45368 Federal Register / Vol. 73, No. 151 / Tuesday, August 5, 2008 / Proposed Rules 

CBP Form 349 and payment must be 

submitted electronically to CBP using 

the Automated Clearinghouse (ACH) via 

an Internet account established by the 

payer and located at http:// 

www.pay.gov. Fees must be paid for all 

shipments unloaded and admitted to the 

zone, or in the case of direct deliveries 

under §§ 146.39 and 146.40 of this 

chapter, unloaded and received in the 

zone under the bond of the foreign trade 

zone operator. 

(3) * * * 

(ii) Fee payment. The operator of the 

passenger-carrying vessel must pay the 

accumulated fees for which he is liable 

on a quarterly basis in accordance with 

paragraph (f) of this section by 

submitting to CBP a Harbor 

Maintenance Fee Quarterly Summary 

Report, CBP Form 349. The CBP Form 

349 must either be mailed to the Office 

of Finance, Revenue Division, Customs 

and Border Protection, 6650 Telecom 

Drive, Indianapolis, Indiana 46278, with 

a check or money order payable to U.S. 

Customs and Border Protection, or the 

CBP Form 349 and payment must be 

submitted electronically to CBP using 

the Automated Clearinghouse (ACH) via 

an Internet account established by the 

payer and located at http:// 

www.pay.gov. 

* * * * * 

Jayson P. Ahern, 

Acting Commissioner, U.S. Customs and 

Border Protection. 

Approved: July 31, 2008. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. E8–17967 Filed 8–4–08; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 903, 941, 945, and 966 

[Docket No. FR–4990–P–01] 

RIN 2577–AC59 

Streamlining Public Housing Programs 

AGENCY: Office of the Assistant 

Secretary for Public and Indian 

Housing, HUD. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

support HUD’s overall objective to 

streamline the regulations governing 

public housing programs and to 

facilitate the transition of public 

housing agencies (PHAs) to asset 

management. In general, this proposed 

rule would streamline portions of the 

public housing regulations, and more 

closely align the regulatory framework 

of public housing with other federally 

subsidized housing programs, providing 

PHAs greater flexibility within the 

parameters of current law. This 

proposed rule offers general principles 

and basic guidelines for PHAs to follow, 

rather than overly prescriptive 

measures, thus allowing PHAs to 

operate projects more efficiently as 

PHAs move toward asset management. 

DATES: Comment Due Date: October 6, 

2008. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this proposed rule. There are two 

methods for comments to be submitted 

as public comments and to be included 

in the public comment docket for this 

rule. Additionally, all submissions must 

refer to the above docket number and 

title. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

Seventh Street, SW., Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may 

submit comments electronically through 

the Federal eRulemaking Portal at 

http://www.regulations.gov. HUD 

strongly encourages commenters to 

submit comments electronically. 

Electronic submission of comments 

allows the commenter maximum time to 

prepare and submit a comment, ensures 

timely receipt by HUD, and enables 

HUD to make them immediately 

available to the public. Comments 

submitted electronically through the 

http://www.regulations.gov Web site can 

be viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as public 

comments, comments must be submitted 

through one of the two methods specified 

above. Again, all submissions must refer to 

the docket number and title of the rule. No 

Facsimile Comments. Facsimile (FAX) 

comments are not acceptable. 

Public Inspection of Public 

Comments. All properly submitted 

comments and communications 

submitted to HUD will be available for 

public inspection and copying between 

8 a.m. and 5 p.m. weekdays at the above 

address. Due to security measures at the 

HUD Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at (202) 708–

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

via TTY by calling the toll-free Federal 

Information Relay Service at (800) 877–

8339. Copies of all comments submitted 

are available for inspection and 

downloading at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Bessy M. Kong, Deputy Assistant 

Secretary, Office of Policy, Program and 

Legislative Initiatives, Office of Public 

and Indian Housing, telephone number 

(202) 708–0713, extension 2548 (this is 

not a toll-free number). Persons with 

hearing or speech impairments may 

access these numbers through TTY by 

calling the toll-free Federal Information 

Relay Service at (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On September 19, 2005, at 70 FR 

54983, HUD published a final rule 

implementing revisions to the Public 

Housing Operating Fund program, 

providing for a new formula for 

distributing operating subsidy to PHAs, 

and establishing requirements for PHAs 

to convert to asset management. That 

final rule was based substantially on the 

recommendations of the congressionally 

funded Harvard University Graduate 

School of Design study on the cost of 

operating well-run public housing 

(Harvard Cost Study). Appendix H of 

the Harvard Cost Study included a list 

of requirements unique to public 

housing that, if alleviated or otherwise 

eliminated, would either make it easier 

for PHAs to transition to asset 

management or would more closely 

conform the public housing regulatory 

environment with that of other assisted 

housing programs. Generally, HUD 

agrees that streamlining the 

requirements and procedures included 

in the Harvard Cost Study would make 

the transition to asset management 

easier. Streamlining these processes 

would also increase PHA flexibility and 

reduce program costs. 

