75230 Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Rules and Regulations 

currently 14 active coral nursery sites 

throughout the Florida Keys. These 

nursery sites are strategically located in 

close proximity to the sites where the 

nursery coral will be outplanted to 

promote coral restoration. Active coral 

restoration in the Florida Keys is 

necessary to facilitate coral restoration, 

as in the last 40 years, healthy coral 

cover in the Florida Keys reefs has 

declined by more than 90 percent. 

During the initial 60-day period of 

this emergency rule, NOAA and 

restoration partners identified deep 

water locations to temporarily relocate 

coral nursery stock. These deep water 

locations had temperatures below the 

bleaching threshold, are not exposed to 

deleterious levels of Ultraviolet (UV) 

radiation and experience substantial 

water movement, all conditions more 

conducive to coral survival. A portion of 

the most valuable corals, including 

representative colonies of each species 

of boulder and branching corals, 

samples of elkhorn coral, staghorn coral, 

star corals (Orbicella spp.), pillar corals 

and cactus coral listed under the 

Endangered Species Act, as well as 

multiple representative genotypes of 

these corals to ensure we protect the 

genetic diversity of these species, were 

relocated to deeper water sites within 

FKNMS Federal waters. Temperature 

meters at these deep sites have 

consistently shown readings below the 

bleaching threshold of 30.5 °C. 

This extension of NOAA’s emergency 

action maintains the offshore temporary 

special use area to continue to limit the 

potential for physical impact to this 

sensitive coral nursery stock while it is 

being fully relocated back to the original 

inshore permitted nursery site. These 

sensitive corals are being grown to 

support critical sanctuary restoration 

efforts and could be impacted from 

anchoring, unintentional fouling of 

fishing gear, and bottom tending fishing 

gear including traps. The protections 

afforded by maintaining this special use 

area need to be in place to avoid further 

damage to these sensitive nursery corals 

that have already experienced impact 

from heat stress. As such, a 60-day 

extension of this special use area is 

necessary to prevent or minimize the 

destruction of, loss of, or injury to 

Sanctuary resources. 

Emergency Measures 

The 60-day extension of this final 

temporary rule continues the 

applicability of one special use area, 

approximately 0.07 square miles in size, 

into which all entry will be prohibited 

except for conducting restoration 

activities under a valid ONMS permit, 

continuous transit without interruption, 

and law enforcement purposes. This 

special use area was created and to be 

effective for 60 days from September 6, 

2023, until November 6, 2023. This 

action extends the temporary special 

use area for an additional 60 days, until 

January 5, 2024. 

The coordinates for this temporary 

special use area are included in 

appendix VI to subpart P of part 922 and 

in the September 6, 2023, Federal 

Register rule (88 FR 60887). 

Location and Boundary 

Effective from September 6, 2023, 

through January 5, 2024, all entry except 

for conducting restoration activities 

under a valid ONMS permit, continuous 

transit without interruption, and law 

enforcement purposes is prohibited 

within this temporary special use area 

which is approximately five miles 

southeast of the community of 

Tavernier, on the island of Key Largo. 

The boundary for the special use area 

begins at Point 1 in the coordinates in 

appendix VI to subpart P of part 922 and 

continues to each subsequent point in 

numerical order ending at Point 5. 

(Coordinates are unprojected 

(Geographic) and based on the North 

American Datum of 1983). 

Penalties 

Pursuant to 16 U.S.C. 1437(d)(1) and 

15 CFR 922.8(a), any person who 

violates this rule is subject to a civil 

penalty. The maximum civil monetary 

penalty authorized under the National 

Marine Sanctuaries Act (NMSA) has 

been adjusted for inflation over time 

and is currently $210,161 per violation 

per day. See 15 CFR 6.3(f)(13). 

Furthermore, NMSA also authorizes a 

proceeding in rem against any vessel 

used in violation of this regulation. See 

16 U.S.C. 1437(d)(3). 

Classification 

A. National Marine Sanctuaries Act 

This action is issued pursuant to the 

National Marine Sanctuaries Act, 16 

U.S.C. 1431 et seq. and implementing 

regulations at 15 CFR part 922. This 

action is being taken pursuant to the 

emergency provision of the Florida Keys 

National Marine Sanctuary regulations 

at 15 CFR 922.164(e) and 922.165. 

