15346 Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Proposed Rules

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

24 CFR Parts 882 and 982

[Docket No. FR–4159–P–01]

RIN 2577–AB72

Implementing Provisions of the

Housing Opportunity Program

Extension Act of 1996; and Revising

Section 8 Certificate, Voucher, and

Moderate Rehabilitation Admission

and Occupancy Policies

AGENCY: Office of the Assistant

Secretary for Public and Indian

Housing, HUD.

ACTION: Proposed rule.

SUMMARY: This proposed rule would

amend the admission and occupancy

requirements for the Section 8 Rental

Certificate, Rental Voucher, and

Moderate Rehabilitation Programs as

follows: Make certain applicants

ineligible for admission if evicted from

housing assisted under the United

States Housing Act of 1937; Terminate

assistance to tenant-based certificate

and voucher participants evicted for

serious lease violations; Screen out

illegal drug users and alcohol abusers;

and Terminate assistance to illegal drug

users and alcohol abusers.

DATES: Comment due date: May 30,

1997.

ADDRESSES: Interested persons are

invited to submit comments regarding

this proposed rule to the Rules Docket

Clerk, Office of General Counsel, Room

10276, Department of Housing and

Urban Development, 451 Seventh Street,

SW, Washington, DC 20410.

Communications should refer to the

above docket number and title.

Facsimile (FAX) comments are not

acceptable. A copy of each

communication submitted will be

available for public inspection and

copying between 7:30 a.m. and 5:30

p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT:

Madeline Hastings, Associate Deputy

Assistant Secretary for the Office of

Public and Assisted Housing

Operations, Room 4228, Department of

Housing and Urban Development, 451

Seventh Street, SW, Washington, DC

20410; telephone number (202) 708–

1842. (This telephone number is not

toll-free.) For hearing- and speechimpaired persons, this number may be

accessed via text telephone (TTY) by

calling the Federal Information Relay

Service at (800) 877–8339.

SUPPLEMENTARY INFORMATION:

I. Statutory Change and Related Change

to Bar Admission of Certain Evicted

Tenants

The statutory foundation for the

Section 8 program is the United States

Housing Act of 1937 (42 U.S.C. 1437a et

seq.) (the Act). On March 28, 1996, the

Act was amended by the Housing

Opportunity Program Extension Act of

1996 (Pub. L. 104–120; 110 Stat. 834)

(the Extension Act). It makes an

individual who has been evicted from

housing assisted under the United

States Housing Act of 1937 (public

housing, Indian housing, Section 23, or

any Section 8 program) for drug-related

criminal activity ineligible for

admission to Section 8 housing for a 3-

year period beginning from the date of

the eviction. The Public Housing

Agency (HA) has the discretion,

however, to determine that the evicted

individual’s family is eligible for

admission if the HA determines that the

evicted individual has successfully

completed a rehabilitation program

approved by the HA or that the

circumstances leading to the eviction no

longer exist (e.g., the individual

involved in drugs is no longer in the

household because of incarceration). In

this proposed rule, HUD would

interpret the 3-year period to be at least

3 years, so that an HA can determine the

period of time it believes reasonable for

particular types of drug-related criminal

activity, as long as that period is at least

3 years long.

The Extension Act also requires HAs

to establish standards for prohibiting

occupancy in any Section 8 unit by any

person who the HA determines is

illegally using a controlled substance, or

whose pattern of illegal use of a

controlled substance or pattern of

alcohol abuse would interfere with the

health, safety, or right to peaceful

enjoyment of the premises by other

residents of the project. In this

connection, the Extension Act

authorizes the HA administering the

program to determine whether an

applicant has been rehabilitated from

drug or alcohol abuse.

In this proposed rule, HUD also

proposes two related changes for tenants

evicted from assisted housing: (1)

Tenants evicted from housing assisted

under the United States Housing Act of

1937 for serious lease violations would

be ineligible for admission to units

assisted under the Section 8 Rental

Certificate, Rental Voucher, and

Moderate Rehabilitation Programs for an

appropriate period of time; and (2)

Section 8 tenant-based certificate and

voucher participants evicted for serious

lease violations would be ineligible for

continued assistance by the HA. For

example, families evicted for a serious

lease violation (such as committing

crimes against persons or property or

other acts that affect the health, safety,

or right to peaceful enjoyment of the

premises by other residents) would be

barred from admission to Section 8

housing for a specified period and, if

applicable, be terminated from the

Rental Certificate or Voucher Program.