This proposed rule does not, however, 

address all of the recommendations of 

the Harvard Cost Study. Specifically, 

while the Harvard Cost Study and other 

industry representatives identified the 

Department’s regulations in the area of 

tenant participation, codified at 24 CFR 

part 964, as an area that would benefit 

from streamlining, the Department has 

chosen not to address part 964 in this 

rulemaking, but will consider 

addressing it separately. 


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II. This Proposed Rule 

A. Overview of Proposed Changes 

This proposed rule would amend 24 

CFR part 903 to eliminate procedural 

requirements regarding the 

implementation of deconcentration 

policy. PHAs would no longer be 

required to determine the average 

income of all families residing in all 

covered developments, the average 

income of all families residing in each 

covered development, and whether each 

of the covered developments fall above, 

within, or below the Established Income 

Range. Part 903 would also be amended 

to remove unnecessary reporting 

requirements for PHA plans. PHAs 

would no longer be required to provide 

annual updates on PHA progress toward 

meeting goals described in the 5-year 

plan. Eliminating these requirements 

would benefit PHAs by reducing staff 

time devoted to administrative tasks and 

by achieving cost savings through 

reduced paperwork. 

Part 941 would be revised to provide 

PHAs greater flexibility to structure 

mixed-finance transactions. Under the 

proposed rule, a PHA partner or owner 

entities would be permitted to serve as 

the general contractor for a mixedfinance project or development if 

certain conditions are met. PHAs would 

benefit from more options to develop 

mixed-finance projects and reduced 

project costs by working with a PHA 

partner or owner entity. 

This proposed rule would also change 

24 CFR part 966 to remove procedural 

requirements pertaining to grievances. 

PHAs would be permitted to establish 

their own procedures for informally 

settling grievances, obtaining a hearing, 

and preparing and distributing the 

decisions of the hearing officer or 

hearing panel. The elimination of these 

requirements would reduce PHA staff 

and administrative costs and increase 

their capacity to respond to hearing 

requests. 

HUD recognizes that PHAs may incur 

some initial costs in making the 

determinations afforded by the 

increased flexibility under the proposed 

rule. However, the Department believes 

that the benefits to both the Department 

and PHAs far outweigh any costs 

associated with this proposed rule. 

Subsequent guidance will provide 

assistance in implementing this rule and 

will also help to minimize additional 

cost burdens associated with it. 

B. Part-by-Part Discussion 

This proposed rule would amend 24 

CFR part 903 (Public Housing Agency 

Plans); part 941 (Public Housing 

Development); and subpart B of part 966 

(Grievance Procedure). This proposed 

rule also removes 24 CFR part 945 

(Designated Housing). This section of 

the preamble discusses the proposed 

regulatory amendments to these parts. 

1. Part 903—Public Housing Agency 

Plans 

Subpart A of part 903, entitled 

‘‘Deconcentration of Poverty and Fair 

Housing in Program Admissions,’’

would be amended to remove 

procedural requirements not required by 

statute. The elimination of these 

requirements would allow PHAs 

flexibility in bringing higher-income 

tenants into lower-income 

developments and lower-income tenants 

into higher-income developments, to 

avoid a concentration of low-income 

families as prohibited by law. HUD data 

indicate that most PHAs have few 

properties that fall outside the 

established income range. Additionally, 

PHAs that have developments above the 

established income range often are 

exempt, since the income level is 

considered extremely low-income. 

The rule would remove prescriptive 

language in § 903.2(c) pertaining to 

steps for implementation of 

deconcentration and elements of 

explanations or justifications, and 

would allow PHAs to establish 

discretionary strategies. A PHA’s 

deconcentration plan and practices may 

not take preference over the 

requirements for provision of accessible 

units for disabled tenants. Section 

903.2(d), which sets forth fair housing 

requirements, would be streamlined and 

moved to subpart B of 903. 

Subpart B of part 903, entitled ‘‘PHA 

Plans,’’ would be amended to remove 

certain obsolete references and 

requirements that address initial plan 

requirements. Also, references to the 

Drug Elimination Grant Program, which 

is no longer funded, would be removed. 

Further, this subpart would be amended 

to include statutory language not 

previously contained in the regulation 

pertaining to PHA Plan updates, 

including language requiring 5-year and 

annual plans to include statements 

about goals, activities, objectives, 

policies, or programs that will enable a 

PHA to serve the needs of child and 

adult victims of domestic violence, 

dating violence, sexual assault, or 

stalking, in accordance with the 

requirements of the Violence Against 

Women and Department of Justice 

Reauthorization Act of 2005 (Pub. L. 

