Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 16963 

501, TP–501, TP–502, and EPA 

Regulation 40 CFR 59.623. 

Because the scope of the consumer 

product safety rule is established by the 

CGBPA, this rule does not incorporate 

by reference the scope section of ASTM 

F2517–15 or Appendix X1 that relates to 

the scope section of ASTM F2517–15. 

V. Effective Date 

As discussed in the preceding section, 

this is a direct final rule. Unless the 

Commission receives a significant 

adverse comment by April 3, 2015, the 

rule will become effective on April 12, 

2015. 

VI. Other Relevant Statutory Provisions 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act (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 or any 

other statutes unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. 5 U.S.C. 603 

and 605. This rule merely codifies 

requirements that will take effect 

through operation of law as specified in 

the CGBPA. The rule does not impose 

any requirements beyond those put in 

place by the CGBPA. Thus, the rule does 

not create new substantive obligations 

for any entity, including any small 

entity. Accordingly, the Commission 

certifies that the rule will not have a 

significant impact on a substantial 

number of small entities. 

B. Environmental Considerations 

The Commission’s regulations 

provide a categorical exclusion for the 

Commission’s rules from any 

requirement to prepare an 

environmental assessment or an 

environmental impact statement 

because they ‘‘have little or no potential 

for affecting the human environment.’’ 

16 CFR 1021.5(c)(2). This rule falls 

within the categorical exclusion, so no 

environmental assessment or 

environmental impact statement is 

required. 

C. Paperwork Reduction Act 

This direct final rule contains no 

collection of information. Therefore, 

clearance by the Office of Management 

and Budget under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3520) is not required. 

VII. Preemption 

Section 26(a) of the Consumer 

Product Safety Act (CPSA), 15 U.S.C. 

2075(a), provides that where a 

‘‘consumer product safety standard 

under [the CPSA]’’ is in effect and 

applies to a product, no state or political 

subdivision of a state may either 

establish or continue in effect a 

requirement dealing with the same risk 

of injury unless the state requirement is 

identical to the federal standard. 

(Section 26(c) of the CPSA also provides 

that states or political subdivisions of 

states may apply to the Commission for 

an exemption from this preemption 

under certain circumstances). 

As discussed above, under the 

CGBPA, the child-resistance 

requirements of ASTM F2517–15 

became a consumer product standard 

for CPSA purposes. Children’s Gasoline 

Burn Prevention Act, Pub. L 110–278, 

Sec. 2(a) (July 17, 2008). The childresistance requirements of ASTM 

F2517–15, which will be codified under 

this rule, will invoke the preemptive 

effect of section 26(a) of the CPSA. 

VIII. Certification 

Section 14(a) of the CPSA requires 

that products subject to a consumer 

product safety rule under the CPSA, or 

to a similar rule, ban, standard, or 

regulation under any other act enforced 

by the Commission, be certified as 

complying with all applicable CPSC 

requirements. 15 U.S.C. 2063(a). Such 

certification must be based on a test of 

each product, or on a reasonable testing 

program. Because ASTM F2517–15 is 

deemed a ‘‘consumer product safety 

rule’’ for CPSA purpose, portable 

gasoline containers manufactured on or 

after April 12, 2015 are subject to the 

testing and certification requirements of 

section 14 of the CPSA with respect to 

ASTM F2517–15. 

List of Subjects in 16 CFR Part 1460 

Consumer protection, Gasoline, 

Incorporation by reference, Safety. 

For the reasons stated above, the 

Commission adds part 1460 to 

subchapter B of title 16 of the Code of 

Federal Regulations to read as follows: 

PART 1460—CHILDREN’S GASOLINE 

BURN PREVENTION ACT 

REGULATION 

Sec. 

1460.1 Scope and application. 

1460.2 Definition. 

1460.3 Requirements for child-resistance 

for closures on portable gasoline 

containers. 

Authority: Sec. 2, Pub. L. 110–278, 122 

Stat. 2602. 

§ 1460.1 Scope and application. 

In accordance with the Children’s 

Gasoline Burn Prevention Act, portable 

gasoline containers must comply with 

the requirements specified in § 1460.3, 

which are considered to be a consumer 

product safety rule. 

§ 1460.2 Definition. 

Portable gasoline container means 

any portable gasoline container 

intended for use by consumers. 

§ 1460.3 Requirements for child-resistance 

for closures on portable gasoline 

containers. 

Each portable gasoline container 

manufactured on or after April 12, 2015 

for sale in the United States shall 

conform to the child-resistance 

requirements for closures on portable 

gasoline containers specified in sections 

2 through 6 of ASTM F2517–15 

(including Appendixes X2 and X3 

referenced therein), Standard 

Specification for Determination of Child 

Resistance of Portable Fuel Containers 

for Consumer Use, approved on January 

1, 2015. The Director of the Federal 

Register approves the incorporation by 

reference listed in this section in 

accordance with 5 U.S.C. 552(a) and 1 

CFR part 51. You may obtain a copy of 

these ASTM standards from ASTM 

International, 100 Barr Harbor Drive, PO 

Box C700, West Conshohocken, PA 

19428–2959 USA, telephone: 610–832– 

9585; http://www.astm.org/. You may 

inspect copies at the Office of the 

Secretary, U.S. Consumer Product 

Safety Commission, Room 820, 4330 

East West Highway, Bethesda, MD 

20814, telephone 301–504–7923, or at 

the National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to: http://www.archives.gov/

federal_register/code_of_

federalregulations/ibr_locations.html. 

Alberta E. Mills, 

Acting Secretary, U.S. Consumer Product 

Safety Commission. 

[FR Doc. 2015–07151 Filed 3–30–15; 8:45 am] 

BILLING CODE 6355–01–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Chapters VIII and IX 

[Docket No. FR–5779–N–01] 

HUD Approval of Requests for 

Transfers of Multifamily Housing 

Project-Based Rental Assistance, HUDHeld or Insured Debt, and IncomeBased Use Restrictions 

AGENCY: Office of the Assistant 

Secretary for Housing-Federal Housing 

Commissioner, HUD. 


