This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

19168

Vol. 60, No. 73

Monday, April 17, 1995

DEPARTMENT OF AGRICULTURE

Rural Housing and Community

Development Service

Rural Business and Cooperative

Development Service

Rural Utilities Service

Consolidated Farm Service Agency

7 CFR Part 1944

RIN 0575—AB43

Housing Preservation Grant Program

AGENCIES: Rural Housing and

Community Development Service, Rural

Business and Cooperative Development

Service, Rural Utilities Service, and

Consolidated Farm Service Agency,

USDA.

ACTION: Proposed rule.

SUMMARY: The Rural Housing and

Community Development Service

(RHCDS), a successor Agency to the

Farmers Home Administration (FmHA),

proposes to amend its Housing

Preservation Grant regulations. The

intended effect is to allow replacement

housing where the grantee has

determined that the costs for repair and

rehabilitation on the recipient’s

(individual homeowners only) existing

housing are not economically feasible or

practical. These revisions will bring the

regulations into conformance with the

Housing and Community Development

Act of 1992 amending the Housing

Preservation Grant program, Section 533

of the Housing Act of 1949.

DATES: Comments must be received on

or before June 16, 1995.

ADDRESSES: Submit written comments

to the office of the Chief, Regulations

Analysis and Control Branch, Rural

Economic and Community

Development, Room 6348, South

Agriculture Building, Washington, D.C.

20250. All comments made pursuant to

this notice will be available for public

inspection at the above address.

FOR FURTHER INFORMATION CONTACT: Sue

M. Harris, Senior Loan Specialist,

Special Authorities Branch, Multiple

Housing Processing Division, RHCDS,

USDA, Washington, D.C. 20250,

Telephone (202) 720–1606 (This is not

a toll-free number).

SUPPLEMENTARY INFORMATION:

Classification

This rule has been determined to be

not-significant for purpose of Executive

Order 12866 and therefore has not been

reviewed by OMB.

The proposed regulation has been

reviewed in light of Executive Order

12778 and meets the applicable

standards provided in sections 2(a) and

2(b)(2) of that Order. Provisions within

this part which are inconsistent with

state law are controlling. All

administrative remedies pursuant to 7

CFR Part 1900 Subpart B must be

exhausted prior to filing suit.

Paperwork Reduction Act

The information collection

requirements contained in this

regulation have been approved by the

Office of Management and Budget

(OMB) under the provisions of 44 U.S.C.

Chapter 35 and have been assigned

OMB control number 0575–0115 in

accordance with the Paperwork

Reduction Act of 1980 (44 U.S.C. 3507).

This proposed rule does not revise or

impose any new information collection

or recordkeeping requirement from

those approved by OMB.

Environmental Impact Statement

This document has been reviewed in

accordance with 7 CFR Part 1940,

Subpart G, ‘‘Environmental Program.’’ It

is the determination of RHCDS that this

action does not constitute a major

Federal action significantly affecting the

quality of the human environment and,

in accordance with the National

Environmental Policy Act of 1969, P.L.

91–190, an environmental impact

statement is not required.

Programs Affected

This program/activity is listed in the

Catalog of Federal Domestic Assistance

under number 10.433, Housing

Preservation Grants.

Intergovernmental Consultation

This program is subject to the

provisions of Executive Order 12372

which requires intergovernmental

consultation with State and local

officials (7 CFR part 3015, Subpart V, 48

FR 29115, June 24, 1983.)

Regulatory Flexibility Act

The Administrator has determined

that the proposed action will not have

a significant economic impact on a

substantial number of small entities

because it contains normal business

recordkeeping requirements and

minimal essential reporting

requirements. The proposed action will

only affect a small number of rural

communities.

Background and Drafting Information

The proposed rule incorporates Title

VII, Section 711 of the Housing and

Community Development Act of 1992

(Pub. L. 102–550, dated October 28,

1992) amending Section 533 of the

Housing Act of 1949, 42 U.S.C. 1490m,

allowing for replacement housing where

the grantee has determined that the

costs for repair and rehabilitation on the

recipient’s (individual homeowners

only) existing housing is not

economically feasible or practical.

RHCDS is making no other significant

changes other than allowing for

replacement housing where the grantee

has determined that the costs for repair

and rehabilitation on the recipient’s

(individual homeowner) existing

housing are not economically feasible or

practical.

