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.

Proposed Rules Federal Register

64488 

Vol. 83, No. 241 

Monday, December 17, 2018 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 3565 

RIN 0575–AD12 

Section 538 Guaranteed Rural Rental 

Housing Program Notice of Funding 

Availability Elimination 

AGENCY: Rural Housing Service, USDA. 

ACTION: Proposed rule 

SUMMARY: The Rural Housing Service 

(RHS or Agency) is amending its 

regulation to eliminate the requirement 

for the annual publication of Notice of 

Funding Availability (NOFA). 

Additionally, RHS will remove all 

references to the term NOFA in other 

various sections. The intended effect of 

this action is to allow the Agency to 

accept and start processing applications 

in a more fluid manner. 

DATES: Written or email comments must 

be received on or before February 15, 

2019. 

ADDRESSES: You may submit comments 

to this rule by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and, in the 

lower ‘‘Search Regulations and Federal 

Actions’’ box, select ‘‘Rural Utilities 

Service’’ from the agency drop-down 

menu, then click on ‘‘Submit.’’ In the 

Docket ID column, select RHS–18– 

MFH–0025 to submit or view public 

comments and to view supporting and 

related materials available 

electronically. 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 ‘‘User Tips’’ 

link. 

• Postal Mail/Commercial Delivery: 

Submit written comments to Michele L. 

Brooks, Team Lead, RD Innovation 

Center—Regulatory Team, Rural 

Development, U.S. Department of 

Agriculture, STOP 1522, 1400 

Independence Avenue SW, Washington, 

DC 20250–1522. All written comments 

will be available for public inspection 

during regular work hours at 1400 

Independence Avenue SW, Mailstop 

1522, Washington, DC 20250. 

FOR FURTHER INFORMATION CONTACT: 

Monica Cole, Finance and Loan Analyst, 

Multi-Family Housing Guaranteed Loan 

Division, Rural Housing Service, U.S. 

Department of Agriculture, STOP 0781– 

Room# 1263S, 1400 Independence 

Avenue SW, Washington, DC 20250– 

0781, Telephone: (202) 720–1251 (this is 

not a toll-free number); email: 

monica.cole@wdc.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866—Classification 

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. 

Authority 

The Guaranteed Rural Rental Housing 

(GRRH) program is administered subject 

to appropriations by the U.S. 

Department of Agriculture (USDA) as 

authorized under the Housing Act of 

1949 as amended, Section 538, Public 

Law 106–569, 42 U.S.C. 1490 p-2. 

Environmental Impact Statement 

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 

The 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 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. 

Executive Order 13132—Federalism 

The policies contained in this 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 rule does not 

impose substantial direct compliance 

costs on State and local Governments; 

therefore, consultation with States is not 

required. 

Executive Order 12988—Civil Justice 

Reform 

This 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 the 

Department of Agriculture (7 CFR part 

11) must be exhausted before bringing 

suit in court that challenges action taken 

under this rule. 

Unfunded Mandate 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 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. 


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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Proposed Rules 64489 

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 in order to 

provide increased opportunities for 

citizen access to Government 

information, services, and other 

purposes. 

Programs Affected 

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). 

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 

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 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: AIAN@

wdc.usda.gov to request such a 

consultation. 

Executive Order 12372— 

Intergovernmental Consultation 

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. 

Non-Discrimination Statement 

In accordance with Federal civil 

rights law and U.S. Department of 

Agriculture (USDA) civil rights 

regulations and policies, the USDA, its 

Agencies, 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, familial/ 

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. 

Persons with disabilities who require 

alternative means of communication for 

program information (e.g., Braille, large 

print, audiotape, American Sign 

Language, etc.) should contact the 

responsible Agency or USDA’s TARGET 

Center at (202) 720–2600 (voice and 

TTY) or contact USDA through the 

Federal Relay Service at (800) 877–8339. 

Additionally, program information may 

be made available in languages other 

than English. 

