)(1) of the Department's
regulations, this rule does not direct, provide for assistance or loan
and mortgage insurance for, or otherwise govern or regulate, real
property acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Therefore, this final rule is categorically
excluded from the requirements of the National Environmental Policy Act
(42 U.S.C. 4321 et seq.).
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (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 the private sector. This rule does not impose
any federal mandates on any state, local, or tribal government or the
private sector within the meaning of UMRA.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from publishing any
rule that has federalism implications and 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.
List of Subjects
24 CFR Part 5
Administrative practice and procedure; Aged; Claims; Crime;
Government contracts; Grant programs--housing and community
development; Individuals with disabilities; Intergovernmental
relations; Loan programs-housing and community development; Low and
moderate income housing; Mortgage insurance; Penalties; Pets; Public
housing; Rent subsidies; Reporting and recordkeeping requirements;
Social security; Unemployment compensation; Wages.
24 CFR Part 880
Grant programs--housing and community development; Rent subsidies;
Reporting and recordkeeping requirements.
24 CFR Part 883
Grant programs--housing and community development; Rent subsidies;
Reporting and recordkeeping requirements.
24 CFR Part 884
Grant programs--housing and community development; Rent subsidies;
Reporting and recordkeeping requirements; Rural areas.
24 CFR Part 886
Grant programs--housing and community development; Lead poisoning;
Rent subsidies; Reporting and recordkeeping requirements.
24 CFR Part 891
Aged, Civil rights, Grant programs--housing and community
development, Individuals with disabilities, Loan programs--housing and
community development, Low and moderate income housing, Mental health
programs, Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 982
Grant programs--housing and community development; Grant programs--
Indians; Indians; Public housing; Rent subsidies; Reporting and
recordkeeping requirements.
0
For the reasons stated in the preamble, HUD amends 24 CFR part 5 as
follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
0
1. The authority citation for 24 CFR part 5 is revised to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 1437n, 3535(d),
and Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
2. In Sec. 5.609, add a new paragraph (b)(9) and revise paragraph
(c)(6) to read as follows:
Sec. 5.609 Annual income.
* * * * *
(b) * * *
(9) For section 8 programs only and as provided in 24 CFR 5.612,
any financial assistance, in excess of amounts received for tuition,
that an individual receives under the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.), from private sources, or from an institution of
higher education (as defined under the Higher Education Act of 1965 (20
U.S.C. 1002)), shall be considered income to that individual, except
that financial assistance described in this paragraph is not considered
annual income for persons over the age of 23 with dependent children.
For purposes of this paragraph, ``financial assistance'' does not
include loan proceeds for the purpose of determining income.
* * * * *
(c) * * *
(6) Subject to paragraph (b)(9) of this section, the full amount of
student financial assistance paid directly to the student or to the
educational institution;
* * * * *
0
3. Add Sec. 5.612 to read as follows:
Sec. 5.612 Restrictions on assistance to students enrolled in an
institution of higher education.
No assistance shall be provided under section 8 of the 1937 Act to
any individual who:
(a) Is enrolled as a student at an institution of higher education,
as defined under section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002);
(b) Is under 24 years of age;
(c) Is not a veteran of the United States military;
[[Page 77744]]
(d) Is unmarried;
(e) Does not have a dependent child; and
(f) Is not otherwise individually eligible, or has parents who,
individually or jointly, are not eligible on the basis of income to
receive assistance under section 8 of the 1937 Act.
PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW
CONSTRUCTION
0
4. The authority citation for 24 CFR part 880 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 3535(d), 12701,
13611-13619, and Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
5. In Sec. 880.603(b), the introductory paragraph is revised to read
as follows:
Sec. 880.603 Selection and admission of assisted tenants.
* * * * *
(b) Determination of eligibility and selection of tenants. The
owner is responsible for obtaining and verifying information related to
income eligibility in accordance with 24 CFR part 5, subpart F, and
evidence related to citizenship and eligible immigration status in
accordance with 24 CFR part 5, subpart E, to determine whether the
applicant is eligible for assistance in accordance with the
requirements of 24 CFR part 5, and to select families for admission to
the program, which includes giving selection preferences in accordance
with 24 CFR part 5, subpart D.
