[Federal Register Volume 80, Number 31 (Tuesday, February 17, 2015)]
[Rules and Regulations]
[Pages 8243-8247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03037]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 982

[Docket No. FR-5827-F-01]


Removal of Obsolete Section 8 Rental Assistance Certificate 
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 removes from regulations obsolete references 
to the Section 8 Tenant-Based Rental Assistance Certificate program 
(Certificate Program). In accordance with Executive Order 13563, 
``Improving Regulation and Regulatory Review,'' HUD reviewed its 
regulations to identify regulations that are ``outmoded, ineffective, 
insufficient or excessively burdensome.'' Following its review, HUD 
determined that the

[[Page 8244]]

Certificate Program regulations are obsolete and unnecessary because 
they govern a program that has been consolidated into another program, 
the Housing Choice Voucher (HCV) program. This rule also makes minor 
editorial corrections to the regulations.

DATES:  Effective date: March 19, 2015.

FOR FURTHER INFORMATION CONTACT: For questions, please contact Jennifer 
Lavorel at 202-402-2515 (the number is not toll-free). Persons with 
hearing or speech impairments may access this number through TTY by 
calling the toll-free Federal Relay Service at 800-877-8339. She may 
also be reached via postal mail at the following address: Department of 
Housing and Urban Development, 451 7th Street SW., Washington, DC 
20410.

SUPPLEMENTARY INFORMATION:

I. Background

    On January 18, 2011, President Obama issued Executive Order 13563, 
``Improving Regulation and Regulatory Review.'' \1\ The Executive Order 
directs heads of Federal departments and agencies to review all 
existing regulations to eliminate those that are outdated and modify 
others to increase flexibility and reduce burden. As a part of HUD's 
overall effort to reduce regulatory burden and streamline the content 
of title 24 of the Code of Federal Regulations (CFR), this rule removes 
obsolete references to the Certificate Program, which has long been 
merged with the HCV program.
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    \1\ The Executive Order was subsequently published in the 
Federal Register on January 21, 2011, at 76 FR 3821.
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    In the HCV program (and also formerly in the Certificate Program), 
HUD pays rental subsidies so eligible families can afford decent, safe, 
and sanitary housing. HUD provides housing assistance funds to public 
housing agencies (PHAs) that administer the program. Eligible families 
select and rent units that meet program housing quality standards. The 
PHA contracts with the owner of the housing to make rent subsidy 
payments on behalf of the family.
    The Certificate Program was first created by the Housing and 
Community Development Act of 1974,\2\ which amended section 8 of the 
United States Housing Act of 1937 (1937 Act).\3\ Building on the 
success of the Certificate Program, Congress authorized a new rental 
voucher demonstration program in 1984, by adding a new section 8(o) to 
the 1937 Act, as part of the Supplemental Appropriations Act, 1984.\4\ 
The rental voucher program was similar to the Certificate Program but 
provided families with more options in housing selection. The rental 
voucher program was made permanent by the Housing and Community 
Development Act of 1987.\5\
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    \2\ Public Law 93-383, approved August 22, 1974.
    \3\ 42 U.S.C. 1437f.
    \4\ Public Law 98-181, approved November 30, 1983.
    \5\ Public Law 100-242, approved February 5, 1988.
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    HUD published a series of regulatory changes in the 1990s to align 
the two programs as closely as possible, given the statutory framework 
of each program. The Quality Housing and Work Responsibility Act of 
1998 (QHWRA) \6\ amended section 8 of the 1937 Act to fully merge the 
Certificate and rental voucher programs and eliminated all differences 
between the two. On May 14, 1999,\7\ HUD published an interim rule 
implementing the merger of the two programs into the new HCV program. 
The interim rule was followed by publication of an October 21, 1999, 
final rule.\8\ In accordance with the regulations implementing the 
merger, the Certificate Program was phased out by October 2001.
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    \6\ Title V of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1999 (Pub. L. 105-276, approved October 21, 1998).
    \7\ 64 FR 26632.
    \8\ 64 FR 56894.
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    The removal of obsolete references to the Certificate Program from 
24 CFR will eliminate any misunderstanding that the Certificate Program 
is an active program. No new assistance is being provided under this 
program. To the extent that any Project-Based Certificate Program 
contracts remain in effect, they are now governed by the regulations in 
24 CFR 983.10, entitled ``Project-based certificate (PBC) program''.
    In addition to eliminating obsolete regulatory provisions in 24 CFR 
part, this rule makes certain minor editorial corrections to the 
regulations in 24 CFR part 982. For example, in certain places, the 
regulations refer to PHAs as PHAs but in other places the regulations 
refer to PHAs as housing authorities or HAs. HUD revised the 
regulations to consistently use the terms PHA or PHAs throughout. 
Similarly, the rule revises the part 982 regulations to refer to the 
tenant-based voucher program as the HCV program.