To file a program discrimination 

complaint, complete the USDA Program 

Discrimination Complaint Form, AD– 

3027, found online at http://

www.ascr.usda.gov/complaint_filing_

cust.html and at any USDA office or 

write a letter addressed to USDA and 

provide in the letter all of the 

information requested in the form. To 

request a copy of the complaint form, 

call (866) 632–9992, submit your 

completed form or letter to USDA by: 

(1) Mail: U.S. Department of 

Agriculture, Director, Office of 

Adjudication, 1400 Independence 

Avenue SW, Washington, DC 20250– 

9410; 

(2) Fax: (202) 690–7442; or 

(3) Email: program.intake@usda.gov. 

USDA is an equal opportunity 

provider, employer, and lender. 

I. Background and Summary of 

Changes 

The annual publication of the NOFA 

is currently required by 7 CFR part 

3565. While, Section 536 of the Housing 

Act of 1949, as amended (42 U.S.C. 

1490p) (Housing Act) broadly requires a 

publication of the availability of funds, 

application procedures, and selection 

criteria in the Federal Register, it does 

not contain the annual notification 

requirement. RHS is amending its 

regulation to align with the Housing Act 

requirements, which will allow RHS to 

continue its application process under 

circumstances such as a Continuing 

Resolution. 

The delay caused by requiring an 

annual NOFA also creates a disconnect, 

in regards to the timing of deadlines, 

with the application process of tax 

credit financed properties, which 

represent approximately 85 percent of 

the Section 538 portfolio. Of these 

properties that are financed with tax 

credits, the tax credit equity represents 

approximately 75 percent of the total 

development cost (TDC). Without the 

injection of tax credit equities, rents 

would not be affordable to low income 

tenants. When developers use the 

Section 538 program with tax credits, 

they are required to submit a 

preliminary eligibility letter from Rural 

Development together with the tax 

credit application. If the NOFA is 

published after the tax credit 

application deadline, the developer will 

not be able to use tax credits to finance 

the project. 

In lieu of the NOFA process, the 

Section 538 GRRH program will follow 

procedures similar to other Rural 

Development guaranteed loan programs 

and accept applications on a continuous 

basis. The Agency will make an 

announcement to the public when funds 

are available. Rural Development will 

use the standards from the last NOFA as 

published in the Federal Register on 

December 21, 2017 (82 FR 60579). If 

Rural Development chooses to change 

the selection and/or scoring criteria or 

fees charged in subsequent years, it will 

inform the public of those changes 

through additional notices in the 

Federal Register. Both Empowerment 

Zone (EZ) and Enterprise Community 

(EC) Initiatives have expired, so 

reference to those initiatives will also be 

removed from 7 CFR part 3565. 

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 set forth in the 

preamble, RHS proposes to amend 7 

CFR part 3565, as follows: 

PART 3565—GUARANTEED RURAL 

RENTAL HOUSING PROGRAM 

■ 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 

§ 3565.3 [Amended] 

■ 2. Amend § 3565.3 by removing the 

definition of ‘‘NOFA.’’ 


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64490 Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Proposed Rules 

■ 3. Section 3565.4 is revised to read as 

follows: 

§ 3565.4 Availability of assistance. 

The Agency’s authority to enter into 

commitments, guarantee loans, or 

provide interest credits is limited to the 

extent that appropriations are available 

to cover the cost of the assistance. The 

Agency will notify the public of the 

availability of assistance, changes in 

application requirements, or changes in 

the fee structure. 

■ 4. Amend § 3565.5 by revising 

paragraph (b) to read as follows: 

§ 3565.5 Ranking and selection criteria. 

* * * * * 

(b) Priority projects. Priority will be 

given to projects: In smaller rural 

communities, in the most needy 

communities having the highest 

percentage of leveraging, having the 

lowest interest rate, having the highest 

ratio of 3–5 bedroom units to total units, 

or on tribal lands. 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. 

Subpart B—Guarantee Requirements 

■ 5. Amend § 3565.53 by revising 

paragraph (c) to read as follows: 

§ 3565.53 Guarantee fees. 

