[Federal Register Volume 73, Number 101 (Friday, May 23, 2008)]
[Rules and Regulations]
[Pages 29983-29985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11619]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 891

[Docket No. FR-5097-F-02]
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: Final rule.

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SUMMARY: This final rule revises HUD's regulations that govern the 
project

[[Page 29984]]

design and cost standards for HUD's section 202 supportive housing for 
the Elderly and section 811 Persons with Disabilities programs. This 
rule allows project sponsors to use HUD funds for dishwashers in 
individual supportive housing units for the elderly and in independent 
living projects for persons with disabilities. The current regulation 
excludes dishwashers from the list of permitted project amenities. By 
providing access to dishwashers, a standard amenity in today's housing 
market, HUD endeavors to maintain the quality of life for elderly and 
disabled residents, and, further, the use of dishwashers will help 
promote healthy living conditions, and assist independent living. This 
rule will also clarify the applicability of the project design and cost 
standards to section 811 group homes. This final rule follows 
publication of an August 15, 2007, proposed rule on which HUD received 
one comment, which was fully supportive of the rule. HUD is adopting 
the August 15, 2007, proposed rule without change.

DATES: Effective date: June 23, 2008.

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

    On August 15, 2007, at 72 FR 45868, HUD published a proposed rule 
for public comment to amend the Department's regulations governing 
project design and cost standards for HUD's section 202 Supportive 
Housing for the Elderly and section 811 Persons with Disabilities 
programs. Section 202 of the Housing Act of 1959, as amended by 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), authorize 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 
codified in 24 CFR Part 891.
    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. Dishwashers and 
washers and dryers are among the amenities for which HUD funding is 
restricted under the regulation; section 202 and section 811 project 
sponsors may include these amenities, but are not permitted to use HUD 
funds for their purchase or the continued operating costs associated 
with any ineligible amenity. HUD acknowledges that many items once 
considered excess amenities, including dishwashers, are now considered 
standard in today's housing market and that, in addition, their 
presence in housing units for the elderly and persons with disabilities 
would increase the quality of life, promote healthy living conditions, 
and assist independent living.
    The current regulation does not address section 811 group homes 
specifically, therefore an ambiguity exists regarding what amenities 
are allowed in section 811 housing pursuant to Sec.  891.120(c). HUD 
recognizes that the installation of washers and dryers in group homes 
intended for persons with disabilities would increase the supportive 
nature of that housing, and that HUD funding would likely encourage the 
availability of these appliances to benefit and enhance section 811 
programs.

II. This Final Rule

    This final rule follows the publication of an August 15, 2007, 
proposed rule. The public comment period on the proposed rule closed on 
October 15, 2007. HUD received one public comment on the proposed rule. 
This commenter supported the intent of the final rule, stating that 
because the people assisted by these programs are either elderly or 
have some type of disability, ``* * * it is very favorable to have 
amenities such as a dishwasher in their homes because it will help them 
* * * further, it will assist independent living for these people.'' 
HUD is issuing this final rule without change from the proposed rule.

III. Findings and Certifications

Environmental Impact

    This final 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 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

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 regulatory change 
does not revise or establish new binding requirements on project 
sponsors or owners. Rather, this final rule updates HUD's regulations 
to authorize the use of section 202 and section 811 funds for an 
amenity now 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.

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

[[Page 29985]]

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.

0
For the reasons stated in the preamble, HUD amends 24 CFR Part 891 to 
read as follows:

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

0
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.


0
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 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: May 15, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E8-11619 Filed 5-22-08; 8:45 am]
BILLING CODE 4210-67-P