[Federal Register Volume 87, Number 105 (Wednesday, June 1, 2022)]
[Rules and Regulations]
[Pages 32965-32969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11543]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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. 

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Federal Register / Vol. 87, No. 105 / Wednesday, June 1, 2022 / Rules 
and Regulations

[[Page 32965]]



FEDERAL HOUSING FINANCE AGENCY

12 CFR Parts 1290 and 1291

RIN 2590-AB08


Affordable Housing Program--Technical Revisions

AGENCY: Federal Housing Finance Agency.

ACTION: Final rule; technical revisions.

-----------------------------------------------------------------------

SUMMARY: The Federal Housing Finance Agency (FHFA) is making technical 
revisions to its regulation governing the Federal Home Loan Banks' 
(Banks) Affordable Housing Program (AHP) and to related provisions in 
the Community Support Requirements regulation, which were both amended 
by a final rule published on November 28, 2018. These technical 
revisions are consistent with FHFA's policy intent, as reflected in the 
preamble discussions of the 2018 final rule, and do not involve any 
policy changes.

DATES: This rule is effective July 1, 2022.

FOR FURTHER INFORMATION CONTACT: Ted Wartell, Manager, Office of 
Housing and Community Investment, 202-649-3157, <a href="/cdn-cgi/l/email-protection#700415145e07110204151c1c30161816115e171f06"><span class="__cf_email__" data-cfemail="087c6d6c267f697a7c6d6464486e606e69266f677e">[email protected]</span></a>; 
Tiffani Moore, Supervisory Policy Analyst, Office of Housing and 
Community Investment, 202-649-3304, <a href="/cdn-cgi/l/email-protection#f98d909f9f989790d79496968b9cb99f919f98d79e968f"><span class="__cf_email__" data-cfemail="5b2f323d3d3a353275363434293e1b3d333d3a753c342d">[email protected]</span></a>; or Marshall 
Adam Pecsek, Assistant General Counsel, Office of General Counsel, 202-
649-3380, <a href="/cdn-cgi/l/email-protection#d3beb2a1a0bbb2bfbffda3b6b0a0b6b893b5bbb5b2fdb4bca5"><span class="__cf_email__" data-cfemail="ed808c9f9e858c8181c39d888e9e8886ad8b858b8cc38a829b">[email protected]</span></a> (these are not toll-free numbers); 
Federal Housing Finance Agency, 400 7th Street SW, Washington, DC 
20219. For TTY/TRS users with hearing and speech disabilities, dial 711 
and ask to be connected to any of the contact numbers above.

SUPPLEMENTARY INFORMATION: 

I. Summary of Revisions

    On November 28, 2018, FHFA published a final rule (2018 final rule) 
(83 FR 61186) that amended its regulation governing requirements for 
the Banks' AHP (12 CFR part 1291). Since publication of the 2018 final 
rule, FHFA has identified inadvertent omissions in the regulatory text, 
and opportunities for clarification and streamlining of the regulatory 
text and preamble language. This rule makes these technical revisions, 
which are summarized below and further described in Sections II. and 
III. below.
    <bullet> Clarifies that the equation in the 2018 final rule 
preamble illustrating the pro rata AHP subsidy repayment calculation 
more accurately describes the calculation if the word ``occupied'' were 
replaced with the word ``owned'';
    <bullet> Clarifies in the regulatory text that amendments to Bank's 
annual Targeted Community Lending Plan (TCLP) that relate to its AHP 
must be published no later than the publication date of its AHP 
Implementation Plan, regardless of whether a Bank plans to establish 
any Targeted Funds, which was inadvertently omitted from the regulatory 
text;
    <bullet> Reinserts the word ``construction'' inadvertently omitted 
from various places in the regulatory text related to owner-occupied 
units constructed with AHP subsidy, as they continue to be subject to 
the AHP retention agreement requirement;
    <bullet> Clarifies in the regulatory text that the criteria in a 
Bank's scoring tie-breaker methodology for its General Fund and any 
Targeted Funds must be selected from the applicable Fund's scoring 
criteria, as in identical to the scoring criteria and not modified 
versions of them;
    <bullet> Reinserts inadvertently omitted regulatory text exempting 
the Banks from the requirement to review annual certifications from 
owners or sponsors of Low-Income Housing Tax Credit (LIHTC) projects 
during the AHP long-term monitoring period;
    <bullet> Clarifies in the regulatory text that a Bank must review 
all annual certifications from AHP project sponsors or owners during 
the AHP long-term monitoring period (subject to certain exceptions), 
i.e., a Bank may not use a risk-based sampling plan to select the 
certifications it will review;
    <bullet> Clarifies the regulatory text governing a Bank's authority 
to establish various maximum AHP subsidy limits for its General Fund 
and any Targeted Funds; and
    <bullet> Streamlines the regulatory text by eliminating a 
superfluous regulatory provision on non-delegation regarding adoption 
of Bank policies on re-use of repaid AHP direct subsidies.