* * * * * 

(c) Surcharge for guarantees on 

construction advances. The Agency 

may, at its sole discretion, charge an 

additional fee on the portion of the loan 

advanced during construction. If 

applicable, this fee will be charged in 

advance at the start of construction. 

Subpart C—Lender Requirements 

§ 3565.104 [Amended] 

■ 6. Amend § 3565.104 by removing the 

last sentence. 

Subpart E—Loan Requirements 

■ 7. Section 3565.210 is revised to read 

as follows: 

§ 3565.210 Maximum interest rate. 

The interest rate for a guaranteed loan 

must not exceed the maximum 

allowable rate specified by the Agency. 

This interest rate must be fixed over the 

term of the loan. 

Subpart F—Property Requirements 

■ 8. Section 3565.252 is revised to read 

as follows: 

§ 3565.252 Housing types. 

The property may include new 

construction or rehabilitation of existing 

structures. The units may be attached, 

detached, semi-detached, row houses, 

modular or manufactured houses, or 

multifamily structures. Manufactured 

housing must meet Agency 

requirements contained in 7 CFR part 

1924, subpart A or a successor 

regulation. The Agency will guarantee 

proposals for new construction or 

acquisition with moderate or substantial 

rehabilitation of at least $6,500 per 

dwelling unit. The portion of 

guaranteed funds available for 

acquisition with rehabilitation may be 

limited. 

Subpart G—Processing Requirements 

■ 9. Amend § 3565.302 by revising 

paragraph (b) introductory text to read 

as follows: 

§ 3565.302 Allowable fees. 

* * * * * 

(b) Agency Fees. The Agency will 

charge one or more types of fees deemed 

appropriate as reimbursement for 

reasonable and necessary costs incurred 

in connection with applications 

received from lenders. Agency fees may 

include, but are not limited to, the 

following: 

* * * * * 

Dated: November 20, 2018. 

Joel C. Baxley, 

Administrator, Rural Housing Service. 

[FR Doc. 2018–27138 Filed 12–14–18; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

Docket No. FAA–2018–0974; Airspace 

Docket No. 18–ACE–4] 

RIN 2120–AA66 

Proposed Establishment of Class E 

Airspace; Auburn, NE 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action proposes to 

establish Class E airspace extending 

upward from 700 feet above the surface 

at Farington Field Airport, Auburn, NE. 

Controlled airspace is necessary to 

accommodate new standard instrument 

approach procedures developed at 

Farington Field Airport, for the safety 

and management of instrument flight 

rules (IFR) operations. 

DATES: Comments must be received on 

or before January 31, 2019. 

ADDRESSES: Send comments on this 

proposal to the U.S. Department of 

Transportation, Docket Operations, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590, telephone (202) 

366–9826, or (800) 647–5527. You must 

identify FAA Docket No. FAA–2018– 

0974; Airspace Docket No. 18–ACE–4, at 

the beginning of your comments. You 

may also submit comments through the 

internet at http://www.regulations.gov. 

You may review the public docket 

containing the proposal, any comments 

received, and any final disposition in 

person in the Dockets Office between 

9:00 a.m. and 5:00 p.m., Monday 

through Friday, except federal holidays. 

FAA Order 7400.11C, Airspace 

Designations and Reporting Points, and 

subsequent amendments can be viewed 

online at http://www.faa.gov/air_traffic/ 

publications/. For further information, 

you can contact the Airspace Policy 

Group, Federal Aviation 

Administration, 800 Independence 

Avenue SW, Washington, DC 20591; 

telephone: (202) 267–8783. The Order is 

also available for inspection at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of FAA 

Order 7400.11C at NARA, call (202) 

741–6030, or go to https://

www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

FAA Order 7400.11, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. 

FOR FURTHER INFORMATION CONTACT: 

Rebecca Shelby, Federal Aviation 

Administration, Operations Support 

Group, Central Service Center, 10101 

Hillwood Parkway, Fort Worth, TX 

76177; telephone (817) 222–5857. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 


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