Rule2022-11543
Affordable Housing Program-Technical Revisions
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 1, 2022
Effective
July 1, 2022
Issuing agencies
Federal Housing Finance Agency
Abstract
The Federal Housing Finance Agency (FHFA) is making technical revisions to its regulation governing the Federal Home Loan Banks' (Banks) Affordable Housing Program (AHP) and to related provisions in the Community Support Requirements regulation, which were both amended by a final rule published on November 28, 2018. These technical revisions are consistent with FHFA's policy intent, as reflected in the preamble discussions of the 2018 final rule, and do not involve any policy changes.
Full Text
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<title>Federal Register, Volume 87 Issue 105 (Wednesday, June 1, 2022)</title>
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[Federal Register Volume 87, Number 105 (Wednesday, June 1, 2022)]
[Rules and Regulations]
[Pages 32965-32969]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11543]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 87, No. 105 / Wednesday, June 1, 2022 / Rules
and Regulations
[[Page 32965]]
FEDERAL HOUSING FINANCE AGENCY
12 CFR Parts 1290 and 1291
RIN 2590-AB08
Affordable Housing Program--Technical Revisions
AGENCY: Federal Housing Finance Agency.
ACTION: Final rule; technical revisions.
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SUMMARY: The Federal Housing Finance Agency (FHFA) is making technical
revisions to its regulation governing the Federal Home Loan Banks'
(Banks) Affordable Housing Program (AHP) and to related provisions in
the Community Support Requirements regulation, which were both amended
by a final rule published on November 28, 2018. These technical
revisions are consistent with FHFA's policy intent, as reflected in the
preamble discussions of the 2018 final rule, and do not involve any
policy changes.
DATES: This rule is effective July 1, 2022.
FOR FURTHER INFORMATION CONTACT: Ted Wartell, Manager, Office of
Housing and Community Investment, 202-649-3157, <a href="/cdn-cgi/l/email-protection#700415145e07110204151c1c30161816115e171f06"><span class="__cf_email__" data-cfemail="087c6d6c267f697a7c6d6464486e606e69266f677e">[email protected]</span></a>;
Tiffani Moore, Supervisory Policy Analyst, Office of Housing and
Community Investment, 202-649-3304, <a href="/cdn-cgi/l/email-protection#f98d909f9f989790d79496968b9cb99f919f98d79e968f"><span class="__cf_email__" data-cfemail="5b2f323d3d3a353275363434293e1b3d333d3a753c342d">[email protected]</span></a>; or Marshall
Adam Pecsek, Assistant General Counsel, Office of General Counsel, 202-
649-3380, <a href="/cdn-cgi/l/email-protection#d3beb2a1a0bbb2bfbffda3b6b0a0b6b893b5bbb5b2fdb4bca5"><span class="__cf_email__" data-cfemail="ed808c9f9e858c8181c39d888e9e8886ad8b858b8cc38a829b">[email protected]</span></a> (these are not toll-free numbers);
Federal Housing Finance Agency, 400 7th Street SW, Washington, DC
20219. For TTY/TRS users with hearing and speech disabilities, dial 711
and ask to be connected to any of the contact numbers above.
SUPPLEMENTARY INFORMATION:
I. Summary of Revisions
On November 28, 2018, FHFA published a final rule (2018 final rule)