Lists of Subjects for 7 CFR Part 1944

Grant programs—Housing and

community development, Home

improvement, Loan programs—Housing

and community development, Nonprofit

organizations, Rural housing.

Therefore, as proposed, Chapter XVIII,

Title 7, Code of Federal Regulations, is

amended as follows:

PART 1944—HOUSING

1. The authority citation for Part 1944

continues to read as follows:

Authority: 42 U.S.C. 1480; 5 U.S.C. 301; 7

CFR 2.23 and 2.70.

Subpart N—Housing Preservation

Grants

2. Section 1944.651 is amended by

removing the words ‘‘if such person has

capacity to contract’’ in paragraph (b)

and by revising the last two sentences

of paragraph (a) to read as follows:
Federal Register / Vol. 60, No. 73 / Monday, April 17, 1995 / Proposed Rules 19169

§ 1944.651 General.

(a) * * * Such assistance will be used

to reduce the cost of repair and

rehabilitation, to remove or correct

health or safety hazards, to comply with

applicable development standards or

codes, or to make needed repairs to

improve the general living conditions of

the resident(s), including improved

accessibility by persons with handicaps.

Individual housing that is owner/

occupied and is determined by the

grantee to be beyond repair or

rehabilitation may qualify for

replacement housing.

* * * * *

3. Section 1944.652 is revised to read

as follows:

§ 1944.652 Policy.

(a) The policy of RHCDS is to provide

HPG’s to grantees to operate a program

which finances repair and rehabilitation

activities to individual housing, rental

properties, or co-ops for very low- and

low-income persons. Individual housing

that is owner/occupied and is

determined by the grantee to be beyond

repair or rehabilitation may qualify for

replacement housing. Grantees are

expected to:

(1) Coordinate and leverage funding

for repair and rehabilitation activities,

as well as replacement housing, with

housing and community development

organizations and/or activities operating

in the same geographic area; and

(2) Focus the program to rural areas

and smaller communities so that it

serves very low- and low-income

persons.

(b) RHCDS intends to permit grantees

considerable latitude in program design

and administration. The forms or types

of assistance must provide the greatest

long term benefit to the greatest number

of persons residing in individual

housing, rental properties, or co-ops

needing repair and rehabilitation, or

replacement of individual housing.

(c) Repairs and rehabilitation or

replacement activities affecting

properties on or eligible for listing on

the National Register of Historic Places

will be accomplished in a manner that

supports national historic preservation

objectives as specified in § 1944.673 of

this subpart.

4. Section 1944.653 is amended by

adding a sentence to the end of the

paragraph to read as follows:

§ 1944.653 Objective.

* * * Further, individual housing

that is owner/occupied and is

determined by the grantee to be beyond

repair or rehabilitation may qualify for

replacement, except as specified in

§ 1944.659 of this subpart.

5. Section 1944.656 is amended by

adding a sentence to the end of the

definition of ‘‘Housing preservation’’

and by adding the definition of

‘‘Replacement housing’’ in alphabetical

order, to read as follows:

§ 1944.656 Definitions.

* * * * *

Housing preservation. * * * The term

housing preservation does not apply to

replacement housing.

* * * * *

Replacement housing. The

replacement of existing, individual

owner/occupied housing where repair

and/or rehabilitation assistance is not

economically feasible or practical. The

term replacement housing does not

apply to housing preservation.

* * * * *

§ 1944.658 [Amended]

6. Section 1944.658 is amended by

adding the words ‘‘, as well as for

replacement housing’’ after the word

‘‘assistance’’ in paragraph (a)(2).

7. Section 1944.659 is added to read

as follows:

§ 1944.659 Replacement housing.

