[Federal Register Volume 89, Number 5 (Monday, January 8, 2024)]
[Proposed Rules]
[Pages 892-894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00073]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 89, No. 5 / Monday, January 8, 2024 / 
Proposed Rules  

[[Page 892]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3560

[Docket No. RHS-23-MFH-0014]
RIN 0575-AD35


Revisions to the Smoke Alarm Requirements in the Section 515 
Rural Rental Housing and Section 514/516 Farm Labor Housing Direct Loan 
Programs

AGENCY: Rural Housing Service, U.S. Department of Agriculture (USDA).

ACTION: Proposed rule.

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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development 
(RD) agency of the United States Department of Agriculture (USDA), 
proposes to amend its regulation to implement changes related to the 
smoke alarm requirements for properties that receive funding from the 
MFH Section 515 Rural Rental Housing and the Section 514/516 Farm Labor 
Housing Direct Loan and Grant programs. These proposed changes are 
intended to align the Agency's smoke alarm requirements with the new 
qualifying smoke alarm standards set forth in the Consolidated 
Appropriations Act of 2023 (Act). The Act requires each unit of 
federally assisted housing to contain hardwired or 10-year non-
rechargeable, sealed, tamper-resistant, battery-powered smoke alarm 
devices.

DATES: Comments on the proposed rule must be received on or before 
March 8, 2024.

ADDRESSES: Comments may be submitted electronically by the Federal 
eRulemaking Portal: Go to https://www.regulations.gov and, in the 
``Search Field'' box, labeled ``Search for dockets and documents on 
agency actions,'' enter the following docket number: RHS-23-MFH-0014 or 
the RIN 0575-AD35. To submit or view public comments, click the 
``Search'' button, select the ``Documents'' tab, then select the 
following document title: ``Revisions to the Smoke Alarm Requirements 
in the Section 515 Rural Rental Housing and Section 514/516 Farm Labor 
Housing Direct Loan Programs'' from the ``Search Results,'' and select 
the ``Comment'' button. Before inputting your comments, you may also 
review the ``Commenter's Checklist'' (optional). Insert your comments 
under the ``Comment'' title, click ``Browse'' to attach files (if 
available). Input your email address and select ``Submit Comment.'' 
Information on using Regulations.gov, including instructions for 
accessing documents, submitting comments, and viewing the docket after 
the close of the comment period, is available through the site's 
``FAQ'' link.
    Other Information: Additional information about Rural Development 
(RD) and its programs is available on the internet at https://www.rd.usda.gov. All comments will be available online for public 
inspection at the Federal eRulemaking Portal (https://www.regulations.gov/).

FOR FURTHER INFORMATION CONTACT: Barbara Chism, Multi-Family Housing 
Asset Management Division, Rural Housing Service, 1400 Independence 
Avenue SW, Washington, DC 20250-0782, Telephone: (202) 690-1436; Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    The RHS, offers a variety of programs to build or improve housing 
and essential community facilities in rural areas. RHS offers loans, 
grants, and loan guarantees for single- and multi-family housing, 
childcare centers, fire and police stations, hospitals, libraries, 
nursing homes, schools, first responder vehicles and equipment, and 
housing for farm laborers. RHS also provides technical assistance loans 
and grants in partnership with non-profit organizations, Indian tribes, 
State and Federal government agencies, and local communities.
    Title V of the Housing Act of 1949 authorized the USDA to make 
housing loans to farmers to enable them to provide habitable dwellings 
for themselves or their tenants, lessees, sharecroppers, and laborers. 
The USDA then expanded opportunities in rural areas, making housing 
loans and grants to rural residents through the Single-Family Housing 
(SFH) and Multi-Family Housing (MFH) Programs.
    The RHS administers the MFH Section 515 Rural Rental Housing direct 
loan program under 7 CFR part 3560, subpart B. The Section 515 program 
employs a public-private partnership by providing subsidized loans at 
an interest rate of one percent to developers to construct or renovate 
affordable rental complexes in rural areas. This one percent loan keeps 
the debt service on the property sufficiently low to support below-
market rents affordable to low-income tenants. Many of these projects 
also utilize other Federal, State, and local funding sources and rental 
subsidies such as HUD's Section 8 and low-income housing tax credit 
proceeds.
    The RHS also operates the MFH Farm Labor Housing direct loan and 
grant programs under sections 514 and 516 set forth in 7 CFR part 3560, 
subparts L and M. The MFH Farm Labor Housing programs provide low 
interest loans and grants to provide housing for farmworkers. These 
eligible farmworkers may either live and work at the borrower's farm, 
including seasonal and migrant workers (``on-farm'') or they may live 
away from the farm (``off-farm'').
    Under the current regulation, borrowers are required to install and 
maintain smoke alarms in all dwelling units, common use areas, and 
other spaces in all residential buildings included as security for an 
Agency loan. Borrowers must also ensure that smoke alarms are properly 
located to protect tenant safety and the value of the Agency's asset. 
Failure to maintain adequate smoke alarms may lead to injury of 
persons, damage to property, or a non-monetary loan default.