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16964 Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 

1Section 212 of Title II of Division K of the 

Consolidated and Further Continuing 

Appropriations Act, 2015 (Pub. L. 113–235, 

approved December 16, 2014) provides the same 

authority for fiscal years 2015 and 2016. For the 

sake of simplicity, this notice uses ‘‘Section 214’’ 

to refer to the authority in both Acts, as the 

language other than the dates is identical. 

2Subsection (d)(2)(A) pertains to housing that is 

subject to a mortgage insured under the National 

Housing Act (12 U.S.C. 1701 et seq.). 

3Subsection (d)(2) defines the term ‘‘multifamily 

housing project.’’ 

ACTION: Notice of requirements to 

transfer assistance. 

SUMMARY: This notice establishes the 

terms and conditions by which HUD 

will approve a request for the transfer of 

project-based rental assistance, debt 

held or insured by the Secretary, and 

statutorily required income-based use 

restrictions from one multifamily 

housing project to another (or between 

several such projects). The Department 

of Housing and Urban Development 

Appropriations Act, 2014 and the 

Department of Housing and Urban 

Development Appropriations Act, 2015 

give the Secretary the authority to 

approve transfer requests for fiscal years 

2014 through 2016, provided that the 

Secretary publish a notice in the 

Federal Register establishing the terms 

and conditions for HUD approval of 

such transfers no later than 30 days 

before such notice takes effect. HUD 

believes that publication of the criteria 

will assist project owners to determine 

whether a transfer is feasible given the 

specific circumstances of their 

multifamily projects. Publication of the 

criteria will also facilitate HUD’s review 

of transfer requests by helping owners 

formulate their requests in a manner 

that adequately addresses the statutory 

criteria. 

DATES: Effective: April 30, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Nancie-Ann Bodell, Acting Director, 

Office of Asset Management and 

Portfolio Oversight of Multifamily 

Housing, Office of Housing, Department 

of Housing and Urban Development, 

451 7th Street SW., Room 6110, 

Washington, DC 20410; telephone 

number 202–708–2495 (this is not a tollfree number). Persons with hearing or 

speech impairments may access this 

number through TTY by calling the tollfree Federal Relay Service at 800–877– 

8339. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Beginning with section 318 of the 

Department of Housing and Urban 

Development Appropriations Act, 2006 

(Pub. L. 109–115, 119 Stat. 2396, 

approved November 30, 2005), HUD 

appropriations acts have contained a 

general provision authorizing the 

Secretary to approve requests from 

project owners for the transfer of certain 

rental assistance, debt, and incomebased use restrictions between HUDassisted projects. For fiscal years 2014 

and 2015, this transfer authority is 

provided under section 214 of Title II of 

Division L of the Consolidated 

Appropriations Act, 2014 (Pub. L. 113– 

76, 128 Stat. 5, approved January 17, 

2014) (Section 214).1 Section 214(a) 

states that ‘‘[n]otwithstanding any other 

provision of law . . . the Secretary of 

Housing and Urban Development may 

authorize the transfer of some or all 

project-based assistance, debt held or 

insured by the Secretary and statutorily 

required low-income and very lowincome use restrictions if any, 

associated with one or more multifamily 

housing project or projects to another 

multifamily housing project or 

projects.’’ Section 214(b) also allows for 

phased transfers of project-based 

assistance to accommodate the 

financing and other requirements 

related to rehabilitating or constructing 

the project or projects to which the 

assistance is transferred. 

HUD approval of transfers is subject 

to the conditions enumerated in the 

appropriations act for the applicable 

fiscal year. These statutory terms and 

conditions have, in general, been 

consistent from one appropriations act 

to the next. The statutory criteria for 

fiscal years 2014 through 2016 are 

enumerated in Section 214(c), which 

provides as follows: 

• The transfer authorized in 

subsection (a) is subject to the following 

conditions: 

Æ NUMBER AND BEDROOM SIZE OF 

UNITS.— 

—For occupied units in the transferring 

project: The number of low-income 

and very low-income units and the 

configuration (i.e. bedroom size) 

provided by the transferring project 

shall be no less than when transferred 

to the receiving project or projects and 

the net dollar amount of Federal 

assistance provided to the transferring 

project shall remain the same in the 

receiving project or projects. 

—For unoccupied units in the 

transferring project: The Secretary 

may authorize a reduction in the 

number of dwelling units in the 

receiving project or projects to allow 

for a reconfiguration of bedroom sizes 

to meet current market demands, as 

determined by the Secretary and 

provided there is no increase in the 

project-based assistance budget 

authority. 

Æ The transferring project shall, as 

determined by the Secretary, be either 

physically obsolete or economically 

nonviable. 

Æ The receiving project or projects 

shall meet or exceed applicable physical 

standards established by the Secretary. 

Æ The owner or mortgagor of the 

transferring project shall notify and 

consult with the tenants residing in the 

transferring project and provide a 

certification of approval by all 

appropriate local governmental officials. 

Æ The tenants of the transferring 

project who remain eligible for 

assistance to be provided by the 

receiving project or projects shall not be 

required to vacate their units in the 

transferring project or projects until new 

units in the receiving project are 

available for occupancy. 

Æ The Secretary determines that this 

transfer is in the best interest of the 

tenants. 

Æ If either the transferring project or 

the receiving project or projects meets 

the condition specified in subsection 

(d)(2)(A),2 any lien on the receiving 

project resulting from additional 

financing obtained by the owner shall 

be subordinate to any FHA-insured 

mortgage lien transferred to, or placed 

on, such project by the Secretary, except 

that the Secretary may waive this 

requirement upon determination that 

such a waiver is necessary to facilitate 

the financing of acquisition, 

construction, and/or rehabilitation of 

the receiving project or projects. 

