1860 Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Proposed Rules 

improvements will meet HHS, as well as 

all other Federal, state and local 

requirements for fire safety equipment, 

if applicable. 

Dated: December 16, 2014. 

Biniam Gebre, 

Acting Assistant Secretary for Housing— 

Federal Housing Commissioner. 

[FR Doc. 2015–00373 Filed 1–13–15; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Parts 880, 881, 883, 884, 886, 

and 891 

[Docket No. FR–5654–P–01] 

RIN 2502–AJ22 

Streamlining Management and 

Occupancy Reviews for Section 8 

Housing Assistance Programs and 

Amending Vacancy Payments for 

Section 8 and Section 162 Housing 

Assistance Programs 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

amend existing project-based Section 8 

regulations related to Management and 

Occupancy Reviews (MORs) and 

Vacancy Payments for the following 

programs: the Section 8 Housing 

Assistance Payments (HAP) Programs 

for New Construction, Substantial 

Rehabilitation, State Housing Agencies, 

New Construction financed under 

Section 515 of the Housing Act of 1949, 

the Loan Management Set-Aside 

Program, the HAP Program for the 

Disposition of HUD-Owned Projects, 

and the Section 202/8 Program. This 

rule would also amend the existing 

Section 162 regulations related to 

Vacancy Payments for the Section 202 

Projects. Under this rule, MORs would 

be conducted in accordance with a 

schedule published in the Federal 

Register and subject to public comment. 

The first such schedule is being 

published for comment concurrently 

with this proposed rule, and can be 

found elsewhere in today’s Federal 

Register. HUD is proposing this change 

in order to reduce the frequency of 

MORs, thereby minimizing 

interruptions in property operations 

created by onsite reviews, preserving 

staff time, and reducing costs. In 

addition, this proposed rule would 

reduce the vacancy payments made to 

the owner by HUD for a vacant assisted 

unit. 

DATES: Comment Due Date. March 16, 

2015. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this rule to the Regulations Division, 

Office of General Counsel, 451 7th 

Street SW., Room 10276, Department of 

Housing and Urban Development, 

Washington, DC 20410–0500. 

Communications must refer to the above 

docket number and title. There are two 

methods for submitting public 

comments. 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 

7th 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 

www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit comments, ensures timely 

receipt by HUD, and enables HUD to 

make them immediately available to the 

public. Comments submitted 

electronically through the 

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. Eastern Time 

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 

through TTY by calling the Federal 

Relay Service at 800–877–8339. Copies 

of all comments submitted are available 

for inspection and downloading at 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: For 

information about management and 

occupancy reviews contact Lauryn 

Alleva, Program Administration Office, 

Office of Housing, Department of 

Housing and Urban Development, 451 

7th Street SW., Washington, DC 20410– 

7000; telephone number 202–708–3730 

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

information about vacancy claims, 

contact Yvette Viviani, Housing 

Assistance Policy Division, Office of 

Housing Assistance and Grant 

Administration, Office of Housing, 

Department of Housing and Urban 

Development, 451 7th Street SW., 

Washington, DC 20410–7000; telephone 

number 202–708–3000 (this is not a tollfree number). Hearing- and speechimpaired persons may access these 

numbers through TTY by calling the 

Federal Relay Service at 800–877–8339 

(this is a toll-free number). 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 8 of the United States 

Housing Act of 1937 (42 U.S.C. 1437f) 

authorizes one of HUD’s primary 

programs for providing rental housing 

assistance (Section 8). The purpose of 

Section 8 is to provide low-income 

families with decent, safe, and sanitary 

rental housing. The Section 8 program 

includes a project-based program and a 

tenant-based housing choice program. 

Under the project-based program, HUD 

may enter into an annual contributions 

contract (ACC) with a public housing 

agency (PHA) through which HUD 

commits to provide the agency with 

funds to make housing assistance 

payments to a project owner. The PHA 

or state agency, acting as a contract 

administrator, then enters into a 

Housing Assistance Payments (HAP) 

contract with the owner. Under the HAP 

contract, the contract administrator 

agrees to subsidize certain units for a 

specified period of time for eligible lowincome families. In certain 

circumstances HUD may act as the 

contract administrator, whereby HUD 

will directly enter into a HAP contract 

with an owner. 

There are seven project-based Section 

8 HAP programs administered by the 

Office of Multifamily Housing Programs: 

The HAP program for New Construction 

(24 CFR part 880) and the HAP program 

for Substantial Rehabilitation (24 CFR 

part 881), which provide rental 

assistance in connection with the 

development of newly constructed or 

substantially rehabilitated privately 

owned rental housing; the HAP Program 

for State Housing Agencies (24 CFR part 

883); the HAP program for New 


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Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Proposed Rules 1861 

Construction financed under Section 

515 of the Housing Act of 1949 (24 CFR 

part 884), which applies to U.S. 

Department of Agriculture rural rental 

housing projects; the Loan Management 

Set Aside Program (24 CFR part 886, 

subpart A), which provides rental 

subsidies to HUD-insured or HUD-held 

multifamily properties experiencing 

immediate or potential financial 

difficulties; the Housing Assistance 

Program for the Disposition of HUDOwned Projects (24 CFR part 886, 

subpart C), which provides Section 8 

assistance in connection with the sale of 

HUD-owned multifamily rental housing 

projects and the foreclosure of HUDheld mortgages on rental housing 

projects; and the Section 202/8 Program 

(24 CFR part 891, subpart E), which 

provides assistance for housing projects 

serving elderly or families and 

individuals with disabilities. 

Section 162 Project Assistance 

Contracts (PACs) were authorized under 

the now repealed Section 202(h) of the 

Housing Act of 1959 (12 U.S.C. 1701q). 

Although the program was repealed, 

Section 162 PACs are still renewed 

under the Section 162 program. Section 

162 renewals provide funding for 

projects under the Section 202 Direct 

Loan Program for the Elderly and 

targeted persons with disabilities. A 

PAC is similar to the ACC in the Section 

8 projects and the program operates 

under the same terms as the Section 8 

program. 

A. Management and Occupancy 

Reviews 

Contract administrators in the Section 

8 above-listed programs are responsible 

for assessing the management and 

oversight of housing projects and for 

ensuring that owners comply with the 

requirements of the HAP contract. In 

order to assess an owner’s compliance 

with the terms and conditions of its 

HAP contract, contract administrators 

conduct management and occupancy 

reviews (MORs). 

Under existing regulations, the 

frequency of MORs across the seven 

project-based Section 8 programs 

administered by the Office of 

Multifamily Housing is inconsistent. 

Contract administrators in the HAP New 

Construction Program, HAP Substantial 

Rehabilitation Program, and HAP State 

Housing Agencies Program are required 

to review a project’s operations ‘‘at least 

annually’’ to determine whether the 

owner is in compliance with the HAP 

contract. The regulations for the HAP 

Program for Section 515 projects, the 

Loan Management Set-Aside Program, 

and the Housing Assistance Program for 

the Disposition of HUD-Owned Projects 

are less prescriptive and only require 

that HUD review project operations ‘‘at 

such intervals as it deems necessary’’ to 

ensure an owner is in compliance with 

its HAP contract. Lastly, the Section 

202/8 program regulations provide no 

reference to the frequency of MORs. 

