Proposed Rule2022-28020
Implementing Rental Housing Assistance for the Native Hawaiian Housing Block Grant Program
Primary source
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Published
January 4, 2023
Issuing agencies
Housing and Urban Development Department
Abstract
Through this notice of proposed rulemaking, the Department of Housing and Urban Development (HUD) is proposing to amend its regulations covering rental housing assistance for the Native Hawaiian Housing Block Grant (NHHBG) program, consistent with the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA). HUD proposes to clarify and improve consistency with NAHASDA's statutory requirements and HUD's Indian Housing Block Grant program regulations. This proposed rule would also help make affordable housing opportunities, in the form of NHHBG-assisted rental housing, more available to eligible Native Hawaiian families.
Full Text
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<title>Federal Register, Volume 88 Issue 2 (Wednesday, January 4, 2023)</title>
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[Federal Register Volume 88, Number 2 (Wednesday, January 4, 2023)]
[Proposed Rules]
[Pages 328-337]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-28020]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1006
[Docket No. FR-6273-P-01]
RIN 2577-AD13
Implementing Rental Housing Assistance for the Native Hawaiian
Housing Block Grant Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Proposed rule.
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SUMMARY: Through this notice of proposed rulemaking, the Department of
Housing and Urban Development (HUD) is proposing to amend its
regulations covering rental housing assistance for the Native Hawaiian
Housing Block Grant (NHHBG) program, consistent with the Native
American Housing Assistance and Self-Determination Act of 1996
(NAHASDA). HUD proposes to clarify and improve consistency with
NAHASDA's statutory requirements and HUD's Indian Housing Block Grant
program regulations. This proposed rule would also help make affordable
housing opportunities, in the form of NHHBG-assisted rental housing,
more available to eligible Native Hawaiian families.
DATES: Comment Due Date: March 6, 2023.
ADDRESSES: There are two methods for submitting public comments. All
submissions must refer to the above docket number and title.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW, Room 10276,
Washington, DC 20410-0500.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
<a href="http://www.regulations.gov">www.regulations.gov</a>. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make them immediately available to
the public. Comments submitted electronically through the
<a href="http://www.regulations.gov">www.regulations.gov</a> website can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments must
be submitted through one of the two methods specified above. Again,
all submissions must refer to the docket number and title of the
proposed rule.
No Facsimile Comments. Facsimile (fax) comments are not acceptable.
Public Inspection of Public Comments. HUD will make all properly
submitted comments and communications available for public inspection
and copying between 8 a.m. and 5 p.m. weekdays at the above address.
Due to security measures at the HUD Headquarters building, you must
schedule an appointment in advance to review the public comments by
calling the Regulations Division at 202-708-3055 (this is not a toll-
free number). HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech and communication disabilities. To learn more about how to
make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>. Copies of all
comments submitted are available for inspection and downloading at
<a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Claudine Allen, Lead Native Hawaiian
Program Specialist, Office of Native American Programs, HUD Honolulu
Field Office, 1003 Bishop Street, Suite 2100, Honolulu, HI 96813;
telephone number 808-457-4674 (this is not a toll-free number). HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech and
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
The Hawaiian Homelands Homeownership Act of 2000 (HHH Act) was
enacted as both title II of the Omnibus Indian Advancement Act (Pub. L.
106-568, 114 Stat. 2868, approved December 27, 2000) and subtitle B of
title V of the American Homeownership and Economic Opportunity Act of
2000 (Pub. L. 106-569, 114 Stat. 2944, approved December 27, 2000).
Section 513 of the HHH Act, Public Law 106-569, amended the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) (NAHASDA) by adding to it a new ``Title VIII--
Housing Assistance for Native Hawaiians''. Title VIII established the
Native Hawaiian
[[Page 329]]
Housing Block Grant (NHHBG) program to provide block grant assistance
for affordable housing for eligible Native Hawaiians,\1\ and section
810 provides statutory authority for NHHBG rental housing assistance.
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\1\ Section 513 of the HHH Act adds sections 801 through 824,
which authorize this NHHBG program, as title VIII of NAHASDA.
Although NAHASDA may be referenced throughout this proposed rule,
NHHBG serves Native Hawaiians specifically.
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In accordance with title VIII of NAHASDA, the NHHBG program must
primarily benefit low-income Native Hawaiian families who are eligible
to reside on the Hawaiian Home Lands. Native Hawaiian families eligible
to reside on the Hawaiian Home Lands experience more significant
housing challenges compared to Native Hawaiian households overall,
including other Hawaii residents and Native Hawaiians already residing
on the Hawaiian Home Lands.
On June 13, 2002, HUD published an interim rule (``interim rule'')
adding a new 24 CFR part 1006 to implement the block grant assistance
program for Native Hawaiians. 67 FR 40773. HUD modeled the NHHBG
regulations after the Indian Housing Block Grant (IHBG) regulations
implemented at 24 CFR part 1000 because the NHHBG and IHBG programs are
authorized under the same statute and have overlapping requirements
that apply to both programs.\2\
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\2\ 67 FR 40773; see Native American Housing Assistance and
Self-Determination Act of 1996 [hereinafter NAHASDA] sections 810-
811, 25 U.S.C. 4229-30. There are also differences between the
statutory authorities governing the IHBG and NHHBG programs. In
2008, the Native American Housing Assistance and Self-Determination
Reauthorization Act of 2008 (Pub. L. 110-411) (NAHASDA
Reauthorization Act), made several changes to, inter alia, statutory
requirements governing HUD's IHBG program, and implemented statutory
changes to NAHASDA made by several laws enacted between 1998 and
2005. See 77 FR 71513. The NAHASDA Reauthorization Act did not amend
statutory provisions governing block grant assistance for Native
Hawaiians. See Native American Housing Assistance and Self-
Determination Reauthorization Act of 2008, Public Law 110-411, 122
Stat. 4319-35.
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The interim rule established program requirements pertaining to
homeownership and rental assistance authorized under section 810 of
title VIII of NAHASDA.\3\ The new 24 CFR part 1006 as implemented by
the interim rule closely followed the statute with some differences for
clarification. Part 1006 established requirements such as:
applicability, definitions, and waivers; what the Department of
Hawaiian Home Lands (DHHL) must include in its housing plan that it
must submit to HUD for each Federal fiscal year grant; eligible program
activities, including development, housing services, housing management
services, crime prevention and safety activities and model activities;
requirements related to income eligibility and compliance with
applicable Federal laws; and reporting, performance reviews, and how to
address and remedy noncompliance. HUD has not comprehensively reviewed
or amended 24 CFR part 1006 since this interim rulemaking.