(83 FR 61186) that amended its regulation governing requirements for
the Banks' AHP (12 CFR part 1291). Since publication of the 2018 final
rule, FHFA has identified inadvertent omissions in the regulatory text,
and opportunities for clarification and streamlining of the regulatory
text and preamble language. This rule makes these technical revisions,
which are summarized below and further described in Sections II. and
III. below.
<bullet> Clarifies that the equation in the 2018 final rule
preamble illustrating the pro rata AHP subsidy repayment calculation
more accurately describes the calculation if the word ``occupied'' were
replaced with the word ``owned'';
<bullet> Clarifies in the regulatory text that amendments to Bank's
annual Targeted Community Lending Plan (TCLP) that relate to its AHP
must be published no later than the publication date of its AHP
Implementation Plan, regardless of whether a Bank plans to establish
any Targeted Funds, which was inadvertently omitted from the regulatory
text;
<bullet> Reinserts the word ``construction'' inadvertently omitted
from various places in the regulatory text related to owner-occupied
units constructed with AHP subsidy, as they continue to be subject to
the AHP retention agreement requirement;
<bullet> Clarifies in the regulatory text that the criteria in a
Bank's scoring tie-breaker methodology for its General Fund and any
Targeted Funds must be selected from the applicable Fund's scoring
criteria, as in identical to the scoring criteria and not modified
versions of them;
<bullet> Reinserts inadvertently omitted regulatory text exempting
the Banks from the requirement to review annual certifications from
owners or sponsors of Low-Income Housing Tax Credit (LIHTC) projects
during the AHP long-term monitoring period;
<bullet> Clarifies in the regulatory text that a Bank must review
all annual certifications from AHP project sponsors or owners during
the AHP long-term monitoring period (subject to certain exceptions),
i.e., a Bank may not use a risk-based sampling plan to select the
certifications it will review;
<bullet> Clarifies the regulatory text governing a Bank's authority
to establish various maximum AHP subsidy limits for its General Fund
and any Targeted Funds; and
<bullet> Streamlines the regulatory text by eliminating a
superfluous regulatory provision on non-delegation regarding adoption
of Bank policies on re-use of repaid AHP direct subsidies.
II. Clarification of Equation in 2018 Final Rule Preamble Illustrating
Pro Rata AHP Subsidy Repayment Calculation--Sec. 1291.15(a)(7)(v)(A)
Section 1291.15(a)(7)(v)(A) of the 2018 final rule revised the
methodology for calculating the amount of AHP subsidy to be repaid by
an AHP-assisted household in the event that the household's owner-
occupied unit is sold or refinanced during the AHP five-year retention
period. One component of this calculation, retained but modified from
the predecessor AHP regulation, is a requirement that the amount of AHP
subsidy to be repaid be ``reduced on a pro rata basis per month until
the unit is sold, transferred, or its title or deed transferred, or is
refinanced, during the AHP five-year retention period.'' Consistent
with this requirement, the preamble of the 2018 final rule stated that
the AHP subsidy amount is to be ``reduced on a pro rata basis for the
time that the household owned the unit until its sale or refinancing.''
83 FR 61203 (emphasis added). An equation in the preamble illustrating
this pro rata calculation used the word ``occupied'' rather than
``owned.'' Id. While ownership and occupancy are typically coextensive
for AHP-assisted households, this may not always be the case.
Accordingly, the equation reads more accurately if the word
``occupied'' is replaced with the word ``owned'', as follows:
[[Page 32966]]
[GRAPHIC] [TIFF OMITTED] TR01JN22.045
III. Revisions to Regulatory Text
A. Requirement To Publish Targeted Community Lending Plan No Later Than
Publication of AHP Implementation Plan--Sec. Sec. 1290.6(c),
1291.13(a)(2)
The 2018 final rule requires that a Bank publish its current TCLP
on its publicly available website, and publish any amendments to its
TCLP on the website within 30 days after the date of their adoption by
the Bank's board of directors. The final rule further states that if a
Bank plans to establish any Targeted Funds under its AHP, the Bank must
publish its TCLP (as amended) on its website on or before the date of
publication of its annual AHP Implementation Plan, and at least 90 days
before the first day that applications may be submitted to the Targeted
Fund, unless the Targeted Fund is specifically targeted to address a
Federal- or state-declared disaster. 12 CFR 1290.6(c), 1291.13(a)(2).
The preamble to the 2018 final rule stated that ``. . . the final
rule requires the Banks to publish their TCLPs no later than the
publication date of their AHP Implementation Plans.'' 83 FR 61197. The
2018 final rule's regulatory text inadvertently omitted this TCLP
publication timing requirement when a Bank does not plan to establish
any Targeted Funds. Accordingly, to align the regulatory text with
FHFA's stated intent, FHFA is amending Sec. 1290.6(c) of the Community
Support Requirements regulation and Sec. 1291.13(a)(2) of the AHP
regulation to require that a Bank's TCLP (as amended) must be published
no later than the date of publication of the Bank's AHP Implementation
Plan (as amended), regardless of whether a Bank plans to establish any
Targeted Funds. Because a Bank's TCLP also addresses Bank activity and
plans not related to its AHP (e.g., establishment of quantitative
targeted community lending performance goals under Sec.
1290.6(a)(5)(iv)), these amendments to the rule text specify that only
those TCLP amendments related to the Bank's AHP must be published on or
before publication of the annual AHP Implementation Plan.
