Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 18095 

1Although the Section 235 Program was 

terminated, section 401(d) of the Housing and 

Community Development Act of 1987 permitted the 

Secretary to continue to refinance mortgages 

insured previously under section 235(r) of the 

National Housing Act. However, no insurance or 

assistance for new loans has been provided by HUD 

since October 1, 1989. 

Ave., Bldg. 71, Rm. 3103, Silver Spring, 

MD 20993–0002. 

■ 72. Section 1271.350 is amended: 

■ a. In the first sentence of paragraph 

(a)(5) by removing the words ‘‘Center for 

Biologics Evaluation and Research 

(HFM–210), Food and Drug 

Administration, 1401 Rockville Pike, 

Suite 200N, Rockville, MD 20852–1448’’ 

and by adding in their place ‘‘Food and 

Drug Administration, Center for 

Biologics Evaluation and Research, 

Document Control Center, 10903 New 

Hampshire Ave., Bldg. 71, Rm. G112, 

Silver Spring, MD 20993–0002’’; and 

■ b. By revising paragraph (b)(3) to read 

as follows: 

§ 1271.350 Reporting. 

* * * * * 

(b) * * * 

(3) You must report each such 

HCT/P deviation that relates to a core 

CGTP requirement on Form FDA 3486 

within 45 days of the discovery of the 

event either electronically using the 

Center for Biologics Evaluation and 

Research electronic Web-based 

application or by mail to the Food and 

Drug Administration, Center for 

Biologics Evaluation and Research, 

Document Control Center, 10903 New 

Hampshire Ave., Bldg. 71, Rm. G112, 

Silver Spring, MD 20993–0002. 

Dated: March 23, 2015. 

Leslie Kux, 

Associate Commissioner for Policy. 

[FR Doc. 2015–07268 Filed 4–2–15; 8:45 am] 

BILLING CODE 4164–01–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 200 and 235 

[Docket No. FR–5829–F–01] 

Federal Housing Administration (FHA): 

Removal of Section 235 Home 

Ownership Program Regulations 

AGENCY: Office of the Assistant 

Secretary for Housing, Federal Housing 

Commissioner, HUD. 

ACTION: Final rule. 

SUMMARY: Through this rule, HUD 

removes the regulations for its Section 

235 Program, which authorized HUD to 

provide mortgage subsidy payments to 

lenders to assist lower-income families 

who are unable to meet the credit 

requirements generally applicable to 

FHA mortgage insurance programs. 

Authority to provide insurance to 

mortgagees under this program was 

terminated under the Housing and 

Community Development Act of 1987 

and HUD has not provided new 

mortgage subsidy payments under this 

program since then. Because the 

regulations governing this program are 

no longer operative, they are being 

removed by this final rule. To the extent 

that any Section 235 mortgages remain 

in existence, or second mortgages for the 

recapture of subsidy payment pursuant 

to HUD’s regulations governing the 

Section 235 Program (which was 

reserved by regulatory streamlining in 

1995), the removal of these regulations 

does not affect the requirements for 

transactions entered into when Section 

235 Program regulations were in effect. 

Assistance made available under the 

Section 235 Program will continue to be 

governed by the regulations that existed 

immediately before the effective date of 

this final rule. 

DATES: Effective May 4, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Camille E. Acevedo, Associate General 

Counsel for Legislation and Regulations, 

Office of General Counsel, Department 

of Housing and Urban Development, 

451 7th Street SW., Room 10276, 

Washington, DC 20410; telephone 202– 

708–1793 (this is not a toll-free 

number). Persons with hearing or 

speech impairments may access this 

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

8389. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On August 1, 1968, the Housing and 

Urban Development Act of 1968 (Pub. L. 

90–448) amended the National Housing 

Act to add a new section 235 (12 U.S.C. 

1715z) (Section 235 Program). This 

provision authorized the Secretary to 

provide subsidies to reduce mortgage 

interest rates to as low as 1 percent and 

authorized a new credit assistance 

homeownership program for lowerincome families who were unable to 

meet the credit requirements generally 

applicable to FHA mortgage insurance 

programs. HUD promulgated regulations 

implementing the Section 235 Program 

on January 6, 1976 (see 41 FR 1176) and 

codified these regulations in part 235 of 

title 24 of the Code of Federal 

Regulations (CFR). However, on 

February 5, 1988, the Section 235 

Program was terminated under section 

401(d) of the Housing and Community 

Development Act of 1987 (Pub. L. 100– 

242) and HUD ceased to make mortgage 

subsidy payments available under this 

program beginning October 1, 1989.1 In 

1995, HUD removed much of part 235 

from the CFR as part of HUD’s effort to 

eliminate outdated, obsolete, or 

unutilized regulations, leaving only the 

parts that were necessary to regulate 

outstanding loans assisted or insured 

under the program. (See 60 FR 56498.) 

As of the date of this publication, there 

are only two outstanding loans 

remaining that were assisted or insured 

under this program. 

This Final Rule 

Since authority for HUD to provide 

assistance or insurance to low-income 

borrowers under the Section 235 

Homeownership Program expired on 

October 1, 1989, HUD is proceeding to 

remove Section 235 Program regulations 

codified in 24 CFR part 235. 

Loans issued with assistance provided 

under Section 235 that are still 

outstanding will continue to be 

governed by the regulations in effect on 

May 3, 2015. Accordingly, this rule 

amends § 1301 (Expiring Programs— 

Savings Clause) of 24 CFR 200, subpart 

W (Administrative Matters), and adds a 

new paragraph (g) to § 200.1301, which 

preserves the Section 235 Program 

regulations as in effect prior to the 

effective date of this final rule, and 

continues to govern any assistance 

provided under the Section 235 Program 

before May 4, 2015. 

