[Federal Register Volume 79, Number 147 (Thursday, July 31, 2014)]
[Notices]
[Pages 44386-44389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17979]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Development Voucher Program
AGENCY: Rural Housing Service, USDA.
ACTION: Notice.
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SUMMARY: The United States Department of Agriculture (USDA) in Fiscal
Year 2006 established the demonstration Rural Development Voucher
Program, as authorized under Section 542 of the Housing Act of 1949 as
amended (42 U.S.C. 1490R) (without regard to Section 542(b)). This
Notice informs the public that funding is available for the Rural
Development Voucher Program and also sets forth the general policies
and procedures for use of these vouchers for Fiscal Year 2014. Pursuant
to the requirements in the Consolidated Appropriations Act, 2014,
Public Law 113-76, Rural Development Vouchers are only available to
low-income tenants of Rural Development-financed multifamily properties
where Rural Rental Housing loan (Section 515 loan) has been prepaid
(either through prepayment or foreclosure action), prior to the loan's
maturity date and after September 30, 2005.
DATES: In order to participate, the voucher obligation form must be
submitted within 10 months of the foreclosure or pre-payment.
FOR FURTHER INFORMATION CONTACT: Stephanie B.M. White, Director, Multi-
Family Housing Portfolio Management Division, Rural Development, U.S.
Department of Agriculture, 1400 Independence Avenue SW., STOP 0782,
Washington, DC 20250-0782, telephone (202) 720-1615. Persons with
hearing or speech impairments may access this number via TDD by calling
the toll-free Federal Information Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Consolidated Appropriations Act, 2014, Public Law 113-76,
provided that the Secretary of the USDA shall carry out the Rural
Development Voucher program as follows:
That of the funds made available under this heading, $12,575,000
shall be available for rural housing vouchers to any low-income
household (including those not receiving Rental Assistance) residing in
a property financed with a Section 515 loan which has been prepaid
after September 30, 2005: Provided further, that the amount of such
voucher shall be the difference between comparable market rent for the
Section 515 unit and the tenant paid rent for such unit: Provided
further, that funds made available for such vouchers shall be subject
to the availability of annual appropriations: Provided further, that
the Secretary shall, to the maximum extent practicable, administer such
vouchers with current regulations and administrative guidance
applicable to Section 8 housing vouchers administered by the Secretary
of the Department of Housing and Urban Development (HUD).
This Notice outlines the process for providing voucher assistance
to the eligible impacted families when an owner prepays a Section 515
loan or USDA action results in a foreclosure after September 30, 2005.
II. Design Features of the Rural Development Voucher Program
This section sets forth the design features of the Rural
Development Voucher Program, including the eligibility of families, the
inspection of the housing units, and the calculation of the subsidy
amount.
Rural Development Vouchers under this part are administered by the
Rural Housing Service, an Agency under the Rural Development mission
area, in accordance with requirements set forth in this Notice and
further explained in, ``The Rural Development Voucher Program Guide,''
which can be obtained by contacting any Rural Development office.
Contact information for Rural Development offices can be found at
https://offices.sc.egov.usda.gov/locator/app. These requirements are
generally based on the housing choice voucher program regulations of
HUD set forth at 24 CFR part 982, unless otherwise noted by this
Notice.
The Rural Development Voucher Program is intended to offer
protection to eligible multifamily housing tenants in properties
financed through Rural Development's Section 515 Rural Rental Housing
Program (515 property) who
[[Page 44387]]
may be subject to economic hardship through prepayment of the Rural
Development mortgage. When the owner of a 515 property pays off the
loan prior to the loan's maturity date (either through prepayment or
foreclosure action), the Rural Development affordable housing
requirements and rental assistance subsidies generally cease to exist.
Rents may increase, thereby making the housing unaffordable to tenants.
Regardless, the tenant may be responsible for the full payment of rent
when a prepayment occurs, whether or not the rent increases. The Rural
Development Voucher Program applies to any Section 515 property where
the mortgage is paid off prior to the maturity date in the promissory
note, and that payment occurs after September 30, 2005, this includes
properties foreclosed on by Rural Development. Tenants in properties
foreclosed on by Rural Development are eligible for a Rural Development
Voucher under the same conditions as properties that go through the
standard prepayment process.
The Rural Development Voucher is intended to help tenants by
providing an annual rental subsidy, renewable on the terms and
conditions set forth herein and subject to the availability of funds,
that will supplement the tenant's rent payment. This program enables a
tenant to make an informed decision about remaining in the property,
moving to a new property, or obtaining other financial housing
assistance. Low-income tenants in the prepaying property are eligible
to receive a voucher to use at their current rental property, or to
take to any other rental unit in the United States and its territories.