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\3\ NAHASDA section 810(a), 25 U.S.C. 4229(a).
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Prior to fiscal year 2020, the DHHL, the sole recipient of the
NHHBG, used NHHBG funds primarily for homeownership housing assistance.
In 2019, Hawaii's governor approved administrative rules allowing the
DHHL to expand residential lease offerings to include rental
housing.\4\ HUD received feedback from the DHHL about the DHHL's rental
housing projects currently in development. HUD then reviewed its
regulations and determined they do not adequately explain how NHHBG
funds may be used for rental assistance and could be revised to provide
additional details to better support a fully successful rental housing
program administered by the DHHL. This review has prompted HUD's
proposal to amend NHHBG program regulations in this notice of proposed
rulemaking.
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\4\ Dep't of Haw. Home Lands, Adoption of Chapter 10-7 Hawaii
Administrative Rules (2019), <a href="https://dhhl.hawaii.gov/wp-content/uploads/2020/02/HAR-Ch-10-7_Eff-Aug-17-2019-1.pdf">https://dhhl.hawaii.gov/wp-content/uploads/2020/02/HAR-Ch-10-7_Eff-Aug-17-2019-1.pdf</a>.
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Two of HUD's proposals require further background discussion.
First, NAHASDA requires HUD to establish certain program requirements
for both IHBG and NHHBG. On July 26, 2007, HUD amended the IHBG
regulations at 24 CFR part 1000 to reflect these requirements. 72 FR
41211. Pursuant to authority in section 404(c) of NAHASDA, HUD revised
Sec. 1000.514 to require IHBG recipients to submit Annual Performance
Reports within 90 days, instead of 60 days, of the end of their program
year. HUD did not make a corresponding change to the NHHBG provision in
Sec. 1006.410, Performance reports.
Second, HUD has identified one provision, Sec. 1006.101, Housing
plan requirements, where HUD has flexibility to implement regulatory
requirements different than those in the IHBG framework due to
differences in underlying statutory language for the NHHBG and IHBG
programs. Under section 803 of NAHASDA, 25 U.S.C. 4223, the DHHL must
submit a housing plan ``each fiscal year;'' and no deadline is
specified. Section 1006.101 currently requires submission of a housing
plan ``for each Federal Fiscal Year grant.'' The Native American
Housing Assistance and Self-Determination Reauthorization Act of 2008
(Pub. L. 110-411) (NAHASDA Reauthorization Act) amended, inter alia,
statutory requirements for submission of housing plans under the IHBG
program; the amended statute requires submission no later than 75 days
before the beginning of a program year.\5\ However, the NAHASDA
Reauthorization Act did not amend statutory provisions governing the
NHHBG program.\6\ Accordingly, HUD published a final rule in the
Federal Register on December 3, 2012, 77 FR 71513, that revised IHBG
program regulations at 24 CFR part 1000 to conform to new statutory
requirements, including 24 CFR 1000.214 governing the deadline for
submission of Indian housing plans under the IHBG program. HUD did not
amend any NHHBG regulations in that final rule.
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\5\ NAHASDA Reauthorization Act section 102 (amending section
102 of NAHASDA, 25 U.S.C. 4112).
\6\ See generally NAHASDA Reauthorization Act of 2008, Public
Law 110-411, 122 Stat. 4319-35.
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II. This Proposed Rule
Given the need to clarify the rental assistance provisions in HUD's
current NHHBG regulations and because HUD has not comprehensively
reviewed or amended 24 CFR part 1006 in over 20 years, HUD is proposing
to amend its regulations to clarify how the funding recipient may use
NHHBG program funds for rental housing assistance, as authorized by
title VIII of NAHASDA. These changes should relieve burden on the
funding recipient in implementing rental assistance, directly help low-
income Native Hawaiian families who need rental assistance, and clarify
the tools available for HUD to monitor and enforce program
requirements. This proposed rule would help make affordable housing
opportunities, in the form of NHHBG-assisted rental housing, more
available to Native Hawaiian families who are not ready for or do not
desire homeownership housing, and who otherwise may be experiencing
overcrowded conditions, lack of affordability, and/or homelessness.
HUD is proposing in this rulemaking to amend 24 CFR part 1006 to
ensure compliance with the NHHBG program's statutory requirements;
promote consistency between NHHBG and IHBG program regulations where
the programs' statutory requirements overlap or where inconsistencies
exist between the NHHBG and IHBG regulatory frameworks; and add details
that would improve the NHHBG
[[Page 330]]
regulatory framework governing rental assistance.
Section 1006.10, Definitions
HUD is proposing to add definitions in Sec. 1006.10 for each of
the reasons identified in the most immediately preceding paragraph.
HUD is proposing to add a definition for ``Annual income'' that
matches the definition in Sec. 1000.10. This term is currently used in
part 1006 but does not have a specific definition. The proposed
definition would allow for discretion by the Department of Hawaiian
Home Lands to use the Section 8 programs definition in 24 CFR part 5,
the definition of income as used by the U.S. Census Bureau, or adjusted
gross income as defined for purposes of reporting under Internal
Revenue Service (IRS) Form 1040 series for individual Federal annual
income tax purposes.
HUD is proposing to add definitions for ``Homeless family'' and
``Person with a Disability''. These terms are currently used in part
1006 but do not have specific definitions. HUD's proposed definition
for ``Person with a Disability'' is consistent with the definition of
person with a disability in HUD's regulations for section 504 of the
Rehabilitation Act of 1973 in 24 CFR 8.3, as amended by the Americans
with Disabilities Act (ADA) Amendments Act of 2008, see 42 U.S.C.
12102(3)(B). The provisions and rules of construction in 28 CFR 35.108
are necessary when applying the definition of ``Person with a
Disability'' in this proposed rule.
HUD is proposing to add a definition for ``Income'' that clarifies
this term has the meaning provided in the definition of ``Income'' in
section 4(9) of NAHASDA. The statute defines ``Income'' as income from
all sources of each member of the household, as determined according to
criteria determined by HUD, and provides for three categories of
amounts that may not be considered income: amounts not actually
received by the family, certain amounts received under the Social
Security Act, and amounts received for certain disability compensation
or as dependency and indemnity compensation received by veterans or
their surviving family members.
HUD is proposing to add a definition for ``NAHASDA'' that provides
the full title, Native American Housing Assistance and Self-
Determination Act of 1996, and United States Code citation, 25 U.S.C.
4101 et seq.