109–162). 

Section 903.7, which describes the 

information a PHA must provide in its 

Annual Plan, would also be revised to 

incorporate fair housing requirements 

and to more closely reflect statutory 

provisions. Currently codified 

information that is more appropriately 

provided in non-regulatory guidance 

would also be removed from the 

regulations, including some of the 

detailed information related to 

statements of housing needs, financial 

resources, and capital needs. The 

requirement for a statement of PHA 

grievance procedures would be 

amended to conform to changes to part 

966 described elsewhere in this 

proposed rule. Redundant information 

would be revised or removed to clarify 

the regulation, including the 

requirement for a statement about 

public housing developments 

designated as housing for elderly 

families or families with disabilities. 

Sections 903.11 and 903.12, which 

provide information for submitting 

streamlined plans, would be removed. 

The submission process for all PHAs 

would be limited to policies concerning 

elements within HUD’s scope of review. 

The scope of review is addressed in the 

regulation. These regulations address 

certain discretionary policies for which 

there is no HUD approval mechanism 

other than the Annual Plan. HUD would 

not impose any additional requirements 

similar to those that currently exist 

relating to submission requirements for 

small PHAs, high-performing PHAs, or 

those that administer only tenant-based 

assistance. HUD believes that such 

information is more suitable for nonregulatory guidance rather than in a 

regulation. PHAs would continue to 

provide information on how the public 

may reasonably obtain additional 

information on the PHA policies 

contained in the Annual Plan. 

Section 903.13 would be amended to 

increase PHA flexibility, reduce 

program costs, and facilitate the 

transition to asset management. 

Specifically, § 903.13 would be 

amended to clarify § 903.13(a), remove 

the prescriptive requirements in 

§ 903.13(b), and conform the section to 

requirements provided for by statute. 

Section 903.23, which describes the 

process by which HUD reviews, 

approves, or disapproves an Annual 

Plan, would be revised to remove 

repetitive language that is already 

addressed in this section. 

2. Part 941—Public Housing 

Development 

Section 941.606 would be amended to 

provide greater flexibility for PHAs to 

structure mixed-finance transactions. It 

would allow a PHA partner and/or 

owner entities (or other entities with an 

identity of interest) to serve as the 

general contractor for a mixed-finance 


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project or development if the PHA or its 

partner conducts a public bid process 

and the identity of interest general 

contractor’s bid is the lowest bid 

submitted in response to a public 

request for bids, or the PHA submits 

written justification and provides an 

independent third-party cost estimate 

that demonstrates that the identity of 

interest general contractor’s costs are 

less than or equal to the independent 

third-party estimate. 

3. Part 945—Designated Housing—

Public Housing Designated for 

Occupancy by Disabled, Elderly, or 

Disabled and Elderly Families 

Part 945 would be removed because it 

is now obsolete. Part 945 does not 

incorporate the requirements of section 

10(a) of the Housing Opportunity 

Program Extension Act of 1996, Public 

Law 104–120 (approved March 28, 

1996). Section 10(a) amended section 7 

of the U.S. Housing Act of 1937 (42 

U.S.C. 1437e), which governs 

designated housing for elderly and 

disabled families. The 1996 Act requires 

a PHA that wants to designate certain 

housing for these populations to have an 

approved designated housing plan, 

which has a substantially different set of 

requirements than the current part 945 

being removed. 

4. Part 966 Subpart B—Grievance 

Procedures and Requirements 

In subpart B, procedural 

requirements, not required by statute, 

would be eliminated to allow PHAs 

maximum flexibility in establishing and 

implementing grievance procedures. 

Section 966.54, which describes the 

requirements for an informal settlement 

of grievances, would be removed to 

allow PHAs flexibility in establishing 

such a process. 

Section 966.55, which describes the 

procedures to obtain a hearing, would 

be removed. PHAs would now have the 

flexibility to establish grievance 

procedures addressing failure to request 

a hearing and requiring escrow deposits. 

Matters related to scheduling and 

location would be merged with 

procedures governing the hearing. 

Sections 966.56 and 966.57, which 

describe the procedures governing the 

hearing and decision of the hearing 

officer would be revised to remove 

language that is overly prescriptive or 

repetitive. For instance, matters relating 

to transcripts, copies, and how the 

hearing is conducted would be left for 

the PHA to determine. 

III. Findings and Certifications 

Executive Order 12866, Regulatory 

Planning and Review 

The Office of Management and Budget 

(OMB) reviewed this rule under 

Executive Order 12866 (entitled, 

‘‘Regulatory Planning and Review’’). 

