This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

9331 

Vol. 81, No. 37 

Thursday, February 25, 2016 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2015–3659; Directorate 

Identifier 2014–SW–050–AD; Amendment 

39–18409; AD 2016–04–15] 

RIN 2120–AA64 

Airworthiness Directives; MD 

Helicopters Inc., Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for MD 

Helicopters, Inc. (MDHI), Model 369A, 

369D, 369E, 369FF, 369HE, 369HM, 

369HS, 500N, and 600N helicopters 

with a certain part-numbered main rotor 

blade attach pin (pin) installed. This AD 

requires ensuring the life limit of the 

pin as listed in the Airworthiness 

Limitations section of aircraft 

maintenance records and Instructions 

for Continued Airworthiness (ICA). If 

the hours time-in-service (TIS) of a pin 

is unknown, or if a pin has exceeded its 

life limit, this AD requires removing the 

affected pin from service. This AD was 

prompted by a report from an operator 

who purchased pins that did not have 

life limit documentation. These actions 

are intended to document the life limit 

to prevent a pin remaining in service 

beyond its fatigue life, which could 

result in failure of a pin, failure of a 

main rotor blade, and subsequent loss of 

control of the helicopter. 

DATES: This AD is effective March 31, 

2016. 

ADDRESSES: For service information 

identified in this final rule, contact 

Aerometals, 3920 Sandstone Dr., El 

Dorado Hills, CA 95762, telephone (916) 

939–6888, fax (916) 939–6555, 

www.aerometals.aero. You may review 

a copy of the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 

10101 Hillwood Pkwy, Room 6N–321, 

Fort Worth, TX 76177. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2015– 

3659; or in person at the Docket 

Operations Office between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this AD, the economic 

evaluation, any comments received, and 

other information. The street address for 

the Docket Operations Office (phone: 

800–647–5527) is U.S. Department of 

Transportation, Docket Operations 

Office, M–30, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Galib Abumeri, Aviation Safety 

Engineer, Los Angeles Aircraft 

Certification Office, Transport Airplane 

Directorate, FAA, 3960 Paramount 

Blvd., Lakewood, California 90712; 

telephone (562) 627–5324; email 

Galib.Abumeri@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

On September 2, 2015, at 80 FR 

53028, the Federal Register published 

our notice of proposed rulemaking 

(NPRM), which proposed to amend 14 

CFR part 39 by adding an AD that 

would apply to MDHI Model 369A, 

369D, 369E, 369FF, 369HE, 369HM, 

369HS, 500N, and 600N helicopters 

with a pin part-number (P/N) 

369X1004–5 installed. The NPRM 

proposed to require determining the 

number of hours TIS of each pin and 

whether the aircraft maintenance 

records contain a pin life limit. If the 

hours TIS are unknown, NPRM 

proposed to require removing the pin 

from service. If the aircraft maintenance 

records do not contain a pin life limit, 

the NPRM proposed to require revising 

the records and establishing a life limit 

of 5,760 hours if the pin is installed on 

a Model 369A, 369HE, 369HM, or 

369HS helicopter, or 7,600 hours if the 

pin is installed on a Model 369D, 369E, 

369FF, 500N, or 600N helicopter. The 

NPRM also proposed to require revising 

the records to add a statement that if a 

pin is interchanged between different 

model helicopters, then its life limit 

must be restricted to the lower life limit 

even if it was originally installed on a 

helicopter model with a higher life 

limit. Lastly, the NPRM proposed to 

prohibit installing a pin on any 

helicopter before these proposed 

requirements have been accomplished. 

Aerometals produces pin P/N 

369X1004–5 under a parts manufacturer 

approval as a replacement pin for MDHI 

P/N 369A1004–5. The NPRM was 

prompted by a report from an operator 

who purchased Aerometals’ pins P/N 

369X1004–5 without life limit 

documentation. The FAA inadvertently 

approved the pins without a life limit in 

the Airworthiness Limitations section 

and without a restriction for parts that 

are interchanged between models with 

different life limits. A total of 5,133 

affected pins were sold by Aerometals 

without any indication that the parts 

were life-limited. The proposed 

requirements were intended to correct 

the failure of these parts to have a 

documented life limit to prevent a pin 

remaining in service beyond its fatigue 

life, which could result in failure of a 

pin, failure of a main rotor blade, and 

subsequent loss of control of the 

helicopter. 