II. Justification for Final Rulemaking

    In accordance with 24 CFR part 10, it is the practice of HUD to 
offer interested parties the opportunity to comment on proposed 
regulations. Part 10, consistent with 5 U.S.C. 553(b), provides for 
exceptions to the general rule if an agency, for good cause, finds that 
``notice and public procedure thereon are impracticable, unnecessary, 
or contrary to the public interest.'' (See 24 CFR 10.1.)
    The removal of these regulations from 24 CFR does not establish or 
affect substantive policy. This final rule removes obsolete and 
unnecessary regulatory provisions for a program that is no longer being 
funded and makes non-substantive editorial corrections. Therefore, HUD 
finds that public notice and comment are unnecessary and contrary to 
the public interest.

III. Findings and Certifications

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. 
Because HUD has determined that good cause exists to issue this rule 
without prior public comment, this rule is not subject to the 
requirement to publish an initial or final regulatory flexibility 
analysis under the RFA as part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 
U.S.C. 1532) requires that an agency prepare a budgetary impact 
statement before promulgating a rule that includes a Federal mandate 
that may result in the expenditure by state, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. If a budgetary impact statement is 
required, section 205 of UMRA (2 U.S.C. 1534) also requires an agency 
to identify and consider a reasonable number of regulatory alternatives 
before promulgating a rule. However, the UMRA applies only to rules for 
which an agency publishes a general notice of proposed rulemaking. As 
discussed above, HUD has determined, for good cause, that prior notice 
and public comment is not required on this rule and, therefore, the 
UMRA does not apply to this final rule.

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

[[Page 8245]]

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).

List of Subjects in 24 CFR Part 982

    Grant programs--housing and community development, Grant programs-
Indians, Indians, Public housing, Rent subsidies, Reporting and 
recordkeeping requirements.
    Accordingly, for the reasons stated in the preamble, and pursuant 
to the Secretary's authority under 42 U.S.C. 3535(d), 24 CFR part 982 
is amended as follows:

PART 982--SECTION 8 TENANT-BASED ASSISTANCE: HOUSING CHOICE VOUCHER 
PROGRAM

0
1. The authority citation for part 982 continues to read as follows:

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


0
2. Revise Sec.  982.1(a) to read as follows:


Sec.  982.1  Programs: purpose and structure.

    (a) General description. (1) In the HUD Housing Choice Voucher 
(HCV) program, HUD pays rental subsidies so eligible families can 
afford decent, safe, and sanitary housing. The HCV program is generally 
administered by State or local governmental entities called public 
housing agencies (PHAs). HUD provides housing assistance funds to the 
PHA. HUD also provides funds for PHA administration of the program.
    (2) Families select and rent units that meet program housing 
quality standards. If the PHA approves a family's unit and tenancy, the 
PHA contracts with the owner to make rent subsidy payments on behalf of 
the family. A PHA may not approve a tenancy unless the rent is 
reasonable.
    (3) Subsidy in the HCV program is based on a local ``payment 
standard'' that reflects the cost to lease a unit in the local housing 
market. If the rent is less than the payment standard, the family 
generally pays 30 percent of adjusted monthly income for rent. If the 
rent is more than the payment standard, the family pays a larger share 
of the rent.
* * * * *

0
3. Revise Sec.  982.2 to read as follows:


Sec.  982.2  Applicability.

    Part 982 contains the program requirements for the tenant-based 
housing assistance program under Section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f). The tenant-based program is the HCV 
program.


0
4. Amend Sec.  982.4 as follows:
0
a. Revise paragraph (a)(2); and
0
b. In paragraph (b), remove the definition of ``Tenant rent'' and 
revise the definitions of ``Absorption'', ``Administrative plan'', 
``Admission'', ``Applicant'', ``Budget authority'', ``Continuously 
assisted'', ``Housing quality standards (HQS)'', ``Merger date'', 
``Program'', ``Receiving PHA'', and ``Utility reimbursement''.
    The revisions read as follows:


Sec.  982.4  Definitions.