OMB determined that this rule is a 

‘‘significant regulatory action,’’ as 

defined in section 3(f) of the Order 

(although not an economically 

significant regulatory action under the 

Order). The docket file is available for 

public inspection between the hours of 

8 a.m. and 5 p.m. weekdays in the 

Regulations Division, Office of General 

Counsel, Department of Housing and 

Urban Development, 451 Seventh Street, 

SW., Room 10276, Washington, DC 

20410–0500. Due to security measures 

at the HUD Headquarters building, 

please schedule an appointment to 

review the docket file by calling the 

Regulations Division at (202) 708–3055 

(this is not a toll-free number). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. The proposed 

rule is exclusively concerned with 

PHAs that administer public housing 

programs under section 8 of the United 

States Housing Act of 1937. Specifically, 

the proposed rule would streamline 

administration of the public housing 

program by PHAs and give PHAs more 

flexibility in establishing policies that 

better meet local housing needs and 

priorities. Under the definition of 

‘‘small governmental jurisdiction’’ in 

section 601(5) of the RFA, the 

provisions of the RFA are applicable 

only to those few PHAs that are part of 

a political jurisdiction with a 

population of fewer than 50,000 

persons. The number of entities 

potentially affected by this rule is 

therefore not substantial. Accordingly, 

the undersigned certifies that this rule 

will not have a significant economic 

impact on a substantial number of small 

entities. 

Notwithstanding HUD’s 

determination that this rule will not 

have a significant economic effect on a 

substantial number of small entities, 

HUD specifically invites comments 

regarding less burdensome alternatives 

to this rule that will meet HUD’s 

objectives as described in this preamble. 

Environmental Impact 

A Finding of No Significant Impact 

with respect to the environment has 

been made in accordance with HUD 

regulations at 24 CFR part 50, that 

implement section 102(2)(C) of the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4332(2)(C)). The 

Finding of No Significant Impact is 

available for public inspection between 

the hours of 8 a.m. and 5 p.m. weekdays 

in the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

Seventh Street, SW., Room 10276, 

Washington, DC 20410–0500. Due to 

security measures at the HUD 

Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at (202) 708–

3055 (this is not a toll-free number). 

Paperwork Reduction Act 

The information collection 

requirements described in this rule in 

24 CFR parts 903, 941, and 945 have 

been approved by OMB under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520) and assigned OMB 

control numbers 2577–0226, 2577–0157, 

2577–0192, and 2577–0157, 

respectively. In accordance with the 

Paperwork Reduction Act, HUD may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information, unless the collection 

displays a currently valid OMB control 

number. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits, to the extent 

practicable and permitted by law, an 

agency from promulgating a regulation 

that has federalism implications and 

either imposes substantial direct 

compliance costs on state and local 

governments and is not required by 

statute, or preempts state law, unless the 

relevant requirements of section 6 of the 

Executive Order are met. This rule does 

not have federalism implications and 

does not impose substantial direct 

compliance costs on state and local 

governments or preempt state law 

within the meaning of the Executive 

Order. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531–

1538) (UMRA) establishes requirements 

for federal agencies to assess the effects 

of their regulatory actions on state, 

local, and tribal governments, and on 

the private sector. This proposed rule 

would not impose any federal mandate 

on any state, local, or tribal government, 


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Federal Register / Vol. 73, No. 151 / Tuesday, August 5, 2008 / Proposed Rules 45371 

or on the private sector, within the 

meaning of the UMRA. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance number applicable to the 

program affected by this rule is 14.871. 

List of Subjects 

24 CFR Part 903 

Administrative practice and 

procedure, Public housing, Reporting 

and recordkeeping requirements. 

24 CFR Part 941 

Grant programs—housing and 

community development, Loan 

programs—housing and community 

development, Public housing 

24 CFR Part 945 

Aged, Grant programs—housing and 

community development, Individuals 

with disabilities, Public housing, 

Reporting and recordkeeping 

requirements. 

24 CFR Part 966 

Grant programs—housing and 

community development, Public 

housing, Reporting and recordkeeping 

requirements. 

Accordingly, for the reasons described 

in the preamble, HUD proposes to 

amend 24 CFR parts 903, 941, 945, and 

966 as follows: 

PART 903—PUBLIC HOUSING 

AGENCY PLANS 

1. The authority citation for part 903 

continues to read as follows: 

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

2. Revise the heading of subpart A to 

read as follows: 

Subpart A—Deconcentration of 

Poverty 

3. Amend § 903.2 by revising 

paragraph (c), and removing paragraphs 

(d)(1), (d)(2), (d)(3), and (e) to read as 

follows: 

§ 903.2 With respect to admissions, what 

must a PHA do to deconcentrate poverty in 

its developments and comply with fair 

housing requirements? 

