[Federal Register Volume 81, Number 22 (Wednesday, February 3, 2016)]
[Proposed Rules]
[Pages 5677-5679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01921]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 960
[Docket No. FR-5904-A-01]
Strengthening Oversight of Over-Income Tenancy in Public Housing;
Advance Notice of Proposed Rulemaking
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Advanced notice of proposed rulemaking (ANPR).
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SUMMARY: Through this notice, HUD announces that it is considering
rulemaking to ensure that individuals and families residing in HUD
public housing in fact continue to need housing assistance from HUD
after admission. HUD's consideration of rulemaking is prompted by a
report recently issued by HUD's Office of Inspector General (OIG). The
report found, through comparison of annual household income reported in
HUD's Public and Housing Information Center for approximately 1.1
million families to the applicable 2014 admission income limit, that as
many as 25,226 families were subsequently over-income. Some of those
families significantly exceeded the income limits. HUD seeks comment
from PHAs and other interested parties and members of the public on the
questions presented in this notice, including how HUD can structure
policies to reduce the number of individuals and families in public
housing whose incomes significantly exceed the income limit and have
significantly exceeded the income limit for a sustained period of time
after initial admission.
DATES: Comments Due Date: March 4, 2016.
ADDRESSES: Interested persons are invited to submit comments to the
Office of the General Counsel, Regulations Division, Department of
Housing and Urban Development, 451 7th Street SW., Room 10276,
Washington, DC 20410-0500.
[[Page 5678]]
Communications should refer to the above docket number and title and
should contain the information specified in the ``Request for
Comments'' section. There are two methods for submitting public
comments.
1. Submission of Comments by Mail. Comments may be submitted by
mail to 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 all federal
agencies, however, submission of comments by mail often results in
delayed delivery. To ensure timely receipt of comments, HUD recommends
that comments submitted by mail be submitted at least two weeks in
advance of the public comment deadline.
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 comments
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 instructions provided on that site to submit comments
electronically.
Note: To receive consideration as public comments, comments must be
submitted using one of the two methods specified above. Again, all
submissions must refer to the docket number and title of the notice.
No Facsimile Comments. Facsimile (fax) comments are not acceptable.
Public Inspection of Comments. All 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 advance
appointment to review the public comments must be scheduled by calling
the Regulations Division at (202) 708-3055 (this is not a toll-free
number). Copies of all comments submitted are available for inspection
and downloading at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Todd Thomas, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451 7th
Street SW., Room 4100, Washington DC 20410-4000; telephone number (678)
732-2056 (this is not a toll-free number). Persons with hearing or
speech impairments may contact this number via TTY by calling the toll-
free Federal Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The United States Housing Act of 1937 (42 U.S.C. 1437 et. seq.)
(1937 Act), which is the primary statute that governs public housing
and its administration by HUD and PHAs, provides that public housing
dwelling units shall be rented only to families who are low-income
families at the time of their initial occupancy of such units. In
accordance with the 1937 Act, and HUD regulations and policies, PHAs
must undertake periodic reviews of family income. The 1937 Act does not
require eviction or termination of tenancy of families whose income
exceeds the income limits while residing in public housing. See 42
U.S.C. 1437a. HUD's regulations at 24 CFR part 960, which govern public
housing admissions, reflect this statutory framework.
The parameters for income limits that determine initial eligibility
for public housing are developed by HUD and outlined in 24 CFR part 5,
subpart F. In general, HUD sets the low-income limit at 80 percent and
very low-income limit at 50 percent of the median income for the county
or metropolitan area in which the household resides. Income limits vary
from area to area and may be adjusted based on local market
conditions.\1\ Annual income is the anticipated total income from all
sources received from the family head and spouse, and each additional
member of the family 18 years of age or older. An individual's or
family's rent is referred to as the Total Tenant Payment (TTP) and is
based on a family's anticipated annual income less deductions, if any,
or the applicable flat rent.
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\1\ 2015 Income Limit Documentation http://www.huduser.gov/portal/datasets/il/il15/HUD_sec8_15.pdf.
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On July 21, 2015, HUD's OIG issued an audit report that presented
the results of OIG's review of the number of families residing in HUD
public housing whose income exceed the current income limits used in
determining eligibility for such housing, several of whom significantly
exceeded the income limits. The families identified by HUD OIG met the
income limits at the time of admission to public housing but their
income now exceeds such income limits. Currently, the regulations do
not prohibit a family from continued occupancy when their income rises
above the limit for initial admission. An increase in income is a good
and welcomed event for families, and when a family's income steadily
rises, it may be an indication that the family is on its way to self-
sufficiency. However, an increase in income may be minimal or
temporary, and a minimal or temporary rise in income should not be the
basis for termination of public housing assistance. This ANPR solicits
comment on how to structure policies to reduce the number of
individuals and families whose incomes significantly exceed the income
limit and have significantly exceeded the income limit for a sustained
period of time after initial admission.