    (a) * * *
    (2) Definitions concerning family income and rent. The terms 
``adjusted income,'' ``annual income,'' ``extremely low income 
family,'' ``tenant rent,'' ``total tenant payment,'' ``utility 
allowance,'' ``utility reimbursement,'' and ``welfare assistance'' are 
defined in part 5, subpart F of this title. The definitions of ``tenant 
rent'' and ``utility reimbursement'' in part 5, subpart F of this title 
do not apply to the HCV program under part 982.
    (b) * * *
    Absorption. In portability (under subpart H of this part): the 
point at which a receiving PHA stops billing the initial PHA for 
assistance on behalf of a portability family. The receiving PHA uses 
funds available under the receiving PHA consolidated ACC.
* * * * *
    Administrative plan. The plan that describes PHA policies for 
administration of the HCV program. See Sec.  982.54.
    Admission. The point when the family becomes a participant in the 
program. The date used for this purpose is the effective date of the 
first HAP contract for a family (first day of initial lease term) in 
the tenant-based program.
    Applicant (applicant family). A family that has applied for 
admission to the HCV program but is not yet a program participant.
    Budget authority. An amount authorized and appropriated by the 
Congress for payment to PHAs under the HCV program. For each funding 
increment in the program, budget authority is the maximum amount that 
may be paid by HUD to the PHA over the ACC term of the funding 
increment.
* * * * *
    Continuously assisted. An applicant is continuously assisted under 
the 1937 Act if the family is already receiving assistance under any 
1937 Act program when the family is admitted to the HCV program.
* * * * *
    Housing quality standards (HQS). The HUD minimum quality standards 
for housing assisted under the HCV program. See Sec.  982.401.
* * * * *
    Merger date. October 1, 1999, which is the effective date of the 
merger of the two tenant-based programs (the housing voucher and 
housing certificate programs) into the Housing Choice Voucher (HCV) 
program.
* * * * *
    Program. The Section 8 HCV program under this part.
* * * * *
    Receiving PHA. In portability: A PHA that receives a family 
selected for participation in the HCV program of another PHA. The 
receiving PHA issues a voucher and provides program assistance to the 
family.
* * * * *
    Utility reimbursement. The portion of the housing assistance 
payment which exceeds the amount of the rent to owner. (See Sec.  
982.514(b)).
* * * * *

0
5. In Sec.  982.51(b), revise the second sentence to read as follows:


Sec.  982.51  PHA authority to administer program.

* * * * *
    (b) * * * The PHA must submit additional evidence when there is a 
change that affects its status as a PHA, its authority to administer 
the program, or its jurisdiction.

Sec.  982.53  [Amended]

0
6. In Sec.  982.53(e), remove the phrase ``incidents of'' and add in 
its place ``an incidence of''.

Sec.  982.54  [Amended]

0
7. In Sec.  982.54, remove paragraph (d)(19) and redesignate paragraphs 
(d)(20) through (23) as paragraphs (d)(19) through (22), respectively.


[[Page 8246]]




Sec.  982.101  [Amended]

0
8. In Sec.  982.101(c), remove the word ``HAs'' and add in its place 
``PHAs'' and remove the parenthetical ``(NOFA)'' and add in its place 
``(NOFAs)''.

Sec.  982.102  [Amended]

0
9. Amend Sec.  982.102 as follows:
0
a. In paragraph (a), remove the phrase ``part 983 of this title'' and 
add in its place ``24 CFR part 983'' and remove the ``,'' at the end of 
the paragraph and add a ``.'' in its place;
0
b. In paragraph (e)(1)(i), remove the words ``PHA certificate and 
voucher programs (including project-based assistance under such 
programs)'' and add, in their place, the words ``HCV program (including 
project-based assistance under such program)'';
0
c. Redesignate the second paragraph (e)(3)(iii) as paragraph 
(e)(3)(iv); and
0
d. In paragraph (f), capitalize the word ``consolidated'' in the 
paragraph heading.


Sec.  982.103  [Amended]


0
10. In Sec.  982.103(a), capitalize the word ``a'' at the beginning of 
the paragraph.

Sec.  982.151  [Amended]

0
11. In Sec.  982.151(a)(2), remove the words ``PHA tenant-based 
assistance program'' and add in their place ``PHA's HCV program''.

Sec.  982.152  [Amended]

0
12. Amend Sec.  982.152 as follows:
0
a. In paragraph (a), remove all references to ``HA'' and add in their 
place ``PHA''; and
0
b. In paragraph (b)(2), remove the phrase ``tenant-based'' and add in 
its place ``HCV''.


Sec.  982.158  [Amended]

0
13. In Sec.  982.158(c), remove the word ``tPHAt'' and add in its place 
``that''.


Sec.  982.161  [Amended]

0
14. In Sec.  982.161(a), remove the phrase ``tenant-based programs'' 
and add in its place ``HCV program''.

