Notice2022-13425
Section 8 Housing Assistance Programs Management and Occupancy Review Schedule
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 27, 2022
Effective
September 26, 2022
Issuing agencies
Housing and Urban Development Department
Abstract
Through this Notice, the Federal Housing Administration (FHA) establishes the Management and Occupancy Review (MOR) schedule for projects assisted under each of seven project-based Section 8 programs administered by the Office of Multifamily Housing Programs. The MOR schedule establishes a frequency for the completion of MORs based upon a project's previous MOR score and the project's rating under HUD's risk-based asset management model. This Notice follows the January 14, 2015, publication of a proposed MOR schedule, on which HUD sought public comments. It adopts a final schedule that reflects changes made in response to such comments.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 122 (Monday, June 27, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 122 (Monday, June 27, 2022)]
[Notices]
[Pages 38171-38172]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13425]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5654-N-04]
Section 8 Housing Assistance Programs Management and Occupancy
Review Schedule
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Through this Notice, the Federal Housing Administration (FHA)
establishes the Management and Occupancy Review (MOR) schedule for
projects assisted under each of seven project-based Section 8 programs
administered by the Office of Multifamily Housing Programs. The MOR
schedule establishes a frequency for the completion of MORs based upon
a project's previous MOR score and the project's rating under HUD's
risk-based asset management model. This Notice follows the January 14,
2015, publication of a proposed MOR schedule, on which HUD sought
public comments. It adopts a final schedule that reflects changes made
in response to such comments.
DATES: The MOR schedule is effective September 26, 2022.
FOR FURTHER INFORMATION CONTACT: Jennifer Lavorel, Director, Program
Administration Office, Office of Multifamily Asset Management, Office
of Housing, Department of Housing and Urban Development, 451 7th Street
SW, Washington, DC 20410-7000; telephone number 202-402-2515 (this is
not a toll-free number). Hearing- and speech-impaired persons may
access this numbers through TTY by calling the Federal Relay Service at
800-877-8339 (this is a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
On January 14, 2015, HUD published the ``Section 8 Housing
Assistance Programs Proposed Management and Occupancy Review Schedule''
(MOR Notice) (80 FR 1930) to solicit public comments on HUD's proposed
MOR schedule. The proposed MOR schedule was published concurrently with
a Proposed Rule (80 FR 1860) that sought to amend HUD's regulations
governing seven project-based Section 8 Housing Assistance Payment
(HAP) programs administered by the Office of Multifamily Housing
Programs to provide for consistency across the programs with respect to
the frequency of MORs and to authorize HUD to establish by Federal
Register Notice, subject to public comment, an MOR schedule based on a
project's annual MOR score and its rating under HUD's risk-based
management model.
The seven programs addressed in the Proposed Rule and subject to
the MOR schedule are 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), which applies to newly constructed or
substantially rehabilitated housing financed by state agencies; the HAP
program for New 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 HAP for
the Disposition of HUD-Owned 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 HUD-
held mortgages on rental housing projects; and the Section 202/8
Program (24 CFR part 891, subpart E), which provides assistance for
housing projects serving the elderly or households headed by persons
with disabilities.
HUD's risk-based asset management model incorporates both
qualitative and quantitative elements into a comprehensive property-
level rating. This rating translates to a classification (hereafter
referred to as a ``risk-based classification'') of ``Troubled,''
``Potentially Troubled,'' or ``Not Troubled.''
Elsewhere in this issue of the Federal Register, HUD publishes a
Final Rule that adopts with no substantive changes the portions of the
Proposed Rule that provide for consistency across the seven above-
described programs with respect to the frequency of MORs. As required
pursuant to this Final Rule, HUD sets forth by publication of this
Federal Register Notice an MOR schedule for
[[Page 38172]]
projects assisted under such programs, taking into account public
comments received on the proposed MOR schedule.