B. Administrative Procedure Act 

In the final temporary rule, 88 FR 

60887, the Assistant Administrator of 

the National Ocean Service, NOAA, 

found good cause to waive notice and 

public comment pursuant to 5 U.S.C. 

553(b)(3)(B) and make the rule 

immediately effective under 5 U.S.C. 

553(d)(3), as it would be impracticable 

and contrary to the public interest to 

delay taking the emergency measure to 

protect corals that were being relocated 

due to heat stress to deeper, cooler 

waters. The final temporary rule 

authorized one 60-day extension of the 

special use area, which we hereby 

invoke in this document. 

Authority: 16 U.S.C. 1431 et seq. 

Nicole R. LeBoeuf, 

Assistant Administrator for Ocean Services 

and Coastal Zone Management, National 

Ocean Service, National Oceanic and 

Atmospheric Administration. 

[FR Doc. 2023–24194 Filed 11–1–23; 8:45 am] 

BILLING CODE 3510–NK–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 891 

[Docket No. FR–6385–F–01] 

RIN 2502–AJ71 

Section 202 Direct Loan Technical 

Amendments 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, Department of Housing 

and Urban Development (HUD). 

ACTION: Final rule. 

SUMMARY: This final rule implements 

technical amendments to HUD’s 

program regulations governing Section 

202 Direct Loans for Housing for the 

Elderly and Persons with Disabilities 

(‘‘Section 202 Direct Loan’’), including 

the Section 202 Projects for the Elderly 

or Handicapped—Section 8 Assistance 

(‘‘202/8’’) and the Section 202 

Assistance for Nonelderly Handicapped 

Families and Individuals—Section 162 

Assistance (‘‘202/162’’) programs. The 

amendments are necessary to conform 

the Section 202 Direct Loan program 

regulations with HUD’s final rule 

implementing sections 102, 103, and 

104 of the Housing Opportunity 

Through Modernization Act of 2016 

(HOTMA). This final rule also corrects 

outdated cross references in the Section 

202 Direct Loan program regulations 

and updates the list of protected classes 

applicable to affirmative marketing 

requirements for the Section 202/8 and 

Section 202/162 programs. 

DATES: Effective Date: January 1, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Lavorel, Director, Program 

Administration Office, Office of Asset 

Management and Portfolio Oversight, 

Office of Multifamily Housing, 

Department of Housing and Urban 

Development, 451 7th Street SW, Room 

6180, Washington, DC 20410–0500, 


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Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Rules and Regulations 75231 

telephone number 202–402–2515 (this 

is not a toll-free number). HUD 

welcomes and is prepared to receive 

calls from individuals who are deaf or 

hard of hearing, as well as individuals 

with speech or communication 

disabilities. To learn more about how to 

make an accessible telephone call, 

please visit https://www.fcc.gov/ 

consumers/guides/telecommunicationsrelay-service-trs. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Enacted on July 29, 2016, HOTMA 

(Pub. L. 114–201, 130 Stat. 782) 

contains 14 sections that affect the 

public housing and Section 8 rental 

assistance programs. Sections 102, 103, 

and 104 of HOTMA make sweeping 

changes to the United States Housing 

Act of 1937, particularly to those 

sections affecting income calculations 

and reviews. On February 14, 2023, 

HUD a published a final rule entitled 

‘‘Housing Opportunity Through 

Modernization Act of 2016: 

Implementation of Sections 102, 103, 

and 104’’ (88 FR 9600) (‘‘HOTMA final 

rule’’), which amended HUD regulations 

to implement these three sections of 

HOTMA. In addition to amending the 

regulations governing HUD’s public 

housing and Section 8 programs, the 

HOTMA final rule revised the program 

regulations for several other HUD 

programs, including the Supportive 

Housing for the Elderly (Section 202) 

and Supportive Housing for Persons 

with Disabilities (Section 811) Capital 

Advance programs. HUD revised the 

regulations for these programs in the 

interest of aligning the HOTMA final 

rule’s requirements across programs. 