* * * * * 

(c) Deconcentration of poverty and 

income mixing. (1) A PHA’s 

deconcentration policy may include, but 

is not limited to, providing for one or 

more of the following actions: 

(i) Providing incentives designed to 

encourage eligible families with higher 

incomes to occupy dwelling units in 

developments predominantly occupied 

by eligible families having lower 

incomes, and provide for occupancy of 

eligible families having lower incomes 

in developments predominantly 

occupied by eligible families having 

higher incomes. 

(ii) Skipping a family on the waiting 

list to reach another family in an effort 

to further the goals of the PHA’s 

deconcentration policy. 

(iii) Providing such other strategies as 

permitted by statute and determined by 

the PHA. 

(2) A family has the sole discretion 

whether to accept an offer of a unit 

made under a PHA’s deconcentration 

policy. The PHA may not take any 

adverse action toward any eligible 

family for choosing not to accept an 

offer of a unit under the PHA’s 

deconcentration policy. 

* * * * * 

4. Amend § 903.4 by revising 

paragraph (a), removing paragraph (c), 

redesignating existing paragraph (b) as 

paragraph (c), and adding a new 

paragraph (b), to read as follows: 

§ 903.4 What are the public housing 

agency plans? 

(a) 5-Year Plan. Not less than once 

every 5 fiscal years, each public housing 

agency shall submit to HUD a plan that 

includes, with respect to the 5 fiscal 

years immediately following the date on 

which the plan is submitted: 

(1) The PHA’s mission for serving the 

needs of low-income, very low-income, 

and extremely low-income families in 

the PHA’s jurisdiction; and 

(2) The PHA’s goals and objectives 

that enable the PHA to serve the needs 

of the families identified in the PHA’s 

Annual Plan. 

(b) Annual Plan. (1) In general. Each 

PHA shall submit to HUD an annual 

PHA plan under this subsection for each 

fiscal year for which the PHA receives 

assistance under: 

(i) Section 8 tenant-based assistance 

(under section 8(o) of the U.S. Housing 

Act of 1937, 42 U.S.C. 1437f(o)) (tenantbased assistance); or 

(ii) Amounts from the public housing 

operating fund or capital fund (under 

section 9 of the U.S. Housing Act of 

1937 (42 U.S.C. 1437g) (public 

housing)). 

(2) Updates. For each fiscal year after 

the initial submission of an annual plan, 

a PHA may comply with requirements 

for submission of a plan under this 

subsection by submitting an update of 

the plan for the fiscal year. 

* * * * * 

5. Revise § 903.5 to read as follows: 

§ 903.5 When must a PHA submit the 

plans to HUD? 

(a) 5-Year Plan. For all PHAs, after 

submission of their first 5-Year Plan, all 

subsequent 5-Year Plans must be 

submitted once every 5 PHA fiscal 

years, no later than 75 days before the 

commencement of the PHA’s fiscal year. 

PHAs must explain any substantial 

deviation from their 5-Year Plans in 

their Annual Plans. (Substantial 

deviation is determined by the PHA in 

accordance with criteria provided by the 

PHA in its Annual Plan, in accordance 

with § 903.7(r).) 

(b) Annual Plans. For all PHAs, after 

submission of the first annual plan, all 

subsequent annual plans will be due no 

later than 75 days before the 

commencement of the PHA’s fiscal year. 

6. Add § 903.6(a)(3) to read as follows: 

§ 903.6 What information must a PHA 

provide in the 5-Year Plan? 

(a) * * * 

(3) The goals, objectives, policies, or 

programs that will enable the PHA to 

serve the needs of child and adult 

victims of domestic violence, dating 

violence, sexual assault, or stalking. 

* * * * * 

7. Amend § 903.7 as follows: 

a. Revise the introductory text; 

b. Revise paragraphs (a), (b), (c), (e)(1), 

(f), (h), (i)(1), (j)(2), and (j)(3); 

c. Remove paragraph (j)(5); 

d. Revise paragraphs (k)(1)(iii) and 

(k)(1)(iv) and add paragraph (k)(1)(v); 

e. Redesignate paragraphs (m) through 

(r) as (n) through (s), respectively; 

f. Add a new paragraph (m); 

g. Remove newly redesignated 

paragraph (n)(3) and redesignate 

paragraph (n)(4) as paragraph (n)(3); 

h. Revise newly redesignated 

paragraph (p); 

i. Remove newly redesignated 

paragraph (s)(1), and redesignate 

paragraphs (s)(2) and (s)(3) as 

paragraphs (s)(1) and (s)(2), respectively. 