Completion of MORs can require 

Contract Administrators to visit the site 

and can cause interruption in project 

operations. The Contract Administrator 

spends approximately 8 hours of staff 

time and additional resources to review 

every project. HUD has found that in 

recent years projects have been rated 

‘‘Above Average’’ or ‘‘Superior’’ 35 

percent of the time, ‘‘Satisfactory’’ 57 

percent of the time, and ‘‘Below 

Average’’ or ‘‘Unsatisfactory’’ eight 

percent of the time. A full or limited 

review of all projects, including those 

that consistently receive high marks, 

puts a strain on HUD and project 

resources. 

B. Vacancy Payments 

Under section 8(c)(4) of the United 

States Housing Act of 1937, a HAP 

contract providing project-based rental 

assistance may contain payments for 

vacant units. Similarly, a PAC may 

contain payments for vacant units. A 

contract administrator may continue to 

provide assistance under the contract 

for a dwelling unit that remains vacant 

after the effective date of the contract or 

a dwelling unit that becomes vacant 

only if the vacancy was not the fault of 

the owner of the dwelling unit, and the 

agency and the owner take every 

reasonable action to minimize the 

likelihood and extent of any such 

vacancy. 

Under current regulations, an owner 

is entitled to vacancy payments in the 

amount of 80 percent of the contract 

rent for a period of no more than 60 

days after initial rent up or after an 

eligible family vacates the unit. These 

vacancy payments are made as part of 

an owner’s monthly HAP or PAC 

payment. If the vacancy persists past the 

60 days, an owner may also receive 

additional vacancy payments in an 

amount equal to the principal and 

interest payments required to amortize 

that portion of the debt service 

attributable to the vacant unit for up to 

12 additional months (debt-service 

vacancy payments). Debt-service 

vacancy payments are made semiannually by the contract administer 

upon request by the owner. In either 

case, an owner is not entitled to vacancy 

payments for vacant units to the extent 

he can collect for the vacancy from 

other sources (such as security deposits 

and governmental payments under other 

programs). Additionally, an owner is 

only eligible for payments if during the 

vacancy period for which payment is 

claimed an owner continues to market 

the unit in accordance with HUD 

requirements, takes all feasible actions 

to fill the vacancy, does not reject an 

eligible applicant except for good cause 

acceptable to the contract administrator; 

and maintains the unit in decent, safe, 

and sanitary conditions. 

HUD has observed that the 60-day 

period for vacancy payments may be too 

long; resulting in contract units staying 

vacant for longer periods and extending 

the time it takes for eligible families to 

secure housing. 

II. This Proposed Rule—Overview 

A. Management and Occupancy 

Reviews 

HUD is proposing to revise the 

regulations that govern MORs for 

Section 8 HAP projects to provide 

consistency across programs and allow 

HUD the flexibility to set a schedule 

that is more in-line with the needs of 

the programs. Because many of the 

properties that receive assistance under 

a Section 8 HAP program have 

consistently received high marks on 

their MORs, reducing the frequency of 

MORs for these properties would result 

in fewer interruptions in project 

operations and would allow HUD to 

focus its staff and resources on areas 

that require greater attention. HUD 

proposes to amend the project-based 

Section 8 HAP program regulations to 

require that MORs be conducted in 

accordance with a schedule set out by 

the Secretary as published in the 

Federal Register, following notice and 

comment. HUD’s proposal would adopt 

this new language in 24 CFR 880.612, 

884.224, 886.130, and 886.355, and 

would re-title these sections 

‘‘Management and occupancy reviews.’’ 

Additionally, this proposal would add a 

new § 891.582, also titled ‘‘Management 

and occupancy reviews.’’ Because the 

cross-reference in 24 CFR 881.601 and 

24 CFR 883.701 includes 24 CFR 

880.612, this new MOR requirement 

would also apply to the HAP 

Substantial Rehabilitation Program and 

the HAP Program for State Housing 

Agencies, respectively, without changes 

being made to the regulations that are 

specific for those programs. 

The first proposed schedule for MORs 

is published elsewhere in today’s 

Federal Register and HUD invites 

public comment on that schedule. As 

provided in that notice, although HUD 

is proposing a schedule for MORs that 

is based on both a project’s annual MOR 

rating and a HUD risk-based 

management model, nothing in this 


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1862 Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Proposed Rules 

proposed rule nor the accompanying 

notice restricts HUD or the Contract 

Administrator from conducting 

additional MORs outside of this 

schedule pursuant to existing and future 

administrative guidelines. 

B. Vacancy Payments 

HUD is also proposing to revise the 

regulations that permit owners of 

Section 8 HAP projects and Section 162 

PAC projects to collect vacancy 

payments in the amount of 80 percent 

of the contract rent for the first 60 days 

of a vacancy. HUD has observed that 

since vacancy payments are only 

available once units are ready to be 

rented, owners typically turn around a 

unit in 30 days rather than collect a 

reduced vacancy payment. HUD also 

wants to incentivize owners, when 

appropriate, to see that vacant units are 

rented more expeditiously to eligible 

individuals and families. The proposed 

rule would provide that owners could 

receive vacancy payments in the 

amount of 80 percent of the contract 

rent for the first 30 days of a vacancy in 

place of the current 60 days of a 

vacancy. This proposed rule would not 

preempt existing HAP contracts and 

renewal contracts under the Multifamily 

Assisted Housing Reform and 

Affordability Act of 1997 (42 U.S.C. 

1437f note) (MAHRA) that include a 60 

day period for vacancy payments; 

however, all future renewal contracts 

under MAHRA will reflect this new 

requirement. Additionally, the proposed 

rule would not preempt existing PAC 

and renewals; however, all future 

renewals would reflect this requirement. 

Owners may still apply for additional 

debt-service vacancy payments for up to 

12 months after receiving the first 30 

days of vacancy payments at 80 percent 

of the contract rent. 

The proposed change would amend 

the vacancy payment references to the 

first 60 days in all seven project-based 

Section 8 HAP programs administered 

by the Office of Multifamily Housing 

and Section 162 program regulations. 

Specifically, HUD proposes to amend 

the ‘‘vacancy payment’’ definition to 

remove the reference to the length of the 

vacancy period in §§ 880.201, 881.201, 

883.302, 891.520, and 891.655. HUD 

also proposes to remove the reference to 

‘‘the first 60 days’’ and replace it with 

‘‘the first 30 days of a vacancy’’ and 

remove any cross-references to the 60 

day time period by amending the 

provisions describing the length of 

vacancy payment periods in §§ 880.501, 

880.611 881.501, 883.602, 884.106, 

886.109, 886.309, 891.560, 891.650, 

891.705, and 891.790. This proposed 

rule would also amend the provision 

regarding the length of the vacancy 

payment period in § 886.309(d) so that 

it is consistent with all the other 

vacancy length payment provisions, and 

amends § 886.109 to distinguish 

between vacancies during rent-up, 

vacancies after rent-up and debt-service 

vacancy payments. Additionally, HUD 

proposes to change headings in 

§§ 880.611, 886.106, 886.309, 

891.650(d), and 891.790 for consistency 

with the other sections. 

