[Federal Register Volume 60, Number 137 (Tuesday, July 18, 1995)]
[Rules and Regulations]
[Pages 36666-36669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17540]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Public and Indian Housing
24 CFR Part 950
[Docket No. R-95-1742; FR-3646-C-03]
RIN 2577-AB43
Indian Housing Program: Amendments; Final Rule; Technical
Corrections
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; technical corrections.
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SUMMARY: On April 10, 1995, HUD published a final rule amending the
Indian Housing consolidated regulations and moving these regulations
from part 905 to a new part 950. This document corrects several minor
and inadvertent omissions from that final rule.
EFFECTIVE DATE: The effective date of this correction is July 18, 1995.
FOR FURTHER INFORMATION CONTACT: Dominic Nessi, Deputy Assistant
Secretary for Native American Programs, Public and Indian Housing, Room
B-133, Department of Housing and Urban Development, 451 Seventh Street
SW, Washington, DC 20410, telephone (202) 755-0032. Hearing- or speech-
impaired persons may use the TDD number (202) 708-0850. (These are not
toll-free numbers.)
SUPPLEMENTARY INFORMATION: On April 10, 1995, HUD published a final
rule amending the Indian Housing consolidated regulations and moving
these regulations from part 905 to a new part 950 (60 FR 18174). These
amendments were necessary to simplify program processes, reduce the
number of regulatory requirements, and provide more flexibility to
local tribal and Indian housing authority officials in the
administration of the Indian Housing program.
This document corrects several minor and inadvertent omissions from
that final rule. First, this document reinstates the amendments to the
definition of annual income that were made by HUD's Combined Income and
Rent interim rule, published in the Federal Register on April 5, 1995
(60 FR 17388). The Indian Housing final rule and the Combined Income
and Rent interim rule were in the final stages of departmental review
at the same time. While HUD intended the Indian Housing final rule to
be comprehensive, it did not intend to supplant the necessary changes
that were made by the Combined Income and Rent interim rule.
Second, this document corrects the section of the Indian Housing
final rule regarding the establishment of Indian Housing Authorities
(IHAs) by tribal ordinance. The language of the section appears to
provide that an IHA, and not the tribe, would enact such an ordinance.
Such an interpretation would clearly be incorrect; therefore, this
document clarifies that section to reflect that the tribe would enact
the ordinance.
Third, this document inserts a provision clarifying that HUD's one-
time approval of an IHA's Indian preference methods would continue to
apply under the new regulations. This ``grandfather'' provision was
inadvertently omitted from the Indian Housing final rule. HUD intended
that those IHAs whose preference methods were already approved under
previous requirements would not have to seek approval again under HUD's
new, less prescriptive requirements.
Fourth, this document corrects language in the provisions of the
Indian Housing final rule regarding the conversion of projects in the
Mutual Help Homeownership Opportunity program and the Turnkey III
Program. In the Indian Housing final rule, HUD simplified these
provisions by eliminating the formal application process. This document
will remove the references to that process that are now obsolete but
that HUD inadvertently left in the rule.
Fifth, this document reinstates, in subpart H of the Indian Housing
final
[[Page 36667]]
rule (Lead-Based Paint Poisoning Prevention), a reference that was
inadvertently omitted to the Lead-Based Paint Interim Guidelines for
Hazard Identification and Abatement in Public and Indian Housing. As
the preamble to the Indian Housing final rule states (60 FR 18183), HUD
did not intend to make changes to the Lead-Based Paint (LBP) provisions
in this rule,1 but only intended to republish them in order to
present a consolidated set of regulations. HUD also takes the
opportunity in this document to conform the LBP provisions to Federal
Register requirements by informing the public that they can request a
copy of the guidelines from HUD's Office of Lead-Based Paint Abatement
and Poisoning Prevention.
\1\ However, HUD is developing a proposed rule that would
implement sections 1012 and 1013 of the Residential Lead-Based Paint
Hazard Reduction Act of 1992 and set forth new requirements
concerning lead-based paint notice, evaluation, and reduction for
all of the HUD's programs, including Indian housing.