0
15. Amend Sec.  982.201 as follows:
0
a. In the paragraph heading of paragraph (a), add the word ``In'' 
before the word ``general'';
0
b. In paragraph (b)(2)(i), remove the phrase ``tenant-based voucher'' 
and add in its place ``HCV'';
0
c. Remove paragraph (b)(2)(iv) and redesignate paragraphs (b)(2)(v) 
through (vii) as paragraphs (b)(2)(iv) through (vi), respectively;
0
d. In newly redesignated paragraph (b)(2)(v), remove the phrase 
``tenant-based voucher'' and add in its place ``HCV''; and
0
e. Revise newly redesignated paragraph (b)(2)(vi) and paragraph (b)(3).
    The revisions read as follows:


Sec.  982.201  Eligibility and targeting.

* * * * *
    (b) * * *
    (2) * * *
    (vi) If a family initially leases a unit outside the PHA 
jurisdiction under portability procedures at admission to the HCV 
program, such admission shall be counted against the targeting 
obligation of the initial PHA (unless the receiving PHA absorbs the 
portable family into the receiving PHA's HCV program from the point of 
admission).
    (3) The annual income (gross income) of an applicant family is used 
both for determination of income-eligibility under paragraph (b)(1) of 
this section and for targeting under paragraph (b)(2)(i) of this 
section. In determining annual income of an applicant family that 
includes a person with disabilities, the determination must include the 
disallowance of increase in annual income as provided in 24 CFR 5.617, 
if applicable.
* * * * *


Sec.  982.205  [Amended]

0
16. In Sec.  982.205(a)(1), capitalize the word ``a'' in the first 
sentence following the paragraph heading.

0
17. Add Sec.  982.305(b)(1)(iii) to read as follows:


Sec.  982.305  PHA approval of assisted tenancy.

* * * * *
    (b) * * *
    (1)
    (iii) The PHA has approved leasing of the unit in accordance with 
program requirements.
* * * * *


Sec.  982.311  [Amended]

0
18. In Sec.  982.311(b), remove the word ``HA'' and add in its place 
``PHA''.


Sec.  982.315  [Amended]

0
19. In Sec.  982.315(b)(3), remove the words ``or actual'' and add in 
their place ``of actual''.
0
20. Amend Sec.  982.355 as follows:
0
a. In paragraph (a), remove the phrase ``a tenant-based'' and add in 
its place ``an HCV'';
0
b. Revise paragraph (c)(1);
0
c. In paragraph (d)(1), remove the phrase ``PHA voucher'' and add in 
its place ``PHA's HCV'' and remove the phrase ``PHA tenant-based'' and 
add in its place ``PHA's HCV'';
0
d. In paragraph (e)(6), capitalize the word ``a'' at the beginning of 
the paragraph and remove the phrase ``PHA tenant-based'' and add in its 
place ``PHA's HCV''; and
0
e. In paragraph (e)(7), remove the phrase ``tenant-based'' and add in 
its place ``HCV''.
    The revision reads as follows:


Sec.  982.355  Portability: Administration by receiving PHA.

* * * * *
    (c) * * *
    (1) The receiving PHA does not redetermine eligibility for a 
portable family that was already receiving assistance in the initial 
PHA's HCV program. However, for a portable family that was not already 
receiving assistance in the PHA's HCV program, the initial PHA must 
determine whether the family is eligible for admission to the receiving 
PHA's HCV program.
* * * * *


Sec.  982.401  [Amended]

0
21. Amend Sec.  982.401 as follows:
0
a. In paragraph (a)(1), remove the phrase ``in the programs'' and add 
in its place ``under the HCV program'';
0
b. In paragraph (c)(1)(ii), add a period after ``e.g''; and
0
c. In paragraph (n)(1), remove '' -'' after ``hearing-impaired 
person,''.


Sec.  982.403  [Amended]

0
22. In Sec.  982.403, remove paragraph (b) and redesignate paragraph 
(c) as paragraph (b).

Sec.  982.406  [Amended]

0
23. In Sec.  982.406, remove ``tPHAn'' and add in its place ``than''.


Sec.  982.452  [Amended]

0
24. In Sec.  982.452(b)(5)(ii), remove the line break between ``tenant 
contribution'' and ``(the part of rent''.

0
25. Revise Sec.  982.501 to read as follows:


Sec.  982.501  Overview.

    This subpart describes program requirements concerning the housing 
assistance payment and rent to owner under the HCV program.

Sec.  982.502  [Removed]

0
26. Remove Sec.  982.502.

