[Federal Register Volume 89, Number 54 (Tuesday, March 19, 2024)]
[Rules and Regulations]
[Pages 19497-19499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05756]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 89 , No. 54 / Tuesday, March 19, 2024 / Rules
and Regulations
[[Page 19497]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3565
[Docket No. RHS-23-MFH-0006]
RIN 0575-AD31
Section 538 Guaranteed Rural Rental Housing Program Change in
Priority Projects Criteria
AGENCY: Rural Housing Service, Department of Agriculture (USDA).
ACTION: Final rule.
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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development (RD) agency of the United States Department of Agriculture
(USDA), is amending the current regulation for the Multifamily Family
Housing (MFH) Section 538 Guaranteed Rural Rental Housing Program
(GRRHP). This final rule will align the current criteria of priority
projects with the Housing Act of 1949 while improving the customer
experience with more timely and proactive responses to housing market
demands and Administration priorities.
DATES: Effective date: This final rule is effective April 18, 2024.
FOR FURTHER INFORMATION CONTACT: Tammy Daniels, Finance and Loan
Analyst, Multi-Family Housing Production and Preservation Division,
Rural Housing Service, United States Department of Agriculture, STOP
0781, 1400 Independence Avenue SW, Washington, DC 20250-0781,
Telephone: (202) 720-0021 (this is not a toll-free number); 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 multifamily 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.
RHS administers the Section 538 Guaranteed Rural Rental Housing
Program (GRRHP) under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2). Under the GRRHP, RHS guarantees loans for
the development of housing and related facilities in rural areas. And,
as mandated by Title V of the Housing Act of 1949, the Agency must give
priority to rural areas in which borrowers can best use and need
guaranteed loans. 42 U.S.C. 1490p-2(l)(2). 7 CFR 3565.5(b) currently
defines ``priority projects'' as those in smaller rural communities, in
the neediest communities having the highest percentage of leveraging,
having the lowest interest rate, having the highest ratio of 3-to-5-
bedroom units to total units, or on tribal lands. Some of these
specific priorities are no longer relevant.
II. Discussion of the Final Rule
RHS published a proposed rule on January 31, 2023 (88 FR 6209) to
align 7 CFR 3565 current priority criteria points with the Housing Act
of 1949 to increase the supply of affordable rural rental housing by
using loan guarantees to encourage partnerships between the RHS,
private lenders, and public agencies. The Agency received public
comments which are discussed in the section III. Discussion of Public
Comments of this notice.
The GRRHP uses priority points to rank and score applications based
on criteria that frequently evolve and change depending on the housing
market demands, as well as current and future Administrations'
priorities. Currently, 7 CFR 3565.5(b) is not aligned with the Housing
Act of 1949 criteria and does not afford the flexibility the Agency
requires in its decision making to fully address these evolving
priorities without a regulatory change to the priority-points scoring
criteria. This final rule will change the current regulation [7 CFR
3565.5(b)] and provide the flexibility required in the Agency's
decision-making to fully address evolving priorities in the housing
market demands in a more timely and proactive manner, as needed, by
current and future Administrations. The Agency will also be in a
stronger position to meet the current and future demands of the housing
market which ultimately will allow the Agency to be more responsive to
the needs of the program's rural stakeholders.
III. Discussion of Public Comments
The RHS received eight comments from six respondents. One of the
comments was not applicable to the contents of the rule and two other
respondents submitted their comments twice. One respondent works for a
non-profit agency, three respondents are students, of which one of
these students submitted their comment to the Agency twice. The last
respondent is a member of the public, who also submitted their comment
to the Agency twice. All comments were supportive of the rule.
The following is a summary of the relevant comments:
Public Comments
Two respondents replied that they were in favor of the proposed
rule indicating that the change will not cause any adverse action to
the low to moderate income populations and will grow and strengthen
rural areas.
Agency's Response
The Agency appreciates that support and has determined that no
action is required.
Public Comments
Three respondents who indicated that they were students who were
responding to a class assignment replied in favor of the proposed rule.
They all agreed that housing in rural areas is important.
Agency's Response
The Agency appreciates the support and has determined that no
action is required.
IV. Summary of Changes
The final rule will amend 7 CFR 3565.5(b) to offer the Agency
decision making process flexibility by aligning the current criteria of
priority projects with 42 U.S.C. 1490p-2(l)(2) to be more timely and
responsive to developing demands in the rural housing market, as
[[Page 19498]]
well as evolving priorities with current and future Administrations,
while improving its customers' experience with the program. The Agency
will also be in a stronger position to meet the current and future
demands of the housing market, which ultimately would allow the Agency
to be more responsive to the needs of the program's rural stakeholders.
