Rule2024-12199
Removal of Obsolete Regulations for Section 236 of the National Housing Act
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 4, 2024
Effective
July 5, 2024
Issuing agencies
Housing and Urban Development Department
Abstract
This rule removes HUD's obsolete regulations under the Rental and Cooperative Housing for Lower Income Families Program under section 236 of the National Housing Act ("Section 236"), as amended. HUD has determined that the provisions regulating Section 236 insured projects and Section 236 Rental Assistance Payment ("RAP") projects are obsolete and unnecessary because there are no remaining properties or projects subject to these regulations, and no new agreements are being established under these programs.
Full Text
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<title>Federal Register, Volume 89 Issue 108 (Tuesday, June 4, 2024)</title>
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[Federal Register Volume 89, Number 108 (Tuesday, June 4, 2024)]
[Rules and Regulations]
[Pages 47849-47850]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-12199]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 236
[FR-6439-F-01]
Removal of Obsolete Regulations for Section 236 of the National
Housing Act
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, U.S. Department of Housing and Urban Development (HUD).
ACTION: Final rule.
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SUMMARY: This rule removes HUD's obsolete regulations under the Rental
and Cooperative Housing for Lower Income Families Program under section
236 of the National Housing Act (``Section 236''), as amended. HUD has
determined that the provisions regulating Section 236 insured projects
and Section 236 Rental Assistance Payment (``RAP'') projects are
obsolete and unnecessary because there are no remaining properties or
projects subject to these regulations, and no new agreements are being
established under these programs.
DATES: Effective July 5, 2024.
FOR FURTHER INFORMATION CONTACT: Jennifer Lavorel, Office of Housing,
Department of Housing and Urban Development, 451 7th St. SW, Room 6180,
Washington, DC 20410, telephone number 202-708-1112 (this is not a
toll-free number) or via email to <a href="/cdn-cgi/l/email-protection#460c2328282f2023346805680a27302934232a062e332268212930"><span class="__cf_email__" data-cfemail="df95bab1b1b6b9baadf19cf193bea9b0adbab39fb7aabbf1b8b0a9">[email protected]</span></a>. HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech or 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
Created by Congress in 1968, the Section 236 (12 U.S.C. 1715z-1)
program authorized HUD to subsidize the interest rate on loans on
rental housing projects designed for occupancy by lower-income families
for the purpose of reducing rental costs for such families. Some
Section 236 loans were insured by the Federal Housing Administration
(FHA) (Section 236 insured projects) and others were/are not insured by
FHA but are financed under a State or local program (Section 236 non-
insured projects). Section 236 insured and non-insured projects were
eligible for refinancing, and HUD is authorized to continue interest
reduction payments (IRP) on the successor loan as long as certain
conditions, as specified in Housing Notice 2013-25, are met (Section
236 IRP projects). Section 236(n) prohibits the insurance of mortgages
under Section 236 after November 30, 1983, except to permit the
refinance of a mortgage insured under Section 236, or to finance
pursuant to section 236(j)(3), the purchase, by a cooperative or
nonprofit corporation or association, of a project assisted under
Section 236. HUD is electing not to utilize the authority provided by
section 236(j)(3).
Tenants in some Section 236 projects also received Rental
Assistance Payments (Section 236 RAP projects). Over the last 50 years,
these loans have undergone several preservation transactions to
continue serving low- and moderate-income families, such as prepayment
of certain Section 236 loans subject to HUD prepayment approval,
conversions to Section 8 project based assistance through the Rental
Assistance Demonstration (RAD), refinancing using a Federal Housing
Administration (FHA) insured mortgage program, and/or securing
additional capital financing such as a Low Income Housing Tax Credit
(LIHTC) award. Currently, there are no remaining Section 236 insured
projects, and all Section 236 RAP contracts have either terminated or
converted to Section 8 through RAD, with the RAP program considered
inactive. Moreover, HUD has additional mortgage insurance and rental
assistance programs available to preserve low-to-moderate income
housing and assist lower income tenants.
II. This Final Rule
This final rule removes Section 236 regulations at 24 CFR part 236,
subparts A, B, C, and D, because they are obsolete. Regulations in 24
CFR part 236, subparts A, B, and C, apply only to Section 236 insured
projects. HUD's portfolio has no remaining Section 236 insured
projects. Regulations in 24 CFR part 236, subpart D, apply only to
Section 236 Rental Assistance Payments projects. HUD's portfolio has no
remaining Section 236 RAP projects. Therefore, these subparts are
obsolete and can be removed.
III. Justification for Final Rulemaking
In accordance with 24 CFR part 10, it is the practice of the
Department to offer interested parties the opportunity to comment on
proposed regulations. Part 10 provides for exceptions to the general
rule if an agency, for good cause, finds that ``notice and public
procedure thereon are impracticable, unnecessary, or contrary to the
public interest.'' (24 CFR 10.1.) The removal of these regulations from
the Code of Federal Regulations does not establish or affect
substantive policy. This final rule removes obsolete and unnecessary
regulatory provisions for programs that are no longer being funded or
for operation of programs that has been transferred. Therefore, HUD
finds that public notice and comment are unnecessary and contrary to
the public interest.
[[Page 47850]]
IV. Findings and Certifications
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.
Because HUD has determined that good cause exists to issue this rule
without prior public comment, this rule is not subject to the
requirement to publish an initial or final regulatory flexibility
analysis under the RFA as part of such action.
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 Executive Order. This rule does not have federalism
implications and does not impose substantial direct compliance costs on
State and local governments or preempt State law within the meaning of
the Executive order.
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 on the private sector. This rule does not
impose any Federal mandates on any State, local, or Tribal governments,
or on the private sector, within the meaning of UMRA.
Environmental Impact
This final rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern or regulate, real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule
is categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
List of Subjects in 24 CFR Part 236
Grant programs-housing and community development, Low and moderate
income housing, Mortgage insurance, Rent subsidies, Reporting and
recordkeeping requirements.
For the reasons discussed in the preamble, HUD amends 24 CFR part
236 as follows:
PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENT FOR
RENTAL PROJECTS
0
1. The authority citation for part 236 continues to read as follows:
Authority: 12 U.S.C. 1715b, 1715z-1, and 1735d; 42 U.S.C.
3535(d).
Subparts A through D--[Removed and Reserved]
0
2. Remove and reserve subparts A through D, consisting of Sec. Sec.
236.1 through 236.765.
Julia Gordon,
Assistant Secretary for Housing--Federal Housing Commission.
[FR Doc. 2024-12199 Filed 6-3-24; 8:45 am]
BILLING CODE 4210-67-P
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