Federal Register / Vol. 65, No. 10 / Friday, January 14, 2000 / Rules and Regulations 2329

Allocation of the Low-Income Housing

Credit,’’ and attaching a copy of this

schedule to Form 8610, ‘‘Annual LowIncome Housing Credit Agencies

Report,’’ for the year the correction is

made. The Agency will indicate on the

schedule that it is making the

‘‘correction under § 1.42–13(b)(3)(vii).’’

For a carryover allocation made before

January 1, 2000, the Agency must

complete Schedule A (Form 8610), and

indicate on the schedule that it is

making the ‘‘correction under § 1.42–

13(b)(3)(vii)’’;

(C) Amending, if applicable, the Form

8609 and attaching the original of this

amended form to Form 8610 for the year

the correction is made. The Agency will

indicate on the Form 8609 that it is

making the ‘‘correction under § 1.42–

13(b)(3)(vii)’’; and

(D) Mailing or otherwise delivering a

copy of any amended allocation

document and any amended Form 8609

to the affected taxpayer.

(viii) Other approval procedures. The

Secretary may grant automatic approval

to correct other administrative errors or

omissions as designated in one or more

documents published either in the

Federal Register or in the Internal

Revenue Bulletin (see § 601.601(d)(2) of

this chapter).

* * * * *

(d) * * * Paragraphs (b)(3)(vi), (vii),

and (viii) of this section are effective

January 14, 2000.

Par. 7. Section 1.42–17 is added to

read as follows:

§ 1.42–17 Qualified allocation plan.

(a) Requirements—(1) In general.

[Reserved]

(2) Selection criteria. [Reserved]

(3) Agency evaluation. Section

42(m)(2)(A) requires that the housing

credit dollar amount allocated to a

project is not to exceed the amount the

Agency determines is necessary for the

financial feasibility of the project and its

viability as a qualified low-income

housing project throughout the credit

period. In making this determination,

the Agency must consider—

(i) The sources and uses of funds and

the total financing planned for the

project. The taxpayer must certify to the

Agency the full extent of all federal,

state, and local subsidies that apply (or

which the taxpayer expects to apply) to

the project. The taxpayer must also

certify to the Agency all other sources

of funds and all development costs for

the project. The taxpayer’s certification

should be sufficiently detailed to enable

the Agency to ascertain the nature of the

costs that will make up the total

financing package, including subsidies

and the anticipated syndication or

placement proceeds to be raised.

Development cost information, whether

or not includible in eligible basis under

section 42(d), that should be provided to

the Agency includes, but is not limited

to, site acquisition costs, construction

contingency, general contractor’s

overhead and profit, architect’s and

engineer’s fees, permit and survey fees,

insurance premiums, real estate taxes

during construction, title and recording

fees, construction period interest,

financing fees, organizational costs,

rent-up and marketing costs, accounting

and auditing costs, working capital and

operating deficit reserves, syndication

and legal fees, and developer fees;

(ii) Any proceeds or receipts expected

to be generated by reason of tax benefits;

(iii) The percentage of the housing

credit dollar amount used for project

costs other than the costs of

intermediaries. This requirement should

not be applied so as to impede the

development of projects in hard-todevelop areas under section 42(d)(5)(C);

and

(iv) The reasonableness of the

developmental and operational costs of

the project.

(4) Timing of Agency evaluation—(i)

In general. The financial determinations

and certifications required under

paragraph (a)(3) of this section must be

made as of the following times—

(A) The time of the application for the

housing credit dollar amount;

(B) The time of the allocation of the

housing credit dollar amount; and

(C) The date the building is placed in

service.

(ii) Time limit for placed-in-service

evaluation. For purposes of paragraph

(a)(4)(i)(C) of this section, the evaluation

for when a building is placed in service

must be made not later than the date the

Agency issues the Form 8609, ‘‘LowIncome Housing Credit Allocation

Certification.’’ The Agency must

evaluate all sources and uses of funds

under paragraph (a)(3)(i) of this section

paid, incurred, or committed by the

taxpayer for the project up until date the

Agency issues the Form 8609.

(5) Special rule for final

determinations and certifications. For

the Agency’s evaluation under

paragraph (a)(4)(i)(C) of this section, the

taxpayer must submit a schedule of

project costs. Such schedule is to be

prepared on the method of accounting

used by the taxpayer for federal income

tax purposes, and must detail the

project’s total costs as well as those

costs that may qualify for inclusion in

eligible basis under section 42(d). For

projects with more than 10 units, the

schedule of project costs must be

accompanied by a Certified Public

Accountant’s audit report on the

schedule (an Agency may require an

audited schedule of project costs for

projects with fewer than 11 units). The

CPA’s audit must be conducted in

accordance with generally accepted

auditing standards. The auditor’s report

must be unqualified.

