Rule2024-02447
Implementing Rental Housing Assistance for the Native Hawaiian Housing Block Grant Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 12, 2024
Effective
March 13, 2024
Issuing agencies
Housing and Urban Development Department
Abstract
This rule amends HUD's 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). The amendments clarify and improve consistency with NAHASDA's statutory requirements and HUD's Indian Housing Block Grant (IHBG) program regulations. This rule would also help to 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 89 Issue 29 (Monday, February 12, 2024)</title>
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[Federal Register Volume 89, Number 29 (Monday, February 12, 2024)]
[Rules and Regulations]
[Pages 9757-9764]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-02447]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1006
[Docket No. FR-6273-F-02]
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: Final rule.
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SUMMARY: This rule amends HUD's 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). The amendments clarify and improve
consistency with NAHASDA's statutory requirements and HUD's Indian
Housing Block Grant (IHBG) program regulations. This rule would also
help to make affordable housing opportunities, in the form of NHHBG-
assisted rental housing, more available to eligible Native Hawaiian
families.
DATES: Effective March 13, 2024.
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 from 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
Statutory Authority for the Native Hawaiian Housing Block Grant program
Section 513 of the Hawaiian Homelands Homeownership Act of 2000
(HHH Act),\1\ 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 of NAHASDA established the Native
Hawaiian Housing Block Grant (NHHBG) program to provide block grant
assistance for affordable housing for eligible Native Hawaiians,
including rental assistance.\2\
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\1\ The 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).
\2\ Section 513 of the HHH Act adds sections 801 through 824 of
NAHASDA's Title VIII, which authorize this NHHBG program. 25 U.S.C.
4221 et seq. Although NAHASDA may be referenced throughout this
rule, NHHBG serves Native Hawaiians specifically.
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The NHHBG program must primarily benefit low-income Native Hawaiian
families who are eligible to reside on the Hawaiian Home Lands. 25
U.S.C. 4222(a); 25 U.S.C. 4228(a)(2)(A). These families 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.
Interim Rule
On June 13, 2002, HUD published an interim rule (``interim rule'')
adding new regulations at 24 CFR part 1006 to implement the NHHBG
program. 67 FR 40773. HUD modeled the NHHBG regulations after the
Indian Housing Block Grant (IHBG) regulations implemented at 24 CFR
part 1000 because NAHASDA authorizes and applies overlapping
requirements to both programs.\3\
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\3\ 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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[[Page 9758]]
The interim rule established program requirements pertaining to
homeownership and rental assistance authorized under section 810 of
Title VIII of NAHASDA.\4\ The new 24 CFR part 1006 as implemented by
the interim rule closely followed the statute with some differences for
clarification.
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\4\ NAHASDA section 810(a), 25 U.S.C. 4229(a).
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Need To Amend NHHBG Regulations
HUD has not comprehensively reviewed or amended 24 CFR part 1006
since the interim rulemaking. Since then, Congress has amended
statutory requirements, which HUD has implemented for the IHBG program
through rulemaking, but not the NHHBG program.
Additionally, current NHHBG regulations do not adequately explain
how NHHBG's sole funding recipient, the Department of Hawaiian Home
Lands (DHHL), may use funds for rental assistance. Prior to fiscal year
2020, the DHHL used NHHBG funds primarily for homeownership housing
assistance. In 2019, Hawaii changed administrative rules to allow the
DHHL to expand residential lease offerings to include rental
housing.\5\ HUD received feedback from the DHHL about the DHHL's rental
housing projects currently in development. HUD then reviewed its
regulations and determined that additional regulatory details would be
necessary to support a fully successful rental housing program
administered by the DHHL.
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\5\ 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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II. The Proposed Rule
On January 4, 2023, HUD published a proposed rule in the Federal
Register (88 FR 328) to amend the NHHBG program regulations at 24 CFR
part 1006 to provide necessary updates to NHHBG regulations and clarify
how the DHHL may use NHHBG program funds for rental housing assistance,
as authorized by Title VIII of NAHASDA.
HUD's broad goals in proposing these changes were to decrease
DHHL's burden in implementing rental assistance, improve low-income
Native Hawaiian families' access to rental assistance, and clarify
HUD's program requirement monitoring and enforcement tools. More
specifically, the amendments to 24 CFR part 1006 were designed to
achieve three outcomes: ensure compliance with the NHHBG program's
statutory requirements; promote consistency between NHHBG and IHBG
program regulations where the programs' statutory requirements overlap;
and clarify the NHHBG regulatory rental assistance framework.
The preamble to the proposed rule at 88 FR 328 includes a thorough
explanation and justification of amendments and new sections.
III. This Final Rule
This final rule adopts the proposed rule, published at 88 FR 328
(Jan. 4, 2023), with the following revisions, based on public comments.