HUD is also proposing a similar

requirement for the public housing

program barring the admission of

residents evicted from housing assisted

under the United States Housing Act of

1937 for serious lease violations. These

proposals would facilitate efforts by

HUD and HAs to eliminate crime and to

impose tougher expectations on

Federally assisted tenants, holding them

responsible for their actions.

In order to determine the eligibility of

an applicant under this proposed rule,

an HA needs to know whether the

applicant was evicted from housing

assisted under the U.S. Housing Act of

1937 and whether the eviction involved

drug-related criminal activity. HUD is

specifically requesting public comment

on ways HAs can share this information

with each other, and the best means to

obtain information on evictions from

privately owned assisted projects such

as Section 8 new construction projects.

II. Regulatory Reinvention

Consistent with Executive Order

12866 and President Clinton’s

memorandum of March 4, 1995 to all

Federal departments and agencies on

the subject of Regulatory Reinvention,

HUD is reviewing all its regulations to

determine whether they can be

eliminated, streamlined, or consolidated

with other regulations. As part of this

review, this proposed rule, at the final

rule stage, may undergo revisions in

accordance with the President’s

regulatory reform initiatives. In addition

to comments on the substance of these

regulations, HUD welcomes comments

on how this proposed rule may be made

more understandable and less

burdensome.

III. Findings and Certifications

A. Paperwork Reduction Act

The proposed information collection

requirements contained at §§ 882.514(g)

and 982.553(b) of this rule have been

submitted to the Office of Management

and Budget (OMB) for review, under

section 3507(d) of the Paperwork

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

Chapter 35).
Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Proposed Rules 15347

In accordance with 5 CFR

1320.5(a)(1)(iv), the Department is

setting forth the following concerning

the proposed collection of information:

(1) Title of the information collection

proposal: Implementing Provisions of

the Housing Opportunity Program

Extension Act of 1996; and Revising

Section 8 Certificate, Voucher, and

Moderate Rehabilitation Admission and

Occupancy Policies.

(2) Summary of the collection of

information: HAs have local admission

and subsidy termination policies that

detail when applicants are eligible, how

applicants are selected, waiting list

management, denial of assistance to

applicants, and termination of

assistance to participants. This

rulemaking requires HAs to (1) deny

admission because of drug-related

criminal activity and certain evictions

from housing assisted under the 1937

Housing Act, (2) terminate assistance

when a family is evicted from a tenantbased subsidy unit for serious lease

violations, and (3) establish admission

and termination standards concerning

drug use and alcohol abuse.

(3) Description of the need for the

information and its proposed use: The

information collected is needed to

assure that subsidy is only provided to

eligible families, and to monitor

compliance with HUD Section 8

program admission and termination

requirements authorized by statute.

(4) Description of the likely

respondents, including the estimated

number of likely respondents, and

proposed frequency of response to the

collection of information: Respondents

will be the 2500 HAs administering the

Section 8 program. The proposed

frequency of responses is once annually.

(5) Estimate of the total reporting and

recordkeeping burden that will result

from the collection of information: HA

admission and termination policies are

contained in the HA administrative

plan. When an HA first begins to

administer the Section 8 program, the

HA develops an administrative plan in

conjunction with its first funding

application. Thereafter, the HA updates

the administrative plan periodically on

an as-needed basis (estimated not to

exceed an average of once a year). HUD

approval of the administrative plan is

not required and it is maintained

locally. Additional burden to HAs

required by this rule is minimal since

the collections are a part of the day-today operation of the HAs, the rule

simply requires HAs to consider

additional factors when making

admission and termination

determinations, HAs already update the

administrative plan periodically to

reflect new statutory requirements and

changes in local policies, and the

collection requirements for the

administrative plan are already

included in the burden hours attributed

to preparing a funding application and

periodically updating the administrative

plan. The reporting and recordkeeping

burden for the application form HUD–

52515 (which includes the

administrative plan) were previously

approved by the Office of Management

and Budget (OMB), and assigned OMB

control number 2577–0169, as follows:

Number of respondentsFreg. of response

Est. avg. response time

(Hours)

Est. annual

burden (Hrs.)

Reporting Burden ............................................................................................. 2,500 1 2.0 5000

Total Reporting Burden ............................................................................. ........................ ........................ ........................ 5000

B. Regulatory Review

The Office of Management and Budget

(OMB) reviewed this proposed rule

under Executive Order 12866,

Regulatory Planning and Review, issued

by the President on September 30, 1993.

