[Federal Register Volume 88, Number 211 (Thursday, November 2, 2023)]
[Rules and Regulations]
[Pages 75230-75234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24236]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 891

[Docket No. FR-6385-F-01]
RIN 2502-AJ71


Section 202 Direct Loan Technical Amendments

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Department of Housing and Urban Development (HUD).

ACTION: Final rule.

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SUMMARY: This final rule implements technical amendments to HUD's 
program regulations governing Section 202 Direct Loans for Housing for 
the Elderly and Persons with Disabilities (``Section 202 Direct 
Loan''), including the Section 202 Projects for the Elderly or 
Handicapped--Section 8 Assistance (``202/8'') and the Section 202 
Assistance for Nonelderly Handicapped Families and Individuals--Section 
162 Assistance (``202/162'') programs. The amendments are necessary to 
conform the Section 202 Direct Loan program regulations with HUD's 
final rule implementing sections 102, 103, and 104 of the Housing 
Opportunity Through Modernization Act of 2016 (HOTMA). This final rule 
also corrects outdated cross references in the Section 202 Direct Loan 
program regulations and updates the list of protected classes 
applicable to affirmative marketing requirements for the Section 202/8 
and Section 202/162 programs.

DATES: Effective Date: January 1, 2024.

FOR FURTHER INFORMATION CONTACT: Jennifer Lavorel, Director, Program 
Administration Office, Office of Asset Management and Portfolio 
Oversight, Office of Multifamily Housing, Department of Housing and 
Urban Development, 451 7th Street SW, Room 6180, Washington, DC 20410-
0500,

[[Page 75231]]

telephone number 202-402-2515 (this is not a toll-free number). HUD 
welcomes and is prepared to receive calls from individuals who are deaf 
or hard of hearing, as well as individuals with speech or communication 
disabilities. To learn more about how to make an accessible telephone 
call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION: 

I. Background

    Enacted on July 29, 2016, HOTMA (Pub. L. 114-201, 130 Stat. 782) 
contains 14 sections that affect the public housing and Section 8 
rental assistance programs. Sections 102, 103, and 104 of HOTMA make 
sweeping changes to the United States Housing Act of 1937, particularly 
to those sections affecting income calculations and reviews. On 
February 14, 2023, HUD a published a final rule entitled ``Housing 
Opportunity Through Modernization Act of 2016: Implementation of 
Sections 102, 103, and 104'' (88 FR 9600) (``HOTMA final rule''), which 
amended HUD regulations to implement these three sections of HOTMA. In 
addition to amending the regulations governing HUD's public housing and 
Section 8 programs, the HOTMA final rule revised the program 
regulations for several other HUD programs, including the Supportive 
Housing for the Elderly (Section 202) and Supportive Housing for 
Persons with Disabilities (Section 811) Capital Advance programs. HUD 
revised the regulations for these programs in the interest of aligning 
the HOTMA final rule's requirements across programs.
    Pursuant to the Cranston-Gonzalez National Affordable Housing Act 
of 1990, Public Law 86-372, Congress repealed the Section 202 Direct 
Loan program and created the Section 202 and Section 811 Capital 
Advance programs. However, there are projects still operating under 
Direct Loan program requirements, including the Section 202/8 and the 
Section 202/162 programs. Certain regulations applicable to the Direct 
Loan program and regulations specific to the 202/8 and 202/162 programs 
were revised by the HOTMA final rule but other regulations were 
inadvertently excluded. Accordingly, this final rule revises certain 
regulations applicable to the Direct Loan program (including those 
governing the 202/8 and 202/162 programs) to conform them with other 
Direct Loan program regulations as amended by the HOTMA final rule.
    This final rule also makes technical corrections to replace 
outdated cross references in these program regulations consistent with 
a final rule that took effect on November 18, 1996 (61 FR 54492), in 
which HUD removed 24 CFR part 813, and updates the list of protected 
classes applicable to affirmative marketing requirements for the 
Section 202/8 and Section 202/162 programs.

II. Changes Made in This Final Rule

    The following is an overview of the changes made to 24 CFR part 891 
in this final rule.