B. Retention Agreements on Owner-Occupied Units Constructed With AHP
Subsidy--Sec. Sec. 1291.1 (Definition of ``Retention Period''),
1291.15(a)(7), 1291.23(d)(1)
In several places in the 2018 final rule's regulatory text, the
rule requires or references a requirement that an AHP-assisted owner-
occupied unit be subject to an AHP retention agreement if the AHP
subsidy is used for the purchase, or purchase in conjunction with
rehabilitation, of the unit, but inadvertently omits the word
``construction'' in these provisions. This omission would suggest that
AHP retention agreements are not required where AHP subsidy is used for
construction of the unit. Omission of the word ``construction'' is
correct with respect to households that receive AHP subsidy under the
Bank's homeownership set-aside programs, as AHP subsidy may not be used
for construction under those programs. However, the omission is not
correct where AHP subsidy is used for construction under the Banks'
competitive application programs (i.e., the General Fund and any
Targeted Funds), a permissible use under those programs. As further
discussed below, FHFA did not intend to eliminate this requirement for
AHP retention agreements for the competitive application programs. In a
July 2019 ``Questions and Answers'' document posted on FHFA's website
and sent to the Banks, FHFA acknowledged this inadvertent omission and
stated its intent to correct the error in a future rule.\1\
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\1\ See Questions and Answers on the November 28, 2018 Final
Rule--Part I (July 2019), available at <a href="https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf">https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf</a>.
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The predecessor AHP regulation required retention agreements for
all owner-occupied units for which AHP subsidy use was authorized--
i.e., purchase, rehabilitation, or construction of units in projects
awarded subsidies under a Bank's competitive application program, and
purchase or rehabilitation of units by households funded under a Bank's
homeownership set-aside program(s). 12 CFR 1291.9(a)(7) (Jan. 1, 2018
edition). In its proposed rule to amend the AHP regulation, FHFA
proposed eliminating the requirement for retention agreements for all
AHP-assisted owner-occupied units, regardless of how the AHP subsidy
was used. 83 FR 11351. However, in the 2018 final rule, FHFA decided to
eliminate the requirement for retention agreements only where the AHP
subsidy is used solely for rehabilitation without an accompanying
purchase. In reinserting the retention agreement language in the final
rule, FHFA inadvertently omitted the existing regulatory references to
``construction.''
FHFA's intent in this regard is clear in the preamble discussion in
the 2018 final rule. Where the preamble first summarizes the effect of
the final rule, it states that the rule's effect is to ``remove the
requirement for retention agreements for owner-occupied units where the
AHP subsidy is used solely for rehabilitation,'' and includes no
indication of an intent to remove the requirement under any other
circumstances. Id. at 61186. The preamble further states that ``[i]n a
change from the proposed rule, the final rule eliminates the current
requirement for owner-occupied retention agreements where households
use the AHP subsidy solely for rehabilitation of a unit, but retains it
in other circumstances.'' Id. at 61192 (emphases added). This is
further indicated by the subsequent analysis in the preamble, which
acknowledges commenters' claims about the benefits of owner-occupied
retention agreements, but only includes a justification for eliminating
the requirement where the subsidy is used solely for rehabilitation
without an accompanying purchase. See id. at 61193 (concluding that
abuse, in the form of ``flipping,'' is unlikely ``where the AHP subsidy
is used solely for rehabilitation of homes, with no accompanying
purchase.'') Had FHFA intended to eliminate the requirement for
retention agreements for owner-occupied units where the AHP subsidy is
used for construction, the preamble would have included an
acknowledgment of this change as well as a rationale, neither of which
appears in the preamble.
Accordingly, to align the regulatory text with FHFA's intent, FHFA
is amending Sec. 1291.23(d)(1) to reinsert construction as a use of
AHP subsidy in owner-occupied projects for which AHP retention
agreements are required, and
[[Page 32967]]
also making conforming revisions to Sec. Sec. 1291.1 (definition of
``retention period'') and 1291.15(a)(7) (introductory text).