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Accordingly, FR Doc. 95-8346, a final rule published in the Federal
Register on April 10, 1995 (60 FR 18174) is corrected as follows:
1. On page 18188, beginning in column three, and ending on page
18190, in column one, Sec. 950.102 is corrected by revising the
definition of ``Annual income'' to read as follows:
Sec. 950.102 Definitions.
* * * * *
Annual income. Annual income is the anticipated total income from
all sources received by the family head and spouse (even if temporarily
absent) and by each additional member of the family, including all net
income derived from assets, for the 12-month period following the
effective date of the initial determination or reexamination of income,
exclusive of certain types of income as provided in paragraph (2) of
this definition.
(1) Annual income includes, but is not limited to:
(i) The full amount, before any payroll deductions, of wages and
salaries, overtime pay, commissions, fees, tips and bonuses, and other
compensation for personal services;
(ii) The net income from operation of a business or profession.
Expenditures for business expansion or amortization of capital
indebtedness shall not be used as deductions in determining net income.
An allowance for depreciation of assets used in a business or
profession may be deducted, based on straight line depreciation, as
provided in Internal Revenue Service regulations. Any withdrawal of
cash or assets from the operation of a business or profession will be
included in income, except to the extent the withdrawal is
reimbursement of cash or assets invested in the operation by the
family;
(iii) Interest, dividends, and other net income of any kind from
real or personal property. Expenditures for amortization of capital
indebtedness shall not be used as deductions in determining net income.
An allowance for depreciation is permitted only as authorized in
paragraph (1)(ii) of this definition. Any withdrawal of cash or assets
from an investment will be included in income, except to the extent the
withdrawal is reimbursement of cash or assets invested by the family.
Where the family has net family assets in excess of $5,000, annual
income shall include the greater of the actual income derived from all
net family assets or a percentage of the value of such assets based on
the current passbook savings rate as determined by HUD;
(iv) The full amount of periodic payments received from social
security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits, and other similar types of periodic
receipts, including a lump-sum payment for the delayed start of a
periodic payment (but see paragraph (2)(xiv) of this definition);
(v) Payments in lieu of earnings, such as unemployment and
disability compensation, worker's compensation, and severance pay (but
see paragraph (2)(iii) of this definition);
(vi) Welfare assistance. If the welfare assistance payment includes
an amount specifically designated for shelter and utilities that is
subject to adjustment by the welfare assistance agency in accordance
with the actual cost of shelter and utilities, the amount of welfare
assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount
specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could, in
fact, allow the family for shelter and utilities. If the family's
welfare assistance is ratably reduced from the standard of need by
applying a percentage, the amount calculated under paragraph (1)(vi)(B)
of this definition shall be the amount resulting from one application
of the percentage;
(vii) Periodic and determinable allowances, such as alimony and
child support payments, and regular contributions or gifts received
from persons not residing in the dwelling; and
(viii) All regular pay, special pay, and allowances of a member of
the Armed Forces (but see paragraph (2)(vii) of this definition).
(2) Annual income does not include the following:
(i) Income from employment of children (including foster children)
under the age of 18 years;
(ii) Payments received for the care of foster children or foster
adults (usually individuals with disabilities, unrelated to the tenant
family, who are unable to live alone);
(iii) Lump-sum additions to family assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains, and settlement for
personal or property losses (but see paragraph (1)(v) of this
definition);
(iv) Amounts received by the family that are specifically for, or
in reimbursement of, the cost of medical expenses for any family
member;
(v) Income of a Live-in Aide;
(vi) The full amount of student financial assistance paid directly
to the student or to the educational institution;
(vii) The special pay to a family member serving in the Armed
Forces who is exposed to hostile fire;
(viii)(A) Amounts received under training programs funded by HUD;
(B) Amounts received by a disabled person that are disregarded for
a limited time for purposes of supplemental security income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS);
(C) Amounts received by a participant in other publicly assisted
programs that are specifically for or in reimbursement of out-of-pocket
expenses incurred (special equipment, clothing, transportation, child
