[Federal Register Volume 89, Number 116 (Friday, June 14, 2024)]
[Rules and Regulations]
[Pages 50523-50524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13124]



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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 58 and 1005

[Docket No. FR-5593-F-04]
RIN 2577-AD01


Strengthening the Section 184 Indian Housing Loan Guarantee 
Program; Delay of Effective and Compliance Dates

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Final rule; delay of effective date, establishment of 
compliance dates.

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SUMMARY: The Department of Housing and Urban Development (HUD) 
published in the Federal Register on March 20, 2024, a final rule to 
strengthen its Section 184 Indian Loan Guarantee Program by, among 
other things, clarifying rules for Tribes, lenders, servicers, and 
other participants. The final rule established an effective date of 
June 18, 2024. To provide time for HUD to develop and implement a 
comprehensive handbook for the Section 184 Program and to allow Tribes, 
lenders, servicers, and other participants time to conform their 
policies, procedures, and systems to comply with HUD's March 20, 2024, 
final rule, this rulemaking delays that effective date to December 31, 
2024, and establishes a compliance date of March 1, 2025.

DATES: 
    Effective date: The effective date for the final rule published 
March 20, 2024, at 89 FR 20032, is delayed from June 18, 2024, until 
December 31, 2024.
    Compliance date: March 1, 2025.

FOR FURTHER INFORMATION CONTACT: Brian Cook, Acting Director, Office of 
Loan Guarantee, Office of Native American Programs, Office of Public 
and Indian Housing, Department of Housing and Urban Development, 451 
7th Street SW, Room 4108, Washington, DC 20410; telephone number 202-
402-4978 (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: On March 20, 2024, HUD published a final 
rule titled ``Strengthening the Section 184 Indian Housing Loan 
Guarantee Program'' (the Final Rule). The Final Rule amended the 
regulations to the Section 184 Indian Housing Loan Guarantee Program 
(Section 184 Program). Since its inception, the Section 184 Program has 
experienced an increase in demand. As a result, HUD's March 20, 2024, 
final rule updated program regulations to minimize potential risk and 
increase program participation by financial institutions. The final 
rule added eligibility and participation requirements for Lender 
Applicants, Direct Guarantee Lenders, Non-Direct Guarantee Lenders, 
Holders and Servicers and other Section 184 Program participants. The 
final rule also clarified the rules governing Tribal participation in 
the program, established underwriting requirements, specifies rules on 
the closing and endorsement process, established stronger and clearer 
servicing requirements, established program rules governing claims 
submitted by Servicers and paid by HUD, and added standards governing 
monitoring, reporting, sanctions, and appeals. Lastly, the final rule 
added new definitions and makes statutory conforming amendments, 
including the categorical exclusion of the Section 184 Program in HUD's 
environmental review regulations. The final rule established a June 18, 
2024, effective date.
    Since publishing the final rule, HUD has determined that additional 
time is required to fully implement the rule. Initially, HUD has been 
drafting the Section 184 Program Indian Housing Loan Guarantee Program 
Handbook (Section 184 Handbook). The Section 184 Handbook will provide 
comprehensive guidance and clarification for all stakeholders to fully 
understand and implement the final rule. Given the size of the Section 
184 Handbook, HUD has determined that it will not be available prior to 
the current June 18, 2024, effective date. HUD has also determined that 
it needs additional time to ensure compliance with the Paperwork 
Reduction Act requirements. Finally, HUD has determined that Tribes, 
lenders, servicers, and other participants need additional time to 
conform their policies, procedures, and systems to comply with final 
rule. As a result of these factors, HUD is delaying the effective date 
of the March 20, 2024, final rule from June 18, 2024, until December 
31, 2024. In addition, to provide HUD time to complete drafting the 
Section 184 Handbook and to provide stakeholders time to implement the 
instructions in the Section 184 Handbook, which may not be fully 
available before the effective date, HUD is delaying compliance until 
March 1, 2025.

Administrative Procedure Act and 24 CFR Part 10

    In general, HUD publishes a rule for public comment before issuing 
a rule for effect, in accordance with both the Administrative Procedure 
Act (APA), 5 U.S.C. 553, and its own regulations on rulemaking, 24 CFR 
part 10. Both the APA and Part 10, however, provide for exceptions from 
that general rule where HUD finds good cause to omit advance notice and 
public participation. The good cause requirement is satisfied when the 
prior public procedure is ``impracticable, unnecessary, or contrary to 
the public interest.'' To publish a rule for effect prior to receiving 
and responding to public comments, the agency must make a finding that 
at least one of these ``good cause'' exceptions applies.
    HUD has determined that good cause exists to promulgate this final 
rule without prior notice and comment. Without this rulemaking, the 
final rule published at 89 FR 20032 will become effective June 18, 
2024. Given the imminence of the effective date, seeking prior notice 
and the opportunity for public comment on this delay is impractical. 
Specifically, if prior notice and opportunity for public comment are 
required to delay the effective date to December 31, 2024, this final 
rule will not be issued prior to June 18, 2024. If this were to happen, 
HUD would not be able to provide comprehensive guidance to Tribes, 
lenders, servicers, and other participants to assist them in 
implementing the requirements of the March 20, 2024, final rule. 
Further, implementation of the rule would further be complicated by the 
absence of approved paperwork. Finally, this delay will provide Tribes, 
lenders, servicers, and other participants time to update their 
procedures, policies, and systems to ensure a smooth implementation of 
the rule.

Findings and Certifications

Regulatory Review--Executive Orders 12866 and 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

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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 (Modernizing Regulatory Review) amends section 3(f) of 
Executive Order 12866, among other things. This rule has been 
determined not to be a ``significant regulatory action'' as defined in 
section 3(f) of the Executive order and therefore was not reviewed by 
OMB.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) 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 will not impose any 
Federal mandates on any state, local, or tribal government or the 
private sector within the meaning of the Unfunded Mandates Reform Act 
of 1995.

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
was made prior to publication of the March 20, 2024, final rule, in 
accordance with HUD regulations at 24 CFR part 50, which implement 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)). The Finding of No Significant Impact remains 
applicable and is available for public inspection between the hours of 
8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of 
General Counsel, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street SW, Washington, DC 20410-0500. The 
Finding of No Significant Impact will also be available for review in 
the docket for this rule on Regulations.gov.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on state and local governments and 
is not required by statute, or preempts state law, unless the relevant 
requirements of section 6 of the Executive order are met. This 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.

Damon Smith,
General Counsel.
[FR Doc. 2024-13124 Filed 6-13-24; 8:45 am]
BILLING CODE 4210-67-P