[Federal Register Volume 74, Number 233 (Monday, December 7, 2009)]
[Unknown Section]
[Pages 64246-64249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X09-111207]


[[Page 64246]]




DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)



Statement of Regulatory Priorities
The Regulatory Plan for the Department of Housing and Urban Development 
(HUD) for Fiscal Year (FY) 2010 highlights the most significant 
regulations and policy initiatives that HUD seeks to complete during 
the upcoming fiscal year. As the federal agency that serves as the 
nation's housing agency, committed to addressing the housing needs of 
Americans, promoting economic and community development, and enforcing 
the nation's fair housing laws, HUD plays a significant role in the 
lives of families and in communities throughout America. The 
Department's program and initiatives help to provide decent, safe, and 
sanitary housing, and create suitable living environments for all 
Americans. HUD expands housing opportunities for Americans by enforcing 
fair housing laws that operate to eliminate housing discrimination. HUD 
also provides housing and other essential support to a wide range of 
individuals and families with special needs, including homeless 
individuals, the elderly, and persons with disabilities.
Secretary Donovan has directed that HUD must have a balanced, 
comprehensive national housing policy, one that supports and preserves 
sustainable homeownership, but also provides affordable rental housing, 
with a focus on preservation of developments that are integral to 
sustainability, such as those adjacent to significant transportation 
options, or with great access to jobs. Increasing the availability of 
affordable rental housing provides a means of addressing the increase 
in homelessness.
HUD's Regulatory Plan for FY2010 reflects one step in achieving this 
balanced, comprehensive national housing policy, and is based on major 
legislation recently enacted that supports such a policy.
Priority: Preserving and Expanding Affordable Rental Housing and 
Increasing Homeownership
The Housing and Economic Recovery Act of 2008 (HERA) establishes a 
Housing Trust Fund to be administered by HUD, for the purpose of 
providing grants to states to increase and preserve the supply of 
rental housing for extremely low- and very low-income families, 
including homeless families, and to increase homeownership for 
extremely low- and very low-income families. Although the Housing Trust 
Fund supports both increases in rental housing and homeownership, the 
primary focus of the Housing Trust Fund is rental housing for extremely 
low- and very low-income households, since HERA provides that no more 
than 10 percent of each formula allocation may be expended on 
homeownership.
HERA charges HUD to establish, through regulation, the formula for 
distribution of Housing Trust Fund grants to states. HERA specifies 
that only certain factors are to be part of the formula, and it 
designates certain factors as priority factors. In addition to the 
charge to establish a formula by rule, the statute also directs HUD to 
issue regulations to carry out the statutory requirements applicable to 
use of Housing Trust Fund grants. Eligible trust fund activities 
include production, preservation, and rehabilitation of housing for 
rental housing and homeownership through new construction, acquisition, 
and acquisition and rehabilitation.
Regulatory Action: Housing Trust Fund - Allocation Formula and Program 
Requirements
HUD will issue two rules, as provided by statute. The first rule will 
address the formula by which Housing Trust Fund grant will be allocated 
to the states. The second rule will provide for implementation of the 
program requirements. Both rules will provide the opportunity for 
public comment. The Housing Trust Fund represents a bipartisan 
enactment of possibly the most significant new federal housing 
production program since the creation of the HOME Investment 
Partnerships program in 1990. Capitalization of this fund through 
appropriations and regulatory implementation will constitute a major 
step toward increasing the supply of affordable housing.
Priority: Expanding Affordable Housing by Building Upon Success
The HOME Investment Partnerships (HOME) Program, authorized by the 
Cranston-Gonzales National Affordable Housing Act, is the largest 
federal block grant to state and local governments designed exclusively 
to create affordable housing for low-income households. Each year, the 
HOME program allocates approximately $2 billion among the states and 
hundreds of localities nationwide. The program was designed to 
reinforce several important values and principles of community 
development, including empowering people and communities to design and 
implement strategies tailored to their own needs and priorities; 
emphasizing the importance of consolidated planning, which expands and 
strengthens partnerships among all levels of government and the private 
sector in the development of affordable housing; and, through matching 
funds, mobilizing community resources in support of affordable housing. 
HOME is a highly successful program through which nearly 912,000 
affordable housing units for low- and very low-income households have 
been provided since 1992.
Regulatory Action: HOME Investment Partnerships - Improving Performance 
and Accountability; Updating Property Standards and Instituting Energy 
Efficiency Standards
The Department will publish significant proposed amendments to the HOME 
Program regulations. These regulations were last revised in 1996. This 
proposed rule would establish new performance standards for the use of 
HOME program funds, including establishing expeditious but responsible 
use of funds to provide new affordable housing opportunities, and would 
ensure that future HOME units are energy efficient and incorporate 
green building techniques.
Priority: Housing the Homelessness
The Homeless Emergency Assistance and Rapid Transition to Housing Act 
of 2009 (HEARTH Act) was enacted on May 20, 2009. The HEARTH Act 
reauthorizes the homeless assistance programs administered by HUD under 
the McKinney-Vento Homeless Assistance Act, and consolidates these 
programs into a single grant program. The consolidated program, which 
consists of an Emergency Solutions Grant program, a Continuum of Care 
program, and a Rural Housing Stability program, is designed to ensure 
that the range of needs of homeless persons continue to be addressed 
while providing for consolidated application and administration to ease 
administrative burden and improve coordination among providers and, 
consequently, increase the effectiveness of responding to the needs of 
homeless persons.
In addition to consolidating HUD's Supportive Housing Program, Shelter 
Plus Care, and the Moderate Rehabilitation/Single Room Occupancy 
Program into a single Continuum of Care program, key features of the 
HEARTH Act include: revising HUD's definition of homelessness by 
including people at imminent risk of losing their

