[Federal Register Volume 61, Number 161 (Monday, August 19, 1996)]
[Rules and Regulations]
[Pages 42952-42954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21032]
[[Page 42951]]
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Part III
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 280
Streamlining of the Nehemiah Housing Opportunity Grants Program; Final
Rule
Federal Register / Vol. 61, No. 161 / Monday, August 19, 1996 / Rules
and Regulations
[[Page 42952]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 280
[Docket No. FR-4090-F-01]
RIN 2502-AG76
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner; Streamlining of the Nehemiah Housing Opportunity Grants
Program
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: This final rule amends HUD's regulations governing the
Nehemiah Housing Opportunity Grants Program (NHOP). Congress is no
longer authorizing grants under NHOP. Accordingly, this final rule
removes HUD's obsolete regulations implementing NHOP from title 24.
Those provisions which are necessary to the administration of existing
NHOP grants will be retained. This rule will make HUD's regulations
governing NHOP clearer and more concise.
EFFECTIVE DATE: September 18, 1996.
FOR FURTHER INFORMATION CONTACT: Richard K. Manuel, Office of Insured
Single Family Housing, Room 9272, Department of Housing and Urban
Development, 451 Seventh Street, SW., Washington, DC, 20410, telephone
number (202) 708-2700. (This is not a toll-free telephone number.)
Hearing- or speech-impaired individuals may access this number via TTY
by calling the toll-free Federal Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
HUD's regulations at 24 CFR part 280 describe the requirements for
the Nehemiah Housing Opportunity Grants Program (NHOP). Under the NHOP,
HUD made grants to nonprofit organizations to be used to provide loans
to families purchasing homes constructed or substantially rehabilitated
in accordance with HUD approved programs. Section 289(a) of the
National Affordable Housing Act (42 U.S.C. 12839) repealed the NHOP.
Accordingly, HUD is no longer making new NHOP grants. This final rule
removes the obsolete regulations at 24 CFR part 280. However, those
regulatory provisions which are necessary to the administration of
existing NHOP grants are being retained.
For the convenience of readers, the following table summarizes the
changes made by this final rule to 24 CFR part 280:
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Section Section title Summary of changes to section
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Sec. 280.1..................... Applicability and Scope..... Amended to reflect elimination of the NHOP.
Sec. 280.5..................... Definitions................. Amended to remove obsolete definitions.
Sec. 280.100................... NHOP Assistance............. Redesignated as Sec. 280.10. Amended to reflect
elimination of the NHOP.
Sec. 280.103................... Assistance under other HUD Redesignated as Sec. 280.15.
programs.
Sec. 280.105................... Program size................ Removed.
Sec. 280.110................... Program location............ Removed.
Sec. 280.115................... Home quality................ Redesignated as Sec. 280.20.
Sec. 280.200................... Notice of fund availability. Removed.
Sec. 280.205................... Application requirements.... Removed.
Sec. 280.207................... Other Federal requirements.. Redesignated as Sec. 280.25.
Sec. 280.210................... Selection process........... Removed.
Sec. 280.215................... Threshold requirements...... Removed.
Sec. 280.220................... Ranking criteria............ Removed.
Sec. 280.225................... Final selection............. Removed.
Sec. 280.300................... Obligation of funds......... Removed.
Sec. 280.303................... Grant agreement............. Redesignated as Sec. 280.30.
Sec. 280.305................... Minimum participation....... Redesignated as Sec. 280.35.
Sec. 280.315................... Eligible purchasers......... Redesignated as Sec. 280.40.
Sec. 280.320................... Sales contract and Redesignated as Sec. 280.45. Amended to reflect
downpayment requirements. changes made by this final rule.
Sec. 280.322................... Loan requirements........... Redesignated as Sec. 280.50. Amended to reflect
changes made by this final rule.
Sec. 280.330................... Repayment of loan........... Redesignated as Sec. 280.55.
Sec. 280.335................... Funding amendments and Redesignated as Sec. 280.60.
deobligation of funds.
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II. Justification for Final Rulemaking
It is HUD's policy to publish rules for public comment before their
issuance for effect, in accordance with its own regulations on
rulemaking found at 24 CFR part 10. However, part 10 provides for
exceptions to the general rule if HUD finds good cause to omit advance
notice and public participation. The good cause requirement is
satisfied when prior public procedure is ``impracticable, unnecessary,
or contrary to the public interest'' (24 CFR 10.1.). HUD finds that
good cause exists to publish this rule for effect without first
soliciting public comment. This final rule merely removes obsolete
regulatory provisions from title 24. The rule does not establish or
affect substantive policy. Therefore, prior public comment is
unnecessary.
III. Findings and Certifications
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this final rule, and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities. This rule merely
streamlines regulations by removing obsolete provisions. Specifically,
this rule removes HUD's outdated regulations at 24 CFR part 280, which
govern participation in NHOP. HUD is only retaining those provisions
which are necessary to the administration of existing NHOP grants. The
final rule will have no adverse or disproportionate economic impact on
small businesses.