III. Findings and Certifications 

Regulatory Review—Executive Orders 

12866 and 13563 

Under Executive Order 12866 

(Regulatory Planning and Review), a 

determination must be made whether a 

regulatory action is significant and, 

therefore, subject to review by the Office 

of Management and Budget (OMB) in 

accordance with the requirements of the 

order. Executive Order 13563 

(Improving Regulation and Regulatory 

Review) directs executive agencies to 

analyze regulations that are ‘‘outmoded, 

ineffective, insufficient, or excessively 

burdensome, and to modify, streamline, 

expand, or repeal them in accordance 

with what has been learned.’’ Executive 

Order 13563 also directs that where 

relevant, feasible, and consistent with 

regulatory objectives, and to the extent 

permitted by law, agencies are to 

identify and consider regulatory 

approaches that reduce burdens and 

maintain flexibility and freedom of 

choice for the public. 

This rule was determined to be a 

significant regulatory action under 

section 3(f) of Executive Order 12866. 

More importantly, for HUD program 

participants, this rule is part of HUD’s 

retrospective review carried out under 

Executive Order 13563, and designed to 

reduce burden on well-performing 

program participants. 

Need for Regulatory Action 

Executive Order 12866 emphasizes 

that ‘‘Federal agencies should 

promulgate only such regulations as are 

required by law, are necessary to 

interpret the law or are made necessary 

by compelling public need, such as 

material failures of private markets to 

protect or improve the health and safety 

of the public, the environment, or the 

well-being of the American people.’’ 

Because the schedule for MORs was 

established by regulation, HUD (1) can 

only reduce burden for those programs 

required to have annual MORs, and (2) 

bring consistency to the schedule for 

MORs for the other programs, through 

regulation. Moreover, HUD has 

determined that the current MORs 

schedule is inconsistent and, as 

currently codified, places a strain on 

HUD resources and on projects that 

consistently receive high marks on their 

MORs. As described in this preamble, 

HUD has recently determined that 

projects have been rated as ‘‘Above 

Average’’, ‘‘Superior’’, or ‘‘Satisfactory’’ 

92 percent of the time. This fact, and the 

costs placed on projects to prepare for 

a MOR and that may result from the 

interruption in normal operations 

caused by a MOR, makes reducing this 

burden an important topic for 

rulemaking. 

Similarly, HUD can only reduce the 

period of vacancy payments from 60 

days to 30 days for the purpose of 

turning units around more quickly for 

the next individual or family ready to 

occupy the unit by regulation. 

Additionally, while vacancy payments 

are only available once the unit is ready 

to be rented, this rule proposes to 

further reduce any incentive for owners 

not to rent the unit as quickly as 

possible. This is consistent with the 

need to ensure a constant supply of 

affordable housing. As a result, 

consistent with Executive Order 13563, 

this rulemaking is intended to modify, 

streamline, or repeal burdensome 

regulations. Thus, the placement of this 

proposed rule on HUD’s Retrospective 

Review Plan. See page 6 of HUD’s 

updated Retrospective Review Plan at 

http://portal.hud.gov/hudportal/

documents/huddoc?id=EO13563_

PLAN.PDF. 

Discussion of Costs and Benefits 

As discussed in this preamble, the 

proposed amendments to the MORs 

regulations would provide consistency 

to the scheduling of MORs and allow 

HUD to issue the schedule by 

publishing it in the Federal Register, 

subject to public comment. Because 

many of the properties that receive 

assistance under a Section 8 HAP 

contract have consistently received high 

marks on their MORs, reducing the 

frequency of a MOR would result in 

fewer interruptions in project 

operations. 

The purpose of a MOR is to verify 

compliance of the property with the 

terms of the HAP contract. Scheduling 

of the MOR begins with a letter sent to 

the owner generally 30 days, but at least 

2 weeks, in advance of the date the 

MOR is to be undertaken. The on-site 

review by HUD involves inspection of a 

sampling of units. The owner is 

responsible for providing notice to 

residents that their units may be chosen 

for inspection. The review also involves 

a determination of owner compliance 

with civil rights regulations, including 


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Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Proposed Rules 1863 

1See http://portal.hud.gov/hudportal/HUD?src=/

program_offices/cfo/reports/2013/main_toc. 

2See respectively page Y–2 at http://

portal.hud.gov/hudportal/documents/

huddoc?id=PROJBASEDRA.pdf and page Y–3 at 

http://portal.hud.gov/hudportal/documents/

huddoc?id=fy15cj_pbra.pdf. 

Title VI, Title VII, the Americans with 

Disabilities Act, and Section 504 of the 

Rehabilitation Act of 1973. Before the 

actual inspection by HUD, HUD will 

review property status by referring to 

the last inspection performed, and note 

any exigent health and safety concerns 

previously identified. HUD will also 

review complaints from residents, 

congressional inquiries and media 

reports, if any, to verify all concerns 

were responded to in a timely manner. 

Any contractual violations and imposed 

sanctions will also be reviewed. As this 

description of an MOR reveals, it is not 

an insignificant process, but for those 

properties that consistently receive high 

marks, HUD concluded that it can and 

should reduce, the frequency of MORs. 

In reaching this conclusion, HUD has 

also determined that the deficiencies 

found in MORs of properties that 

receive high marks do not offset the 

costs to the project in preparing for the 

MOR and in the disruption to normal 

property operations that inevitably 

accompany a MOR. 

With respect to vacancy payments, 

the proposed amendments to the 

vacancy payments regulations would 

make units available to eligible families 

earlier rather than later and further 

incentivize owners to rent the unit as 

quickly as possible. As the need for 

affordable housing remains constant, it 

is important that owner provide for 

occupancy of vacant units at the earliest 

date possible. As noted earlier in this 

preamble, vacancy payments are only 

available once units are ready to be 

rented, meaning that units are decent, 

safe, and in sanitary condition and are 

therefore available for occupancy. 

Vacancy payments are not paid for the 

days that a unit is being prepared for 

occupancy. HUD has observed that 

owners typically turn around a unit in 

30 days rather than collect a reduced 

vacancy payment. Therefore, the 

amendment largely reflects existing 

practice among owners. The number of 

units receiving vacancy payments is 

small relative to the total number of 

units utilized in project-based section 8. 

For those owners that may not move to 

rent units as quickly as HUD hopes or 

expects, the reduction of vacancy 

payments to a 30-day period should 

incentivize these owners to take actions 

that will result in available units being 

promptly rented. 