HUD is proposing to add a definition for ``Project-based rental
assistance'' since HUD is proposing to add project-based rental
assistance requirements in new Sec. 1006.227, Tenant-based or project-
based rental assistance. The definition would provide that project-
based rental assistance means rental assistance provided through a
contract with the owner of an existing structure, where the owner
agrees to lease the subsidized units to program participants. The
definition would also provide that program participants would not
retain rental assistance if they move from the project.
Section 1006.101, Housing Plan Requirements
In this proposed rule, HUD is proposing to amend Sec. 1006.101 by
revising the introductory text of Sec. 1006.101 to clarify that the
DHHL must submit a housing plan before the start of its fiscal year.
This is consistent with NHHBG statutory requirements and provides a
clear deadline.
HUD is also proposing to amend Sec. 1006.101 by making technical
revisions to the introductory text to clarify that the housing plan has
two components, a five-year plan and a one-year plan. HUD also proposes
clarifying amendments to paragraphs (c) and (d). HUD is proposing to
revise paragraph (c)(1) to clarify that the five-year plan may be
changed as necessary to update it after its initial submission, but the
information for the one-year plan must be submitted annually. HUD
proposes revising paragraph (c)(2) to clarify that complete plans must
include a new five-year plan. Paragraph (d) currently requires that,
before undertaking new activities not addressed in a current one-year
housing plan, the DHHL must submit to HUD for review any amendment to
the plan. HUD proposes to revise this paragraph to clarify that the
current one-year plan must have been reviewed by HUD and determined to
comply with section 803 of NAHASDA.
Section 1006.201, Eligible Affordable Housing Activities
HUD is proposing to amend Sec. 1006.201 by adding language that
clarifies that eligible affordable housing activities may include those
conducted in accordance with subpart D of part 1006 and that develop,
operate, maintain, or support housing for rental or homeownership, or
provide services with respect to affordable housing through the
activities described in subpart C of part 1006. This added language
improves consistency between Sec. 1006.201 and statutory language.\7\
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\7\ 25 U.S.C. 4229(a).
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Section 1006.210, Housing Services
HUD is proposing to amend Sec. 1006.210 by removing existing
paragraph (g) and redesignating existing paragraph (h) as new paragraph
(g). HUD proposes to move the existing language in Sec. 1006.210(g) to
a new section, Sec. 1006.227, Tenant-based or project-based rental
assistance, paragraph (a)--HUD is adding new Sec. 1006.227 that
provides that NHHBG funds may be used for the provision of tenant-based
(and project-based) rental assistance, and that provides further
details about how funds may be used for such purposes. Existing Sec.
1006.210(g) speaks to these details, so HUD proposes moving this
language to the new section to eliminate redundancy and to efficiently
organize HUD's regulations on the use of funds for tenant-based rental
assistance.
Section 1006.227, Tenant-Based or Project-Based Rental Assistance
HUD is proposing to add Sec. 1006.227 that describes in detail how
NHHBG funds may be used for tenant-based rental assistance and project-
based rental assistance. HUD proposes to model this new section off
Sec. 1000.103 to maintain consistency between IHBG and NHHBG
regulations. However, HUD proposes slightly different language from
Sec. 1000.103 to conform to NHHBG statutory requirements. Paragraph
(a) of Sec. 1006.227 would explicitly authorize use of NHHBG funds for
tenant-based rental assistance, which may include security deposits and
first month's rent, and project-based rental assistance. Paragraph
(a)(1) of this section would clarify that rental assistance must comply
with the requirements of part 1006 and be provided to eligible
families. In paragraph (a)(2), HUD proposes to incorporate statutory
flexibility providing that DHHL ``may'' use NHHBG funds for rental
assistance for eligible Native Hawaiian families ``both on and off the
Hawaiian Home Lands,'' \8\ when appropriations acts enacted by Congress
authorize such use by the DHHL.
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\8\ Public Law 115-141; Public Law 116-6; Public Law 116-94;
Public Law 116-260; Public Law 117-103 (emphasis added).
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Section 1006.301, Eligible Families
HUD is proposing to amend Sec. 1006.301 by adding new paragraphs
(b)(3) and (b)(3)(i) through (iii) to implement limitations on uses of
NHHBG assistance for non-low-income families pursuant to section
809(a)(2)(B)(ii) of NAHASDA. HUD proposes to implement a 10-percent
limitation on the use, if any, of the
[[Page 331]]
amount specified in a housing plan for families whose income is 81 to
100 percent of the median income; specify when the recipient, the DHHL,
must seek HUD's approval; and set out related requirements. New
paragraph (b)(3)(iii) would state that the limitations in the preceding
paragraphs (b)(3)(i) and (ii) do not apply to other families who are
non-low income that the DHHL has determined to be essential under Sec.
1006.301(c).
HUD is proposing to further amend Sec. 1006.301 by revising
paragraph (b)(2) to add a sentence at the end of the paragraph
clarifying that the DHHL must obtain HUD approval by submitting
proposals in its housing plan, by amendment of the housing plan, or by
special request to HUD at any time, where the DHHL would provide
homeownership assistance to Native Hawaiian families who are not low-
income under Sec. 1006.301(b)(1). This revision would improve
consistency with the IHBG program regulation at Sec. 1000.108.
HUD is also proposing to amend Sec. 1006.301 by revising language
in paragraph (b)(1) to clarify that the DHHL may provide homeownership
assistance in conjunction with loan guarantee activities. Section
1006.301(b)(1) currently states the DHHL may provide homeownership
assistance through loan guarantee activities, but such assistance is
not provided through loan guarantee activities alone.
Finally, HUD proposes to revise paragraph (b)(2) to make technical
changes, such as the addition of a cross reference, that conform to
HUD's proposed addition of new paragraph (b)(3) and subordinate
paragraphs (b)(3)(i) through (iii).
Section 1006.305, Low-Income Requirement and Income Targeting
HUD is proposing to amend Sec. 1006.305 by revising existing
paragraph (a) and existing paragraphs (a)(1) and (2) and adding new
paragraphs (a)(3) through (5). HUD proposes these changes to reflect
the typical timeline for families entering programs offered by the
DHHL, the typical timeline for constructing housing, and the
possibility of fluctuating incomes over time.
HUD's proposed revision to paragraph (a) would provide that housing
qualifies as affordable housing for purposes of NAHASDA and part 1006
provided that the family occupying the housing unit is low-income at
the times described in paragraphs (a)(1) through (5).
HUD proposes removing language in paragraph (a)(1) referring to
occupancy by a low-income family to avoid redundancy with new language
proposed in paragraph (a).
HUD proposes removing the last clause of paragraph (a)(2), ``or is
an owner-occupied unit in which the family is low-income at the time it
receives NHHBG assistance'' and adding it as a new paragraph (a)(3).