II. Clarification of Equation in 2018 Final Rule Preamble Illustrating 
Pro Rata AHP Subsidy Repayment Calculation--Sec.  1291.15(a)(7)(v)(A)

    Section 1291.15(a)(7)(v)(A) of the 2018 final rule revised the 
methodology for calculating the amount of AHP subsidy to be repaid by 
an AHP-assisted household in the event that the household's owner-
occupied unit is sold or refinanced during the AHP five-year retention 
period. One component of this calculation, retained but modified from 
the predecessor AHP regulation, is a requirement that the amount of AHP 
subsidy to be repaid be ``reduced on a pro rata basis per month until 
the unit is sold, transferred, or its title or deed transferred, or is 
refinanced, during the AHP five-year retention period.'' Consistent 
with this requirement, the preamble of the 2018 final rule stated that 
the AHP subsidy amount is to be ``reduced on a pro rata basis for the 
time that the household owned the unit until its sale or refinancing.'' 
83 FR 61203 (emphasis added). An equation in the preamble illustrating 
this pro rata calculation used the word ``occupied'' rather than 
``owned.'' Id. While ownership and occupancy are typically coextensive 
for AHP-assisted households, this may not always be the case. 
Accordingly, the equation reads more accurately if the word 
``occupied'' is replaced with the word ``owned'', as follows:

[[Page 32966]]

[GRAPHIC] [TIFF OMITTED] TR01JN22.045

III. Revisions to Regulatory Text

A. Requirement To Publish Targeted Community Lending Plan No Later Than 
Publication of AHP Implementation Plan--Sec. Sec.  1290.6(c), 
1291.13(a)(2)

    The 2018 final rule requires that a Bank publish its current TCLP 
on its publicly available website, and publish any amendments to its 
TCLP on the website within 30 days after the date of their adoption by 
the Bank's board of directors. The final rule further states that if a 
Bank plans to establish any Targeted Funds under its AHP, the Bank must 
publish its TCLP (as amended) on its website on or before the date of 
publication of its annual AHP Implementation Plan, and at least 90 days 
before the first day that applications may be submitted to the Targeted 
Fund, unless the Targeted Fund is specifically targeted to address a 
Federal- or state-declared disaster. 12 CFR 1290.6(c), 1291.13(a)(2).
    The preamble to the 2018 final rule stated that ``. . . the final 
rule requires the Banks to publish their TCLPs no later than the 
publication date of their AHP Implementation Plans.'' 83 FR 61197. The 
2018 final rule's regulatory text inadvertently omitted this TCLP 
publication timing requirement when a Bank does not plan to establish 
any Targeted Funds. Accordingly, to align the regulatory text with 
FHFA's stated intent, FHFA is amending Sec.  1290.6(c) of the Community 
Support Requirements regulation and Sec.  1291.13(a)(2) of the AHP 
regulation to require that a Bank's TCLP (as amended) must be published 
no later than the date of publication of the Bank's AHP Implementation 
Plan (as amended), regardless of whether a Bank plans to establish any 
Targeted Funds. Because a Bank's TCLP also addresses Bank activity and 
plans not related to its AHP (e.g., establishment of quantitative 
targeted community lending performance goals under Sec.  
1290.6(a)(5)(iv)), these amendments to the rule text specify that only 
those TCLP amendments related to the Bank's AHP must be published on or 
before publication of the annual AHP Implementation Plan.