HUD first provided notification of its 

intention to reduce vacancy payments 

from 60 days to 30 days in its FY 2013 

Congressional Justifications.1 HUD was 

unable to move to implement the 

proposals in the FY 2013 Congressional 

Justification as early as HUD had 

intended. However, the proposal to 

reduce vacancy payments from 60 days 

to 30 days remained in HUD’s FY 2014 

Congressional Justification and HUD’s 

FY 2015 Congressional Justification 2

and, through this rule, HUD proposes to 

proceed to implement the reduced 

vacancy payment amendment. 

Due to data limitations, HUD is 

unable to determine the aggregate saving 

resulting from reducing the vacancy 

payment to 30 days. HUD estimates, 

however, that taxpayers as a whole will 

realize a benefit from the shorter 

payment period and from the incentive 

for owners created by the rule to take 

actions that will result in available units 

being more promptly rented. These 

changes would result in a savings to the 

government and represents a transfer 

from owners to the taxpayer. 

Information Collection Requirements 

The information collection 

requirements for this rule have been 

approved by the Office of Management 

and Budget (OMB) under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3520) and assigned OMB control 

numbers 2502–0178. In accordance with 

the Paperwork Reduction Act, an agency 

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. The overall 

burden of this collection would be 

reduced, however, by the reducing the 

frequency of MORs for properties that 

perform well. As discussed in HUD’s 

notice proposing the MOR schedule for 

comment published elsewhere in 

today’s Federal Register, HUD has 

determined that the net reduction of 

burden resulting from this rule 

represents a 73 percent savings from 

that currently codified. The public is 

referred to HUD’s notice for addition 

information regarding the determination 

of this savings. 

Environmental Impact 

A Finding of No Significant Impact 

(FONSI) with respect to the 

environment has been made in 

accordance with HUD regulations at 24 

CFR part 50, which implement section 

102(2)(C) of the National Environmental 

Policy Act of 1969 (42 U.S.C. 

4332(2)(C)). The FONSI is available for 

public inspection between 8 a.m. and 5 

p.m. weekdays in the Regulations 

Division, Office of General Counsel, 

Department of Housing and Urban 

Development, 451 7th Street SW., Room 

10276, Washington, DC 20410–0500. 

Due to security measures at the HUD 

Headquarters building, an advance 

appointment to review the docket file 

must be scheduled by calling the 

Regulations Division at 202–708–3055 

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

or speech-impaired individuals may 

access this number through TTY by 

calling the toll-free Federal Relay 

Service at 800–877–8339. 

Unfunded Mandates Reform Act 

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 does not 

impose a federal mandate on any state, 

local, or tribal government, or on the 

private sector, within the meaning of 

UMRA. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (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. It is HUD’s 

position that the burden reduction 

measures provided by this rule would 

not have a significant economic impact 

(beneficial or adverse) on a substantial 

number of small entities. 

As noted earlier in this preamble, this 

proposed rule is one of the regulatory 

actions being undertaken as part of 

HUD’s Retrospective Review Plan, 

established in accordance with 

Executive Order 13563. The primary 

focus of this rule is to reduce burden, 

but reduce burden for project owners 

that manage their projects well in 

accordance with HUD regulations. In 

establishing requirements as to how 

HUD subsidized housing is to be 

managed and administered, the 

requirements are not based on whether 

a project owner is a large entity or small 

entity. The focus of such requirements 

is on ensuring that the units that HUD 

subsidizes are decent, safe and sanitary 

and are made available to eligible 

tenants in a nondiscriminatory manner. 

These are not requirements that HUD 

can alter on the basis that a project 

owner is a small entity. However, this 

rule reduces burden for all project 

owners, large or small, that manage their 

properties well in accordance with HUD 


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1864 Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Proposed Rules 

regulations and score well under the 

MOR rating system. This proposed rule 

would provide that for these properties 

there is no need for an annual MOR, 

reduce burden for the project owner, 

whether such owner is a large or small 

entity. 

The proposal to reduce the period in 

which HUD will provide vacancy 

payments from 60 days to 30 days is 

also a proposal directed to project 

owners that manage their projects well. 

As noted earlier in this preamble, the 

majority of project owners rent vacant 

units (units ready for occupancy) within 

30 days, and therefore the reduction of 

the vacancy payment period from 60 to 

30 days will have minimal impact. As 

also noted earlier in this preamble, since 

2013, HUD has alerted owners of its 

intention to reduce the vacancy 

payment period from 60 to 30 days. For 

owners that may regularly or from timeto-time undertake little effort to rent a 

vacant unit within 30 days of 

availability for occupancy, the reduction 

is intended to serve as motivation to 

rent the vacant unit within 30 days. The 

rule would not remove the option in the 

existing regulations that allow owners to 

apply for additional debt-service 

vacancy payments for up to 12 months 

after receiving the first 30-days of 

vacancy payments at 80 percent of the 

contract rent. 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 effect on a substantial 

number of small entities, HUD 

specifically invites comments regarding 

any less burdensome alternatives to this 

rule that will meet HUD’s objectives as 

described in this preamble. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either (1) 

imposes substantial direct compliance 

costs on state and local governments 

and is not required by statute, or (2) 

preempts state law, unless the agency 

meets the consultation and funding 

requirements of section 6 of the 

Executive Order. This final rule does 

not have federalism implications and 

does not impose substantial direct 

compliance costs on state and local 

governments nor preempt state law 

within the meaning of the Executive 

Order. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance number applicable to the 

programs that would be affected by this 

rule is 14.195. 

List of Subjects 

24 CFR Part 880 

Annual contributions contract, audit, 

construction, contract administration, 

financing, housing assistance, housing 

assistance payments contract, 

management, new construction, owner, 

public housing agency, property 

standards, rent, section 8, tenants, and 

units. 

24 CFR Part 881 

Annual contributions contract, audit, 

contract administration, conversion, 

housing assistance, housing assistance 

payments contract, inspections, lowincome family, owner, public housing 

agency, rent, section 8, substantial 

rehabilitation, tenants, and units. 

24 CFR Part 883 

Annual contributions contract, audit, 

contract administration, housing finance 

agencies, housing assistance, housing 

assistance payments contract, lowincome family, owner, rent, section 8, 

substantial rehabilitation, state agencies, 

tenants, and units. 

24 CFR Part 884 

Annual contributions contract, audit, 

contract administration, conversion, 

housing assistance, housing assistance 

payments contract, income limit, 

inspections, low-income family, 

maintenance, new construction, owner, 

public housing agency, rent, rural 

housing, section 8, security deposits, 

tenants, units, and utility deposits. 

24 CFR Part 886 

Audit, contract administration, 

housing assistance, housing assistance 

payments contract, income, inspection, 

maintenance, marketing, mortgages, 

owner, rehabilitation, rent, section 8, 

security deposits, special allocations, 

tenants, units, and utility deposits. 

24 CFR Parts 891 

Capital advances, persons with 

disabilities, project rental assistance, 

rent, section 8, supportive housing for 

persons with disabilities, supportive 

services, tenants, and units. 

Accordingly, for the reasons described 

in the preamble, HUD proposes to 

amend 24 CFR part 880, 881, 883, 884, 

886, and 891 as follows: 

PART 880—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS PROGRAM 

FOR NEW CONSTRUCTION 

■ 1. The authority citation for 24 CFR 

part 880 continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), 12701, and 13611–13619. 