Sec.  891.510 Displacement, Relocation, and Real Property Acquisition

    This final rule revises Sec.  891.510(f)(1)(iii)(A)(2) by replacing 
the outdated cross reference to ``24 CFR 813.107'' with a cross 
reference to ``24 CFR 5.628.''

Sec.  891.520 Definitions Applicable to 202/8 Projects

    This final rule revises the definition of ``Family (eligible 
family)'' in Sec.  891.520 by replacing the outdated cross reference to 
``part 813 of this chapter'' with a cross reference to ``24 CFR 
5.403.''

Sec.  891.575 Leasing to Eligible Families

    This final rule revises Sec.  891.575(a)(2) by replacing the 
outdated cross reference to ``part 813 of this chapter'' with a cross 
reference to ``24 CFR 5.653.''

Sec.  891.655 Definitions

    This final rule revises the definitions of ``annual income,'' 
``family,'' ``tenant rent,'' and ``total tenant payment'' in Sec.  
891.655 to be consistent with the definitions implemented by the HOTMA 
final rule for the Section 202 and Section 811 programs and to remove 
outdated cross references to ``part 813 of this chapter''. 
Specifically, the HOTMA final rule revised the definitions of ``annual 
income'' in Sec.  5.609 and ``total tenant payment'' in Sec.  5.628. It 
also added the definition of ``tenant rent'' to Sec.  891.105. This 
rule incorporates these revised definitions in Sec.  891.655. For 
consistency with prior HUD rulemakings, this final rule also revises 
the definitions of ``family,'' ``utility allowance,'' and ``utility 
reimbursement'' in Sec.  891.655 by replacing outdated cross references 
to ``part 813 of this chapter''.
    This final rule also removes the definition of ``rent'' in Sec.  
891.655, as the reference to Sec.  891.505 is incorrect (``rent'' is no 
longer defined in Sec.  891.505). This revision is consistent with the 
HOTMA final rule, which updated definitions for the Section 202 and 
Section 811 program regulations in part 891.

Sec.  891.720 Leasing to Eligible Families

    This final rule revises Sec.  891.720(a)(3) to replace the outdated 
cross reference to ``part 813 of this chapter'' with a cross reference 
to ``part 5, subpart F of this title''.

Sec.  891.740 Responsibilities of Borrower

    This final rule revises the last sentence of Sec.  891.740(a)(2) by 
removing the word ``creed'', adding the parenthetical phrase 
``including actual or perceived sexual orientation and gender 
identity'' following the term ``sex,'' and adding ``disability'' and 
``familial status,'' to read: ``The purpose of the plan and 
requirements is to achieve a condition in which eligible families of 
similar income levels in the same housing market have a like range of 
housing choices available to them regardless of their race, color, 
religion, sex (including actual or perceived sexual orientation and 
gender identity), disability, familial status, or national origin.'' 
This language is consistent with existing civil rights authorities 
applicable to HUD programs and the HOTMA final rule.

Sec.  891.750 Selection and Admission of Tenants

    The final rule revises 891.750 by replacing an outdated cross 
reference to ``Sec.  813.102 of this chapter'' with a cross reference 
to part 5, subpart F of this title, as modified by 24 CFR 891.505. 
These revisions are consistent with the HOTMA final rule.
    Although the 202 Direct Loan program uses the term `handicapped,' 
the term `disability' is more commonly used and accepted today to refer 
to physical or mental impairments. For this reason, this rule uses the 
term `disabilities' wherever possible. However, corresponding changes 
to HUD's regulations are not feasible via this final rule, given the 
limited nature of the technical amendments being made. HUD anticipates 
future changes that will address this issue throughout its regulations 
in title 24 of the Code of Federal Regulations. Further, this final 
rule revises the last sentence in Sec.  891.750(b)(3) by removing the 
word ``creed'' and adds the parenthetical phrase, ``including actual or 
perceived sexual orientation and gender identity,'' following the term 
``sex,'' substitutes ``disability'' for ``handicap'' and adds 
``familial status.'' This language is consistent with existing civil 
rights authorities applicable to HUD programs and the HOTMA final rule.