(6) Bond-financed projects. A project

qualifying under section 42(h)(4) is not

entitled to any credit unless the

governmental unit that issued the bonds

(or on behalf of which the bonds were

issued), or the Agency responsible for

issuing the Form(s) 8609 to the project,

makes determinations under rules

similar to the rules in paragraphs (a) (3),

(4), and (5) of this section.

(b) Effective date. This section is

effective on January 1, 2001.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 8. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 9. In § 602.101, paragraph (b) is

amended by revising the entry for 1.42–

5 and adding an entry for 1.42–17 to the

table in numerical order to read as

follows:

§ 602.101 OMB control numbers.

* * * * *

(b) * * *

CFR part or section where

identified and described

Current OMB

control No.

*****

1.42–5 ................................... 1545–1357

*****

1.42–17 ................................. 1545–1357

*****

Robert E. Wenzel,

Acting Commissioner of Internal Revenue.

Approved: December 28, 1999.

Jonathan Talisman,

Acting Assistant Secretary of the Treasury.

[FR Doc. 00–111 Filed 1–13–00; 8:45 am]

BILLING CODE 4830–01–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

for Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

2330 Federal Register / Vol. 65, No. 10 / Friday, January 14, 2000 / Rules and Regulations

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in February 2000. Interest

assumptions are also published on the

PBGC’s web site (http://www.pbgc.gov).

EFFECTIVE DATE: February 1, 2000.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024. (For TTY/TDD

users, call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions are

prescribed, one set for the valuation of

benefits to be paid as annuities and one

set for the valuation of benefits to be

paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest

assumptions for valuing benefits in

plans with valuation dates during

February 2000.

For annuity benefits, the interest

assumptions will be 7.10 percent for the

first 25 years following the valuation

date and 6.25 percent thereafter. The

annuity interest assumptions represent

an increase (from those in effect for

January 2000) of 0.20 percent for the

first 25 years following the valuation

date and are otherwise unchanged.

For benefits to be paid as lump sums,

the interest assumptions to be used by

the PBGC will be 5.25 percent for the

period during which a benefit is in pay

status, 4.50 percent during the sevenyear period directly preceding the

benefit’s placement in pay status, and

4.00 percent during any other years

preceding the benefit’s placement in pay

status. The lump sum interest

assumptions represent an increase (from

those in effect for January 2000), of 0.25

percent for the period during which a

benefit is in pay status and for the

seven-year period directly preceding the

benefit’s placement in pay status; they

are otherwise unchanged.

The PBGC has determined that notice

and public comment on this amendment

are impracticable and contrary to the

public interest. This finding is based on

the need to determine and issue new

interest assumptions promptly so that

the assumptions can reflect, as

accurately as possible, current market

conditions.

Because of the need to provide

immediate guidance for the valuation of

benefits in plans with valuation dates

during February 2000, the PBGC finds

that good cause exists for making the

assumptions set forth in this

amendment effective less than 30 days

after publication.

The PBGC has determined that this

action is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866.

Because no general notice of proposed

rulemaking is required for this

amendment, the Regulatory Flexibility

Act of 1980 does not apply. See 5 U.S.C.

601(2).

List of Subjects in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is amended as follows:

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

1. The authority citation for part 4044

continues to read as follows:

Authority: 29 U.S.C. 1301(a), 1302(b)(3),

1341, 1344, 1362.

2. In appendix B, a new entry is

added to Table I, and Rate Set 76 is

added to Table II, as set forth below.

The introductory text of each table is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 4044—Interest Rates Used to Value Annuities and Lump Sums

TABLE I.—ANNUITY VALUATIONS

[This table sets forth, for each indicated calendar month, the interest rates (denoted by i1, i2, * * * , and referred to generally as it) assumed to be

in effect between specified anniversaries of a valuation date that occurs within that calendar month; those anniversaries are specified in the

columns adjacent to the rates. The last listed rate is assumed to be in effect after the last listed anniversary date.]

For valuation dates occurring in the month—

The values of tt are

tt for t = tt for t = it for t =

*******

February 2000 .................................................................. .0710 1–25 .0625 >25 N/A N/A

Federal Register / Vol. 65, No. 10 / Friday, January 14, 2000 / Rules and Regulations 2331

TABLE II.—LUMP SUM VALUATIONS

[In using this table: (1) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate annuity rate shall apply; (2) For benefits for which the deferral period is y years (where y is an integer and 0 < y ≤ n1), interest rate i1 shall

apply from the valuation date for a period of y years, and thereafter the immediate annuity rate shall apply; (3) For benefits for which the deferral period is y years (where y is an integer and n1 < y ≤ n1 + n2), interest rate i2 shall apply from the valuation date for a period of y ¥ n1

years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate annuity rate shall apply; (4) For benefits for which

the deferral period is y years (where y is an integer and y > n1 + n2), interest rate i3 shall apply from the valuation date for a period of y ¥ n1 ¥ n2 years, interest rate i2 shall apply for the following n2 years, interest rate i1 shall apply for the following n1 years, and thereafter the

immediate annuity rate shall apply.]

