[Federal Register Volume 60, Number 89 (Tuesday, May 9, 1995)]
[Proposed Rules]
[Pages 24596-24598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11372]



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[[Page 24597]]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Parts 950 and 990

[Docket No. R-95-1783; FR-3747-P-01]
RIN 2577-AB47


Performance Funding System: Unit Months Available

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Proposed rule.

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SUMMARY: The Department is proposing to revise the Performance Funding 
System to permit payment of operating subsidies for scattered-site 
units as they become occupied.

DATES: Comments due date: July 10, 1995.

ADDRESSES: Interested persons are invited to submit written comments 
regarding this proposed rule to the Office of the General Counsel, 
Rules Docket Clerk, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, S.W., Washington, D.C. 20410. Comments 
should refer to the above docket number and title. A copy of each 
comment submitted will be available for public inspection and copying 
between 7:30 a.m. and 5:30 p.m. at the above address. Facsimile (FAX) 
comments are not acceptable.

FOR FURTHER INFORMATION CONTACT: Mr. John T. Comerford, Director, 
Financial Management Division, Office of Management Operations, Public 
and Indian Housing, Room 4212, Department of Housing and Urban 
Development, 451 Seventh Street, S.W., Washington D.C. 20410, telephone 
(202) 708-1872; or with respect to the Indian Housing programs, Ms. 
Joann A. Teiken, Financial Management Specialist, Office of Native 
American Programs, Public and Indian Housing, Room B-133, Department of 
Housing and Urban Development, 451 Seventh Street, S.W., Washington 
D.C. 20410, telephone (202) 708-2980. Hearing or speech impaired 
individuals may call HUD's TDD number, (202) 708-0850. (These telephone 
numbers are not toll-free.)

SUPPLEMENTARY INFORMATION: HUD's current policy provides that 
eligibility for operating subsidy depends on the date of the End of 
Initial Operating Period (EIOP), and the subsidy is payable for the 
project as a whole, not on the basis of individual units. Any operating 
deficit prior to EIOP is chargeable to the Development Cost Budget, 
thereby reducing funds available for other development costs. This 
procedure is founded on practices historically used in large, multi-
unit apartment projects, but is not necessarily appropriate to projects 
involving acquisition of existing, scattered site units.
    This proposed rule would revise the definition of Unit Months 
Available (Secs. 950.102 and 990.102) and provide an explanation of the 
alternate method for calculating unit months available upon acquisition 
of units in a scattered site project (Secs. 950.705 and 990.104(b)). 
This change in procedure would be made applicable to scattered site 
developments acquired by Indian Housing Authorities.

Findings and Certifications

    The subject matter of this proposed rule is categorically excluded 
from HUD's environmental clearance procedures under 24 CFR 50.20(k). It 
relates to internal administrative procedures whose content does not 
constitute a development decision or affect the physical condition of 
project areas or building sites.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this proposed rule before publication and 
by approving it certifies that this proposed rule does not have a 
significant economic impact on substantial number of small entities. 
The proposed rule would recognize that homes that are part of 
scattered-site developments become ready for occupancy at varying 
times, and would remove a potential penalty to housing authorities who 
would otherwise have to wait for all units in a scattered-site 
development to be occupied before they can receive subsidy.

Executive Order 12612, Federalism

    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 federalism implications 
and, thus, are not subject to review under the Order. The proposed rule 
would refine an established formula under which HUD calculates 
operating subsidies for low-income housing developments, but contains 
no requirement for explicit action by local officials and would not 
interfere with State or local governmental functions.

Executive Order 12606

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this proposed rule would 
not have potential significant impact on family formation, maintenance, 
and general well-being, and, thus, is not subject to review under the 
Order. No significant change in existing HUD policies or programs will 
result from promulgation of this proposed rule, as those policies and 
programs relate to family concerns.

Regulatory Agenda

    This proposed rule was listed as item 1881 in the Department's 
Semiannual Agenda of Regulations published on November 14, 1994 (59 FR 
57632, 57670) in accordance with Executive Order 12866 and the 
Regulatory Flexibility Act.

    The Catalog of Federal Domestic Assistance number is 14.850.

List of Subjects

24 CFR Part 950

    Aged, Grant programs--housing and community development, Grant 
programs--Indians, Indians, Individuals with disabilities, Low and 
moderate income housing, Public housing, Reporting and recordkeeping 
requirements.

24 CFR Part 990

    Grant programs--housing and community development, Public housing, 
Reporting and recordkeeping requirements.

    Accordingly, in title 24 of the Code of Federal Regulations, parts 
950 and 990 would be amended, as follows:

PART 950--INDIAN HOUSING PROGRAMS

    1. The authority citation for part 950 would continue to read as 
follows:

    Authority: 25 U.S.C. 405e(b), 1437aa-1437ee, and 3535(d).

    2. Section 950.102 would be amended by revising the definition of 
``Unit months available'', to read as follows:


Sec. 950.102  Definitions.

* * * * *
    Unit months available. Units multiplied by the number of months the 
project units are available for occupancy during a given IHA fiscal 
year. See also Sec. 950.705(b).
* * * * *
    3. The existing text in Sec. 950.705 would be redesignated as 
paragraph (a), and a new paragraph (b) would be added, to read as 
follows:


Sec. 950.705  Determination of amount of operating subsidy under PFS.

* * * * * [[Page 24598]] 
    (b) For purposes of this part, a unit is considered available for 
occupancy from the date on which the End of Initial Operating Period 
(EIOP) is established for the project with which it is associated until 
the time it is approved by HUD for deprogramming and is vacated or is 
approved for non-dwelling use, except that, on or after July 1, 1991, a 
unit shall not be considered available for occupancy in any IHA 
Requested Budget Year if the unit is located in a vacant building in a 
project that HUD has determined to be nonviable. In the case of an IHA 
development involving the acquisition of scattered site housing, the 
IHA may submit, and HUD shall review and can approve, a revised 
Development Cost Budget reflecting the number of units that were 
occupied during the previous six months, and the Unit Months Available 
used in the calculation of operating subsidy eligibility shall be 
revised to include the number of months the new/acquired units are 
actually occupied.

PART 990--ANNUAL CONTRIBUTIONS FOR OPERATING SUBSIDY

    4. The authority citation for part 990 would continue to read as 
follows:

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

    5. Section 990.102 would be amended by revising the definition of 
``Unit Months Available'', to read as follows:


Sec. 990.102  Definitions.

* * * * *
    Unit months available. Units multiplied by the number of months the 
project units are available for occupancy during a given PHA fiscal 
year. See also Sec. 990.104(b).
* * * * *
    6. In Sec. 990.104, paragraph (b) would be revised, to read as 
follows:


Sec. 990.104  Determination of amount of operating subsidy under PFS.

* * * * *
    (b) For purposes of this part, a unit is considered available for 
occupancy from the date on which the End of Initial Operating Period 
(EIOP) is established for the project with which it is associated until 
the time it is approved by HUD for deprogramming and is vacated or is 
approved for non-dwelling use, except that, on or after July 1, 1991, a 
unit shall not be considered available for occupancy in any PHA 
Requested Budget Year if the unit is located in a vacant building in a 
project that HUD has determined to be nonviable. In the case of a PHA 
development involving the acquisition of scattered site housing, the 
PHA may submit, and HUD shall review and can approve, a revised 
Development Cost Budget reflecting the number of units that were 
occupied during the previous six months, and the Unit Months Available 
used in the calculation of operating subsidy eligibility shall be 
revised to include the number of months the new/acquired units are 
actually occupied.

    Dated: March 24, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-11372 Filed 5-8-95; 8:45 am]
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