[Federal Register Volume 89, Number 207 (Friday, October 25, 2024)]
[Rules and Regulations]
[Pages 85035-85037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24742]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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. 

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Federal Register / Vol. 89 , No. 207 / Friday, October 25, 2024 / 
Rules and Regulations

[[Page 85035]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3560

[Docket No.: RHS-23-MFH-0013]
RIN 0575-AD36


Updates to the Off-Farm Labor Housing (Off-FLH), Loan and Grant 
Rates and Terms; Clarification of Grant Agreement Terms

AGENCY: Rural Housing Service, U.S. Department of Agriculture (USDA).

ACTION: Final rule.

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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development 
(RD) agency of the United States Department of Agriculture (USDA), is 
amending the current regulation for the Off-Farm Labor Housing (Off-
FLH) program to clarify the grant agreement term and adopt the period 
of performance as required by Federal award information requirements. 
The Agency expects the changes to clarify for applicants and grantees 
their obligations and requirements as Federal award recipients.

DATES: Effective date: October 25, 2024.

FOR FURTHER INFORMATION CONTACT: Christa Lindsey, Finance and Loan 
Analyst, United States Department of Agriculture Rural Housing Service, 
Multifamily Housing Production and Preservation Division; telephone 
number: (352) 538-5747; email address: <a href="/cdn-cgi/l/email-protection#7f121917510f0d10180d1e120c0a0f0f100d0b3f0a0c1b1e51181009"><span class="__cf_email__" data-cfemail="d8b5beb0f6a8aab7bfaab9b5abada8a8b7aaac98adabbcb9f6bfb7ae">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

    The RHS, an agency of the USDA, 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 (Act) 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 Single-Family 
Housing (SFH) and Multi-Family Housing (MFH) Programs.
    The RHS also operates the MFH Farm Labor Housing direct loan and 
grant programs under sections 514 and 516 which provide low interest 
loans and grants to provide housing for year-round and migrant or 
seasonal domestic farm laborers. These eligible farm laborers may work 
either at the borrower's farm (``on-farm'') or at any other farm 
(``off-farm''). Housing under these programs may be built in any area 
with a need and demand for housing for farm laborers.

II. Summary of Comments and Responses

    Stakeholder input is vital to ensure that proposed changes to 
current regulations will support the Agency's mission, while ensuring 
that new regulations and policies are reasonable and do not overly 
burden the Agency's lenders and their customers. The Rural Housing 
Service (RHS) published a proposed rule in the Federal Register on 
September 12, 2023 (88 FR 62475) and a 60-day comment period was 
provided for the public to submit comments, which closed on November 
13, 2023. The Agency did not receive any comments therefore, the final 
rule will publish with no changes from the published proposed rule.

III. Discussion of the Final Rule

    This final rule is necessary to bring the current regulation at 7 
CFR 3560.566 into compliance with the Federal award information 
requirements outlined in 2 CFR 200.211. Pursuant to 2 CFR 200.1, the 
``period of performance'' is defined as: ``. . . the time interval 
between the start and end date of a Federal award, which may include 
one or more budget periods. Identification of the period of performance 
in the Federal award consistent with 7 CFR 200.211(b)(5) does not 
commit the Federal agency to fund the award beyond the currently 
approved budget period.''
    Identification of the period of performance in the Federal award 
per 2 CFR 200.211(b)(5) does not commit the awarding agency to fund the 
award beyond the currently approved budget period. Furthermore, a 
Federal award is defined under 2 CFR 200.1 as the instrument setting 
forth the terms and conditions of the grant agreement, cooperative 
agreement or other agreement for assistance as specified in 2 CFR 
200.1. The changes in this final rulemaking will clarify the term of 
the grant agreement in 7 CFR 3560.566(c) and define a five-year fixed 
period of performance in 7 CFR 3560.566(d) so that applicants and 
grantees will have a better understanding of their obligations and 
requirements as Federal award recipients.

IV. Summary of Rule Changes

    No comments were received from the public on the proposed rule that 
published in the Federal Register on September 12, 2023 (88 FR 62475). 
The following are the changes being made to 7 CFR part 3560:
    (1) In 7 CFR 3560.566(c), the term of grant agreement will remain 
in effect for as long as there is a need for the housing, as determined 
by the Agency.
    (2) In 7 CFR 3560.566, a new paragraph will be added to define the 
grant period of performance as five (5) years, which starts on the date 
the grant agreement is executed by both the Agency and the grantee and 
ends five (5) years from the date the grant agreement was executed by 
both the Agency and the grantee.

V. Regulatory Information

Statutory Authority

    The Off-FLH Loan and Grant program is authorized by title V of the 
Housing Act of 1949 (Pub. L. 81-171), as amended; 42 U.S.C. 1484; 42 
U.S.C. 1486(h); and 42 U.S.C. 1480; and implemented under 7 CFR part 
3560, subpart L.

Executive Order 12372, Intergovernmental Review of Federal Programs

    This program is subject to the provisions of Executive Order 12372,

[[Page 85036]]

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 final 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 final rule has been reviewed under Executive Order 12988. In 
accordance with this rule: (1) Unless otherwise specifically provided, 
all State and local laws that conflict with this rule will be 
preempted; (2) no retroactive effect will be given to this rule 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 rule.

