Rule2024-13124
Strengthening the Section 184 Indian Housing Loan Guarantee Program; Delay of Effective and Compliance Dates
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 14, 2024
Effective
March 20, 2024
Issuing agencies
Housing and Urban Development Department
Abstract
The Department of Housing and Urban Development (HUD) published in the Federal Register on March 20, 2024, a final rule to strengthen its Section 184 Indian Loan Guarantee Program by, among other things, clarifying rules for Tribes, lenders, servicers, and other participants. The final rule established an effective date of June 18, 2024. To provide time for HUD to develop and implement a comprehensive handbook for the Section 184 Program and to allow Tribes, lenders, servicers, and other participants time to conform their policies, procedures, and systems to comply with HUD's March 20, 2024, final rule, this rulemaking delays that effective date to December 31, 2024, and establishes a compliance date of March 1, 2025.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 116 (Friday, June 14, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 116 (Friday, June 14, 2024)]
[Rules and Regulations]
[Pages 50523-50524]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-13124]
[[Page 50523]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 58 and 1005
[Docket No. FR-5593-F-04]
RIN 2577-AD01
Strengthening the Section 184 Indian Housing Loan Guarantee
Program; Delay of Effective and Compliance Dates
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; delay of effective date, establishment of
compliance dates.
-----------------------------------------------------------------------
SUMMARY: The Department of Housing and Urban Development (HUD)
published in the Federal Register on March 20, 2024, a final rule to
strengthen its Section 184 Indian Loan Guarantee Program by, among
other things, clarifying rules for Tribes, lenders, servicers, and
other participants. The final rule established an effective date of
June 18, 2024. To provide time for HUD to develop and implement a
comprehensive handbook for the Section 184 Program and to allow Tribes,
lenders, servicers, and other participants time to conform their
policies, procedures, and systems to comply with HUD's March 20, 2024,
final rule, this rulemaking delays that effective date to December 31,
2024, and establishes a compliance date of March 1, 2025.
DATES:
Effective date: The effective date for the final rule published
March 20, 2024, at 89 FR 20032, is delayed from June 18, 2024, until
December 31, 2024.
Compliance date: March 1, 2025.
FOR FURTHER INFORMATION CONTACT: Brian Cook, Acting Director, Office of
Loan Guarantee, Office of Native American Programs, Office of Public
and Indian Housing, Department of Housing and Urban Development, 451
7th Street SW, Room 4108, Washington, DC 20410; telephone number 202-
402-4978 (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 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: On March 20, 2024, HUD published a final
rule titled ``Strengthening the Section 184 Indian Housing Loan
Guarantee Program'' (the Final Rule). The Final Rule amended the
regulations to the Section 184 Indian Housing Loan Guarantee Program
(Section 184 Program). Since its inception, the Section 184 Program has
experienced an increase in demand. As a result, HUD's March 20, 2024,
final rule updated program regulations to minimize potential risk and
increase program participation by financial institutions. The final
rule added eligibility and participation requirements for Lender
Applicants, Direct Guarantee Lenders, Non-Direct Guarantee Lenders,
Holders and Servicers and other Section 184 Program participants. The
final rule also clarified the rules governing Tribal participation in
the program, established underwriting requirements, specifies rules on
the closing and endorsement process, established stronger and clearer
servicing requirements, established program rules governing claims
submitted by Servicers and paid by HUD, and added standards governing
monitoring, reporting, sanctions, and appeals. Lastly, the final rule
added new definitions and makes statutory conforming amendments,
including the categorical exclusion of the Section 184 Program in HUD's
environmental review regulations. The final rule established a June 18,
2024, effective date.
Since publishing the final rule, HUD has determined that additional
time is required to fully implement the rule. Initially, HUD has been
drafting the Section 184 Program Indian Housing Loan Guarantee Program
Handbook (Section 184 Handbook). The Section 184 Handbook will provide
comprehensive guidance and clarification for all stakeholders to fully
understand and implement the final rule. Given the size of the Section
184 Handbook, HUD has determined that it will not be available prior to
the current June 18, 2024, effective date. HUD has also determined that
it needs additional time to ensure compliance with the Paperwork
Reduction Act requirements. Finally, HUD has determined that Tribes,
lenders, servicers, and other participants need additional time to
conform their policies, procedures, and systems to comply with final
rule. As a result of these factors, HUD is delaying the effective date
of the March 20, 2024, final rule from June 18, 2024, until December
31, 2024. In addition, to provide HUD time to complete drafting the
Section 184 Handbook and to provide stakeholders time to implement the
instructions in the Section 184 Handbook, which may not be fully
available before the effective date, HUD is delaying compliance until
March 1, 2025.
Administrative Procedure Act and 24 CFR Part 10
In general, HUD publishes a rule for public comment before issuing
a rule for effect, in accordance with both the Administrative Procedure
Act (APA), 5 U.S.C. 553, and its own regulations on rulemaking, 24 CFR
part 10. Both the APA and Part 10, however, provide for exceptions from
that general rule where HUD finds good cause to omit advance notice and
public participation. The good cause requirement is satisfied when the
prior public procedure is ``impracticable, unnecessary, or contrary to
the public interest.'' To publish a rule for effect prior to receiving
and responding to public comments, the agency must make a finding that
at least one of these ``good cause'' exceptions applies.
HUD has determined that good cause exists to promulgate this final
rule without prior notice and comment. Without this rulemaking, the
final rule published at 89 FR 20032 will become effective June 18,
2024. Given the imminence of the effective date, seeking prior notice
and the opportunity for public comment on this delay is impractical.
Specifically, if prior notice and opportunity for public comment are
required to delay the effective date to December 31, 2024, this final
rule will not be issued prior to June 18, 2024. If this were to happen,
HUD would not be able to provide comprehensive guidance to Tribes,
lenders, servicers, and other participants to assist them in
implementing the requirements of the March 20, 2024, final rule.
Further, implementation of the rule would further be complicated by the
absence of approved paperwork. Finally, this delay will provide Tribes,
lenders, servicers, and other participants time to update their
procedures, policies, and systems to ensure a smooth implementation of
the rule.
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
[[Page 50524]]
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. Executive
Order 14094 (Modernizing Regulatory Review) amends section 3(f) of
Executive Order 12866, among other things. This rule has been
determined not to be a ``significant regulatory action'' as defined in
section 3(f) of the Executive order and therefore was not reviewed by
OMB.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) 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 will not impose any
Federal mandates on any state, local, or tribal government or the
private sector within the meaning of the Unfunded Mandates Reform Act
of 1995.
Environmental Review
A Finding of No Significant Impact with respect to the environment
was made prior to publication of the March 20, 2024, final rule, in
accordance with HUD regulations at 24 CFR part 50, which 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 remains
applicable and 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
Finding of No Significant Impact will also be available for review in
the docket for this rule on <a href="http://Regulations.gov">Regulations.gov</a>.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on state and local governments and
is not required by statute, or preempts state law, unless the relevant
requirements of section 6 of the Executive order are met. 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.
Damon Smith,
General Counsel.
[FR Doc. 2024-13124 Filed 6-13-24; 8:45 am]
BILLING CODE 4210-67-P
</pre></body>
</html>Indexed from Federal Register on June 14, 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.