[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Proposed Rules]
[Pages 10338-10340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4614]



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[[Page 10339]]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Chapter IX

[Docket No. N-95-3858; FR-3647-N-01]
RIN 2577-AB44


Vacancy Rule: Notice of Establishment of a Negotiated Rulemaking 
Advisory Committee and of First Meeting

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

ACTION: Notice of establishment of a negotiated rulemaking committee 
and of first meeting.

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SUMMARY: The Department is announcing the establishment of a Negotiated 
Rulemaking Advisory Committee under the Federal Advisory Committee Act 
(FACA). The purpose of the Committee is to discuss and negotiate a 
proposed rule that would change the current method of determining the 
payment of operating subsidies to vacant public housing units. The 
Committee consists of representatives with a definable stake in the 
outcome of a proposed rule. A charter for the Committee has been 
approved pursuant to the FACA, Executive Order 12838, and the 
implementing regulations. This notice also announces the time and place 
of the first Committee meeting, which will be open to the public.

DATES: The first meeting of the Committee will take place March 7-9, 
1995. On March 7, the meeting will start at 10:00 a.m. and run until 
completion; on March 8, the meeting will start at 9:00 a.m. and run 
until completion; and on March 9, the meeting will start at 9:00 a.m. 
and run until approximately 1:00 p.m.

ADDRESSES: The first meeting of the Committee will be held in the 
Captain's Room of the Channel Inn Hotel; 650 Water Street, SW., 
Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: John T. Comerford, Director, Financial 
Management Division, Public and Indian Housing, Room 4212, Department 
of Housing and Urban Development, 431 Seventh Street SW., Washington, 
DC 20410-0500; telephone (202) 708-1872, or (202) 708-0850 (TDD). 
(These telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Background

    On January 3, 1995, HUD published a notice of intent to establish a 
Negotiated Rulemaking Advisory Committee to discuss and negotiate a 
proposed rule that would change the current method of determining the 
payment of operating subsidies to vacant public housing units (60 FR 
304) (``January 3 notice''). Subsequent to the publication of the 
January 3 notice, a charter for the Committee was approved pursuant to 
the FACA, Executive Order 12838, and the implementing regulations at 41 
CFR 101-6.1007.
    The January 3 notice requested comment concerning the issues it 
should consider and the proposed membership of the Committee. The 
Department received two comments on the notice of intent. One commenter 
was a public housing agency (PHA) from the State of Alaska requesting 
Committee membership. The other commenter was a national association, 
the Council of Large Public Housing Authorities (CLPHA), with comments 
on membership balance and the efficacy of changing the current subsidy 
payment system in light of HUD's proposal to transform the public 
housing program. After review of the comments and for the reasons 
stated in the notice of intent, the Department has determined that 
established a negotiated rulemaking advisory committee on this subject 
is necessary and in the public interest.

Facilitators

    As stated in the notice of intent, the Federal Mediation and 
Conciliation Service (FMCS) will provide facilitators for this effort.

Substantive Issues for Negotiation

    The convening report identified the following issues to be 
addressed by the Committee:
    <bullet> What constitutes an acceptable level of vacancies for 
housing authorities of various size classifications?
    <bullet> What criteria should be used for providing less than full 
subsidy?
    <bullet> What criteria should be used for providing full subsidy 
despite less than full occupancy?
    CLPHA suggested that HUD delay negotiated rulemaking on these 
vacancy rule issues until HUD and Congress resolve the broader issues 
concerning HUD's future role in the area of public housing. While it is 
true that the Department is seeking to transform public housing and 
convert operating subsidies to PHAs into rental assistance to 
residents, that transformation will not be completed for a period of at 
least 6 years. The Department believes that changes are needed now to 
correct inequities and inefficiencies in the current rule and that to 
maintain the status quo is not good public policy.