Rate set

For plans with a valuation

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

*******

76 ........................................................................................ 2–1–00 3–1–00 5.25 4.50 4.00 4.00 7 8

Issued in Washington, DC, on this 7th day

of January 2000.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 00–859 Filed 1–13–00; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 904

[SPATS No. AR–035–FOR]

Arkansas Abandoned Mine Land

Reclamation Plan

AGENCY: Office of Surface Mining

Reclamation and Enforcement, Interior.

ACTION: Final rule; approval of

amendment.

SUMMARY: Office of Surface Mining

Reclamation and Enforcement (OSM) is

approving a proposed amendment to the

Arkansas abandoned mine land

reclamation plan (Arkansas plan) under

the Surface Mining Control and

Reclamation Act of 1977 (SMCRA). The

amendment consists of an addition to

the Arkansas plan relating to the

exclusion of certain noncoal

reclamation sites. Arkansas intends to

revise its plan to be consistent with the

corresponding Federal regulations.

EFFECTIVE DATE: January 14, 2000.

FOR FURTHER INFORMATION CONTACT:

Michael C. Wolfrom, Director, Tulsa

Field Office, Office of Surface Mining

Reclamation and Enforcement, 5100

East Skelly Drive, Suite 470, Tulsa,

Arkansas 74135–6547. Telephone: (918)

581–6430. Internet:

mwolfrom@tokgw.osmre.gov.

SUPPLEMENTARY INFORMATION:

I. Background on the Arkansas Plan

II. Submission of the Proposed Amendment

III. Director’s Findings

IV. Summary and Disposition of Comments

V. Director’s Decision

VI. Procedural Determinations

I. Background on the Arkansas Plan

On May 2, 1983, the Secretary of the

Interior approved the Arkansas plan.

You can find background information

on the Arkansas plan, including the

Secretary’s findings, the disposition of

comments, and the approval of the plan

in the May 2, 1983, Federal Register (48

FR 19710). You can find later actions on

the Arkansas plan at 30 CFR 904.25 and

904.26.

II. Submission of the Proposed

Amendment

By letter dated September 22, 1999

(Administrative Record No. AAML–28),

Arkansas sent us an amendment to its

plan pursuant to SMCRA. Arkansas sent

the amendment in response to our letter

dated September 8, 1999

(Administrative Record No. AAML–

27.07).

We announced receipt of the

amendment in the October 18, 1999,

Federal Register (64 FR 56179). In the

same document, we opened the public

comment period and provided an

opportunity for a public hearing on the

adequacy of Arkansas’ amendment. The

public comment period closed on

November 17, 1999. Because no one

requested a public hearing or meeting,

we did not hold one.

III. Director’s Findings

Following, under SMCRA and the

Federal regulations at 30 CFR 884.14

and 884.15, is our finding concerning

the amendment.

Policies and Procedures of the State

Abandoned Mine Land Reclamation

Program [30 CFR 884.13(c)]

Under subheading B. Identification of

Eligible Lands and Water [30 CFR

884.13(c)(2)], Arkansas proposed to add

the following language as a counterpart

to our Federal regulation at 30 CFR

875.16, Exclusion of certain noncoal

reclamation sites:

Money from the Fund shall not be used for

the reclamation of sites and areas designated

for remedial action pursuant to the Uranium

Mill Tailings Radiation Control Act of 1978

(42 U.S.C. 7901 et seq.) or that have been

listed for remedial action pursuant to the

Comprehensive Environmental Response

Compensation and Liability Act of 1980 (42

U.S.C. 9601 et seq.).

Because the above proposed revision

is identical in meaning to the

corresponding Federal regulation, the

Director finds that Arkansas’ revised

plan is no less effective than the Federal

regulation. Therefore, the Director is

approving this amendment.

IV. Summary and Disposition of

Comments

Public Comments

We asked for public comments on the

amendment, but did not receive any.

Federal Agency Comments

Under 30 CFR 884.14(a)(2) and

884.15(a), we requested comments on

the amendment from various Federal

agencies with an actual or potential

interest in the Arkansas plan

(Administrative Record Nos. AAML–

28.03). We received a comment from the

U.S. Army Corps of Engineers dated

November 5, 1999 (Administrative

Record No. AAML–28.06), stating that