II. Purpose of This Regulatory Action

    On December 29, 2022, the President signed into law the 
Consolidated Appropriations Act of 2023 (Pub. L. 117-328) (Act), which 
incorporated The Public and Federally Assisted Housing Fire Safety Act 
of 2022. This Act requires each unit and common use areas of federally 
assisted housing to contain hardwired or 10-year non-rechargeable, 
sealed, tamper-resistant battery-powered smoke alarm devices, as well 
as other items. The Act modifies the Housing Act of 1949 to implement 
these new smoke detector requirements for Section 515 Rural Rental 
Housing programs and Section 514/516 Farm Labor Housing Direct Loan 
Programs.

[[Page 893]]

Public Law 117-328, div. AA, title VI, sec. 601. The RHS's current 
smoke alarm requirements in 7 CFR part 3560 for the MFH Direct Loan and 
Grant Programs have been in place since February 24, 2005, and are 
outdated. To achieve compliance with the new requirements set forth 
under the Act, the Rural Housing Service (RHS) proposes to amend its 
MFH Direct Loan and Grant program regulations, 7 CFR 3560.60 of subpart 
B and 7 CFR 3560.103(a)(3)(xx) of subpart C.
    Housing repair and replacement costs in the affordable housing 
industry have been increasing at a steady rate due to economic changes 
in the open market for labor and materials. Our stakeholders will 
benefit from the proposed change through improved safety and prevention 
of potential damage resulting from smoke and fire, as well as lessen 
the potential for harm to visitors and residents.
    This action is intended to: (1) align the smoke alarm requirements 
with more stringent requirements for federally assisted housing 
industry standards; (2) increase the safety of tenants and visitors at 
our properties; (3) reduce the risk of losing available affordable 
housing units in our rural communities due to uninhabitability caused 
by smoke and fire damage as a result of outdated smoke alarm devices; 
and (4) provide the Agency with additional protection from the loss of 
its security value.

III. Summary of Changes

    The proposed changes are as follows:
    1. Add a new paragraph (e) to Sec.  3560.60 that cross-references 
Sec.  3560.103(a)(3)(xx), which contains the new qualifying smoke alarm 
requirements.
    2. Revise Sec.  3560.103(a)(3)(xx) the language for smoke alarms to 
include the new requirements for qualifying smoke alarms.

IV. Regulatory Information

Statutory Authority

    The changes in this proposed rule are authorized under division AA, 
title VI, section 601 of the Consolidated Appropriations Act, 2023. The 
Rural Rental Housing program is authorized under sections 514(k), 
515(m,), 516(c) of title V of the Housing Act of 1949, as amended; 42 
U.S.C. 1480 et seq.; and implemented under 7 CFR part 3560.

Executive Order 12372, Intergovernmental Review of Federal Programs

    These loans are subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with state and local 
officials. RHS conducts intergovernmental consultations for each loan 
in accordance with 2 CFR part 415, subpart C.

Executive Order 12866, Regulatory Planning and Review

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

Executive Order 12988, Civil Justice Reform

    This proposed rule has been reviewed under Executive Order 12988. 
In accordance with this rulemaking: (1) Unless otherwise specifically 
provided, all state and local laws that conflict with this rulemaking 
will be preempted; (2) no retroactive effect will be given to this 
rulemaking except as specifically prescribed in the rule; and (3) 
administrative proceedings of the National Appeals Division of the 
Department of Agriculture (7 CFR part 11) must be exhausted before 
suing in court that challenges action taken under this rulemaking.

Executive Order 13132, Federalism

    The policies contained in this proposed rule do not have any 
substantial direct effect on States, on the relationship between the 
National Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. This proposed 
rule does not impose substantial direct compliance costs on state and 
local governments; therefore, consultation with States is not required.

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 the proposed rule does not have a 
substantial direct effect on one or more Indian tribe(s) or on either 
the relationship or the distribution of powers and responsibilities 
between the Federal Government and Indian tribes. Thus, this proposed 
rule is not subject to the requirements of Executive Order 13175. If 
tribal leaders are interested in consulting with RHS on this 
rulemaking, they are encouraged to contact USDA's Office of Tribal 
Relations or RD's Tribal Coordinator at: [email protected] to request such 
a consultation.

Assistance Listing

    The program affected by this regulation is listed in the Assistance 
Listing Catalog (formerly Catalog of Federal Domestic Assistance) under 
number 10.415--Rural Rental Housing Loans, 10.427--Rural Rental 
Assistance Payments, 10.405--Farm Labor Housing Loans and Grants.