[[Page 64247]]

housing, as well as families or youth who live in precarious situations 
and are unlikely to become stable; establishing the Rural Housing 
Stability Assistance Program, which provides rural communities with 
greater flexibility in using homeless assistance funds to address the 
needs of homeless people or those in the worst housing situations in 
their communities; authorizing that up to 20 percent of funds may be 
used to prevent homelessness or rapidly re-house people who become 
homeless through the new Emergency Solution Grants; and codifying HUD's 
Continuum of Care process, established administratively by HUD in 1995.
Regulatory Action: Homeless Emergency Assistance and Rapid Transition 
to Housing Program; Consolidation of HUD Homeless Assistance Programs
The HEARTH Act directs HUD to implement this program through 
rulemaking. HUD will issue two rules to implement this new program. The 
definition of homelessness, which is key to ensuring that the goals and 
objectives of the new statute are met, will be issued first as a 
separate rule for comment. HUD will follow this single issue rule with 
a larger rule that provides for HUD's implementation of the program 
requirements. The funding for this new program and HUD's implementation 
through rulemaking, as directed by statute, will provide communities 
with new resources and better tools to prevent and end homelessness.
Aggregate Costs and Benefits
Executive Order 12866, as amended, requires the agency to provide its 
best estimate of the combined aggregate costs and benefits of all 
regulations included in the agency's Regulatory Plan that will be made 
effective in calendar year 2010. HUD expects that the neither the total 
economic costs nor the total efficiency gains will exceed $100 million. 
HUD anticipates that, over the next twelve months, only one rule 
included in its Regulatory Plan, the Housing Trust Fund will have an 
economically significant impact. HUD's choice of an allocation formula 
has an impact on the distribution of over $100 million of transfers. 
The two additional rules on the Regulatory Plan are not anticipated to 
have an economically significant impact. HUD believes that the HOME 
Investment Partnerships will impose only minor costs in the form 
performance standards and economically insignificant benefits in the 
form of energy savings. The Homeless Emergency Assistance and Rapid 
Transition to Housing Program will lead to greater efficiency in the 
administration of housing assistance programs, but these savings are 
not expected to be economically significant.
The Priority Regulations That Comprise HUD's FY 2010 Regulatory Plan
A more detailed description of the priority regulations that comprise 
HUD's FY 2010 Regulatory Plan follows.
_______________________________________________________________________



HUD--Office of the Secretary (HUDSEC)

                              -----------

                          PROPOSED RULE STAGE

                              -----------




86. HOME INVESTMENT PARTNERSHIPS--IMPROVING PERFORMANCE AND 
ACCOUNTABILITY; UPDATING PROPERTY STANDARDS AND INSTITUTING ENERGY 
EFFICIENCY STANDARDS (FR-5234)

Priority:


Other Significant


Legal Authority:


42 USC 12701 to 12839; 42 USC 3535(d)


CFR Citation:


24 CFR 92


Legal Deadline:


None


Abstract:


The Cranston-Gonzalez National Affordable Housing Act of 1990 
authorized the HOME Investment Partnerships (HOME) Program, an 
affordable housing block grant under which funds are allocated to 
states and units of local government by formula. The program has been 
funded each year since 1992. The program operated under a series of 
interim rules until 1996, when a final rule was promulgated. This rule 
would amend HOME regulations to implement performance standards and 
require more timely housing production. It would also update the 
property standards to incorporate green building techniques and energy-
efficiency standards for HOME-assisted units.


Statement of Need:


The Cranston-Gonzales National Affordable Housing Act notes that there 
is critical need to increase the supply of decent, safe, and sanitary 
housing for all Americans, particularly among low-income families. HOME 
funds may be used for a variety of housing activities, including rental 
assistance, housing rehabilitation, assistance to homebuyers, new 
construction, and to support states and units of local government 
implement local housing strategies designed to increase homeownership 
and affordable housing opportunities. The HOME program is now in its 
18th year of funding. This rulemaking is needed to move the program 
forward by providing greater clarity, establishing and improving 
performance standards, and providing participating jurisdictions with 
the tools they need to address troubled projects. The rule would update 
builder standards for HOME-assisted facilities to incorporate energy 
efficiency and green building standards.