Committee Membership

    The FMCS conveners consulted and interviewed over 30 officials of 
various organizations interested and affected by the vacancy rule. 
Three national Housing Agency (HA) associations--the Council of Large 
Public Housing Authorities (CLPHA), the National Association of Housing 
and Redevelopment Officials (NAHRO), and the Public Housing Authority 
Directors Association (PHADA)--worked together to suggest for committee 
membership executive directors of HAs that would reflect a balance 
among HAs in terms of size and number of vacant units. The national 
associations committed themselves to serving as staff support to the 
HAs selected for membership.
    The members of the Committee are the following:

Housing Agencies

    <bullet> Housing Authority of the city of Houston, TX.
    <bullet> Cuyahoga Metropolitan Housing Authority, Cleveland, OH.
    <bullet> Birmingham, AL Housing Authority.
    <bullet> New York City, NY Housing Authority.
    <bullet> Newark, NJ Housing Authority.
    <bullet> Reno, NV Housing Authority.
    <bullet> Littleton, CO Housing Authority.
    <bullet> Housing Authority of the city of South Bend, IN.

Tenant Organizations and Public Interest Groups

    <bullet> National Tenants Organization, Ft. Pierce, FL.
    <bullet> Bromley Health Tenant Management Corporation, Jamaica 
Plains, MA.
    <bullet> New Jersey Association of Public and Subsidized Housing 
Residents, Newark, NJ.
    <bullet> National Housing Law Project, Washington, DC.
    <bullet> Housing and Development Law Institute, Washington, DC.
    <bullet> Illinois Association of Housing Authorities.

Federal Government

    <bullet> U.S. Department of Housing and Urban Development
    The Executive Director of the Kodiak Island, AK, Housing Authority 
asked that she or another qualified Alaska housing representative be a 
member of the committee, saying that the interests [[Page 10340]] of 
remote housing authorities administering Indian housing programs should 
be represented. However, the Department has recognized the unique and 
special circumstances of administering public housing programs in 
Alaska by not applying the performance funding system (PFS) regulations 
to housing owned by HAs in Alaska, as well as the Virgin Islands, 
Puerto Rico, and Guam. Operating subsidy payments to these HAs are 
based upon budgets approved by HUD on a case-by-case basis. Since the 
purpose of the committee is to develop a proposed rule that would 
change the current PFS approach to payment of operating subsidies to 
vacant units, HAs that use a non-PFS approach do not have a direct 
interest that should be represented on the committee.
    CLPHA commented that large housing authorities that are directly 
experiencing serious vacancy problems should constitute the majority of 
the committee. The Department notes that housing authorities now have 8 
of the 14 committee memberships and that 1 of the public interest 
groups given membership is an association representing housing 
authorities in Illinois. Of the eight HA members, six are currently 
dealing with vacancy problems or have done so in the recent past. 
Clearly, the collective interests of HAs are well represented, as are 
the interests of those large authorities with vacancy problems. It 
should also be emphasized that the committee will try to achieve its 
goals of developing a new proposed vacancy rule through measures that 
seek to achieve a consensus among all committee members.

Tentative Schedule

    HUD will hold the first meeting of the committee on March 7-9, 
1995. On March 7, the meeting will start at 10:00 a.m. and run until 
completion; on March 8, the meeting will start at 9:00 a.m. and run 
until completion; and on March 9, the meeting will start at 9:00 a.m. 
and run until approximately 1:00 p.m. The location of the meeting will 
be the Captain's Room of the Channel Inn Hotel, 650 Water Street, SW, 
Washington, D.C. 20024. The purpose of the meeting will be to orient 
members to the negotiated rulemaking (reg-neg) process, establish a 
basic set of understandings and ground rules (protocols) regarding the 
process that will be followed in seeking a consensus, and begin to 
address the issues. This meeting is open to the public.
    Decisions with respect to future meetings will be made at the first 
meeting and from time to time thereafter. Notices of future meetings 
will be published in the Federal Register if time permits.
    To prevent delays that might postpone timely issuance of a proposed 
rule, HUD intends to terminate the committee's activities if it does 
not reach consensus within 5 months of the first meeting. The process 
may end earlier if the FMCS conveners/facilitators believe that 
sufficient progress cannot be made or that an impasse has developed 
that cannot be resolved.

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

    Dated: February 21, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-4614 Filed 2-21-95; 2:31 pm]
BILLING CODE 4210-33-M