Civil Rights Impact Analysis

    Rural Development has reviewed this proposed rule in accordance 
with USDA Regulation 4300-004, Civil Rights Impact Analysis, to 
identify any major civil rights impacts the proposed rule might have on 
program participants on the basis of age, race, color, national origin, 
sex, or disability. After review and analysis of the proposed rule and 
available data, it has been determined that implementation of the 
rulemaking will not adversely or disproportionately impact very low, 
low- and moderate-income populations, minority populations, women, 
Indian tribes, or persons with disability by virtue of their race, 
color, national origin, sex, age, disability, or marital or familial 
status. No major civil rights impact is likely to result from this 
proposed rule.

E-Government Act Compliance

    RHS is committed to complying with the E-Government Act by 
promoting the use of the internet and other information technologies to 
provide increased opportunities for citizen access to government 
information, services, and other purposes.

National Environmental Policy Act

    This document has been reviewed in accordance with 7 CFR part 1970, 
subpart A, ``Environmental Policies.'' RHS determined that this action 
does not constitute a major Federal action significantly affecting the 
quality of the environment. In accordance with the National 
Environmental Policy Act of 1969, Public Law 91-190, an Environmental 
Impact Statement (EIS) is not required.

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been approved by OMB and have been assigned OMB control 
number 0575-0189. This proposed rule contains no new reporting and 
recordkeeping requirements that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35).

[[Page 894]]

Regulatory Flexibility Act

    This proposed 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 on this document 
that this proposed rule will not have a significant economic impact on 
a substantial number of small entities since this rulemaking action 
does not involve a new or expanded program nor does it require any more 
action on the part of a small business than required of a large entity.

Unfunded Mandates Reform Act (UMRA)

    Title II of the UMRA, Public Law 104-4, establishes requirements 
for Federal agencies to assess the effects of their regulatory actions 
on state, local, and tribal governments and on the private sector. 
Under section 202 of the UMRA, Federal agencies generally must prepare 
a written statement, including 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 a Federal agency 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 proposed rule contains no Federal mandates (under the 
regulatory provisions of title II of the UMRA) for state, local, and 
tribal governments or for the private sector. Therefore, this proposed 
rule is not subject to the requirements of sections 202 and 205 of the 
UMRA.

Non-Discrimination Statement Policy

    Nondiscrimination Statement. In accordance with Federal civil 
rights laws and U.S. Department of Agriculture (USDA) civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, staff office; or the Federal Relay 
Service at (800) 877-8339.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain 
the complainant's name, address, telephone number, and a written 
description of the alleged discriminatory action in sufficient detail 
to inform the Assistant Secretary for Civil Rights (ASCR) about the 
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects in 7 CFR Part 3560

    Accounting, Administrative practice and procedure, Aged, Conflicts 
of interest, Government property management, Grant programs--housing 
and community development, Insurance, Loan programs--agriculture, Loan 
programs--housing and community development, Low and moderate-income 
housing, Migrant labor, Mortgages, Nonprofit organizations, Public 
housing, Rent-subsidies, Reporting and recordkeeping requirements, 
Rural areas.

    For the reasons set forth in the preamble, Rural Housing Service 
proposes to amend 7 CFR part 3560 as follows:

PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS

0
1. The authority citation for part 3560 continues to read as follows:

    Authority:  42 U.S.C. 1480.

Subpart B--Direct Loan and Grant Origination

0
2. Amend Sec.  3560.60 by adding paragraph (e) to read as follows:


Sec.  3560.60  Design requirements.

* * * * *
    (e) Applicable codes and standards. All housing and related 
facilities must meet the qualifying smoke alarm requirements in Sec.  
3560.103(a)(3)(xx).

Subpart C--Borrower Management and Operations Responsibilities

0
3. Amend Sec.  3560.103 by revising paragraph (a)(3)(xx) to read as 
follows:


Sec.  3560.103  Maintaining housing projects.

    (a) * * *
    (3) * * *
    (xx) Smoke alarms. The housing project must have qualifying smoke 
alarms which are installed in accordance with applicable codes and 
standards as set forth in sections 514(k), 515(m), and 516(c) of the 
Housing Act of 1949 (42 U.S.C. 1471 et seq.), in each level and in or 
near each sleeping area in such dwelling unit, including in basements 
but excepting crawl spaces and unfinished attics, and in each common 
area in a project containing such a dwelling unit.
    (A) Dwelling units built before December 29, 2022, and not 
substantially rehabilitated after December 29, 2022, smoke alarms must:
    (1) Be hardwired; or
    (2) Use 10-year non rechargeable, nonreplaceable primary batteries, 
be sealed, tamper resistant, and contain silencing means; and
    (3) Provide notification for persons with hearing loss as required 
by applicable standards set forth in sections 514(k), 515(m), and 
516(c) of the Housing Act of 1949 (42 U.S.C. 1471 et seq.)
    (B) Dwelling units built or substantially rehabilitated after 
December 29, 2022; smoke alarms must be hardwired.
* * * * *

Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2024-00073 Filed 1-5-24; 8:45 am]
BILLING CODE 3410-XV-P