B. Retention Agreements on Owner-Occupied Units Constructed With AHP 
Subsidy--Sec. Sec.  1291.1 (Definition of ``Retention Period''), 
1291.15(a)(7), 1291.23(d)(1)

    In several places in the 2018 final rule's regulatory text, the 
rule requires or references a requirement that an AHP-assisted owner-
occupied unit be subject to an AHP retention agreement if the AHP 
subsidy is used for the purchase, or purchase in conjunction with 
rehabilitation, of the unit, but inadvertently omits the word 
``construction'' in these provisions. This omission would suggest that 
AHP retention agreements are not required where AHP subsidy is used for 
construction of the unit. Omission of the word ``construction'' is 
correct with respect to households that receive AHP subsidy under the 
Bank's homeownership set-aside programs, as AHP subsidy may not be used 
for construction under those programs. However, the omission is not 
correct where AHP subsidy is used for construction under the Banks' 
competitive application programs (i.e., the General Fund and any 
Targeted Funds), a permissible use under those programs. As further 
discussed below, FHFA did not intend to eliminate this requirement for 
AHP retention agreements for the competitive application programs. In a 
July 2019 ``Questions and Answers'' document posted on FHFA's website 
and sent to the Banks, FHFA acknowledged this inadvertent omission and 
stated its intent to correct the error in a future rule.\1\
---------------------------------------------------------------------------

    \1\ See Questions and Answers on the November 28, 2018 Final 
Rule--Part I (July 2019), available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf.
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    The predecessor AHP regulation required retention agreements for 
all owner-occupied units for which AHP subsidy use was authorized--
i.e., purchase, rehabilitation, or construction of units in projects 
awarded subsidies under a Bank's competitive application program, and 
purchase or rehabilitation of units by households funded under a Bank's 
homeownership set-aside program(s). 12 CFR 1291.9(a)(7) (Jan. 1, 2018 
edition). In its proposed rule to amend the AHP regulation, FHFA 
proposed eliminating the requirement for retention agreements for all 
AHP-assisted owner-occupied units, regardless of how the AHP subsidy 
was used. 83 FR 11351. However, in the 2018 final rule, FHFA decided to 
eliminate the requirement for retention agreements only where the AHP 
subsidy is used solely for rehabilitation without an accompanying 
purchase. In reinserting the retention agreement language in the final 
rule, FHFA inadvertently omitted the existing regulatory references to 
``construction.''
    FHFA's intent in this regard is clear in the preamble discussion in 
the 2018 final rule. Where the preamble first summarizes the effect of 
the final rule, it states that the rule's effect is to ``remove the 
requirement for retention agreements for owner-occupied units where the 
AHP subsidy is used solely for rehabilitation,'' and includes no 
indication of an intent to remove the requirement under any other 
circumstances. Id. at 61186. The preamble further states that ``[i]n a 
change from the proposed rule, the final rule eliminates the current 
requirement for owner-occupied retention agreements where households 
use the AHP subsidy solely for rehabilitation of a unit, but retains it 
in other circumstances.'' Id. at 61192 (emphases added). This is 
further indicated by the subsequent analysis in the preamble, which 
acknowledges commenters' claims about the benefits of owner-occupied 
retention agreements, but only includes a justification for eliminating 
the requirement where the subsidy is used solely for rehabilitation 
without an accompanying purchase. See id. at 61193 (concluding that 
abuse, in the form of ``flipping,'' is unlikely ``where the AHP subsidy 
is used solely for rehabilitation of homes, with no accompanying 
purchase.'') Had FHFA intended to eliminate the requirement for 
retention agreements for owner-occupied units where the AHP subsidy is 
used for construction, the preamble would have included an 
acknowledgment of this change as well as a rationale, neither of which 
appears in the preamble.
    Accordingly, to align the regulatory text with FHFA's intent, FHFA 
is amending Sec.  1291.23(d)(1) to reinsert construction as a use of 
AHP subsidy in owner-occupied projects for which AHP retention 
agreements are required, and

[[Page 32967]]

also making conforming revisions to Sec. Sec.  1291.1 (definition of 
``retention period'') and 1291.15(a)(7) (introductory text).