The revisions and additions read as 

follows: 

§ 903.7 What information must a PHA 

provide in the Annual Plan? 

The PHA’s Annual Plan must be 

consistent with the goals and objectives 

of the PHA’s 5-Year Plan. 

(a) A statement of housing needs. This 

statement must address the housing 

needs of the extremely low-income, 

low-income, and very low-income 

families that reside in the jurisdiction 

served by the PHA, and other families 

that are on the public housing and 

Section 8 tenant-based assistance 

waiting lists, including the housing 

needs of elderly families, disabled 

families, households of various races 

and ethnic groups residing in the 

jurisdiction or on the waiting list, and 

the means by which the PHA intends, 

to the maximum extent possible, to 

address those needs. 


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(b) A statement of the PHA’s 

deconcentration and other policies that 

govern eligibility, selection, and 

admissions. This statement must 

describe the PHA’s policies that govern 

resident or tenant eligibility, selection, 

and admission. This statement also 

must describe any PHA admission 

preferences, and any occupancy policies 

that pertain to public housing units and 

housing units assisted under section 

8(o) of the 1937 Act (42 U.S.C. 1437f(o)), 

as well as any unit assignment policies 

for public housing. This statement must 

include the following information: 

(1) Deconcentration policy. The PHA’s 

deconcentration policy applicable to 

public housing, as described in 

§ 903.2(a). 

(2) Waiting list procedures. The PHA’s 

procedures for maintaining waiting lists 

for admission to the PHA’s public 

housing developments may include 

(notwithstanding any other law, 

regulation, handbook, or notice to the 

contrary) a system of site-based waiting 

lists as authorized by section 6(r) of the 

1937 Act (42 U.S.C. 1437d) that is 

consistent with all applicable civil 

rights and fair housing laws and 

regulations. 

(c) A statement of financial resources. 

A statement of financial resources 

available to the PHA and planned uses 

for those resources. 

* * * * * 

(e) A statement of the PHA’s rules, 

standards, and policies. (1) A statement 

of the PHA’s rules, standards, and 

policies governing maintenance and 

management of housing owned, 

assisted, or operated by the PHA. 

* * * * * 

(f) Grievance procedures. A statement 

of the PHA’s grievance procedures. 

* * * * * 

(h) A statement of any demolition 

and/or disposition. With respect to 

public housing only, a description of 

any public housing development, or 

portion of a public housing 

development, owned by the PHA for 

which the PHA has applied or will 

apply for demolition and/or disposition 

approval under section 18 of the 1937 

Act (42 U.S.C. 1437p), and the timetable 

for demolition and/or disposition. Note: 

The application and approval process 

for demolition and/or disposition is a 

separate process. Approval of the PHA 

Plan does not constitute approval of 

these activities. 

(i) A statement of the designated 

public housing developments. (1) A 

statement of the public housing 

developments (or portions thereof) that 

the PHA has designated or will apply 

for designation as housing for only 

elderly families, or only disabled 

families, or elderly and disabled 

families, as provided by section 7 of the 

1937 Act (42 U.S.C. 1437e). Note: The 

designated housing application and 

approval process is a separate process. 

* * * * * 

(j) * * * 

(2) The statement also must include 

an analysis of the developments or 

buildings required to be converted 

under section 33 of the 1937 Act. 

(3) For both voluntary and required 

conversions, the statement must include 

the amount of assistance received to be 

used for rental assistance or other 

housing assistance in connection with 

such conversion. 

* * * * * 

(k) * * * 

(1) * * * 

(iii) An approved HOPE I program (42 

U.S.C. 1437aaa); 

(iv) Any homeownership programs for 

which the PHA has applied to 

administer or will apply to administer 

under section 5(h), the HOPE I program, 

or section 32 of the 1937 Act (42 U.S.C. 

1437z–4); or 

(v) Any homeownership programs 

administered by the PHA under section 

9(d)(1)(J) of the 1937 Act (42 U.S.C. 

1437g). 

* * * * * 

(m)(1) A description of any activities, 

services, or programs provided or 

offered by a PHA, either directly or in 

partnership with other service 

providers, to child or adult victims of 

violence, dating violence, sexual 

assault, or stalking; 

(2) A description of any activities, 

services, or programs provided or 

offered by a PHA that helps child and 

adult victims of domestic violence, 

dating violence, sexual assault, or 

stalking; and 

(3) A description of any activities, 

services, or programs provided or 

offered by a PHA to prevent domestic 

violence, dating violence, sexual 

assault, or stalking, or to enhance victim 

safety in assisted families. 

* * * * * 

(p) Civil rights certification and fair 

housing. All admission, occupancy, and 

other policies for public housing and 

Section 8 tenant-based housing 

programs must comply with Fair 

Housing Act requirements and with 

regulations to affirmatively further fair 

housing. 

