Rule2024-13697
Single Family Housing Section 504 Repair Pilot
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 24, 2024
Effective
June 24, 2024
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), is issuing this document to continue to waive two regulatory requirements for the Section 504 Direct Single Family Housing Loans and Grants (DSFHLG) pilot program while the Agency contemplates a future rulemaking to remove regulatory barriers to assist eligible applicants with improved ease of use for very low-income homeowners seeking to repair or rehabilitate their homes. This document briefly discusses the waivers that the Agency intends to continue and provides contact information for additional details about the pilot program.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 121 (Monday, June 24, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 121 (Monday, June 24, 2024)]
[Rules and Regulations]
[Pages 52355-52356]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-13697]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 89, No. 121 / Monday, June 24, 2024 / Rules
and Regulations
[[Page 52355]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3550
[Docket No. RHS-24-SFH-0017]
Single Family Housing Section 504 Repair Pilot
AGENCY: Rural Housing Service, USDA.
ACTION: Notification of waivers.
-----------------------------------------------------------------------
SUMMARY: The Rural Housing Service (RHS or the Agency), a Rural
Development agency of the United States Department of Agriculture
(USDA), is issuing this document to continue to waive two regulatory
requirements for the Section 504 Direct Single Family Housing Loans and
Grants (DSFHLG) pilot program while the Agency contemplates a future
rulemaking to remove regulatory barriers to assist eligible applicants
with improved ease of use for very low-income homeowners seeking to
repair or rehabilitate their homes. This document briefly discusses the
waivers that the Agency intends to continue and provides contact
information for additional details about the pilot program.
DATES: Effective dates: The effective date of the two regulatory
waivers is June 24, 2024. The duration of the pilot program is
anticipated to continue until June 24, 2026, at which time the RHS may
extend the pilot program (with or without modifications) or terminate
it depending on the workload and resources needed to administer the
program, feedback from the public, funding constraints and the
effectiveness of the program. If the pilot program is extended or
terminated, the RHS will notify the public.
FOR FURTHER INFORMATION CONTACT: Anthony Williams, Management and
Program Analyst, Special Programs, Single Family Housing Direct Loan
Division, Rural Development, U.S. Department of Agriculture, Email:
<a href="/cdn-cgi/l/email-protection#34555a405c5b5a4d581a435d58585d55594774414750551a535b42"><span class="__cf_email__" data-cfemail="1a7b746e7275746376346d737676737b77695a6f697e7b347d756c">[email protected]</span></a>; Phone: (202) 720-9649.
SUPPLEMENTARY INFORMATION:
Authority: Title V, Section 504 of the Housing Act of 1949, as
amended; 42 U.S.C. 1474.
Background
The RHS offers a variety of programs to build or improve housing
and essential community facilities in rural areas. The Agency offer
loans, grants, and loan guarantees for single- and multifamily housing,
child-care centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, housing
for farm laborers and much more. RHS also provides technical assistance
loans and grants in partnership with non-profit organizations, Indian
tribes, state and Federal government agencies, and local communities.
The RHS Single Family Housing Direct Loans and Grants Program
(SFHDLGP) Division implements the Section 504 loan/grant program under
7 CFR part 3550 with the objective to assist very low-income owner
occupants of modest single-family homes in rural areas repair or
rehabilitate their homes. Loan funds are available for repairs to
improve or modernize a home, make it safer or more sanitary, or remove
health and safety hazards. The eligibility requirements, as described
in 7 CFR 3550.103, states that homeowner must be unable to obtain
affordable credit elsewhere at reasonable terms and conditions but must
demonstrate a reasonable ability to repay the Section 504 loan. For
homeowners 62 years old and over, grant funds are available to correct
health or safety hazards, or remodel dwellings to make them accessible
to a household member with a disability.
RHS may authorize limited demonstration programs to test new
approaches to offering housing under the statutory authority granted to
the Secretary, as set forth in 7 CFR 3550.7. Such demonstration
programs may not be consistent with some of the provisions contained in
this part. However, any program requirements that are statutory will
remain in effect.
In 2019, the Agency initiated the Section 504 pilot program to
evaluate existing regulations and remove regulatory barriers to assist
very low-income homeowners seeking to repair or rehabilitate their
homes. The pilot program has been successful in creating additional
opportunities and greater accessibility for eligible applicants. All
but two of the waived regulatory requirements were included in the
Direct Singe Family Loans and Grants Programs Final rule (87 FR 6761),
which became effective on March 9, 2022.
Section 504 Pilot Regulatory Waivers
The Agency is continuing the Section 504 Pilot Program with the two
waivers that were not included in the Final rule (87 FR 6761), but were
subsequently included in the notification of waivers (87 FR 40709)
published in the Federal Register on July 8, 2022 (which expires on
July 8, 2024). The Agency anticpates a rulemaking in the future that
will codify the waivers into 7 CFR part 3550, and which will be applied
program-wide.
The first waiver is that pilot applicants are not subject to the
site requirement outlined in 7 CFR 3550.105(b) which states that ``the
site must not be large enough to be subdivided into more than one site
under existing local zoning ordinances.'' While pilot applicants can
have subdividable sites, their homes must meet the other site
requirements found in 7 CFR 3550.105(a) and the dwelling requirements
found in 7 CFR 3550.106.
The second waiver is that pilot applicants are not subject to the
same appraisal threshold outlined in 7 CFR 3550.111, which requires an
appraisal when the Section 504 debt to be secured exceeds $15,000 or
whenever the Agency determines that an appraisal is necessary to
establish the adequacy of the security. A ``subject to repairs''
appraisal and appraisal fee will be required when the assessed
valuation by local authorities does not support a fully secured
interest by the Agency, or when the sum of all secured (Rural
Development or non-Rural Devleopment) indebtedness including the
proposed repair loan, exceeds $25,000.
Eligibility Requirements
Eligible participants in the Section 504 program must abide by the
requriements set forth in 7 CFR part 3550. The following twenty-three
(23) States and U.S. Territories are selected to provide wide
geographic and historic
[[Page 52356]]
production variation for the pilot: California, Hawaii, Illinois,
Indiana, Iowa, Kentucky, Maine, Michigan, Mississippi, New Jersey, New
Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Puerto
Rico, South Carolina, Texas, Tennessee, Virginia, Washington, and West
Virginia. If an existing borrower in a pilot state qualifies for a
subsequent loan or grant, the pilot conditions can apply to the
subsequent request as appropriate. Non-pilot states may request case-
by-case administrative waivers (if justified) that mirror the
allowances in the pilot.
Paperwork Reduction Act
The regulatory waivers for this pilot contains no new reporting or
recordkeeping burdens under OMB control number 0575-0179 that would
require approval under the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35).
Non-Discrimination Statement
In accordance with Federal civil rights laws and 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="http://www.ascr.usda.gov/complaint_filing_cust.html">http://www.ascr.usda.gov/complaint_filing_cust.html</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#bfefcdd0d8cdded291f6d1cbded4daffcaccdbde91d8d0c9"><span class="__cf_email__" data-cfemail="b7e7c5d8d0c5d6da99fed9c3d6dcd2f7c2c4d3d699d0d8c1">[email protected]</span></a>.
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2024-13697 Filed 6-21-24; 8:45 am]
BILLING CODE 3410-XV-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on June 24, 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.