Comments 

After our NPRM (80 FR 53028, 

September 2, 2015) was published, we 

received a comment from one 

commenter supporting the NPRM. 

FAA’s Determination 

We have reviewed the relevant 

information and determined that an 

unsafe condition exists and is likely to 

exist or develop on other products of 

these same type designs and that air 

safety and the public interest require 

adopting the AD requirements as 

proposed. 

Related Service Information 

Aerometals has issued Aero–ICA– 

1001 Supplemental Instructions for 

Continued Airworthiness, Revision NC, 

dated May 22, 2014, and Service 

Bulletin Aero–SB–1103, dated July 2, 

2014. The service bulletin specifies 

determining whether the helicopter has 

pins P/N 369X1004–5 installed and then 

reviewing the aircraft maintenance 

records to determine if the pins have a 

life limit identified. If the life limit is 

not the same as that listed in the ICA, 


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9332 Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Rules and Regulations 

the service bulletin specifies revising 

the life limit in the maintenance 

records. The service bulletin states that 

the pins were approved by the FAA as 

parts manufacturer approval direct 

replacement parts with the same life 

limits as the parts they replace. 

However, they were sold without an 

FAA-approved supplemental ICA 

containing an Airworthiness Limitations 

Section specifically assigning these life 

limits to the pins. 

Costs of Compliance 

We estimate that this AD will affect 

118 helicopters of U.S. Registry. We 

estimate that operators may incur the 

following costs in order to comply with 

this AD. Labor costs are estimated at $85 

per work-hour. We estimate 1/2 workhour to inspect and record any update 

for a total of $42.50 per helicopter and 

$5,015 for the U.S. fleet. If required, we 

estimate 1 work-hour per helicopter to 

replace 10 pins because each blade has 

2 pins and each helicopter has 5 blades. 

Required parts are $445 for each pin. 

Based on these estimates, it will cost 

$4,535 per helicopter to replace 10 pins 

if the pins have exceeded their life limit. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. 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. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701: 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will not have a 

substantial direct effect on the 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. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); 

(3) Will not affect intrastate aviation 

in Alaska to the extent that it justifies 

making a regulatory distinction; and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared an economic evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2016–04–15 MD Helicopters Inc.: 

Amendment 39–18409; Docket No. 

FAA–2015–3659; Directorate Identifier 

2014–SW–050–AD. 

(a) Applicability 

This AD applies to Model 369A, 369D, 

369E, 369FF, 369HE, 369HM, 369HS, 500N, 

and 600N helicopters with an Aerometals 

main rotor blade attach pin (pin) part number 

(P/N) 369X1004–5 installed, certificated in 

any category. 

(b) Unsafe Condition 

This AD defines the unsafe condition as a 

pin remaining in service beyond its fatigue 

life. This condition could result in failure of 

a pin, loss of a main rotor blade, and 

subsequent loss of control of the helicopter. 

(c) Effective Date 

This AD becomes effective March 31, 2016. 

(d) Compliance 

You are responsible for performing each 

action required by this AD within the 

specified compliance time unless it has 

already been accomplished prior to that time. 

(e) Required Actions 

(1) Within 100 hours time-in-service (TIS) 

or during the next annual inspection, 

whichever occurs first: 

(i) Review the maintenance records and 

determine the hours TIS of each pin P/N 

369X1004–5 and whether there is a pin life 

limit listed in the Airworthiness Limitations 

Section of the applicable maintenance 

manual or Instructions for Continued 

Airworthiness (ICA). If the hours TIS on a 

pin is unknown, remove the pin from service. 

(ii) For Model 369A, 369HE, 369HM, and 

369HS helicopters, if there is no pin life 

limit, establish a new life limit of 5,760 hours 

TIS for each pin P/N 369X1004–5 by making 

pen-and-ink changes or by inserting a copy 

of this AD into the Airworthiness Limitations 

Section of the maintenance manual or the 

ICA. Remove from service any pin that has 

5,760 or more hours TIS. 