OMB determined that this rule is a

‘‘significant regulatory action,’’ as

defined in section 3(f) of the Order

(although not economically significant,

as provided in section 3(f)(1) of the

Order). Any changes made in this rule

subsequent to its submission to OMB

are identified in the docket file, which

is available for public inspection

between 7:30 a.m. and 5:30 p.m. in the

Office of the Rules Docket Clerk, Office

of General Counsel, Room 10276,

Department of Housing and Urban

Development, 451 Seventh Street, SW,

Washington, DC.

C. Impact on Small Entities

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)), has reviewed and approved this

proposed rule, and in so doing certifies

that this proposed rule would not have

a significant economic impact on a

substantial number of small entities.

While this rule would amend

occupancy and tenant selection policies

in the Section 8 Rental Certificate,

Rental Voucher, and Moderate

Rehabilitation Programs, it would not

have a significant economic impact on

small entities.

D. Environmental Impact

A Finding of No Significant Impact

with respect to the environment has

been made in accordance with HUD

regulations in 24 CFR part 50 that

implement section 102(2)(C) of the

National Environmental Policy Act of

1969 (42 U.S.C. 4332). This Finding is

available for public inspection between

7:30 a.m. and 5:30 p.m. weekdays in the

office of the Rules Docket Clerk, Office

of General Counsel, Room 10276,

Department of Housing and Urban

Development, 451 Seventh Street, SW,

Washington, DC.

E. Federalism Impact

The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies contained

in this proposed rule would not have

substantial direct effects on States or

their political subdivisions, or the

relationship between the Federal

Government and the States, or on the

distribution of power and

responsibilities among the various

levels of government. As a result, this

proposed rule is not subject to review

under the Order. The proposed rule

would merely implement statutory and

related requirements with respect to

admission and occupancy of housing

funded by the Federal Government.

F. Impact on the Family

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that this proposed rule

would not have the potential for

significant impact on family formation,

maintenance, or general well-being, and

thus is not subject to review under the

Order. This proposed rule would

increase the safety and security of

families living in assisted housing.

Since the impact of this proposed rule

on the family would be beneficial, no

further review is considered necessary.

G. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates

Reform Act of 1995 (Pub. L. 104–4;
15348 Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Proposed Rules

approved March 22, 1995) (UMRA)

establishes requirements for Federal

agencies to assess the effects of their

regulatory actions on State, local, and

tribal governments, and the private

sector. This proposed rule would not

impose any Federal mandates on any

State, local, or tribal governments, or on

the private sector, within the meaning of

the UMRA.

Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic

Assistance numbers for the programs

that would be affected by this proposed

rule are 14.855 (Vouchers), 14.856

(Moderate Rehabilitation) and 14.857

(Certificates).

List of Subjects

24 CFR Part 882

Grant programs—housing and

community development, Homeless,

Lead poisoning, Manufactured homes,

Rent subsidies, Reporting and

recordkeeping requirements.

24 CFR Part 982

Grant programs—housing and

community development, Housing, Rent

subsidies, Reporting and recordkeeping

requirements.

Accordingly, for the reasons stated in

the preamble, parts 882 and 982 of title

24 of the Code of Federal Regulations,

are proposed to be amended as follows:

PART 882—SECTION 8 CERTIFICATE

AND MODERATE REHABILITATION

PROGRAMS

1. The authority citation for part 882

continues to read as follows:

Authority: 42 U.S.C. 1437f and 3535(d).

2. In § 882.413, paragraph (b) is

amended by adding a new sentence after

the first sentence, to read as follows:

§ 882.413 Responsibility of the Family.

* * * * *

(b) * * * No Family member may

abuse alcohol in a way that may

interfere with the health, safety, or right

to peaceful enjoyment of the premises

by other residents. * * *

* * * * *

3. Section 882.514 is amended as

follows:

a. By revising paragraph (a)(2);

b. By redesignating paragraph (a)(3) as

paragraph (a)(4);

c. By adding a new paragraph (a)(3);

d. By revising paragraph (g); and

e. By adding a new paragraph (h); to

read as follows:

§ 882.514 Family participation.

(a) * * *

(2) A Family is ineligible for

admission if:

(i) The Family contains any Family

member evicted from housing assisted

under the 1937 Act for drug-related

criminal activity during a reasonable

time period specified by the PHA,

which is not less than 3 years from the

date of the eviction. Notwithstanding

the immediately preceding sentence, the

PHA may, in its discretion, determine

that the Family is eligible for admission

if the PHA determines that the evicted

Family member who was engaged in

drug-related criminal activity has

successfully completeed a rehabilitation

program approved by the PHA or that

the circumstances leading to the

eviction no longer exist (e.g., the evicted

Family member involved in drugs is no

longer in the household because of

incarceration); or

(ii) The Family contains any Family

member evicted from housing assisted

under the 1937 Act for other serious

violation of the lease during a

reasonable time period specified by the

PHA, unless the PHA determines that

the circumstances leading to the

eviction no longer exist.