Summary of Legal Basis:


Title II of the Cranston-Gonzalez National Affordable Housing Act 
authorizes funding to participating jurisdictions for various housing 
purposes, including strengthening public-private partnerships to 
increase the supply of affordable housing, including homeownership. The 
goals of the program include expanding the supply of decent, safe, 
sanitary, and affordable housing, primarily for very low-income and 
low-income Americans and to strengthen the abilities of states and 
units of local government to design and implement local strategies for 
achieving an adequate supply of decent, safe, sanitary, and affordable 
housing.


Alternatives:


These changes can be implemented only by regulatory amendment. Other 
options considered included maintaining the status quo. However, after 
eleven years of experience under the currently codified rule, HUD has 
identified a need to increase accountability with respect to 
performance. Moreover, to ensure that these performance standards are 
effective, the program will need clear regulatory requirements to base 
an action against a grantee. The rule would reflect these policy goals.


Anticipated Cost and Benefits:


No increased costs are anticipated as a result of the changes related 
to performance standards. There may be some incremental costs 
associated with the imposition of green building technologies and 
energy-efficiency measures. However, those costs will be offset by 
lower operating costs for

[[Page 64248]]

energy-efficient housing and increased affordability for low- and very 
low-income families.


Risks:


This rule poses no risk to public health, safety, or the environment.


Timetable:
_______________________________________________________________________
Action                            Date                        FR Cite

_______________________________________________________________________
NPRM                            02/00/10

Regulatory Flexibility Analysis Required:


No


Small Entities Affected:


No


Government Levels Affected:


None


Agency Contact:
Virginia Sardone
Deputy Director, Office of Community Planning and Development, Office 
of Affordable Housing Programs
Department of Housing and Urban Development
HUD, 451 7th St SW
Washington, DC 20410
Phone: 202 708-2470
RIN: 2501-AC94
_______________________________________________________________________



HUD--Office of Community Planning and Development (CPD)

                              -----------

                          PROPOSED RULE STAGE

                              -----------




87. HOUSING TRUST FUND PROGRAM--ALLOCATION FORMULA AND PROGRAM 
REQUIREMENTS (FR-5246)

Priority:


Economically Significant. Major under 5 USC 801.


Legal Authority:


12 USC 4568; 42 USC 3535(d)


CFR Citation:


24 CFR 93


Legal Deadline:


Final, Statutory, June 30, 2009, Regulations describing Formula 
Distribution; however, funds are not available to or appropriated for 
the Housing Trust Fund.


Abstract:


The Housing and Economic Recovery Act of 2008 (HERA) establishes a 
Housing Trust Fund. Section 1338 of HERA directs HUD to establish and 
manage a Housing Trust Fund, which is to be funded with amounts 
allocated by the government-sponsored enterprises or by any amounts 
that may be appropriated, transferred, or credited to the Housing Trust 
Fund under any other provision of law. The purpose of the Housing Trust 
Fund is to provide grants to states for use to: (1) increase and 
preserve the supply of rental housing for extremely low- and very low-
income families, including homeless families; and (2) increase 
homeownership for extremely low- and very low-income families. The 
primary focus of the Housing Trust Fund is rental housing for extremely 
low- and very low-income households. HERA provides that no more than 10 
percent of each formula allocation may be expended on homeownership.


HERA charges HUD to establish, by July 2009, and, through regulation, 
the formula for the distribution of the Housing Trust Fund grants to 
states, and to follow that rule with one that implements the Housing 
Trust Fund program requirements.


Statement of Need:


In enacting Housing Trust Fund legislation, Congress determined that 
the national housing policy of the past several years was overly 
focused on homeownership and did not provide adequate attention to the 
need of renters and the need for affordable rental housing. The Housing 
Trust Fund legislation, as signed into law, provides increased 
resources to be directed to the preservation and expansion of 
affordable rental housing.


Summary of Legal Basis:


The rules implementing the Housing Trust Fund formula allocation and 
establishing the program requirements are mandated by HERA.


Alternatives:


HERA requires implementation of both the formula and the program 
requirements by regulation. Accordingly, this rule fulfills a statutory 
mandate to proceed with rulemaking to codify the policies and 
procedures governing the HTF. The prescriptive statutory language of 
HERA limits the policy options considered by HUD. Areas in which the 
statute provides some discretion and the Department is considering 
alternatives include: (1) the contents of the statutorily mandated 
allocation plans to be submitted by states and state designated 
entities; (2) the eligible activities that may be carried out with HTF 
funds; and (3) appropriate benchmarks and performance goals for the use 
of HTF funds.


