This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

95079 

Vol. 89, No. 231 

Monday, December 2, 2024 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

7 CFR Part 3550 

[Docket No. RHS–24–SFH–0028] 

Section 504 Direct Single Family 

Housing Home Repair Loans and 

Grants; Materials Pilot Program 

AGENCY: Rural Housing Service, USDA. 

ACTION: Notification of waiver. 

SUMMARY: The Rural Housing Service 

(RHS or the Agency), a Rural 

Development agency of the United 

States Department of Agriculture 

(USDA), is issuing this document to 

implement a demonstration program, 

the Section 504 Direct Single Family 

Housing Loans and Grants pilot 

program. The Agency’s intention is to 

evaluate the existing regulations and 

remove regulatory barriers to assist 

eligible applicants with improved ease 

of use for very low-income homeowners 

seeking to repair or rehabilitate their 

homes. This document briefly discusses 

the new waiver and provides contact 

information for additional details about 

the pilot program. 

DATES: The effective date of the 

regulatory waiver is December 2, 2024. 

The duration of the pilot program is 

anticipated to continue until December 

2, 2026, at which time the RHS may 

extend the pilot program (with or 

without modifications) or terminate it 

depending on the workload and 

resources needed to administer the 

program, feedback from the public, and 

the effectiveness of the program. If the 

pilot program is extended or terminated 

early, the RHS will notify the public via 

Notice publication in the Federal 

Register. 

FOR FURTHER INFORMATION CONTACT: 

Anthony Williams, Management and 

Program Analyst, Special Programs and 

Initiatives Branch, Single Family 

Housing Direct Loan Division, Rural 

Development, U.S. Department of 

Agriculture, Email: anthonyl.williams@

usda.gov; Phone: (202) 720–9649. 

SUPPLEMENTARY INFORMATION: 

Authority 

Title V, Section 504 of the Housing 

Act of 1949, as amended; 42 U.S.C. 

1474. 

Background 

The RHS offers a variety of programs 

to build or improve housing and 

essential community facilities in rural 

areas. The Agency offer loans, grants, 

and loan guarantees for single- and 

multifamily housing, child-care centers, 

fire and police stations, hospitals, 

libraries, nursing homes, schools, first 

responder vehicles and equipment, 

housing for farm laborers and much 

more. RHS also provides technical 

assistance loans and grants in 

partnership with non-profit 

organizations, Indian tribes, state and 

federal government agencies, and local 

communities. 

The RHS Single Family Housing 

Direct Loans and Grants Program 

(SFHDLGP) Division implements the 

Section 504 loan/grant program under 7 

CFR part 3550 with the objective to 

assist very low-income owner occupants 

of single-family homes in rural areas 

repair or rehabilitate their homes. Loan 

funds are available for repairs to 

improve or modernize a home, make it 

safer or more sanitary, or remove health 

and safety hazards. The eligibility 

requirements, as described in 7 CFR 

3550.103, include that a homeowner (1) 

be unable to secure financial assistance 

at reasonable terms and conditions from 

a non-Agency source; (2) lack the 

personal resources to meet their needs; 

and (3) can demonstrate the ability to 

repay the Section 504 loan. For 

homeowners 62 years old and over at 

the time of application, grant funds are 

available to correct health or safety 

hazards, or remodel dwellings to make 

them accessible to a household member 

with a disability. 

RHS may authorize limited 

demonstration (pilot) programs to test 

new approaches to offering housing 

under the statutory authority granted to 

the Secretary, as set forth in section 

506(b) of the Housing Act of 1949 (42 

U.S.C. 1476(b)). Additional 

demonstration program authority for 

regulations contained in 7 CFR part 

3550 is provided at 7 CFR 3550.7. Any 

program requirements that are statutory 

will remain in effect. 