[[Page 75232]]

    Finally, this final rule revises Sec.  891.750(c) by replacing the 
existing paragraph (c) with revised text on regular reexaminations that 
aligns with the Section 202 and Section 811 program regulations as 
amended by the HOTMA final rule.\1\
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    \1\ See the HOTMA final rule's revisions to Sec.  891.610(g)(1), 
(2), and (3)(i), 88 FR 9669.
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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. However, part 10 provides for exceptions to the 
general rule where HUD finds that public comment would be 
``impracticable, unnecessary or contrary to the public interest'' (see 
24 CFR 10.1).
    HUD finds that good cause exists to publish this final rule for 
effect without first soliciting public comment. Section 102 of HOTMA 
amends the 1937 Act to revise the frequency of family income reviews 
and calculations of income in HUD's public housing, Section 8 Moderate 
Rehabilitation, Section 8 Moderate Rehabilitation Single Room Occupancy 
(SRO), Section 8 Project-Based Rental Assistance (PBRA), 202/8, 202/162 
Project Assistance Contract (202/162 PAC), Section 202/811 Capital 
Advance with Project Rental Assistance Contract (202/811 PRAC), Section 
811 Project Rental Assistance Demonstration (811 PRA), Senior 
Preservation Rental Assistance Contracts (SPRAC), and non-insured 236 
projects with Interest Reduction Payments programs. Section 104 of 
HOTMA amends the 1937 Act to set limits on the assets that families 
residing in public housing and families receiving assistance under 
Section 8 may own. These HOTMA changes impact the Section 202 Direct 
Loan program, including the Section 202/8 and 202/162 program. As 
explained in the Background section of this preamble, Congress repealed 
the Direct Loan program, but there are projects still operating under 
Direct Loan program requirements, including the Section 202/8 and the 
Section 202/162 programs. Certain regulations applicable to the Direct 
Loan program and regulations specific to the 202/8 and 202/162 programs 
were included in the HOTMA final rule but other regulations were 
inadvertently excluded. Because of the similarity in functional roles 
and responsibilities to the HCV program and Section 202 programs, HUD 
believes that the public comments submitted in response to HUD's HOTMA 
proposed rule published on September 17, 2019 (84 FR 48820), on these 
topics, and HUD's responses to public comments in HUD's HOTMA final 
rule, which applied part 5 regulations to Section 202 programs, provide 
HUD with a solid basis to make conforming changes to its Section Direct 
Loan program regulations. In this regard, the interests of the parties 
most affected by HUD's conforming changes--owners and program 
participants--are substantially identical to the parties impacted by 
the changes made by HUD's HOTMA rulemakings. Finally, the purpose of 
this final rule is to conform the Section 202 Direct Loan program 
regulations with Section 202 and 811 program regulations as amended by 
HUD's HOTMA final rule. Most of the HOTMA income changes impacting the 
Section 202 Direct Loan program were implemented by revisions to 24 CFR 
part 5 through the HOTMA final rule. The ability to use these part 5 
changes in accordance with other interrelated HOTMA Section 102 and 104 
requirements would be hindered without conforming changes to part 891.
    The changes being made in this final rule are necessary also to 
update the list of protected classes applicable to affirmative 
marketing requirements for the Section 202/8 and Section 202/162 
programs, aligning these regulations with current protected classes 
under the Fair Housing Act (42 U.S.C 3601 et seq.) as well as providing 
consistency across part 891. The affirmative marketing requirements in 
Sec. Sec.  891.400 and 891.600 reflect current law by requiring that 
all similarly situated eligible households have a like range of housing 
choices available to them regardless of ``race, color, creed, religion, 
familial status, disability, sex, or national origin.'' However, the 
affirmative marketing provision within Sec.  891.740 lists only ``race, 
color, creed, religion, sex, or national origin.'' This language is not 
in alignment with current law. As such, this final rule updates the 
language to include all protected classes applicable to affirmative 
marketing requirements for the Section 202/162 program, consistent with 
requirements across part 891. Further, in the time since these 
regulations have last been updated, there has been clarification 
regarding the inclusivity of `sex' as a federally protected class.\2\ 
Therefore, this final rule also makes changes that clarify what is 
meant by `sex' regarding protected classes for affirmative marketing 
purposes.
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    \2\ ``. . . it is impossible to discriminate against a person 
for being homosexual or transgender without discriminating against 
that individual based on sex.'' Bostock v. Clayton County, Georgia, 
590 U.S.__ (2020), 140 S.Ct. 1731, 1742 (2020).
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    As a result, this final rule makes conforming changes to HUD's 
Section 202 Direct Loan program regulations. Soliciting public comment 
on this rule is unnecessary because public comment was sought as part 
of the rulemaking leading to publication of the HOTMA final rule. This 
final rule aligns Section 202 Direct Loan program regulations with the 
HOTMA final rule; and it revises and replaces outdated cross 
references, consistent with HUD's prior rulemakings.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866, 13563, and 14094