There are some general limitations on the use of a voucher:
The rental unit must pass a Rural Development health and
safety inspection, and the owner must be willing to accept a Rural
Development Voucher.
Also, Rural Development Vouchers cannot be used for units
in subsidized housing like Section 8 and public housing where two
housing subsidies would result. The Rural Development Voucher may be
used for rental units in other properties financed by Rural
Development, but it will not be used in combination with the Rural
Development Rental Assistance program.
The Rural Development Voucher may not be used to purchase
a home.
a. Family Eligibility. In order to be eligible for the Rural
Development Voucher under this Notice, a family must:
1. Be residing in the Section 515 project on the date of the
prepayment of the Section 515 loan or upon foreclosure by Rural
Development;
2. The date of the prepayment or foreclosure must be after
September 30, 2005;
3. Based on Section 214 of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a) and similar to Section 8 housing
vouchers, financial assistance under this voucher program can only be
provided to a United States (U.S.) citizen, U.S. non-citizen national,
or a resident alien that meets certain qualifications. Rural
Development considers the tenant who applies for the voucher under this
Notice as the individual receiving the financial assistance from the
voucher. Accordingly, the individual tenant who applies for a voucher
under this program must submit the following documentation (42 U.S.C.
1436a (d)):
i. For citizens, a written declaration of U.S. citizenship under
the penalty of perjury. Rural Development may request verification of
the declaration by requiring presentation of a U.S. passport, Social
Security card, or other appropriate documentation;
ii. For non-citizens who are 62 years of age or older, the evidence
consists of:
A. A signed declaration of eligible immigration status; and
B. Proof of age document; and
iii. For all other noncitizens, the evidence consists of:
A. A signed declaration of eligible immigration status;
B. Alien registration documentation or other proof of immigration
registration from the United States Citizenship and Immigration
Services (USCIS) that contains the individual's alien admission number
or alien file number; and
C. A signed verification consent form, which provides that evidence
of eligible immigration status may be released to Rural Development and
USCIS for purposes of verifying the immigration status of the
individual. Rural Development shall provide a reasonable opportunity,
not to exceed 30 days, for an individual to submit evidence indicating
a satisfactory immigration status, or to appeal to the Immigration and
Naturalization Service the verification determination of the
Immigration and Naturalization Service; and
D. The family must be a low-income family on the date of the
prepayment or foreclosure. A low-income family is a family whose annual
income does not exceed 80 percent of the family median income for the
area as defined by HUD. HUD's definition of median income can be found
at: http://www.huduser.org/portal/datasets/il/il14/index_mfi.html.
During the prepayment or foreclosure process, Rural Development
will evaluate every tenant family to determine if it is low-income. If
Rural Development determines a family is low-income, then immediately
following the foreclosure or prepayment, Rural Development will send
the primary tenant a letter offering the family a voucher and will
enclose a Voucher Obligation Request Form and a citizenship declaration
form. If the family wants to participate in the Rural Development
Voucher Program, the tenant has 10 months from the date of prepayment
or foreclosure to return the Voucher Obligation Request Form and the
citizenship declaration to the local Rural Development office. If Rural
Development determines that the tenant is ineligible, Rural Development
will provide administrative appeal rights pursuant to 7 CFR part 11.
b. Obtaining a Voucher. Rural Development will monitor the
prepayment request process or foreclosure process, as applicable. As
part of prepayment or foreclosure, Rural Development will obtain a rent
comparability study for the property days prior to the date of
prepayment or foreclosure. The rent comparability study will be used to
calculate the amount of voucher each tenant is entitled to receive. All
tenants will be notified if they are eligible and the amount of the
voucher within 90 days following the date of prepayment or foreclosure.
The tenant notice will include a description of the Rural Development
Voucher Program, a Voucher Obligation Request Form, and letter from
Rural Development offering the tenant participation in the Rural
Development Voucher Program. The tenant has 10 months from the date of
prepayment or foreclosure to return the Voucher Obligation Request Form
and the signed citizenship declaration. Failure to submit the Voucher
Obligation Request Form and the signed citizenship declaration within
the required timeframes eliminates the tenant's opportunity to receive
a voucher. A tenant's failure to respond within the required timeframes
is not appealable. Once the primary tenant returns the Voucher
Obligation Request Form and the citizenship declaration to Rural
Development, a voucher will be issued within 30 days. All information
necessary for a housing search, explanations of unit acceptability, and
Rural Development contact information will be provided by Rural
Development
[[Page 44388]]
to the tenant at the time the Voucher Obligation Form and citizenship
declaration is received. In cases when the foreclosure sale yields no
successful bidders and the property enters Rural Development inventory,
vouchers will only be offered upon taking the property into inventory.