Æ If the transferring project meets the 

requirements of subsection (d)(2),3 the 

owner or mortgagor of the receiving 

project or projects shall execute and 

record either a continuation of the 

existing use agreement or a new use 

agreement for the project where, in 

either case, any use restrictions in such 

agreement are of no lesser duration than 

the existing use restrictions. 

Æ The transfer does not increase the 

cost (as defined in section 502 of the 

Congressional Budget Act of 1974, as 

amended) of any FHA-insured mortgage, 

except to the extent that appropriations 

are provided in advance for the amount 

of any such increased cost. 

HUD has exercised the transfer 

authority on a case-by-case basis, 

determining compliance with the 

statutory criteria based on the specific 

circumstances of the projects. Most of 

the statutory criteria are prescriptive, 

leaving little room for the exercise of 

agency discretion (for example, the 

requirement that the transfer not 

increase the cost of any FHA-insured 

mortgage). Others, however, are more 


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Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 16965 

4The term ‘‘owner’’ refers to either the 

transferring or receiving owner unless specified. 

generally phrased, allowing for HUD 

interpretation in applying the criteria 

(for example, the requirement that the 

transferring project be either physically 

obsolete or economically nonviable, ‘‘as 

determined by the Secretary’’). Over 

time, HUD has developed uniform 

guidelines to facilitate the review of 

transfer requests and aid in determining 

compliance with the statutory criteria. 

Section 214(e)(1) requires that HUD 

publish by notice in the Federal 

Register the terms and conditions for 

HUD approval of transfers, no later than 

30 days before such notice takes effect. 

This notice is being issued in 

accordance with the publication 

requirements of Section 214(e)(1). HUD 

believes that publication of the criteria 

will assist project owners in 

determining whether a transfer is 

appropriate given the specific 

circumstances of their multifamily 

projects. Publication of the criteria will 

also facilitate HUD’s review of transfer 

requests by helping owners formulate 

their requests in a manner that 

adequately address the statutory criteria. 

Owners of multifamily housing 

projects, as defined by subsection (d)(2) 

of Section 214, who wish to request a 

transfer of rental assistance, debt, or 

income-based use restrictions under 

Section 214 should submit a package 

containing the relevant materials 

outlined below to the HUD Hub/

Program Center or Regional Center/

Satellite Office for review. Owners can 

submit packages for review on or after 

the effective date of this notice. HUD 

will issue a subsequent Housing notice 

detailing procedural submission 

requirements and will follow this notice 

with a proposed rule to solicit comment 

before regulatory codification of these 

criteria. 

B. Statutory Terms and Conditions for 

HUD Approval of Transfer Requests 

Commencing for transfer requests 

submitted pursuant to Section 214, HUD 

will evaluate the request, on a case-bycase basis, in accordance with the 

following criteria. The receiving 

property must be a multifamily housing 

project prior to or as a result of the 

Section 214 transfer. The receiving 

project may already be HUD-affiliated, 

meaning it has existing HUD projectbased rental assistance, an existing use 

restriction, or debt (either HUD-held or 

FHA-insured). HUD will approve a 

transfer under Section 214 to a HUDaffiliated property if the receiving 

property is in compliance with all 

business agreements with the 

Department or has a HUD-approved 

plan in place to correct any identified 

deficiencies. The receiving property 

may be existing, under construction, 

newly constructed, undergoing 

substantial rehabilitation, or undergoing 

moderate rehabilitation. Before Section 

8 project-based rental assistance is 

transferred to the receiving property, the 

property must exist and be habitable (as 

demonstrated by a certificate of 

occupancy or like documentation). The 

numbered items below track the 

statutory criteria and, where HUD has 

been granted flexibility, establishes 

requirements and guidance on how 

HUD will assess compliance with the 

statutory factors. 

1. Number and Bedroom Size of Units 

For occupied units in the transferring 

project: The number of low-income and 

very low-income units and the 

configuration (i.e. bedroom size) 

provided by the transferring project 

shall be no less than when transferred 

to the receiving project or projects. The 

receiving owner 4 must provide detailed 

information about the number of units 

and the corresponding unit size 

occupied by low-income and very-low 

income families respectively, as well as 

the proposed number of units for low 

and very-low income families and the 

corresponding unit configuration at the 

receiving project. In determining 

compliance with this requirement, HUD 

will consider the number of units 

occupied by low and very low-income 

families and their respective unit sizes, 

as well as whether the size of the 

occupied units is appropriate for the 

family size occupying those units. The 

net dollar amount of Federal assistance 

provided to the transferring project shall 

remain the same in the receiving project 

or projects. HUD Multifamily Hub/

Program Center or Regional Center/

Satellite Office staff will verify that the 

net dollar amount of Federal assistance 

transferred remains the same in the 

receiving project or projects. 

For unoccupied units in the 

transferring project: HUD may authorize 

a reduction in the number of dwelling 

units in the receiving project or projects 

to allow for a reconfiguration of 

bedroom sizes to meet market demands, 

as demonstrated by the transferring 

owner, provided there is no increase in 

the project-based assistance budget 

authority. HUD Multifamily Hub/

Program Center or Regional Center/

Satellite Office staff will verify that the 

net dollar amount of Federal assistance 

transferred remains the same in the 

receiving project or projects. The 

transferring owner shall provide 

justification for a reduction in the 

number of dwelling units in one or more 

of the following ways: 

a. Evidence of all efforts to market the 

unit type proposed for reduction and 

evidence of the demand within the 

geographic market area for the proposed 

new unit type. The documentation may 

include evidence of the transferring 

owner’s efforts, including: 

i. Property traffic reports. 

ii. Advertising details. 

iii. Age and/or income waivers 

requested. 

iv. Local housing authority wait list 

information or other affordable housing 

provider contacts made demonstrating 

that there is minimal or no demand for 

the unit type. 

b. Documentation that the average 

vacancy at the transferring property has 

been 25 percent or more over the past 

24 months. 

c. Any other documentation that a 

reduction in the number of dwelling 

units is necessary to meet market 

demand, and approved by HUD. 

