Proposed Rule2023-01803
Section 538 Guaranteed Rural Rental Housing Program Change in Priority Projects Criteria
Primary source
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Published
January 31, 2023
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), proposes to amend the current regulation for the Multifamily Family Housing (MFH) Section 538 Guaranteed Rural Rental Housing Program (GRRHP). The intent of this proposed rule is to align the current criteria of priority projects with the Housing Act of 1949. This change is expected to improve the customer experience with more timely and proactive responses to housing market demands and Administration priorities.
Full Text
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<title>Federal Register, Volume 88 Issue 20 (Tuesday, January 31, 2023)</title>
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[Federal Register Volume 88, Number 20 (Tuesday, January 31, 2023)]
[Proposed Rules]
[Pages 6209-6211]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-01803]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3565
[Docket No. RHS-19-MFH-0024]
RIN 0575-AD31
Section 538 Guaranteed Rural Rental Housing Program Change in
Priority Projects Criteria
AGENCY: Rural Housing Service, Department of Agriculture (USDA).
ACTION: Proposed rule.
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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), proposes to amend the current regulation for the Multifamily
Family Housing (MFH) Section 538 Guaranteed Rural Rental Housing
Program (GRRHP). The intent of this proposed rule is to align the
current criteria of priority projects with the Housing Act of 1949.
This change is expected to improve the customer experience with more
timely and proactive responses to housing market demands and
Administration priorities.
DATES: Comments on the proposed rule must be received on or before
April 3, 2023.
ADDRESSES: Comments may be submitted electronically by the Federal
eRulemaking Portal: Go to <a href="https://www.regulations.gov">https://www.regulations.gov</a> and, in the
``Search Field'' box, labeled ``Search for Rules, Proposed Rules,
Notices, or Supporting Documents,'' enter the following docket number:
(RHS-19-MFH-0024) or RIN# 0575-AD31. To submit or view public comments,
click the ``Search'' button, select the ``Documents'' tab, then select
the following document title: (Rural Rental Housing Change in Priority
Projects Criteria) from the ``Search Results,'' and select the
``Comment'' button. Before inputting your comments, you may also review
the ``Commenter's Checklist'' (optional). Insert your comments under
the ``Comment'' title, click ``Browse'' to attach files (if available).
Input your email address and select ``Submit Comment.'' Information on
using <a href="http://Regulations.gov">Regulations.gov</a>, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``FAQ'' link.
Other Information: Additional information about Rural Development
and its programs is available on the internet at <a href="https://www.rurdev.usda.gov/index.html">https://www.rurdev.usda.gov/index.html</a>.
All comments will be available for public inspection online at the
Federal eRulemaking Portal (<a href="https://www.regulations.gov">https://www.regulations.gov</a>).
FOR FURTHER INFORMATION CONTACT: Tammy Daniels, Finance and Loan
Analyst, Multi-Family Housing Production and Preservation Division,
Rural Housing Service, United States Department of Agriculture, STOP
0781, 1400 Independence Avenue SW, Washington, DC 20250-0781,
Telephone: (202) 720-0021 (this is not a toll-free number); email:
<a href="/cdn-cgi/l/email-protection#24504549495d0a40454a4d41485764515740450a434b52"><span class="__cf_email__" data-cfemail="c6b2a7ababbfe8a2a7a8afa3aab586b3b5a2a7e8a1a9b0">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
The RHS offers a variety of programs to build or improve housing
and essential community facilities in rural areas. RHS offers loans,
grants, and loan guarantees for single- and multifamily housing,
childcare centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, housing
for farm laborers. RHS also provides technical assistance loans and
grants in partnership with non-profit organizations, Indian tribes,
state and federal government agencies, and local communities.
RHS administers the Section 538 Guaranteed Rural Rental Housing
Program (GRRHP) under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2). Under the GRRHP, RHS guarantees loans for
the development of housing and related facilities in rural areas.
As mandated by Title V of the Housing Act of 1949, the Agency must
give priority to rural areas in which borrowers can best use and need
guaranteed loans. 42 U.S.C. 1490p-2(l)(2). 7 CFR 3565.5(b) currently
defines ``priority projects'' as those: in smaller rural communities,
in the neediest communities having the highest percentage of
leveraging, having the lowest interest rate, having the highest ratio
of 3-to-5-bedroom units to total units, or on tribal lands. Some of
these specific priorities are no longer relevant.
