Rule2022-14523
Single Family Housing Section 504 Repair Pilot
Primary source
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Published
July 8, 2022
Effective
July 8, 2022
Issuing agencies
Agriculture DepartmentRural Housing Service
Abstract
The Rural Housing Service (RHS or the Agency), a Rural Development agency of the United States Department of Agriculture (USDA), is issuing this document to waive two regulatory requirements for the Section 504 Direct Single Family Housing Loans and Grants (DSFHLG) pilot program. The Agency's intention is to evaluate the existing regulations and remove regulatory barriers to assist eligible applicants with improved ease of use for very low-income homeowners seeking to repair or rehabilitate their homes. This document briefly discusses the new waivers and provides contact information for additional details about the pilot program.
Full Text
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<title>Federal Register, Volume 87 Issue 130 (Friday, July 8, 2022)</title>
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[Federal Register Volume 87, Number 130 (Friday, July 8, 2022)]
[Rules and Regulations]
[Pages 40709-40710]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-14523]
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Rules and Regulations
Federal Register
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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. 130 / Friday, July 8, 2022 / Rules
and Regulations
[[Page 40709]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3550
[Docket No. RHS-22-SFH-0016]
Single Family Housing Section 504 Repair Pilot
AGENCY: Rural Housing Service, USDA.
ACTION: Notification of waivers.
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SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), is issuing this document to waive two regulatory requirements
for the Section 504 Direct Single Family Housing Loans and Grants
(DSFHLG) pilot program. The Agency's intention is to evaluate the
existing regulations and remove regulatory barriers to assist eligible
applicants with improved ease of use for very low-income homeowners
seeking to repair or rehabilitate their homes. This document briefly
discusses the new waivers and provides contact information for
additional details about the pilot program.
DATES: The effective date of the two regulatory waivers is July 8,
2022. The duration of the pilot program is anticipated to continue
until July 8, 2024, at which time the RHS may extend the pilot program
(with or without modifications) or terminate it depending on the
workload and resources needed to administer the program, feedback from
the public, and the effectiveness of the program. If the pilot program
is extended or terminated, the RHS will notify the public.
FOR FURTHER INFORMATION CONTACT: Anthony Williams, Management and
Program Analyst, Special Programs, Single Family Housing Direct Loan
Division, Rural Development, U.S. Department of Agriculture, Email:
<a href="/cdn-cgi/l/email-protection#1879766c7077766174366f7174747179756b586d6b7c79367f776e"><span class="__cf_email__" data-cfemail="a5c4cbd1cdcacbdcc98bd2ccc9c9ccc4c8d6e5d0d6c1c48bc2cad3">[email protected]</span></a>; Phone: (202) 720-9649.
SUPPLEMENTARY INFORMATION:
Authority
Title V, Section 504 of the Housing Act of 1949, as amended; 42
U.S.C. 1474.
Background
The RHS offers a variety of programs to build or improve housing
and essential community facilities in rural areas. The Agency offer
loans, grants, and loan guarantees for single- and multifamily housing,
child-care centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, housing
for farm laborers, and much more. RHS also provides technical
assistance loans and grants in partnership with non-profit
organizations, Indian tribes, state and Federal government agencies,
and local communities.
The RHS Single Family Housing Direct Loans and Grants Program
(SFHDLGP) Division implements the Section 504 loan/grant program under
7 CFR part 3550 with the objective to assist very low-income owner
occupants of modest single-family homes in rural areas repair or
rehabilitate their homes. Loan funds are available for repairs to
improve or modernize a home, make it safer or more sanitary, or remove
health and safety hazards. The eligibility requirements, as described
in 7 CFR 3550.103, states that homeowner must be unable to obtain
affordable credit elsewhere at reasonable terms and conditions, but
must demonstrate a reasonable ability to repay the Section 504 loan.
For homeowners 62 years old and over who cannot obtain a loan, grant
funds are available to correct health or safety hazards, or remodel
dwellings to make them accessible to a household member with a
disability.
