[Federal Register Volume 89, Number 121 (Monday, June 24, 2024)]
[Rules and Regulations]
[Pages 52355-52356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13697]



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 Rules and Regulations
                                                 Federal Register
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 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.
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  Federal Register / Vol. 89, No. 121 / Monday, June 24, 2024 / Rules 
and Regulations  

[[Page 52355]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3550

[Docket No. RHS-24-SFH-0017]


Single Family Housing Section 504 Repair Pilot

AGENCY: Rural Housing Service, USDA.

ACTION: Notification of waivers.

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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural 
Development agency of the United States Department of Agriculture 
(USDA), is issuing this document to continue to waive two regulatory 
requirements for the Section 504 Direct Single Family Housing Loans and 
Grants (DSFHLG) pilot program while the Agency contemplates a future 
rulemaking to remove regulatory barriers to assist eligible applicants 
with improved ease of use for very low-income homeowners seeking to 
repair or rehabilitate their homes. This document briefly discusses the 
waivers that the Agency intends to continue and provides contact 
information for additional details about the pilot program.

DATES: Effective dates: The effective date of the two regulatory 
waivers is June 24, 2024. The duration of the pilot program is 
anticipated to continue until June 24, 2026, at which time the RHS may 
extend the pilot program (with or without modifications) or terminate 
it depending on the workload and resources needed to administer the 
program, feedback from the public, funding constraints and the 
effectiveness of the program. If the pilot program is extended or 
terminated, the RHS will notify the public.

FOR FURTHER INFORMATION CONTACT: Anthony Williams, Management and 
Program Analyst, Special Programs, Single Family Housing Direct Loan 
Division, Rural Development, U.S. Department of Agriculture, Email: 
[email protected]; Phone: (202) 720-9649.

SUPPLEMENTARY INFORMATION: 
    Authority: Title V, Section 504 of the Housing Act of 1949, as 
amended; 42 U.S.C. 1474.

Background

    The RHS offers a variety of programs to build or improve housing 
and essential community facilities in rural areas. The Agency offer 
loans, grants, and loan guarantees for single- and multifamily housing, 
child-care centers, fire and police stations, hospitals, libraries, 
nursing homes, schools, first responder vehicles and equipment, housing 
for farm laborers and much more. RHS also provides technical assistance 
loans and grants in partnership with non-profit organizations, Indian 
tribes, state and Federal government agencies, and local communities.
    The RHS Single Family Housing Direct Loans and Grants Program 
(SFHDLGP) Division implements the Section 504 loan/grant program under 
7 CFR part 3550 with the objective to assist very low-income owner 
occupants of modest single-family homes in rural areas repair or 
rehabilitate their homes. Loan funds are available for repairs to 
improve or modernize a home, make it safer or more sanitary, or remove 
health and safety hazards. The eligibility requirements, as described 
in 7 CFR 3550.103, states that homeowner must be unable to obtain 
affordable credit elsewhere at reasonable terms and conditions but must 
demonstrate a reasonable ability to repay the Section 504 loan. For 
homeowners 62 years old and over, grant funds are available to correct 
health or safety hazards, or remodel dwellings to make them accessible 
to a household member with a disability.
    RHS may authorize limited demonstration programs to test new 
approaches to offering housing under the statutory authority granted to 
the Secretary, as set forth in 7 CFR 3550.7. Such demonstration 
programs may not be consistent with some of the provisions contained in 
this part. However, any program requirements that are statutory will 
remain in effect.
    In 2019, the Agency initiated the Section 504 pilot program to 
evaluate existing regulations and remove regulatory barriers to assist 
very low-income homeowners seeking to repair or rehabilitate their 
homes. The pilot program has been successful in creating additional 
opportunities and greater accessibility for eligible applicants. All 
but two of the waived regulatory requirements were included in the 
Direct Singe Family Loans and Grants Programs Final rule (87 FR 6761), 
which became effective on March 9, 2022.

Section 504 Pilot Regulatory Waivers

    The Agency is continuing the Section 504 Pilot Program with the two 
waivers that were not included in the Final rule (87 FR 6761), but were 
subsequently included in the notification of waivers (87 FR 40709) 
published in the Federal Register on July 8, 2022 (which expires on 
July 8, 2024). The Agency anticpates a rulemaking in the future that 
will codify the waivers into 7 CFR part 3550, and which will be applied 
program-wide.
    The first waiver is that pilot applicants are not subject to the 
site requirement outlined in 7 CFR 3550.105(b) which states that ``the 
site must not be large enough to be subdivided into more than one site 
under existing local zoning ordinances.'' While pilot applicants can 
have subdividable sites, their homes must meet the other site 
requirements found in 7 CFR 3550.105(a) and the dwelling requirements 
found in 7 CFR 3550.106.
    The second waiver is that pilot applicants are not subject to the 
same appraisal threshold outlined in 7 CFR 3550.111, which requires an 
appraisal when the Section 504 debt to be secured exceeds $15,000 or 
whenever the Agency determines that an appraisal is necessary to 
establish the adequacy of the security. A ``subject to repairs'' 
appraisal and appraisal fee will be required when the assessed 
valuation by local authorities does not support a fully secured 
interest by the Agency, or when the sum of all secured (Rural 
Development or non-Rural Devleopment) indebtedness including the 
proposed repair loan, exceeds $25,000.

Eligibility Requirements

    Eligible participants in the Section 504 program must abide by the 
requriements set forth in 7 CFR part 3550. The following twenty-three 
(23) States and U.S. Territories are selected to provide wide 
geographic and historic

[[Page 52356]]

production variation for the pilot: California, Hawaii, Illinois, 
Indiana, Iowa, Kentucky, Maine, Michigan, Mississippi, New Jersey, New 
Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Puerto 
Rico, South Carolina, Texas, Tennessee, Virginia, Washington, and West 
Virginia. If an existing borrower in a pilot state qualifies for a 
subsequent loan or grant, the pilot conditions can apply to the 
subsequent request as appropriate. Non-pilot states may request case-
by-case administrative waivers (if justified) that mirror the 
allowances in the pilot.

Paperwork Reduction Act

    The regulatory waivers for this pilot contains no new reporting or 
recordkeeping burdens under OMB control number 0575-0179 that would 
require approval under the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35).

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 (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 http://www.ascr.usda.gov/complaint_filing_cust.html, 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].

Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2024-13697 Filed 6-21-24; 8:45 am]
BILLING CODE 3410-XV-P