Sec.  982.503  [Amended]

0
27. Amend Sec.  982.503 as follows:
0
a. Remove ``Voucher tenancy:'' from the section heading; and
0
b. Remove paragraph (c)(7).

Sec.  982.504  [Amended]

0
28. Amend Sec.  982.504 as follows:

[[Page 8247]]

0
a. Remove ``Voucher tenancy:'' from the section heading;
0
b. In paragraph (a) introductory text, remove the phrase ``tenant-based 
assistance under the voucher program'' and add in its place ``HCV 
assistance'';
0
c. In paragraph (a)(1), remove the phrase ``tenant-based voucher'' and 
add in its place ``HCV'' and remove the phrase ``Sec.  401.421 of this 
title'' and add in its place ``24 CFR 401.421''; and
0
d. In paragraph (a)(2), remove ``tenant-based'' and add in its place 
``HCV''.

Sec.  982.505  [Amended]

0
29. In Sec.  982.505, remove ``Voucher tenancy:'' from the section 
heading.

0
30. Revise Sec.  982.516(d)(2) to read as follows:


Sec.  982.516  Family income and composition: Regular and interim 
examinations.

* * * * *
    (d) * * *
    (2) At the effective date of a regular or interim reexamination, 
the PHA must make appropriate adjustments in the housing assistance 
payment in accordance with Sec.  982.505.
* * * * *


Sec.  982.517  [Amended]

0
31. In Sec.  982.517(c)(1), capitalize the word ``a'' at the beginning 
of the paragraph and remove the word ``PHAs'' and add in its place 
``has''.

Sec. Sec.  982.518, 982.519, and 982.520  [Removed]

0
32. Remove Sec. Sec.  982.518 through 982.520.

Sec.  982.521  [Amended]

0
33. Remove Sec.  982.521(c).

Sec.  982.552  [Amended]

0
34. In Sec.  982.522(c)(2)(iii), add ``may'' before ``consider 
whether''.

Sec.  982.553  [Amended]

0
35. In Sec.  982.553(a)(2)(ii)(B), remove the phrase ``not to have'' 
and add in its place ``not have''.

Sec.  982.555  [Amended]

0
36. Amend Sec.  982.555 as follows:
0
a. In paragraph (a), add a space between the paragraph heading and 
paragraph (a)(1), capitalize the word ``a'' at the beginning of 
paragraph (a)(1), remove paragraph (a)(1)(iv), and redesignate 
paragraphs (a)(1)(v) and (vi) as paragraphs (a)(1)(iv) and (v), 
respectively; and
0
b. In paragraphs (b)(4), (5), (6), and (7), capitalize the word ``a'' 
at the beginning of each paragraph.

Sec.  982.601  [Amended]

0
37. In Sec.  982.601(c)(1), add a period after ``e.g''.

Sec.  982.615  [Amended]

0
38. In Sec.  982.615(b), remove ``HA'' and add in its place ``PHA''.

0
39. Revise Sec.  982.619(b)(4) to read as follows:


Sec.  982.619  Cooperative housing.

* * * * *
    (b) * * *
    (4) Adjustments are applied to the carrying charge as determined in 
accordance with this section.
* * * * *


Sec.  982.623  [Amended]

0
40. Amend Sec.  982.623 as follows:
0
a. Remove paragraph (a);
0
b. Remove the heading of paragraph (b).
0
c. Redesignate paragraphs (b)(1) through (4) as paragraphs (a) through 
(d), respectively;
0
d. In newly redesignated paragraph (c), further redesignate paragraphs 
(i) and (ii) as paragraphs (c)(1) and (2), respectively; and
0
e. In newly redesignated paragraph (d), further redesignate paragraphs 
(i) through (iii) as paragraphs (d)(1) through (3), respectively.

Sec.  982.625  [Amended]

0
41. In Sec.  982.625(g)(2), add a space between ``its'' and ``Section 
8''.

Sec.  982.627  [Amended]

0
42. In Sec.  982.627(c)(2)(ii)(A), remove the line break between 
``voucher'' and ``program''.


Sec.  982.631  [Amended]

0
43. In Sec.  982.631(c)(2)(iii), remove the line break between ``unit'' 
and ``unless''.


Sec.  982.636  [Amended]

0
44. In Sec.  982.636(c), add a period after ``e.g''.

Sec.  982.641  [Amended]

0
45. In Sec.  982.641(c)(3), in the cross-reference ``Sec.  
982.353(b)(1), (2), and (3)'', remove ``(b)(1),(2), and (3)''.

    Dated: February 9, 2015.
Jemine A. Bryon,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 2015-03037 Filed 2-13-15; 8:45 am]
BILLING CODE 4210-67-P