* * * * *
PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE
HOUSING AGENCIES
0
6. The authority citation for 24 CFR part 883 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 13611-13619,
and Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
7. In Sec. 883.302, the definitions of Family and Low-Income Family
are removed and the definition of Annual Income is revised to read as
follows:
Sec. 883.302 Definitions.
* * * * *
Annual Income. As defined in part 5 of this title.
* * * * *
PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW
CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING
PROJECTS
0
8. The authority citation for 24 CFR part 884 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 13611-13619,
and Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
9. In Sec. 884.102, the definition of Income is revised to read as
follows:
Sec. 884.102 Definitions.
* * * * *
Income. Income from all sources of each member of the household as
determined in accordance with criteria established by HUD and as
defined in 24 CFR part 5, subpart F.
* * * * *
PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--SPECIAL
ALLOCATIONS
0
10. The authority citation for 24 CFR part 886 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 13611-13619,
and Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
11. In Sec. 886.102, the definition of Income is revised to read as
follows:
Sec. 886.102 Definitions.
* * * * *
Income. Income from all sources of each member of the household as
determined in accordance with criteria established by HUD and as
defined in part 5 of this title.
* * * * *
0
12. Revise Sec. 886.132 to read as follows:
Sec. 886.132 Tenant selection.
Subpart F of 24 CFR part 5 governs selection of tenants and
occupancy requirements applicable under this subpart A of part 880.
0
13. Section 886.321(b)(1) is revised to read as follows:
Sec. 886.321 Marketing.
* * * * *
(b)(1) HUD will determine the eligibility of assistance of families
in occupancy before sales closing. After the sale, the owner shall be
responsible for taking applications, selecting families, and all
related determinations, in accordance with part 5 of this title. (See
especially, 24 CFR part 5, subpart F).
* * * * *
PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH
DISABILITIES
0
14. The authority citation for 24 CFR part 891 continues to read as
follows:
Authority: 12 U.S.C. 1701q, 42 U.S.C. 1437f, 3535(d), 8013, and
Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
15. Section 886.610(c) is revised to read as follows:
Sec. 891.610 Selection and admission of tenants.
* * * * *
(c) Determination of eligibility and selection of tenants. The
Borrower is responsible for determining whether applicants are eligible
for admission and for the selection of families. To be eligible for
admission, an applicant must be an elderly or handicapped family as
defined in Sec. 891.505; meet any project occupancy requirements
approved by HUD; meet the disclosure and verification requirements for
Social Security Numbers and sign and submit consent forms for obtaining
of wage and claim information from State Wage Information Collection
Agencies, as provided by 24 CFR part 5, subpart B; and, if applying for
an assisted unit, be eligible for admission under 24 CFR part 5,
subparts E and F.
* * * * *
PART 982--SECTION 8 TENANT-BASED ASSISTANCE: HOUSING CHOICE VOUCHER
PROGRAM
0
16. The authority citation for 24 CFR part 982 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 3535(d), 12701,
13611-13619, and Sec. 327, Pub. L. 109-115, 119 Stat. 2936.
0
17. Section 982.201(a) is revised to read as follows:
Sec. 982.201 Eligibility and targeting.
(a) When applicant is eligible: general. The PHA may only admit an
eligible family to the program. To be eligible, the applicant must be a
``family;'' must be income-eligible in accordance with paragraph (b) of
this section and 24 CFR part 5, subpart F; must be a citizen or a
noncitizen who has eligible immigration status as determined in
accordance with 24 CFR part 5, subpart E.
* * * * *
0
18. Section 982.552 is amended to add a new paragraph (b)(5) to read as
follows:
Sec. 982.552 PHA Denial or termination of assistance for family.
* * * * *
(b) * * *
[[Page 77745]]
(5) The PHA must deny or terminate assistance if any family member
fails to meet the eligibility requirements concerning individuals
enrolled at an institution of higher education as specified in 24 CFR
5.612.
* * * * *
Dated: December 27, 2005.
Roy A. Bernardi,
Deputy Secretary.
[FR Doc. 05-24672 Filed 12-27-05; 3:28 pm]
BILLING CODE 4210-32-P