care, etc.) and that are made solely to allow participation in a
specific program;
(D) A resident service stipend. A resident service stipend is a
modest amount (not to exceed $200 per month) received by an Indian
housing resident for performing a service for the IHA, on a part-time
basis, that enhances the quality of life in Indian housing. Such
services may include, but are not limited to, fire patrol, hall
monitoring, lawn maintenance, and resident initiatives coordination. No
resident may receive more than one such stipend during the same period
of time; or
(E) Compensation from State or local employment training programs
and training of a family member as resident management staff. Amounts
excluded by this provision must be received under employment training
programs with clearly defined goals and
[[Page 36668]]
objectives, and are excluded only for a limited period as determined in
advance by the IHA;
(ix) Temporary, nonrecurring, or sporadic income (including gifts);
(x) For all initial determinations and reexaminations of income
carried out on or after April 23, 1993, reparation payments paid by a
foreign government pursuant to claims filed under the laws of that
government by persons who were persecuted during the Nazi era;
(xi) Earnings in excess of $480 for each full-time student 18 years
old or older (excluding the head of household and spouse);
(xii) Adoption assistance payments in excess of $480 per adopted
child;
(xiii) The earnings and benefits to any resident resulting from the
participation in a program providing employment training and supportive
services in accordance with the Family Support Act of 1988, section 22
of the U.S. Housing Act of 1937 (42 U.S.C. 1437t), or any comparable
Federal, State, tribal, or local law during the exclusion period. For
purposes of paragraph (2)(xiii) of this definition, the following
definitions apply:
(A) Comparable Federal, State, tribal, or local law means a program
that provides employment training and supportive services and that:
(1) Is authorized by Federal, State, tribal, or local law;
(2) Is funded by Federal, State, tribal, or local government;
(3) Is operated or administered by a public agency; and
(4) Has as its objective assisting participants in acquiring
employment skills.
(B) Exclusion period means the period during which the resident
participates in a program described in this definition, plus 18 months
from the date the resident begins the first job acquired by the
resident after completion of such program that is not funded by public
housing assistance under the U.S. Housing Act of 1937. If the resident
is terminated from employment without good cause, the exclusion period
shall end.
(C) Earnings and benefits means the incremental earnings and
benefits resulting from a qualifying employment training program or
subsequent job;
(xiv) Deferred periodic payments of supplemental security income
and social security benefits that are received in a lump-sum payment;
(xv) Amounts received by the family in the form of refunds or
rebates under State or local law for property taxes on the dwelling
unit;
(xvi) Amounts paid by a State agency to a family with a
developmentally disabled family member living at home to offset the
cost of services and equipment needed to keep the developmentally
disabled family member at home; or
(xvii) Amounts specifically excluded by any other Federal statute
from consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under the U.S. Housing Act of 1937. A notice will be
published in the Federal Register and distributed to IHAs identifying
the benefits that qualify for this exclusion. Updates will be published
and distributed when necessary.
(3) If it is not feasible to anticipate a level of income over a
12-month period, the income anticipated for a shorter period may be
annualized subject to a redetermination at the end of the shorter
period.
(4) Any family receiving the reparation payments referred to in
paragraph (2)(x) of this definition that has been requested to repay
assistance under this part as a result of receipt of such payments
shall not be required to make further repayments on or after April 23,
1993.
* * * * *
2. On page 18194, in column three, and immediately before
Sec. 950.110, subpart A is corrected by adding a new Sec. 950.103, to
read as follows:
Sec. 950.103 Effective date.
In Secs. 950.102, paragraphs (2)(ii), (2)(vi), (2)(viii)(D) through
(E), (2)(xi), (2)(xii), (2)(xv), and (2)(xvi) of the definition of
Annual income shall expire and shall not be in effect after May 6,
1996, unless prior to May 6, 1996, HUD publishes changes to those
paragraphs in the definition of Annual income in Sec. 950.102 or
publishes a notice in the Federal Register to extend the effective
date.
3. On page 18197, in column three, Sec. 950.126 is corrected by
revising paragraph (d)(2), to read as follows:
Sec. 950.126 Establishment of IHAs by tribal ordinance.
* * * * *
(d) * * *
(2) An IHA must certify that the ordinance has been enacted
pursuant to any constitutional law or practice and that it has the
local cooperation required by law.
4. On page 18202, in column two, Sec. 950.175 is corrected by
revising paragraph (d)(1)(iii), to read as follows:
Sec. 950.175 Indian preference requirements.