First, HUD is striking the proposed definition of ``Homeless
Family'' at Sec. 1006.10 to allow DHHL to retain flexibility with
respect to its approach to homeless families; and changing the
definition of ``project-based rental assistance'' to add that project-
based rental assistance may consist of rental assistance provided
through an agreement for use of a DHHL property to account for
situations where DHHL owns the building but contracts with an agency to
manage the property as a facility where units are rented out.
Second, HUD is revising Sec. 1006.215(f) to allow NHHBG funds to
be used for management services not just for units developed with NHHBG
funds, but for all units occupied by NHHBG eligible families, to
account for the fact that some units occupied by NHHBG eligible
families are not developed with NHHBG funds.
This rule also makes non-substantive changes to the definition of
``Person with a disability'' for clarity.
The public comments section further explains these revisions to the
proposed rule.
IV. Public Comments
The public comment period for the proposed rule closed on March 6,
2023. HUD received three distinct comments on the proposed rule. This
section presents the significant issues, questions, and suggestions
submitted by public commenters, and HUD's responses to these issues,
questions, and suggestions. The following sections summarize the
comments received on the proposed rule and HUD's responses.
General Support
Commenters supported the proposed rule. Some commenters stated that
they generally support the proposed rule and a commenter specifically
supported HUD's proposed additions and revisions to 24 CFR part 1006
but suggested some changes to the proposed regulatory text.
One commenter stated that they support the effort, through this
rulemaking, to reduce the burden on the recipient of NHHBG funds. This
commenter stated that the proposed rule would increase availability of
assisted rental housing through tenant-based rental assistance and
offer Native Hawaiians more choice to reside in communities of their
choosing. This commenter also noted that HUD's proposals allow
qualifying families to enter into private tenancy agreements, and this
would mean rental assistance would cover the initial deposit for
eligible families.
HUD Response: HUD appreciates the participation and feedback of the
public during the proposed rule's availability for comment.
Sec. 1006.10 Definitions
For the proposed definition of ``Homeless family'' in Sec.
1006.10, one commenter noted that ``safe, sanitary and affordable
housing'' is not defined, questioned the meaning of these terms, and
recommended that HUD consider referencing the definition of
``homeless'' in other HUD regulations, such as 24 CFR 578.3.
For the proposed definition of ``Project-based rental assistance''
in Sec. 1006.10, the commenter recommended clarifying the definition
by adding ``an agreement for the use of a DHHL property'' as an
alternative to a contract with the owner, such that the first sentence
of the definition would read: ``Project-based rental assistance means
rental assistance provided through an agreement for use of a DHHL
property or contract with the owner of an existing structure, where the
owner agrees to lease the subsidized units to program participants.''
The commenter reasoned that where DHHL owns the building but contracts
with an agency to manage the property as a facility where units are
rented out, an agreement may be required.
HUD Response: HUD appreciates the comment requesting clarification
of ``safe, sanitary, and affordable housing'' within the proposed
definition of ``Homeless family.'' The proposed definition was intended
to codify existing policy and align the NHHBG regulations with the
regulations for the IHBG program, not to introduce new requirements
that may conflict with current practice. Because the proposed rule does
not have any requirements related to the ``Homeless family''
definition, HUD has determined a definition for ``Homeless family'' is
not necessary, will strike the proposed
[[Page 9759]]
definition, and declines to adopt or reference the definition of
``homeless'' that appears at 24 CFR 578.3. This will allow DHHL to
retain flexibility with respect to its approach to homeless families,
without applying a definition that may prove limiting or incompatible
with the unique nature of the NHHBG program. HUD appreciates the
comment about the definition of ``Project-based rental assistance''
(PBRA) and acknowledges the suggested edit as it supports the different
scenarios that could arise with project based rental assistance in the
NHHBG program. HUD accepts the suggested edit to the definition of PBRA
and has updated the regulatory text accordingly.
Sec. 1006.215 Housing Management Services
One commenter supported the proposed addition of costs of the
operation and maintenance of units developed with NHHBG funds to Sec.
1006.215 but recommended that the language ``units developed with NHHBG
funds'' be replaced with ``units occupied by NHHBG eligible families''
because other funds received by DHHL (for example, from the state of
Hawaii) may be used to construct units receiving NHHBG funds for
operation and maintenance. The language at paragraph (f) would then
read: ``The costs of operation and maintenance of units occupied by
NHHBG eligible families.''
HUD Response: HUD supports allowing DHHL the ability to expand
making affordable housing available to as many families as possible.
HUD agrees with the commenter's suggested edit and has updated the
regulatory text accordingly.
Sec. 1006.301 Eligible Families
For the income eligibility criteria proposed in Sec.