Pursuant to the Cranston-Gonzalez 

National Affordable Housing Act of 

1990, Public Law 86–372, Congress 

repealed the Section 202 Direct Loan 

program and created the Section 202 

and Section 811 Capital Advance 

programs. However, there are projects 

still operating under Direct Loan 

program requirements, including the 

Section 202/8 and the Section 202/162 

programs. Certain regulations applicable 

to the Direct Loan program and 

regulations specific to the 202/8 and 

202/162 programs were revised by the 

HOTMA final rule but other regulations 

were inadvertently excluded. 

Accordingly, this final rule revises 

certain regulations applicable to the 

Direct Loan program (including those 

governing the 202/8 and 202/162 

programs) to conform them with other 

Direct Loan program regulations as 

amended by the HOTMA final rule. 

This final rule also makes technical 

corrections to replace outdated cross 

references in these program regulations 

consistent with a final rule that took 

effect on November 18, 1996 (61 FR 

54492), in which HUD removed 24 CFR 

part 813, and updates the list of 

protected classes applicable to 

affirmative marketing requirements for 

the Section 202/8 and Section 202/162 

programs. 

II. Changes Made in This Final Rule 

The following is an overview of the 

changes made to 24 CFR part 891 in this 

final rule. 

§ 891.510 Displacement, Relocation, 

and Real Property Acquisition 

This final rule revises 

§ 891.510(f)(1)(iii)(A)(2) by replacing the 

outdated cross reference to ‘‘24 CFR 

813.107’’ with a cross reference to ‘‘24 

CFR 5.628.’’ 

§ 891.520 Definitions Applicable to 

202/8 Projects 

This final rule revises the definition 

of ‘‘Family (eligible family)’’ in 

§ 891.520 by replacing the outdated 

cross reference to ‘‘part 813 of this 

chapter’’ with a cross reference to ‘‘24 

CFR 5.403.’’ 

§ 891.575 Leasing to Eligible Families 

This final rule revises § 891.575(a)(2) 

by replacing the outdated cross 

reference to ‘‘part 813 of this chapter’’ 

with a cross reference to ‘‘24 CFR 

5.653.’’ 

§ 891.655 Definitions 

This final rule revises the definitions 

of ‘‘annual income,’’ ‘‘family,’’ ‘‘tenant 

rent,’’ and ‘‘total tenant payment’’ in 

§ 891.655 to be consistent with the 

definitions implemented by the 

HOTMA final rule for the Section 202 

and Section 811 programs and to 

remove outdated cross references to 

‘‘part 813 of this chapter’’. Specifically, 

the HOTMA final rule revised the 

definitions of ‘‘annual income’’ in 

§ 5.609 and ‘‘total tenant payment’’ in 

§ 5.628. It also added the definition of 

‘‘tenant rent’’ to § 891.105. This rule 

incorporates these revised definitions in 

§ 891.655. For consistency with prior 

HUD rulemakings, this final rule also 

revises the definitions of ‘‘family,’’ 

‘‘utility allowance,’’ and ‘‘utility 

reimbursement’’ in § 891.655 by 

replacing outdated cross references to 

‘‘part 813 of this chapter’’. 

This final rule also removes the 

definition of ‘‘rent’’ in § 891.655, as the 

reference to § 891.505 is incorrect 

(‘‘rent’’ is no longer defined in 

§ 891.505). This revision is consistent 

with the HOTMA final rule, which 

updated definitions for the Section 202 

and Section 811 program regulations in 

part 891. 

§ 891.720 Leasing to Eligible Families 

This final rule revises § 891.720(a)(3) 

to replace the outdated cross reference 

to ‘‘part 813 of this chapter’’ with a 

cross reference to ‘‘part 5, subpart F of 

this title’’. 

§ 891.740 Responsibilities of Borrower 

This final rule revises the last 

sentence of § 891.740(a)(2) by removing 

the word ‘‘creed’’, adding the 

parenthetical phrase ‘‘including actual 

or perceived sexual orientation and 

gender identity’’ following the term 

‘‘sex,’’ and adding ‘‘disability’’ and 

‘‘familial status,’’ to read: ‘‘The purpose 

of the plan and requirements is to 

achieve a condition in which eligible 

families of similar income levels in the 

same housing market have a like range 

of housing choices available to them 

regardless of their race, color, religion, 

sex (including actual or perceived 

sexual orientation and gender identity), 

disability, familial status, or national 

origin.’’ This language is consistent with 

existing civil rights authorities 

applicable to HUD programs and the 

HOTMA final rule. 

