This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

892 

Vol. 89, No. 5 

Monday, January 8, 2024 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 3560 

[Docket No. RHS–23–MFH–0014] 

RIN 0575–AD35 

Revisions to the Smoke Alarm 

Requirements in the Section 515 Rural 

Rental Housing and Section 514/516 

Farm Labor Housing Direct Loan 

Programs 

AGENCY: Rural Housing Service, U.S. 

Department of Agriculture (USDA). 

ACTION: Proposed rule. 

SUMMARY: The Rural Housing Service 

(RHS or Agency), a Rural Development 

(RD) agency of the United States 

Department of Agriculture (USDA), 

proposes to amend its regulation to 

implement changes related to the smoke 

alarm requirements for properties that 

receive funding from the MFH Section 

515 Rural Rental Housing and the 

Section 514/516 Farm Labor Housing 

Direct Loan and Grant programs. These 

proposed changes are intended to align 

the Agency’s smoke alarm requirements 

with the new qualifying smoke alarm 

standards set forth in the Consolidated 

Appropriations Act of 2023 (Act). The 

Act requires each unit of federally 

assisted housing to contain hardwired 

or 10-year non-rechargeable, sealed, 

tamper-resistant, battery-powered 

smoke alarm devices. 

DATES: Comments on the proposed rule 

must be received on or before March 8, 

2024. 

ADDRESSES: Comments may be 

submitted electronically by the Federal 

eRulemaking Portal: Go to https://

www.regulations.gov and, in the 

‘‘Search Field’’ box, labeled ‘‘Search for 

dockets and documents on agency 

actions,’’ enter the following docket 

number: RHS–23–MFH–0014 or the RIN 

0575–AD35. To submit or view public 

comments, click the ‘‘Search’’ button, 

select the ‘‘Documents’’ tab, then select 

the following document title: ‘‘Revisions 

to the Smoke Alarm Requirements in 

the Section 515 Rural Rental Housing 

and Section 514/516 Farm Labor 

Housing Direct Loan Programs’’ from 

the ‘‘Search Results,’’ and select the 

‘‘Comment’’ button. Before inputting 

your comments, you may also review 

the ‘‘Commenter’s Checklist’’ (optional). 

Insert your comments under the 

‘‘Comment’’ title, click ‘‘Browse’’ to 

attach files (if available). Input your 

email address and select ‘‘Submit 

Comment.’’ Information on using 

Regulations.gov, including instructions 

for accessing documents, submitting 

comments, and viewing the docket after 

the close of the comment period, is 

available through the site’s ‘‘FAQ’’ link. 

Other Information: Additional 

information about Rural Development 

(RD) and its programs is available on the 

internet at https://www.rd.usda.gov. All 

comments will be available online for 

public inspection at the Federal 

eRulemaking Portal (https://

www.regulations.gov/). 

FOR FURTHER INFORMATION CONTACT: 

Barbara Chism, Multi-Family Housing 

Asset Management Division, Rural 

Housing Service, 1400 Independence 

Avenue SW, Washington, DC 20250– 

0782, Telephone: (202) 690–1436; 

Email: Barbara.chism@usda.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The RHS, offers a variety of programs 

to build or improve housing and 

essential community facilities in rural 

areas. RHS offers loans, grants, and loan 

guarantees for single- and multi-family 

housing, childcare centers, fire and 

police stations, hospitals, libraries, 

nursing homes, schools, first responder 

vehicles and equipment, and housing 

for farm laborers. RHS also provides 

technical assistance loans and grants in 

partnership with non-profit 

organizations, Indian tribes, State and 

Federal government agencies, and local 

communities. 

Title V of the Housing Act of 1949 

authorized the USDA to make housing 

loans to farmers to enable them to 

provide habitable dwellings for 

themselves or their tenants, lessees, 

sharecroppers, and laborers. The USDA 

then expanded opportunities in rural 

areas, making housing loans and grants 

to rural residents through the SingleFamily Housing (SFH) and Multi-Family 

Housing (MFH) Programs. 

The RHS administers the MFH 

Section 515 Rural Rental Housing direct 

loan program under 7 CFR part 3560, 

subpart B. The Section 515 program 

employs a public-private partnership by 

providing subsidized loans at an interest 

rate of one percent to developers to 

construct or renovate affordable rental 

complexes in rural areas. This one 

percent loan keeps the debt service on 

the property sufficiently low to support 

below-market rents affordable to lowincome tenants. Many of these projects 

also utilize other Federal, State, and 

local funding sources and rental 

subsidies such as HUD’s Section 8 and 

low-income housing tax credit proceeds. 