■ 2. In § 880.201, revise the definition of 

‘‘Vacancy payment’’ to read as follows: 

§ 880.201 Definitions. 

* * * * * 

Vacancy payment. The housing 

assistance payment made to the owner 

by the contract administrator for a 

vacant assisted unit if certain conditions 

are fulfilled. 

* * * * * 

■ 3. In § 880.501, revise paragraphs (c), 

(d)(2) and (3) to read as follows: 

§ 880.501 The contract. 

* * * * * 

(c) Housing Assistance Payments to 

Owners under the Contract. (1) The 

housing assistance payments made 

under the Contract are: 

(i) Payments to the owner to assist 

eligible families leasing assisted units, 

and 

(ii) Payments to the owner for vacant 

assisted units (‘‘vacancy payments’’) if 

the conditions specified in § 880.611 are 

satisfied. 

(2) The housing assistance payments 

are made monthly by the contract 

administrator upon proper requisition 

by the owner, except payments for 

vacancies under paragraph (d)(3) of this 

section, which are made semi-annually 

by the contract administrator upon 

requisition by the owner. 

(d) * * * 

(2) A housing assistance payment will 

be made to the owner for a vacant 

assisted unit in an amount equal to 80 

percent of the contract rent for the first 

30 days of a vacancy, subject to the 

conditions in § 880.611. If the owner 

collects any tenant rent or other amount 

for this period which, when added to 

this vacancy payment, exceeds the 

contract rent, the excess must be repaid 

as HUD directs. 

(3) For a vacancy that exceeds the 

vacancy period in paragraph (d)(2) of 

this section, a housing assistance 

payment for the vacant unit will be 

made, subject to the conditions in 

§ 880.611, in an amount equal to the 

principal and interest payments 

required to amortize that portion of the 

debt attributable to the vacant unit for 

up to 12 additional months. 

* * * * * 

■ 4. In § 880.611, revise the introductory 

text of paragraphs (b), (c), and (d) to 

read as follows: 


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§ 880.611 Conditions for receipt of 

vacancy payments. 

* * * * * 

(b) Vacancies during Rent-up. For 

each assisted unit that is not leased as 

of the effective date of the Contract, the 

owner is entitled to vacancy payments 

in the amount of 80 percent of the 

contract rent for the first 30 days of a 

vacancy, if the owner: * * * 

(c) Vacancies after Rent-Up. If an 

eligible family vacates a unit, the owner 

is entitled to vacancy payments in the 

amount of 80 percent of the contract 

rent for the first 30 days of a vacancy, 

if the owner: * * * 

(d) Debt-service vacancy payments. If 

an assisted unit continues to be vacant 

after the vacancy period specified in 

paragraph (b) or (c) of this section, the 

owner may apply to receive additional 

vacancy payments in an amount equal 

to the principal and interest payments 

required to amortize that portion of the 

debt service attributable to the vacant 

unit for up to 12 additional months for 

the unit if: 

* * * * * 

■ 5. Revise § 880.612 to read as follows: 

§ 880.612 Management and occupancy 

reviews. 

(a) The contract administrator will 

conduct management and occupancy 

reviews to determine whether the owner 

is in compliance with the Contract. 

Such reviews will be conducted in 

accordance with a schedule set out by 

the Secretary and published in the 

Federal Register, following notice and 

the opportunity to comment. 

(b) HUD may independently inspect 

project operations and units at any time. 

(c) Equal Opportunity reviews may be 

conducted by HUD at any time. 

PART 881—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS PROGRAM 

FOR SUBSTANTIAL REHABILITATION 

■ 6. The authority citation for 24 CFR 

part 881 continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), 12701, and 13611–13619. 

■ 7. In § 881.201, revise the definition of 

‘‘Vacancy payment’’ to read as follows: 

§ 881.201 Definitions. 

* * * * * 

Vacancy payment. The housing 

assistance payment made to the owner 

by the contract administrator for a 

vacant assisted unit if certain conditions 

are fulfilled. 

* * * * * 

■ 8. In § 881.501, 

■ a. Revise paragraph (c)(2); 

■ b. Redesignate the undesignated 

paragraph in paragraph (c) as (c)(3) and 

revise the newly redesignated 

paragraph; and 

■ c. Revise paragraphs (d)(2) and (3) to 

read as follows: 

§ 881.501 The contract. 

* * * * * 

(c) * * * 

(2) Payments to the owner for vacant 

assisted units (‘‘vacancy payments’’) if 

the conditions specified in § 880.611 of 

this chapter are satisfied. 

(3) The housing assistance payments 

are made monthly by the contract 

administrator upon proper requisition 

by the owner, except payments under 

paragraph (d)(3), which are made semiannually by the contract administrator 

upon requisition by the owner. 

(d) * * * 

(2) A housing assistance payment will 

be made to the owner for a vacant 

assisted unit in an amount equal to 80 

percent of the contract rent for the first 

30 days of a vacancy, subject to the 

conditions in § 880.611 of this chapter. 

If the owner collects any tenant rent or 

other amount for this period which, 

when added to this vacancy payment, 

exceeds the contract rent, the excess 

must be repaid as HUD directs. 

(3) For a vacancy that exceeds the 

vacancy period in paragraph (d)(2), a 

housing assistance payment for the 

vacant unit will be made, subject to the 

conditions in § 880.611 of this chapter, 

in an amount equal to the principal and 

interest payments required to amortize 

that portion of the debt attributable to 

the vacant unit for up to 12 additional 

months. 

* * * * * 

PART 883—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS 

PROGRAM—STATE HOUSING 

AGENCIES 

■ 9. The authority citation for 24 CFR 

part 883 continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), and 13611–13619. 

■ 10. In § 883.302, revise the definition 

of ‘‘Vacancy payment’’ to read as 

follows: 

§ 883.302 Definitions. 

* * * * * 

Vacancy payments. The housing 

assistance payment made to the owner 

by the State Agency for a vacant, 

assisted unit if certain conditions are 

fulfilled. 

* * * * * 

■ 11. In § 883.602: 

■ a. Redesignate the undesignated 

paragraph in paragraph (b) as (b)(3) and 

revise the newly redesignated 

paragraph; and 

■ b. Revise paragraphs (c)(2) and (3) to 

read as follows: 

§ 883.602 The contract. 

* * * * * 

(b) * * * 

(3) The housing assistance payments 

are made monthly by the State Agency 

upon proper requisition by the owner, 

except payments under paragraph (c)(3) 

of this section, which are made semiannually by the Agency upon proper 

requisition by the owner. 

(c) * * * 

(2) A housing assistance payment will 

be made to the owner for a vacant 

assisted unit in an amount equal to 80 

percent of the contract rent for the first 

30 days of a vacancy, subject to the 

conditions in § 880.611 of this chapter. 

If the owner collects any tenant rent or 

other amount for this period which, 

when added to this vacancy payment, 

exceeds the contract rent, the excess 

must be repaid as the Agency directs in 

accordance with HUD guidelines. 