Environmental Impact
This rulemaking does not have an environmental impact. This
rulemaking simply amends existing regulations by removing obsolete
provisions and does not alter the environmental effect of the
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regulations being amended. A Finding of No Significant Impact with
respect to the environment was made in accordance with HUD regulations
in 24 CFR part 50 that implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time of
development of the regulations implementing NHOP. This finding remains
applicable to this rule and is available for public inspection between
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket
Clerk, Office of General Counsel, Room 10276, Department of Housing and
Urban Development, 451 Seventh Street, SW, Washington, DC.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this rule
will not have substantial direct effects on States or their political
subdivisions, or the relationship between the Federal government and
the States, or on the distribution of power and responsibilities among
the various levels of government. This final rule removes the outdated
regulations governing NHOP from title 24. No programmatic or policy
changes will result from this rule that would affect the relationship
between the Federal Government and State and local governments.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule will not have
the potential for significant impact on family formation, maintenance,
or general well-being, and thus is not subject to review under the
Order. This final rule streamlines HUD's regulations governing NHOP at
24 CFR part 280. Specifically, this rule removes outdated provisions
from part 280. No significant change in existing HUD policies or
programs will result from promulgation of this rule.
Unfunded Mandates Reform Act
The Secretary has reviewed this rule before publication and by
approving it certifies, in accordance with the Unfunded Mandates Reform
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal
mandate that will result in the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year.
List of Subjects in 24 CFR Part 280
Community development, Grant programs--housing and community
development, Loan programs--housing and community development, Low and
moderate income housing, Nonprofit organizations, Reporting and
recordkeeping requirements.
Accordingly, 24 CFR part 280 is amended as follows:
PART 280--NEHEMIAH HOUSING OPPORTUNITY GRANTS PROGRAM
1. The authority citation for 24 CFR part 280 continues to read as
follows:
Authority: 12 U.S.C. 1715l note; 42 U.S.C. 3535(d).
2. The headings for subparts A, B, C, and D are removed.
3. Section 280.1 is amended by revising paragraph (a) to read as
follows:
Sec. 280.1 Applicability and scope.
(a) This part sets forth the requirements for existing grants under
the Nehemiah Housing Opportunity Grants Program (NHOP). NHOP was
established by title VI of the Housing and Community Development Act of
1987 (12 U.S.C. 1715l). Under NHOP, HUD made grants to nonprofit
organizations to be used to provide loans to families purchasing homes
constructed or substantially rehabilitated in accordance with a HUD
approved program. NHOP was repealed by Section 289(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12839).
Accordingly, no new grants are being awarded under the program.
* * * * *
Sec. 280.5 [Amended]
4. Section 280.5 is amended by removing the definitions of
``Applicant'', ``Contiguous parcels of land'', and ``Financial and
other contributions to the program.''
Sec. 280.100 [Redesignated]
5. Section 280.100 redesignated as Sec. 280.10 and is revised to
read as follows:
Sec. 280.10 NHOP assistance.
Recipients may only use assistance under this part to provide loans
to families purchasing homes constructed or substantially rehabilitated
in accordance with an approved program.
Sec. 280.103 [Redesignated]
6. Section 280.103 is redesignated as Sec. 280.15.
Secs. 280.105 and 280.110 [Removed]
7. Sections 280.105 and 280.110 are removed.
Sec. 280.115 [Redesignated]
8. Section 280.115 is redesignated as Sec. 280.20.
Secs. 280.200 and 280.205 [Removed]
9. Sections 280.200 and 280.205 are removed.
Sec. 280.207 [Redesignated]
10. Section 280.207 is redesignated as Sec. 280.25.
Secs. 280.210, 280.215, 280.220, 280.225, and 280.300 [Removed]
11. Sections 280.210, 280.215, 280.220, 280.225, and 280.300 are
removed.
Sec. 280.303 [Redesignated]
12. Section 280.303 is redesignated as Sec. 280.30.
Sec. 280.305 [Redesignated]
13. Section 280.305 is redesignated as Sec. 280.35 and amended by
revising the introductory text to read as follows:
Sec. 280.35 Minimum participation.
Except as provided in paragraph (a) or (b) of this section, the
recipient may not begin the construction or substantial rehabilitation
of homes until 25 percent of the homes to be constructed or
substantially rehabilitated under the program are contracted for sale
to purchasers who intend to live in the homes and the downpayments
required under Sec. 280.45(b) have been made.
* * * * *
Sec. 280.315 [Redesignated]
14. Section 280.315 is redesignated as Sec. 280.40.
Sec. 280.320 [Redesignated]
15. Section 280.320 is redesignated as Sec. 280.45 and amended by
revising paragraphs (a)(2) and (b)(2) to read as follows:
Sec. 280.45 Sales contract and downpayment requirements.
(a) * * *
(2) The repayment provisions described in Sec. 280.55 of this part.
* * * * *
(b) * * *
(2) Date of downpayment. The downpayment must be made on the date
required by the recipient. Under Sec. 280.35, however, no construction
or rehabilitation may be begun until at least 25 percent of the homes
constructed or substantially rehabilitated under the program are
contracted for sale to purchasers who intend to live in the homes and
the downpayments are made.
* * * * *
16. Section 280.322 is redesignated as Sec. 280.50 and amended by
revising
[[Page 42954]]
paragraphs (a)(4) and (a)(6) to read as follows:
Sec. 280.50 Loan requirements.
(a) * * *
(4) Is repayable to HUD upon the sale, lease, or other transfer of
the property; except, as an alternative, the nonprofit organization may
elect to provide the Homeowner Incentive under Sec. 280.55(c) for
subsequent sale or transfer of the property (the Homeowner Incentive is
not available upon the lease of the property).
* * * * *
(6) May not be used by the family to provide the downpayment
required under Sec. 280.45.
* * * * *
Sec. 280.330 [Redesignated]
17. Section 280.330 is redesignated as Sec. 280.55.
Sec. 280.335 [Redesignated]
18. Section 280.335 is redesignated as Sec. 280.60.
Dated: August 6, 1996.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 96-21032 Filed 8-16-96; 8:45 am]
BILLING CODE 4210-27-P