V. Regulatory Information
Statutory Authority
The RHS administers the 538 Guaranteed Rural Rental Housing Program
(GRRHP) loans under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2(l)(2)); implemented under 7 CFR part 3565.
Section 510(k) of Title V the Housing Act of 1949 (42 U.S.C. 1480(k)),
as amended, authorizes the Secretary of Agriculture to promulgate rules
and regulations as deemed necessary to carry out the purpose of that
title.
Executive Order 12372, Intergovernmental Review of Federal Programs
These loans are subject to the provisions of Executive Order 12372,
which require 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 final 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 final rule has been reviewed under Executive Order 12988. In
accordance with this rule: (1) Unless otherwise specifically provided,
all State and local laws that conflict with this rule will be
preempted; (2) no retroactive effect will be given to this rule except
as specifically prescribed in the rule; and (3) administrative
proceedings of the National Appeals Division of USDA (7 CFR part 11)
must be exhausted before suing in court that challenges action taken
under this final rule.
Executive Order 13132, Federalism
The policies contained in this final 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 final
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 final 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 final rule
is not subject to the requirements of Executive Order 13175. If tribal
leaders are interested in consulting with RHS on this rule, they are
encouraged to contact USDA's Office of Tribal Relations or RD's Native
American Coordinator at: [email protected] to request such a consultation.
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 is not required.
Regulatory Flexibility Act
This final rule has been reviewed with regards 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
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, most cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This final 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 rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
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 final 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).
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.
Civil Rights Impact Analysis
RD has reviewed this final rule in accordance with USDA Regulation
4300-4, Civil Rights Impact Analysis,'' to identify any major civil
rights impacts the rule might have on program participants on the basis
of age, race, color, national origin, sex, disability, gender identity
(including gender expression), genetic information, political beliefs,
sexual orientation, marital status, familial status, parental status,
veteran status, religion, reprisal and/or resulting from all or a part
of an individual's income being derived from any public assistance
program. This Final rule is within a Guarantee-based program.
Guarantees are not covered under Title VI of the Civil Rights Act of
1964, Section 504 of the Rehabilitation Act of 1973, and Title IX of
the Education Amendments Act of 1972, as amended, when the Federal
assistance does not include insurance or interest credit loans. Lenders
must comply with other applicable Federal laws, including Equal
Employment Opportunities, the
[[Page 19499]]
Equal Credit Opportunity Act, the Fair Housing Act, and the Civil
Rights Act of 1964. Guaranteed loans that involve the construction of
or addition to facilities that accommodate the public must comply with
the Architectural Barriers Act Accessibility Standard. The borrower and
lender are responsible for ensuring compliance with these requirements.
Assistance Listing
The program affected by this regulation is listed in the Catalog of
Federal Domestic Assistance under numbers 10.438--Rural Rental Housing
Guaranteed Loans (Section 538).
Non-Discrimination Statement
In accordance with Federal civil rights laws and 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, or staff office; the USDA TARGET
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service
at 711.
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 3565
Conflict of interest, Credit, Fair housing, Loan programs-housing
and community development, Low and moderate-income housing,
Manufactured homes, Mortgages, Rent subsidies, Reporting and
recordkeeping requirements, Rural areas.
For the reasons discussed in the preamble, the Agency amends 7 CFR
part 3565 as follows:
PART 3565--GUARANTEED RURAL RENTAL HOUSING PROGRAM
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1. The authority citation for part 3565 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C 1989; 42 U.S.C. 1480.
Subpart A--General Provisions
0
2. Amend Sec. 3565.5 by revising paragraph (b) to read as follows:
Sec. 3565.5 Ranking and selection criteria
* * * * *
(b) Priority projects. Priority will be given to projects in rural
areas in which borrowers can best utilize and where loan guarantees are
needed the most, as determined by the Agency based on information the
Secretary considers appropriate. In addition, the Agency may, at its
sole discretion, set aside assistance for or rank projects that meet
important program goals. Assistance will include both loan guarantees
and interest credits. Priority projects must compete for set-aside
funds. The Agency will announce the priority criteria in an
announcement in the Federal Register.
Yvonne Hsu,
Acting Administrator, Rural Housing Service.
[FR Doc. 2024-05756 Filed 3-18-24; 8:45 am]
BILLING CODE 3410-XV-P