The voucher cannot be used at an inventory property. The tenant in an
inventory property has 10 months from the date of the foreclosure to
return the Voucher Obligation Request Form and the signed citizenship
declaration. Failure to submit the Voucher Obligation Request Form and
the signed citizenship declaration within the required timeframes
eliminates the tenant's opportunity to receive a voucher. A tenant's
failure to respond within the required timeframes is not appealable.
The family receiving a Rural Development Voucher has an initial
period of 60 calendar days from issuance of the voucher to find a
housing unit. At its discretion, Rural Development may grant one or
more extensions of the initial period for up to an additional 60 days.
Generally the maximum voucher period for any family participating in
the Rural Development Voucher Program is 120 days. Only if the family
needs and requests an extension of the initial period as a reasonable
accommodation to make the program accessible to a disabled family
member, Rural Development will extend the voucher search period beyond
the 120 days. If the Rural Development Voucher remains unused after a
period of 150 days from original issuance, the Rural Development
Voucher will become void, any funding will be cancelled, and the tenant
will no longer be eligible to receive a Rural Development Voucher.
If a tenant previously participated in the Rural Development
Voucher Program and was subsequently terminated, that tenant is
ineligible for future participation in the Rural Development Voucher
Program.
c. Initial Lease Term. The initial lease term for the housing unit
where the family wishes to use the Rural Development Voucher must be
for one year.
d. Inspection of Units and Unit Approval. Once the family finds a
housing unit, Rural Development will inspect and determine if the
housing standard is acceptable within 30 days of Rural Development's
receipt of the HUD Form 52517 ``Request for Tenancy Approval Housing
Choice Voucher Program'' found at http://www.hud.gov/offices/adm/hudclips/forms/files/52517.pdf and the Disclosure of Information on
Lead-Based Paint Hazards. The inspection standards currently in effect
for the Rural Development Section 515 Multi-Family Housing Program
apply to the Rural Development Voucher Program. Rural Development must
inspect the unit and ensure that the unit meets the housing inspection
standards set forth at 7 CFR 3560.103. Under no circumstances may Rural
Development make voucher rental payments for any period of time prior
to the date that Rural Development physically inspects the unit and
determines the unit meets the housing inspection standards. In the case
of properties financed by Rural Development under the Section 515
program, Rural Development may accept the results of physical
inspections performed no more than one year prior to the date of
receipt by Rural Development of Form HUD 52517, in order to make
determinations on acceptable housing standards. Before approving a
family's assisted tenancy or executing a Housing Assistance Payments
contract, Rural Development must determine that the following
conditions are met:
1. The unit has been inspected by Rural Development and passes the
housing standards inspection or has otherwise been found acceptable as
noted previously; and
2. The lease includes the HUD Tenancy Addendum. A copy of the HUD
Tenancy Addendum will be provided by Rural Development when the tenant
is informed he/she is eligible for a voucher.
Once the conditions in the above paragraph are met, Rural
Development will approve the unit for leasing. Rural Development will
then execute with the owner a Housing Assistance Payments (HAP)
contract, Form HUD-52641. The HAP contract must be executed before
Rural Development Voucher payments can be made. Rural Development will
use its best efforts to execute the HAP contract on behalf of the
family before the beginning of the lease term. In the event that this
does not occur, the HAP contract may be executed up to 60 calendar days
after the beginning of the lease term. If the HAP contract is executed
during this 60-day period, Rural Development will pay retroactive
housing assistance payments to cover the portion of the approved lease
term before execution of the HAP contract. Any HAP contract executed
after the 60-day period will be considered untimely, and Rural
Development will not pay any housing assistance payment to the owner
for that period. In establishing the effective date of the voucher HAP
contracts, Rural Development may not execute a HAP contract that is
effective prior to the Section 515 loan prepayment.