HUD also proposes to add a sentence to the end of paragraph (a)(2)
providing that when the DHHL enters into a loan contract with the
family for assistance to purchase or construct a homeownership unit,
the time of purchase means the time that loan contract is executed.
HUD proposes adding paragraphs (a)(3) through (5) to further
clarify when housing qualifies as affordable housing: under paragraph
(a)(3), in the case of owner-occupied housing units, at the time the
family receives NHHBG assistance; under paragraph (a)(4), in the case
of a lease-purchase agreement for existing housing or for housing to be
constructed, at the time the lease-purchase agreement is signed; and
under paragraph (a)(5), in the case of emergency assistance to prevent
homelessness or foreclosure, at the time the family receives NHHBG
assistance.
Section 1006.306, Income Verification for Receipt of NHHBG Assistance
HUD is proposing to add Sec. 1006.306 to incorporate for the NHHBG
program requirements for initial determination of income eligibility
and periodic reverification. These requirements are already implemented
for the IHBG program in Sec. 1000.128, and HUD's proposed addition of
these requirements in Sec. 1006.306 would ensure compliance with
NAHASDA and improve consistency between IHBG and NHHBG program
regulations.
Section 1006.307, Non-Low-Income Families
HUD is proposing to add Sec. 1006.307 to clarify that a family
that was low-income at the times described in Sec. 1006.305 but
subsequently becomes a non-low-income family may continue to
participate in the program in accordance with the DHHL's admission and
occupancy policies. HUD proposes to model this new section off the IHBG
program regulation in Sec. 1000.110(a) to improve consistency between
NHHBG and IHBG program regulations. Section 1006.307 would exempt these
families from the limitations HUD proposes to add at Sec.
1006.301(b)(3)(i), and would permit the DHHL to apply the additional
requirements HUD proposes to add in Sec. 1006.301(b)(3)(ii) based on
the DHHL's policies.
Section 1006.310, Rent and Lease-Purchase Limitations
HUD is proposing to amend Sec. 1006.310 by adding details about
maximum and minimum rents limitations, flat or income-adjusted rent,
and utilities, to maintain consistency with IHBG program regulations at
Sec. Sec. 1000.124 and 1000.126. HUD proposes to move the last
sentence in Sec. 1006.310(a), which states the maximum monthly rent
for a low-income family may not exceed 30 percent of the family's
monthly adjusted income, to new paragraph (a)(1). New paragraph (a)(1)
would further provide that the DHHL may compute payments based on any
lesser percentage of the family's adjusted income, and while the Act
does not set minimum tenant rent or homebuyer payments, the DHHL may do
so. HUD proposes to add paragraph (a)(2) about flat or income-adjusted
rent. Paragraph (a)(2) would provide that flat rent means the tenant's
rent payment is set at a specific dollar amount or specific percent of
market rent, income-adjusted rent means the tenant's rent payment
varies based on the tenant's income (i.e., 30% of monthly adjusted
income), and the DHHL may charge flat or income-adjusted rents,
provided the rental or homebuyer payment of the low-income family does
not exceed 30 percent of the family's adjusted income. New paragraph
(a)(3) would permit the DHHL to include utilities as part of rent or
homebuyer payments if the DHHL has defined rent or homebuyer payments
as such in its written policies.
Section 1006.375, Other Federal Requirements
HUD is proposing to amend Sec. 1006.375 by removing paragraph (c),
Displacement and relocation, and redesignating existing paragraphs (d)
and (e) as paragraphs (c) and (d). HUD is proposing to add paragraph
(c)'s language and requirements with minor technical changes to new
Sec. 1006.377. HUD is further proposing to amend Sec. 1006.375 by
adding new paragraph (e), Section 3, to clarify that requirements under
section 3 of the Housing and Urban Development Act of 1968 and 24 CFR
part 75 apply to the NHHBG program; and by adding new paragraph (f),
Debarment and suspension, to clarify that the nonprocurement debarment
and suspension requirements at 2 CFR part 2424 apply to the NHHBG
program.
[[Page 332]]
Section 1006.377, Other Federal Requirements: Displacement, Relocation,
and Acquisition
HUD is proposing to add Sec. 1006.377 which would contain only the
existing displacement and relocation requirements in current Sec.
1006.375(c) with minor technical changes to cross references. HUD
proposes this change for structural reorganization and readability.
Existing Sec. 1006.375(c) is lengthy and includes definitions relevant
only to displacement and relocation requirements. Additionally, HUD is
proposing to amend new Sec. 1006.377(c) by adding sentences at the end
of paragraph (c) that describe civil rights requirements included in 24
CFR 576.408(c)(1): that a displaced person must be advised of his or
her rights under the Fair Housing Act (42 U.S.C. 3601 et seq.);
minority persons shall be given reasonable opportunities to relocate to
comparable and suitable decent, safe, and sanitary replacement
dwellings, not located in an area of minority concentration, that are
within their financial means; and, for a displaced person with a
disability, a unit will not be considered a comparable replacement
dwelling under the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA) unless it is free of
any barriers which would preclude reasonable ingress, egress, or use of
the dwelling by such displaced person in accordance with 49 CFR
24.2(a)(8)(vii) and the unit meets the requirements of section 504 of
the Rehabilitation Act (29 U.S.C. 794).
Section 1006.410, Performance Reports
HUD is proposing to amend Sec. 1006.410 by revising paragraph
(a)(2) to require the DHHL to submit a performance report within 90
days, instead of 60 days, of the end of the DHHL's fiscal year. HUD is
also proposing to add a new paragraph (a)(3) that states the DHHL may
request an extension and that HUD will provide a new date for
submission if HUD grants the extension. Both changes would improve
consistency between the IHBG requirements at Sec. 1000.514 and the
NHHBG requirements.
Technical Changes for Compliance With NAHASDA and Consistency With IHBG
HUD is proposing to make minor technical revisions to several
provisions to conform to statutory requirements and increase
consistency with IHBG regulations. These provisions and revisions are:
<bullet> In Sec. 1006.205, HUD is proposing to add language to
paragraph (a)(9) so that it conforms to language in section 202 of
NAHASDA and is more consistent with Sec. 1000.102.
<bullet> In Sec. 1006.215, HUD is proposing to add paragraph (f)
so it conforms to language in section 202 of NAHASDA and is more
consistent with Sec. 1000.102.
<bullet> In Sec. 1006.235, HUD is proposing to revise the title to
read Types of investments and forms of assistance, to maintain
consistency with section 812 of NAHASDA.
