[Federal Register Volume 89, Number 192 (Thursday, October 3, 2024)]
[Notices]
[Pages 80592-80595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22833]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7080-N-49]


30-Day Notice of Proposed Information Collection; Affirmative 
Fair Housing Marketing Plan--HUD 935.2A, HUD 935.2B, and HUD 935.2C; 
OMB Control No.: 2529-0013

AGENCY: Office of Policy Development and Research, Chief Data Officer, 
HUD.

ACTION: Notice.

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SUMMARY: HUD is seeking approval from the Office of Management and 
Budget (OMB) for the information collection described below. In 
accordance with the Paperwork Reduction Act, HUD is requesting comment 
from all interested parties on the proposed collection of information. 
The purpose of this notice is to allow for an additional 30 days of 
public comment.

[[Page 80593]]


DATES: Comment Due Date: November 4, 2024.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
    1. Electronic Submission of Comments. Interested persons may also 
submit comments electronically through the Federal eRulemaking Portal 
at www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov website can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note:  To receive consideration as public comments, comments 
must be submitted through one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the notice. Facsimile (FAX) comments are not acceptable.


FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management 
Officer, REE, Department of Housing and Urban Development, 7th Street 
SW, Room 8210, Washington, DC 20410; email <a href="/cdn-cgi/l/email-protection#9ad9f5f6ffeeeeffb4caf5f6f6fbe8fedaf2effeb4fdf5ec"><span class="__cf_email__" data-cfemail="72311d1e170606175c221d1e1e130016321a07165c151d04">[email protected]</span></a> or 
telephone (202) 402-3400. 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/telecommunications-relay-service-trs.
    Copies of available documents submitted to OMB may be obtained from 
Ms. Pollard.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A. The Federal Register notice that solicited public comment on 
the information collection for a period of 60 days was published on 
June 26, 2024, at 80 FR 53437.

A. Overview of Information Collection

    Title of Information Collection: Affirmative Fair Housing Marketing 
Plan.
    OMB Approval Number: 2529-0013.
    Type of Request: Revision of a currently approved collection.
    Form Number: HUD 935.2A, HUD 935.2B, HUD 935.2C.
    Description of the need for the information and proposed use: HUD 
is requesting that the OMB approve the revision of forms: HUD-935.2A 
Affirmative Fair Housing Marketing Plan--Multifamily Housing, HUD-
935.2B Affirmative Fair Housing Marketing Plan--Single Family Housing, 
and HUD-935.2C Affirmative Fair Housing Marketing Plan--Condominiums or 
Cooperatives. These forms assist HUD in fulfilling its duty under the 
Fair Housing Act to administer its programs and activities relating to 
housing and urban development in a manner that affirmatively furthers 
fair housing, by promoting a condition in which individuals of similar 
income levels in the same housing market area have available a like 
range of housing choices, regardless of race, color, national origin, 
religion, sex (including sexual orientation and gender identity), 
disability, or familial status. These forms assist HUD grantees and 
insured housing with their compliance with the Fair Housing Act and 
other civil rights requirements. This collection also promotes 
compliance with Executive Order 11063, which requires Federal agencies 
to take all necessary and appropriate action to prevent discrimination 
in federally insured and subsidized housing. Under the Affirmative Fair 
Housing Marketing Regulations (24 CFR part 200, subpart M), an AFHMP 
must be submitted by all applicants for participation in Federal 
Housing Administration (FHA) subsidized and unsubsidized housing 
programs that involve the development or rehabilitation of the 
following types of housing: (1) multifamily projects or manufactured 
home parks of five or more lots, units, or spaces; (2) a single family 
property, where the property is located in a subdivision and the 
builder or developer intends to sell five or more properties in the 
subdivision, and a lender is making an initial application for mortgage 
insurance; or (3) dwelling units, when the applicant's participation in 
FHA housing programs had exceeded or would thereby exceed the 
development of five or more of such dwelling units during the year 
preceding the application (not counting the development of single 
family dwelling units for occupancy by a mortgagor on property owned by 
the mortgagor and in which the applicant had no interest prior to 
entering into the contract for construction or rehabilitation). The 
regulations require applicants to submit the AFHMP on a form prescribed 
by the Department (i.e., HUD-935A; HUD-935B and HUD 935-C). If this 
information was not collected, it would prevent HUD from ensuring 
compliance with affirmative fair housing marketing requirements.
    HUD is revising the HUD-935.2A to clarify the instructions 
involving marketing activities and reduce the need to provide 
information that has already been reported to HUD. The revision also 
substantially reduces the burden hours of completing the form using 
Microsoft Excel to automate the retrieval of project demographics and 
geocoded Census data once users enter an existing nine-digit Property 
ID.
    Respondents: Applicants for FHA subsidized and unsubsidized housing 
programs.
    Estimated Number of Respondents: 5,703 For the HUD 935.2A: On an 
annual basis, there are approximately 303 respondents that submit new 
plans and 1,080 respondents that review their existing plans and submit 
updated plans. There are 4,320 respondents who will review their AFHMP 
and determine that it does not need to be submitted for HUD approval.
    For HUD 935.2.B & C: On an annual basis, there are approximately 30 
respondents that submit new plans.
    Estimated Number of Responses: 5,733.
    Frequency of Response: 1 per annum.
    Average Hours per Response: The average hours per response is 2.7 
hours. (For HUD-935.2A, the hours per response are: 4 hours (new plans) 
and 2 hours (to review and update plans. Census data needed for updates 
are now automated) and 2 hours (review only, i.e. those who review and 
determine that an update is not needed). For HUD-935.2B & C, the hours 
per response is 3 hours (average hours between those that will certify 
that they do not need to complete the form and those that will complete 
the form).
    Total Estimated Burden: 12,102 hours.

