20406 Federal Register / Vol. 72, No. 78 / Tuesday, April 24, 2007 / Proposed Rules 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 200 

[Docket No. FR–5070–P–01] 

RIN 2502–AI43 

Uniform Physical Condition Standards 

and Physical Inspection Requirements 

for Certain HUD Housing; Revision to 

Response Time for Requesting a 

Technical Review of a Physical 

Inspection Report 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Proposed rule. 

SUMMARY: HUD assesses the physical 

conditions of multifamily properties 

and notifies owners of its assessment. 

The owners, under certain 

circumstances, are provided an 

opportunity to seek a technical review 

of HUD’s physical condition assessment 

and HUD may take action in certain 

cases where the housing is found not to 

be in compliance with the physical 

condition standards. Currently, the 

regulations establish different time 

frames for owners to request a technical 

review, depending on whether HUD 

transmits the inspection results through 

the Internet or certified mail. In order to 

improve uniformity in the technical 

review request process, this proposed 

rule would implement a standard time 

frame of 30 calendar days for the 

submission of a request for a technical 

review for both physical inspection 

results that are transmitted to the owner 

via the Internet or in hard copy form via 

certified mail. 

DATES: Comment Due Date: May 24, 

2007. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this rule to the Regulations Division, 

Office of General Counsel, Department 

of Housing and Urban Development, 

451 Seventh Street, SW., Room 10276, 

Washington, DC 20410–0500. Interested 

persons also may submit comments 

electronically through the Federal 

eRulemaking Portal at http:// 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically so that HUD, in 

turn, can make them immediately 

available to the public. Commenters 

should follow the instructions provided 

on that site to submit comments 

electronically. Facsimile (FAX) 

comments are not acceptable. In all 

cases, communications must refer to the 

docket number and title. All comments 

and communications submitted to HUD 

will be available for public inspection 

and copying between 8 a.m. and 5 p.m. 

weekdays at the above address. Due to 

security measures at the HUD 

Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at (202) 708– 

3055 (this is not a toll-free number). 

Copies of all comments submitted are 

available for inspection and 

downloading at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Kenneth Hannon, Director, Business 

Relationships and Special Initiatives 

Division, Office of Housing, Department 

of Housing and Urban Development, 

451 Seventh Street, SW., Room 6176, 

Washington, DC 20410–8000; telephone 

(202) 708–3944, extension 2599 (this is 

not a toll-free number). Hearing- and 

speech-impaired persons may access 

this number through TTY by calling the 

toll-free Federal Information Relay 

Service at (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

HUD’s regulations in 24 CFR part 200, 

subpart P, establish for multifamily 

housing certain administrative 

processes by which HUD notifies 

owners of HUD’s assessment of the 

physical condition of their multifamily 

housing. The regulations provide 

owners, under certain circumstances, 

with the opportunity to seek a technical 

review of HUD’s physical condition 

assessment of the multifamily housing; 

the regulations also allow HUD to take 

action in certain cases where such 

housing is found not to be in 

compliance with the physical condition 

standards. The regulations in 24 CFR 

part 200, subpart P, build upon the 

regulations in 24 CFR part 5, subpart G, 

that establish uniform physical 

condition standards (UPCS) for public 

housing and housing that is insured 

and/or assisted under certain HUD 

programs (collectively, such housing is 

referred to as HUD properties). 

The regulations in 24 CFR part 5, 

subpart G, also establish a uniform 

physical inspection protocol, based on 

computer software developed by HUD, 

which allows HUD to determine 

compliance with these standards. The 

UPCS are intended to ensure that HUD 

program participants carry out their 

legal obligations to maintain HUD 

properties in a condition that is decent, 

safe, sanitary, and in good repair. The 

uniform inspection protocol is intended 

to assure that, to the greatest extent 

possible, there is uniformity and 

objectivity in the evaluation of the 

physical condition of HUD properties. 

The regulations in 24 CFR part 200, 

subpart P, currently provide for two 

different time frames for owners to 

request a technical review of HUD’s 

physical inspection assessment, 

depending on whether HUD transmits 

the inspection results to the owner 

through the Internet or via certified 

mail. Owners receiving their inspection 

results through certified mail are 

provided 30 calendar days to submit a 

request for a technical review, while 

those owners receiving their results 

electronically have only 15 calendar 

days to request a review. 

II. This Proposed Rule 

For technical review requests, HUD 

originally established one time frame for 

reviewing HUD inspection results for 

owners who receive the results by mail 

and another for reviewing HUD 

inspection results for owners who 

receive the results electronically. HUD 

did this because mailed 

communications between HUD and the 

owner would be slower. In establishing 

a response time of 30 days for a request 

from an owner who received the results 

by mail, HUD allowed for time to review 

the results and time for the owner to 

receive the mailed request. From almost 

10 years of experience with this process, 

HUD has concluded that the differing 

deadlines have been confusing and do 

not necessarily establish equal review 

and response time for owners. 

To address these concerns, this 

proposed rule would make one change 

to the time frames for requesting 

technical review. In § 200.857, HUD is 

revising paragraphs (c)(3) and (d) to 

include a uniform, 30-calendar-day time 

frame for the submission of a request for 

a technical review for physical 

inspection results that are transmitted to 

the owner either via the Internet or in 

hard copy via certified mail. 

Specifically, the proposed rule provides 

that HUD must receive requests for 

review no later than 30 calendar days 

from the date that HUD transmits the 

physical inspection report to the owner 

(as established by the postmark, if 

applicable). HUD believes that 

establishing a uniform time frame for 

requesting a technical review will be 

more equitable and less confusing to its 

clients, and simpler for its multifamily 

field offices to administer. 