The RHS also operates the MFH Farm 

Labor Housing direct loan and grant 

programs under sections 514 and 516 

set forth in 7 CFR part 3560, subparts L 

and M. The MFH Farm Labor Housing 

programs provide low interest loans and 

grants to provide housing for 

farmworkers. These eligible 

farmworkers may either live and work at 

the borrower’s farm, including seasonal 

and migrant workers (‘‘on-farm’’) or they 

may live away from the farm (‘‘offfarm’’). 

Under the current regulation, 

borrowers are required to install and 

maintain smoke alarms in all dwelling 

units, common use areas, and other 

spaces in all residential buildings 

included as security for an Agency loan. 

Borrowers must also ensure that smoke 

alarms are properly located to protect 

tenant safety and the value of the 

Agency’s asset. Failure to maintain 

adequate smoke alarms may lead to 

injury of persons, damage to property, 

or a non-monetary loan default. 

II. Purpose of This Regulatory Action 

On December 29, 2022, the President 

signed into law the Consolidated 

Appropriations Act of 2023 (Pub. L. 

117–328) (Act), which incorporated The 

Public and Federally Assisted Housing 

Fire Safety Act of 2022. This Act 

requires each unit and common use 

areas of federally assisted housing to 

contain hardwired or 10-year nonrechargeable, sealed, tamper-resistant 

battery-powered smoke alarm devices, 

as well as other items. The Act modifies 

the Housing Act of 1949 to implement 

these new smoke detector requirements 

for Section 515 Rural Rental Housing 

programs and Section 514/516 Farm 

Labor Housing Direct Loan Programs. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 5 / Monday, January 8, 2024 / Proposed Rules 893 

Public Law 117–328, div. AA, title VI, 

sec. 601. The RHS’s current smoke 

alarm requirements in 7 CFR part 3560 

for the MFH Direct Loan and Grant 

Programs have been in place since 

February 24, 2005, and are outdated. To 

achieve compliance with the new 

requirements set forth under the Act, 

the Rural Housing Service (RHS) 

proposes to amend its MFH Direct Loan 

and Grant program regulations, 7 CFR 

3560.60 of subpart B and 7 CFR 

3560.103(a)(3)(xx) of subpart C. 

Housing repair and replacement costs 

in the affordable housing industry have 

been increasing at a steady rate due to 

economic changes in the open market 

for labor and materials. Our 

stakeholders will benefit from the 

proposed change through improved 

safety and prevention of potential 

damage resulting from smoke and fire, 

as well as lessen the potential for harm 

to visitors and residents. 

This action is intended to: (1) align 

the smoke alarm requirements with 

more stringent requirements for 

federally assisted housing industry 

standards; (2) increase the safety of 

tenants and visitors at our properties; (3) 

reduce the risk of losing available 

affordable housing units in our rural 

communities due to uninhabitability 

caused by smoke and fire damage as a 

result of outdated smoke alarm devices; 

and (4) provide the Agency with 

additional protection from the loss of its 

security value. 

III. Summary of Changes 

The proposed changes are as follows: 

1. Add a new paragraph (e) to 

§ 3560.60 that cross-references 

§ 3560.103(a)(3)(xx), which contains the 

new qualifying smoke alarm 

requirements. 

2. Revise § 3560.103(a)(3)(xx) the 

language for smoke alarms to include 

the new requirements for qualifying 

smoke alarms. 

IV. Regulatory Information 

Statutory Authority 

The changes in this proposed rule are 

authorized under division AA, title VI, 

section 601 of the Consolidated 

Appropriations Act, 2023. The Rural 

Rental Housing program is authorized 

under sections 514(k), 515(m,), 516(c) of 

title V of the Housing Act of 1949, as 

amended; 42 U.S.C. 1480 et seq.; and 

implemented under 7 CFR part 3560. 

Executive Order 12372, 

Intergovernmental Review of Federal 

Programs 

These loans are subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with state and local 

officials. RHS conducts 

intergovernmental consultations for 

each loan in accordance with 2 CFR part 

415, subpart C. 

Executive Order 12866, Regulatory 

Planning and Review 

This proposed rule has been 

determined to be non-significant and, 

therefore, was not reviewed by the 

Office of Management and Budget 

(OMB) under Executive Order 12866. 

Executive Order 12988, Civil Justice 

Reform 

This proposed rule has been reviewed 

under Executive Order 12988. In 

accordance with this rulemaking: (1) 

Unless otherwise specifically provided, 

all state and local laws that conflict with 

this rulemaking will be preempted; (2) 

no retroactive effect will be given to this 

rulemaking except as specifically 

prescribed in the rule; and (3) 

administrative proceedings of the 

National Appeals Division of the 

Department of Agriculture (7 CFR part 

11) must be exhausted before suing in 

court that challenges action taken under 

this rulemaking. 

