[Federal Register Volume 79, Number 240 (Monday, December 15, 2014)]
[Rules and Regulations]
[Pages 74015-74016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-29281]


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 Rules and Regulations
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  Federal Register / Vol. 79, No. 240 / Monday, December 15, 2014 / 
Rules and Regulations  

[[Page 74015]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3550

RIN 0575-AD01


Direct Single Family Housing Loans and Grants

AGENCY: Rural Housing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Housing Service (RHS) is amending its regulation by 
changing the definition of ``rural'' or ``rural area.'' This change is 
a direct result of legislation passed under the Agricultural Act of 
2014 (2014 Farm Bill) P.L. 113-79 in which the definition of ``rural'' 
and ``rural area'' was amended. No comments are being accepted for this 
final rule as this change has been mandated through a statutory 
requirement.

DATES: This rule will become effective January 14, 2015.

FOR FURTHER INFORMATION CONTACT: Shantelle Gordon, Program Analyst, 
Loan Origination Branch, Single Family Housing Direct Loan Division, 
Rural Housing Service, Stop 0783, 1400 Independence Avenue SW., 
Washington, DC 20250-0783, Telephone: 202-205-9567.

SUPPLEMENTARY INFORMATION:

Statutory Authority

    Title V, Section 1480 of the Housing Act authorizes the Secretary 
of Agriculture to promulgate rules and regulations as deemed necessary 
to carry out the purpose of that title.

Executive Order 12866--Classification

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

Executive Order 12988--Civil Justice Reform

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. In accordance with that Executive Order: (1) All State 
and local laws and regulations that are in conflict with this rule will 
be preempted; (2) No retroactive effect will be given to this rule; and 
(3) Administrative proceedings in accordance with the regulations of 
the National Appeals Division of USDA at 7 CFR part 11 must be 
exhausted before bringing suit in court challenging action taken under 
this rule unless those regulations specifically allow bringing suit at 
an earlier time.

Regulatory Flexibility Act

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has 
determined and certified by signature of this document that this rule 
will not have a significant economic impact on a substantial number of 
small entities. There will be no significant information collection or 
regulatory requirements imposed on small entities under this rule.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection activities associated with this rule are covered 
under OMB Number: 0575-0172. This rule contains no new reporting or 
recordkeeping requirements that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C. 1501 et seq., establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments and the private sector. Under section 202 of the 
UMRA, RHS generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, or tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires RHS to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, more cost-effective or least burdensome alternative that 
achieves the objectives of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for state, local, and tribal 
Governments or the private sector. Therefore, this rule is not subject 
to the requirements of sections 202 and 205 of the UMRA.

Environmental Impact Statement

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

Programs Affected

    The program affected by this rule is listed in the Catalog of 
Federal Domestic Assistance as 10.410, Very Low to Moderate Income 
Housing Loans.

Executive Order 12372--Intergovernmental Review of Federal Programs

    For the reasons set forth in the final rule published at 7 CFR part 
3015, subpart V, and the related notice (48 FR 29115), these programs 
are not subject to Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.

E-Government Act Compliance

    The RHS is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments

    This executive order imposes requirements on RHS in the development 
of regulatory policies that have tribal implications or preempt tribal 
laws. RHS has determined that this final rule does not have a 
substantial direct effect on one or more Indian tribe(s) or on either 
the

[[Page 74016]]

relationship or the distribution of powers and responsibilities between 
the Federal Government and the Indian tribes. Thus, this rule is not 
subject to the requirements of Executive Order 13175.

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 on 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.

