[Federal Register Volume 72, Number 157 (Wednesday, August 15, 2007)]
[Proposed Rules]
[Pages 45868-45869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15962]



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Part II





Department of Housing and Urban Development





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24 CFR Part 891



 Project Design and Cost Standards for the Section 202 and Section 811 
Programs; Proposed Rule

  Federal Register / Vol. 72, No. 157 / Wednesday, August 15, 2007 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 891

[Docket No. FR-5097-P-01]
RIN 2502-AI48


Project Design and Cost Standards for the Section 202 and Section 
811 Programs

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

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise HUD's regulations that govern 
the project design and cost standards for HUD's Section 202 Supportive 
Housing for the Elderly and Section 811 Persons with Disabilities 
programs. Under these programs, project sponsors are prohibited from 
using HUD funds for certain project amenities, including swimming 
pools, private balconies, dishwashers, and washers and dryers. This 
rule proposes to remove an item from the list of restricted amenities. 
Specifically, this rule would allow project sponsors to use HUD funds 
for dishwashers in individual supportive housing units for the elderly 
and independent living projects for persons with disabilities. In 
addition, the proposed rule would clarify the applicability of the 
project design and cost standards to Section 811 group homes.

DATES: Comment Due Date: October 15, 2007.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Interested persons also may 
submit comments electronically through the Federal eRulemaking Portal 
at http://www.regulations.gov. HUD strongly encourages commenters to 
submit comments electronically so that HUD can make them immediately 
available to the public. Commenters should follow the instructions 
provided on that site to submit comments electronically. Facsimile 
(FAX) comments are not acceptable. In all cases, communications must 
refer to the docket number and title. All comments and communications 
submitted to HUD will be available for public inspection and copying 
between 8 a.m. and 5 p.m. weekdays at the above address. Due to 
security measures at the HUD Headquarters building, an advance 
appointment to review the public comments must be scheduled by calling 
the Regulations Division at (202) 708-3055 (this is not a toll-free 
number). Copies of all comments submitted are available for inspection 
and downloading at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Yvonne Jefferson, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 6154, 
Washington, DC 20410-8000, telephone number (202) 708-3000 (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

    Section 202 of the Housing Act of 1959, as amended under section 
801 of the Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 
1701q) and Section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013), authorizes HUD to establish programs to 
provide assistance to expand the supply of housing with supportive 
services for the elderly and persons with disabilities. HUD's 
regulations that establish the Section 202 Supportive Housing for the 
Elderly program (Section 202 program) and HUD's Section 811 Supportive 
Housing for Persons with Disabilities program (Section 811 program) are 
set forth at 24 CFR part 891.
    Under the Section 202 program, HUD provides assistance to expand 
the supply of housing with supportive services for the elderly. 
Specifically, HUD provides capital advances to eligible private, 
nonprofit sponsors to finance the development of rental housing with 
supportive services for the elderly. Similarly, the Section 811 program 
provides assistance to expand the supply of housing with the 
availability of supportive services for persons with disabilities. 
Again, HUD provides capital advances to eligible nonprofit sponsors, 
which have a Section 501(c)(3) tax exemption ruling, to finance the 
development of rental housing with the availability of supportive 
services for persons with disabilities.
    Section 891.120 establishes the project design and cost standards 
for Section 202 and Section 811 projects. Projects must be modest in 
design and certain amenities are not eligible for HUD capital advance 
or project rental assistance contract (PRAC) funds. Among the amenities 
for which HUD funding is restricted are private balconies and decks, 
atriums, bowling alleys, swimming pools, saunas, Jacuzzis, dishwashers, 
trash compactors, and washers and dryers. Section 202 and 811 project 
sponsors may include these amenities, but must not use HUD funds for 
the purchase of an ineligible amenity or the continued operating costs 
associated with the ineligible amenity.

II. This Proposed Rule

    This proposed rule would revise HUD's regulations that govern the 
project design and cost standards for HUD's Section 202 and Section 811 
programs. Although HUD believes that projects must be modest in design, 
HUD acknowledges that many items once considered ``excess amenities'' 
are standard in today's housing market. HUD is also aware that certain 
amenities, such as dishwashers, are necessary to maintain the quality 
of life for elderly and disabled residents. Providing the elderly and 
persons with disabilities with the necessary appliances to assist with 
cleaning of dishes would help promote healthy living conditions, and 
assist independent living.
    This rule proposes to remove dishwashers from the list of 
restricted amenities. Specifically, this rule would amend 24 CFR 
891.120(c) to allow project sponsors to use HUD funds for dishwashers 
in independent living units occupied by the elderly and persons with 
disabilities. In addition, HUD proposes to clarify the applicability of 
the regulations at 24 CFR 891.120 to Section 811 group homes. 
Currently, the provisions in Sec.  891.120(c) do not address Section 
811 group homes specifically; therefore, some confusion exists 
concerning eligible amenities in Section 811 group homes.

III. Findings and Certifications

Environmental Impact

    This proposed 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. Accordingly, under 24 CFR 50.19(c)(1), this 
proposed rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

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Regulatory Flexibility Act

    The Regulatory Flexibility Act (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. The proposed rule 
would allow Section 202 and Section 811 funds to be used to include a 
certain household appliance in supportive housing units for the elderly 
and persons with disabilities. The regulatory change does not revise or 
establish new binding requirements on project sponsors or owners. 
Rather, this proposed rule updates HUD's regulations to authorize the 
use of Section 202 and Section 811 funds for an amenity standard in 
today's housing market. The change will assist the elderly and persons 
with disabilities to live independently. Accordingly, the undersigned 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities.
    Notwithstanding HUD's determination that this rule will not have a 
significant economic impact on a substantial number of small entities, 
HUD specifically invites comments regarding less burdensome 
alternatives to this rule that will meet HUD's objectives, as described 
in this preamble.

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 mandate on state, local, or tribal government, or the 
private sector within the meaning of UMRA.

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 nor preempt state law within the meaning of 
the Executive Order.

Catalog of Federal Domestic Assistance (CFDA)

    The CFDA number for the Section 202 program is 14.157 and the CFDA 
number for the Section 811 program is 14.181.

List of Subjects in 24 CFR Part 891

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Loan programs--housing and community 
development, Rent subsidies, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, HUD proposes to amend 24 
CFR part 891 to read as follows:

PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH 
DISABILITIES

    1. The authority citation for part 891 continues to read as 
follows:

    Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.

    2. Revise Sec.  891.120(c) to read as follows:


Sec.  891.120  Project design and cost standards.

* * * * *
    (c) Restrictions on amenities. Projects must be modest in design. 
In individual units in supportive housing for the elderly and in 
independent living facilities for persons with disabilities, amenities 
not eligible for HUD funding include individual unit balconies and 
decks, atriums, bowling alleys, swimming pools, saunas, Jacuzzis, trash 
compactors, washers, and dryers. However, HUD funding is eligible to 
pay for washers and dryers in group homes for persons with 
disabilities. Sponsors may include certain excess amenities but they 
must pay for them from sources other than the Section 202 or 811 
capital advance. They must also pay for the continuing operating costs 
associated with any excess amenities from sources other than the 
Section 202 or 811 project rental assistance contract.
* * * * *

    Dated: July 13, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
 [FR Doc. E7-15962 Filed 8-14-07; 8:45 am]
BILLING CODE 4210-67-P