2. Physical Obsolescence or Economic 

Nonviability 

Physical obsolescence shall be shown 

in one or more of the following ways: 

a. A Real Estate Assessment Center 

(REAC) physical inspection score of 30 

or below. 

b. Two or more consecutive REAC 

physical inspection scores of below 60. 

c. Condemnation or other such notice 

by the local or state government 

rendering the property uninhabitable. 

d. A taking through eminent domain. 

e. Evidence that needed capital 

repairs cannot be made without the 

property losing financial viability. 

f. Any other proof of physical 

obsolescence provided by the owner 

and approved by HUD. 

Economic non-viability must be 

shown in one or more of the following 

ways: 

a. A market analysis justifying the 

inability of the property to meet current 

HUD-imposed affordability restrictions. 

b. A market analysis indicating 

limited to no market for the unit type(s). 

c. A demonstrated average vacancy of 

25 percent or more over the past 24 

months. 

d. Any other proof of economic nonviability provided by the owner and 

approved by HUD. 

The transferring owner is required to 

certify in writing that the material 

submitted to demonstrate compliance 

with this criterion is true and accurate. 

The Multifamily Hub/Program Center 

will review all submitted information 

and verify its accuracy. 


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16966 Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 

3. Applicable Physical Standards 

The receiving project or projects must 

have a REAC physical inspection score 

of 60 or above. If the project does not 

have a current REAC physical 

inspection score, an inspection must be 

conducted prior to the transfer and the 

project must score 60 or above or have 

a HUD-approved plan in place to correct 

any deficiencies. 

The receiving project must also meet 

all applicable accessibility 

requirements, including, but not limited 

to the accessibility requirements of the 

Fair Housing Act, section 504 of the 

Rehabilitation Act, and Title II of the 

Americans with Disabilities Act. The 

owner must provide documentation 

acceptable to HUD that the receiving 

project is in compliance with all 

applicable accessibility requirements. 

The HUD Hub/Program Center or 

Regional Center/Satellite Office will 

review the submitted documentation 

and verify acceptability. 

4. Notification and Consultation With 

Tenants and Local Governmental 

Officials 

The transferring owner must give the 

tenants and legitimate tenant 

organization(s) written notification of 

the proposed transfer and provide a 

minimum 30-day comment period. HUD 

will not accept a Section 214 request for 

any project unless the transferring 

owner has notified the tenants of the 

proposed transfer and has provided the 

tenants with an opportunity to comment 

on the proposed transfer. 

a. The notification should include the 

address and phone of the appropriate 

HUD office, including the specific 

division and/or name and phone 

number of a contact at the appropriate 

HUD office. The notification should be 

provided in appropriate formats as 

necessary to meet the needs of all, 

including persons with limited English 

proficiency and formats for persons 

with vision, hearing, and other 

communication-related disabilities (e.g., 

Braille, audio, and large type, sign 

language interpreters, assistive listening 

devices, etc.). 

b. The notification will include a 

description of the impact of the request 

on tenants’ rental assistance and tenant 

contributions. The notification must 

also explain the tenants’ relocation 

rights and responsibilities, including the 

assistance that tenants may become 

eligible to receive under the Uniform 

Relocation Act if acquisition, 

rehabilitation or demolition are 

involved (see section five below). In 

addition, the notification must inform 

the tenants that if a Section 8 projectbased rental assistance contract will be 

transferred, and it assists the unit they 

inhabit, they may be eligible for tenant 

protection vouchers if they choose not 

to relocate (see Section C below). 

c. The notice must be delivered 

directly to each unit in the project or 

mailed to each tenant and posted in at 

least 3 places/common areas throughout 

the project, including any project office. 

In a project greater than 4 stories, the 

notice may be served either by delivery 

to each unit or by posting. If the posting 

method is used, the notice must be 

posted in at least three conspicuous 

places within each building in which 

the affected dwelling units are located. 

i. The tenants (including any legal or 

other representatives acting for the 

tenants individually or as a group) have 

the right to inspect and copy the 

materials that the owner is required to 

submit to HUD for a period of 30 days 

from the date on which the notice is 

served to the tenants. Any tenant 

comments must be available in the 

project office during normal business 

hours for public reading and copying. 

ii. The tenants have the right, during 

this period, to submit written comments 

on the transfer to the transferring owner 

and the appropriate HUD office. Tenant 

representatives may assist tenants in 

preparing these comments. 

d. The transferring owner must hold 

a meeting with the tenants and 

legitimate tenant organizations to 

discuss the details of the notification 

and answer questions. 

e. Upon completion of the tenant 

comment period, the transferring owner 

must review the comments submitted by 

the tenants and their representatives 

and prepare a written evaluation of the 

comments. Any negative comments 

must be addressed. The transferring 

owner must then submit the following 

materials to the appropriate HUD office 

at the time of submission of the request 

for transfer under Section 214: 

i. A copy of the transferring owner’s 

Notification to the tenants; 

ii. A sign-in sheet from the tenant 

meeting; 

iii. A copy of all the tenant comments; 

iv. The transferring owner’s 

evaluation of the tenant comments and 

any responses the owner gave to 

negative comments; and 

v. A certification by the transferring 

owner that it has complied with all of 

the requirements of 24 CFR 245.410, 

245.415, 245.416 through 245.419, as 

applicable, and 245.420. The 

transferring owner must identify any 

Fair Housing litigation settlement 

agreements, voluntary compliance 

agreements, or other remedial 

agreements signed by the owner and 

HUD. The Office of Fair Housing and 

Equal Opportunity (FHEO) will ensure 

there is no conflict between the 

agreements and the proposed transfer. If 

there is a conflict, the transferring 

owner may propose modifications to the 

remedial agreement as part of the 

transfer proposal. 