    Under Executive Order 12866 (Regulatory Planning and Review), a 
determination must be made whether a regulatory action is significant 
and, therefore, subject to review by the Office of Management and 
Budget (OMB) in accordance with the requirements of the order. 
Executive Order 13563 (Improving Regulations and Regulatory Review) 
directs executive agencies to analyze regulations that are ``outmoded, 
ineffective, insufficient, or excessively burdensome, and to modify, 
streamline, expand, or repeal them in accordance with what has been 
learned.'' Executive Order 13563 also directs that, where relevant, 
feasible, and consistent with regulatory objectives, and to the extent 
permitted by law, agencies are to identify and consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public Executive Order 14094 entitled ``Modernizing 
Regulatory Review'' (hereinafter referred to as the ``Modernizing 
E.O.'') amends section 3(f) of Executive Order 12866 (Regulatory 
Planning and Review), among other things. In this final rule, HUD is 
making conforming changes to Section 202 Direct Loan program 
regulations to align them with HUD's HOTMA final rule and to replace 
outdated cross references and terminology consistent with prior HUD 
rulemakings. These changes are technical in nature; HUD is not 
introducing any new regulatory changes or rationales that differ in 
substance from those in prior rulemakings. This rule was not subject to 
OMB review. This rule is not a ``significant regulatory action'' as 
defined in Section 3(f) of Executive Order 12866 and is not an 
economically significant regulatory action.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), 
generally requires an agency to conduct a regulatory

[[Page 75233]]

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. As in HUD's HOTMA final rule, this final rule revises HUD's 
Section 202 Direct Loan program regulations in a manner that will 
reduce burden or provide flexibility for Borrowers and assisted 
families, including by providing more specific events that trigger an 
interim reexamination of family income, whereas current regulations 
provide that families may request reexaminations at any time. 
Additionally, HUD is making conforming changes to Section 202 Direct 
Loan program regulations to align them with HUD's HOTMA final rule and 
to replace outdated cross references and terminology consistent with 
prior HUD rulemakings. These amendments impose no significant economic 
impact on a substantial number of small entities. Therefore, the 
undersigned certifies that this rule will not have a significant impact 
on a substantial number of small entities.

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 does not have 
federalism implications and does not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive order.

Environmental Impact

    The final rule relates to establishment and review of income limits 
and exclusions with regard to eligibility for or calculation of HUD 
housing assistance or rental assistance and related external 
administrative or fiscal requirements and procedures that do not 
constitute a development decision that affects the physical condition 
of specific project areas or building sites. The final rule also 
updates provisions that set out fair housing or nondiscrimination 
standards. Accordingly, under 24 CFR 50.19(c)(3) and (c)(6), 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 rule does not impose 
any Federal mandates on any state, local, or Tribal Governments or the 
private sector within the meaning of the UMRA.

List of Subjects in 24 CFR Part 891

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Loan programs--housing and community 
development, Low and moderate income housing, Public assistance 
programs, Rent subsidies, Reporting and recordkeeping requirements.

