73532 Federal Register / Vol. 88, No. 206 / Thursday, October 26, 2023 / Rules and Regulations 

determined no new requirement for 

information collection is associated 

with this final rule. 

F. International Compatibility and 

Cooperation 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, the FAA’s policy is to 

conform to International Civil Aviation 

Organization (ICAO) Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined no ICAO Standards and 

Recommended Practices correspond to 

this regulation. The FAA finds this 

action is fully consistent with the 

obligations under 49 U.S.C. 

40105(b)(1)(A) to ensure the FAA 

exercises its duties consistently with the 

obligations of the United States under 

international agreements. 

G. Environmental Analysis 

The FAA has analyzed this action 

under Executive Order 12114, 

Environmental Effects Abroad of Major 

Federal Actions, and DOT Order 

5610.1C, Paragraph 16. Executive Order 

12114 requires the FAA to be informed 

of environmental considerations and 

take those considerations into account 

when making decisions on major 

Federal actions that could have 

environmental impacts anywhere 

beyond the borders of the United States. 

The FAA has determined this action is 

exempt pursuant to Section 2–5(a)(i) of 

Executive Order 12114 because it does 

not have the potential for a significant 

effect on the environment outside the 

United States. 

In accordance with FAA Order 

1050.1F, Environmental Impacts: 

Policies and Procedures, paragraph 8– 

6(c), the FAA has prepared a 

memorandum for the record stating the 

reason(s) for this determination and has 

placed it in the docket for this 

rulemaking. 

V. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this rule under 

the principles and criteria of Executive 

Order 13132. The agency has 

determined this action will not have a 

substantial direct effect on the States, or 

the relationship between the Federal 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, this 

rule will not have federalism 

implications. 

B. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this rule under 

Executive Order 13211. The agency has 

determined it is not a ‘‘significant 

energy action’’ under the executive 

order and will not be likely to have a 

significant adverse effect on the supply, 

distribution, or use of energy. 

C. Executive Order 13609, Promoting 

International Regulatory Cooperation 

Executive Order 13609 promotes 

international regulatory cooperation to 

meet shared challenges involving 

health, safety, labor, security, 

environmental, and other issues and to 

reduce, eliminate, or prevent 

unnecessary differences in regulatory 

requirements. The FAA has analyzed 

this action under the policies and 

agency responsibilities of Executive 

Order 13609 and has determined that 

this action will have no effect on 

international regulatory cooperation. 

VI. Additional Information 

A. Electronic Access 

Except for classified and controlled 

unclassified material not authorized for 

public release, all documents the FAA 

considered in developing this rule, 

including economic analyses and 

technical reports, may be accessed from 

the internet through the docket for this 

rulemaking. 

Those documents may be viewed 

online at https://www.regulations.gov 

using the docket number listed above. A 

copy of this rule will be placed in the 

docket. Electronic retrieval help and 

guidelines are available on the website. 

It is available 24 hours each day, 365 

days each year. An electronic copy of 

this document may also be downloaded 

from the Office of the Federal Register’s 

website at https://

www.federalregister.gov and the 

Government Publishing Office’s website 

at https://www.govinfo.gov. A copy may 

also be found at the FAA’s Regulations 

and Policies website at https://

www.faa.gov/regulations_policies. 

Copies may also be obtained by 

sending a request to the Federal 

Aviation Administration, Office of 

Rulemaking, ARM–1, 800 Independence 

Avenue SW, Washington, DC 20591, or 

by calling (202) 267–9677. 

B. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

(SBREFA) (Pub. L. 104–121) (set forth as 

a note to 5 U.S.C. 601) requires the FAA 

to comply with small entity requests for 

information or advice about compliance 

with statutes and regulations within its 

jurisdiction. A small entity with 

questions regarding this document may 

contact its local FAA official, or the 

persons listed under the FOR FURTHER

INFORMATION CONTACT heading at the 

beginning of the preamble. To find out 

more about SBREFA on the internet, 

visit http://www.faa.gov/regulations_

policies/rulemaking/sbre_act/. 

List of Subjects in 14 CFR Part 91 

Air traffic control, Aircraft, Airmen, 

Airports, Aviation safety, Freight, 

Ukraine. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations, as follows: 

PART 91—GENERAL OPERATING AND 

FLIGHT RULES 

■ 1. The authority citation for part 91 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40101, 

40103, 40105, 40113, 40120, 44101, 44111, 

44701, 44704, 44709, 44711, 44712, 44715, 

44716, 44717, 44722, 46306, 46315, 46316, 

46504, 46506–46507, 47122, 47508, 47528– 

47531, 47534, Pub. L. 114–190, 130 Stat. 615 

(49 U.S.C. 44703 note); articles 12 and 29 of 

the Convention on International Civil 

Aviation (61 Stat. 1180), (126 Stat. 11). 