Discussion of the New Section 504 

Waiver 

To align with current market payment 

requirements and further utilize 

program loan funding, RHS has 

determined to test and evaluate the 

regulatory requirements under the new 

pilot program for the Single-Family 

Housing Section 504 Home Repair Loan 

and Grant program under the pilot 

program authority provided at section 

506(b) of the Housing Act of 1949 (42 

U.S.C. 1476(b)): 

The pilot program allows participants 

to use Section 504 loan or grant funds 

for the payment of construction 

materials prior to site delivery and 

without the need for the contractor to 

provide a surety bond. This component 

of the demonstration program will 

permit SFHDLGP to evaluate 7 CFR 

1924.6(a)(12)(v)(C) which requires 

delivery of materials prior to payment 

and a surety bond. Under the 

demonstration program, payment in full 

may be made directly to the material 

supplier so the order can be placed or 

to the contractor upon receipt of paid 

invoice. Contractors expect up to fifty 

percent down prior to ordering 

materials or beginning work, and 

applicants struggle to find contractors 

that will work within the Agency’s 

payment terms. This waiver is a step 

closer to meeting contractor 

expectations while still protecting 

applicants from fraudulent contractors 

that might take downpayment funds and 

never complete the job. 

Eligibility Requirements 

(1) Eligble participants—Eligible 

participants in the Section 504 Home 

Repair Loan and Grant program must 

abide by the regulatory requirements 

outlined in 7 CFR 3550. (2) Eligible 

States and Territories—The following 

twenty-five (25) States and U.S. 

Territories are selected based on 

program usage, involvement in the 

Rural Partners Network, and to provide 

wide geographic and historic 

production variation for the pilot 

program: Alabama, Alaska, American 

Samoa, Arizona, California, Florida, 

Georgia, Kansas, Kentucky, Minnesota, 

Mississippi, Montana, Nevada, North 

Carolina, North Dakota, Nebraska, New 

Mexico, New York, Puerto Rico, South 


ddrumheller on DSK120RN23PROD with RULES1
95080 Federal Register / Vol. 89, No. 231 / Monday, December 2, 2024 / Rules and Regulations 

1On April 20, 2023, the CFPB published a 

document announcing the availability of a revised 

version of its ‘‘Methodology for Determining 

Average Prime Offer Rates,’’ which describes the 

data and methodology used to calculate the average 

prime offer rate for purposes of Regulation C and 

Regulation Z. See 88 FR 24393. The methodology 

statement was revised to address the imminent 

unavailability of certain data the CFPB previously 

relied on to calculate average prime offer rates, as 

a result of a decision by Freddie Mac to make 

changes to its Primary Mortgage Market Survey®

(PMMS). After evaluating potential sources, the 

CFPB determined that data from Intercontinental 

Exchange Mortgage Technology (ICE Mortgage 

Technology) is currently the most suitable option to 

replace PMMS. Beginning on April 24, 2023, the 

CFPB started using data provided by ICE Mortgage 

Technology and the revised methodology to 

calculate average prime offer rates. 

2The QM categories in Regulation Z appear at 12 

CFR 1026.43(e)(2), (e)(4), (e)(5), (e)(6), and (e)(7). 

Note that 12 CFR 1026.43(e)(6) applies only to 

covered transactions for which the application was 

received before April 1, 2016. 

Dakota, Tennessee, Texas, Washington, 

West Virginia, and Wisconsin. 

Paperwork Reduction Act 

The regulatory waivers for this pilot 

program contain no new reporting or 

recordkeeping burdens under OMB 

control number 0575–0172 that would 

require approval under the Paperwork 

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

Chapter 35). 

Non-Discrimination Statement 

In accordance with Federal civil 

rights laws and U.S. Department of 

Agriculture (USDA) civil rights 

regulations and policies, the USDA, its 

Mission Areas, agencies, staff offices, 

employees, and institutions 

participating in or administering USDA 

programs are prohibited from 

discriminating based on race, color, 

national origin, religion, sex, gender 

identity (including gender expression), 

sexual orientation, disability, age, 

marital status, family/parental status, 

income derived from a public assistance 

program, political beliefs, or reprisal or 

retaliation for prior civil rights activity, 

in any program or activity conducted or 

funded by USDA (not all bases apply to 

all programs). Remedies and complaint 

filing deadlines vary by program or 

incident. 

Program information may be made 

available in languages other than 

English. Persons with disabilities who 

require alternative means of 

communication to obtain program 

information (e.g., Braille, large print, 

audiotape, American Sign Language) 

should contact the responsible Mission 

Area, agency, or staff office; or the 711 

Relay Service. 