Non-Discrimination Statement

    USDA prohibits discrimination in all its programs and activities on 
the basis of race, color, national origin, age, disability, and where 
applicable, sex, marital status, familial status, parental status, 
religion, sexual orientation, political beliefs, genetic information, 
reprisal, or because all or part of an individual's income is derived 
from any public assistance program. (Not all prohibited bases apply to 
all programs.)
    To file a complaint of discrimination, complete, sign and mail a 
program discrimination complaint form, (available at any USDA office 
location or online at www.ascr.usda.gov, or write to: U.S. Department 
of Agriculture, Office of the Assistant Secretary for Civil Rights, 
1400 Independence Avenue SW., STOP 9410, Washington, DC 20250-9410. Or 
call toll-free (866) 632-9992 (voice) to obtain additional information, 
the appropriate office or to request documents.
    Individuals who are deaf, hard of hearing or have speech 
disabilities may contact USDA through the Federal Relay Service at 
(800) 877-8339 or (877) 845-6136 (in Spanish). ``USDA is an equal 
opportunity provider, employer and lender.''
    Persons with disabilities who require alternative means for 
communication of program information (e.g. Braille, large print, 
audiotape, etc.) should contact USDA TARTET Center at (202) 720-2600 
(voice and TDD).

Background

    When the Agricultural Act of 2014 (2014 Farm Bill) (P.L. 113-79) 
was passed on February 7, 2014, Section 6208 of the Farm Bill amended 
language to Section 520 of the Housing Act of 1949 (42 U.S.C. 1490) to 
include language that an area deemed rural prior to October 1, 1990, 
and later determined not to be rural after the 1990, 2000, or 2010 
census, and any area deemed rural anytime between January 1, 2000, and 
December 31, 2010, will retain eligibility until the receipt of the 
2020 census data if the area has a population in excess of 10,000 but 
not in excess of 35,000, is rural in character, and has a serious lack 
of mortgage credit. To ensure that 7 CFR part 3550 is in line with the 
revised provisions, RHS will revise its definition of ``rural area'' in 
7 CFR 3550.10 to include the new language to the Housing Act of 1949, 
as amended.

List of Subjects in 7 CFR Part 3550

    Administrative practice and procedure, Conflict of interests, 
Environmental impact statements, Equal credit opportunity, Fair 
housing, Accounting, Housing, Loan programs- Housing and community 
development, Low and moderate income housing, Manufactured homes, 
Reporting and recordkeeping requirements, Rural areas, Subsidies.
    For the reasons stated in the preamble, chapter XXXV, Title 7 of 
the Code of Federal Regulations, is amended as follows:

PART 3550--DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS

0
1. The authority citation for part 3550 continues to read as follows:

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

Subpart A--General

0
2. In Sec.  3550.10 revise the definition of ``Rural area'' to read as 
follows:


Sec.  3550.10  Definitions.

* * * * *
    Rural area. A rural area is:
    (a) Open country or any town, village, city, or place, including 
the immediate adjacent densely settled area, which is not part of or 
associated with an urban area and which:
    (1) Has a population not in excess of 2,500 inhabitants; or
    (2) Has a population in excess of 2,500 but not in excess of 10,000 
if it is rural in character; or
    (3) Has a population in excess of 10,000 but not in excess of 
20,000, and--
    (i) Is not contained within a Metropolitan Statistical Area; and
    (ii) Has a serious lack of mortgage credit for lower and moderate-
income families as determined by the Secretary of Agriculture and the 
Secretary of Housing and Urban Development.
    (b) Any area classified as ``rural'' or a ``rural area'' prior to 
October 1, 1990, and determined not to be ``rural'' or a ``rural area'' 
as a result of data received from or after the 1990, 2000, or 2010 
decennial census, and any area deemed to be a ``rural area'' at any 
time during the period beginning January 1, 2000, and ending December 
31, 2010, shall continue to be so classified until the receipt of data 
from the decennial census in the year 2020, if such area has a 
population in excess of 10,000 but not in excess of 35,000, is rural in 
character, and has a serious lack of mortgage credit for lower and 
moderate-income families.
* * * * *

    Dated: October 28, 2014.
Tony Hernandez,
Administrator, Rural Housing Service.
[FR Doc. 2014-29281 Filed 12-12-14; 8:45 am]
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