(1) General fair housing requirements. 

(i) Nondiscrimination. A PHA must 

carry out its PHA plan in conformity 

with the nondiscrimination 

requirements in federal civil rights laws, 

including Title VI of the Civil Rights Act 

of 1964 and the Fair Housing Act. 

(ii) Affirmatively furthering fair 

housing. PHA policies that govern 

eligibility, selection, and admissions 

under its PHA plan should be designed 

to reduce racial and national origin 

concentrations. Any affirmative steps or 

incentives a PHA plans to take must be 

stated in the admissions policy. HUD 

regulations at 24 CFR 1.4(b)(6)(ii) 

provide that PHAs should take 

affirmative steps to overcome the effects 

of conditions that resulted in limiting 

participation of persons due to any 

prohibited basis. 

(2) Site-based waiting lists. (i) The 

PHA plan shall address the reasonable 

measures the PHA has taken and will 

take to ensure that adoption of sitebased waiting lists is consistent with 

affirmatively furthering fair housing 

requirements. Measures include 

marketing activities to attract applicants 

regardless of race or ethnicity and 

providing full disclosure to each 

applicant of all available developments 

and programs, including amenities and 

accessibility, within the PHA’s 

jurisdiction. 

(ii) Adoption of a site-based waiting 

list may not violate any court order, 

settlement agreement, conciliation 

agreement, voluntary compliance 

agreement, or any other agreement with 

HUD. 

(3) Civil rights certification. (i) The 

PHA must certify, as part of both its 

annual and 5-year plans, that it will 

carry out its plan in conformity with 

Title VI of the Civil Rights Act of 1964 

(42 U.S.C. 2000d), the Fair Housing Act 

(42 U.S.C. 3601–19), section 504 of the 

Rehabilitation Act of 1973 (29 U.S.C. 

794), and Title II of the Americans with 

Disabilities Act of 1990 (42 U.S.C. 12101 

et seq.). The PHA also must certify that 

it will affirmatively further fair housing. 

(ii) A PHA shall be considered in 

compliance with the certification 

requirement to affirmatively further fair 

housing if the PHA fulfills the 

requirements of § 903.7(p)(1), examines 

its programs or proposed programs to 

identify any impediments to fair 

housing choice within those programs, 

addresses those impediments in a 

reasonable fashion in view of the 

resources available, and works with 

local jurisdictions to implement any of 

the jurisdiction’s initiatives to 

affirmatively further fair housing in 

conformity with § 903.15. A PHA shall 

maintain records reflecting these 

analyses and actions. 

* * * * * 

§§ 903.11 and 903.12 [Removed] 

8. Remove §§ 903.11 and 903.12. 

9. Amend § 903.13 by revising 

paragraphs (a) and (b) to read as follows: 


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Federal Register / Vol. 73, No. 151 / Tuesday, August 5, 2008 / Proposed Rules 45373 

§ 903.13 What is a Resident Advisory 

Board and what is its role in development 

of the Annual Plan? 

(a)(1) A Resident Advisory Board 

refers to a board or boards, as provided 

in paragraph (b) of this section, whose 

membership consists of individuals who 

adequately reflect and represent the 

residents assisted by the PHA. 

(2) The role of the Resident Advisory 

Board (or Resident Advisory Boards) is 

to assist and make recommendations 

regarding the development of the PHA 

plan, and any significant amendment or 

modification to the PHA plan. 

(b) Each PHA must establish one or 

more Resident Advisory Boards. 

* * * * * 

§ 903.23 [Amended] 

10. Amend § 903.23 by removing 

paragraph (c)(1), redesignating existing 

paragraphs (c)(2), (c)(3), and (c)(4) as 

paragraphs (c)(1), (c)(2), and (c)(3), 

respectively, removing paragraph (d), 

and redesignating existing paragraph (e) 

as paragraph (d). 

* * * * * 

PART 941—PUBLIC HOUSING 

DEVELOPMENT 

11. The authority citation for part 941 

continues to read as follows: 

Authority: 42 U.S.C. 1437b, 1437c, 1437g, 

3535(d). 

12. Revise § 941.606(n)(1)(ii)(B) to 

read as follows: 

§ 941.606 Proposal. 

* * * * * 

(n) * * * 

(1) * * * 

(ii) * * * 

(B) If the partner and/or owner entity 

(or any other entity with an identity of 

interest with such parties) wants to 

serve as the general contractor for the 

project or development, it may award 

itself the construction contract if either: 

(1) The identity of interest general 

contractor’s bid is the lowest bid 

submitted in response to a public 

request for bids; or 

(2) The PHA submits a written 

justification and provides an 

independent third-party cost estimate 

that demonstrates that the identity of 

interest general contractor’s costs are 

less than or equal to the independent 

third-party cost estimate. 