1006.301(b)(3), one commenter expressed concern with using median
income for eligibility criteria in the state of Hawaii because wealthy
families' income can distort the median income of the population. Due
to these distortions, this commenter is concerned that permitting DHHL
to use 10 percent of its planned Housing Plan for families whose income
is 81 to 100 percent of the median income will inaccurately represent
income within the state.
HUD Response: Median income is the standard used in HUD programs to
determine eligibility for assistance. HUD annually calculates median
family income using Fair Market Rents to determine very low-income,
low-income, and extremely low-income limits for programs across HUD,
including the Section 8 program. Further, the proposed language aligns
with the IHBG program, which publishes yearly income limits under
NAHASDA based on median family income. Using median family income
provides consistent interpretation of NAHASDA income limits within HUD
and allows DHHL to use a small portion of funds to serve over-income
families if it chooses to do so. It is not practicable or equitable for
the NHHBG program to deviate from other HUD programs when determining
income limits. As such, HUD will keep the proposed regulatory language.
Sec. 1006.307 Non-Low-Income Families
A commenter said that improved income situations should not
disqualify families currently receiving assistance from receiving
further assistance.
HUD Response: HUD appreciates the commenter's response. The
proposed language allows families whose income circumstances improve to
continue to participate in the program in accordance with DHHL's
admission and occupancy policies. This is a long-standing policy that
is being codified and is consistent with the IHBG program.
Sec. 1006.375 Other Federal Requirements: Housing Counseling
A commenter recommended changing HUD's proposed Sec. 1006.375(d)
by removing ``or provided in connection with,'' so that the paragraph
reads: ``Housing counseling, as defined in Sec. 5.100, that is funded
with NHHBG funds must be carried out in accordance with 24 CFR 5.111.''
The commenter reasoned that limiting the federal requirements to
housing counseling funded with NHHBG funds gives DHHL greater
flexibility for the significant funding from the State.
HUD Response: HUD appreciates the commenter's suggestion, but HUD
declines to accept it. The housing counseling requirements at 24 CFR
part 5 are standard requirements applicable to all HUD programs unless
inconsistent with the authorizing statute for that program. HUD's
position is to maintain consistency in providing housing counseling via
HUD-certified housing counselors across HUD programs. The commenter's
suggested modification to 24 CFR 1006.375 conflicts with 24 CFR
5.111(a), which requires housing counseling from a HUD certified
housing counselor when provided under, or in connection with, any
program administered by HUD. Accordingly, any housing counseling
provided in connection with NHHBG assistance must be provided by a HUD-
certified housing counselor to comply with 24 CFR 5.111 and to maintain
consistency with other HUD programs where housing counseling is
involved.
Sec. 1006.377 Other Federal Requirements: Displacement, Relocation,
and Acquisition
In HUD's proposed Sec. 1006.377(c), outlining relocation
assistance requirements for displaced persons, a commenter asked HUD to
remove the requirement that wherever possible, minority persons shall
be given reasonable opportunities to relocate to dwellings ``not
located in an area of minority concentration, that are within their
financial means'' (leaving the requirement that relocation be to
``comparable and suitable decent, safe, and sanitary replacement
dwellings''). This commenter reasoned that the specified relocation
requirements may be difficult to attain depending on the island and
area where units may be found within a family's means.
HUD Response: HUD has considered the comment but declines to make
the proposed change. The language the commenter highlights is directly
from the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) regulation at 49 CFR 24.205(c)(2)(ii)(D) and
is not subject to changes under this rulemaking. HUD recognizes it may
not always be feasible to relocate displaced individuals to areas not
of a minority concentration. However, given that 49 CFR
24.205(c)(2)(ii)(D) already provides flexibility for when it is not
possible to relocate individuals to areas not of a minority
concentration, HUD does not agree that additional flexibility or
removal of the requirement when feasible is necessary.
V. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563 and 14094
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
[[Page 9760]]
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. Executive Order 14094 entitled ``Modernizing
Regulatory Review'' amends section 3(f) of Executive Order 12866
(Regulatory Planning and Review), among other things.
HUD's revisions to NHHBG program requirements and regulations would
clarify that NHHBG funds can be used for certain affordable housing
activities including project-based rental assistance, permit rental
assistance to be provided off the Hawaiian Home Lands when Congress
authorizes such use through appropriations acts, and add or change
certain 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 rule was not subject to OMB review. This
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 rule will 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
final 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 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 (FONSI) 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 FONSI 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="http://www.regulations.gov">http://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 rule does not have federalism
implications and would not impose substantial direct compliance costs
on state and local governments nor preempt state law within the meaning
of the Order.
List of Subjects in 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 amends 24 CFR part 1006, as set forth
below:
PART 1006--NATIVE HAWAIIAN HOUSING BLOCK GRANT PROGRAM
0
1. The authority citation for part 1006 is revised 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, Pub. L. 117-328.