C. Scoring Tie-Breaker Methodology--Sec. 1291.25(c)(3)
The 2018 final rule requires a Bank to establish and implement a
scoring tie-breaker policy for selecting between or among project
applications receiving identical scores under its General Fund and any
Targeted Funds in the same funding round when there is insufficient AHP
subsidy to approve all of the tied applications but sufficient subsidy
to approve one of them. The Bank is required to meet certain
requirements specified in the final rule in establishing its scoring
tie-breaker policy, including that the methodology used to break a
scoring tie, which may differ for each Fund, must be ``drawn from'' the
particular Fund's scoring criteria adopted in the Bank's AHP
Implementation Plan. 12 CFR 1291.25(c)(3). The preamble to the 2018
final rule states that, with one limited exception, the scoring tie-
breaker requirements are ``consistent with guidance FHFA has provided
to the Banks and with the proposed rule.'' 83 FR 61212. That guidance,
Advisory Bulletin 2013-06, provided examples of permitted scoring tie-
breaker methodologies that a hypothetical Bank could adopt, each of
which incorporated scoring criteria identical to those included in the
hypothetical Bank's AHP Implementation Plan.
A question has arisen as to whether the scoring tie-breaker
provision in the 2018 final rule permits a Bank to adopt a scoring tie-
breaker methodology that incorporates scoring criteria similar, but not
identical, to specific scoring criteria for the applicable Fund in the
Bank's AHP Implementation Plan. As indicated in the preamble to the
2018 final rule, in light of the relevant guidance in Advisory Bulletin
2013-06, FHFA intended that a Bank's scoring tie-breaker methodology
for a particular Fund be identical to one or more scoring criteria for
that Fund in the Bank's AHP Implementation Plan. The phrase ``drawn
from'' was intended to indicate that a Bank would select, from all of
the existing scoring criteria in its AHP Implementation Plan, one or
more of those scoring criteria to serve as the scoring tie-breaker(s).
It was not intended that a Bank could use modified versions of its
existing scoring criteria.
Accordingly, to more closely align the regulatory text with FHFA's
intent, FHFA is amending Sec. 1291.25(c)(3) by replacing the phrase
``drawn from'' with the phrase ``selected from.''
D. Exception to Annual Certification Requirement for LIHTC Projects
During Long-Term Monitoring; Clarification That a Bank May Not Conduct
Risk-Based Sampling of Annual Project Sponsor or Owner Certifications
During the Long-Term Monitoring Period--Sec. 1291.50(c)(1)(i),
(c)(2)(ii); Exception to Annual Certification Requirement for LIHTC
Projects
Section 1291.50(c)(1) of the 2018 final rule requires generally
that each Bank conduct long-term monitoring of AHP-assisted rental
projects for the duration of the AHP 15-year retention period. This
monitoring includes Bank review of annual certifications by project
sponsors or owners of compliance with the AHP household income and rent
requirements and ongoing project financial viability (paragraph
(c)(1)(i)). The predecessor AHP regulation provided for an exception to
this annual certification requirement where the project received LIHTCs
under paragraph (a)(2), or where the project received funds from a
Federal, state or local government entity under paragraph (a)(3). 12
CFR 1291.7(a)(2), (3) (Jan. 1, 2018 edition). The 2018 final rule
retained the exception for projects receiving funds from such
government entities in Sec. 1291.50(b), but in reorganizing the
various monitoring provisions, inadvertently omitted the exception for
LIHTC projects from Sec. 1291.50(c)(1)(i). FHFA's intent to retain
this exception for LIHTC projects is clearly indicated in the preamble
of the 2018 final rule, which states that: ``[c]onsistent with the
current regulation and proposed rule, the final rule does not require
the Banks to conduct long-term monitoring of AHP projects that received
LIHTCs during the AHP 15-year retention period.'' 83 FR 61201. In the
above-referenced ``Questions and Answers'' guidance document, FHFA
acknowledged this inadvertent omission and stated its intent to correct
it in a future rule.\2\
---------------------------------------------------------------------------
\2\ See Questions and Answers on the November 28, 2018 Final
Rule--Part I (July 2019), available at <a href="https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf">https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf</a>.
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Accordingly, to align the regulatory text with FHFA's stated
intent, FHFA is amending Sec. 1291.50(c)(1)(i) to provide that during
long-term monitoring of AHP-assisted rental projects, a Bank is not
required to review annual certifications by sponsors or owners of LIHTC
projects.
Scope of risk-based sampling. Section 1291.50(c)(1)(ii) of the 2018
final rule requires that a Bank's written monitoring policies also
include requirements for Bank review of back-up project documentation
regarding household incomes and rents maintained by the project sponsor
or owner, except for LIHTC projects and projects that received funds
from a Federal, state or local government entity under Sec.
