[Federal Register Volume 79, Number 43 (Wednesday, March 5, 2014)]
[Rules and Regulations]
[Pages 12382-12384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04514]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 1005

[Docket No. FR-5772-F-01]
RIN 2577-AC91


Conforming Amendment to the Section 184 Indian Housing Loan 
Guarantee Program Regulations

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

ACTION: Final rule.

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SUMMARY: This final rule revises the regulations governing the Section 
184 Indian Housing Loan Guarantee program (Section 184 program) to 
conform to a recent statutory change. The 2013 Consolidated and Further 
Continuing Appropriations Act amends section 184(d) of the Housing and 
Community Development Act of 1992 by authorizing HUD to increase the 
fee for the guarantee of Section 184 loans up to 3 percent of the 
principal obligation of the loan and to establish the amount of the fee 
by publishing a notice in the Federal Register. This final rule amends 
the Section 184 Indian Housing Loan Guarantee Program regulations to 
reflect this new authority. By notice published elsewhere in today's 
Federal Register, HUD is exercising this authority to increase the loan 
guarantee fee to 1.5 percent of the principal obligation from the 
current rate of 1 percent.

DATES: Effective Date: April 4, 2014.

FOR FURTHER INFORMATION CONTACT: Rodger Boyd, Deputy Assistant 
Secretary for Native American Programs, Office of Public and Indian 
Housing, Department of Housing and Urban Development, 451 7th Street 
SW.,

[[Page 12383]]

Room 4126, Washington, DC 20410; telephone number 202-401-7914 (this is 
not a toll-free number). Persons with hearing or speech disabilities 
may access this number through TTY by calling the toll-free Federal 
Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 184 of the Housing and Community Development Act of 1992 
(Pub. L. 102-550, approved October 28, 1992), as amended by the Native 
American Housing Assistance and Self-Determination Act of 1996 (Pub. L. 
104-330, approved October 26, 1996), established the Section 184 
program to provide access to sources of private financing to Indian 
families, Indian housing authorities, and Indian tribes that otherwise 
could not acquire housing financing because of the unique legal status 
of Indian land. Because title to trust or restricted land is 
inalienable, title cannot be conveyed to eligible Section 184 program 
borrowers. As a consequence, financial institutions are unable to 
utilize the land as security in mortgage lending transactions. The 
Section 184 program addresses obstacles to mortgage financing on trust 
land and in other Indian and Alaska Native areas by giving HUD the 
authority to guarantee loans to eligible persons and entities to 
construct, acquire, refinance, or rehabilitate one-to-four family 
dwellings in these areas.
    The Section 184 program charges borrowers a guarantee fee to 
participate in the program and the fee, along with other funds and 
appropriations, is used to fulfill obligations of the Secretary with 
respect to the loans guaranteed under this section. Section 184(d) of 
the Housing and Community Development Act of 1992 limited the guarantee 
fee to a maximum of 1 percent of the principal obligation, and HUD set 
the guarantee fee at 1 percent by regulation. (See 24 CFR 1005.109.) 
The 2013 Consolidated Appropriations Act (Pub. L. 113-6, approved March 
26, 2013) (2013 Appropriations Act) amends section 184(d) of the 
Housing and Community Development Act of 1992 by authorizing the 
Secretary to increase the fee for the guarantee of loans up to 3 
percent of the principal obligation of the loan and to establish the 
amount of the fee by publishing a notice in the Federal Register.

II. This Final Rule

    This final rule codifies in regulation HUD's new authority by 
revising the guarantee fee language in Sec.  1005.109 to conform to the 
new 2013 Consolidated Appropriations Act language. Specifically, HUD 
replaces the language preventing the guarantee fee from exceeding 1 
percent of the of the loan amount with the language authorizing HUD to 
increase the fee for the guarantee of loans up to 3 percent of the 
principal obligation of the loan, or any increase established by 
statute, and to establish the amount of the fees and premiums through 
notice published in the Federal Register. Elsewhere in today's Federal 
Register, and consistent with the statutory authority of the 2013 
Appropriations Act, HUD has published a notice that increases the loan 
guarantee fee to 1.5 percent of the principal obligation from the 
current rate of 1 percent.

III. Justification for Final Rulemaking

    In general, HUD publishes a rule for public comment before issuing 
a rule for effect, in accordance with HUD's regulations on rulemaking 
at 24 CFR part 10. Part 10, however, provides in Sec.  10.1 for 
exceptions from that general rule where HUD finds good cause to omit 
advance notice and public participation. The good cause requirement is 
satisfied when the prior public procedure is ``impracticable, 
unnecessary or contrary to the public interest.''
    HUD finds that good cause exists to publish this rule for effect 
without soliciting public comment in that prior public procedure is 
unnecessary. This final rule codifies, in its Section 184 regulations, 
without change, HUD's new statutory authority to increase the Section 
184 guarantee fee up to 3 percent of the principal obligation.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if the 
regulation is necessary, to select the regulatory approach that 
maximizes net benefits. As discussed above in this preamble, this final 
rule updates the regulation to reflect HUD's new statutory authority 
only. As a result, this rule was determined to not be a significant 
regulatory action under section 3(f) of Executive Order 12866, 
Regulatory Planning and Review, and therefore was not reviewed by the 
Office of Management and Budget (OMB).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 605(b)) generally requires 
an agency to conduct 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. Since notice and 
comment rulemaking is not necessary for this rule, the provisions of 
the Regulatory Flexibility Act (Pub. L. 96-354, 5 U.S.C. 601-612) do 
not apply.

Executive Order 13132, 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 final rule will not have 
federalism implications and would not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive Order.

Environmental Review

    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).

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 the private sector. This final rule does not 
impose any federal mandates on any state, local, or tribal government, 
or the private sector within the meaning of UMRA.

List of Subjects in 24 CFR Part 1005

    Indians, Loan programs-Indians, Reporting and recordkeeping 
requirements.

    Accordingly, for the reasons stated above, HUD amends 24 CFR part 
1005 to read as follows:

[[Page 12384]]

PART 1005--LOAN GUARANTEES FOR INDIAN HOUSING

0
1. The authority citation for part 1005 continues to read as follows:

    Authority:  12 U.S.C. 1715z-13a, 15 U.S.C. 1639c, 42 U.S.C. 
3535(d).


0
2. Revise Sec.  1005.109 to read as follows:


Sec.  1005.109  Guarantee Fees.

    HUD shall establish and collect, at the time of issuance of the 
guarantee, a fee for the guarantee of loans under this section, in an 
amount not exceeding 3 percent of the principal obligation of the loan, 
or any increase established by statute. HUD shall establish the amount 
of the fee by publishing a notice in the Federal Register, and shall 
deposit any fees collected under this section in the Indian Housing 
Loan Guarantee Fund.

    Dated: February 21, 2014.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 2014-04514 Filed 3-4-14; 8:45 am]
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