The owner must also provide a 

certification of approval from the 

relevant local government officials, 

which may include but are not limited 

to the: 

a. Local Mayor. 

b. City Council. 

c. Planning Commission. 

d. Health and Human Services 

Commission. 

e. Any other pertinent local 

government official or government 

body. 

Although in some cases, a 

certification of approval may be 

required from multiple local 

governmental officials, there must be at 

least one certification of approval from 

at least one local government official in 

all cases to warrant approval of a 

request for transfer of assistance, debt, 

or use restrictions. 

5. Relocation of Tenants 

The tenants of the transferring project 

who remain eligible to receive 

assistance will not be required to vacate 

their units in the transferring project 

until new units in the receiving project 

are available for occupancy. If tenants 

must move as a direct result of 

acquisition, rehabilitation or demolition 

in connection with a transfer of 

assistance under Section 214, the 

Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 

1970, as amended (URA) may apply. 

HUD will review tenant relocations 

and protections on a case-by case-basis 

to ensure tenants are protected from 

permanent displacement. Under no 

circumstances shall the residents pay 

for any relocation costs incurred as a 

result of the transfer and the resulting 

move to the receiving property. It is 

within the owner’s discretion whether 

to pay relocation costs for relocations to 

locations other than the receiving 

property. A Section 214 transaction 

where the tenants’ relocation expenses 

are not paid, will not be approved by 

HUD. 

6. Best Interest of the Tenants 

HUD will determine that the transfer 

is in the best interest of the tenants 

based on criteria including, but not 

limited to, the following: 

a. The transfer will preserve 

affordable and/or assisted housing in a 


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Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 16967 

market area in need of such assistance/ 

affordability. 

b. The transfer complies with section 

C of this notice. The site and 

neighborhood requirements ensure that 

the receiving property is in a location 

that affords the tenants at the 

transferring property the same or a 

better property location than the 

transferring site. 

c. All current tenants will receive the 

same level of assistance they are 

currently receiving. Tenants that move 

from the transferring project to the 

receiving project remain subject to their 

existing lease requirements and all 

occupancy rules. The receiving owner 

may not seek to terminate the lease of 

a tenant from the transferring project for 

actions that occurred prior to the 

Section 214 transfer but the tenant will 

be subject to ongoing eligibility 

requirements for actions that occur after 

the transfer. Any eviction procedures 

currently underway at the transferring 

project will not be affected by the 

transfer of budget authority. 

d. In scenarios where a Section 8 HAP 

contract will be transferred, and a tenant 

assisted by the HAP contract objects to 

relocating to the receiving property, the 

tenant may be eligible to receive a 

tenant protection voucher, subject to the 

availability of appropriations. A tenant 

may receive a TPV, if they meet the 

eligibility requirements for voucher 

assistance and the unit that they 

currently reside in is supported by a 

Section 8 project-based rental assistance 

contract that is subject to transfer as part 

of the Section 214 transfer. The owner 

will notify the tenant of their potential 

eligibility to receive a TPV at the time 

of tenant notification and subsequently 

notify the Multifamily Hub/PC 

regarding how many TPVs are 

requested. If TPVs are needed, the 

Multifamily Hub/PC should work with 

the Public and Indian Housing (PIH) 

field office to follow the procedures 

outlined in PIH Notice 2001–41. 

e. To determine if the Section 214 

transfer is in the best interest of the 

tenants, the transferring owner must 

provide documentation that all tenants 

residing at the property at the time of 

the transfer are relocating to a property 

of greater economic solvency or better 

physical condition, or accepting a 

tenant protection voucher to move to a 

property that best meets their housing 

needs. 

f. If the transferring property is not 

fully assisted by a Section 8 projectbased rental assistance contract, HUD 

will approve or disapprove the transfer 

based upon its review of the information 

submitted and all tenant comments 

received. 

g. If the transferring property is not 

fully assisted by a Section 8 projectbased rental assistance contract, the 

transfer will only be approved if: 

i. There are no tenants at the 

transferring property; or 

ii. The property is occupied but the 

transfer will be to an immediately 

adjacent property; or 

iii. The unassisted tenants would 

have to move in the absence of the 

Section 214 transfer (e.g., the site is 

contaminated, the property is or will be 

condemned, the property is being taken 

via eminent domain, etc.); or 

iv. The transfer involves a 202 Direct 

Loan or a 202/811 Capital Advance or 

PRAC contract that must be transferred 

as a result of a state’s response to the 

Olmstead Decision or state Medicaid/

Medicare policies on congregate 

housing make it economically 

impossible to continue operating the 

property as originally conceived. 

h. If the tenants must be relocated, 

they will/did receive the protections 

provided under the URA, or other 

assistance if the URA is not triggered. 

No tenants will be displaced as a result 

of the transfer. 

7. Subordination of Liens 

To demonstrate compliance, the 

receiving owner must submit one or 

more of the following as documentation: 

a.Verification from the FHA lender 

that any lien on the receiving project is 

subordinate to any FHA-insured 

mortgage lien. 

b. Other documentation as applicable. 

A receiving owner may submit a 

waiver request if the receiving owner 

believes it is necessary that a lien(s) not 

be subordinate to the FHA insured 

mortgage to facilitate the financing of 

acquisition, construction, or 

rehabilitation of the receiving project or 

projects. Such a request must 

demonstrate that the waiver is necessary 

to finance the transaction and that there 

is minimal risk to the FHA as a result 

of the waiver. HUD must approve all 

waiver requests. 

8. Use Restrictions 

If a use restriction is in place at the 

receiving project, the receiving owner 

must sign a new or amended use 

restriction that includes all income and 

eligibility restrictions of the transferring 

use restriction and runs for the duration 

of the transferring project’s existing use 

restriction or the use restriction at the 

receiving project, whichever is longer. 