1291.50(b)(1) and (2) as specified in separate FHFA guidance. Section
1291.50(c)(2)(ii) provides that a Bank may use a reasonable, risk-based
sampling plan to select the rental projects ``to be monitored under
this paragraph (c),'' and to review the back-up project documentation
and any other project documentation. The corresponding provision in the
predecessor AHP regulation included annual project sponsor or owner
certifications as eligible for risk-based sampling, but this option was
removed by the 2018 final rule because, in practice, as noted in the
preamble to the 2018 AHP proposed rule, the Banks review all annual
project sponsor or owner certifications (subject to the exceptions
discussed above), consistent with FHFA's expectation. 83 FR 11364.
However, the phrase ``to be monitored under this paragraph (c)'' in
Sec. 1291.50(c)(2)(ii) might be misread to suggest that a Bank may use
a risk-based sampling plan to select the annual project sponsor or
owner certifications it will review.
Accordingly, to better align the regulatory text with FHFA's
intent, FHFA is amending Sec. 1291.50(c)(1)(i) to provide that during
AHP long-term monitoring, a Bank must review all annual project sponsor
or owner certifications (subject to the exceptions discussed above),
i.e., a Bank may not use a risk-based sampling plan under Sec.
1291.50(c)(2)(ii) to select the annual project sponsor or owner
certifications it will review.
E. Maximum Subsidy Limits--Sec. 1291.24(c)(1)
Section 1291.24(c)(1) of the 2018 final rule authorizes a Bank to
establish, in its discretion, a limit on the maximum amount of AHP
subsidy available per member, per project sponsor, per project, or per
project unit in a single AHP funding round under its General Fund and
any Targeted Funds. The provision further states that a Bank may
establish only one maximum subsidy limit per such entity for the
General Fund and for each Targeted Fund, which must apply to all
applicants to the specific Fund, but the maximum subsidy limit per
project or per project unit may differ among the Funds.
[[Page 32968]]
The text of Sec. 1291.24(c)(1) accurately reflects FHFA's intent,
but prompted a request for clarification of the language, specifically,
how many different AHP subsidy limits may a Bank establish within each
General Fund and Targeted Fund, or across multiple Funds. FHFA's intent
was not to prohibit a Bank from establishing more than one type of
limit per Fund, but to require that for each type established, the
quantitative subsidy limit be applied uniformly across such Fund.\3\
Nor did the predecessor AHP regulatory text, which was located at Sec.
1291.5(c)(15)(i), prohibit a Bank from applying more than one type of
subsidy limit to its competitive application program, and FHFA did not
propose such a prohibition in the 2018 proposed rule.
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\3\ FHFA provided clarifying guidance in an April 2020
``Questions and Answers'' document posted on its website and sent to
the Banks. See Questions and Answers on the November 28, 2018 Final
Rule--Part II (April 2020), available at <a href="https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/AHP-FAQs-4-6-2020.pdf">https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/AHP-FAQs-4-6-2020.pdf</a>.
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Accordingly, to provide greater clarity, FHFA is adding explanatory
language in Sec. 1291.24(c)(1) stating that each General Fund or
Targeted Fund may contain up to all four of these optional AHP subsidy
limits, each of which must apply to all applicants to the specific
Fund. A Bank's AHP subsidy limit per member must be the same for each
of its Funds and its AHP subsidy limit per project sponsor must be the
same for each of its Funds, but a Bank's AHP subsidy limit per project
and per project unit may differ among the Funds.
F. Removal of Superfluous Provision on Non-Delegation of Authority To
Adopt AHP Subsidy Re-Use Policies--Sec. 1291.64(b)(2)
Section 1291.64(b)(2) of the 2018 final rule, which was retained
from the predecessor AHP regulation (12 CFR 1291.8(f)(2)(ii) (Jan. 1,
2018 edition)), prohibits a Bank's board of directors from delegating
to Bank officers or other Bank employees the responsibility to adopt
any Bank policies on re-use of repaid AHP direct subsidies in the same
project. Sections 1291.13(b)(12) and 1291.64(b)(1) of the 2018 final
rule, also retained from the predecessor AHP regulation (12 CFR
1291.3(a)(7); 1291.8(f)(2)(i) (Jan. 1, 2018 edition)), require that
these AHP subsidy re-use policies be included in the Bank's AHP
Implementation Plan. Section 1291.13(b) of the 2018 final rule
(introductory text) prohibits a Bank's board of directors from
delegating to a committee of the board, Bank officers, or other Bank
employees the responsibility for adopting or amending the Bank's AHP
Implementation Plan, which, thus, includes adopting any AHP subsidy re-
use policies in the Plan. The non-delegation provision for AHP subsidy
re-use policies in Sec. 1291.64(b)(2) is, therefore, superfluous.