Executive Order 13132, Federalism 

The policies contained in this 

proposed rule do not have any 

substantial direct effect on States, on the 

relationship between the National 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. This proposed 

rule does not impose substantial direct 

compliance costs on state and local 

governments; therefore, consultation 

with States is not required. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This Executive order imposes 

requirements on RHS in the 

development of regulatory policies that 

have tribal implications or preempt 

tribal laws. RHS has determined that the 

proposed rule does not have a 

substantial direct effect on one or more 

Indian tribe(s) or on either the 

relationship or the distribution of 

powers and responsibilities between the 

Federal Government and Indian tribes. 

Thus, this proposed rule is not subject 

to the requirements of Executive Order 

13175. If tribal leaders are interested in 

consulting with RHS on this 

rulemaking, they are encouraged to 

contact USDA’s Office of Tribal 

Relations or RD’s Tribal Coordinator at: 

AIAN@usda.gov to request such a 

consultation. 

Assistance Listing 

The program affected by this 

regulation is listed in the Assistance 

Listing Catalog (formerly Catalog of 

Federal Domestic Assistance) under 

number 10.415—Rural Rental Housing 

Loans, 10.427—Rural Rental Assistance 

Payments, 10.405—Farm Labor Housing 

Loans and Grants. 

Civil Rights Impact Analysis 

Rural Development has reviewed this 

proposed rule in accordance with USDA 

Regulation 4300–004, Civil Rights 

Impact Analysis, to identify any major 

civil rights impacts the proposed rule 

might have on program participants on 

the basis of age, race, color, national 

origin, sex, or disability. After review 

and analysis of the proposed rule and 

available data, it has been determined 

that implementation of the rulemaking 

will not adversely or disproportionately 

impact very low, low- and moderateincome populations, minority 

populations, women, Indian tribes, or 

persons with disability by virtue of their 

race, color, national origin, sex, age, 

disability, or marital or familial status. 

No major civil rights impact is likely to 

result from this proposed rule. 

E-Government Act Compliance 

RHS is committed to complying with 

the E-Government Act by promoting the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to government information, 

services, and other purposes. 

National Environmental Policy Act 

This document has been reviewed in 

accordance with 7 CFR part 1970, 

subpart A, ‘‘Environmental Policies.’’ 

RHS determined that this action does 

not constitute a major Federal action 

significantly affecting the quality of the 

environment. In accordance with the 

National Environmental Policy Act of 

1969, Public Law 91–190, an 

Environmental Impact Statement (EIS) 

is not required. 

Paperwork Reduction Act 

The information collection 

requirements contained in this 

regulation have been approved by OMB 

and have been assigned OMB control 

number 0575–0189. This proposed rule 

contains no new reporting and 

recordkeeping requirements that would 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35). 


ddrumheller on DSK120RN23PROD with PROPOSALS1
894 Federal Register / Vol. 89, No. 5 / Monday, January 8, 2024 / Proposed Rules 

Regulatory Flexibility Act 

This proposed rule has been reviewed 

with regard to the requirements of the 

Regulatory Flexibility Act (5 U.S.C. 

601–612). The undersigned has 

determined and certified by signature 

on this document that this proposed 

rule will not have a significant 

economic impact on a substantial 

number of small entities since this 

rulemaking action does not involve a 

new or expanded program nor does it 

require any more action on the part of 

a small business than required of a large 

entity. 

Unfunded Mandates Reform Act 

(UMRA) 

Title II of the UMRA, Public Law 104– 

4, establishes requirements for Federal 

agencies to assess the effects of their 

regulatory actions on state, local, and 

tribal governments and on the private 

sector. Under section 202 of the UMRA, 

Federal agencies generally must prepare 

a written statement, including costbenefit analysis, for proposed and final 

rules with ‘‘Federal mandates’’ that may 

result in expenditures to state, local, or 

tribal governments, in the aggregate, or 

to the private sector, of $100 million or 

more in any one year. When such a 

statement is needed for a rule, section 

205 of the UMRA generally requires a 

Federal agency to identify and consider 

a reasonable number of regulatory 

alternatives and adopt the least costly, 

more cost-effective, or least burdensome 

alternative that achieves the objectives 

of the rule. 

This proposed rule contains no 

Federal mandates (under the regulatory 

provisions of title II of the UMRA) for 

state, local, and tribal governments or 

for the private sector. Therefore, this 

proposed rule is not subject to the 

requirements of sections 202 and 205 of 

the UMRA. 