(3) For a vacancy that exceeds the 

vacancy period in paragraph (c)(2) of 

this section, a housing assistance 

payment for the vacant unit will be 

made, subject to the conditions in 

§ 880.611 of this chapter, in an amount 

equal to the principal and interest 

payments required to amortize that 

portion of the debt attributable to the 

vacant unit for up to 12 additional 

months. 

* * * * * 

PART 884—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS PROGRAM, 

NEW CONSTRUCTION SET-ASIDE FOR 

SECTION 515 RURAL RENTAL 

HOUSING PROJECTS 

■ 12. The authority citation for 24 CFR 

part 884 continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), and 13611–13619. 

■ 13. In § 884.106, revise the 

introductory text of paragraphs (b) and 

paragraph (c)(1), and revise paragraph 

(d)(1) to read as follows: 

§ 884.106 Housing assistance payment to 

owners. 

* * * * * 

(b) Vacancies during rent-up. If a 

Contract Unit is not leased as of the 

effective date of the Contract, the Owner 

shall be entitled to housing assistance 

payments in the amount of 80 percent 

of the Contract Rent for the first 30 days 

of a vacancy, in accordance with the 

procedure set forth in § 884.213(b): 

* * * 

(c) Vacancies after rent-up. (1) If an 

Eligible Family vacates its unit (other 

than as a result of action by the Owner 


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which is in violation of the Lease or the 

Contract or any applicable law), the 

Owner shall receive housing assistance 

payments in the amount of 80 percent 

of the Contract Rent for the first 30 days 

of a vacancy; provided, however, That if 

the Owner collects any of the Family’s 

share of the rent for this period in an 

amount which, when added to the 80 

percent payments, results in more than 

the Contract Rent, such excess shall be 

payable to HUD or as HUD may direct. 

(See also § 884.115). The Owner shall 

not be entitled to any payment under 

this paragraph (c)(1) unless the Owner: 

* * * 

* * * * * 

(d) Debt-service vacancy payments. 

(1) If a unit continues to be vacant after 

the vacancy period specified in 

paragraph (b) or (c) of this section, the 

owner may submit a claim to receive 

additional housing assistance payments 

on a semiannual basis with respect to 

the vacant unit in an amount equal to 

the principal and interest payments 

required to amortize the portion of the 

debt attributable to that unit for the 

period of the vacancy, whether the 

vacancy commenced during rent-up or 

after rent-up. 

* * * * * 

■ 14. Revise § 884.224 to read as 

follows: 

§ 884.224 Management and occupancy 

reviews. 

(a) The contract administrator will 

conduct management and occupancy 

reviews to determine whether the owner 

is in compliance with the Contract. 

Such reviews will be conducted in 

accordance with a schedule set out by 

the Secretary and published in the 

Federal Register, following notice and 

the opportunity to comment. 

(b) HUD may independently inspect 

project operations and units at any time. 

(c) Equal Opportunity reviews may be 

conducted by HUD at any time. 

PART 886—SECTION 8 HOUSING 

ASSISTANCE PAYMENTS 

PROGRAM—SPECIAL ALLOCATIONS 

■ 15. The authority citation for 24 CFR 

part 886 continues to read as follows: 

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 

3535(d), and 13611–13619. 

■ 16. In § 886.109, revise paragraph (c) 

and add paragraphs (d), (e), (f), and (g) 

to read as follows: 

§ 886.109 Housing assistance payments to 

owners. 

* * * * * 

(c) Vacancies during rent-up. If a 

Contract unit which is decent, safe and 

sanitary and has been accepted by HUD 

as available as of the effective date of 

the Contract is not leased within 15 

days of the effective date of the 

Contract, the owner will be entitled to 

housing assistance payments in the 

amount of 80 percent of the Contract 

Rent for the first 30 days of a vacancy, 

provided that the owner: 

(1) Has submitted a list of units leased 

as of the effective date and a list of the 

units not so leased; 

(2) 60 days prior to the completion of 

the rehabilitation or the date the 

agreement was executed, whichever is 

later, had notified the PHA of any units 

which the owner anticipated would be 

vacant on the anticipated effective date 

of the contract; 

(3) Has taken and continues to take all 

feasible actions to fill the vacancy 

including, but not limited to: Contacting 

applicants on the owner’s waiting list, if 

any, requesting the PHA and other 

appropriate sources to refer eligible 

applicants, and advertising the 

availability of the units in a manner 

specifically designed to reach lowincome families; and 

(4) Has not rejected any eligible 

applicant except for good cause 

acceptable to HUD. 

(d) Vacancies after rent-up. If an 

Eligible Family vacates its unit (other 

than as a result of action by the owner 

which is in violation of the Lease or the 

Contract or any applicable law), the 

owner shall receive housing assistance 

payments in the amount of 80 percent 

of the Contract Rent for the first 30 days 

of a vacancy. However, if the owner 

collects any of the family’s share of the 

rent for this period, the payment must 

be reduced to an amount which, when 

added to the family’s payments, does 

not exceed 80 percent of the Contract 

Rent. Any such excess shall be 

reimbursed by the owner to HUD or as 

HUD may direct. (See also § 886.115.) 

The owner shall not be entitled to any 

payment under this paragraph unless he 

or she: 

(1) Immediately upon learning of the 

vacancy, has notified HUD of the 

vacancy or prospective vacancy and the 

reasons for the vacancy, 

(2) Has made and continues to make 

a good faith effort to fill the vacancy, 

including but not limited to, contacting 

applicants on the waiting list, if any, 

requesting the PHA and other 

appropriate sources to refer eligible 

applicants, and advertising the 

availability of the unit, and 

(3) Has not rejected any eligible 

applicant, except for good cause 

acceptable to HUD. 

(e) Payments for units where family is 

evicted. If the owner evicts a family, the 

owner shall not be entitled to any 

payments pursuant to paragraph (d) of 

this section unless the request for such 

payment is supported by a certification 

that the provisions of § 886.128 and part 

247 of this title have been followed. 

(f) Prohibition for double 

compensation for vacancies. The owner 

shall not be entitled to housing 

assistance payments with respect to 

vacant units under this section to the 

extent he or she is entitled to payments 

from other sources (for example, 

payments for losses of rental income 

incurred for holding units vacant for 

relocatees pursuant to Title I of the HCD 

Act or payments under § 886.116). 

(g) Debt-service vacancy payments. (1) 

If a contract unit continues to be vacant 

after the vacancy period specified in 

paragraph (c) or (d) of this section, the 

owner may submit a claim and receive 

additional housing assistance payments 

on a semiannual basis with respect to 

such a vacant unit in an amount equal 

to the principal and interest payments 

required to amortize the portion of the 

debt attributable to that unit for the 

period of the vacancy, whether such 

vacancy commenced during rent-up or 

after rent-up. 

(2) Additional payments under this 

paragraph (g) for any unit shall not be 

for more than 12 months for any 

vacancy period, and shall be made only 

if: 

(i) The unit was in decent, safe, and 

sanitary condition during the vacancy 

period for which payments are claimed. 