Accordingly, to streamline the regulatory text, FHFA is removing
the non-delegation provision in Sec. 1291.64(b)(2), and making
technical changes to the paragraph numbering in Sec. 1291.64(b) to
reflect this removal.
IV. Public Notice and Comment
The Administrative Procedures Act provides that when an agency for
good cause finds that public notice and comment on a rule are
impracticable, unnecessary, or contrary to the public interest, the
agency may publish the rule in final form without prior public notice
and comment. 5 U.S.C. 553(b)(B). Because this rule makes technical
revisions that do not reflect any changes in the policy intent of the
2018 final rule, publication of proposed amendments with an opportunity
for public comment would serve no useful public purpose. Accordingly,
FHFA finds that public notice and comment on this rule is unnecessary
and is proceeding directly to a final rule.
V. Consideration of Differences Between the Banks and Enterprises
Section 1313(f) of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 requires the FHFA Director, when promulgating
regulations ``of general applicability and future effect'' relating to
the Banks, to consider the differences between the Banks and Fannie Mae
and Freddie Mac (the Enterprises) as they may relate to the Banks'
cooperative ownership structure, mission of providing liquidity to
members, affordable housing and community development mission, capital
structure, and joint and several liability. 12 U.S.C. 4513(f). This
rule applies only to the Banks. It makes technical revisions to align
the 2018 final rule with FHFA's policy intent in that rule. In
preparing the 2018 final rule, the Director considered the differences
between the Banks and the Enterprises as they relate to the above
factors, and determined that the amendments in the 2018 final rule were
positive for the affordable housing mission of the Banks and neutral
regarding the other statutory factors. Because this rule makes only
technical revisions, none of which involves policy changes, no further
analysis is needed under section 1313(f).
VI. Regulatory Determinations
A. Paperwork Reduction Act
This rule does not contain any information collection requirement
that would require the approval of the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.).
Therefore, FHFA has not submitted any information to OMB for review for
PRA purposes.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that
a regulation that has a significant economic impact on a substantial
number of small entities, small businesses, or small organizations must
include an initial regulatory flexibility analysis describing the
regulation's impact on small entities. Such an analysis need not be
undertaken if the agency has certified that the regulation will not
have a significant economic impact on a substantial number of small
entities. 5 U.S.C. 605(b). FHFA certified that the 2018 final rule was
not likely to have a significant economic impact on a substantial
number of small entities because it applied to the Banks, which are not
small entities for purposes of the Regulatory Flexibility Act. 83 FR
61231. For these same reasons, and also because this rule makes only
technical revisions to align the 2018 final rule with FHFA's policy
intent in that rule, FHFA certifies that this rule is unlikely to have
a significant economic impact on a substantial number of small
entities.
C. Congressional Review Act
In accordance with the Congressional Review Act (5 U.S.C. 801 et
seq.), FHFA has determined that this rule is not a major rule and has
verified this determination with the Office of Information and
Regulatory Affairs of the OMB.
List of Subjects
12 CFR Part 1290
Banks and banking, Credit, Federal home loan banks, Housing,
Mortgages, Reporting and recordkeeping requirements.
12 CFR Part 1291
Community development, Credit, Federal home loan banks, Housing,
Low- and moderate-income housing, Mortgages, Reporting and
recordkeeping requirements.
For the reasons stated in the preamble, FHFA amends parts 1290 and
1291 of title 12 of the Code of Federal Regulations as follows:
[[Page 32969]]
PART 1290-COMMUNITY SUPPORT REQUIREMENTS
0
1. The authority citation for part 1290 continues to read as follows:
Authority: 12 U.S.C. 1430(g).
0
2. Amend Sec. 1290.6 by revising paragraph (c) to read as follows:
Sec. 1290.6 Bank community support programs.