<bullet> In Sec. 1006.340, HUD is proposing to revise the cross
reference at the end of paragraph (a) to cite to statutory
requirements, ``Section 812(b) of NAHASDA'', instead of regulatory
requirements, ``Sec. 1006.235''.
<bullet> In Sec. Sec. 1006.230, 1006.350, 1006.410, and 1006.420,
HUD is also proposing minor technical amendments.
III. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the Order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. HUD is proposing changes to NHHBG program
requirements and regulations, such as clarifying that NHHBG funds can
be used for certain affordable housing activities including project-
based rental assistance, permitting rental assistance to be provided
off the Hawaiian Home Lands when Congress authorizes such use through
appropriations acts, and adding or changing requirements for low-income
and non-low-income families. However, there is no significant impact
because DHHL is the sole recipient of NHHBG funds. This proposed rule
was not subject to OMB review. This proposed rule is not a
``significant regulatory action'' as defined in section 3(f) of
Executive Order 12866, and is not an economically significant
regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.),
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
This rulemaking proposes to amend HUD regulations to implement rental
housing assistance for the NHHBG program, consistent with title VIII of
NAHASDA. These amendments impose no significant economic impact on a
substantial number of small entities, and there is only a singular
recipient of funding. Therefore, the undersigned certifies that this
proposed rule will not have a significant impact on a substantial
number of small entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments and the private sector. This proposed rule does not
impose any federal mandates on any state, local, or tribal governments
or the private sector within the meaning of the UMRA.
Environmental Review
A Finding of No Significant Impact with respect to the environment
has been 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(2)(C)). The Finding of No Significant Impact is
available for public inspection between the hours of 8 a.m. and 5 p.m.
weekdays in the Regulations Division, Office of General Counsel, Room
10276, Department of Housing and Urban Development, 451 Seventh Street
SW, Washington, DC 20410-0500. The FONSI is also available through the
Federal eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Order. This proposed rule does not have federalism
implications and would not impose
[[Page 333]]
substantial direct compliance costs on state and local governments nor
preempt state law within the meaning of the Order.
List of Subjects
24 CFR Part 1006
Community development block grants; Grant programs--housing and
community development; Grant programs--Indians; Hawaiian natives; Low
and moderate income housing; Reporting and recordkeeping requirements.
For the reasons described in the preamble, the Department of
Housing and Urban Development proposes to amend 24 CFR part 1006, as
set forth below:
PART 1006--NATIVE HAWAIIAN HOUSING BLOCK GRANT PROGRAM
0
1. Revise the authority citation for part 1006 to read as follows:
Authority: 12 U.S.C. 1701x, 1701x-1; 25 U.S.C. 4221 et seq.; 42
U.S.C. 3535(d), Pub. L. 115-141, Pub. L. 116-6, Pub. L. 116-94, Pub.
L. 116-260, Pub. L. 117-103.
0
2. In Sec. 1006.10, add in alphabetical order the definitions for
``Annual income,'' ``Homeless family,'' ``Income,'' ``NAHASDA,''
``Person with a Disability,'' and ``Project-based rental assistance,''
to read as follows:
Sec. 1006.10 Definitions.
* * * * *
Annual income has one or more of the following meanings, as
determined by the Department of Hawaiian Home Lands:
(1) ``Annual income'' as defined for HUD's Section 8 programs in 24
CFR part 5, subpart F (except when determining the income of a
homebuyer for an owner-occupied rehabilitation project, the value of
the homeowner's principal residence may be excluded from the
calculation of net family assets); or
(2) The definition of income as used by the U.S. Census Bureau.
This definition includes:
(i) Wages, salaries, tips, commissions, etc.;
(ii) Self-employment income;
(iii) Farm self-employment income;
(iv) Interest, dividends, net rental income, or income from estates
or trusts;
(v) Social security or railroad retirement;
(vi) Supplemental Security Income, Aid to Families with Dependent
Children, or other public assistance or public welfare programs;
(vii) Retirement, survivor, or disability pensions; and
(viii) Any other sources of income received regularly, including
Veterans' (VA) payments, unemployment compensation, and alimony; or
(3) Adjusted gross income as defined for purposes of reporting
under Internal Revenue Service (IRS) Form 1040 series for individual
Federal annual income tax purposes.
* * * * *
Homeless family means a family who is without safe, sanitary and
affordable housing even though it may have temporary shelter provided
by the community, or a family who is homeless as determined by the
DHHL.
* * * * *
Income means the term ``income'' as defined in section 4(9) of
NAHASDA.
* * * * *
NAHASDA means the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.).
* * * * *
Person with a Disability means a person who, as further explained
in 28 CFR 35.108--
(1) Has a physical or mental impairment which substantially limits
one or more major
life activities;
(2) Has a record of having such an impairment;
(3) Is regarded as having such an impairment;
(4) Has a disability as defined in section 223 of the Social
Security Act; or
(5) Has a developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act.
(6) For the purposes of this definition, the term ``Physical or
mental impairment'' means:
(i) Any physiological disorder or condition, cosmetic
disfigurement, or anatomical loss affecting one or more body systems,
such as: neurological, musculoskeletal, special sense organs,
respiratory (including speech organs), cardiovascular, reproductive,
digestive, genitourinary, immune, circulatory, hemic, lymphatic, skin,
and endocrine; or
(ii) Any mental or psychological disorder such as intellectual
disability, organic brain syndrome, emotional or mental illness, and
specific learning disability.
(7) For the purposes of this definition, the term ``physical or
mental impairment'' includes, but is not limited to contagious and
noncontagious diseases and conditions such as the following:
orthopedic, visual, speech, and hearing impairments, and cerebral
palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart
disease, diabetes, intellectual disability, emotional illness, dyslexia
and other specific learning disabilities, Attention Deficit
Hyperactivity Disorder, Human Immunodeficiency Virus infection (whether
symptomatic or asymptomatic), tuberculosis, drug addiction, and
alcoholism.
(8) For the purposes of this definition, the term ``major life
activities'' includes, but is not limited to:
(i) Caring for oneself, performing manual tasks, seeing, hearing,
eating, sleeping, walking, standing, sitting, reaching, lifting,
bending, speaking, breathing, learning, reading, concentrating,
thinking, writing, communicating, interacting with others, and working;
and
(ii) The operation of a major bodily function, such as the
functions of the immune system, special sense organs and skin, normal
cell growth, and digestive, genitourinary, bowel, bladder,
neurological, brain, respiratory, circulatory, cardiovascular,
endocrine, hemic, lymphatic, musculoskeletal, and reproductive systems.
The operation of a major bodily function includes the operation of an
individual organ within a body system.