0
2. In Sec. 1006.10, add alphabetically definitions for ``Annual
income'', ``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.
* * * * *
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, as further explained in 28 CFR 35.108, is
defined as follows:
(1) Definition of person with a disability. ``Person with a
disability'' means a person who:
(i) Has a physical or mental impairment which substantially limits
one or more major life activities;
(ii) Has a record of having such an impairment;
(iii) Is regarded as having such an impairment;
(iv) Has a disability as defined in section 223 of the Social
Security Act; or
(v) Has a developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act.
(2) Definition of physical or mental impairment. 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
[[Page 9761]]
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.
(3) Nonexhaustive list of physical and mental impairments. 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.
(4) Nonexhaustive list of major life activities. 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 an agreement for use of a DHHL property or 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 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.
(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:
0
a. Revise paragraph (e);
0
b. Redesignate paragraph (f) as paragraph (g); and
0
c. Add new paragraph (f).
The revision and addition read as follows:
Sec. 1006.215 Housing management services.
* * * * *
(e) Management of tenant-based rental assistance;
(f) The costs of operation and maintenance of units occupied by
NHHBG eligible families; and
* * * * *
0
8. Add Sec. 1006.227 to read as follows:
Sec. 1006.227 Tenant-based or project-based rental assistance.
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.
(a) Rental assistance must comply with the requirements of this
part and be provided to eligible families.
(b) 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.
Sec. 1006.230 [Amended]
0
9. In Sec. 1006.230, in paragraph (f), remove the citation
``Sec. Sec. 1006.370 and 1006.375'' and add in its place the citation
``Sec. Sec. 1006.370, 1006.375, and 1006.377''.
0
10. In Sec. 1006.235, revise the section heading to read as follows:
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.
[[Page 9762]]
(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 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 paragraph (c) of this
section.
(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;
(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 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.
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 percent 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-
[[Page 9763]]
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, in paragraph (a), remove the citation ``Sec.
1006.235'' and add in its place the citation ``section 812(b) of the
Act''.
Sec. 1006.350 [Amended]
0
17. In Sec. 1006.350, in 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 24 CFR part 35, 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 (Sec. Sec. 35.80 through 35.98) for disclosures of
known lead-based paint hazards upon sale or lease of residential
property;
(2) Subpart B (Sec. Sec. 35.100 through 35.175) for general lead-
based paint requirements and definitions;
(3) Subpart H (Sec. Sec. 35.700 through 35.830) for project-based
rental assistance;
(4) Subpart J (Sec. Sec. 35.900 through 35.940) for
rehabilitation;
(5) Subpart K (Sec. Sec. 35.1000 through 35.1020) for acquisition,
leasing, support services, or operation;
(6) Subpart M (Sec. Sec. 35.1200 through 35.1225) for tenant-based
rental assistance; and
(7) Subpart R (Sec. Sec. 35.1300 through 35.1355) for methods and
standards for lead-based paint hazard evaluation and 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 subpart D 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
property for an assisted activity is subject to the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended (42 U.S.C. 4601 et seq.) (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
and the 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 a
displaced person in accordance with the definition of ``Decent, safe,
and sanitary dwelling'' at 49 CFR 24.2. Furthermore, the unit must also
meet the requirements of section 504 of the Rehabilitation Act (29
U.S.C. 794) as implemented by HUD's regulations at 24 CFR part 8,
subpart C.
(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) DHHL must provide proper and timely distribution of notices to
residents in accordance with the URA regulations. This includes the
General Information Notice (GIN), the Notice of Relocation Eligibility,
the Notice to Owner, and the 90-Day Notice. All notices must be sent in
accordance with 49 CFR 24.203 and 24.102. Notices of Relocation
Eligibility are typically triggered by the Initiation of Negotiation
(ION).
(4) 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;
[[Page 9764]]
(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) Thirty 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:
(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;
(B) The tenant-occupant is required to temporarily relocate for
more than one year; or
(C) 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 meets the definition of ``persons not displaced''
as defined in 49 CFR 24.2; 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 in accordance with 49 CFR 24.2.
(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 (ION) date means the
execution of the written agreement covering the acquisition,
rehabilitation, or demolition (See 49 CFR 24.2).
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, 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 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.
* * * * *
0
21. In Sec. 1006.420, add a heading to paragraph (c) to read as
follows:
Sec. 1006.420 Review of DHHL's performance.
* * * * *
(c) Failure to maintain records. * * *
Adrianne Todman,
Deputy Secretary for U.S. Department of Housing and Urban Development.
[FR Doc. 2024-02447 Filed 2-9-24; 8:45 am]
BILLING CODE 4210-67-P
</pre></body>
</html>Indexed from Federal Register on February 12, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.