    Accordingly, for the reasons stated in the preamble, HUD amends 24 
CFR part 891 as follows:

PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH 
DISABILITIES

0
1. The authority for 24 CFR part 891 continues to read as follows:

    Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.


Sec.  891.510  [Amended]

0
2. Amend Sec.  891.510(f)(1)(iii)(A)(2) by removing ``24 CFR 813.107'' 
and adding in its place ``24 CFR 5.628''.


Sec.  891.520  [Amended]

0
3. Amend the definition of ``Family (eligible family)'' in Sec.  
891.520 by removing ``part 813 of this chapter'' and adding in its 
place ``24 CFR 5.403''.


Sec.  891.575  [Amended]

0
4. Amend Sec.  891.575(a)(2) by removing ``part 813 of this chapter'' 
and adding in its place ``24 CFR 5.653''.


Sec.  891.655  Definitions applicable to 202/162 projects.

0
5. Amend Sec.  891.655 by:
0
a. Removing the definition of ``rent''; and
0
b. Revising the definitions of ``annual income,'' ``family (eligible 
family),'' ``tenant rent,'' ``total tenant payment,'' ``utility 
allowance,'' and ``utility reimbursement'' to read as follows:
    Annual income is defined in part 5, subpart F of this title. In the 
case of an individual residing in an intermediate care facility for 
individuals with a developmental disability that is assisted under 
Title XIX of the Social Security Act and subpart E of this part, the 
annual income of the individual shall exclude protected personal income 
as provided under that Act. For purposes of determining the total 
tenant payment, the income of such individuals shall be imputed to be 
the amount that the family would receive if assisted under Title XVI of 
the Social Security Act.
* * * * *
    Family (eligible family) means a family that includes a person with 
a disability (that meets the definition of a handicapped family in 
Sec.  891.505) that meets the project occupancy requirements approved 
by HUD and, if the family occupies an assisted unit, meets the low-
income requirements described in 24 CFR 5.603, as modified by the 
definition of ``annual income'' in this section.
* * * * *
    Tenant rent equals total tenant payment less utility allowance, if 
any.
    Total tenant payment means the monthly amount defined in, and 
determined in accordance with part 5, subpart F of this title.
    Utility allowance is defined in part 5, subpart F of this title and 
is determined or approved by HUD.
    Utility reimbursement is defined in part 5, subpart F of this 
title.
* * * * *

0
6. Amend Sec.  891.720 by revising paragraph (a)(3) to read as follows:


Sec.  891.720  Leasing to eligible families.

    (a) * * *
    (3) Has not rejected any such applicant family except for reasons 
acceptable to HUD. If the Borrower is temporarily unable to lease all 
units or residential spaces to eligible families, one or more units or 
residential spaces may, with the prior approval of HUD, be leased to 
otherwise eligible families that do not meet the income requirements of 
part 5, subpart F of this title. Failure on the part of the Borrower to 
comply with these requirements is a violation of the PAC and grounds 
for all available legal remedies, including an action for specific 
performance of the PAC, suspension or debarment from HUD programs, and 
reduction of the number of units (or in the case of group homes, 
reduction of the number of residential spaces) under the PAC as set 
forth in paragraph (b) of this section.
* * * * *

0
7. Amend Sec.  891.740 by revising paragraph (a)(2) to read as follows:


Sec.  891.740  Responsibilities of Borrower.

    (a) * * *
    (2) Marketing must be done in accordance with the HUD-approved 
affirmative fair housing marketing plan

[[Page 75234]]

and all fair housing and equal opportunity requirements. The purpose of 
the plan and requirements is to achieve a condition in which eligible 
families of similar income levels in the same housing market have a 
like range of housing choices available to them regardless of their 
race, color, religion, sex (including actual or perceived sexual 
orientation and gender identity), disability, familial status, or 
national origin.
* * * * *

0
8. In Sec.  891.750, revise the introductory text of paragraph (b) and 
paragraphs (b)(3), (c)(1), (2), and (3)(i) to read as follows:


Sec.  891.750  Selection and admission of tenants.