* * * * *
Project-based rental assistance means rental assistance provided
through a contract with the owner of an existing structure, where the
owner agrees to lease the subsidized units to program participants.
Program participants will not retain the rental assistance if they move
from the project.
* * * * *
0
3. In Sec. 1006.101, revise the introductory text paragraph and
paragraphs (c) and (d) to read as follows.
Sec. 1006.101 Housing plans requirements.
The DHHL must submit a housing plan each year prior to the start of
its fiscal year. The housing plan has two components, a five-year plan
and a one-year plan, as follows:
* * * * *
(c) Updates to plan--(1) In general. Subject to paragraph (c)(2) of
this section, after the housing plan has been submitted for a fiscal
year, the DHHL may comply with the provisions of this section for any
succeeding fiscal year with respect to information included for the 5-
year period under paragraph (a) of this section by submitting only such
information regarding such changes as may be necessary to update the 5-
year period of the plan previously submitted. Information for the 1-
year period under paragraph (b) of this section must be submitted each
fiscal year.
[[Page 334]]
(2) Complete plans. The DHHL shall submit a complete plan that
includes a new five-year plan under this section not later than 4 years
after submitting an initial plan, and not less frequently than every 4
years thereafter.
(d) Amendments to plan. The DHHL must submit any amendment to the
one-year housing plan for HUD review before undertaking any new
activities that are not addressed in the current plan that was reviewed
by HUD and found to be in compliance with section 803 of NAHASDA and
this part. The amendment must include a description of the new activity
and a revised budget reflecting the changes. HUD will review the
revised plan and will notify DHHL within 30 days whether the amendment
complies with applicable requirements.
0
4. Revise Sec. 1006.201 to read as follows:
Sec. 1006.201 Eligible affordable housing activities.
Eligible affordable housing activities are development, housing
services, housing management services, crime prevention and safety
activities, and model activities. Affordable housing activities under
this part are activities conducted in accordance with subpart D of this
part to develop, operate, maintain, or support housing for rental or
homeownership; or provide services with respect to affordable housing
through the activities described in this subpart. NHHBG funds may only
be used for eligible activities that are consistent with the DHHL's
housing plan.
0
5. In Sec. 1006.205, revise paragraph (a)(9) to read as follows:
Sec. 1006.205 Development.
(a) * * *
(9) The development and rehabilitation of utilities, necessary
infrastructure, and utility services;
* * * * *
Sec. 1006.210 [Amended]
0
6. In Sec. 1006.210, remove paragraph (g) and redesignate paragraph
(h) as paragraph (g).
0
7. In Sec. 1006.215, revise paragraph (e), redesignate paragraph (f)
as paragraph (g), and add new paragraph (f) to read as follow:
Sec. 1006.215 Housing management services.
* * * * *
(e) Management of tenant-based rental assistance;
(f) The costs of operation and maintenance of units developed with
NHHBG funds; and
* * * * *
0
8. Add Sec. 1006.227 to read as follows:
Sec. 1006.227 Tenant-based or project-based rental assistance.
(a) NHHBG funds may be used for the provision of tenant-based
rental assistance, which may include security deposits and first
month's rent, and project-based rental assistance.
(1) Rental assistance must comply with the requirements of this
part and be provided to eligible families.
(2) Rental assistance may be provided to eligible families both on
and off the Hawaiian Home Lands provided such use is consistent with
the applicable appropriations acts governing the use of the NHHBG
funds.
(b) [Reserved].
Sec. 1006.230 [Amended]
0
9. In Sec. 1006.230, paragraph (d), remove the citation ``2 CFR part
200, subpart E.'' and add in its place the citation ``2 CFR part 200,
subpart E.'', and in paragraph (f), remove the text ``Sec. Sec.
1006.370 and 1006.375 of this part'' and add in its place the text
``Sec. Sec. 1006.370, 1006.375, and 1006.377''.
Sec. 1006.235 [Amended]
0
10. In Sec. 1006.235, revise the section heading to read ``Sec.
1006.235 Types of investments and forms of assistance.''.
0
11. Revise Sec. 1006.301 to read as follows:
Sec. 1006.301 Eligible families.
(a) General. Assistance for eligible housing activities under the
Act and this part is limited to low-income Native Hawaiian families who
are eligible to reside on the Hawaiian Home Lands, except as provided
under paragraphs (b) and (c) of this section.
(b) Exception to low-income requirement--(1) Other Native Hawaiian
families. The DHHL may provide assistance for homeownership activities,
which may include assistance in conjunction with loan guarantee
activities to Native Hawaiian families who are not low-income families,
as approved by HUD, to address a need for housing for those families
that cannot be reasonably met without that assistance. DHHL must
determine and document the need for housing for each family that cannot
reasonably be met without such assistance.
(2) HUD approval. HUD approval is required, except as provided in
paragraph (b)(3)(i) of this section, if the DHHL plans to use grant
amounts provided under the Act for assistance in accordance with
paragraph (b)(1) of this section. HUD approval shall be obtained by
DHHL submitting proposals in its housing plan, by amendment of the
housing plan, or by special request to HUD at any time.
(3) Limitations. (i) DHHL may use up to 10 percent of the amount
planned in its Housing Plan for its fiscal year for families whose
income is 81 to 100 percent of the median income without HUD approval.
HUD approval is required if DHHL plans to use more than 10 percent of
the amount planned for its fiscal year for such assistance or to
provide housing for families with income over 100 percent of median
income.
(ii) Non-low-income families cannot receive the same benefits
provided low-income Native Hawaiian families. The amount of assistance
non-low-income families may receive will be determined by DHHL as
established in its written policies.
(iii) The requirements set forth in paragraphs (b)(3)(i) and (ii)
of this section do not apply to other families who are non-low income
that DHHL has determined to be essential under Sec. 1006.301(c).
(c) Other families. The DHHL may provide housing or NHHBG
assistance to a family that is not low-income and is not a Native
Hawaiian family without HUD approval if the DHHL documents that:
(1) The presence of the family in the housing involved is essential
to the well-being of Native Hawaiian families; and
(2) The need for housing for the family cannot be reasonably met
without the assistance.
(d) Written policies. The DHHL must develop, follow, and have
available for review by HUD written policies governing the eligibility,
admission, and occupancy of families for housing assisted with NHHBG
funds and governing the selection of families receiving other
assistance under the Act and this part.
0
12. In Sec. 1006.305, revise paragraphs (a) and (b) to read as
follows:
Sec. 1006.305 Low-income requirement and income targeting.