Executive Order 13132, Federalism

    The policies contained in this final 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 Final 
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 final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. Executive Order 13175 requires Federal 
agencies to consult and coordinate with tribes on a government-to-
government basis on policies that have Tribal implications, including 
regulations, legislative comments or proposed legislation, and other 
policy statements or actions that have substantial direct effects on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes. 
Consultation is also required for any regulation that preempts Tribal 
law or that imposes substantial direct compliance costs on Indian 
Tribal governments and that is not required by statute.
    The Agency has determined that this final rule does not, to our 
knowledge, have Tribal implications that require formal Tribal 
consultation under Executive Order 13175. If a Tribe requests 
consultation, the RHS will work with the Office of Tribal Relations and 
USDA Rural Development's Tribal Relations Team to ensure meaningful 
consultation is provided where changes, additions and modifications 
identified herein are not expressly mandated by Congress.

National Environmental Policy Act

    In accordance with the National Environmental Policy Act of 1969, 
Public Law 91-190, this final rule has been reviewed in accordance with 
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency 
has determined that (i) this action meets the criteria established in 7 
CFR 1970.53(f); (ii) no extraordinary circumstances exist; and (iii) 
the action is not ``connected'' to other actions with potentially 
significant impacts, is not considered a ``cumulative action'' and is 
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined 
that the action does not have a significant effect on the human 
environment, and therefore neither an Environmental Assessment nor an 
Environmental Impact Statement is required.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this final 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-602) (RFA) generally 
requires an agency to prepare a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements under the 
Administrative Procedure Act (``APA'') or any other statute. The 
Administrative Procedures Act exempts from notice and comment 
requirements rules ``relating to agency management or personnel or to 
public property, loans, grants, benefits, or contracts'' (5 U.S.C. 
553(a)(2)), so therefore an analysis has not been prepared for this 
rule.

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 cost-benefit analysis, for proposed and 
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, most cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule.
    This final 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 final rule is 
not subject to the requirements of sections 202 and 205 of the UMRA.

Paperwork Reduction Act

    This final rule contains no new reporting or recordkeeping burdens 
under OMB control number 0572-0189 that would require approval under 
the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35).

E-Government Act Compliance

    RHS is committed to complying with the E-Government Act, which 
requires Government agencies in general to provide the public the 
option of submitting information or transacting business electronically 
to the maximum extent possible and to promote the use of the internet 
and other information technologies to provide increased opportunities 
for citizen access to Government information, services, and other 
purposes.

Civil Rights Impact Analysis

    Rural Development has reviewed this final rule in accordance with 
USDA Regulation 4300-4, Civil Rights Impact Analysis,'' to identify any 
major civil rights impacts the rule might have on program participants 
on the basis of age, race, color, national origin, sex, or disability, 
marital or familial status. Based on the review and analysis of the 
rule, and all available data, issuance of this final rule is not likely 
to negatively impact low- and moderate-income 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

[[Page 85037]]

rights impact is likely to result from this final rule.

Assistance Listing

    The programs affected by this regulation is listed in the 
Assistance Listing Catalog (formerly Catalog of Federal Domestic 
Assistance) under number 10.405--Farm Labor Housing Loans and Grants. 
The Assistance Listings are available at https://sam.gov/.

Non-Discrimination Statement Policy

    In accordance with Federal civil rights laws and 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 711 Federal 
Relay Service.
    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 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: <a href="/cdn-cgi/l/email-protection#2252504d4550434f0c4b4c5643494762575146430c454d54"><span class="__cf_email__" data-cfemail="7f0f0d10180d1e125116110b1e141a3f0a0c1b1e51181009">[email protected]</span></a>.
    USDA is an equal opportunity provider, employer, and lender.

Severability

    It is USDA's intention that the provisions of this final rule shall 
operate independently of each other. In the event that this final rule 
or any portion of this final rule is ultimately declared invalid or 
stayed as to a particular provision, it is USDA's intent that the final 
rule nonetheless be severable and remain valid with respect to those 
provisions not affected by a declaration of invalidity or stayed. USDA 
concludes it would separately adopt all of the provisions contained in 
this final rule.

List of Subjects in 7 CFR Part 3560

    Accounting, Administrative practice and procedure, Aged, Conflict 
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, Rent-subsidies, Reporting and recordkeeping requirements, 
Rural areas.

    For the reasons set forth in the preamble, the Rural Housing 
Service is amending 7 CFR part 3560 as follows:

PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS

0
1. The authority citation for part 3560 continues to read as follows:

    Authority: 42 U.S.C. 1480.

Subpart L--Off-Farm Labor Housing

0
2. Amend Sec.  3560.566 by revising paragraph (c) and adding paragraph 
(d) to read as follows:


Sec.  3560.566  Loan and grant rates and terms.

* * * * *
    (c) Term of grant agreement. The grant agreement will remain in 
effect for as long as there is a need for the housing, as determined by 
the Agency.
    (d) Grant period of performance. The grant period of performance is 
five (5) years, which starts on the date the grant agreement is 
executed by both the Agency and the grantee and ends five (5) years 
from the date the grant agreement was executed by both the Agency and 
the grantee.

Yvonne Hsu,
Acting Administrator, Rural Housing Service.
[FR Doc. 2024-24742 Filed 10-24-24; 8:45 am]
BILLING CODE 3410-XV-P


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