C. Scoring Tie-Breaker Methodology--Sec.  1291.25(c)(3)

    The 2018 final rule requires a Bank to establish and implement a 
scoring tie-breaker policy for selecting between or among project 
applications receiving identical scores under its General Fund and any 
Targeted Funds in the same funding round when there is insufficient AHP 
subsidy to approve all of the tied applications but sufficient subsidy 
to approve one of them. The Bank is required to meet certain 
requirements specified in the final rule in establishing its scoring 
tie-breaker policy, including that the methodology used to break a 
scoring tie, which may differ for each Fund, must be ``drawn from'' the 
particular Fund's scoring criteria adopted in the Bank's AHP 
Implementation Plan. 12 CFR 1291.25(c)(3). The preamble to the 2018 
final rule states that, with one limited exception, the scoring tie-
breaker requirements are ``consistent with guidance FHFA has provided 
to the Banks and with the proposed rule.'' 83 FR 61212. That guidance, 
Advisory Bulletin 2013-06, provided examples of permitted scoring tie-
breaker methodologies that a hypothetical Bank could adopt, each of 
which incorporated scoring criteria identical to those included in the 
hypothetical Bank's AHP Implementation Plan.
    A question has arisen as to whether the scoring tie-breaker 
provision in the 2018 final rule permits a Bank to adopt a scoring tie-
breaker methodology that incorporates scoring criteria similar, but not 
identical, to specific scoring criteria for the applicable Fund in the 
Bank's AHP Implementation Plan. As indicated in the preamble to the 
2018 final rule, in light of the relevant guidance in Advisory Bulletin 
2013-06, FHFA intended that a Bank's scoring tie-breaker methodology 
for a particular Fund be identical to one or more scoring criteria for 
that Fund in the Bank's AHP Implementation Plan. The phrase ``drawn 
from'' was intended to indicate that a Bank would select, from all of 
the existing scoring criteria in its AHP Implementation Plan, one or 
more of those scoring criteria to serve as the scoring tie-breaker(s). 
It was not intended that a Bank could use modified versions of its 
existing scoring criteria.
    Accordingly, to more closely align the regulatory text with FHFA's 
intent, FHFA is amending Sec.  1291.25(c)(3) by replacing the phrase 
``drawn from'' with the phrase ``selected from.''

D. Exception to Annual Certification Requirement for LIHTC Projects 
During Long-Term Monitoring; Clarification That a Bank May Not Conduct 
Risk-Based Sampling of Annual Project Sponsor or Owner Certifications 
During the Long-Term Monitoring Period--Sec.  1291.50(c)(1)(i), 
(c)(2)(ii); Exception to Annual Certification Requirement for LIHTC 
Projects

    Section 1291.50(c)(1) of the 2018 final rule requires generally 
that each Bank conduct long-term monitoring of AHP-assisted rental 
projects for the duration of the AHP 15-year retention period. This 
monitoring includes Bank review of annual certifications by project 
sponsors or owners of compliance with the AHP household income and rent 
requirements and ongoing project financial viability (paragraph 
(c)(1)(i)). The predecessor AHP regulation provided for an exception to 
this annual certification requirement where the project received LIHTCs 
under paragraph (a)(2), or where the project received funds from a 
Federal, state or local government entity under paragraph (a)(3). 12 
CFR 1291.7(a)(2), (3) (Jan. 1, 2018 edition). The 2018 final rule 
retained the exception for projects receiving funds from such 
government entities in Sec.  1291.50(b), but in reorganizing the 
various monitoring provisions, inadvertently omitted the exception for 
LIHTC projects from Sec.  1291.50(c)(1)(i). FHFA's intent to retain 
this exception for LIHTC projects is clearly indicated in the preamble 
of the 2018 final rule, which states that: ``[c]onsistent with the 
current regulation and proposed rule, the final rule does not require 
the Banks to conduct long-term monitoring of AHP projects that received 
LIHTCs during the AHP 15-year retention period.'' 83 FR 61201. In the 
above-referenced ``Questions and Answers'' guidance document, FHFA 
acknowledged this inadvertent omission and stated its intent to correct 
it in a future rule.\2\
---------------------------------------------------------------------------

    \2\ See Questions and Answers on the November 28, 2018 Final 
Rule--Part I (July 2019), available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf.
---------------------------------------------------------------------------