9. No Increased FHA-Insured Mortgage 

Costs 

Transfers must not increase the cost 

(as defined in section 502 of the 

Congressional Budget Act of 1874) of 

any FHA-insured mortgage. HUD will 

consider the transfer of an FHA-insured 

mortgage, or Secretary-held formerly 

insured mortgage that is subsidized 

under either Section 221(d)(3)–(d)(5) 

with below market interest rates or 

Section 236. In addition, in order to 

avoid a claim against the General 

Insurance Fund, HUD may approve the 

transfer of a non-subsidized FHAinsured mortgage in combination with 

the transfer of a project-based rental 

assistance contract and/or a use 

restriction to a receiving project. 

However, HUD will only consider the 

transfer of a non-subsidized FHAinsured mortgage when the transferring 

project is in danger of imminent default 

on its FHA-insured mortgage due to a 

finding that the project is physically 

obsolete and/or economically nonviable 

in compliance with the criteria and 

process set forth in this notice. 

C. Site and Neighborhood Standards for 

the Receiving Property 

1. Transfers that involve Section 202 

assistance must comply with the site 

and neighborhood requirements at 24 

CFR 891.125. 

2. Transfers that involve Section 811 

assistance must comply with the site 

and neighborhood requirements at 24 

CFR 891.125 and 24 CFR 891.320. 

3. All other receiving sites must 

comply with the site and neighborhood 

requirements below. The receiving 

owner must submit the address of the 

proposed property with their proposal 

and HUD will determine whether the 

site meets the following requirements: 

a. The site and neighborhood is 

suitable from the standpoint of 

facilitating and furthering full 

compliance with the applicable 

provisions of Title VI of the Civil Rights 

Act of 1964, Title VIII of the Civil Rights 

Act of 1968, Executive Order 11063, and 

HUD regulations issued pursuant 

thereto. 

b. The neighborhood must not be one 

that is seriously detrimental to family 

life or in which substandard dwellings 

or other undesirable conditions 

predominate, unless there is actively in 

progress a concerted program to remedy 

the undesirable conditions. 

c. The housing must be accessible to 

social, recreational, educational, 

commercial, and health facilities and 

services, and other municipal facilities 

and services that are at least equivalent 

to those typically found in 

neighborhoods consisting largely of 

unassisted, standard housing of similar 

market rents. 

d. If the receiving project is new 

construction, and is not covered by the 


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existing regulations cited above for 

Section 202/811 properties, it may not 

be located in a racially mixed area if the 

project will cause a significant increase 

in the proportion of minority to 

nonminority residents in the area and 

may not be located in an area of 

minority concentration. If HUD 

determines that the receiving project 

will be located in an area of minority 

concentration, the receiving Owner 

must submit supporting data (e.g. 

census data, evidence of local 

revitalization efforts, etc.) in order for 

HUD to determine that they meet one of 

the exceptions below: 

i. Sufficient, comparable 

opportunities exist for housing for 

minority households in the income 

range to be served by the proposed 

project, outside areas of minority 

concentration. Sufficient does not 

require that in every locality there be an 

equal number of assisted units within 

and outside of areas of minority 

concentration. Rather, application of 

this standard should produce a 

reasonable distribution of assisted units 

each year which over a period of several 

years will approach an appropriate 

balance of housing opportunities within 

and outside areas of minority 

concentration. An appropriate balance 

in any jurisdiction must be determined 

in light of local conditions affecting the 

range of housing choices available for 

very low-income minority households 

and in relation to the racial mix of the 

locality’s population. 

(A) Units may be considered to be 

comparable opportunities if they have 

the same household type and tenure 

type (owner/renter), require 

approximately the same total tenant 

payment, serve the same income group, 

are located in the same housing market, 

and are in standard condition. 

(B) Application of this sufficient, 

comparable opportunities standard 

involves assessing the overall impact of 

HUD-assisted housing on the 

availability of housing choices for very 

low-income minority households, in 

and outside areas of minority 

concentration, and must take into 

account the extent to which the 

following factors are present, along with 

any other factor relevant to housing 

choice: 

(1) A significant number of assisted 

housing units are available outside areas 

of minority concentration. 

(2) There is significant integration of 

assisted housing projects constructed or 

rehabilitated in the past ten years, 

relative to the racial mix of the eligible 

population. 

(3) There are racially integrated 

neighborhoods in the locality. 

(4) Programs are operated by the 

locality to assist minority households, 

as applicable, that wish to find housing 

outside areas of minority concentration. 

(5) Minority households have 

benefitted from local activities (e.g., 

acquisition and write-down of sites, tax 

relief programs for homeowners, 

acquisitions of units for use as assisted 

housing units) undertaken to expand 

choice for minority households (or 

families) outside of areas of minority 

concentration. 

(6) A significant proportion of 

minority households, have been 

successful in finding units in 

nonminority areas under the Section 8 

Certificate and Housing Voucher 

programs. 

(7) Comparable housing opportunities 

have been made available outside areas 

of minority concentration through other 

programs. 

ii. The project is necessary to meet 

overriding housing needs that cannot be 

met in that housing market area. 

Application of the overriding housing 

needs criterion, for example, permits 

approval of sites that are an integral part 

of an overall local strategy for the 

preservation or restoration of the 

immediate neighborhood and of sites in 

a neighborhood experiencing significant 

private investment that is demonstrably 

changing the economic character of the 

area (a ‘‘revitalizing area’’). An 

overriding housing need, however, may 

not serve as the basis for determining 

that a site is acceptable if the only 

reason the need cannot otherwise be 

feasibly met is that discrimination on 

the basis of race, color, creed, sex, or 

national origin renders sites outside 

areas of minority concentration 

unavailable, or if the use of this 

standard in recent years has had the 

effect of circumventing the obligation to 

provide housing choice. 

4. All Section 214 transactions 

(including those involving Section 202/ 

811 properties) will be reviewed by 

HUD’s Office of Policy Development 

and Research to assess whether there is 

sufficient demand for affordable rental 

housing in the receiving market area 

and to ensure that the transfer does not 

occur in neighborhoods with highly 

concentrated poverty. 

