[Federal Register Volume 76, Number 185 (Friday, September 23, 2011)]
[Proposed Rules]
[Pages 59069-59071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24514]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 985

[Docket No. FR-5532-P-01]
RIN 2577-AC76


Revision to the Section 8 Management Assessment Program Lease-Up 
Indicator

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend HUD's regulations for the 
Section 8 Management Assessment program (SEMAP) to revise the process 
by which HUD measures and verifies performance under the SEMAP lease-up 
indicator. Specifically, HUD proposes to amend the existing regulation 
to reflect that assessment of a public housing agency's (PHA) leasing 
indicator will be based on a calendar year cycle, rather than a fiscal 
year cycle, which would increase administrative efficiencies for PHAs. 
This proposed rule would also clarify that units assisted under the 
voucher homeownership option or occupied under a project-based housing 
assistance (HAP) contract are included in the assessment of PHA units 
leased.

DATES: Comment Due Date: October 24, 2011.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street, 
SW., Room 10276, Washington, DC 20410-0500. Communications should refer 
to the above docket number and title. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to

[[Page 59070]]

the Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street, SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
http://www.regulations.gov. HUD strongly encourages commenters to 
submit comments electronically. Electronic submission of comments 
allows the commenter maximum time to prepare and submit a comment, 
ensures timely receipt by HUD, and enables HUD to make them immediately 
available to the public. Comments submitted electronically through the 
http://www.regulations.gov Web site can be viewed by other commenters 
and interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
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 appointment to review the public comments must be 
scheduled in advance by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). Individuals with speech or 
hearing impairments may access this number via TTY by calling the 
Federal Relay Service at 800-877-8339. Copies of all comments submitted 
are available for inspection and downloading at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Laure Rawson, Director, Housing 
Voucher Management and Operations Division, Office of Public Housing 
and Voucher Programs, Office of Public and Indian Housing, Department 
of Housing and Urban Development, 451 7th Street, SW., Room 4216, 
Washington, DC 20410, telephone number 202-402-2425.

SUPPLEMENTARY INFORMATION:

I. Background

    In 2005, the Office of Public and Indian Housing (PIH) issued PIH 
Notice 2005-1, which implemented a policy for voucher renewal funding 
based on a calendar year system as provided by the Consolidated 
Appropriations Act, 2005 (Pub. L. 108-447, 118 Stat. 2809, approved 
December 8, 2004). The 2005 Consolidated Appropriations Act provides, 
in relevant part, that ``the Secretary for the calendar year 2005 
funding cycle shall renew such contracts for each public housing agency 
based on verified Voucher Management System leasing and cost data.'' 
(See 118 Stat. 3295.) The 2005 PIH notice provides that ``PHAs will 
receive monthly disbursements from HUD on the basis of the PHA's 
calculated calendar year budget.'' Since the issuance of this notice 
and consistent with the 2005 appropriations act, HUD has provided PHAs 
with renewal funding for their Housing Choice Voucher (HCV) program on 
a calendar year basis. At the beginning of each calendar year, PHAs are 
notified of their funding amounts for the calendar year and they plan 
their voucher issuance and leasing according to that funding cycle.
    In contrast to the process for measuring voucher management system 
leasing and cost data, the SEMAP lease-up indicator continues to 
measure a PHA's lease-up rate on a fiscal year basis. The use of a 
calendar year for renewal funding, while using a fiscal year system for 
SEMAP measurements, has resulted in increased complexity for PHAs 
administering the voucher program and programmatic inefficiency. To 
eliminate such complexity, and reduce inefficiency in the voucher 
program resulting from two processes based on different periods of 
measurement, through this rule HUD would amend the SEMAP regulations to 
provide for the SEMAP lease-up indicator to be measured based on a 
calendar year funding cycle, rather than the existing fiscal year 
cycle.
    This proposed rule would also clarify that units assisted under the 
voucher homeownership option or occupied under a project-based housing 
assistance (HAP) contract are included in the assessment of PHA units 
leased. These homeownership units and project-based voucher units have 
always been included in the assessment, but this is not explicit in 
current regulations.

II. Findings and Certifications

Justification for 30-Day Public Comment Period

    It is the general practice of the Department to provide a 60-day 
public comment period on all proposed rules. However, the Department is 
shortening its usual 60-day public comment period to 30 days for this 
proposed rule. This rule, which promotes consistency within HUD 
regulations, alleviates unnecessary administrative burdens for PHAs, 
and provides a more accurate reflection of PHA lease-up rates. 
Therefore, a 60-day public comment period prior to implementation is 
unnecessary, and to further delay implementation of this policy would 
be contrary to the public interest.