Replacement housing applies only to

existing, individual owner/occupied

housing. Replacement housing does not

apply to rental properties (single-unit or

multiple-unit) or to cooperative housing

projects. The grantee is responsible for

determining the extent of the repairs

and rehabilitation prior to any

assistance given to an individual

homeowner. If the cost of such repairs

and rehabilitation is not economically

feasible or practical, then the grantee

may consider replacing the existing

housing with replacement housing,

subject to the following:

(a) The HPG grantee:

(1) Shall document the total costs for

all repairs and rehabilitation on the

existing housing; and

(2) Shall document the basis for the

determination that the costs for all

repairs and rehabilitation for the

existing housing are not economically

feasible or practical;

(b) The individual homeowner:

(1) Must meet all requirements of

§ 1944.661 of this subpart;

(2) Must have been denied a RHCDS

section 502 loan;

(3) Must lack the income and

repayment ability to replace their

existing home without the assistance of

the HPG grantee; and

(4) Must be able to afford the

replacement housing on terms set forth

by the HPG grantee;

(c) The existing home:

(1) Must be demolished to make way

for the replacement housing; and

(2) May not be sold to make way for

the replacement housing;

(d) The replacement housing:

(1) May be either new housing or a

dwelling brought onto the site of the

existing housing;

(2) May use no more than $15,000 in

HPG funds;

(3) Must meet all applicable

requirements of § 1944.16 of Subpart A

of this part; and

(4) May not be sold for a minimum of

5 years.

(e) Any monies received by the

homeowner from selling salvaged

material after demolishing the existing

home must be used towards the

replacement housing.

8. Section 1944.661 is amended by

revising the introductory text of

paragraph (b)(2) and paragraph (b)(3) to

read as follows:

§ 1944.661 Individual homeowners—

eligibility for HPG assistance.

* * * * *

(b) * * *

(2) An undivided or divided interest

in the property to be repaired,

rehabilitated, or replaced when not all

of the owners are occupying the

property. HPG assistance may be made

in such cases when:

* * * * *

(3) A leasehold interest in the

property to be repaired, rehabilitated, or

replaced. When the potential HPG

recipient’s ‘‘ownership’’ interest in the

property is based on a leasehold

interest, the lease must be in writing

and a copy must be included in the

grantee’s file. The unexpired portion of

the lease must not be less than 5 years

and must permit the recipient to make

modifications to the structure or replace

it without increasing the recipient’s

lease cost.

* * * * *

9. Section 1944.664 is amended by

redesignating paragraphs (d) through (g)

as (e) through (h) respectively, by

revising the words ‘‘to make

improvements that’’ to read ‘‘where

they’’ in the first sentence of the

introductory text of newly redesignated

paragraph (f); by adding the words ‘‘or

replacement housing’’ after the word

‘‘preservation’’ in the introductory text

of newly redesignated paragraph (g); by

revising the section heading, paragraph

(a), and newly redesignated paragraphs

(h)(1) and (h)(3); and by adding

paragraph (d) to read as follows:

§ 1944.664 Housing preservation and

replacement housing assistance.

(a) Grantees are responsible for

providing loans, grants, or other

comparable assistance to homeowners,
19170 Federal Register / Vol. 60, No. 73 / Monday, April 17, 1995 / Proposed Rules

owners of rental properties, co-ops for

housing preservation or for replacement

housing as described in § 1944.656 of

this subpart.

* * * * *

(d) Authorized replacement housing

assistance includes, but is not limited

to:

(1) Building a dwelling and providing

related facilities for use by the

individual homeowner as a permanent

resident;

(2) Providing a safe and sanitary water

and waste disposal system, together

with related plumbing and fixtures,

which will meet local health

department requirements;

(3) Providing minimum site

preparation, including grading,

foundation plantings, and minimal

landscaping;

(4) Providing special design features

or equipment when necessary because

of physical handicap or disability of the

HPG recipient or member of the

household;

(5) Purchasing and installing

approved energy saving measures and

approved furnaces and space heaters

which use a type of fuel that is

commonly used, and is economical and

dependably available;

(6) Providing storm cellars and similar

protective structures, if typical for the

area;

(7) Paying real estate taxes which are

due and payable on the existing

dwelling/site at the time of closing, if

this amount is not a substantial part of

the HPG assistance;

(8) Providing living area for the HPG

recipient and all members of the

household as specified in § 1944.16 (c)

of subpart A of this part; and

(9) Moving a dwelling onto the site of

the demolished, previously existing

housing and meeting all HPG housing

preservation requirements for repair and

rehabilitation;

(10) Providing funds for demolishing

the existing housing; and

(11) Any other cost that is reasonable

and justifiable directly related to

replacement activities.

* * * * *

(h) * * *

(1) Assist in the construction or

completion of an addition (excluding

paragraph (c)(11) of this section) or a

new dwelling. This paragraph does not

apply to replacement housing.