II. Justification for Final Rulemaking 

HUD generally publishes a rule for 

public comment before issuing a final 

rule for effect, in accordance with 

HUD’s own regulations on rulemaking 

in 24 CFR part 10. However, part 10 

provides for exceptions to the general 

rule if the agency finds good cause to 

omit advance notice and public 

participation. The good cause 

requirement is satisfied when prior 

public procedure is impracticable, 

unnecessary, or contrary to the public 

interest. (See 24 CFR 10.1.) 

HUD finds that public notice and 

comment are not necessary for this 

rulemaking because assistance is no 

longer being provided under this 

program and, therefore, the regulations 

are no longer operative. For these 

reasons, HUD has determined that it is 

unnecessary to delay the effectiveness of 

this rule in order to solicit prior public 

comment. 


asabaliauskas on DSK5VPTVN1PROD with RULES
18096 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 

2 2 U.S.C. 1532. 

3 2 U.S.C. 1534. 

4 2 U.S.C. 1532(a). 

III. Findings and Certification 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. Because HUD 

has determined that good cause exists to 

issue this rule without prior public 

comment, this rule is not subject to the 

requirement to publish an initial or final 

regulatory flexibility analysis under the 

RFA as part of such action. 

Unfunded Mandates Reform 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 2

requires that an agency prepare a 

budgetary impact statement before 

promulgating a rule that includes a 

Federal mandate that may result in the 

expenditure by state, local and tribal 

governments, in the aggregate, or by the 

private sector of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of 

UMRA also requires an agency to 

identify and consider a reasonable 

number of regulatory alternatives before 

promulgating a rule.3 However, the 

UMRA applies only to rules for which 

an agency publishes a general notice of 

proposed rulemaking pursuant to the 

APA.4 As discussed above, HUD has 

determined for good cause that the APA 

does not require general notice and 

public comment on this rule and, 

therefore, the UMRA does not apply to 

this final rule. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either imposes 

substantial direct compliance costs on 

state and local governments and is not 

required by statute, or the rule preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. This 

final rule will not have federalism 

implications and would not impose 

substantial direct compliance costs on 

state and local governments or preempt 

state law within the meaning of the 

Executive Order. 

Environmental Review 

This final rule does not direct, 

provide for assistance or loan and 

mortgage insurance for, or otherwise 

govern, or regulate, real property 

acquisition, disposition, leasing, 

rehabilitation, alteration, demolition, or 

new construction, or establish, revise or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this final rule 

is categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

List of Subjects 

24 CFR Part 200 

Administrative practice and 

procedure, Claims, Equal employment 

opportunity, Fair housing, Home 

improvement, Housing standards, 

Incorporation by reference, Lead 

poisoning, Loan programs—housing and 

community development, Minimum 

property standards, Mortgage insurance, 

Organization and functions 

(Government agencies), Penalties, 

Reporting and recordkeeping 

requirements, Social security, 

Unemployment compensation, Wages. 

24 CFR Part 235 

Condominiums, Cooperatives, Grant 

programs—housing and community 

development, Low and moderate 

income housing, Mortgage insurance, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, and under the authority of 42 

U.S.C. 3535(d), HUD amends 24 CFR 

parts 200 and 235 as follows: 

PART 200—INTRODUCTION TO FHA 

PROGRAMS 

■ 1. The authority citation for part 200 

continues to read as follows: 

Authority: 12 U.S.C. 1702–1715z–21; 42 

U.S.C. 3535(d). 

■ 2. Add § 200.1301(g) to read as 

follows: 

§ 200.1301 Expiring programs—Savings 

clause. 

* * * * * 

(g) Any existing loan assistance 

(including recapture of loan assistance), 

ongoing participation, or insured loans 

under the program listed in this 

paragraph will continue to be governed 

by the regulations in effect as they 

existed immediately before May 4, 2015 

(24 CFR part 235, 2014 Edition): 

(1) Part 235, Mortgage Insurance and 

Assistance Payments for Home 

Ownership and Project Rehabilitation 

(12 U.S.C. 1715z). 

(2) [Reserved] 

PART 235—[Removed] 

■ 3. Remove part 235. 

Dated: March 27, 2015. 

Biniam Gebre, 

Acting Assistant Secretary for Housing— 

Federal Housing Commissioner. 

[FR Doc. 2015–07597 Filed 4–2–15; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9717] 

RIN 1545–BL77 

Allocation of Controlled Group 

Research Credit 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations relating to 

the allocation of the credit for increasing 

research activities (research credit) to 

corporations and trades or businesses 

under common control (controlled 

groups)... This document also contains 

final and temporary regulations relating 

to the allocation of the railroad track 

maintenance credit and the election for 

a reduced research credit. The text of 

these temporary regulations also serves 

as the text of the proposed regulations 

(REG–133489–13) published in the 

Proposed Rules section in this issue of 

the Federal Register. 

DATES: Effective date: These regulations 

are effective April 3, 2015. 

Applicability date: For dates of 

applicability, see §§ 1.41–6T(j), 1.45G– 

1T(g), and 1.280C–4T(c). 

FOR FURTHER INFORMATION CONTACT: 

James Holmes, at (202) 317–4137; (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final and 

temporary regulations for § 1.41–6, 

§ 1.45G–1, and § 1.280C–4 of the Income 

Tax Regulations (26 CFR part 1). These 

regulations update the rules in a manner 

that is consistent with the amendments 

made to section 41(f)(1)(A)(ii) and 

section 41(f)(1)(B)(ii) in Section 301(c) 

of the Act. 


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