    Accordingly, to align the regulatory text with FHFA's stated 
intent, FHFA is amending Sec.  1291.50(c)(1)(i) to provide that during 
long-term monitoring of AHP-assisted rental projects, a Bank is not 
required to review annual certifications by sponsors or owners of LIHTC 
projects.
    Scope of risk-based sampling. Section 1291.50(c)(1)(ii) of the 2018 
final rule requires that a Bank's written monitoring policies also 
include requirements for Bank review of back-up project documentation 
regarding household incomes and rents maintained by the project sponsor 
or owner, except for LIHTC projects and projects that received funds 
from a Federal, state or local government entity under Sec.  
1291.50(b)(1) and (2) as specified in separate FHFA guidance. Section 
1291.50(c)(2)(ii) provides that a Bank may use a reasonable, risk-based 
sampling plan to select the rental projects ``to be monitored under 
this paragraph (c),'' and to review the back-up project documentation 
and any other project documentation. The corresponding provision in the 
predecessor AHP regulation included annual project sponsor or owner 
certifications as eligible for risk-based sampling, but this option was 
removed by the 2018 final rule because, in practice, as noted in the 
preamble to the 2018 AHP proposed rule, the Banks review all annual 
project sponsor or owner certifications (subject to the exceptions 
discussed above), consistent with FHFA's expectation. 83 FR 11364. 
However, the phrase ``to be monitored under this paragraph (c)'' in 
Sec.  1291.50(c)(2)(ii) might be misread to suggest that a Bank may use 
a risk-based sampling plan to select the annual project sponsor or 
owner certifications it will review.
    Accordingly, to better align the regulatory text with FHFA's 
intent, FHFA is amending Sec.  1291.50(c)(1)(i) to provide that during 
AHP long-term monitoring, a Bank must review all annual project sponsor 
or owner certifications (subject to the exceptions discussed above), 
i.e., a Bank may not use a risk-based sampling plan under Sec.  
1291.50(c)(2)(ii) to select the annual project sponsor or owner 
certifications it will review.

E. Maximum Subsidy Limits--Sec.  1291.24(c)(1)

    Section 1291.24(c)(1) of the 2018 final rule authorizes a Bank to 
establish, in its discretion, a limit on the maximum amount of AHP 
subsidy available per member, per project sponsor, per project, or per 
project unit in a single AHP funding round under its General Fund and 
any Targeted Funds. The provision further states that a Bank may 
establish only one maximum subsidy limit per such entity for the 
General Fund and for each Targeted Fund, which must apply to all 
applicants to the specific Fund, but the maximum subsidy limit per 
project or per project unit may differ among the Funds.

[[Page 32968]]

    The text of Sec.  1291.24(c)(1) accurately reflects FHFA's intent, 
but prompted a request for clarification of the language, specifically, 
how many different AHP subsidy limits may a Bank establish within each 
General Fund and Targeted Fund, or across multiple Funds. FHFA's intent 
was not to prohibit a Bank from establishing more than one type of 
limit per Fund, but to require that for each type established, the 
quantitative subsidy limit be applied uniformly across such Fund.\3\ 
Nor did the predecessor AHP regulatory text, which was located at Sec.  
1291.5(c)(15)(i), prohibit a Bank from applying more than one type of 
subsidy limit to its competitive application program, and FHFA did not 
propose such a prohibition in the 2018 proposed rule.
---------------------------------------------------------------------------

    \3\ FHFA provided clarifying guidance in an April 2020 
``Questions and Answers'' document posted on its website and sent to 
the Banks. See Questions and Answers on the November 28, 2018 Final 
Rule--Part II (April 2020), available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/AHP-FAQs-4-6-2020.pdf.
---------------------------------------------------------------------------

    Accordingly, to provide greater clarity, FHFA is adding explanatory 
language in Sec.  1291.24(c)(1) stating that each General Fund or 
Targeted Fund may contain up to all four of these optional AHP subsidy 
limits, each of which must apply to all applicants to the specific 
Fund. A Bank's AHP subsidy limit per member must be the same for each 
of its Funds and its AHP subsidy limit per project sponsor must be the 
same for each of its Funds, but a Bank's AHP subsidy limit per project 
and per project unit may differ among the Funds.

F. Removal of Superfluous Provision on Non-Delegation of Authority To 
Adopt AHP Subsidy Re-Use Policies--Sec.  1291.64(b)(2)

    Section 1291.64(b)(2) of the 2018 final rule, which was retained 
from the predecessor AHP regulation (12 CFR 1291.8(f)(2)(ii) (Jan. 1, 
2018 edition)), prohibits a Bank's board of directors from delegating 
to Bank officers or other Bank employees the responsibility to adopt 
any Bank policies on re-use of repaid AHP direct subsidies in the same 
project. Sections 1291.13(b)(12) and 1291.64(b)(1) of the 2018 final 
rule, also retained from the predecessor AHP regulation (12 CFR 
1291.3(a)(7); 1291.8(f)(2)(i) (Jan. 1, 2018 edition)), require that 
these AHP subsidy re-use policies be included in the Bank's AHP 
Implementation Plan. Section 1291.13(b) of the 2018 final rule 
(introductory text) prohibits a Bank's board of directors from 
delegating to a committee of the board, Bank officers, or other Bank 
employees the responsibility for adopting or amending the Bank's AHP 
Implementation Plan, which, thus, includes adopting any AHP subsidy re-
use policies in the Plan. The non-delegation provision for AHP subsidy 
re-use policies in Sec.  1291.64(b)(2) is, therefore, superfluous.
    Accordingly, to streamline the regulatory text, FHFA is removing 
the non-delegation provision in Sec.  1291.64(b)(2), and making 
technical changes to the paragraph numbering in Sec.  1291.64(b) to 
reflect this removal.