* * * * *

(3) Repair or rehabilitate, as well as

replace any property located in the

Coastal Barrier Resources System.

10. Section 1944.665 is amended by

revising the heading and the first

sentence to read as follows:

§ 1944.665 Supervision and inspection of

work.

Grantees are responsible for

supervising all rehabilitation and repair

work, as well as replacement housing

financed with HPG assistance. * * *

§ 1944.666 [Amended]

11. Section 1944.666 is amended by

revising the reference ‘‘§ 1944.64 (f)’’ to

read ‘‘§ 1944.664 (g)’’ in the last

sentence of paragraph (b)(3), and by

adding the words ‘‘, as well as for

replacement housing (individual

homeowners only)’’ after the word

‘‘rehabilitation’’ in paragraph (b)(6).

§ 1944.667 [Amended]

12. Section 1944.667 is amended by

adding the words ‘‘, or for individual

homes replaced,’’ after the word

‘‘rehabilitated’’ in the second sentence

of the introductory text of paragraph (a).

13. Section 1944.670 is amended by

revising paragraph (b) to read as follows:

§ 1944.670 Project income.

* * * * *

(b) Grantees are encouraged to

establish a program which reuses

income from loans after the grant period

for continuing repair and rehabilitation

activities, as well as for individual

housing replaced.

14. Section 1944.671 is amended by

revising paragraph (a)(2) to read as

follows:

§ 1944.671 Equal opportunity

requirements and outreach efforts.

* * * * *

(a) * * *

(2) The term ‘‘residential real estaterelated transaction’’ includes the

making or purchasing of loans, grants,

or other financial assistance for

purchasing, constructing, improving,

repairing, or rehabilitating a unit or

dwelling, as well as for replacement

housing for individual homeowners.

* * * * *

15. Section 1944.672 is amended by

adding the words ‘‘or housing

replacement’’ after the word

‘‘preservation’’ in the fourth sentence of

paragraph (b); in paragraph (d), by

revising the reference ‘‘Paragraph VII of

exhibit C of this subpart’’ to read

‘‘Paragraph VIII of exhibit C of this

subpart’’; and by revising the first

sentence of paragraphs (a) and (b) to

read as follows:

§ 1944.672 Environmental requirements.

* * * * *

(a) The approval of an HPG grant for

the repair, rehabilitation, or replacement

of dwellings shall be a Class I action.

* * *

(b) The use of HPG funds by the

grantee to repair, rehabilitate, or replace

specific dwellings is generally exempt

from an RHCDS environmental

review. * * *

* * * * *

§ 1944.673 [Amended]

16. Section 1944.673 is amended by

adding the words ‘‘and replacement

housing’’ after the word ‘‘preservation’’

in the section heading, and by revising

the words ‘‘rehabilitation or repair’’ to

read ‘‘rehabilitation, repair, or

replacement’’ in the first sentence of

paragraph (b).

17. Section 1944.683 is amended by

redesignating paragraphs (b)(3) through

(b)(7) as paragraphs (b)(4), through (b)(8)

respectively, by adding the words ‘‘, as

well as for replacement housing,’’ after

the word ‘‘rehabilitation’’ in newly

redesignated paragraph (b)(4)(i) and

after the word ‘‘financed’’ in newly

redesignated paragraph (b)(8), and by

adding a new paragraph (b)(3) to read as

follows:

§ 1944.683 Reporting requirements.

* * * * *

(b) * * *

(3) The use of HPG and any other

funds for replacement housing.

* * * * *

Dated: March 22, 1995.

Michael V. Dunn,

Acting Under Secretary, Rural Economic and

Community Development.

[FR Doc. 95–9262 Filed 4–14–95; 8:45 am]

BILLING CODE 3410–07–U

NUCLEAR REGULATORY

COMMISSION

10 CFR Parts 50 and 70

RIN 3150–AF27

Physical Security Plan Format

Changes

AGENCY: Nuclear Regulatory

Commission.

ACTION: Proposed rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is proposing to

amend its regulations to eliminate the

requirement for applicants for power

reactor and Category I fuel cycle

licenses to submit physical security

plans in two parts. This action is

necessary to allow for a quicker and

more efficient review of the physical

security plans.

DATES: The comment period expires

May 17, 1995. Comments received after

this date will be considered if it is