§ 91.1607 [Reserved] 

■ 2. Remove and reserve § 91.1607. 

Issued in Washington, DC, under the 

authority of 49 U.S.C. 106(f) and (g), 

40101(d)(1), 40105(b)(1)(A), and 44701(a)(5). 

Polly E. Trottenberg, 

Acting Administrator. 

[FR Doc. 2023–23656 Filed 10–25–23; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 570 

[FR–6411–N–01] 

Section 108 Loan Guarantee Program: 

Announcement of Fee To Cover Credit 

Subsidy Costs for FY 2024 

AGENCY: Office of the Assistant 

Secretary for Community Planning and 

Development, HUD. 

ACTION: Announcement of fee. 

SUMMARY: This document announces the 

fee that HUD will collect from 

borrowers of loans guaranteed under 

HUD’s Section 108 Loan Guarantee 

Program (Section 108 Program) to offset 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 88, No. 206 / Thursday, October 26, 2023 / Rules and Regulations 73533 

1 Division A, Title II of House Markup (https://

docs.house.gov/meetings/AP/AP00/20230718/ 

116260/BILLS-118--AP--AP00-FY24THUDFull

CommitteeMark.pdf), AND Title II of Senate Bill 

S.2437 of 118th Congress (https://

www.appropriations.senate.gov/imo/media/doc/ 

fy24_thud_bill_text.pdf) under the heading 

‘‘Community Development Loan Guarantees 

Program Account’’. 

2 80 FR 67634 (November 3, 2015), 81 FR 68297 

(October 4, 2016), 82 FR 44518 (September 25, 

2017), 83 FR 50257 (October 5, 2018), 84 FR 35299 

(July 23, 2019), 85 FR 52479 (August 26, 2020), 86 

FR 59302 (October 27, 2021), and 87 FR 53662 

(September 1, 2022) respectively. 

3U.S. Department of Housing and Urban 

Development, Study of HUD’s Section 108 Loan 

Guarantee Program, (prepared by Econometrica, 

Inc. and The Urban Institute), September 2012, at 

pp. 73–74. This fact has not changed since the 

issuance of this report. 

the credit subsidy costs of the 

guaranteed loans pursuant to 

commitments awarded in Fiscal Year 

2024 in the event HUD is required or 

authorized by statute to do so, 

notwithstanding subsection (m) of 

section 108 of the Housing and 

Community Development Act of 1974. 

DATES: Applicability Date: October 1, 

2023. 

FOR FURTHER INFORMATION CONTACT: Paul 

Webster, Director, Financial 

Management Division, Office of Block 

Grant Assistance, Office of Community 

Planning and Development, U.S. 

Department of Housing and Urban 

Development, 451 7th Street SW, Room 

7282, Washington, DC 20410; telephone 

number 202–402–4563 (this is not a tollfree 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/ 

telecommunications-relay-service-trs. 

FAX inquiries (but not comments) may 

be sent to Mr. Webster at 202–708–1798 

(this is not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Transportation, Housing and 

Urban Development, and Related 

Agencies Appropriations Act, 2015 

(division K of Pub. L. 113–235, 

approved December 16, 2014) (2015 

Appropriations Act) provided that ‘‘the 

Secretary shall collect fees from 

borrowers, notwithstanding subsection 

(m) of such section 108, to result in a 

credit subsidy cost of zero for 

guaranteeing . . .’’ Section 108 loans. 

Section 108(m) of the Housing and 

Community Development Act of 1974 

states that ‘‘No fee or charge may be 

imposed by the Secretary or any other 

Federal agency on or with respect to a 

guarantee made by the Secretary under 

this section after February 5, 1988.’’ 

Identical language was continued or 

included in the Department’s 

continuing resolutions and 

appropriations acts authorizing HUD to 

issue Section 108 loan guarantees 

during Fiscal Years (FYs) 2016, 2017, 

2018, 2019, 2020, 2021, 2022, and 2023. 

The Fiscal Year (FY) 2024 HUD 

appropriations bills under 

consideration 1 also have identical 

language suspending the prohibition 

against charging fees for loans issued 

with Section 108 guarantees after 

February 5, 1988, and requiring that the 

Secretary collect fees from borrowers to 

result in a credit subsidy cost of zero for 

the Section 108 Program. 