Inter-Fair Market Rent (FMR) area transfers Intra-Fair Market Rent (FMR) area transfers 

For Inter-FMR Area transfers, there can be two 

types: (1) Transferring to a new metropolitan 

(metro) area; or (2) transferring to a new nonmetro county.

For Intra-FMR transfers, there can be three types: (1) 

Within a metro area to a new neighborhood (Small 

Area Fair Market Rent (SAFMR)/Zip); (2) within a 

metro area, in the same neighborhood (SAFMR/Zip 

code); and (3) within a non-metro county. 

New Metro Neighborhood ........... For moves into a metro area, the receiving property’s 

neighborhood must be in a SAFMR area with a 

poverty rate of less than 30 percent, unless: 

a. The receiving property is in a neighborhood 

receiving a Choice Neighborhoods Grant or is 

part of a significant state or local revitalization 

initiative that will result in new construction 

and substantial rehabilitation of mixed income 

housing; or 

b. The receiving property is in a SAFMR area 

with a poverty rate between 30 and 40 percent; and either: 

1. Housing market activity within the SAFMR 

Within a metro area to a new neighborhood (SAFMR/

Zip code), the receiving property’s neighborhood 

must be in a SAFMR area with a poverty rate of 

less than 30 percent, unless: 

a. The receiving property is in a neighborhood 

receiving a Choice Neighborhoods Grant or is 

part of a significant state or local revitalization 

initiative that will include and result in new 

construction and substantial rehabilitation of 

mixed income housing; or 

b. The receiving property is in a SAFMR area 

with a poverty rate between 30 and 40 percent; and either 


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Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 16969 

Inter-Fair Market Rent (FMR) area transfers Intra-Fair Market Rent (FMR) area transfers 

area would indicate that the area is revitalizing; or 

2. The poverty rate has seen significant recent decline.

1. The proposed receiving site has a higher 

SAFMR than the current site; or 

2. The proposed receiving site is considered 

immediately adjacent (within 1⁄2 mile) to 

the current site; or 

3. Housing market activity within the SAFMR 

area would indicate that the area is revitalizing; or 

4. The poverty rate has seen significant recent decline. 

Old Metro Neighborhood ............. N/A: By definition a transfer to a new FMR area will 

be a transfer to a new neighborhood.

Within a metro area, and in the same neighborhood 

(SAFMR/Zip code), the receiving property’s neighborhood must be in a SAFMR area with a poverty 

rate of less than 30 percent, unless: 

a. The receiving property is in a neighborhood 

receiving a Choice Neighborhoods Grant or is 

part of a significant state or local revitalization 

initiative that will result in new construction 

and substantial rehabilitation of mixed income 

housing; or 

b. The SAFMR area is between 30 and 40 percent and at least 50 percent of the units at the 

receiving property are unassisted and either: 

1. The proposed receiving site is considered 

immediately adjacent (within 1⁄2 mile) to 

the current site; or 

2. Housing market activity within the SAFMR 

area would indicate that the area is revitalizing; or 

3. The poverty rate has seen significant recent decline. 

Non-Metro ................................... For moves to a non-metro county, the receiving property must be in a county that has a poverty rate 

less than 30 percent, unless: 

The county poverty rate is between 30 and 40 

percent, and: 

1. The housing market activity within the 

county would indicate that the area is revitalizing; or 

2. The poverty rate has seen significant recent decline; or 

3. The transaction is part of a statewide 

portfolio preservation strategy operated by 

a Housing Finance Agency or is part of a 

significant state or local revitalization initiative that will result in new construction 

and substantial rehabilitation of mixed income housing.

Within the same non-metro county, the receiving 

property must be in a county that has a poverty 

rate of less than 30 percent, unless: 

The county poverty rate is between 30 and 40 

percent and: 

1. The housing market activity within the 

county would indicate that the area is revitalizing; or 

2. The poverty rate has seen significant recent decline; or 

3. The transaction is part of a statewide 

portfolio preservation strategy operated by 

a Housing Finance Agency or is part of a 

significant state or local revitalization initiative that will result in new construction 

and substantial rehabilitation of mixed income housing. 

D. Additional Requirements of the 

Receiving Owner Prior to Approval 

The submission to HUD requesting a 

transfer under Section 214 must include 

the following information from the 

receiving owner: 

1. Written confirmation of acceptance 

of the Housing Assistance Payments 

(HAP) contract, Use Agreement, and/or 

debt, as applicable, and confirmation 

that the transfer is warranted by local 

demand for affordable housing. 

2. If the transfer involves projectbased section 8 assistance, written 

evidence that the transfer of the HAP 

contract is warranted by local demands 

for affordable housing. Supporting 

documentation may include a market 

analysis showing eligible families in the 

area, a list of current tenants who are 

eligible for Section 8 assistance, or 

prospective tenants on waiting lists. 

3. If applicable, a written tenant 

selection plan, Tenant Relocation Plan 

and an Affirmative Fair Housing 

Marketing Plan approved by HUD. 

4. A narrative detailing the capacity of 

the proposed owner and management 

agent of the receiving property to own, 

operate, manage, and if applicable, 

renovate affordable housing. 

5. The receiving owner must not be 

subject to any of the following actions 

that have not been resolved to HUD’s 

satisfaction: (1) A charge from HUD 

concerning a systemic violation of the 

Fair Housing Act or a cause 

determination from a substantially 

equivalent state or local fair housing 

agency concerning a systemic violation 

of a substantially equivalent state or 

local fair housing law proscribing 

discrimination because of race, color, 

religion, sex, national origin, disability, 

or familial status; and (2) A Fair 

Housing Act lawsuit filed by the 

Department of Justice alleging a pattern 

or practice of discrimination or denial of 

rights to a group of persons raising an 

issue of general public interest pursuant 

to 42 U.S.C. 3614(a); or (3) A letter of 

finding identifying systemic 

noncompliance under Title VI of the 

Civil Rights Act of 1964, Section 504 of 

the Rehabilitation Act of 1973, or 

Section 109 of the Housing and 

Community Development Act of 1974. 