RHS may authorize limited demonstration programs to test new
approaches to offering housing under the statutory authority granted to
the Secretary, as set forth in 7 CFR 3550.7. Such demonstration
programs may not be consistent with some of the provisions contained in
this part. However, any program requirements that are statutory will
remain in effect.
In 2019, the Agency initiated the Section 504 pilot program to
evaluate existing regulations and remove regulatory barriers to assist
very low-income homeowners seeking to repair or rehabilitate their
homes. The pilot program has been successful in creating additional
opportunities and greater accessibility for eligible applicants. All
but two of the waived regulatory requirements were included in the
Direct Singe Family Loans and Grants Programs final rule (87 FR 6761),
which became effective on March 9, 2022.
Continuation of Section 504 Pilot Regulatory Waivers
The Agency is continuing the Section 504 Pilot Program with the two
waivers that were not included in the final rule (87 FR 6761) published
on February 7, 2021. The Agency plans to further evaluate and test
these waivers with the intention that, if successful, it will codify
them into 7 CFR part 3550 to be applied program wide.
The first waiver is that pilot applicants are not subject to the
site requirement outlined in 7 CFR 3550.105(b) which states that the
site must not be large enough to be subdivided into more than one site
under existing local zoning ordinances. While pilot applicants can have
subdividable sites, their homes must meet the other property standards
found in 7 CFR 3550.106(a).
The second waiver is that pilot applicants are not subject to the
same threshold outlined in 7 CFR 3550.111 which requires an appraisal
when the Section 504 debt to be secured exceeds $15,000 or whenever the
Agency determines that an appraisal is necessary to establish the
adequacy of the security. A ``subject to repairs'' appraisal and
appraisal fee will be required when the assessed valuation by local
authorities does not support a fully secured interest by the Agency, or
when the sum of all secured (RD or non-RD) indebtedness including the
proposed repair loan, exceeds $25,000.
Eligibility Requirements
Eligible participants in the Section 504 program must abide by the
statutory requriements set forth in 7 CFR part 3550. The following
twenty-three (23) States and U.S. Territories are selected to provide
wide geographic and historic production variation for the pilot:
California, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan,
Mississippi, New Jersey, New Mexico, New York, North Carolina, Ohio,
Oregon, Pennsylvania, Puerto Rico, South Carolina, Texas, Tennessee,
[[Page 40710]]
Virginia, Washington, and West Virginia. If an existing borrower in a
pilot state qualifies for a subsequent loan or grant, the pilot
conditions can apply to the subsequent request as appropriate. Non-
pilot states may request case-by-case administrative waivers (if
justified) that mirror the allowances in the pilot.
Paperwork Reduction Act
The regulatory waivers for this pilot contains no new reporting or
recordkeeping burdens under Office of Management and Budget (OMB)
control number 0575-0179 that would require approval under the
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
Non-Discrimination Statement
In accordance with Federal civil rights laws and USDA civil rights
regulations and policies, the USDA, its Mission Areas, agencies, staff
offices, employees, and institutions participating in or administering
USDA programs are prohibited from discriminating based on race, color,
national origin, religion, sex, gender identity (including gender
expression), sexual orientation, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, or staff office; the USDA TARGET
Center at (202) 720-2600 (voice and TTY); or the Federal Relay Service
at (800) 877-8339.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at <a href="https://www.ascr.usda.gov/complaint_filing_cust.html">https://www.ascr.usda.gov/complaint_filing_cust.html</a>, from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain
the complainant's name, address, telephone number, and a written
description of the alleged discriminatory action in sufficient detail
to inform the Assistant Secretary for Civil Rights (ASCR) about the
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
(2) Fax: (833) 256-1665 or (202) 690-7442; or
(3) Email: <a href="/cdn-cgi/l/email-protection#7a2a08151d081b175433140e1b111f3a0f091e1b541d150c"><span class="__cf_email__" data-cfemail="c090b2afa7b2a1adee89aeb4a1aba580b5b3a4a1eea7afb6">[email protected]</span></a>.
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2022-14523 Filed 7-7-22; 8:45 am]
BILLING CODE 3410-XV-P
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