II. Discussion of the Proposed Rule
RHS is issuing a proposed rule to amend the MFH GRRHP regulation, 7
CFR 3565.5(b) to align the current criteria of priority projects with
42 U.S.C. 1490p-2(l)(2).
Amendments proposed in this rule are designed to increase the
supply of affordable rural rental housing by using loan guarantees to
encourage partnerships between the RHS, private
[[Page 6210]]
lenders, and public agencies. 7 CFR part 3565 sets forth the regulation
requirements for the GRRHP which prescribes the policies,
authorizations, and procedures for the guarantee of multifamily loans
authorized by Section 538, Title V, of the Housing Act of 1949. The
GRRHP uses priority points to rank and score applications that are
based on criteria that frequently evolve and change depending on the
housing market demands, as well as current and future Administrations'
priorities. Currently, 7 CFR 3565.5(b) does not afford the flexibility
the Agency requires in its decision making to fully address these
evolving priorities without a regulatory change to the priority-points
scoring criteria.
This proposed rule is intended to improve the customer experience
with more timely and proactive responses to housing market demands
without frequent regulatory changes. This is expected to be
accomplished by providing the much-needed flexibility required in the
Agency's decision making to fully address evolving priorities in the
housing market demands, as needed, as well as current and future
Administrations' priorities. The Agency would also be in a stronger
position to meet the current and future demands of the housing market,
which ultimately would allow the Agency to be more responsive to the
needs of the program's rural stakeholders.
III. Summary of Changes
The proposed changes would amend 7 CFR 3565.5(b) to offer
flexibility by aligning the current criteria of priority projects with
42 U.S.C. 1490p-2(l)(2) to be more timely and responsive to developing
demands in the rural housing market, as well as evolving priorities
with current and future Administrations, while improving its customers'
experience with the program. The Agency would also be in a stronger
position to meet the current and future demands of the housing market,
which ultimately would allow the Agency to be more responsive to the
needs of the program's rural stakeholders.
IV. Regulatory Information
Statutory Authority
The RHS administers the 538 Guaranteed Rural Rental Housing Program
(GRRHP) loans under the authority of the Housing Act of 1949, as
amended (42 U.S.C. 1490p-2(l)(2)) and operates under 7 CFR part 3565.
Executive Order 12372, Intergovernmental Review of Federal Programs
These loans are subject to the provisions of Executive Order 12372,
which require intergovernmental consultation with State and local
officials. RHS conducts intergovernmental consultations for each loan
in accordance with 2 CFR part 415, subpart C.
Executive Order 12866, Regulatory Planning and Review
This proposed rule has been determined to be non-significant and,
therefore, was not reviewed by the Office of Management and Budget
(OMB) under Executive Order 12866.
Executive Order 12988, Civil Justice Reform
This proposed rule has been reviewed under Executive Order 12988.
In accordance with this rule: (1) Unless otherwise specifically
provided, all State and local laws that conflict with this rule will be
preempted; (2) no retroactive effect will be given to this rule except
as specifically prescribed in the rule; and (3) administrative
proceedings of the National Appeals Division of the Department of
Agriculture (7 CFR part 11) must be exhausted before suing in court
that challenges action taken under this proposed rule.
Executive Order 13132, Federalism
The policies contained in this proposed rule do not have any
substantial direct effect on States, on the relationship between the
National Government and the States, or on the distribution of power and
responsibilities among the various levels of Government. This proposed
rule does not impose substantial direct compliance costs on State and
local Governments; therefore, consultation with States is not required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This Executive order imposes requirements on RHS in the development
of regulatory policies that have tribal implications or preempt tribal
laws. RHS has determined that the proposed rule does not have a
substantial direct effect on one or more Indian tribe(s) or on either
the relationship or the distribution of powers and responsibilities
between the Federal Government and Indian tribes. Thus, this proposed
rule is not subject to the requirements of Executive Order 13175. If
tribal leaders are interested in consulting with RHS on this rule, they
are encouraged to contact USDA's Office of Tribal Relations or RD's
Native American Coordinator at: <a href="/cdn-cgi/l/email-protection#b7f6fef6f9f7c2c4d3d699d0d8c1"><span class="__cf_email__" data-cfemail="d19098909f91a4a2b5b0ffb6bea7">[email protected]</span></a> to request such a
consultation.
National Environmental Policy Act
This document has been reviewed in accordance with 7 CFR part 1970,
subpart A, ``Environmental Policies.'' RHS determined that this action
does not constitute a major Federal action significantly affecting the
quality of the environment. In accordance with the National
Environmental Policy Act of 1969, Public Law 91-190, an Environmental
Impact Statement is not required.