* * * * *
(c) Public access. A Bank shall publish its current Targeted
Community Lending Plan on its publicly available website, and shall
publish any amendments to its Targeted Community Lending Plan on the
website within 30 days after the date of their adoption by the Bank's
board of directors and no later than the date of publication on the
website of its annual Affordable Housing Program Implementation Plan
(as amended). If such amendments relate to the Bank's Affordable
Housing Program, the Bank shall publish them no later than the date of
publication on its website of its annual Affordable Housing Program
Implementation Plan (as amended). If a Bank plans to establish any
Targeted Funds under its Affordable Housing Program, the Bank must
publish its Targeted Community Lending Plan (as amended) on the website
at least 90 days before the first day that applications may be
submitted to the Targeted Fund, unless the Targeted Fund is
specifically targeted to address a Federal- or State-declared disaster.
PART 1291--FEDERAL HOME LOAN BANKS' AFFORDABLE HOUSING PROGRAM
0
3. The authority citation for part 1291 continues to read as follows:
Authority: 12 U.S.C. 1430(j).
Sec. 1291.1 [Amended]
0
4. Amend Sec. 1291.1 in paragraph (1) of the definition of ``Retention
period'' by:
0
a. Removing ``unit or'' and adding in its place ``unit,''; and
0
b. Adding ``, or for construction of the unit'' before ``; and''.
0
5. Amend Sec. 1291.13 by revising paragraph (a)(2) to read as follows:
Sec. 1291.13 Targeted Community Lending Plan; AHP Implementation
Plan.
(a) * * *
(2) Public access. A Bank shall publish its current Targeted
Community Lending Plan on its publicly available website, and shall
publish any amendments to its Targeted Community Lending Plan on the
website within 30 days after the date of their adoption by the Bank's
board of directors and no later than the date of publication on the
website of its annual AHP Implementation Plan (as amended). If such
amendments relate to the Bank's AHP, the Bank shall publish them no
later than the date of publication on its website of its annual AHP
Implementation Plan (as amended). If a Bank plans to establish any
Targeted Funds under its AHP, the Bank must publish its Targeted
Community Lending Plan (as amended) on the website at least 90 days
before the first day that applications may be submitted to the Targeted
Fund, unless the Targeted Fund is specifically targeted to address a
Federal- or State-declared disaster.
* * * * *
Sec. 1291.15 [Amended]
0
6. Amend Sec. 1291.15 in paragraph (a)(7) introductory text by:
0
a. Removing ``or purchase'' and adding in its place ``for purchase'';
and
0
b. Adding ``or for construction'' after ``rehabilitation,''.
Sec. 1291.23 [Amended]
0
7. Amend Sec. 1291.23 in paragraph (d)(1) by:
0
a. Removing ``or for purchase'' and adding in its place ``for
purchase''; and
0
b. Adding ``or for construction'' after ``rehabilitation,''.
0
8. Amend Sec. 1291.24 in paragraph (c)(1) by revising the second
sentence and adding a third sentence to read as follows:
Sec. 1291.24 Eligible uses.
* * * * *
(c) * * *
(1) * * * Each General Fund or Targeted Fund may contain up to all
four of these optional AHP subsidy limits, each of which must apply to
all applicants to the specific Fund. A Bank's AHP subsidy limit per
member must be the same for each of its Funds and its AHP subsidy limit
per project sponsor must be the same for each of its Funds, but a
Bank's AHP subsidy limit per project and per project unit may differ
among the Funds * * *
* * * * *
Sec. 1291.25 [Amended]
0
9. Amend Sec. 1291.25 in paragraph (c)(3) by removing the word
``drawn'' and adding in its place the word ``selected''.
Sec. 1291.50 [Amended]
0
10. Amend Sec. 1291.50 in paragraph (c)(1)(i) by removing the words
``Bank review of annual certifications by project sponsors or owners to
the Bank'' and adding in their place the words ``Bank review of all
annual certifications to the Bank by project sponsors or owners, other
than sponsors or owners of projects that have been allocated LIHTCs,''.
Sec. 1291.64 [Amended]
0
11. Amend Sec. 1291.64 by:
0
a. Removing paragraph (b)(2) and the heading for paragraph (b)(1).
0
b. Redesignating paragraphs (b)(1) introductory text and (b)(1)(i),
(ii), and (iii) as paragraphs (b) introductory text and (b)(1), (2),
and (3), respectively.
Sandra L. Thompson,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2022-11543 Filed 5-31-22; 8:45 am]
BILLING CODE 8070-01-P
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