(iii) For Model 369D, 369E, 369FF, 500N, 

and 600N helicopters, if there is no pin life 

limit, establish a new life limit of 7,600 hours 

TIS for each pin P/N 369X1004–5 by making 

pen-and-ink changes or by inserting a copy 

of this AD into the Airworthiness Limitations 

Section of the maintenance manual or the 

ICA. Remove from service any pin that has 

7,600 or more hours TIS. 

(iv) For all model helicopters, add the 

following statement to the Airworthiness 

Limitations Section of the maintenance 

manual or the ICA by making pen-and-ink 

changes or by inserting a copy of this AD: If 

interchanged between different model 

helicopters, the life limit of pin P/N 

369X1004–5 must be restricted to the lowest 

life limit indicated for the helicopter models 

and serial numbers affected. 

(2) Do not install a pin P/N 369X1004–5 on 

any helicopter before the requirements of this 

AD have been accomplished. 

(f) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Los Angeles Aircraft 

Certification Office, FAA, may approve 

AMOCs for this AD. Send your proposal to: 

Galib Abumeri, Aviation Safety Engineer, 

Transport Airplane Directorate, FAA, 3960 

Paramount Blvd., Lakewood, California 

90712; telephone (562) 627–5324 or email at 

9-ANM-LAACO-AMOC-REQUESTS@faa.gov. 

(2) For operations conducted under a 14 

CFR part 119 operating certificate or under 

14 CFR part 91, subpart K, we suggest that 

you notify your principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office or 

certificate holding district office before 

operating any aircraft complying with this 

AD through an AMOC. 

(g) Additional Information 

Aerometals Service Bulletin Aero-SB– 

1103, dated July 2, 2014, and Aerometals 

Aero–ICA–101 Supplemental Instructions for 

Continued Airworthiness, Revision NC, 

dated May 22, 2014, which are not 

incorporated by reference, contain additional 

information about the subject of this final 

rule. For service information identified in 

this final rule, contact Aerometals, 3920 

Sandstone Dr., El Dorado Hills, CA 95762, 

telephone (916) 939–6888, fax (916) 939– 

6555, www.aerometals.aero. You may review 

a copy of this service information at the FAA, 

Office of the Regional Counsel, Southwest 

Region, 10101 Hillwood Pkwy, Room 6N– 

321, Fort Worth, TX 76177. 


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Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Rules and Regulations 9333 

1Notice 2014–15, 2014–12 IRB 661, extended 

permission through December 31, 2014, for State 

and local housing credit agencies to use the 

alternative method in Notice 2012–18. 

(h) Subject 

Joint Aircraft Service Component (JASC) 

Code: 6210 Main Rotor Blades. 

Issued in Fort Worth, Texas, on February 

17, 2016. 

Lance T. Gant, 

Manager, Rotorcraft Directorate, Aircraft 

Certification Service. 

[FR Doc. 2016–03881 Filed 2–24–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9753] 

RIN 1545–BL84 

Amendments to the Low-Income 

Housing Credit Compliance-Monitoring 

Regulations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations relating to 

the compliance-monitoring duties of a 

State or local housing credit agency for 

purposes of the low-income housing 

credit. The final and temporary 

regulations revise and clarify the 

requirement to conduct physical 

inspections and review low-income 

certifications and other documentation. 

The final and temporary regulations will 

affect State or local housing credit 

agencies. The text of these temporary 

regulations also serves as the text of the 

proposed regulations (REG–150349–12) 

set forth in the notice of proposed 

rulemaking on this subject in the 

Proposed Rules section in this issue of 

the Federal Register. 

DATES: 

Effective date: These regulations are 

effective on February 25, 2016. 

Applicability date: For dates of 

applicability, see § 1.42–5T(h)(2). 

FOR FURTHER INFORMATION CONTACT: Jian 

H. Grant, (202) 317–4137, and Martha 

M. Garcia, (202) 317–6853 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

This document amends 26 CFR part 1 

to revise and clarify rules relating to 

section 42 of the Internal Revenue Code 

(Code). On March 5, 2012, the Treasury 

Department and the IRS published 

Notice 2012–18, 2012–10 IRB 438. 

