[Federal Register Volume 86, Number 78 (Monday, April 26, 2021)]
[Proposed Rules]
[Pages 21984-21985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08529]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 93

[Docket No. FR-5246-N-04]
RIN 2506-AC30


Housing Trust Fund: Request for Public Comment on Prior Interim 
Rule

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, Department of Housing and Urban Development (HUD).

ACTION: Request for public comment.

-----------------------------------------------------------------------

SUMMARY: This document seeks comments regarding the Housing Trust Fund 
(HTF) program administered by HUD. On January 30, 2015, an interim 
final rule was published in the Federal Register establishing 
regulations governing the administration of HTF and the formula that 
determines how HTF funds are distributed among eligible grantees. In 
the interim rule, HUD stated its intention to open the interim rule for 
public comment once funding was made available and the grantees gained 
experience in administering the HTF program. Since the publication of 
the interim rule, HTF funds have been allocated to eligible grantees in 
Federal Fiscal Years 2016 through 2021. Grantees have had adequate time 
to administer the HTF under the interim rulemaking and gain experience 
necessary to provide substantive comments on the workability of the HTF 
program requirements and ways program administration can be improved. 
In addition to comments on the interim rule, HUD is asking for the 
public to consider and comment on additional issues that may inform its 
rulemaking. HUD will consider all comments submitted in undertaking 
further rulemaking for the HTF.

DATES: Comment due date: June 25, 2021.

ADDRESSES: Interested persons are invited to submit comments regarding 
this document. Comments should refer to the above docket number and 
title. There are two methods for submitting comment:
    1. Electronic submission of comments: Comments may be submitted 
electronically through the Federal eRulemaking Portal at 
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 
www.regulations.gov website can be viewed by other commenters and 
interested members of the public. Commenters should follow instructions 
provided on that site to submit comments electronically.
    2. Submission of comments by mail: Comments may be submitted by 
mail to the HUD Regulations Division, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 7th 
Street SW, Washington, DC 20410-8000; telephone: (202) 708-2625 (this 
is not a toll-free number), or toll free (800) 481-9895. Hearing- or 
speech-impaired individuals may access these numbers through TTY by 
calling the Federal Relay Service at (800) 877-8339 (this is a toll-
free number).
    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 this document.
    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) 402-
5731 (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

[[Page 21985]]

inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Virginia Sardone, Director, Office of 
Affordable Housing Programs, Room 7164, Department of Housing and Urban 
Development, 451 Seventh Street SW, Washington, DC 20410-7000; 
telephone (202) 708-2684. (This is not a toll-free number.) A 
telecommunications device for hearing- and speech-impaired persons 
(TTY) is available at 800-877-8339 (Federal Information Relay Service).

SUPPLEMENTARY INFORMATION: 

I. Background

    The Housing and Economic Recovery Act of 2008 (HERA) (Pub. L. 110-
289, approved July 30, 2008) established the Housing Trust Fund (HTF) 
to be administered by HUD. The HTF was established for the purpose of 
increasing and preserving the supply of decent, safe, sanitary, and 
affordable housing, with primary attention to rental housing for 
extremely low and very low-income families, including homeless 
families, and to increase homeownership for extremely low-and very low-
income families. HERA directs HUD to establish, through regulation, the 
formula for distribution of amounts made available for the HTF. HUD 
published the proposed formula for the allocation of HTF funds for 
public comment on December 4, 2009 (74 FR 63938). In addition, HERA 
directs HUD to establish regulations to administer the HTF. A proposed 
rule on the administration of the HTF was published for public comment 
on October 29, 2010 (75 FR 66978). The Department received 13 public 
comments on the proposed formula notification and 98 public comments on 
the proposed program rule. After consideration of all comments, HUD 
responded to the comments in an interim rule published on January 30, 
2015 (80 FR 5200) and included some changes which HUD summarized at 80 
FR 5202. HUD also made conforming changes for HTF to several sections 
of the Consolidated Plan rule in 24 CFR part 91. The HTF interim rule 
is currently codified at 24 CFR part 93.
    In the interim rule, the Department stated that after funding the 
HTF and allocating funds to grantees, HUD would solicit public comments 
on the interim rule. HUD believes that this would allow for more 
informed policymaking as HUD would be obtaining comments from grantees 
after grantees had experience in administering the program. Since 
publication of the interim rule, HUD has allocated HTF funds to 
eligible grantees in accordance with the established formula in federal 
fiscal years 2016, 2017, 2018, 2019, 2020, and 2021 and grantees now 
have experience administering the HTF funds. Therefore, HUD is opening 
the interim rule for comment by grantees, stakeholders, and any other 
interested members of the public. This document also poses additional 
issues for the public to consider.

II. This Document

    This document seeks input from the public on current program 
requirements as well as specific issues identified below. HUD will 
consider comments received in each public comment phase prior to final 
rulemaking to evaluate potential modifications to the rule. HUD's goal 
is improving Grantees' ability to effectively administer HTF funds and 
providing flexibility to the greatest extent possible within the HTF 
program's statutory framework to carry out the statutory purpose of the 
HTF, which is increasing and preserving the supply of rental housing 
for extremely low- and very low-income families, including homeless 
families, and increasing homeownership for extremely low-and very low-
income families.

III. Request for Public Comment

    This document offers the opportunity for the public to provide 
comments, information, and recommendations on the HTF interim rule. The 
Department will consider all relevant comments submitted, but 
specifically solicits comment on the following, in addition to the 
interim rule:
    1. Income targeting requirements, including the requirement at 24 
CFR 93.250(a) that 100 percent of HTF funds be used for extremely low-
income households or families with incomes at or below the poverty line 
(whichever is greater) in years when funds made available for HTF is 
less than $1 billion. For reference, 24 CFR 93.2 defines extremely low-
income households as families whose annual incomes do not exceed 30 
percent of the median family income of a geographic area, as determined 
by HUD with adjustments for smaller and larger families;
    2. The rent limitations established at 24 CFR 93.302(b);
    3. The minimum 30-year period of affordability established at 24 
CFR 93.302(d) and 24 CFR 93.304(e);
    4. The property standards, including environmental standards 
established at 24 CFR 93.301;
    5. The restrictions on the use of HTF funds for operating cost 
assistance (including reserves) established in 24 CFR 93.200(a)(1) and 
definition of operating costs at 24 CFR 93.201(e)(1), which defines 
operating costs as ``costs for insurance, utilities, real property 
taxes, and maintenance and scheduled payments to a reserve for 
replacement of major systems (provided that the payments must be based 
on the useful life of each major system and expected replacement cost) 
of an HTF-assisted unit;''
    6. What changes to the HTF program could improve program 
administration and more effectively address the housing needs of the 
population it is intended to serve?

Kevin J. Bush,
Deputy Assistant Secretary for Grant Programs.
[FR Doc. 2021-08529 Filed 4-23-21; 8:45 am]
BILLING CODE 4210-67-P