On November 3, 2015, HUD 

published a final rule (80 FR 67626) that 

amended the Section 108 Program 

regulations at 24 CFR part 570 to 

establish additional procedures, 

including procedures for announcing 

the amount of the fee each fiscal year 

when HUD is required to offset the 

credit subsidy costs to the Federal 

Government to guarantee Section 108 

loans. For FYs 2016, 2017, 2018, 2019, 

2020, 2021, 2022, and 2023 HUD 

published notifications to set the fees.2

II. FY 2024 Fee: 1.64 Percent of the 

Principal Amount of the Loan 

If authorized by statute, this 

document sets the fee for Section 108 

loan disbursements under loan 

guarantee commitments awarded for FY 

2024 at 1.64 percent of the principal 

amount of the loan. HUD will collect 

this fee from borrowers of loans 

guaranteed under the Section 108 

Program to offset the credit subsidy 

costs of the guaranteed loans pursuant 

to commitments awarded in FY 2024 if 

either of the FY 2024 HUD 

appropriations bill under consideration 

is enacted, or if HUD is otherwise 

required or authorized by statute to 

collect fees from borrowers to offset the 

credit subsidy costs of the guaranteed 

loans, notwithstanding subsection (m) 

of section 108 of the Housing and 

Community Development Act of 1974 

(42 U.S.C. 5308(m)). For this fee 

announcement, HUD is not changing the 

underlying assumptions or creating new 

considerations for borrowers. The 

calculation of the FY 2024 fee uses a 

similar calculation model as the FY 

2016, FY 2017, FY 2018, FY 2019, FY 

2020, FY 2021, FY 2022, and FY 2023 

fee notifications, but incorporates 

updated information regarding the 

composition of the Section 108 portfolio 

and the timing of the estimated future 

cash flows for defaults and recoveries. 

The calculation of the fee is also 

affected by the discount rates required 

to be used by HUD when calculating the 

present value of the future cash flows as 

part of the Federal budget process. 

As described in 24 CFR 570.712(b), 

HUD’s credit subsidy calculation is 

based on the amount required to reduce 

the credit subsidy cost to the Federal 

Government associated with making a 

Section 108 loan guarantee to the 

amount established by applicable 

appropriation acts. As a result, HUD’s 

credit subsidy cost calculations 

incorporated assumptions based on: (1) 

data on default frequency for municipal 

debt where such debt is comparable to 

loans in the Section 108 loan portfolio; 

(2) data on recovery rates on collateral 

security for comparable municipal debt; 

(3) the expected composition of the 

Section 108 portfolio by end users of the 

guaranteed loan funds (e.g., third-party 

borrowers and public entities); and (4) 

other factors that HUD determined were 

relevant to this calculation (e.g., 

assumptions as to loan disbursement 

and repayment patterns). 

Taking these factors into 

consideration, HUD determined that the 

fee for disbursements made under loan 

guarantee commitments awarded in FY 

2024 will be 1.64 percent, which will be 

applied only at the time of loan 

disbursements. Note that future 

notifications may provide for a 

combination of upfront and periodic 

fees for loan guarantee commitments 

awarded in future fiscal years but, if so, 

HUD will provide the public an 

opportunity to comment if appropriate 

under 24 CFR 570.712(b)(2). 

The expected cost of a Section 108 

loan guarantee is difficult to estimate 

using historical program data because 

there have been no defaults in the 

history of the program that required 

HUD to invoke its full faith and credit 

guarantee or use the credit subsidy 

reserved each year for future losses.3

This is due to a variety of factors, 

including the availability of Community 

Development Block Grant (CDBG) funds 

as security for HUD’s guarantee as 

provided in 24 CFR 570.705(b). As 

authorized by Section 108 of the 

Housing and Community Development 

Act of 1974, as amended (42 U.S.C. 

5308), borrowers may make payments 

on Section 108 loans using CDBG grant 

funds. Borrowers may also make Section 

108 loan payments from other 

anticipated sources but continue to have 

CDBG funds available should they 

encounter shortfalls in the anticipated 

repayment source. Despite the 


ddrumheller on DSK120RN23PROD with RULES1
73534 Federal Register / Vol. 88, No. 206 / Thursday, October 26, 2023 / Rules and Regulations 

program’s history of no defaults, Federal 

credit budgeting principles require that 

the availability of CDBG funds to repay 

the guaranteed loans cannot be assumed 

in the development of the credit subsidy 

cost estimate (see 80 FR 67629, 

November 3, 2015). Thus, the estimate 

must incorporate the risk that 

alternative sources are used to repay the 

guaranteed loan in lieu of CDBG funds, 

and that those sources may be 

insufficient. Based on the rate that 

CDBG funds are used annually for 

repayment of loan guarantees, HUD’s 

calculation of the credit subsidy cost 

must acknowledge the possibility of 

future defaults if those CDBG funds 

were not available. The fee of 1.64 

percent of the principal amount of the 

loan will offset the expected cost to the 

Federal Government due to default, 

financing costs, and other relevant 

factors. To arrive at this measure, HUD 

analyzed data on comparable municipal 

debt over an extended period. The 

estimated rate is based on the default 

and recovery rates for general purpose 

municipal debt and industrial 

development bonds. The cumulative 

default rates on industrial development 

bonds were higher than the default rates 

on general purpose municipal debt 

during the period from which the data 

were taken. These two subsectors of 

municipal debt were chosen because 

their purposes and loan terms most 

closely resemble those of Section 108 

guaranteed loans. 