To file a program discrimination 

complaint, a complainant should 

complete a Form AD–3027, USDA 

Program Discrimination Complaint 

Form, which can be obtained online at 

https://www.usda.gov/sites/default/ 

files/documents/ad-3027.pdf from any 

USDA office, by calling (866) 632–9992, 

or by writing a letter addressed to 

USDA. The letter must contain the 

complainant’s name, address, telephone 

number, and a written description of the 

alleged discriminatory action in 

sufficient detail to inform the Assistant 

Secretary for Civil Rights (ASCR) about 

the nature and date of an alleged civil 

rights violation. The completed AD– 

3027 form or letter must be submitted to 

USDA by: 

(1) Mail: U.S. Department of 

Agriculture, Office of the Assistant 

Secretary for Civil Rights, 1400 

Independence Avenue SW, Washington, 

DC 20250–9410; or 

(2) Fax: (833) 256–1665 or (202) 690– 

7442; or 

(3) Email: program.intake@usda.gov 

USDA is an equal opportunity 

provider, employer, and lender. 

Joaquin Altoro 

Administrator, Rural Housing Service. 

[FR Doc. 2024–28189 Filed 11–29–24; 8:45 am] 

BILLING CODE 3410–XV–P 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1026 

Truth in Lending (Regulation Z) Annual 

Threshold Adjustments (Credit Cards, 

HOEPA, and Qualified Mortgages) 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Consumer Financial 

Protection Bureau (Bureau or CFPB) is 

issuing this final rule amending the 

regulation text and official 

interpretations for Regulation Z, which 

implements the Truth in Lending Act 

(TILA). The CFPB calculates the dollar 

amounts for provisions in Regulation Z 

annually; this final rule revises the 

amounts for provisions implementing 

TILA and its amendments, including the 

Home Ownership and Equity Protection 

Act of 1994 (HOEPA), and the DoddFrank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act). The 

CFPB adjusts these amounts based on 

the annual percentage change of the 

Consumer Price Index (CPI) effective 

June 1, 2024. 

DATES: This final rule is effective 

January 1, 2025. 

FOR FURTHER INFORMATION CONTACT: 

George Karithanom, Regulatory 

Implementation & Guidance Program 

Analyst, Office of Regulations, at 202– 

435–7700 or at: https://

reginquiries.consumerfinance.gov/. If 

you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: The CFPB 

is amending the regulation text and 

official interpretations for Regulation Z, 

which implements TILA, to update the 

dollar amounts of various thresholds 

that it must adjust annually to reflect 

the annual percentage change in the CPI 

as published by the Bureau of Labor 

Statistics (BLS). Specifically, for openend consumer credit plans under TILA, 

the threshold that triggers requirements 

to disclose minimum interest charges 

will remain unchanged at $1.00 in 2025. 

For HOEPA loans, the adjusted total 

loan amount threshold for high-cost 

mortgages in 2025 will be $26,968. The 

adjusted points-and-fees dollar trigger 

for high-cost mortgages in 2025 will be 

$1,348. For qualified mortgages (QMs) 

under the General QM loan definition in 

§ 1026.43(e)(2), the thresholds for the 

spread between the annual percentage 

rate (APR) and the average prime offer 

rate (APOR) 1 in 2025 will be: 2.25 or 

more percentage points for a first-lien 

covered transaction with a loan amount 

greater than or equal to $134,841; 3.5 or 

more percentage points for a first-lien 

covered transaction with a loan amount 

greater than or equal to $80,905 but less 

than $134,841; 6.5 or more percentage 

points for a first-lien covered 

transaction with a loan amount less than 

$80,905; 6.5 or more percentage points 

for a first-lien covered transaction 

secured by a manufactured home with 

a loan amount less than $134,841; 3.5 or 

more percentage points for a 

subordinate-lien covered transaction 

with a loan amount greater than or equal 

to $80,905; or 6.5 or more percentage 

points for a subordinate-lien covered 

transaction with a loan amount less than 

$80,905. For all categories of QMs, the 

thresholds for total points and fees in 

2025 will be 3 percent of the total loan 

amount for a loan greater than or equal 

to $134,841; $4,045 for a loan amount 

greater than or equal to $80,905 but less 

than $134,841; 5 percent of the total 

loan amount for a loan greater than or 

equal to $26,968 but less than $80,905; 

$1,348 for a loan amount greater than or 

equal to $16,855 but less than $26,968; 

and 8 percent of the total loan amount 

for a loan amount less than $16,855.2


ddrumheller on DSK120RN23PROD with RULES1