§ 891.750 Selection and Admission of 

Tenants 

The final rule revises 891.750 by 

replacing an outdated cross reference to 

‘‘§ 813.102 of this chapter’’ with a cross 

reference to part 5, subpart F of this 

title, as modified by 24 CFR 891.505. 

These revisions are consistent with the 

HOTMA final rule. 

Although the 202 Direct Loan 

program uses the term ‘handicapped,’ 

the term ‘disability’ is more commonly 

used and accepted today to refer to 

physical or mental impairments. For 

this reason, this rule uses the term 

‘disabilities’ wherever possible. 

However, corresponding changes to 

HUD’s regulations are not feasible via 

this final rule, given the limited nature 

of the technical amendments being 

made. HUD anticipates future changes 

that will address this issue throughout 

its regulations in title 24 of the Code of 

Federal Regulations. Further, this final 

rule revises the last sentence in 

§ 891.750(b)(3) by removing the word 

‘‘creed’’ and adds the parenthetical 

phrase, ‘‘including actual or perceived 

sexual orientation and gender identity,’’ 

following the term ‘‘sex,’’ substitutes 

‘‘disability’’ for ‘‘handicap’’ and adds 

‘‘familial status.’’ This language is 

consistent with existing civil rights 

authorities applicable to HUD programs 

and the HOTMA final rule. 


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75232 Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Rules and Regulations 

1See the HOTMA final rule’s revisions to 

§ 891.610(g)(1), (2), and (3)(i), 88 FR 9669. 

2 ‘‘. . . it is impossible to discriminate against a 

person for being homosexual or transgender 

without discriminating against that individual 

based on sex.’’ Bostock v. Clayton County, Georgia, 

590 U.S.ll (2020), 140 S.Ct. 1731, 1742 (2020). 

Finally, this final rule revises 

§ 891.750(c) by replacing the existing 

paragraph (c) with revised text on 

regular reexaminations that aligns with 

the Section 202 and Section 811 

program regulations as amended by the 

HOTMA final rule.1

III. Justification for Final Rulemaking 

In general, HUD publishes a rule for 

public comment before issuing a rule for 

effect, in accordance with HUD’s 

regulations on rulemaking at 24 CFR 

part 10. However, part 10 provides for 

exceptions to the general rule where 

HUD finds that public comment would 

be ‘‘impracticable, unnecessary or 

contrary to the public interest’’ (see 24 

CFR 10.1). 

