[Federal Register Volume 74, Number 166 (Friday, August 28, 2009)]
[Rules and Regulations]
[Pages 44285-44286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20879]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 5, 92, and 908

[Docket No. FR-4998-F-05]
RIN 2501-AD16


Refinement of Income and Rent Determination Requirements in 
Public and Assisted Housing Programs; Delay of Effective Date

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule; delay of effective date.

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SUMMARY: HUD is delaying the effective date of the rule entitled 
``Refinement of Income and Rent Determination Requirements in Public 
and Assisted Housing Programs'' published in the Federal Register on 
January 27, 2009. The January 27, 2009, final rule, which was scheduled 
to become effective on September 30, 2009, will become effective on 
January 31, 2010. Today's action will provide the Department with the 
necessary additional time to review the subject matter of the January 
27, 2009, final rule and to consider the public comments on HUD's 
February 11, 2009, Federal Register notice that

[[Page 44286]]

solicited public comments on the regulatory amendments made by the 
January 27, 2009 final rule.

DATES: Effective Date: The effective date of the final rule, which was 
published on January 27, 2009 (74 FR 4832), delayed March 27, 2009 (74 
FR 13339), is further delayed until January 31, 2010.

FOR FURTHER INFORMATION CONTACT: For Office of Public and Indian 
Housing programs, contact Nicole Faison, Program Advisor for the Office 
of Public Housing and Voucher Programs, Department of Housing and Urban 
Development, 451 7th Street, SW., Room 4226, Washington, DC 20410, 
telephone number 202-402-4267. For Office of Housing Programs, contact 
Gail Williamson, Director of the Housing Assistance Policy Division, 
Department of Housing and Urban Development, 451 7th Street, SW., Room 
6138, Washington, DC 20410, telephone number 202-402-2473. (These are 
not toll-free numbers.) Persons with hearing or speech impairments may 
access these numbers through TTY by calling the toll-free Federal 
Information Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    On January 27, 2009 (74 FR 4832), HUD published a final rule, 
entitled ``Refinement of Income and Rent Determination Requirements in 
Public and Assisted Housing Programs.'' The January 27, 2009, final 
rule revises HUD's public and assisted housing program regulations to 
implement the upfront income verification process for program 
participants and to require the use of HUD's Enterprise Income 
Verification (EIV) system by public housing agencies (PHAs) and owners 
and management agents. The January 27, 2009, final rule was originally 
scheduled to become effective on March 30, 2009, but provided 
multifamily housing owners and management agents with an additional six 
months (until September 30, 2009) to implement use of the EIV system.
    On February 11, 2009 (74 FR 6839), HUD published a notice in the 
Federal Register seeking public comment on whether to delay the 
effective date of the January 27, 2009, final rule. The February 11, 
2009, notice was issued in accordance with the memorandum of January 
20, 2009, from the assistant to the President and Chief of Staff, 
entitled ``Regulatory Review'' and subsequently published in the 
Federal Register on January 26, 2009 (74 FR 4435). The notice explained 
that HUD was considering a temporary 60-day delay in the effective date 
to allow the Department an opportunity for further review and 
consideration of new regulations, consistent with the Chief of Staff 
memorandum of January 20, 2009. In addition to soliciting comments 
specifically delaying the effective date, the February 11, 2009, notice 
also requested comment generally on the January 27, 2009 final rule.
    The comment period on the February 11, 2009 notice closed on March 
13, 2009. HUD received 50 public comments. Comments were submitted by a 
variety of organizations including PHAs, property owners, management 
agents, program training organizations, legal aid organizations, 
community development organizations, and public interest organizations. 
The majority of comments were supportive of a delayed effective date, 
but also raised additional questions and comments about various aspects 
of the January 27, 2009, final rule. Among other issues, commenters 
requested that HUD clarify the definition of annual income, questioned 
how the rule would affect participants that might have difficulty 
obtaining social security numbers for their children, and noted 
confusion regarding the use of HUD's EIV system.
    Following publication of the February 11, 2009, Federal Register 
notice, HUD issued a final rule on March 27, 2009 (74 FR 13339) that 
delayed the effective date of the January 27, 2009, final rule to 
September 30, 2009, for the purpose of providing HUD with time to 
review the public comments received in response to the February 11, 
2009 notice (March 2009 extension final rule).

II. This Final Rule

    Through this final rule published in today's Federal Register, HUD 
further delays the effective date of the January 27, 2009, final rule 
until January 31, 2010. The two HUD Assistant Secretaries with 
responsibility for the programs affected by the rule were only recently 
confirmed. HUD seeks to ensure that these two officials have sufficient 
time to review the subject matter of this rule, and to review and 
consider the public comments received in response to HUD's February 11, 
2009, Federal Register notice.
    HUD notes that it generally publishes regulatory changes, including 
revisions to the effective date of its rules, for public comment before 
issuing them for effect, in accordance with its own regulations on 
rulemaking in 24 CFR part 10. Part 10, however, does provide in Sec.  
10.1 for exceptions from that general rule where the Department 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.'' 
Given the possibility of changes to the provisions of the January 27, 
2009, final rule and the fast approaching September 30, 2009, effective 
date of the regulatory amendments, HUD has determined that it would be 
contrary to the public interest to delay issuance of today's rule for 
effect. A delay in the extension of the effective date of the January 
27, 2009, final rule would compel PHAs, owners and management agents, 
and residents of HUD-assisted housing to bear the burden of compliance 
with regulatory requirements that may be subject to further amendment 
in the near-term. Moreover, and as noted above, the 50 public comments 
received on HUD's February 11, 2009, notice raised several substantive 
questions and concerns regarding the provisions of the final rule. It 
would be contrary to the public interest to defer extending the 
effective date and require compliance with the January 27, 2009, final 
rule before the appropriate and newly confirmed HUD officials have the 
opportunity to review and consider the issues raised by the commenters.
    The Department remains committed to the implementation of the EIV 
system and continues to believe that the use of upfront income 
verification will help to identify and cure inaccuracies in public and 
assisted housing rental determinations. Given the number of public 
comments submitted in response to the February 11, 2009 notice, and the 
concerns and questions raised in those comments, the additional time 
provided by today's final rule will allow the Department to carefully 
weigh available policy options and to help ensure the successful 
implementation of the enhanced income and rent verification procedures. 
Should HUD determine that additional rulemaking is necessary or 
appropriate, HUD will provide the public with the opportunity to 
comment on any proposed changes to the regulations in the January 27, 
2009 final rule.
    Therefore, the effective date of the final rule, which was 
published on January 27, 2009 (74 FR 4832), delayed March 27, 2009 (74 
FR 13339), is further delayed until January 31, 2010.

    Dated: August 25, 2009.
Shaun Donovan,
Secretary.
[FR Doc. E9-20879 Filed 8-27-09; 8:45 am]
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