Notice 2012–18 informed State and 

local housing credit agencies 

participating in a physical inspections 

pilot program of an alternative method 

for satisfying certain inspection and 

review responsibilities under § 1.42– 

5(c)(2) for projects for which the 

Department of Housing and Urban 

Development (HUD) conducted physical 

inspections.1 Notice 2012–18 also 

requested comments on various issues 

relating to § 1.42–5. The Treasury 

Department and the IRS received 

written and electronic comments in 

response. After consideration of all of 

the comments received, the Treasury 

Department and the IRS are issuing 

these final and temporary regulations. 

This document also updates the 

authority citation of 26 CFR part 1. The 

Omnibus Budget Reconciliation Act of 

1989 (Pub. L. 101–239) re-designated 

section 42(m) of the Code as section 

42(n). The updates in this document 

reflect that re-designation. 

General Overview 

Section 42 provides rules for 

determining the amount of the lowincome housing credit, which section 38 

allows as a credit against income tax. 

Section 42(a) provides that the amount 

of the low-income housing credit for 

any taxable year in the credit period is 

an amount equal to the applicable 

percentage of the qualified basis of each 

qualified low-income building. Section 

42(c)(2) defines a qualified low-income 

building as any building that is part of 

a qualified low-income housing project 

at all times during the compliance 

period (the period of 15 taxable years 

beginning with the first taxable year of 

the credit period). 

Section 42(g)(1) defines a qualified 

low-income housing project as any 

project for residential rental property if 

the project meets one of the following 

tests, as elected by the taxpayer: 

(A) At least 20 percent of the 

residential units in the project are rentrestricted and occupied by individuals 

whose income is 50 percent or less of 

area median gross income; or 

(B) At least 40 percent of the 

residential units in the project are rentrestricted and occupied by individuals 

whose income is 60 percent or less of 

area median gross income. 

In general, under section 42(i)(3)(A), a 

low-income unit is a residential unit 

that is rent-restricted and the occupants 

of which meet the applicable income 

limit elected by the taxpayer as 

described in section 42(g)(1)(A) or (B). 

Under section 42(i)(3)(B)(i), a unit is 

not treated as a low-income unit unless 

it is suitable for occupancy and used 

other than on a transient basis. Under 

section 42(i)(3)(B)(ii), the suitability of a 

unit for occupancy must be determined 

under regulations prescribed by the 

Secretary taking into account local 

health, safety, and building codes. 

Failure of one or more units to qualify 

as low-income units may result in a 

project’s ineligibility for the low-income 

housing credit, reduction in the amount 

of the credit, and/or recapture of 

previously allowed credits. 

Under section 42(m)(1), the owners of 

an otherwise-qualifying building are not 

entitled to low-income housing credits 

that are allocated to the building unless, 

among other requirements, the 

allocation is pursuant to a qualified 

allocation plan (QAP). A QAP provides 

standards by which a State or local 

housing credit agency or its Authorized 

Delegate within the meaning of § 1.42– 

5(f)(1) (‘‘Agency’’) will make these 

allocations. A QAP also provides a 

procedure that an Agency must follow 

in monitoring for compliance with the 

provisions of section 42. A plan fails to 

be a QAP unless, in addition to other 

requirements, it— 

provides a procedure that the agency (or an 

agent or other private contractor of such 

agency) will follow in monitoring for 

noncompliance with the provisions of 

[section 42] and in notifying the Internal 

Revenue Service of such noncompliance 

which such agency becomes aware of and in 

monitoring for noncompliance with 

habitability standards through regular site 

visits. 

Section 42(m)(1)(B)(iii). 

Section 1.42–5 (the compliancemonitoring regulations) describes some 

of the provisions that must be part of 

any QAP. As part of its compliancemonitoring responsibilities, an Agency 

must perform physical inspections and 

low-income certification review. 

The compliance-monitoring 

regulations specifically provide that, for 

each low-income housing project, an 

Agency must conduct on-site 

inspections of all buildings by the end 

of the second calendar year following 

the year the last building in the project 

is placed in service (the all-buildings 

requirement). In addition, prior to the 

amendments in this document, the 

regulations provided that, for at least 20 

percent of the project’s low-income 

units (the 20-percent rule), the Agency 

must both inspect the units and review 

the low-income certifications, the 

documentation supporting the 

certifications, and the rent records for 

the tenants in those same units (the 

same-units requirement). The 


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