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

87801 

Vol. 89, No. 214 

Tuesday, November 5, 2024 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 3565 

[Docket No. RHS–24–MFH–0016] 

RIN 0575–AD34 

Clarification on the Requirement To 

Record the Guaranteed Rural Rental 

Housing Program Deed Restriction 

AGENCY: Rural Housing Service, 

Department of Agriculture (USDA). 

ACTION: Proposed rule. 

SUMMARY: The Rural Housing Service 

(RHS or the Agency), a Rural 

Development agency of the United 

States Department of Agriculture 

(USDA), proposes to amend the current 

regulation for the Multifamily Housing 

(MFH) Guaranteed Rural Rental Housing 

Program (GRRHP). The intent of this 

proposed rule is to codify the restrictive 

use language within the GRRHP 

regulation to clarify that a separate deed 

restriction must be recorded. This 

change will allow the Agency to 

maintain and preserve affordable 

housing for low- and moderate-income 

households. 

DATES: Comments on the proposed rule 

must be received on or before January 6, 

2025. 

ADDRESSES: Comments may be 

submitted electronically by the Federal 

eRulemaking Portal: Go to 

regulations.gov and, in the ‘‘Search 

Field’’ box, labeled ‘‘Search for dockets 

and documents on agency actions,’’ 

enter the following docket number: 

RHS–24–MFH–0016) or RIN# 0575– 

AD34, then click search. To submit or 

view public comments, select the 

following document title: (MFH Rural 

Rental Housing Deed Restriction 

Proposed Rule) 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 

and its programs is available on the 

internet at rd.usda.gov. 

All comments will be available for 

public inspection online at the Federal 

eRulemaking Portal (regulations.gov). 

FOR FURTHER INFORMATION CONTACT: 

Tammy Daniels, Finance and Loan 

Analyst, Multi-Family Housing 

Production and Preservation Division, 

Rural Housing Service, United States 

Department of Agriculture, STOP 0781, 

1400 Independence Avenue SW, 

Washington, DC 20250–0781, 

Telephone: (202) 720–0021 (this is not 

a toll-free number); email: 

tammy.daniels@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 multifamily 

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. 

RHS administers the Section 538 

Guaranteed Rural Rental Housing 

Program (GRRHP) under the authority of 

the Housing Act of 1949, as amended 

(42 U.S.C. 1490p–2) and operates under 

7 CFR part 3565. Under the GRRHP, 

RHS guarantees loans for the 

development of housing and related 

facilities in rural areas. To preserve 

affordable housing, the GRRHP 

regulation requires properties that are 

financed with a Section 538 GRRHP 

loan be used for occupancy by low- and 

moderate-income households and 

remain as affordable rental housing for 

the original term of the loan. The 

Agency is proposing to require a 

separate deed restriction containing 

restrictive use language, stating that the 

housing must remain available for 

occupancy by low- and moderateincome households for the original term 

of the guaranteed loan, and be recorded 

along with other legally recorded 

documents. For the restriction to remain 

in place upon prepayment of the 

mortgage, the deed restriction must be 

recorded. The current regulation does 

not specify that the deed restriction be 

recorded. 

II. Purpose of the Proposed Rule 

The purpose of this proposed rule is 

to clarify that the deed restriction must 

be recorded to ensure affordable rural 

rental housing is preserved after 

prepayment of the mortgage. The 

current regulation does not specify that 

a separate deed restriction is to be 

recorded. Restrictive use provisions 

contained in the mortgage or deed of 

trust may be released along with the 

mortgage or deed of trust upon 

prepayment of the loan. However, 

documents recorded separately from the 

mortgage or deed of trust will survive if 

the loan is prepaid. If the deed is not 

recorded, the Agency will be at risk of 

not being able to enforce the restrictive 

use requirement and fulfill the need for 

affordable housing in rural areas. The 

proposed rule will require that 

applicants record a separate deed 

restriction. 

III. Summary of Changes 

The proposed changes would amend 

7 CFR 3565.352(b) by adding language 

requiring that a separate deed restriction 

(containing the restrictive use language) 

be recorded before other documentation 

related to the transaction. This change 

would allow the Agency to enforce the 

restrictive use requirement to maintain 

affordable housing if the loan 

guaranteed by the Section 538 GRRHP is 

prepaid. 

IV. Regulatory Information 

Statutory Authority 

The RHS administers the Section 538 

Guaranteed Rural Rental Housing 

Program (GRRHP) loans under the 

authority of the Housing Act of 1949, as 

amended (42 U.S.C. 1490p–2) and 

operates under 7 CFR part 3565. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
87802 Federal Register / Vol. 89, No. 214 / Tuesday, November 5, 2024 / Proposed Rules 

Executive Order 12372, 

Intergovernmental Review of Federal 

Programs 

These loans are subject to the 

provisions of Executive Order 12372, 

which require 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 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 bringing 

suit in court that challenges action taken 

under this rule. 

Executive Order 13132, Federalism 

The policies contained in this 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. Nor does this rule 

impose substantial direct compliance 

costs on state and local governments. 

Therefore, consultation with the States 

is not required. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This proposed 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 governmentto-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 

proposed 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. 

Regulatory Flexibility Act 

The 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 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. 