Non-Discrimination Statement Policy 

Nondiscrimination Statement. In 

accordance with Federal civil rights 

laws and U.S. Department of 

Agriculture (USDA) civil rights 

regulations and policies, the USDA, its 

Mission Areas, agencies, staff offices, 

employees, and institutions 

participating in or administering USDA 

programs are prohibited from 

discriminating based on race, color, 

national origin, religion, sex, gender 

identity (including gender expression), 

sexual orientation, disability, age, 

marital status, family/parental status, 

income derived from a public assistance 

program, political beliefs, or reprisal or 

retaliation for prior civil rights activity, 

in any program or activity conducted or 

funded by USDA (not all bases apply to 

all programs). Remedies and complaint 

filing deadlines vary by program or 

incident. 

Program information may be made 

available in languages other than 

English. Persons with disabilities who 

require alternative means of 

communication to obtain program 

information (e.g., Braille, large print, 

audiotape, American Sign Language) 

should contact the responsible Mission 

Area, agency, staff office; or the Federal 

Relay Service at (800) 877–8339. 

To file a program discrimination 

complaint, a complainant should 

complete a Form AD–3027, USDA 

Program Discrimination Complaint 

Form, which can be obtained online at 

https://www.usda.gov/sites/default/ 

files/documents/ad-3027.pdf from any 

USDA office, by calling (866) 632–9992, 

or by writing a letter addressed to 

USDA. The letter must contain the 

complainant’s name, address, telephone 

number, and a written description of the 

alleged discriminatory action in 

sufficient detail to inform the Assistant 

Secretary for Civil Rights (ASCR) about 

the nature and date of an alleged civil 

rights violation. The completed AD– 

3027 form or letter must be submitted to 

USDA by: 

(1) Mail: U.S. Department of 

Agriculture, Office of the Assistant 

Secretary for Civil Rights, 1400 

Independence Avenue SW, Washington, 

DC 20250–9410; or 

(2) Fax: (833) 256–1665 or (202) 690– 

7442; or 

(3) Email: program.intake@usda.gov. 

USDA is an equal opportunity 

provider, employer, and lender. 

List of Subjects in 7 CFR Part 3560 

Accounting, Administrative practice 

and procedure, Aged, Conflicts of 

interest, Government property 

management, Grant programs—housing 

and community development, 

Insurance, Loan programs—agriculture, 

Loan programs—housing and 

community development, Low and 

moderate-income housing, Migrant 

labor, Mortgages, Nonprofit 

organizations, Public housing, Rentsubsidies, Reporting and recordkeeping 

requirements, Rural areas. 

For the reasons set forth in the 

preamble, Rural Housing Service 

proposes to amend 7 CFR part 3560 as 

follows: 

PART 3560—DIRECT MULTI-FAMILY 

HOUSING LOANS AND GRANTS 

■ 1. The authority citation for part 3560 

continues to read as follows: 

Authority: 42 U.S.C. 1480. 

Subpart B—Direct Loan and Grant 

Origination 

■ 2. Amend § 3560.60 by adding 

paragraph (e) to read as follows: 

§ 3560.60 Design requirements. 

* * * * * 

(e) Applicable codes and standards. 

All housing and related facilities must 

meet the qualifying smoke alarm 

requirements in § 3560.103(a)(3)(xx). 

Subpart C—Borrower Management and 

Operations Responsibilities 

■ 3. Amend § 3560.103 by revising 

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

§ 3560.103 Maintaining housing projects. 

(a) * * * 

(3) * * * 

(xx) Smoke alarms. The housing 

project must have qualifying smoke 

alarms which are installed in 

accordance with applicable codes and 

standards as set forth in sections 514(k), 

515(m), and 516(c) of the Housing Act 

of 1949 (42 U.S.C. 1471 et seq.), in each 

level and in or near each sleeping area 

in such dwelling unit, including in 

basements but excepting crawl spaces 

and unfinished attics, and in each 

common area in a project containing 

such a dwelling unit. 

(A) Dwelling units built before 

December 29, 2022, and not 

substantially rehabilitated after 

December 29, 2022, smoke alarms must: 

(1) Be hardwired; or 

(2) Use 10-year non rechargeable, 

nonreplaceable primary batteries, be 

sealed, tamper resistant, and contain 

silencing means; and 

(3) Provide notification for persons 

with hearing loss as required by 

applicable standards set forth in 

sections 514(k), 515(m), and 516(c) of 

the Housing Act of 1949 (42 U.S.C. 1471 

et seq.) 

(B) Dwelling units built or 

substantially rehabilitated after 

December 29, 2022; smoke alarms must 

be hardwired. 

* * * * * 

Joaquin Altoro, 

Administrator, Rural Housing Service. 

[FR Doc. 2024–00073 Filed 1–5–24; 8:45 am] 

BILLING CODE 3410–XV–P 


ddrumheller on DSK120RN23PROD with PROPOSALS1