[Federal Register Volume 88, Number 175 (Tuesday, September 12, 2023)]
[Proposed Rules]
[Pages 62475-62477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19662]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

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Federal Register / Vol. 88, No. 175 / Tuesday, September 12, 2023 / 
Proposed Rules

[[Page 62475]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3560

[Docket No. RHS-23-MFH-0013]
RIN 0575-AD36


Updates to the Off-Farm Labor Housing (Off-FLH), Loan and Grant 
Rates and Terms; Clarification of Grant Agreement Terms

AGENCY: Rural Housing Service, U.S. Department of Agriculture (USDA).

ACTION: Proposed rule.

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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development 
(RD) agency of the United States Department of Agriculture (USDA), 
proposes to amend the current regulation for the Off-Farm Labor Housing 
(Off-FLH) program by clarifying the grant agreement term and adopting 
the period of performance as required by Federal award information 
requirements. The changes in this proposed rule are expected to clarify 
for applicants and grantees their obligations and requirements as 
Federal award recipients.

DATES: Comments on the proposed rule must be received on or before 
November 13, 2023.

ADDRESSES: Comments may be submitted electronically by the Federal 
eRulemaking Portal: Go to http://www.regulations.gov and, in the 
``Search'' field box, labeled ``Search for dockets and documents on 
agency actions'' enter the following docket number: (RHS-23-MFH-0013) 
or the RIN# 0575-AD36. To submit or view public comments, click the 
``Search'' button, select the ``Documents'' tab, then select the 
following document title: (Updates to the Off-Farm Labor Housing (Off-
FLH), Loan and Grant Rates and Terms; Clarification of Grant Agreement 
Terms) from the ``Search Results,'' and select the ``Comment'' button. 
Before inputting your comments, you may also review the ``Commenter's 
Checklist'' (optional). Insert your comments under the ``Comment'' 
title, click ``Browse'' to attach files (if available). Input your 
email address and select ``Submit Comment.'' 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 ``FAQ'' link.
    Other Information: Additional information about Rural Development 
(RD) and its programs is available on the internet at https://www.rd.usda.gov/.
    All comments will be available online for public inspection at the 
Federal eRulemaking Portal (www.regulations.gov).

FOR FURTHER INFORMATION CONTACT: Christa Lindsey, Finance and Loan 
Analyst, United States Department of Agriculture Rural Housing Service, 
Multifamily Housing Production and Preservation Division; telephone 
number: (352) 538-5747; email address: <a href="/cdn-cgi/l/email-protection#d8b5beb0f6a8aab7bfaab9b5abada8a8b7aaac98adabbcb9f6bfb7ae"><span class="__cf_email__" data-cfemail="6a070c02441a18050d180b07191f1a1a05181e2a1f190e0b440d051c">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Background

    The RHS, an agency of the USDA, offers a variety of programs to 
build or improve housing and essential community facilities in rural 
areas. RHS offers loans, grants, and loan guarantees for single- and 
multi-family housing, childcare centers, fire and police stations, 
hospitals, libraries, nursing homes, schools, first responder vehicles 
and equipment, and housing for farm laborers. RHS also provides 
technical assistance loans and grants in partnership with non-profit 
organizations, Indian tribes, state and Federal government agencies, 
and local communities.
    Title V of the Housing Act of 1949 (Act) authorized the USDA to 
make housing loans to farmers to enable them to provide habitable 
dwellings for themselves or their tenants, lessees, sharecroppers, and 
laborers. The USDA then expanded opportunities in rural areas, making 
housing loans and grants to rural residents through the Single-Family 
Housing (SFH) and Multi-Family Housing (MFH) Programs.
    The RHS also operates the MFH Farm Labor Housing direct loan and 
grant programs under Sections 514 and 516 which provide low interest 
loans and grants to provide housing for year-round and migrant or 
seasonal domestic farm laborers. These eligible farm laborers may work 
either at the borrower's farm (``on-farm'') or at any other farm 
(``off-farm''). Housing under these programs may be built in any area 
with a need and demand for housing for farm laborers.

II. Discussion of This Proposed Regulatory Action

    Section 534(a) of the Housing Act requires notice and comment for 
rulemaking for all Rural Housing Service rules and regulations pursuant 
to Title V. The intention of this proposed rule is to update 7 CFR 
3560.566 by clarifying the grant agreement term and adopting the period 
of performance as required by the Federal award information 
requirements outlined in 2 CFR 200.211. Pursuant to 2 CFR 200.1, the 
``period of performance'' is defined as the total estimated time 
interval between the start of an initial Federal Award and the planned 
end date, which may include one or more funded portions, or budget 
periods. Identification of the period of performance in the Federal 
award per 2 CFR 200.211(b)(5) does not commit the awarding agency to 
fund the award beyond the currently approved budget period. 
Furthermore, a Federal award is defined under 2 CFR 200.1 as the 
instrument setting forth the terms and conditions of the grant 
agreement, cooperative agreement or other agreement for assistance as 
specified in 2 CFR 200.1.
    The regulations set forth at 7 CFR 3560 establish the requirements 
for making loans and grants for Off-FLH and for ongoing operations of 
this housing.
    Currently, the regulations set forth at 7 CFR 3560.566(c) determine 
the term of the grant agreement. As required by 2 CFR 200.211, the 
Agency must include the period of performance of the Federal award that 
has been given in the grant agreement. Therefore, the changes in this 
proposed rulemaking will further clarify the term of the grant 
agreement in 7 CFR 3560.566(c) and include a 5-year fixed period of 
performance in 7 CFR 3560.566(d).

