[Federal Register Volume 72, Number 185 (Tuesday, September 25, 2007)]
[Rules and Regulations]
[Pages 54516-54517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18892]



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Part II





Department of Housing and Urban Development





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24 CFR Part 200



 Uniform Physical Condition Standards and Physical Inspection 
Requirements for Certain HUD Housing; Revision to Response Time for 
Requesting a Technical Review of a Physical Inspection Report; Final 
Rule

  Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / 
Rules and Regulations  

[[Page 54516]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 200

[Docket No. FR-5070-F-02]
RIN 2502-AI43


Uniform Physical Condition Standards and Physical Inspection 
Requirements for Certain HUD Housing; Revision to Response Time for 
Requesting a Technical Review of a Physical Inspection Report

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

ACTION: Final rule.

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SUMMARY: HUD's regulations provide for the assessment of the physical 
condition of HUD-assisted multifamily properties and notification to 
owners of such assessment. The owners, under certain circumstances, are 
provided an opportunity to seek a technical review of the physical 
condition assessment, and HUD may take action in certain cases where 
the housing is found not to be in compliance with the physical 
condition standards. Because the current regulations establish 
different time frames for owners to request a technical review, 
depending on whether HUD transmits the inspection results via the 
Internet or by certified mail, HUD published a proposed rule on April 
24, 2007, that would improve uniformity in the technical review request 
process by implementing a standard time frame of 30 calendar days for 
the submission of a request for a technical review. This final rule 
takes into consideration the public comment received on the proposed 
rule and adopts the rule without change.

DATES: Effective Date: October 25, 2007.

FOR FURTHER INFORMATION CONTACT: Kenneth Hannon, Director, Business 
Relationships and Special Initiatives Division, Office of Housing, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 6176, Washington, DC 20410-8000; telephone number (202) 708-3944, 
extension 2599 (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--the April 24, 2007, Proposed Rule

    For multifamily housing, HUD's regulations in 24 CFR part 200, 
subpart P, establish certain administrative processes by which HUD 
notifies owners of HUD's assessment of the physical condition of their 
multifamily housing. The regulations provide owners, under certain 
circumstances, with the opportunity to seek a technical review of HUD's 
physical condition assessment of the multifamily housing. Currently, 
these regulations provide for two different time frames for owners to 
request a technical review of HUD's physical inspection assessment, 
depending on whether HUD transmits the inspection results to the owner 
via the Internet or by certified mail. Owners receiving their 
inspection results by certified mail are provided 30 calendar days to 
submit a request for a technical review, while those owners receiving 
their results electronically have only 15 calendar days to request a 
review.
    On April 24, 2007, HUD published a proposed rule to establish a 
uniform time frame for requesting technical review (72 FR 20405). 
Specifically, HUD proposed to revise 24 CFR 200.857(c)(3) and (d) to 
include a uniform, 30-calendar-day time frame for the submission of a 
request for a technical review for physical inspection results that are 
transmitted to the owner either via the Internet or in hard copy by 
certified mail. The proposed rule provided that HUD must receive 
requests for review no later than 30 calendar days from the date that 
HUD transmits the physical inspection report to the owner (as 
established by the postmark, if applicable). HUD proposed this rule 
because a single time frame for requesting a technical review would be 
more equitable to its clients and simpler for its multifamily field 
offices to administer.

II. This Final Rule

    The public comment period on the April 24, 2007, proposed rule 
closed on May 24, 2007. HUD received one comment from a trade 
association that offered support for the rule. The commenter urged HUD 
to establish uniformity in the technical review request process and 
provide communication about the time frames, once implemented. HUD 
appreciates the commenter's support and has adopted the uniform time 
frames, in the April 24, 2007, proposed rule, without change.

III. Findings and Certifications

Paperwork Reduction Act

    The information collection requirements contained in this final 
rule have been approved by the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and 
assigned OMB Control Number 2502-0369. In accordance with the Paperwork 
Reduction Act, an agency may not conduct or sponsor, and a person is 
not required to respond to, a collection of information, unless the 
collection displays a currently valid OMB control number.

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.).

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 rule establishes 
a uniform time frame for submission of review requests for all owners, 
regardless of size. The regulatory change is procedural and does not 
revise or establish new binding requirements on owners. HUD anticipates 
that a uniform time frame will eliminate confusion and, therefore, 
expedite the processing of review requests. Accordingly, the 
undersigned certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

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

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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.

List of Subjects in 24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Home improvement, Housing standards, 
Incorporation by reference, Lead poisoning, Loan programs, Housing and 
community development, Minimum property standards, Mortgage insurance, 
Organization and functions (government agencies), Penalties, Reporting 
and recordkeeping requirements, Social Security, Unemployment 
compensation, and Wages.

0
Accordingly, for the reasons stated in the preamble, HUD amends 24 CFR 
part 200 as follows:

PART 200--INTRODUCTION TO FHA PROGRAMS

0
1. The authority citation for 24 CFR part 200 continues to read as 
follows:

    Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).


0
2. Revise Sec.  200.857(c)(3) and (d) introductory text to read as 
follows:


Sec.  200.857  Administrative process for scoring and ranking the 
physical condition of multifamily housing properties.

* * * * *
    (c) * * *
    (3) If, following review of the physical inspection results and 
score, the owner reasonably believes that an objectively verifiable and 
material error (or errors) occurred in the inspection, which, if 
corrected, will result in a significant improvement in the property's 
overall score (``significant improvement'' is defined in paragraph 
(d)(4) of this section), the owner may submit a written request for a 
technical review. The technical review request must be received in 
writing no later than 30 calendar days (as established by the postmark, 
if applicable) from the date the physical inspection results are 
transmitted to the owner by REAC, whether the results and score are 
transmitted to the owner via the Internet or by hard copy via certified 
mail.
    (d) Technical review of physical inspection results. A request for 
a technical review of physical inspection results must be submitted in 
writing to REAC and must be received by REAC no later than the 30th 
calendar day, as applicable under paragraph (c)(3) of this section, 
following submission of the physical inspection report to the owner, as 
provided in paragraph (c)(1) of this section.
* * * * *

    Dated: September 19, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
 [FR Doc. E7-18892 Filed 9-24-07; 8:45 am]
BILLING CODE 4210-67-P