(ii) The owner has taken and is 

continuing to take the actions specified 

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

paragraphs (d)(1) and (2) of this section, 

as appropriate. 

(iii) The owner has demonstrated, in 

connection with the semiannual claim 

form and in accordance with the 

standards prescribed by HUD, that the 

project is not providing the owner with 

revenues at least equal to the project 

costs incurred by the owner, and that 

the amount of the payments requested is 

not in excess of that portion of the 

deficiency which is attributable to the 

vacant units for the period of the 

vacancies. 

(iv) The owner has submitted, in 

connection with the semiannual claim, 

a statement with relevant supporting 

evidence that there is a reasonable 

prospect that the project can achieve 

financial soundness within a reasonable 

time. The statement shall indicate the 

causes of the deficiency; the corrective 

steps that have been and will be taken; 

and the time by which it is expected 

that the project revenues will at least 

equal project costs without the 

additional payments provided under 

this paragraph. 


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(3) HUD may deny any claim for 

additional payments or suspend or 

terminate payments if it determines that 

based on the owner’s statement and 

other evidence, there is not a reasonable 

prospect that the project can achieve 

financial soundness within a reasonable 

time. 

■ 17. Revise § 886.130 to read as 

follows: 

§ 886.130 Management and occupancy 

reviews. 

(a) The contract administrator will 

conduct management and occupancy 

reviews to determine whether the owner 

is in compliance with the Contract. 

Such reviews will be conducted in 

accordance with a schedule set out by 

the Secretary and published in the 

Federal Register, following notice and 

the opportunity to comment. 

(b) HUD may independently inspect 

project operations and units at any time. 

(c) Equal Opportunity reviews may be 

conducted by HUD at any time. 

■ 18. Amend § 886.309 to read as 

follows: 

■ a. Revise paragraphs (c) and (d); 

■ b. In paragraph (e), remove the phrase 

‘‘to § 886.327’’ and add in its place ‘‘to 

§ 886.328;’’ and 

■ c. In paragraph (g), revise the heading 

of paragraph (g) and paragraph (g)(1). 

§ 886.309 Housing assistance payment to 

owners. 

* * * * * 

(c) Vacancies during rent-up. If a 

Contract unit which is decent, safe and 

sanitary and has been accepted by HUD 

as available as of the effective date of 

the Contract is not leased within 15 

days of the effective date of the 

Contract, the Owner will be entitled to 

housing assistance payments in the 

amount of 80 percent of the Contract 

Rent for the first 30 days of a vacancy, 

provided that the Owner: 

(1) Has submitted a list of units leased 

as of the effective date and a list of the 

units not so leased; 

(2) Sixty days prior to the completion 

of the rehabilitation or the date the 

agreement was executed, whichever is 

later, had notified the PHA of any units 

which the owner anticipated would be 

vacant on the anticipated effective date 

of the contract; 

(3) Has taken and continues to take all 

feasible actions to fill the vacancy 

including, but not limited to: 

Contracting applicants on the Owner’s 

waiting list, if any, requesting the PHA 

and other appropriate sources to refer 

eligible applicants, and advertising the 

availability of the units in a manner 

specifically designed to reach lowincome families; and 

(4) Has not rejected any eligible 

applicant except for good cause 

acceptable to HUD. 

(d) Vacancies after rent-up. If an 

Eligible Family vacates its unit (other 

than as a result of action by the Owner 

which is in violation of the Lease or the 

Contract or any applicable law), the 

Owner shall receive housing assistance 

payments in the amount of 80 percent 

of the Contract Rent for the first 30 days 

of a vacancy. However, if the owner 

collects any of the family’s share of the 

rent for this period, the payment must 

be reduced to an amount which, when 

added to the family’s payments, does 

not exceed 80 percent of the Contract 

Rent. Any such excess shall be 

reimbursed by the Owner to HUD or as 

HUD may direct. (See also § 886.315.) 

The owner shall not be entitled to any 

payment under this paragraph unless he 

or she: 

(1) Immediately upon learning of the 

vacancy, has notified HUD of the 

vacancy or prospective vacancy and the 

reasons for the vacancy; and 

(2) Has made and continues to make 

a good faith effort to fill the vacancy, 

including but not limited to, contacting 

applicants on the waiting list, if any, 

requesting the PHA and other 

appropriate sources to refer eligible 

applicants, and advertising the 

availability of the unit; and 

(3) Has not rejected any eligible 

applicant, except for good cause 

acceptable to HUD. 

* * * * * 

(g) Debt-service vacancy payments. (1) 

If a contract unit continues to be vacant 

after the vacancy period specified in 

paragraph (c) or (d) of this section, the 

owner may submit a claim and receive 

additional housing assistance payments 

on a semiannual basis with respect to 

such a vacant unit in an amount equal 

to the principal and interest payments 

required to amortize the portion of the 

debt attributable to that unit for the 

period of the vacancy, whether such 

vacancy commenced during rent-up or 

after rent-up. 

* * * * * 

■ 19. Revise § 886.335 to read as 

follows: 

§ 886.335 Management and occupancy 

reviews. 

(a) The contract administrator will 

conduct management and occupancy 

reviews to determine whether the owner 

is in compliance with the Contract. 

Such reviews will be conducted in 

accordance with a schedule set out by 

the Secretary and published in the 

Federal Register, following notice and 

the opportunity to comment. 

(b) HUD may independently inspect 

project operations and units at any time. 

(c) Equal Opportunity reviews may be 

conducted by HUD at any time. 

PART 891—SUPPORTIVE HOUSING 

FOR THE ELDERLY AND PERSONS 

WITH DISABILITIES 

■ 20. The authority citation for 24 CFR 

part 891 continues to read as follows: 

Authority: 12 U.S.C. 1701q; 42 U.S.C. 

1437f, 3535(d), and 8013. 

■ 21. In § 891.520, revise the definition 

of ‘‘Vacancy payment’’ to read as 

follows: 

§ 891.520 Definitions applicable to 202/8 

projects. 

* * * * * 

Vacancy payment means the housing 

assistance payment made to the owner 

by HUD for a vacant assisted unit if 

certain conditions are fulfilled. 

* * * * * 

■ 22. In § 891.560, remove the word 

‘‘Borrower’’ and add in its place the 

word ‘‘Owner’’ wherever it appears, and 

revise paragraph (c)(2) to read as 

follows: 

§ 891.560 HAP contract. 

* * * * * 

(c) * * * 

(2) Payments to the owner for vacant 

assisted units (vacancy payments). The 

amount of and conditions for vacancy 

payments are described in § 891.650. 

The housing assistance payments are 

made monthly by HUD upon proper 

requisition by the owner, except 

payments for vacancies under 

§ 891.650(d), which are made 

semiannually by HUD upon requisition 

by the owner. 

* * * * * 

■ 23. Add § 891.582 to read as follows: 

§ 891.582 Management and occupancy 

reviews. 