Anticipated Cost and Benefits:


The benefit of this program is the increase in affordable rental 
housing, which will present savings to low-income and very low-income 
individuals with respect to amount of income they spend on housing, and 
contribution to the prevention of homelessness, which has increased as 
the unemployment rate has risen. The economic impact of the Housing 
Trust Fund consists of a transfer from the taxpayer, through State 
governments, to extremely low- and very low-income families. By 
expanding and preserving the supply of housing and lowering financial 
barriers to homeownership, the Housing Trust Fund will reduce the 
housing costs of extremely low- and very low-income families, and thus 
raise the consumer surplus of the program's beneficiaries.


Risks:


This rule poses no risk to public health, safety, or the environment.


Timetable:
_______________________________________________________________________
Action                            Date                        FR Cite

_______________________________________________________________________
NPRM                            01/00/10

Regulatory Flexibility Analysis Required:


No


Small Entities Affected:


No


Government Levels Affected:


Local, State, Tribal


Agency Contact:
Marcia Sigal
Director, Program Policy Division, Office of Affordable Housing 
Programs
Department of Housing and Urban Development
Office of Community Planning and Development
HUD, 451 7th St. Street
Washington, DC 20410
Phone: 202 708-2470
Fax: 202 708-1744
RIN: 2506-AC23

[[Page 64249]]

_______________________________________________________________________



HUD--CPD



88. <bullet> HOMELESS EMERGENCY ASSISTANCE AND RAPID TRANSITION TO 
HOUSING PROGRAM; CONSOLIDATION OF HUD HOMELESS ASSISTANCE PROGRAMS (FR-
5333)

Priority:


Other Significant


Legal Authority:


42 USC 11371 et seq.; 42 USC 3535(d)


CFR Citation:


24 CFR 577 to 579


Legal Deadline:


Final, Statutory, May 20, 2010, Regulations governing operation of 
programs created or affected by HEARTH Act of 2009.


Abstract:


The Homeless Emergency Assistance and Rapid Transition to Housing Act 
of 2009 (HEARTH Act) reauthorizes the homeless assistance programs 
administered by HUD under the McKinney-Vento Homeless Assistance Act, 
and consolidates these programs into a single grant program. The 
consolidated program, which consists of an Emergency Solutions Grant 
Program, a Continuum of Care Program, and a Rural Housing Stability 
Program, is designed to ensure that the range of needs of homeless 
persons continue to be addressed, but provides for consolidated grant 
application and administration to ease administrative burden and 
improve coordination among providers and, consequently, increase the 
effectiveness of responses to the needs of homeless persons.


HUD will issue two rules to implement this new program. One rule will 
solely address the definitions of ``homeless,'' ``homeless 
individual,'' and ``homeless person,'' the meaning of which are 
essential to the coverage provided by this program. The second rule 
will establish the regulatory framework to implement the program.


Statement of Need:


These rules are needed to fully implement the Homeless Emergency 
Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act). 
The HEARTH Act requires that HUD issue implementing regulations 
governing the operations of the programs it creates or modifies by no 
later than twelve months after the date of enactment.


Summary of Legal Basis:


The rules implementing the consolidated McKinney-Vento Homeless 
Assistance programs are mandated by the HEARTH Act.


Alternatives:


The HEARTH Act requires implementation of the program by rulemaking. 
Accordingly, this rule will assist in meeting the statutory mandate to 
proceed with rulemaking to codify the policies and procedures governing 
the HEARTH Act. The prescriptive statutory language of the HEARTH Act 
limits policy options available; however, HUD is considering options 
where the HEARTH Act provides discretion including: (1) determining the 
appropriate remedial action to ensure the fair distribution of 
assistance for geographic areas that do not meet the requirements for 
funding or where there is no collaborative applicant for a geographic 
area, and (2) establishing the dates by which the recipient or project 
sponsor must expend grants for a homeless assistance.


Anticipated Cost and Benefits:


The consolidated homeless assistance program authorized by the HEARTH 
Act is designed to more rapidly respond to the needs of the homeless 
and, therefore, prevent homelessness and, initially, prevent the rise 
in the number of homeless persons.


Risks:


This rule poses no risk to public health, safety, or the environment.


Timetable:
_______________________________________________________________________
Action                            Date                        FR Cite

_______________________________________________________________________
NPRM                            01/00/10

Regulatory Flexibility Analysis Required:


No


Small Entities Affected:


No


Government Levels Affected:


None


Agency Contact:
Ann Marie Oliva
Director, Office of Special Needs Assistance Program
Department of Housing and Urban Development
Office of Community Planning and Development
HUD, 451 7th St. Street
Washington, DC 20410
Phone: 202 402-4497
RIN: 2506-AC26
BILLING CODE 4210-67-S