HUD will determine if actions to resolve 

the charge, cause determination, 

lawsuit, or letter of findings are 

sufficient to resolve the matter. 


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16970 Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Rules and Regulations 

Examples of actions that would 

normally be considered sufficient to 

resolve the matter include, but are not 

limited to, current compliance with: 

a. A voluntary compliance agreement 

(VCA) signed by all the parties; 

b. A HUD-approved conciliation 

agreement signed by all the parties; 

c. A conciliation agreement signed by 

all the parties and approved by the state 

governmental or local administrative 

agency with jurisdiction over the matter; 

d. A consent order or consent decree; 

or 

e. A final judicial ruling or 

administrative ruling or decision. 

6. Documentation to assist HUD in an 

environmental review of the transfer 

request in accordance with 

environmental regulations and 

requirements at 24 CFR part 50. HUD 

will conduct the environmental review 

as required by part 50 prior to approving 

a transfer. HUD will document 

compliance on Form HUD–4128, 

‘‘Environmental Assessment and 

Compliance Findings for the Related 

Laws.’’ Applicants are responsible for 

submitting environmental information 

and reports, and should use Chapter 9 

of the MAP Guide and the HUD 

Environmental Review Web site 

(available at https://www.onecpd.info/

environmental-review/) for guidance on 

environmental review information 

requirements. If the transfer is to a site 

that is currently HUD-assisted, HUDinsured or HUD-held, a new Phase I 

Environmental Site Assessment (ESA) 

in accordance with ASTM E 1527–13 (or 

the most recent edition), including a 

Vapor Encroachment Screen in 

accordance with ASTM E 2600–10 (or 

the most recent edition), is not required, 

unless the transfer involves: 

a. Significant ground disturbance 

(digging) or construction not 

contemplated in the original application 

or incompatible with current 

engineering or institutional controls; 

b. Site expansion or addition; 

c. Transfer to a site for which a Phase 

I ESA in accordance with ASTM E 

1527–05 (or a more recent edition) has 

not been prepared previously; or 

d. Any other activities which may 

result in contaminant exposure 

pathways not contemplated in the 

original application or incompatible 

with current engineering or institutional 

controls. 

After a request has been submitted to 

HUD, the requestor and other 

participants in the proposed transfer, 

including owners and contractors on the 

receiving project, may not undertake or 

commit funds for acquisition, 

rehabilitation, conversion, or 

construction of the receiving property 

until HUD has completed the 

environmental review and notified the 

requestor that the transfer to the 

receiving property is acceptable. 

E. Post Approval Requirements 

Once HUD has received and reviewed 

the materials above and approved the 

transfer under Section 214, the owner of 

the receiving project must do the 

following as applicable: 

1. If there is a use restriction at the 

transferring property, sign a new or 

amended use restriction that includes 

all income and eligibility restrictions of 

the transferring use restriction and runs 

for the duration of the transferring 

project’s existing use restriction or the 

use restriction at the receiving project, 

whichever is longer. 

2. If the transfer involves project 

based section 8 assistance, renew the 

HAP contract for a 20-year term at the 

time of the transfer and attach the 

Preservation Exhibit agreeing to the 

automatic renewal of the Section 8 HAP 

contract at the end of the 20-year term, 

subject to annual appropriations, for a 

minimum of the time remaining on the 

HAP contract that was in effect prior to 

the transfer under Section 214. 

3. Receive approval through the 

Previous Participation Process including 

a 2530 review. The receiving owner 

must be in compliance with all business 

agreements for the receiving project and 

for any other HUD insured or assisted 

projects owned. 

4. Comply with all Departmental 

statutes, regulations, policies and 

procedures related to any assignment or 

amendment of a Section 8 HAP contract 

or other project-based rental assistance 

contract, required modification of loan 

documents and legal descriptions, or 

other necessary changes as a result of a 

Section 214 transfer. 

F. Environmental Review 

A Finding of No Significant Impact 

(FONSI) with respect to the 

environment has been made for this 

notice in accordance with HUD 

regulations at 24 CFR part 50, which 

implement section 102(2)(C) of the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4332(2)(C)). The FONSI 

is available for public inspection 

between 8 a.m. and 5 p.m. weekdays in 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street SW., Room 10276, 

Washington, DC 20410–0500. Due to 

security measures at this HUD 

Headquarters Building, an advance 

appointment to review the FONSI must 

be scheduled by calling the Regulations 

Division at 202–708–3055 (not a toll free 

number). 

G. Information Collection Requirements 

The information collection 

requirements contained in this 

document 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– 

0608. In accordance with the Paperwork 

Reduction Act, HUD 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. 

H. Implementation 

This notice will become effective 

April 30, 2015. HUD will begin 

accepting requests for transfers pursuant 

to this notice on or after the effective 

date. For questions regarding the 

submission or status of a transfer 

request, interested parties should 

contact their HUD Multifamily Hub/

Program Center. The list of HUD 

Multifamily Hubs and Program Centers 

is available at: http://portal.hud.gov/

hudportal/HUD?src=/program_offices/

housing/mfh/hsgmfbus/abouthubspcs. 

Dated: March 17, 2015. 

Biniam Gebre, 

Acting Assistant Secretary for Housing— 

Federal Housing Commissioner. 

[FR Doc. 2015–06776 Filed 3–30–15; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9716 ] 

RIN 1545–BI65 

Certain Employee Remuneration in 

Excess of $1,000,000 Under Internal 

Revenue Code Section 162(m) 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations relating to the deduction 

limitation for certain employee 

remuneration in excess of $1,000,000 

under the Internal Revenue Code 

(Code). These regulations affect publicly 

held corporations. 

DATES: 

Effective date: These regulations are 

effective on April 1, 2015. 

Applicability date: For dates of 

applicability, see § 1.162–27(j)(2)(vi). 


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