HUD finds that good cause exists to 

publish this final rule for effect without 

first soliciting public comment. Section 

102 of HOTMA amends the 1937 Act to 

revise the frequency of family income 

reviews and calculations of income in 

HUD’s public housing, Section 8 

Moderate Rehabilitation, Section 8 

Moderate Rehabilitation Single Room 

Occupancy (SRO), Section 8 ProjectBased Rental Assistance (PBRA), 202/8, 

202/162 Project Assistance Contract 

(202/162 PAC), Section 202/811 Capital 

Advance with Project Rental Assistance 

Contract (202/811 PRAC), Section 811 

Project Rental Assistance Demonstration 

(811 PRA), Senior Preservation Rental 

Assistance Contracts (SPRAC), and noninsured 236 projects with Interest 

Reduction Payments programs. Section 

104 of HOTMA amends the 1937 Act to 

set limits on the assets that families 

residing in public housing and families 

receiving assistance under Section 8 

may own. These HOTMA changes 

impact the Section 202 Direct Loan 

program, including the Section 202/8 

and 202/162 program. As explained in 

the Background section of this 

preamble, Congress repealed the Direct 

Loan program, but there are projects still 

operating under Direct Loan program 

requirements, including the Section 

202/8 and the Section 202/162 

programs. Certain regulations applicable 

to the Direct Loan program and 

regulations specific to the 202/8 and 

202/162 programs were included in the 

HOTMA final rule but other regulations 

were inadvertently excluded. Because of 

the similarity in functional roles and 

responsibilities to the HCV program and 

Section 202 programs, HUD believes 

that the public comments submitted in 

response to HUD’s HOTMA proposed 

rule published on September 17, 2019 

(84 FR 48820), on these topics, and 

HUD’s responses to public comments in 

HUD’s HOTMA final rule, which 

applied part 5 regulations to Section 202 

programs, provide HUD with a solid 

basis to make conforming changes to its 

Section Direct Loan program 

regulations. In this regard, the interests 

of the parties most affected by HUD’s 

conforming changes—owners and 

program participants—are substantially 

identical to the parties impacted by the 

changes made by HUD’s HOTMA 

rulemakings. Finally, the purpose of this 

final rule is to conform the Section 202 

Direct Loan program regulations with 

Section 202 and 811 program 

regulations as amended by HUD’s 

HOTMA final rule. Most of the HOTMA 

income changes impacting the Section 

202 Direct Loan program were 

implemented by revisions to 24 CFR 

part 5 through the HOTMA final rule. 

The ability to use these part 5 changes 

in accordance with other interrelated 

HOTMA Section 102 and 104 

requirements would be hindered 

without conforming changes to part 891. 

The changes being made in this final 

rule are necessary also to update the list 

of protected classes applicable to 

affirmative marketing requirements for 

the Section 202/8 and Section 202/162 

programs, aligning these regulations 

with current protected classes under the 

Fair Housing Act (42 U.S.C 3601 et seq.) 

as well as providing consistency across 

part 891. The affirmative marketing 

requirements in §§ 891.400 and 891.600 

reflect current law by requiring that all 

similarly situated eligible households 

have a like range of housing choices 

available to them regardless of ‘‘race, 

color, creed, religion, familial status, 

disability, sex, or national origin.’’ 

However, the affirmative marketing 

provision within § 891.740 lists only 

‘‘race, color, creed, religion, sex, or 

national origin.’’ This language is not in 

alignment with current law. As such, 

this final rule updates the language to 

include all protected classes applicable 

to affirmative marketing requirements 

for the Section 202/162 program, 

consistent with requirements across part 

891. Further, in the time since these 

regulations have last been updated, 

there has been clarification regarding 

the inclusivity of ‘sex’ as a federally 

protected class.2 Therefore, this final 

rule also makes changes that clarify 

what is meant by ‘sex’ regarding 

protected classes for affirmative 

marketing purposes. 

As a result, this final rule makes 

conforming changes to HUD’s Section 

202 Direct Loan program regulations. 

Soliciting public comment on this rule 

is unnecessary because public comment 

was sought as part of the rulemaking 

leading to publication of the HOTMA 

final rule. This final rule aligns Section 

202 Direct Loan program regulations 

with the HOTMA final rule; and it 

revises and replaces outdated cross 

references, consistent with HUD’s prior 

rulemakings. 

IV. Findings and Certifications 

Regulatory Review—Executive Orders 

12866, 13563, and 14094 

Under Executive Order 12866 

(Regulatory Planning and Review), a 

determination must be made whether a 

regulatory action is significant and, 

therefore, subject to review by the Office 

of Management and Budget (OMB) in 

accordance with the requirements of the 

order. Executive Order 13563 

(Improving Regulations and Regulatory 

Review) directs executive agencies to 

analyze regulations that are ‘‘outmoded, 

ineffective, insufficient, or excessively 

burdensome, and to modify, streamline, 

expand, or repeal them in accordance 

with what has been learned.’’ Executive 

Order 13563 also directs that, where 

relevant, feasible, and consistent with 

regulatory objectives, and to the extent 

permitted by law, agencies are to 

identify and consider regulatory 

approaches that reduce burdens and 

maintain flexibility and freedom of 

choice for the public Executive Order 

14094 entitled ‘‘Modernizing Regulatory 

Review’’ (hereinafter referred to as the 

‘‘Modernizing E.O.’’) amends section 

3(f) of Executive Order 12866 

(Regulatory Planning and Review), 

among other things. In this final rule, 

HUD is making conforming changes to 

Section 202 Direct Loan program 

regulations to align them with HUD’s 

HOTMA final rule and to replace 

outdated cross references and 

terminology consistent with prior HUD 

rulemakings. These changes are 

technical in nature; HUD is not 

introducing any new regulatory changes 

or rationales that differ in substance 

from those in prior rulemakings. This 

rule was not subject to OMB review. 