Regulatory Flexibility Act
This proposed rule has been reviewed with regards to the
requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). The
undersigned has determined and certified by signature on this document
that this rule will not have a significant economic impact on a
substantial number of small entities since this rulemaking action does
not involve a new or expanded program nor does it require any more
action on the part of a small business than required of a large entity.
Unfunded Mandate Reform Act (UMRA)
Title II of the UMRA, Public Law 104-4, establishes requirements
for Federal Agencies to assess the effects of their regulatory actions
on State, local, and tribal Governments and on the private sector.
Under section 202 of the UMRA, Federal Agencies generally must prepare
a written statement, including cost-benefit analysis, for proposed and
Final Rules with ``Federal mandates'' that may result in expenditures
to State, local, or tribal Governments, in the aggregate, or to the
private sector, of $100 million or more in any one year. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires a Federal Agency to identify and consider a reasonable number
of regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This proposed rule contains no Federal mandates (under the
regulatory provisions of title II of the UMRA) for State, local, and
tribal Governments or for the private sector. Therefore, this
rulemaking is not subject to the requirements of sections 202 and 205
of the UMRA.
Paperwork Reduction Act
The information collection requirements contained in this
[[Page 6211]]
regulation have been approved by OMB and have been assigned OMB control
number 0575-0189. This proposed rule contains no new reporting and
recordkeeping requirements that would require approval under the
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
E-Government Act Compliance
RHS is committed to complying with the E-Government Act by
promoting the use of the internet and other information technologies to
provide increased opportunities for citizen access to Government
information, services, and other purposes.
Civil Rights Impact Analysis
Rural Development has reviewed this rulemaking in accordance with
USDA Regulation 4300-4, Civil Rights Impact Analysis,'' to identify any
major civil rights impacts the rule might have on program participants
on the basis of age, race, color, national origin, sex, disability,
sex, gender identity (including gender expression), genetic
information, political beliefs, sexual orientation, marital status,
familial status, parental status, veteran status, religion, reprisal
and/or resulting from all or a part of an individual's income being
derived from any public assistance program. After review and analysis
of the rule and available data, it has been determined that
implementation of the rule is not likely to adversely, or
disproportionately, impact very low, low- and moderate-income
populations, minority populations, women, Indian tribes, or persons
with disability by virtue of their race, color, national origin, sex,
age, disability, or marital or familiar status. No major civil rights
impact is likely to result from this proposed rule.
Assistance Listing
The program affected by this regulation is listed in the Catalog of
Federal Domestic Assistance under numbers 10.438--Rural Rental Housing
Guaranteed Loans (Section 538).
Non-Discrimination Statement
In accordance with Federal civil rights laws and U.S. Department of
Agriculture (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.ocio.usda.gov/document/ad-3027">https://www.ocio.usda.gov/document/ad-3027</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" class="__cf_email__" data-cfemail="0151736e6673606c2c486f75606a642f41747265602f666e77">[email protected]</a>.
USDA is an equal opportunity provider, employer, and lender.
List of Subjects in 7 CFR Part 3565
Conflict of interest, Credit, Fair housing, Loan programs--housing
and community development, Low and moderate-income housing,
Manufactured homes, Mortgages, Rent subsidies, Reporting and
recordkeeping requirements, Rural areas.
For the reasons discussed in the preamble, the Agency is proposing
to amend 7 CFR part 3565 as follows:
PART 3565--GUARANTEED RURAL RENTAL HOUSING PROGRAM
0
1. The authority citation for part 3565 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.
0
2. Amend Sec. 3565.5 by revising paragraph (b) to read as follows:
Sec. 3565.5 Ranking and selection criteria
* * * * *
(b) Priority will be given to projects in rural areas in which
borrowers can best utilize and where loan guarantees are needed the
most, as determined by the Agency based on information the Secretary
considers appropriate. In addition, the Agency may, at its sole
discretion, set aside assistance for or rank projects that meet
important program goals. Assistance will include both loan guarantees
and interest credits. Priority projects must compete for set-aside
funds. The Agency will announce the priority criteria in an
announcement in the Federal Register.
Cathy Glover,
Acting Administrator, Rural Housing Service.
[FR Doc. 2023-01803 Filed 1-30-23; 8:45 am]
BILLING CODE 3410-XV-P
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