(a) In general. Housing qualifies as affordable housing for
purposes of the Act and this part, provided that the family occupying
the unit is low-income at the following times:
(1) In the case of rental housing, at the time of the family's
initial occupancy of such unit;
(2) In the case of housing for homeownership, at the time of
purchase. When DHHL enters into a loan contract with the family for
NHHBG assistance to purchase or construct a homeownership unit, the
time of purchase means the time that loan contract is executed;
[[Page 335]]
(3) In the case of owner-occupied housing units, at the time the
family receives NHHBG assistance;
(4) In the case of a lease-purchase agreement for existing housing
or for housing to be constructed, at the time the lease-purchase
agreement is signed; and
(5) In the case of emergency assistance to prevent homelessness or
foreclosure, at the time the family receives NHHBG assistance.
(b) Affordability requirements. NHHBG-assisted rental and
homeownership units must meet the affordability requirements for the
remaining useful life of the property, as determined by HUD, or such
other period as HUD determines in accordance with section 813(a)(2)(B)
of the Act.
* * * * *
0
13. Add Sec. 1006.306 to read as follows:
Sec. 1006.306 Income verification for receipt of NHHBG assistance.
(a) Initial determination of eligibility. DHHL must verify that the
family is income eligible based on anticipated annual income. The
family is required to provide documentation to verify this
determination. DHHL is required to maintain the documentation on which
the determination of eligibility is based.
(b) Periodic verification. DHHL may require a family to
periodically verify its income in order to determine housing payments
or continued occupancy consistent with DHHL's written policies. When
income verification is required, the family must provide documentation
which verifies its income, and this documentation must be retained by
DHHL.
0
14. Add Sec. 1006.307 to read as follows:
Sec. 1006.307 Non-low-income families.
(a) A family that was low-income at the times described in Sec.
1006.305 but subsequently becomes a non-low-income family may continue
to participate in the program in accordance with DHHL's admission and
occupancy policies. The 10 percent limitation in Sec.
1006.301(b)(3)(i) in this part shall not apply to such families. Such
families may be made subject to the additional requirements in Sec.
1006.301(b)(3)(ii) of this part based on those policies.
(b) [Reserved]
0
15. Revise Sec. 1006.310 to read as follows:
Sec. 1006.310 Rent and lease-purchase limitations.
(a) Rents. The DHHL must develop and follow written policies
governing rents for rental housing units assisted with NHHBG funds,
including methods by which rents are determined.
(1) Maximum and minimum rent. The maximum monthly tenant rent
payment for a low-income family may not exceed 30 percent of the
family's monthly adjusted income. DHHL may also decide to compute
rental or homebuyer payments on any lesser percentage of the adjusted
income of the family. The Act does not set minimum rent or homebuyer
payments; however, DHHL may do so.
(2) Flat or income-adjusted rent. Flat rent means the tenant's rent
payment is set at a specific dollar amount or specific percent of
market rent. Income-adjusted rent means the tenant's rent payment
varies based on the tenant's income (i.e., 30% of monthly adjusted
income). DHHL may charge flat or income-adjusted rents, provided the
rental or homebuyer payment of the low-income family does not exceed 30
percent of the family's adjusted income.
(3) Utilities. Utilities may be considered a part of rent or
homebuyer payments if DHHL decides to define rent or homebuyer payments
to include utilities in its written policies on rents and homebuyer
payments required by section 811(a)(1) of NAHASDA. DHHL may define
rents and homebuyer payments to exclude utilities.
(b) Lease-purchase. If DHHL assists low-income families to become
homeowners of rental housing through a long-term lease (i.e., 10 or
more years) with an option to purchase the housing, DHHL must develop
and follow written policies governing lease-purchase payments (i.e.,
homebuyer payments) for rental housing units assisted with NHHBG funds,
including methods by which payments are determined. The maximum monthly
payment for a low-income family may not exceed 30 percent of the
family's monthly adjusted income.
(c) Exception for certain homeownership payments. Homeownership
payments for families who are not low-income, as permitted under Sec.
1006.301(b), are not subject to the requirement that homebuyer payments
may not exceed 30 percent of the monthly adjusted income of that
family.
(d) Applicability. Low-income families who receive homeownership
assistance other than lease-purchase assistance are not subject to the
limitations in paragraphs (a) and (b) of this section.
Sec. 1006.340 [Amended]
0
16. In Sec. 1006.340, paragraph (a), remove the citation ``Sec.
1006.235'' and add in its place the citation ``section 812(b) of
NAHASDA''.
Sec. 1006.350 [Amended]
0
17. In Sec. 1006.350, paragraph (a), remove the word
``decisionmaking'' and add in its place the word ``decision-making''.
0
18. Revise Sec. 1006.375 to read as follows:
Sec. 1006.375 Other Federal requirements.
(a) Lead-based paint. The following subparts of HUD's lead-based
paint regulations at part 35 of this title, which implement the Lead-
Based Paint Poisoning Prevention Act (42 U.S.C. 4822-4846) and the
Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C.
4851-4856), apply to the use of assistance under this part:
(1) Subpart A, ``Disclosure of Known Lead-Based Paint Hazards Upon
Sale or Lease of Residential Property'';
(2) Subpart B, ``General Lead-Based Paint Requirements and
Definitions for All Programs'';
(3) Subpart H, ``Project-Based Rental Assistance'';
(4) Subpart J, ``Rehabilitation'';
(5) Subpart K, ``Acquisition, Leasing, Support Services, or
Operation'';
(6) Subpart M, ``Tenant-Based Rental Assistance''; and
(7) Subpart R, ``Methods and Standards for Lead-Based Paint Hazard
Evaluation and Hazard Reduction Activities''.
(b) Drug-free workplace. The Drug-Free Workplace Act of 1988 (41
U.S.C. 701, et seq.) and HUD's implementing regulations in 2 CFR part
2429 apply to the use of assistance under this part.
(c) Audits. The DHHL must comply with the requirements of the
Single Audit Act and 2 CFR part 200, subpart F, with the audit report
providing a schedule of expenditures for each grant. A copy of each
audit must be submitted to the Federal Audit Clearinghouse.
(d) Housing counseling. Housing counseling, as defined in Sec.
5.100, that is funded with or provided in connection with NHHBG funds
must be carried out in accordance with 24 CFR 5.111.
(e) Section 3. Requirements under section 3 of the Housing and
Urban Development Act of 1968 and 24 CFR part 75 apply.
(f) Debarment and suspension. The Nonprocurement debarment and
suspension requirements at 2 CFR part 2424 are applicable.
0
19. Add Sec. 1006.377 to read as follows:
Sec. 1006.377 Other Federal requirements: Displacement, relocation,
and acquisition.