IV. Public Notice and Comment

    The Administrative Procedures Act provides that when an agency for 
good cause finds that public notice and comment on a rule are 
impracticable, unnecessary, or contrary to the public interest, the 
agency may publish the rule in final form without prior public notice 
and comment. 5 U.S.C. 553(b)(B). Because this rule makes technical 
revisions that do not reflect any changes in the policy intent of the 
2018 final rule, publication of proposed amendments with an opportunity 
for public comment would serve no useful public purpose. Accordingly, 
FHFA finds that public notice and comment on this rule is unnecessary 
and is proceeding directly to a final rule.

V. Consideration of Differences Between the Banks and Enterprises

    Section 1313(f) of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 requires the FHFA Director, when promulgating 
regulations ``of general applicability and future effect'' relating to 
the Banks, to consider the differences between the Banks and Fannie Mae 
and Freddie Mac (the Enterprises) as they may relate to the Banks' 
cooperative ownership structure, mission of providing liquidity to 
members, affordable housing and community development mission, capital 
structure, and joint and several liability. 12 U.S.C. 4513(f). This 
rule applies only to the Banks. It makes technical revisions to align 
the 2018 final rule with FHFA's policy intent in that rule. In 
preparing the 2018 final rule, the Director considered the differences 
between the Banks and the Enterprises as they relate to the above 
factors, and determined that the amendments in the 2018 final rule were 
positive for the affordable housing mission of the Banks and neutral 
regarding the other statutory factors. Because this rule makes only 
technical revisions, none of which involves policy changes, no further 
analysis is needed under section 1313(f).

VI. Regulatory Determinations

A. Paperwork Reduction Act

    This rule does not contain any information collection requirement 
that would require the approval of the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.). 
Therefore, FHFA has not submitted any information to OMB for review for 
PRA purposes.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
a regulation that has a significant economic impact on a substantial 
number of small entities, small businesses, or small organizations must 
include an initial regulatory flexibility analysis describing the 
regulation's impact on small entities. Such an analysis need not be 
undertaken if the agency has certified that the regulation will not 
have a significant economic impact on a substantial number of small 
entities. 5 U.S.C. 605(b). FHFA certified that the 2018 final rule was 
not likely to have a significant economic impact on a substantial 
number of small entities because it applied to the Banks, which are not 
small entities for purposes of the Regulatory Flexibility Act. 83 FR 
61231. For these same reasons, and also because this rule makes only 
technical revisions to align the 2018 final rule with FHFA's policy 
intent in that rule, FHFA certifies that this rule is unlikely to have 
a significant economic impact on a substantial number of small 
entities.

C. Congressional Review Act

    In accordance with the Congressional Review Act (5 U.S.C. 801 et 
seq.), FHFA has determined that this rule is not a major rule and has 
verified this determination with the Office of Information and 
Regulatory Affairs of the OMB.

List of Subjects

12 CFR Part 1290

    Banks and banking, Credit, Federal home loan banks, Housing, 
Mortgages, Reporting and recordkeeping requirements.

12 CFR Part 1291

    Community development, Credit, Federal home loan banks, Housing, 
Low- and moderate-income housing, Mortgages, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, FHFA amends parts 1290 and 
1291 of title 12 of the Code of Federal Regulations as follows:

[[Page 32969]]

PART 1290-COMMUNITY SUPPORT REQUIREMENTS

0
1. The authority citation for part 1290 continues to read as follows:

    Authority:  12 U.S.C. 1430(g).


0
2. Amend Sec.  1290.6 by revising paragraph (c) to read as follows:


Sec.  1290.6  Bank community support programs.