* * * * * 

PART 945—[REMOVED] 

13. Under the authority of 42 U.S.C. 

1473e and 3535(d), part 945 is removed. 

PART 966—PUBLIC HOUSING LEASE 

AND GRIEVANCE PROCEDURES 

14. The authority citation for part 966 

continues to read as follows: 

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

15. Amend § 966.52 by revising 

paragraph (a) to read as follows: 

§ 966.52 Requirements. 

(a) Each PHA shall adopt a grievance 

procedure affording each tenant an 

opportunity for a hearing on a 

grievance, as defined in § 966.53 in 

accordance with the requirements, 

standards, and criteria contained in this 

subpart. A PHA may establish an 

expedited grievance procedure as 

defined in § 966.53. 

* * * * * 

16. Amend § 966.53 by revising 

paragraph (b), removing paragraph (e), 

redesignating paragraph (d) as 

paragraph (e) and revising it, adding 

new paragraph (d) and removing 

paragraph (g) to read as follows: 

§ 966.53 Definitions. 

* * * * * 

(b) Complainant shall mean any 

tenant whose grievance is presented to 

the PHA or at the project management 

office. 

* * * * * 

(d) Expedited grievance means a 

procedure established by the PHA for 

any grievance concerning a termination 

of tenancy or eviction that involves: 

(1) Any criminal activity that 

threatens the health, safety, or right to 

peaceful enjoyment of the PHA’s public 

housing premises by other residents or 

employees of the PHA; or 

(2) Any drug-related or violent 

criminal activity on or off such 

premises. 

(e) Hearing officer shall mean an 

impartial person or persons designated 

by the PHA, other than the person who 

made or approved the decision under 

review, or a subordinate of that person. 

* * * * * 

17. Remove § 966.54 and § 966.55. 

18. Amend § 966.56 by revising 

paragraph (a), removing paragraphs 

(b)(5) and (c), redesignating paragraph 

(d) as paragraph (c) and revising it, 

redesignating existing paragraph (e) as 

paragraph (d), removing paragraphs (f) 

and (g), and redesignating existing 

paragraph (h) as paragraph (e) to read as 

follows: 

§ 966.56 Procedures governing the 

hearing. 

(a) The hearing shall be scheduled 

promptly for a time and place 

reasonably convenient to both the 

complainant and the PHA and held 

before a hearing officer. A written 

notification specifying the time, place, 

and the procedures governing the 

hearing shall be delivered to the 

complainant and the appropriate 

official. 

* * * * * 

(c) If the complainant or the PHA fails 

to appear at a scheduled hearing, the 

hearing officer may make a 

determination to postpone the hearing 

for not to exceed 5 business days or may 

make a determination that the party has 

waived the party’s right to a hearing. 

Both the complainant and the PHA shall 

be notified of the determination by the 

hearing officer. A determination that the 

complainant has waived the 

complainant’s right to a hearing shall 

not constitute a waiver of any right the 

complainant may have to contest the 

PHA’s disposition of the grievance in an 

appropriate judicial proceeding. 

* * * * * 

19. Revise § 966.57 to read as follows: 

§ 966.57 Decision of the hearing officer. 

(a) The hearing officer shall prepare a 

written decision, including the reasons 

for the PHA’s decision, within a 

reasonable time after the hearing. A 

copy of the decision shall be sent to the 

complainant and the PHA. The PHA 

shall retain a copy of the decision in the 

tenant’s folder. 

(b) The decision of the hearing officer 

shall be binding on the PHA, unless the 

PHA Board of Commissioners 

determines that: 

(1) The grievance does not concern 

PHA action or failure to act in 

accordance with or involving the 

complainant’s lease or PHA regulations, 

which adversely affects the 

complainant’s rights, duties, welfare, or 

status. 

(2) The decision of the hearing officer 

is contrary to applicable federal, state, 

or local law, HUD regulations, or 

requirements of the ACC between HUD 

and the PHA. 

(c) A decision by the hearing officer 

or Board of Commissioners in favor of 

the PHA, or which denies the relief 

requested by the complainant in whole 

or in part, shall not constitute a waiver 

of, nor affect in any manner whatsoever, 

any rights the complainant may have to 

a trial de novo or judicial review in any 

judicial proceedings, which may 

thereafter be brought in the matter. 

Dated: July 7, 2008. 

Paula O. Blunt, 

General Deputy Assistant, Secretary for Public 

and Indian Housing. 

[FR Doc. E8–17839 Filed 8–4–08; 8:45 am] 

BILLING CODE 4210–67–P 


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