Administrative Pay-As-You-Go-Act of 

2023 

Section 270 of the Administrative 

Pay-As-You-Go-Act of 2023 (Pub. L. 

118–5, div. B, title III, 137 Stat 31) 

amended 5 U.S.C. 801(a)(2)(A) to 

require U.S. Government Accountability 

Office (GAO) to assess agency 

compliance with the Act, which 

establishes requirements for 

administrative actions that affect direct 

spending, in GAO’s major rule reports. 

The Act does not apply to this rule 

because it does not increase direct 

spending. 

Unfunded Mandate 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 

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 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 

rule is not subject to the requirements 

of sections 202 and 205 of the UMRA. 

National Environmental Policy Act 

In accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, this proposed 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. 

Civil Rights Impact Analysis 

Rural Development has reviewed this 

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, 

disability, marital or familial status. 

Based on the review and analysis of the 

rule and all available data, issuance of 

this proposed rule is not likely to 

negatively impact low and moderateincome populations, minority 

populations, women, Indian tribes or 

persons with disability, by virtue of 

their age, race, color, national origin, 

sex, disability, or marital or familial 

status. No major civil rights impact is 

likely to result from this proposed rule. 

Assistance Listing 

The program affected by this 

regulation is listed in the Catalog of 

Federal Domestic Assistance under 

numbers 10.438—Rural Rental Housing 

Guaranteed Loans (Section 538). 

Paperwork Reduction Act 

The information collection 

requirements contained in this 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 214 / Tuesday, November 5, 2024 / Proposed Rules 87803 

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). 

E-Government Act Compliance 

Rural Development is committed to 

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 and services, 

and for other purposes. 

USDA Non-Discrimination Statement 

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, or staff office; or the 711 

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 

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: 

a. Mail: U.S. Department of 

Agriculture, Office of the Assistant 

Secretary for Civil Rights, 1400 

Independence Avenue SW, Washington, 

DC 20250–9410; or 

b. Fax: (833) 256–1665 or (202) 690– 

7442; or 

c. Email: program.intake@usda.gov. 

Severability 

It is USDA’s intention that the 

provisions of this rule shall operate 

independently of each other. If this rule 

or any portion of this rule is ultimately 

declared invalid or stayed as to a 

particular provision, it is USDA’s intent 

that the 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 the 

provisions contained in this rule. 

List of Subjects in 7 CFR Part 3565 

Conflict of interest, Credit, Fair 

housing, Loan programs—housing and 

community development, Low and 

moderate-income housing, 

Manufactured homes, Mortgages, Rent 

subsidies, Reporting and recordkeeping 

requirements, Rural areas. 

For the reasons discussed in the 

preamble, the Agency proposes to 

amend 7 CFR part 3565 as follows: 

PART 3565—GUARANTEED RURAL 

RENTAL HOUSING PROGRAM 

■ 1. The authority citation for part 3565 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 

U.S.C. 1480. 

Subpart H—Project Management 

■ 2. Amend § 3565.352 by revising 

paragraph (b) to read as follows: 

§ 3565.352 Preservation of affordable 

housing. 

* * * * * 

(b) Use restriction. For the original 

term of the guaranteed loan, the housing 

must remain available for occupancy by 

low- and moderate-income households, 

in accordance with subpart E of this 

part. This requirement must be included 

in a deed restriction in a form 

acceptable to the Agency. The deed 

restriction must be recorded separately, 

before and with priority over other 

documents related to the transaction. 

The restriction will apply unless the 

housing is acquired by foreclosure or an 

instrument in lieu of foreclosure, or the 

Agency waives the applicability of this 

requirement after determining that each 

of the following three circumstances 

exist: 

(1) There is no longer a need for lowand moderate-income housing in the 

market area in which the housing is 

located; 

(2) Housing opportunities for lowincome households and minorities will 

not be reduced as a result of the waiver; 

and 

(3) Additional federal assistance will 

not be necessary as a result of the 

waiver. 

* * * * * 

Joaquin Altoro, 

Administrator, Rural Housing Service. 

[FR Doc. 2024–25713 Filed 11–4–24; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[EERE–2024–BT–TP–0009] 

RIN 1904–AF68 

Energy Conservation Program: Test 

Procedures for Residential and 

Commercial Clothes Washers and 

Consumer Clothes Dryers 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notice of proposed rulemaking 

and request for comment. 

SUMMARY: The U.S. Department of 

Energy (‘‘DOE’’) proposes to amend the 

test procedures for residential and 

commercial clothes washers and 

consumer clothes dryers to update the 

test cloth specifications. DOE also 

proposes to reorganize the test 

procedures for improved readability. 

DOE is conducting this rulemaking to 

address specific issues and to make 

minor corrections to the current test 

procedures. However, this rulemaking 

does not satisfy the statutory 

requirement that, at least once every 7 

years, DOE review the test procedures 

for clothes washers and consumer 

clothes dryers. DOE is seeking comment 

from interested parties on the proposal. 

DATES: 

Comments: DOE will accept 

comments, data, and information 

regarding this proposal no later than 

December 5, 2024. 

Meeting: DOE will hold a public 

meeting on this NOPR if one is 

requested by November 12, 2024. If a 

public meeting is requested, DOE will 

announce its date and participation 

information on the DOE website and via 

email. 


ddrumheller on DSK120RN23PROD with PROPOSALS1