* * * * *
    (c) Public access. A Bank shall publish its current Targeted 
Community Lending Plan on its publicly available website, and shall 
publish any amendments to its Targeted Community Lending Plan on the 
website within 30 days after the date of their adoption by the Bank's 
board of directors and no later than the date of publication on the 
website of its annual Affordable Housing Program Implementation Plan 
(as amended). If such amendments relate to the Bank's Affordable 
Housing Program, the Bank shall publish them no later than the date of 
publication on its website of its annual Affordable Housing Program 
Implementation Plan (as amended). If a Bank plans to establish any 
Targeted Funds under its Affordable Housing Program, the Bank must 
publish its Targeted Community Lending Plan (as amended) on the website 
at least 90 days before the first day that applications may be 
submitted to the Targeted Fund, unless the Targeted Fund is 
specifically targeted to address a Federal- or State-declared disaster.

PART 1291--FEDERAL HOME LOAN BANKS' AFFORDABLE HOUSING PROGRAM

0
3. The authority citation for part 1291 continues to read as follows:

    Authority:  12 U.S.C. 1430(j).


Sec.  1291.1  [Amended]

0
4. Amend Sec.  1291.1 in paragraph (1) of the definition of ``Retention 
period'' by:
0
a. Removing ``unit or'' and adding in its place ``unit,''; and
0
b. Adding ``, or for construction of the unit'' before ``; and''.

0
5. Amend Sec.  1291.13 by revising paragraph (a)(2) to read as follows:


Sec.  1291.13  Targeted Community Lending Plan; AHP Implementation 
Plan.

    (a) * * *
    (2) Public access. A Bank shall publish its current Targeted 
Community Lending Plan on its publicly available website, and shall 
publish any amendments to its Targeted Community Lending Plan on the 
website within 30 days after the date of their adoption by the Bank's 
board of directors and no later than the date of publication on the 
website of its annual AHP Implementation Plan (as amended). If such 
amendments relate to the Bank's AHP, the Bank shall publish them no 
later than the date of publication on its website of its annual AHP 
Implementation Plan (as amended). If a Bank plans to establish any 
Targeted Funds under its AHP, the Bank must publish its Targeted 
Community Lending Plan (as amended) on the website at least 90 days 
before the first day that applications may be submitted to the Targeted 
Fund, unless the Targeted Fund is specifically targeted to address a 
Federal- or State-declared disaster.
* * * * *


Sec.  1291.15  [Amended]

0
6. Amend Sec.  1291.15 in paragraph (a)(7) introductory text by:
0
a. Removing ``or purchase'' and adding in its place ``for purchase''; 
and
0
b. Adding ``or for construction'' after ``rehabilitation,''.


Sec.  1291.23  [Amended]

0
7. Amend Sec.  1291.23 in paragraph (d)(1) by:
0
a. Removing ``or for purchase'' and adding in its place ``for 
purchase''; and
0
b. Adding ``or for construction'' after ``rehabilitation,''.

0
8. Amend Sec.  1291.24 in paragraph (c)(1) by revising the second 
sentence and adding a third sentence to read as follows:


Sec.  1291.24  Eligible uses.

* * * * *
    (c) * * *
    (1) * * * Each General Fund or Targeted Fund may contain up to all 
four of these optional AHP subsidy limits, each of which must apply to 
all applicants to the specific Fund. A Bank's AHP subsidy limit per 
member must be the same for each of its Funds and its AHP subsidy limit 
per project sponsor must be the same for each of its Funds, but a 
Bank's AHP subsidy limit per project and per project unit may differ 
among the Funds * * *
* * * * *


Sec.  1291.25  [Amended]

0
9. Amend Sec.  1291.25 in paragraph (c)(3) by removing the word 
``drawn'' and adding in its place the word ``selected''.


Sec.  1291.50  [Amended]

0
10. Amend Sec.  1291.50 in paragraph (c)(1)(i) by removing the words 
``Bank review of annual certifications by project sponsors or owners to 
the Bank'' and adding in their place the words ``Bank review of all 
annual certifications to the Bank by project sponsors or owners, other 
than sponsors or owners of projects that have been allocated LIHTCs,''.


Sec.  1291.64  [Amended]

0
11. Amend Sec.  1291.64 by:
0
a. Removing paragraph (b)(2) and the heading for paragraph (b)(1).
0
b. Redesignating paragraphs (b)(1) introductory text and (b)(1)(i), 
(ii), and (iii) as paragraphs (b) introductory text and (b)(1), (2), 
and (3), respectively.

Sandra L. Thompson,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2022-11543 Filed 5-31-22; 8:45 am]
BILLING CODE 8070-01-P


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