III. Justification for 30-Day Comment 

Period 

In accordance with HUD’s regulations 

concerning rulemaking at 24 CFR part 

10 (entitled, ‘‘Rulemaking Policy and 

Procedures’’), it is HUD’s policy that the 


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Federal Register / Vol. 72, No. 78 / Tuesday, April 24, 2007 / Proposed Rules 20407 

public comment period for proposed 

rules should be 60 days. In the case of 

this proposed rule, however, HUD has 

determined there is good cause to 

reduce the public comment period to 30 

days. As discussed in more detail earlier 

in this preamble, this proposed rule 

would implement only a minor 

regulatory change that would make 

HUD’s procedures more uniform and 

easier to follow. Specifically, the 

proposed rule would provide for a 

uniform, 30-calendar-day period for 

submission of review requests, whether 

the owner receives the results 

electronically or via certified mail. HUD 

anticipates that a uniform time frame 

will expedite the processing of review 

requests because it will eliminate 

confusion and, therefore, promote 

efficiency in the process. The regulatory 

change is procedural and does not 

revise or establish new binding physical 

inspection requirements on owners. 

Nothing in the proposed rule would 

restrict owners from submitting a review 

request prior to the close of the 30 days, 

and owners may continue to submit 

their requests as quickly as they choose. 

Given the procedural and 

streamlining nature of the proposed 

regulatory changes, HUD believes that 

good cause exists to reduce the public 

comment period to 30 days. All 

comments will be considered in the 

development of the final rule. 

IV. Findings and Certifications 

Paperwork Reduction Act 

The information collection 

requirements contained in this proposed 

rule have been approved by the Office 

of Management and Budget (OMB) 

under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501–3520) and 

assigned OMB Control number 2502–

0369. In accordance with the Paperwork 

Reduction Act, an agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information, unless the collection 

displays a currently valid OMB control 

number. 

Environmental Impact 

In accordance with 24 CFR 50.19(c)(1) 

of the Department’s regulations, this 

rule does not direct, provide for 

assistance or loan and mortgage 

insurance for, or otherwise govern or 

regulate, real property acquisition, 

disposition, leasing, rehabilitation, 

alteration, demolition, or new 

construction, or establish, revise, or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Therefore, this 

proposed rule is categorically excluded 

from the requirements of the National 

Environmental Policy Act (42 U.S.C. 

4321 et seq.). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) generally 

requires an agency to conduct a 

regulatory 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. 

The proposed rule would establish a 

uniform time frame for submission of 

review requests for all owners, 

irrespective of size. The regulatory 

change is procedural and does not 

revise or establish new binding 

requirements on owners. HUD 

anticipates that a uniform time frame 

will eliminate confusion and, therefore, 

expedite the processing of review 

requests. Accordingly, the undersigned 

certifies that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

Notwithstanding HUD’s 

determination that this rule will not 

have a significant economic impact on 

a substantial number of small entities, 

HUD specifically invites comments 

regarding less burdensome alternatives 

to this rule that will meet HUD’s 

objectives as described in this preamble. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) (2 U.S.C. 

1531–1538) 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 mandate on state, local, or tribal 

government or the private sector within 

the meaning of UMRA. 

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 

rule does not have federalism 

implications and does not impose 

substantial direct compliance costs on 

state and local governments nor 

preempt State law within the meaning 

of the Executive Order. 

List of Subjects in 24 CFR Part 200 

Administrative practice and 

procedure, Claims, Equal employment 

opportunity, Fair housing, Home 

improvement, Housing standards, 

Incorporation by reference, Lead 

poisoning, Loan programs, Housing and 

community development, Minimum 

property standards, Mortgage insurance, 

Organization and functions (government 

agencies), Penalties, Reporting and 

recordkeeping requirements, Social 

Security, Unemployment compensation, 

and Wages. 

Accordingly, for the reasons stated in 

the preamble, HUD proposes to amend 

24 CFR part 200 as follows: 

PART 200—INTRODUCTION TO FHA 

PROGRAMS 

1. The authority citation for 24 CFR 

part 200 continues to read as follows: 

Authority: 12 U.S.C. 1702–1715z–21; 42 

U.S.C. 3535(d). 

2. Revise § 200.857(c)(3) and (d) 

introductory text to read as follows: 

§ 200.857 Administrative process for 

scoring and ranking the physical condition 

of multifamily housing properties. 

* * * * * 

(c) * * * 

(3) If, following review of the physical 

inspection results and score, the owner 

reasonably believes that an objectively 

verifiable and material error (or errors) 

occurred in the inspection, which, if 

corrected, will result in a significant 

improvement in the property’s overall 

score (‘‘significant improvement’’ is 

defined in paragraph (d)(4) of this 

section), the owner may submit a 

written request for a technical review. 

The technical review request must be 

received in writing no later than 30 

calendar days (as established by the 

postmark, if applicable) from the date 

the physical inspection results are 

transmitted to the owner by REAC 

whether the results and score are 

transmitted to the owner via the 

Internet, or by hard copy via certified 

mail. 

(d) Technical review of physical 

inspection results. A request for a 

technical review of physical inspection 

results must be submitted in writing to 

REAC and must be received by REAC no 

later than the 30th calendar day, as 

applicable under paragraph (c)(3) of this 

section, following submission of the 

physical inspection report to the owner 

as provided in paragraph (c)(1) of this 

section. 

* * * * * 


jlentini on PROD1PC65 with PROPOSAL2
20408 Federal Register / Vol. 72, No. 78 / Tuesday, April 24, 2007 / Proposed Rules 

Dated: March 21, 2007. 

Brian D. Montgomery, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. E7–7706 Filed 4–23–07; 8:45 am] 

BILLING CODE 4210–67–P 


jlentini on PROD1PC65 with PROPOSAL2