(a) The contract administrator will 

conduct management and occupancy 

reviews to determine whether the owner 

is in compliance with the HAP Contract. 

Such reviews will be conducted in 

accordance with a schedule set out by 

the Secretary and published in the 

Federal Register, following notice and 

the opportunity to comment. 

(b) HUD may independently inspect 

project operations and units at any time. 

(c) Equal Opportunity reviews may be 

conducted by HUD at any time. 

■ 24. In § 891.650, remove the word 

‘‘Borrower’’ and add in its place the 

word ‘‘Owner’’ wherever it appears and 

revise the introductory text of 

paragraphs (b), (c), and (d) to read as 

follows: 


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§ 891.650 Conditions for receipt of 

vacancy payments for assisted units. 

* * * * * 

(b) Vacancies during rent-up. For each 

unit that is not leased as of the effective 

date of the HAP contract, the owner is 

entitled to vacancy payments in the 

amount of 80 percent of the contract 

rent for the first 30 days of a vacancy, 

if the owner: 

* * * * * 

(c) Vacancies after rent-up. If an 

eligible family vacates a unit, the owner 

is entitled to vacancy payments in the 

amount of 80 percent of the contract 

rent for the first 30 days of a vacancy, 

if the owner: 

* * * * * 

(d) Debt-service vacancy payments. If 

a unit continues to be vacant after the 

vacancy period specified in paragraph 

(b) or (c) of this section, the owner may 

apply to receive additional vacancy 

payments in an amount equal to the 

principal and interest payments 

required to amortize that portion of the 

debt service attributable to the vacant 

unit for up to 12 additional months for 

the unit if: 

* * * * * 

■ 25. In § 891.655, revise the definition 

of ‘‘Vacancy payment’’ to read as 

follows: 

§ 891.655 Definitions applicable to 202/162 

projects. 

* * * * * 

Vacancy payment means the housing 

assistance payment made to the owner 

by HUD for a vacant assisted unit if 

certain conditions are fulfilled. 

* * * * * 

■ 26. In § 891.705, remove the word 

‘‘Borrower’’ and add in its place the 

word ‘‘Owner’’ wherever it appears, and 

revise paragraph (c)(2) to read as 

follows: 

§ 891.705 Project assistance contract. 

* * * * * 

(c) * * * 

(2) Payments to the owner for vacant 

assisted units (vacancy payments). The 

amount of and conditions for vacancy 

payments are described in § 891.790. 

HUD makes the project assistance 

payments monthly upon proper 

requisition by the owner, except 

payments for vacancies under 

§ 891.790(d), which HUD makes 

semiannually upon requisition by the 

owner. 

* * * * * 

■ 27. In § 891.790, remove the word 

‘‘Borrower’’ and add in its place the 

word ‘‘Owner’’ wherever it appears, and 

revise the introductory text of 

paragraphs (b), (c), and (d) to read as 

follows: 

§ 891.790 Conditions for receipt of 

vacancy payments for assisted units. 

* * * * * 

(b) Vacancies during rent-up. For each 

unit (or residential space in a group 

home) that is not leased as of the 

effective date of the PAC, the owner is 

entitled to vacancy payments in the 

amount of 80 percent of the contract 

rent (or pro rata share of the contract 

rent for a group home) for the first 30 

days of a vacancy, if the owner: 

* * * * * 

(c) Vacancies after rent-up. If an 

eligible family vacates an assisted unit 

(or residential space in a group home) 

the owner is entitled to vacancy 

payments in the amount of 80 percent 

of the contract rent (or pro rata share of 

the contract rent for a group home) for 

the first 30 days of a vacancy, if the 

owner: 

* * * * * 

(d) Debt-service vacancy payments. If 

an assisted unit (or residential space in 

a group home) continues to be vacant 

after the vacancy period specified in 

paragraph (b) or (c) of this section, the 

owner may apply to receive additional 

vacancy payments in an amount equal 

to the principal and interest payments 

required to amortize that portion of the 

debt service attributable to the vacant 

unit (or, in the case of group homes, the 

residential space) for up to 12 additional 

months for the unit, if: 

* * * * * 

Dated: December 11, 2014. 

Biniam Gebre, 

Acting Assistant Secretary for Housing— 

Federal Housing Commissioner. 

[FR Doc. 2015–00357 Filed 1–13–15; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF AGRICULTURE 

Forest Service 

36 CFR Part 242 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Part 100 

[Docket No. FWS–R7–SM–2014–0062; 

FXFR13350700640–156–FF07J00000; 

FBMS#4500074738] 

RIN 1018–BA39 

Subsistence Management Regulations 

for Public Lands in Alaska—2016–17 

and 2017–18 Subsistence Taking of 

Wildlife Regulations 

AGENCY: Forest Service, Agriculture; 

Fish and Wildlife Service, Interior. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

establish regulations for hunting and 

trapping seasons, harvest limits, and 

methods and means related to taking of 

wildlife for subsistence uses during the 

2016–17 and 2017–18 regulatory years. 

The Federal Subsistence Board is on a 

schedule of completing the process of 

revising subsistence taking of wildlife 

regulations in even-numbered years and 

subsistence taking of fish and shellfish 

regulations in odd-numbered years; 

public proposal and review processes 

take place during the preceding year. 

The Board also addresses customary and 

traditional use determinations during 

the applicable cycle. When final, the 

resulting rulemaking will replace the 

existing subsistence wildlife taking 

regulations. This rule would also amend 

the general regulations on subsistence 

taking of fish and wildlife. 

DATES: Public meetings: The Federal 

Subsistence Regional Advisory Councils 

will hold public meetings to receive 

comments and make proposals to 

change this proposed rule on several 

dates between February 10 and March 

19, 2015, and then hold another round 

of public meetings to discuss and 

receive comments on the proposals, and 

make recommendations on the 

proposals to the Federal Subsistence 

Board, on several dates between August 

17 and November 4, 2015. The Board 

will discuss and evaluate proposed 

regulatory changes during a public 

meeting in Anchorage, AK, in April 

2016. See SUPPLEMENTARY INFORMATION

for specific information on dates and 

locations of the public meetings. 

Public comments: Comments and 

proposals to change this proposed rule 

must be received or postmarked by 

March 25, 2015. 

ADDRESSES: Public meetings: The 

Federal Subsistence Board and the 

Federal Subsistence Regional Advisory 

Councils’ public meetings will be held 

at various locations in Alaska. See 

SUPPLEMENTARY INFORMATION for specific 

information on dates and locations of 

the public meetings. 

Public comments: You may submit 

comments by one of the following 

methods: 

• Electronically: Go to the Federal 

eRulemaking Portal: http://

www.regulations.gov and search for 

FWS–R7–SM–2014–0062, which is the 

docket number for this rulemaking. 

• By hard copy: U.S. mail or handdelivery to: USFWS, Office of 

Subsistence Management, 1011 East 

Tudor Road, MS 121, Attn: Theo 

Matuskowitz, Anchorage, AK 99503– 

6199, or hand delivery to the Designated 


wreier-aviles on DSK4TPTVN1PROD with PROPOSALS