(3) A PHA may determine to deny

assistance to an applicant Family

because one or more Family members

have engaged in violent criminal

activity or drug-related criminal activity

as defined in § 882.413, illegal use of a

controlled substance, or abuse of

alcohol that may interfere with the

health, safety, or right to peaceful

enjoyment of the premises by other

residents. See paragraph (g) of this

section.

* * * * *

(g) Considerations in certain denials

and terminations. (1) The PHA must

establish standards for denying program

assistance if the PHA determines that:

(i) Any Family member is illegally

using a controlled substance; or

(ii) There is reasonable cause to

believe that a Family member’s illegal

use or pattern of illegal use of a

controlled substance or abuse or pattern

of abuse of alcohol may interfere with

the health, safety, or right to peaceful

enjoyment of the premises by other

residents.

(2) The PHA must establish standards

for determining whether to terminate

program assistance if the PHA

determines that:

(i) Any Family member is illegally

using a controlled substance; or

(ii) A Family member’s use of a

controlled substance or abuse of alcohol

interferes with the health, safety, or

right to peaceful enjoyment of the

premises by other residents.

(3) In determining whether to deny or

terminate program assistance for illegal

use or pattern of use of a controlled

substance or for abuse or a pattern of

abuse of alcohol, by a Family member,

the PHA may consider whether the

person:

(i) Is no longer engaging in illegal use

of a controlled substance or in abuse of

alcohol (as applicable); or

(ii) Has successfully completed a

supervised drug or alcohol

rehabilitation program (as applicable),

has otherwise been rehabilitated

successfully, or is participating in a

supervised drug or alcohol

rehabilitation program (as applicable).

(4) The PHA may require a Family

member who has engaged in the illegal

use of a controlled substance, or in

alcohol abuse activity that interfered

with the health, safety, and peaceful

enjoyment of the premises by other

residents, to submit evidence of

participation in, or successful

completion of, a supervised drug or

alcohol rehabilitation program (as

applicable) as a condition to being

allowed to reside in the unit.

(5) At any time, the HA may deny

program assistance to an applicant or

terminate program assistance to a

participant Family if the PHA

determines that any Family member has

engaged in drug-trafficking or violent

criminal activity. In determining

whether to deny or terminate program

assistance based on drug-related

criminal activity, violent criminal

activity, or alcohol abuse, the PHA may

deny or terminate program assistance if

the preponderance of evidence indicates

that a Family member has engaged in

such activity, regardless of whether the

Family member has been arrested or

convicted.

(h) Inapplicability to a program

administered by an IHA. Paragraphs

(a)(2)(i) and (g)(1) through (g)(5) of this

section are not applicable to a program

administered by an IHA.

PART 982—TENANT-BASED

ASSISTANCE UNDER THE SECTION 8

RENTAL CERTIFICATE PROGRAM

AND THE SECTION 8 RENTAL

VOUCHER PROGRAM

4. The authority citation for part 982

continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f,

and 3535(d).

5. In § 982.201, paragraph (a) is

revised to read as follows:

§ 982.201 Eligibility.

(a) When applicant is eligible: general.

(1) The HA may only admit an eligible

family to a program. To be eligible, the
Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Proposed Rules 15349

applicant must be a ‘‘family’’, must be

income-eligible, and the members of the

family must be citizens or noncitizens

who have eligible immigration status as

determined in accordance with 24 CFR

part 5.

(2) The family must not contain any

family member evicted from housing

assisted under the 1937 Act for drugrelated criminal activity during a

reasonable time period specified by the

HA, which is not less than 3 years from

the date of the eviction.

Notwithstanding the immediately

preceding sentence, the HA may, in its

discretion, determine that the family is

eligible for admission if the HA

determines that the evicted family

member who was engaged in drugrelated criminal activity has

successfully completed a rehabilitation

program approved by the HA or that the

circumstances leading to the eviction no

longer exist (e.g., the individual

involved in drugs is no longer in the

household because the person is

incarcerated).