HUD takes seriously its obligation to provide clean, safe
affordable housing to the neediest population. The Public Housing
program is an essential resource for some of the nation's most
vulnerable families. HUD strongly supports the efforts of PHAs to
further the goals of providing quality affordable housing to eligible
families in a manner that moves families toward increased and sustained
self-sufficiency. At the same time, scarce public resources must be
provided to those most in need of affordable housing. Any changes that
would require the termination of tenancy for over-income families
should be enacted with caution so as not to impede a family's progress
towards self-sufficiency.
In a final rule published on November 26, 2004, at 69 FR 68786, HUD
gave PHAs the authority to terminate the tenancy of or evict over-
income residents. See 24 CFR 960.261. The final rule did not require
PHAs to take action to evict over-income residents but provides PHAs
with discretion to implement such policies and thereby make units
available to applicants who are income eligible. The final rule noted
that the 1937 Act did not require eviction and the purpose of
rulemaking was to clarify that the absence of such a statutory
requirement did not prohibit PHAs from terminating the tenancy of over-
income families. The preamble to the rule stated that PHAs may decide
that an over-income family is able to find other housing, and that the
family's public housing unit could be made available to a family with
greater housing need. The rule included discussion of the many factors
that could be considered in developing these policies, including local
market conditions, community stability, the source and duration of
increased
[[Page 5679]]
income, and whether the resident was elderly or disabled.
HUD is considering revising HUD's regulations at 24 CFR 960.261
(Restriction on eviction of families based on income) in a manner that
would continue to give PHAs discretion on when to evict or terminate
the tenancies of over-income families but narrow that discretion by
providing circumstances that would require a PHA to terminate tenancy
or evict an over-income family. Specifically, HUD is considering
whether a family whose income significantly exceeds the income limit
and has exceeded such limit for a sustained period of time must be
notified by the PHA that the family will be evicted or tenancy
terminated. HUD is also considering what a reasonable period of time to
find alternative housing would be.
HUD is not considering whether to alter the existing statutorily
based exceptions to eviction or termination of tenancy related to
income limits. Specifically, a family over the income limits who has a
valid contract for participation in a Family Self-Sufficiency (FSS)
program administered under HUD regulations in 24 CFR part 984 would not
be subject to eviction or termination of tenancy. Additionally, a PHA
may not evict a family over the income limits if the family is
currently receiving the earned income disallowance authorized by the
1937 Act (See 42 U.S.C. 1473a(d)) and implemented through HUD
regulations in 24 CFR 960.255 and 24 CFR 960.261(b).
II. Request for Comments
In a letter provided to PHAs on September 3, 2015, HUD strongly
recommended that PHAs adopt local over-income policies while
considering many factors, including, but not limited to how over-income
is defined, income stability, length of time to provide a safety net
for fluctuating incomes, preference for return and hardship
policies.\2\ In anticipation of a proposed rulemaking, HUD specifically
solicits comment on the following issues:
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\2\ This letter can be found at http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph.
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1. How should HUD define income that ``significantly'' exceeds the
income limit for public housing residency? Should such higher amount be
determined by dollar amount, by a percentage, or as a function of the
current income limit, and what should the amount be?
2. Should area cost of living and family finances be taken into
consideration when determining whether an individual or family no
longer needs public housing assistance? Are there limits to the
circumstances in which said data should be requested and applied in a
determination?
3. What period of time in which an individual or family has had
income that significantly exceeds the income limits should be
determined as indicative that the individual or family no longer needs
public housing assistance?
4. How should local housing market conditions or housing authority
wait list data be considered?
5. What period of time should be allowed for an individual or
family to find alternative housing?
6. Are there exceptions to eviction or termination of tenancy that
HUD should consider beyond those listed in HUD's regulation in 24 CFR
960.261?
7. Should HUD allow over-income individuals or families to remain
in public housing, while paying unsubsidized or fair market, rent? How
would such a provision impact PHA operations and finances?
8. Should HUD require a local appeals process for individuals or
families deemed over-income?
9. Where over-income policies have been implemented, what were the
results to public housing residents and PHAs? What were the specific
positive and negative impacts?
10. What financial impact would over-income policies have on PHA
operations, and how can any negative impacts be mitigated?
11. What are the potential costs and benefits to public housing
residents and PHAs that could result from the forcible eviction of
public housing tenants?
12. What evidence currently exists in favor of or against the
adoption of this type of policy?
It is the responsibility of HUD and PHAs to ensure that public
housing units are available to those who need HUD assistance. All
comments directed to steps that HUD and PHAs can take to ensure
availability of public housing units for individuals and families
meeting the income limits are welcome.
Dated: January 25, 2016.
Lourdes Castro Ram[iacute]rez,
Principal Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2016-01921 Filed 2-2-16; 8:45 am]
BILLING CODE 4210-67-P