This rule is not a ‘‘significant regulatory 

action’’ as defined in Section 3(f) of 

Executive Order 12866 and is not an 

economically significant regulatory 

action. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.), generally requires 

an agency to conduct a regulatory 


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Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Rules and Regulations 75233 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. As in HUD’s 

HOTMA final rule, this final rule revises 

HUD’s Section 202 Direct Loan program 

regulations in a manner that will reduce 

burden or provide flexibility for 

Borrowers and assisted families, 

including by providing more specific 

events that trigger an interim 

reexamination of family income, 

whereas current regulations provide that 

families may request reexaminations at 

any time. Additionally, HUD is making 

conforming changes to Section 202 

Direct Loan program regulations to align 

them with HUD’s HOTMA final rule 

and to replace outdated cross references 

and terminology consistent with prior 

HUD rulemakings. These amendments 

impose no significant economic impact 

on a substantial number of small 

entities. Therefore, the undersigned 

certifies that this rule will not have a 

significant impact on a substantial 

number of small entities. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either imposes 

substantial direct compliance costs on 

state and local governments and is not 

required by statute, or the rule preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive order. This 

final rule does not have federalism 

implications and does not impose 

substantial direct compliance costs on 

state and local governments or preempt 

state law within the meaning of the 

Executive order. 

Environmental Impact 

The final rule relates to establishment 

and review of income limits and 

exclusions with regard to eligibility for 

or calculation of HUD housing 

assistance or rental assistance and 

related external administrative or fiscal 

requirements and procedures that do 

not constitute a development decision 

that affects the physical condition of 

specific project areas or building sites. 

The final rule also updates provisions 

that set out fair housing or 

nondiscrimination standards. 

Accordingly, under 24 CFR 50.19(c)(3) 

and (c)(6), this final rule is categorically 

excluded from environmental review 

under the National Environmental 

Policy Act of 1969 (42 U.S.C. 4321). 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531– 

1538) (UMRA) establishes requirements 

for federal agencies to assess the effects 

of their regulatory actions on state, 

local, and Tribal Governments and the 

private sector. This rule does not 

impose any Federal mandates on any 

state, local, or Tribal Governments or 

the private sector within the meaning of 

the UMRA. 

List of Subjects in 24 CFR Part 891 

Aged, Grant programs—housing and 

community development, Individuals 

with disabilities, Loan programs— 

housing and community development, 

Low and moderate income housing, 

Public assistance programs, Rent 

subsidies, Reporting and recordkeeping 

requirements. 

Accordingly, for the reasons stated in 

the preamble, HUD amends 24 CFR part 

891 as follows: 

PART 891—SUPPORTIVE HOUSING 

FOR THE ELDERLY AND PERSONS 

WITH DISABILITIES 

■ 1. The authority for 24 CFR part 891 

continues to read as follows: 

Authority: 12 U.S.C. 1701q; 42 U.S.C. 

1437f, 3535(d), and 8013. 

§ 891.510 [Amended] 

■ 2. Amend § 891.510(f)(1)(iii)(A)(2) by 

removing ‘‘24 CFR 813.107’’ and adding 

in its place ‘‘24 CFR 5.628’’. 

§ 891.520 [Amended] 

■ 3. Amend the definition of ‘‘Family 

(eligible family)’’ in § 891.520 by 

removing ‘‘part 813 of this chapter’’ and 

adding in its place ‘‘24 CFR 5.403’’. 

§ 891.575 [Amended] 

■ 4. Amend § 891.575(a)(2) by removing 

‘‘part 813 of this chapter’’ and adding in 

its place ‘‘24 CFR 5.653’’. 

§ 891.655 Definitions applicable to 202/162 

projects. 

■ 5. Amend § 891.655 by: 

■ a. Removing the definition of ‘‘rent’’; 

and 

■ b. Revising the definitions of ‘‘annual 

income,’’ ‘‘family (eligible family),’’ 

‘‘tenant rent,’’ ‘‘total tenant payment,’’ 

‘‘utility allowance,’’ and ‘‘utility 

reimbursement’’ to read as follows: 

Annual income is defined in part 5, 

subpart F of this title. In the case of an 

individual residing in an intermediate 

care facility for individuals with a 

developmental disability that is assisted 

under Title XIX of the Social Security 

Act and subpart E of this part, the 

annual income of the individual shall 

exclude protected personal income as 

provided under that Act. For purposes 

of determining the total tenant payment, 

the income of such individuals shall be 

imputed to be the amount that the 

family would receive if assisted under 

Title XVI of the Social Security Act. 