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this rule under 
Executive Order 12866 (entitled ``Regulatory Planning and Review''). 
OMB determined that this proposed rule is a ``significant regulatory 
action,'' as defined in section 3(f) of the Order (although not 
economically significant, as provided in section 3(f)(1) of the Order). 
The docket file is available for public inspection in the Regulations 
Division, Office of General Counsel, Department of Housing and Urban 
Development, 451 7th Street, SW., Room 10276, Washington, DC 20410-
0500. Due to security measures at the HUD Headquarters building, please 
schedule an appointment to review the docket file by calling the 
Regulations Division at 202-402-3055 (this is not a toll-free number). 
Individuals with speech or hearing impairments may access this number 
via TTY by calling the Federal Relay Service at 800-877-8339.

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. 
The proposed regulatory amendments will not impose any economic costs 
on nonprofit organizations. Rather, the sole purpose of the proposed 
rule is to bring HUD regulations in line with current PHA practice. 
This rule would also provide clarification for PHAs regarding units 
included in this measure.

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

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construction materials, manufactured housing, or occupancy. This rule 
is limited to the means by which PHAs lease-up rates are measured. 
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).

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on state and local governments and 
is not required by statute, or preempts state law, unless the relevant 
requirements of section 6 of the Executive Order are met. 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.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for federal agencies to 
assess the effects of their regulatory actions on state, local, and 
tribal governments, and on the private sector. This rule does not 
impose any federal mandates on any state, local, or tribal government, 
or on the private sector, within the meaning of UMRA.

List of Subjects in 24 CFR Part 985

    Grant programs--housing and community development, Housing, Rent 
subsidies, Reporting and recordkeeping requirements.

    Accordingly, for the reasons stated in the preamble, HUD proposes 
to amend 24 CFR part 985 as follows:

PART 985--SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP)

    1. The authority citation for part 985 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d).

    2. Revise Sec.  985.3(n) to read as follows:


Sec.  985.3  Indicators, HUD verification methods and ratings.

* * * * *
    (n) Lease-up. (1) This indicator shows whether the PHA enters into 
HAP contracts for the number of the PHA's baseline voucher units (units 
that are contracted under an ACC) for the calendar year that ends on or 
before the PHA's fiscal year or whether the PHA has expended its 
allocated budget authority for the same calendar year. Units assisted 
under the voucher homeownership option and units occupied under a 
project-based HAP contract are included in the measurement of this 
indicator. Units and funding contracted under an ACC during the 
assessed calendar year and units and funding that are obligated for 
litigation are not included in the baseline number of voucher units.
    (2) HUD verification method: Percent of units leased under a 
tenant-based or project-based HAP contract or occupied by homeowners 
under the voucher homeownership option during the calendar year that 
ends on or before the assessed PHA's fiscal year, or the percent of 
allocated budget authority expended during the calendar year that ends 
on or before the assessed PHA's fiscal year. The percent of units 
leased is determined by taking unit months leased under a HAP contract 
and unit months occupied by homeowners under the voucher homeownership 
option as shown in HUD systems for the calendar year that ends on or 
before the assessed PHA fiscal year and dividing that number by the 
number of unit months available for leasing based on the number of 
baseline units available at the beginning of the calendar year.
    (3) Rating: (i) The percent of units leased or occupied by 
homeowners under the voucher homeownership option or the percent of 
allocated budget authority expended during the calendar year that ends 
on or before the assessed PHA fiscal year was 98 percent or more. 20 
points.
    (ii) The percent of units leased or occupied by homeowners under 
the voucher homeownership option or the percent of allocated budget 
authority expended during the calendar year that ends on or before the 
assessed PHA fiscal year was 95 to 97 percent. 15 points.
    (iii) The percent of units leased or occupied by homeowners under 
the voucher homeownership option and the percent of allocated budget 
authority expended during the calendar year that ends on or before the 
assessed PHA fiscal year was less than 95 percent. 0 points.
* * * * *

    Dated: August 19, 2011.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing--HUD.
[FR Doc. 2011-24514 Filed 9-22-11; 8:45 am]
BILLING CODE 4210-67-P