* * * * *
    (b) Determination of eligibility and selection of tenants. The 
Borrower is responsible for determining whether applicants are eligible 
for admission and for the selection of families. To be eligible for 
admission, an applicant family must be a family that includes a person 
with a disability (that meets the definition of ``handicapped family'' 
in 24 CFR 891.505); meet any project occupancy requirements approved by 
HUD; meet the disclosure and verification requirements for Social 
Security Numbers, as provided by 24 CFR part 5, subpart B; and be a 
low-income family, as defined in part 5, subpart F of this title, as 
modified by 24 CFR 891.505. Under certain circumstances, HUD may permit 
the leasing of units (or residential space in a group home) to 
ineligible families under Sec.  891.720.
* * * * *
    (3) If the Borrower determines that an applicant is ineligible for 
admission or the Borrower is not selecting the applicant for other 
reasons, the Borrower will promptly notify the applicant in writing of 
the determination, the reasons for the determination, and that the 
applicant has a right to request a meeting to review the rejection, in 
accordance with HUD requirements. The review, if requested, may not be 
conducted by the member of the Borrower's staff who made the initial 
decision to reject the applicant. The applicant may also exercise other 
rights, including filing a complaint with HUD's Office of Fair Housing 
and Equal Opportunity, if the applicant believes the applicant is being 
discriminated against on the basis of race, color, religion, sex 
(including actual or perceived sexual orientation and gender identity), 
disability, familial status, or national origin.
* * * * *
    (c) * * *
    (1) Regular reexaminations. If the family occupies an assisted unit 
(or residential space in a group home), the Borrower must reexamine the 
income and composition of the family at least every 12 months. Upon 
verification of the information, the Borrower shall make appropriate 
adjustments in the total tenant payment in accordance with Sec.  5.657 
of this title and must adjust the rent. The Borrower must also request 
an appropriate adjustment to the project assistance payment. Further, 
the Borrower must determine whether the family's unit size is still 
appropriate and must carry out any unit transfer in accordance with HUD 
standards. At the time of reexamination, the Borrower must require the 
family to meet the disclosure and verification requirements for Social 
Security Numbers, as provided by 24 CFR part 5, subpart B. For 
requirements regarding the signing and submitting of consent forms by 
families for obtaining wage and claim information from State Wage 
Information Collection Agencies, see 24 CFR part 5, subpart B.
    (2) Interim reexamination. If the family occupies an assisted unit 
(or residential space in a group home) the family must comply with the 
provisions in Sec.  5.657 of this title regarding interim reporting of 
changes in income. If the Borrower receives information concerning a 
change in the family's income or other circumstances between regularly 
scheduled reexaminations, the Borrower must consult with the family and 
make any adjustments determined to be appropriate. See 24 CFR part 5, 
subpart B, for the requirements for the disclosure and verification of 
Social Security Number at interim reexaminations involving new 
household members. For requirements regarding the signing and 
submitting of consent forms by families for obtaining wage and claim 
information from State Wage Information Collection agencies, see 24 CFR 
part 5, subpart B. Any change in the family's income or other 
circumstances that result in an adjustment in the total tenant payment, 
tenant rent, or project assistance payment must be verified.
    (3) * * *
    (i) A family occupying an assisted unit (or residential space in a 
group home) shall remain eligible for project assistance payments until 
the total tenant payment equals or exceeds the gross rent (or a pro 
rata share of the gross rent in a group home). The termination of 
subsidy eligibility will not affect the family's other rights under its 
lease. Project assistance payments may be resumed if, as a result of 
changes in income, rent, or other relevant circumstances during the 
term of the PAC, the family meets the income eligibility requirements 
of Sec.  5.657 of this title (as modified in Sec.  891.105) and project 
assistance is available for the unit or residential space under the 
terms of the PAC. The family will not be required to establish its 
eligibility for admission to the project under the remaining 
requirements of paragraph (b) of this section.
* * * * *

Julia R. Gordon,
Assistant Secretary for Housing--FHA Commissioner.
[FR Doc. 2023-24236 Filed 11-1-23; 8:45 am]
BILLING CODE 4210-67-P