[[Page 80594]]



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                                  Number of     Frequency of    Responses    Burden hour per      Annual burden      Hourly cost per
     Information collection      respondents      response      per annum       response              hours             response          Annual cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
HUD-935.2A (MFH)...............        5,703  1..............       5,703  New 4 x 303.......  New 1,212.........  Respondents.......  Respondents
                                                                           Review & Update 2   Review & Update     $40/hr              New = ($40 x 4 x
                                                                            x 1,080..           2,160..             (professional       303) + ($18 x 2
                                                                           Review 2 x 4,320..  Review 8,640......   work)..             x 303) =
                                                                                                                   $18/hr (clerical     $59,388.
                                                                                                                    work)..            Updates = ($40 x
                                                                                                                   $1.35 per report     2 x 1,080) +
                                                                                                                    mailing..           ($18 x 2 x
                                                                                                                                        $1,080) =
                                                                                                                                        $125,280.
                                                                                                                                       Reviews = ($40 x
                                                                                                                                        2 x 4,320) =
                                                                                                                                        $345,600.
                                                                                                                                       Mailing Costs =
                                                                                                                                        $1.35 x 100 =
                                                                                                                                        $135.
                                                                                                                                       Annual Cost =
                                                                                                                                        $59,388 +
                                                                                                                                        $125,280 +
                                                                                                                                        $345,600 + $135
                                                                                                                                        = $530,403.
                                                                                                                   Government........  Government
                                                                                                                   $40.45/hr *         New = ($40.45 x 3
                                                                                                                    (professional       x 303) + ($18.40
                                                                                                                    work)..             x 0.5 x 303) =
                                                                                                                   $18.40/hr **         $39,556.65.
                                                                                                                    (clerical work)..  Reviews & Updates
                                                                                                                                        = ($40.45 x 3 x
                                                                                                                                        1,080) + ($18.40
                                                                                                                                        x 0.5 x 1,080) =
                                                                                                                                        $140,994.
                                                                                                                                       Annual Cost =
                                                                                                                                        $39,556.65 +
                                                                                                                                        $140,994 =
                                                                                                                                        $180,550.65.
HUD-935.2B (SFH) & C (Condos              30  1..............          30  3.................  90................  Respondents.......  Respondents
 and Co-Ops).                                                                                                      $40/hr              ($40 x 3 x 30) +
                                                                                                                    (professional       ($18 x 2 x 30) =
                                                                                                                    work)..             $4,680.
                                                                                                                   $18/hr (clerical    $1.35 x 0 = $0.
                                                                                                                    work)..            Annual Cost =
                                                                                                                   $1.35 per report     $4,680 + $0 =
                                                                                                                    mailing..           $4,680.
                                                                                                                   Government........  Government
                                                                                                                   $40.42/hr           Annual Cost =
                                                                                                                    (professional       ($40.42 x 3 x
                                                                                                                    work)..             30) + ($18.40 x
                                                                                                                   $18.40/hr            0.5 x 30) =
                                                                                                                    (clerical work)..   $3,918.8.
                                ------------------------------------------------------------------------------------------------------------------------
    Total......................        5,733  1 each.........       5,733  Avg. of 2.12......  12,102............  Avg. of $17.84....  Respondents
                                                                                                                                       $535,083.
                                                                                                                                       Government
                                                                                                                                       $184,469.49.
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* Base rate for GS 12 Step 5 ($40.42/hr) based on the salary information available on OPM.gov.
** Base rate for GS 5 step 5 ($18.40/hr) based on the salary information available on OPM.gov.

Discussion of Revisions

    HUD received comments from one commenter, who strongly supported 
the continued use of the AFHMP. In response to the comments, HUD made 
minor revisions to the forms as described in the responses below.