* * * * *
(d) * * *
(1) * * *
(iii) Develop and incorporate into their procurement policy,
subject to HUD Area ONAP one-time approval, the IHA's method of
providing preference. In no instance shall HUD approve a method that
provides preference based upon affiliation or membership in a
particular tribe or group of tribes. Indian preference methods adopted
by an IHA prior to May 10, 1995 that met the Indian preference
requirements of program regulations as they existed immediately before
May 10, 1995 are considered to have received one-time approval of the
HUD Area ONAP.
* * * * *
5. On page 18226, in column two, Sec. 950.437 is corrected by
redesignating paragraph (c)(1) as paragraph (c).
6. On page 18229, in column one, Sec. 950.455 is corrected by
revising the second sentence in paragraph (c), to read as follows:
Sec. 950.455 Conversion of rental projects.
* * * * *
(c) Submission requirements. * * * The HUD Area ONAP shall review
the request for legal sufficiency; tribal acceptance; demonstration of
family interest; evidence that units are habitable, safe, and sanitary;
family qualifications as discussed in paragraph (b)(2) of this section;
and financial feasibility. * * *
7. On page 18229, in the first column, Sec. 950.458 is corrected by
revising the second sentence in paragraph (c), to read as follows:
Sec. 950.458 Conversion of Mutual Help projects to rental program.
* * * * *
(c) Submission requirements. * * * The HUD Area ONAP shall review
the request for legal sufficiency, tribal acceptance, demonstration of
family interest, and financial feasibility. * * *
8. On page 18231, in column one, Sec. 950.503 is corrected by
revising the second sentence in paragraph (c), to read as follows:
Sec. 950.503 Conversion of Turnkey III developments.
* * * * *
(c) Submission requirements. * * * The HUD Area ONAP shall review
the request for legal sufficiency, tribal acceptance, demonstration of
family interest, and financial feasibility. * * *
9. On page 18237, in column one, Sec. 950.553 is corrected by
revising paragraph (c), to read as follows:
Sec. 950.553 Testing and abatement applicable to development.
* * * * *
[[Page 36669]]
(c) Compliance with guidelines. It is strongly encouraged, but not
required, that all such properties be tested in accordance with the
Lead-Based Paint Interim Guidelines for Hazard Identification and
Abatement in Public and Indian Housing (hereafter Lead-Based Paint
Interim Guidelines), as periodically amended or updated, and other
future official departmental issuances related to lead-based paint,
before any irrevocable commitment is made to acquire the property. The
Lead-Based Paint Interim Guidelines are available by contacting the
following office: Department of Housing and Urban Development, Office
of Lead-Based Paint Abatement and Poisoning Prevention, Room B-133, 451
Seventh Street, SW, Washington, DC 20410; telephone (202) 755-1805.
Properties that have already been tested in accordance with the Lead-
Based Paint Poisoning Prevention Act as amended by the Housing and
Community Development Act of 1987 need not be tested again. If lead-
based paint is found in a property to be acquired, the cost of testing
and abatement shall be considered when making the cost comparison to
justify new construction, as well as when meeting maximum total
development cost limitations.
* * * * *
10. On page 18237, in column three, Sec. 950.570 is corrected by
revising paragraph (c), to read as follows:
Sec. 950.570 Procedures involving EBLs.
* * * * *
(c) Testing. Testing shall be completed within five days after
notification to the IHA of the identification of the EBL child. It is
strongly recommended, but not required, that IHAs use the testing
methods outlined in Part II of the Lead-Based Paint Interim Guidelines,
as periodically amended or updated, and other future official
departmental issuances related to lead-based paint. A qualified
inspector or laboratory shall certify in writing the precise results of
the inspection. Testing services available from State, local, or tribal
health or housing agencies or an organization recognized by HUD shall
be utilized to the extent available. If the results equal or exceed a
level of 1 mg/cm2 or .5% by weight, the results shall be provided to
the tenant or the family of the EBL child using the IHA-owned or
operated child care facility. Testing will be considered an eligible
modernization cost under subpart I of this part only upon IHA
certification that testing services are otherwise unavailable.
* * * * *
Dated: June 28, 1995.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-17540 Filed 7-17-95; 8:45 am]
BILLING CODE 4210-33-P