II. Proposed MOR Schedule
The proposed schedule was as follows:
(1) A project with a ``Below Average'' or ``Unsatisfactory'' score
on the previous MOR and a risk classification of ``Troubled,''
``Potentially Troubled,'' or ``Not Troubled'' would have an MOR within
12 months of the previous MOR conducted at the project;
(2) A project with a ``Satisfactory'' score on the previous MOR and
a risk classification of ``Troubled'' or ``Potentially Troubled'' would
have an MOR within 24 months of the previous MOR conducted at the
project. Additionally, a project with an ``Above Average'' or
``Superior'' score on the previous MOR and a risk classification of
``Troubled'' would have an MOR within 24 months of the previous MOR
conducted at the project; and
(3) A project with a ``Satisfactory'' score on the previous MOR and
a risk classification of ``Not Troubled'' would have an MOR within 36
months of the previous MOR conducted at the project. Additionally, a
project with an ``Above Average'' or ``Superior'' score on the previous
MOR and a risk classification of ``Potentially Troubled'' or ``Not
Troubled'' would have an MOR within 36 months of the previous MOR
conducted at the project.
HUD received 23 public comments on the Proposed Rule and 16 public
comments on the proposed MOR schedule from management associations,
public housing authorities, homebuilders' associations, residents of
public housing, and other interested parties. Given the overlap between
the public comments received on the Proposed Rule and the proposed MOR
schedule, HUD provides a detailed discussion of all significant
comments in the preamble to the Final Rule.
III. Final Notice
HUD has made changes to the final MOR schedule based on comments on
the proposed MOR schedule. As of the effective date of this Notice, the
MOR schedule for projects assisted under the seven project-based
Section 8 programs administered by the Office of Multifamily Housing
Programs is as follows:
(1) A project must have an MOR within 12 months of its previous MOR
if--
(a) it has a risk classification of ``Troubled'' or ``Potentially
Troubled'' without regard to its MOR score, or;
(b) it has a risk classification of ``Not Troubled'' and an MOR
score of ``Unsatisfactory'' or ``Below Average.''
(2) A project must have an MOR within 24 months of its previous MOR
if it has a risk classification of ``Not Troubled'' and an MOR score of
``Satisfactory.''
(3) A project must have an MOR within 36 months of its previous MOR
if it has a risk classification of ``Not Troubled'' and a previous MOR
score of ``Above Average'' or ``Superior.''
The schedule is summarized in the table below.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Previous MOR Unsatisfactory Below average Satisfactory Above average Superior
--------------------------------------------------------------------------------------------------------------------------------------------------------
Next MOR must be conducted within . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
Risk Classification: Troubled...... 12 months of previous 12 months of previous 12 months of previous 12 months of previous 12 months of previous
MOR. MOR. MOR. MOR. MOR.
Risk Classification: Potentially 12 months of previous 12 months of previous 12 months of previous 12 months of previous 12 months of previous
Troubled. MOR. MOR. MOR. MOR. MOR.
Risk Classification: Not Troubled.. 12 months of previous 12 months of previous 24 months of previous 36 months of previous 36 months of previous
MOR. MOR. MOR. MOR. MOR.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Either HUD or the respective contract administrator (CA) may
conduct an MOR outside of this schedule as warranted based on project-
level circumstances (for example, if a project's risk profile has
worsened; note HUD requires an MOR within 6 months of a change in
ownership or management irrespective of a project's performance-based
MOR schedule). All scheduling of MORs is subject to the availability of
appropriations for CA services, constraints on HUD staffing, the status
of government operations, and whether a disaster declaration is in
effect for the area in which a property is located. For any property
with a previous MOR score of ``Satisfactory'' or better, HUD may opt to
defer scheduling for up to 90 days from the date established pursuant
to this schedule in order to balance workload. Deferred scheduling may
be approved by CAs or vendors under HAP support services contracts only
with prior approval from HUD.
HUD suggests that owners provide copies of completed MORs to tenant
organizations upon request, after redacting any personally identifiable
information.
IV. Findings and Certifications
Paperwork Reduction Act
The information collection requirements for this Notice 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 2502-0178. The Department is amending the collection
requirement to reflect this Notice's reduced burden. 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.
Environmental Review
This Notice provides operating instructions and procedures in
connection with activities under provisions of Section 8 project-based
assistance program regulations that have been the subject of a required
environmental review. Accordingly, under 24 CFR 50.19(c)(4), this
Notice is categorically excluded from environmental review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Julia R. Gordon,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2022-13425 Filed 6-24-22; 8:45 am]
BILLING CODE 4210-67-P
</pre></body>
</html>Indexed from Federal Register on June 27, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.