* * * * * 

Family (eligible family) means a 

family that includes a person with a 

disability (that meets the definition of a 

handicapped family in § 891.505) that 

meets the project occupancy 

requirements approved by HUD and, if 

the family occupies an assisted unit, 

meets the low-income requirements 

described in 24 CFR 5.603, as modified 

by the definition of ‘‘annual income’’ in 

this section. 

* * * * * 

Tenant rent equals total tenant 

payment less utility allowance, if any. 

Total tenant payment means the 

monthly amount defined in, and 

determined in accordance with part 5, 

subpart F of this title. 

Utility allowance is defined in part 5, 

subpart F of this title and is determined 

or approved by HUD. 

Utility reimbursement is defined in 

part 5, subpart F of this title. 

* * * * * 

■ 6. Amend § 891.720 by revising 

paragraph (a)(3) to read as follows: 

§ 891.720 Leasing to eligible families. 

(a) * * * 

(3) Has not rejected any such 

applicant family except for reasons 

acceptable to HUD. If the Borrower is 

temporarily unable to lease all units or 

residential spaces to eligible families, 

one or more units or residential spaces 

may, with the prior approval of HUD, be 

leased to otherwise eligible families that 

do not meet the income requirements of 

part 5, subpart F of this title. Failure on 

the part of the Borrower to comply with 

these requirements is a violation of the 

PAC and grounds for all available legal 

remedies, including an action for 

specific performance of the PAC, 

suspension or debarment from HUD 

programs, and reduction of the number 

of units (or in the case of group homes, 

reduction of the number of residential 

spaces) under the PAC as set forth in 

paragraph (b) of this section. 

* * * * * 

■ 7. Amend § 891.740 by revising 

paragraph (a)(2) to read as follows: 

§ 891.740 Responsibilities of Borrower. 

(a) * * * 

(2) Marketing must be done in 

accordance with the HUD-approved 

affirmative fair housing marketing plan 


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75234 Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Rules and Regulations 

and all fair housing and equal 

opportunity requirements. The purpose 

of the plan and requirements is to 

achieve a condition in which eligible 

families of similar income levels in the 

same housing market have a like range 

of housing choices available to them 

regardless of their race, color, religion, 

sex (including actual or perceived 

sexual orientation and gender identity), 

disability, familial status, or national 

origin. 

* * * * * 

■ 8. In § 891.750, revise the introductory 

text of paragraph (b) and paragraphs 

(b)(3), (c)(1), (2), and (3)(i) to read as 

follows: 

§ 891.750 Selection and admission of 

tenants. 

* * * * * 

(b) Determination of eligibility and 

selection of tenants. The Borrower is 

responsible for determining whether 

applicants are eligible for admission and 

for the selection of families. To be 

eligible for admission, an applicant 

family must be a family that includes a 

person with a disability (that meets the 

definition of ‘‘handicapped family’’ in 

24 CFR 891.505); meet any project 

occupancy requirements approved by 

HUD; meet the disclosure and 

verification requirements for Social 

Security Numbers, as provided by 24 

CFR part 5, subpart B; and be a lowincome family, as defined in part 5, 

subpart F of this title, as modified by 24 

CFR 891.505. Under certain 

circumstances, HUD may permit the 

leasing of units (or residential space in 

a group home) to ineligible families 

under § 891.720. 

* * * * * 

(3) If the Borrower determines that an 

applicant is ineligible for admission or 

the Borrower is not selecting the 

applicant for other reasons, the 

Borrower will promptly notify the 

applicant in writing of the 

determination, the reasons for the 

determination, and that the applicant 

has a right to request a meeting to 

review the rejection, in accordance with 

HUD requirements. The review, if 

requested, may not be conducted by the 

member of the Borrower’s staff who 

made the initial decision to reject the 

applicant. The applicant may also 

exercise other rights, including filing a 

complaint with HUD’s Office of Fair 

Housing and Equal Opportunity, if the 

applicant believes the applicant is being 

discriminated against on the basis of 

race, color, religion, sex (including 

actual or perceived sexual orientation 

and gender identity), disability, familial 

status, or national origin. 

