[Federal Register Volume 73, Number 44 (Wednesday, March 5, 2008)]
[Rules and Regulations]
[Pages 11811-11812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4288]



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 Rules and Regulations
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  Federal Register / Vol. 73, No. 44 / Wednesday, March 5, 2008 / Rules 
and Regulations  

[[Page 11811]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3565

RIN 0575-AC62


Annual Guarantee Fee Due Date

AGENCY: Rural Housing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Housing Service, an Agency under USDA Rural 
Development, is amending its regulations to change the due date of the 
annual guarantee fee for the Section 538 Guarantee Rural Rental Housing 
loans. The annual fee is a non-refundable amount that the lender must 
pay each year that the loan guarantee remains in effect. Currently, the 
Finance Office in St. Louis calculates annual fees manually since the 
borrower submissions of December 31 year-end financial information are 
not loaded into their automated systems by January 1, when annual fees 
are due. The Finance Office has requested that the annual fee due date 
be changed from January 1 to February 28 to allow their automated 
systems to be uploaded with December 31 year-end information thus 
enabling them to automate the annual fee calculation process.

DATES: Effective Date: This rule is effective April 4, 2008.

FOR FURTHER INFORMATION CONTACT: C.B. Alonso, Guaranteed Rural Rental 
Housing Program, Multi Family Housing Processing Division, USDA Rural 
Development, STOP 0781, 1400 Independence Avenue, SW., Washington, DC 
20250-0781; Telephone: 202-720-1624; FAX: 202-205-5066; E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Classification

    This has been reviewed under Executive Order 12866. The rule has 
been determined not to be significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget (OMB).

Regulatory Flexibility Act

    The Agency Administrator has determined that this rule will not 
have a significant economic impact on a substantial number of small 
entities as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.). New provisions included in this rule will not impact a 
substantial number of small entities to a greater extent than large 
entities. Therefore, a regulatory flexibility analysis was not 
performed.

Public Comments

    The Agency received no comments from the publication of the 
Proposed Rule in the Federal Register on October 4, 2006 [Volume 71 
Federal Register 58545-58546].

Paperwork Reduction Act

    There are no new reporting or recordkeeping requirements associated 
with this rule.

Unfunded Mandates Reform Act

    This rule contains no Federal mandates (under the regulatory 
provisions of title II of the Unfunded Mandates Reform Act of 1995) for 
State, local, and tribal governments or the private sector. Thus, this 
rule is not subject to the requirements of sections 202 and 205 of the 
Unfunded Mandates Reform Act of 1995.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' The Agency has determined that 
this action does not constitute a major Federal action affecting 
significantly the quality of the human environment, and, in accordance 
with the National Environmental Policy Act of 1969, Public Law 91-190, 
an Environmental Impact Statement is not required.

Programs Affected

    The program affected is listed in the Catalog of Federal Domestic 
Assistance under Number 10.438--Rural Rental Housing Guaranteed Loans.

Intergovernmental Consultation

    For the reasons contained in the Final Rule related Notice to 7 CFR 
part 3015, subpart V, this program, 10.438--Rural Rental Housing 
Guaranteed Loans, is subject to Executive Order 12372 which requires 
intergovernmental consultation with State and local officials. The 
Agency has conducted intergovernmental consultation in the manner 
delineated in RD Instruction 1940-J.

Executive Order 13132, Federalism

    The policies contained in this rule do not have any substantial 
direct effect on States, the relationship between the National 
Government and the States, or the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on State and local 
Governments. Therefore, consultation with the States is not required.

Discussion

    Rural Development administers the Section 538 Guaranteed Rural 
Rental Housing Program (GRRHP) under the authority of the Housing Act 
of 1949. Under the GRRHP, Rural Development guarantees loans for the 
development of housing and related facilities for low or moderate-
income families in rural areas.
    Rural Development is amending 7 CFR 3565.53(b) to change the due 
date of the annual guarantee fee. The annual fee is a non-refundable 
amount that the lender must pay each year that the loan guarantee 
remains in effect. Currently, the Finance Office in St. Louis 
calculates annual fees manually since the borrower submissions of 
December 31 year-end financial information are not loaded into the 
Finance Office's automated systems by January 1, when annual fees are 
due. The Finance Office has requested that the annual fee due date be 
changed from January 1 to February 28 to allow their automated systems 
to be uploaded with December 31 year-end information. The revision of 7 
CFR 3565.53(b) will facilitate the automation of the annual fee 
calculation process. Rural Development has been charging this fee since 
the inception of the GRRHP and is authorized under 42 U.S.C. 1490p-2(g) 
and is authorized under 42 U.S.C. 1490p-2(u) to retain this fee to 
offset the cost of the guarantee.

[[Page 11812]]

List of Subjects in 7 CFR Part 3565

    Guaranteed loans, Low and moderate income housing, Surety bonds.

0
For the reasons set forth in the preamble, Title 7, Chapter XXXV of the 
Code of Federal Regulations is amended as follows:

PART 3565--GUARANTEED RURAL RENTAL HOUSING PROGRAM

0
1. The authority citation for part 3565 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart B--Guarantee Requirements

0
2. Section 3565.53(b) is revised to read as follows:


Sec.  3565.53  Guarantee fees.

* * * * *
    (b) Annual guarantee fee. An annual guarantee fee of at least 50 
basis points (one-half percent) of the outstanding principal amount of 
the loan will be charged each year or portion of a year that the 
guarantee is in effect. This fee will be collected on February 28, of 
each calendar year.
* * * * *

    Dated: February 19, 2008.
Russell T. Davis,
Administrator, Rural Housing Service.
 [FR Doc. E8-4288 Filed 3-4-08; 8:45 am]
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