The following relocation and real property acquisition policies are
applicable to programs developed or operated under the Act and this
part:
(a) Real property acquisition requirements. The acquisition of real
[[Page 336]]
property for an assisted activity is subject to the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended (URA) and the requirements of 49 CFR part 24, subpart B.
(b) Minimize displacement. Consistent with the other goals and
objectives of the Act and this part, the DHHL shall assure that it has
taken all reasonable steps to minimize the displacement of persons
(households, businesses, nonprofit organizations, and farms) as a
result of a project assisted under the Act and this part.
(c) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (f) of this section) must be provided relocation
assistance at the levels described in, and in accordance with the URA
requirements of 49 CFR part 24. A displaced person must be advised of
his or her rights under the Fair Housing Act (42 U.S.C. 3601 et seq.).
Whenever possible, minority persons shall be given reasonable
opportunities to relocate to comparable and suitable decent, safe, and
sanitary replacement dwellings, not located in an area of minority
concentration, that are within their financial means. For a displaced
person with a disability, a unit is not a comparable replacement
dwelling under the URA unless it is free of any barriers which would
preclude reasonable ingress, egress, or use of the dwelling by such
displaced person in accordance with 49 CFR 24.2(a)(8)(vii) and the unit
meets the requirements of section 504 of the Rehabilitation Act (29
U.S.C. 794).
(d) Appeals to the DHHL. A person who disagrees with the DHHL's
determination concerning whether the person qualifies as a ``displaced
person,'' or the amount of relocation assistance for which the person
is eligible, may file a written appeal of that determination with the
DHHL in accordance with URA requirements of 49 CFR 24.10.
(e) Responsibility of DHHL. (1) The DHHL shall certify that it will
comply with the URA requirements of 49 CFR part 24, and the
requirements of this section. The DHHL shall ensure such compliance
notwithstanding any third party's contractual obligation to the DHHL to
comply with the provisions in this section.
(2) The cost of required relocation assistance is an eligible
project cost in the same manner and to the same extent as other project
costs. However, such assistance may also be paid for with funds
available to the DHHL from any other source.
(3) The DHHL shall maintain records in sufficient detail to
demonstrate compliance with this section.
(f) Definition of displaced person. (1) For purposes of this
section, the term ``displaced person'' means any person (household,
business, nonprofit organization, or farm) that moves from real
property, or moves his or her personal property from real property,
permanently, as a direct result of rehabilitation, demolition, or
acquisition for a project assisted under the Act. The term ``displaced
person'' includes, but is not limited to:
(i) A tenant-occupant of a dwelling unit who moves from the
building/complex permanently after the submission to HUD of a housing
plan that is later approved;
(ii) Any person, including a person who moves before the date the
housing plan is submitted to HUD, that the DHHL determines was
displaced as a direct result of acquisition, rehabilitation, or
demolition for the assisted project;
(iii) A tenant-occupant of a dwelling unit who moves from the
building/complex permanently after execution of the agreement between
the DHHL and HUD, if the move occurs before the tenant is provided
written notice offering him or her the opportunity to lease and occupy
a suitable, decent, safe and sanitary dwelling in the same building/
complex, under reasonable terms and conditions, upon completion of the
project. Such reasonable terms and conditions include a monthly rent
and estimated average monthly utility costs that do not exceed the
greater of:
(A) The tenant-occupant's monthly rent and estimated average
monthly utility costs before the agreement; or
(B) 30 percent of gross household income.
(iv) A tenant-occupant of a dwelling who is required to relocate
temporarily, but does not return to the building/complex, if either:
(A) The tenant-occupant is not offered payment for all reasonable
out-of-pocket expenses incurred in connection with the temporary
relocation, including the cost of moving to and from the temporarily
occupied unit, any increased housing costs and incidental expenses; or
(B) Other conditions of the temporary relocation are not
reasonable.
(v) A tenant-occupant of a dwelling who moves from the building/
complex after he or she has been required to move to another dwelling
unit in the same building/complex in order to carry out the project, if
either:
(A) The tenant-occupant is not offered reimbursement for all
reasonable out-of-pocket expenses incurred in connection with the move;
or
(B) Other conditions of the move are not reasonable.
(2) Notwithstanding the provisions of this section for the
definition of ``Displaced Person,'' a person does not qualify as a
``displaced person'' (and is not eligible for relocation assistance
under the URA or this section), if:
(i) The person moved into the property after the submission of the
housing plan to HUD, but before signing a lease or commencing
occupancy, was provided written notice of the project, its possible
impact on the person (e.g., the person may be displaced, temporarily
relocated or suffer a rent increase) and the fact that the person would
not qualify as a ``displaced person'' or for any assistance provided
under this section as a result of the project;
(ii) The person is ineligible under 49 CFR 24.2(a)(9)(ii); or
(iii) The DHHL determines the person is not displaced as a direct
result of acquisition, rehabilitation, or demolition for an assisted
project. To exclude a person on this basis, HUD must concur in that
determination.
(3) The DHHL may at any time ask HUD to determine whether a
specific displacement is or would be covered under this section.
(g) Definition of initiation of negotiations. For purposes of
determining the formula for computing the replacement housing
assistance to be provided to a person displaced from a dwelling as a
direct result of acquisition, rehabilitation, or demolition of the real
property, the term ``initiation of negotiations'' means the execution
of the written agreement covering the acquisition, rehabilitation, or
demolition (See 49 CFR 24.2(a)(15)).
0
20. In Sec. 1006.410, revise paragraph (a)(2), add paragraph (a)(3),
and revise paragraph (c)(1) to read as follows:
Sec. 1006.410 Performance reports.
(a) * * *
(2) Submit a report in a form acceptable to HUD, within 90 days of
the end of the DHHL's fiscal year, to HUD describing the conclusions of
the review.
(3) DHHL may submit a written request for an extension of the
deadline. HUD will establish a new date for submission if the extension
is granted.
* * * * *
(c) * * *
(1) Comments by Native Hawaiians. In preparing a report under this
section, the DHHL shall make the report publicly available to Native
Hawaiians who are eligible to reside on the
[[Page 337]]
Hawaiian Home Lands and give a sufficient amount of time to permit them
to comment on that report, in such manner and at such time as the DHHL
may determine, before it is submitted to HUD.
* * * * *
Sec. 1006.420 [Amended]
0
21. In Sec. 1006.420, paragraph (c), add the paragraph heading
``Failure to maintain records.'' before the words ``The DHHL's failure
to maintain records''.
Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2022-28020 Filed 1-3-23; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on January 4, 2023.
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