* * * * * 

(c) * * * 

(1) Regular reexaminations. If the 

family occupies an assisted unit (or 

residential space in a group home), the 

Borrower must reexamine the income 

and composition of the family at least 

every 12 months. Upon verification of 

the information, the Borrower shall 

make appropriate adjustments in the 

total tenant payment in accordance with 

§ 5.657 of this title and must adjust the 

rent. The Borrower must also request an 

appropriate adjustment to the project 

assistance payment. Further, the 

Borrower must determine whether the 

family’s unit size is still appropriate and 

must carry out any unit transfer in 

accordance with HUD standards. At the 

time of reexamination, the Borrower 

must require the family to meet the 

disclosure and verification requirements 

for Social Security Numbers, as 

provided by 24 CFR part 5, subpart B. 

For requirements regarding the signing 

and submitting of consent forms by 

families for obtaining wage and claim 

information from State Wage 

Information Collection Agencies, see 24 

CFR part 5, subpart B. 

(2) Interim reexamination. If the 

family occupies an assisted unit (or 

residential space in a group home) the 

family must comply with the provisions 

in § 5.657 of this title regarding interim 

reporting of changes in income. If the 

Borrower receives information 

concerning a change in the family’s 

income or other circumstances between 

regularly scheduled reexaminations, the 

Borrower must consult with the family 

and make any adjustments determined 

to be appropriate. See 24 CFR part 5, 

subpart B, for the requirements for the 

disclosure and verification of Social 

Security Number at interim 

reexaminations involving new 

household members. For requirements 

regarding the signing and submitting of 

consent forms by families for obtaining 

wage and claim information from State 

Wage Information Collection agencies, 

see 24 CFR part 5, subpart B. Any 

change in the family’s income or other 

circumstances that result in an 

adjustment in the total tenant payment, 

tenant rent, or project assistance 

payment must be verified. 

(3) * * * 

(i) A family occupying an assisted 

unit (or residential space in a group 

home) shall remain eligible for project 

assistance payments until the total 

tenant payment equals or exceeds the 

gross rent (or a pro rata share of the 

gross rent in a group home). The 

termination of subsidy eligibility will 

not affect the family’s other rights under 

its lease. Project assistance payments 

may be resumed if, as a result of 

changes in income, rent, or other 

relevant circumstances during the term 

of the PAC, the family meets the income 

eligibility requirements of § 5.657 of this 

title (as modified in § 891.105) and 

project assistance is available for the 

unit or residential space under the terms 

of the PAC. The family will not be 

required to establish its eligibility for 

admission to the project under the 

remaining requirements of paragraph (b) 

of this section. 

* * * * * 

Julia R. Gordon, 

Assistant Secretary for Housing—FHA 

Commissioner. 

[FR Doc. 2023–24236 Filed 11–1–23; 8:45 am] 

BILLING CODE 4210–67–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2017–0760, EPA–R09– 

OAR–2020–0476, and EPA–R09–OAR–2021– 

0176; FRL–11409–01–R9] 

Air Plan Revisions; California; 

Antelope Valley Air Quality 

Management District; Imperial County 

Air Pollution Control District; 

Correcting Amendments 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule; correcting 

amendments. 

SUMMARY: The Environmental Protection 

Agency (EPA) is taking final action to 

correct sections in the Code of Federal 

Regulations (CFR), erroneously caused 

by administrative oversight, to reflect 

the current status of conditional 

approval provisions in the California 

State Implementation Plan (SIP). These 

corrections concern Antelope Valley Air 

Quality Management District’s 

(AVAQMD’s) reasonably available 

control technology (RACT) SIP 

demonstration requirements for the 

1997 and 2008 8-hour ozone National 

Ambient Air Quality Standards 

(NAAQS) and Imperial County Air 

Pollution Control District’s (ICAPCD’s) 

RACT SIP demonstration requirements 

for the 2008 8-hour ozone NAAQS. 

DATES: These correcting amendments 

are effective on November 2, 2023. 

ADDRESSES: The EPA has established 

dockets for this action under Docket ID 

No. EPA–R09–OAR–2017–0760, EPA– 

R09–OAR–2020–0476, and EPA–R09– 


khammond on DSKJM1Z7X2PROD with RULES