e. Subsidy Calculations for Rural Development Vouchers. As stated
earlier, if eligible, the tenant will be notified of the maximum
voucher amount within 90 days following prepayment or foreclosure. The
maximum voucher amount for the Rural Development Voucher Program is the
difference between the comparable market rent for the family's former
Section 515 unit and the tenant's rent contribution on the date of the
prepayment. The voucher amount will be based on the comparable market
rent; the voucher amount will never exceed the comparable market rent
at the time of prepayment for the tenant's unit if the tenant chooses
to stay in-place. Also, in no event may the Rural Development Voucher
payment exceed the actual tenant lease rent. The amount of the voucher
does not change either over time or if the tenant chooses to move to a
more expensive location.
f. Mobility and Portability of Rural Development Vouchers. An
eligible family that is issued a Rural Development Voucher may elect to
use the assistance in the same project or may choose to move to another
location. The Rural Development Voucher may be used at the prepaid
property or any other rental unit in the United States and its
territories that passes Rural Development physical inspection
standards, and where the owner will accept a Rural Development Voucher
and execute a Form HUD 52641. Tenants and landlords must inform Rural
Development if the tenant plans to move during the HAP agreement term,
even to a new unit in the same complex. All moves (within a complex or
to another complex) require a new obligation, a new inspection and a
new HAP agreement. In addition, HUD Section 8 and Federally assisted
public housing is excluded from the Rural Development Voucher Program
because these units are already Federally subsidized tenants with a
Rural Development Voucher would have to give up the Rural Development
Voucher to accept the assistance at those properties. The Rural
Development Voucher may be used in other properties financed by Rural
Development, but it cannot be used in combination with the Rural
Development Rental Assistance program. Tenants with a Rural Development
Voucher that apply for housing in a Rural Development-financed property
must choose between using the voucher or Rental Assistance. If the
tenant relinquishes the Rural Development Voucher in favor of Rental
[[Page 44389]]
Assistance, the tenant is not eligible to receive another Rural
Development Voucher.
g. Term of Funding and Conditions for Renewal for Rural Development
Vouchers. The Rural Development Voucher Program provides voucher
assistance for 12 monthly payments. The voucher is issued to the
household in the name of the primary tenant, as the voucher holder. The
voucher is not transferable from the voucher holder to any other
household member except in the case of the voucher holder's death or
involuntary household separation, such as the incarceration of the
voucher holder or transfer of the voucher holder to an assisted living
or nursing home facility. Upon receiving documentation of such cases,
the voucher may be transferred at the Agency's discretion to another
tenant on the voucher holder's lease.
The voucher is renewable subject to the availability of
appropriations to the USDA. In order to renew a voucher, a tenant must
return a signed Voucher Obligation Form which will be sent to the
tenant within 60-90 days before the current voucher expires. If the
voucher holder fails to return the renewal Voucher Obligation Form
before the current voucher funding expires, the voucher will be
terminated.
In order to ensure continued eligibility to use the Rural
Development Voucher, at the time they apply for renewal of the voucher,
tenants must certify that the current family income does not exceed 80
percent of family median income. Rural Development will advise the
tenant of the maximum income level when the renewal Voucher Obligation
Form is sent.
Renewal requests will enjoy no preference and will be processed as
described in this Notice.
III. Non-Discrimination Statement
The U.S. Department of Agriculture (USDA) prohibits discrimination
in all its programs and activities on the basis of race, color,
national origin, age, disability, and where applicable, sex, marital
status, familial status, parental status, religion, sexual orientation,
genetic information, political beliefs, reprisal, or because of all or
part of an individual's income is derived from any public assistance
program. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact
USDA's TARGET Center at (202) 720-2600 (voice and TDD).
If you wish to file a Civil Rights program complaint of
discrimination, complete the USDA Program Discrimination Complaint
Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the
form. Send your completed complaint form or letter to us by mail at
U.S. Department of Agriculture, Director, Office of Adjudication, 1400
Independence Avenue SW., Washington, DC 20250-9410, by fax (202) 690-
7442 or email at [email protected]. Individuals who are deaf,
hard of hearing or have speech disabilities and wish to file a program
complaint please contact USDA through the Federal Relay Service at
(800) 877-8339 or (800) 845-6136 (in Spanish.) USDA is an equal
opportunity provider and employer. The full ``Non-Discrimination
Statement'' is found at: http://www.usda.gov.wps/portal/usda/usdahome?navtype=Non_Discrimination.
IV. Paperwork Reduction Act
The information collection requirements contained in this document
are those of the Housing Choice Voucher Program, which 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 number 2577-0169. 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.
Dated: July 8, 2014.
Tony Hernandez,
Administrator, Housing and Community Facilities Programs.
[FR Doc. 2014-17979 Filed 7-30-14; 8:45 am]
BILLING CODE 3410-XV-P