In this regard, Section 108 guaranteed 

loans can be broken down into two 

categories: (1) loans that finance public 

infrastructure and activities to support 

subsidized housing (other than 

financing new construction) and (2) 

other development projects (e.g., retail, 

commercial, industrial). The 1.64 

percent fee was derived by weighting 

the default and recovery data for general 

purpose municipal debt and the data for 

industrial development bonds according 

to the expected composition of the 

Section 108 portfolio by corresponding 

project type. Based on the dollar amount 

of Section 108 loan guarantee 

commitments awarded from FY 2018 

through FY 2022, HUD expects that 58.4 

percent of the Section 108 portfolio will 

be similar to general purpose municipal 

debt and 41.6 percent of the portfolio 

will be similar to industrial 

development bonds. In setting the fee at 

1.64 percent of the principal amount of 

the guaranteed loan, HUD expects that 

the amount generated will fully offset 

the cost to the Federal Government 

associated with making guarantee 

commitments awarded in FY 2024. Note 

that the fee increased from 0.94 percent 

in FY 2023 to 1.64 percent in FY 2024, 

an increase of 0.70 percentage points in 

the level of fee charged. 

This document establishes a 

statutorily required fiscal requirement 

in the form of a fee based on rate and 

cost determinations that does not 

constitute a development decision that 

affects the physical condition of specific 

project areas or building sites. 

Accordingly, under 24 CFR 50.19(c)(6), 

this document is categorically excluded 

from environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

Marion M. McFadden, 

Principal Deputy Assistant Secretary for 

Community Planning and Development. 

[FR Doc. 2023–23665 Filed 10–25–23; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2023–0817] 

Special Local Regulations; Key West 

World Championship, Key West, FL 

AGENCY: Coast Guard, DHS. 

ACTION: Notification of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

a special local regulation for the Key 

West World Championship to provide 

for the safety of life on navigable 

waterways during this event. Our 

regulation for marine events within the 

Seventh Coast Guard District identifies 

the regulated area for this event in Key 

West, FL. During the enforcement 

period, no person or vessel may enter, 

transit through, anchor in, or remain 

within the regulated area without 

permission from the Captain of the Port 

Key West or a designated representative. 

DATES: The regulations in 33 CFR 

100.701 will be enforced from 10 a.m. 

until 7 p.m., on November 8, 10, and 12, 

2023, for the location identified in 

paragraph (b), Item 4 in table 1 to 

§ 100.701. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about this 

notification of enforcement, call or 

email Lieutenant Hailye Wilson, Sector 

Key West Waterways Management 

Division, Coast Guard; phone 305–292– 

8768, email Hailye.M.Wilson@uscg.mil. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce special local 

regulations in 33 CFR 100.701 for the 

Key West World Championship 

regulated area identified in table 1 to 

§ 100.701, paragraph (b), Item 4, from 10 

a.m. to 7 p.m. on November 8, 10, and 

12, 2023. This action is being taken to 

provide for the safety of life on 

navigable waterways during this 3-day 

event. Our regulation for recurring 

marine events, Sector Key West, 

§ 100.701, paragraph (b), Item 4, 

specifies the location of the regulated 

area for the Key West World 

Championship, which encompasses a 

portion of the Atlantic Ocean located 

southwest of Key West, Florida. During 

the enforcement period, as reflected in 

§ 100.701(c), all persons and vessels, 

except those persons and vessels 

participating in the high speed boat 

races, are prohibited from entering, 

transiting through, anchoring in, or 

remaining within the regulated area 

without obtaining permission from the 

Captain of the Port Key West or a 

designated representative. 

In addition to this notice of 

enforcement in the Federal Register, the 

Coast Guard plans to provide 

notification of this enforcement period 

via the Local Notice to Mariners, marine 

information broadcasts, or both. 

Jason Ingram, 

Captain, U.S. Coast Guard, Captain of the 

Port Key West. 

[FR Doc. 2023–23649 Filed 10–25–23; 8:45 am] 

BILLING CODE 9110–04–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 8 

[CG Docket No. 22–2; FCC 22–86; FR ID 

179821] 

Empowering Broadband Consumers 

Through Transparency 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: In this document, the 

Commission incorporates the 

compliance dates for the broadband 

consumer label rules per the Broadband 

Label Order. The rules require 

broadband internet access service 

providers to display, at the point of sale, 

labels that disclose certain information 

about broadband prices, introductory 

rates, data allowances, and broadband 

speeds, and to include links to 

information about their network 

management practices, privacy policies, 

and the Commission’s Affordable 

Connectivity Program. 

DATES: Effective date: October 26, 2023. 


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