III. Summary of Changes

    The proposed changes would amend 7 CFR part 3560.566 to clarify the 
term of the grant agreement and adopt the period of performance as 
required by

[[Page 62476]]

the Federal award information requirements outlined in 2 CFR 200.211.
    The Agency proposes the following changes to the loan and grant 
rates and terms in Sec.  3560.566 as follows:
    (1) Amend Sec.  3560.566(c) to read as follows: (c) Term of grant 
agreement. The grant agreement will remain in effect for as long as 
there is a need for the housing, as determined by the Agency.
    (2) Add paragraph (d) to section 3560.566 to read as follows: (d) 
Grant Period of Performance. The grant period of performance is five 
(5) years, which starts on the date the grant agreement is executed by 
both the Agency and the grantee and ends five (5) years from the date 
the grant agreement was executed by both the Agency and the grantee.

IV. Regulatory Information

Statutory Authority

    The Off-FLH Loan and Grant program is authorized by Title V of the 
Housing Act of 1949 (Pub. L. 81-171), as amended; 42 U.S.C. 1484; 42 
U.S.C. 1486(h); and 42 U.S.C. 1480; and implemented under 7 CFR part 
3560, subpart L.

Executive Order 12372, Intergovernmental Review of Federal Programs

    This program is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. RHS conducts intergovernmental consultations for each loan 
in accordance with 2 CFR part 415, subpart C.

Executive Order 12866, Regulatory Planning and Review

    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.

Executive Order 12988, Civil Justice Reform

    This proposed 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 suing in court 
that challenges action taken under this rule.

Executive Order 13132, Federalism

    The policies contained in this proposed 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 proposed 
rule does not impose substantial direct compliance costs on State and 
local Governments; therefore, consultation with States is not required.

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 proposed 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 Tribal 
Coordinator at: <a href="/cdn-cgi/l/email-protection#34757d757a74414750551a535b42"><span class="__cf_email__" data-cfemail="93d2dad2ddd3e6e0f7f2bdf4fce5">[email protected]</span></a> to request such a consultation.

National Environmental Policy Act

    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 (EIS) is not required.

Regulatory Flexibility Act

    This proposed rule has been reviewed regarding 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.

Unfunded Mandates 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, most cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule.
    This proposed 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.

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 proposed 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 to 
provide increased opportunities for citizen access to Government 
information, services, and other purposes.

Civil Rights Impact Analysis

    Rural Development has reviewed this rule in accordance with USDA 
Regulation 4300-4, Civil Rights Impact Analysis,'' to identify any 
major civil rights impacts the rule might have on program participants 
on the basis of age, race, color, national origin, sex, or disability. 
After review and analysis of the rule and available data, it has been 
determined that implementation of the rule will not adversely or 
disproportionately impact very low, low- and moderate-income 
populations, minority populations, women, Indian tribes, or persons 
with disability by virtue of their race, color, national origin, sex, 
age, disability, or marital or familial status. No major civil rights

[[Page 62477]]

impact is likely to result from this proposed rule.

Assistance Listing

    The programs affected by this regulation is listed in the 
Assistance Listing Catalog (formerly Catalog of Federal Domestic 
Assistance) under number 10.405--Farm Labor Housing Loans and Grants.

Non-Discrimination Statement Policy

    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, staff office; the 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 https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, 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 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: <a href="/cdn-cgi/l/email-protection#4434362b233625296a2d2a30252f2104313720256a232b32"><span class="__cf_email__" data-cfemail="bbcbc9d4dcc9dad695d2d5cfdad0defbcec8dfda95dcd4cd">[email protected]</span></a>.
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects in 7 CFR 3560

    Accounting, Administrative practice and procedure, Aged, Conflict 
of interest, Government property management, Grant programs--housing 
and community development, Insurance, Loan programs--agriculture, Loan 
programs--housing and community development, Low and moderate-income 
housing, Migrant labor, Mortgages, Nonprofit organizations, Public- 
housing, Rent-subsidies, Reporting and recordkeeping requirements, 
Rural areas.

    For the reasons set forth in the preamble, the Rural Housing 
Service proposes to amend 7 CFR part 3560 as follows:

PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS

0
1. The authority citation for part 3560 continues to read as follows:

    Authority: 42 U.S.C. 1480.

Subpart L--Off-Farm Labor Housing

0
2. Amend Sec.  3560.566 by revising paragraph (c) and adding paragraph 
(d) to read as follows:


Sec.  3560.566  Loan and grant rates and terms.

* * * * *
    (c) Term of grant agreement. The grant agreement will remain in 
effect for as long as there is a need for the housing, as determined by 
the Agency.
    (d) Grant Period of Performance. The grant period of performance is 
five (5) years, which starts on the date the grant agreement is 
executed by both the Agency and the grantee and ends five (5) years 
from the date the grant agreement was executed by both the Agency and 
the grantee.

Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2023-19662 Filed 9-11-23; 8:45 am]
BILLING CODE 3410-XV-P


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