General Comments

    Form Clarity: The commenter suggested that the AFHMP form clarify 
the meaning of ``market area.'' The commenter suggested using broader 
metropolitan areas such as MSAs or regional planning geographies rather 
than a developer's subjective view of the HMA without considering 
regional patterns of segregation. The commenter also suggested the 
replacement of ``tenants'' with ``potential residents'' because market 
area selection requirements include homeownership. Lastly, the 
commenter suggested that the demographics of income eligible persons be 
considered.
    HUD Response: HUD appreciates these suggestions and has replaced 
the term ``tenants'' with ``potential residents'' in Forms 935.2B and 
935.2C to reflect that these units are for owner-occupants.
    HUD agrees that the demographics of income-eligible persons are an 
important consideration and will explore how to incorporate additional 
data sources in future versions of the form.
    With regard to geographies, the form instructions define a housing 
market area (HMA) as an area from which a multifamily housing project 
owner/agent, may ``reasonably expect to draw a substantial number of 
tenants,'' and an Expanded Housing Market Area (EHMA) as ``a larger 
geographic area, such as a Metropolitan Division or a Metropolitan 
Statistical Area, which may provide additional demographic diversity 
regarding race, color, national origin, religion, sex, familial status, 
or disability.'' The automated form 935.2A selects default HMA and EHMA 
based on a property's location. The form instructions detail the 
default selections. The default HMA is the Census Place (e.g. 
population centers such as municipalities, cities, towns, villages, or 
Zip Code Tabulation Areas for unincorporated places) where the 
development is located. In response to public comments, we have added 
examples of Census Places to the instructions. The default EHMA is a 
Metropolitan or Micropolitan Statistical Area, if applicable, or a 
County for properties not located within an MSA. In response to this 
comment, we have added additional details to instructions of all three 
forms giving examples of Census-defined places.
    To account for unusual circumstances and data or technical issues, 
the automated form retains a manual input feature that may be used to 
select alternate HMA and EHMA geographies. Users choosing alternate 
HMAs or EHMAs must explain and justify their selections in Question 13. 
HUD expects that defining default HMA/EHMA's while also allowing manual 
selections will result in more standardized AFHMP submissions and more 
clarity around the intent of analyzing demographics at both the HMA and 
EHMA levels, while preserving flexibility for housing providers and

[[Page 80595]]

reviewers to account for local conditions.
    Preferences: The commenter supported the inclusion of the residency 
preferences questions. The commenter suggested that HUD require that 
any residency preference be clearly defined by its geographic impact 
and demonstrate that they do not discriminatorily limit access by 
applicants. The commenter also suggested that the AFHMP form provide 
instructions for analyzing whether other types of preferences exclude 
applicants who are least likely to apply.
    HUD Response: All admissions preferences must comply with 
nondiscrimination requirements and applicable civil rights laws. 
However, HUD regulations at 24 CFR 5.655(c)(1) and 24 CFR 5.105(a), 
specifically require that HUD review and approve residency preferences 
as part of the AFHMP process. Accordingly, HUD has required and will 
continue to require a geographic analysis for AFHMP submissions 
requesting or modifying residency preferences. If during the course of 
reviewing an AFHMP submission HUD becomes aware of other admissions 
preferences in response to question 1j that violate program 
requirements or civil rights, reviewers will work with owners and/or 
agents to revise preferences prior to approval.
    Burden Estimate: The commenter noted that the burden hours could be 
substantially longer than estimated unless demographic information is 
readily and easily available.
    HUD Response: The revised Form 935-2A automates the retrieval of 
demographic and geocoded census data which is estimated to 
substantially reduce the burden hours to complete the form. HUD 
reorganized forms 935-2B and 935-2C to highlight the self-certification 
option, which reduces the burden hours of completing the forms.
    Alternative Marketing Techniques: The commenter suggested that the 
instructions should include alternative media to reach out to people 
least likely to apply, including outreach to persons on the Housing 
Choice Voucher waiting list, social media, direct mailings, advertising 
on buses and trains, flyers at daycare, senior, and recreation centers; 
groceries; and tours of the housing and neighborhood.
    HUD Response: The forms currently include examples of various 
marketing outreach and community contacts, including PHAs. Housing 
providers are encouraged to continue to exhaust various means to 
advertise housing and draw potential residents that are least likely to 
apply.

Solicitation of Public Comment

    In accordance with 5 CFR 1320.8(d)(1), HUD is specifically 
soliciting comment from members of the public and affected parties 
concerning the collection of information described in Section A on the 
following:
    (1) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) The accuracy of the agency's estimate of the burden of the 
proposed collection of information;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated collection techniques or other forms of information 
technology, e.g., permitting electronic submission of responses.
    (5) ways to minimize the burden of the collection of information on 
those who are to respond, including the use of automated collection 
techniques or other forms of information technology.
    HUD encourages interested parties to submit comments in response to 
these questions.

C. Authority

    Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 
chapter 35

Colette Pollard,
Department Reports Management Officer, Office of Policy Development and 
Research, Chief Data Officer.
[FR Doc. 2024-22833 Filed 10-2-24; 8:45 am]
BILLING CODE 4210-67-P


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