(3) The family must not contain any

family member evicted from housing

assisted under the 1937 Act for other

serious violation of the lease during a

reasonable time period specified by the

HA, unless the HA determines that the

circumstances leading to the eviction no

longer exist.

(4) Paragraph (a)(2) of this section is

not applicable to a program

administered by an IHA.

* * * * *

6. Section 982.551 is amended by

redesignating paragraph (m) as

paragraph (n), and by adding a new

paragraph (m), to read as follows:

§ 982.551 Obligations of participant.

* * * * *

(m) Alcohol abuse by family members.

The members of the family may not

abuse alcohol in a way that may

interfere with the health, safety, or right

to peaceful enjoyment of the premises

by other residents.

* * * * *

7. Section 982.552 is amended as

follows:

a. By removing paragraph (b)(2);

b. By redesignating paragraphs (b)(3)

through (b)(10) as paragraphs (b)(2)

through (b)(9), respectively;

c. By redesignating paragraph (f) as

paragraph (h); and

d. By adding new paragraphs (f) and

(g); to read as follows:

§ 982.552 HA denial or termination of

assistance for family.

* * * * *

(f) Eviction from 1937 Act housing:

Requirement to deny admission. See

§ 982.201(a) for a statement of the

circumstances in which the HA must

deny program assistance for an

applicant if any family member has

been evicted from housing assisted

under the 1937 Act.

(g) Eviction for serious lease violation:

Requirement to terminate assistance.

The HA must terminate program

assistance for a participant family (i.e.,

all family members) if the family is

evicted from housing assisted under the

program for serious violation of the

lease.

* * * * *

8. Section 982.553 is revised to read

as follows:

§ 982.553 Crime or alcohol abuse by family

members.

(a) Drug-trafficking or violent criminal

activity: Authority to deny admission or

terminate assistance. At any time, the

HA may deny program assistance to an

applicant or terminate program

assistance to a participant family if the

HA determines that any family member

has engaged in drug-trafficking or

violent criminal activity.

(b) Illegal drug use and alcohol abuse:

Requirement to establish standards for

denial of admission or termination of

assistance. (1) The HA must establish

standards for denying program

assistance if the HA determines that:

(i) Any family member is illegally

using a controlled substance; or

(ii) There is reasonable cause to

believe that a family member’s illegal

use or pattern of illegal use of a

controlled substance or abuse or pattern

of abuse of alcohol may interfere with

the health, safety, or right to peaceful

enjoyment of the premises by other

residents.

(2) The HA must establish standards

for determining whether to terminate

program assistance if the HA determines

that:

(i) Any family member is illegally

using a controlled substance; or

(ii) A family member’s use of a

controlled substance or abuse of alcohol

interferes with the health, safety, or

right to peaceful enjoyment of the

premises by other residents.

(3) In determining whether to deny or

terminate program assistance for illegal

use or pattern of use of a controlled

substance or for abuse or pattern of

abuse of alcohol by a family member,

the HA may consider whether the

person:

(i) Is no longer engaging in illegal use

of a controlled substance or in abuse of

alcohol (as applicable); or

(ii) Has successfully completed a

supervised drug or alcohol

rehabilitation program (as applicable),

has otherwise been rehabilitated

successfully, or is participating in a

supervised drug or alcohol

rehabilitation program (as applicable).

(4) The HA may require a family

member who has engaged in the illegal

use of a controlled substance, or in

alcohol abuse activity that interfered

with the health, safety, and peaceful

enjoyment of the premises by other

residents, to submit evidence of current

participation in, or successful

completion of, a supervised drug or

alcohol rehabilitation program (as

applicable) as a condition to being

allowed to reside in the unit.

(c) Eviction for drug-related criminal

activity from 1937 Act housing:

Requirement to deny admission. See

§ 982.201(a) for a statement of the

circumstances in which the HA must

deny program assistance for an

applicant if any family member has

been evicted from housing assisted

under the 1937 Act for drug-related

criminal activity.

(d) Evidence of criminal activity or

alcohol abuse. In determining whether

to deny or terminate program assistance

based on drug-related criminal activity,

violent criminal activity, or alcohol

abuse, the HA may deny or terminate

program assistance if the preponderance

of evidence indicates that a family

member has engaged in such activity,

regardless of whether the family

member has been arrested or convicted.

(e) Inapplicability to a program

administered by an IHA. Paragraph (b)

of this section is not applicable to a

program administered by an IHA.

Dated: March 4, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and

Indian Housing.

[FR Doc. 97–7999 Filed 3–28–97; 8:45 am]

BILLING CODE 4210–33–P