Rule2026-04447
Removal of Regulations for Renewal Communities Designations
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
March 6, 2026
Effective
April 6, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
This rule removes HUD's Renewal Communities regulations because the designations were time limited, and all incentives have been repealed and sunset.
Full Text
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<title>Federal Register, Volume 91 Issue 44 (Friday, March 6, 2026)</title>
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[Federal Register Volume 91, Number 44 (Friday, March 6, 2026)]
[Rules and Regulations]
[Pages 10970-10971]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04447]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 599
[Docket No. FR-6582-F-01]
Removal of Regulations for Renewal Communities Designations
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Final rule.
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SUMMARY: This rule removes HUD's Renewal Communities regulations
because the designations were time limited, and all incentives have
been repealed and sunset.
DATES: Effective Date: April 6, 2026.
FOR FURTHER INFORMATION CONTACT: Wesley Armstrong, Department of
Housing and Urban Development, 451 7th Street SW, Room 7200,
Washington, DC 20410; telephone number 202-402-2107 (this is not a
toll-free number); email <a href="/cdn-cgi/l/email-protection#217644524d44580f730f60534c5255534e4f46614954450f464e57"><span class="__cf_email__" data-cfemail="c99eacbaa5acb0e79be788bba4babdbba6a7ae89a1bcade7aea6bf">[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
The Community Renewal Tax Relief Act of 2000 (CRTR Act), enacted
through the Omnibus Consolidated and Emergency Supplemental
Appropriations Act for Fiscal Year 2001 (Pub. L. 106-554, 114 Stat.
2763), authorized the designation of Renewal Communities (RCs). Under
the CRTR Act, HUD had authority to designate up to 40 RCs, at least 12
of which were required to be rural communities. Once designated, RCs
would receive special tax incentives administered by the Treasury
Department, including zero-percent capital gains rate, renewal
community employment credit, and commercial revitalization deductions,
while HUD assisted RCs in planning and organizing development in
conjunction with State and local governments.
On July 7, 2001, HUD published an interim final rule (66 FR 35850)
defining key terms, establishing eligibility requirements, procedures
for designation of RCs, and post-designation requirements applicable to
RCs, with minor technical corrections issued on August 8, 2001 (66 FR
52675 to remove arson from the list of offenses included for purposes
of determining the Local Crime Index. Designations were effective
January 1, 2002, through ``the earliest of: (a) December 31, 2009; (b)
The termination date designated by the State and local governments in
their nomination application, if any; or (c) The date HUD revokes the
designation.'' 24 CFR 599.501.
On January 24, 2002, HUD announced the designated Renewal
Communities, with 28 urban areas and 12 rural. On October 3, 2003, HUD
published a final rule (68 FR 57604) adopting the interim final rule
without changes. Tax incentive designations were later extended to
December 31, 2011, by Sec. 753(a) of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 (Pub. L. 111-
312; 26 U.S.C. 1 note), in line with Empowerment Zone timelines.
The Renewal Communities provisions were removed by Sec. 401(d)(5)
of the Tax Technical Corrections Act of 2018, which allowed for a
gradual phase out of existing benefits. All designations have now been
fully sunset.
II. This Final Rule
This rule is removing the Renewal Communities regulations, part
599, from title 24 of the Code of Federal Regulations. HUD is removing
these regulations because the Renewal Communities designations have
been
[[Page 10971]]
sunset or repealed and have been succeeded by other economic incentives
such as Opportunity Zones. As a result, the regulations in part 599 are
not in use, and removing these regulations would update HUD's
regulations and provide clarity to grantees on what programs are
actively being funded.
III. Justification for Final Rulemaking
In accordance with regulations at 24 CFR part 10, it is the
practice of the Department to offer interested parties an opportunity
to comment on proposed regulations. 24 CFR part 10 provides narrow
exceptions to the notice and comment requirements if the Department
finds good cause to omit notice and public participation. The good
cause requirement under 24 CFR 10.1 may be satisfied when notice and
public comment are impracticable, unnecessary, or contrary to the
public interest. To publish a rule prior to receiving and responding to
public comments, the agency must find that at least one good cause
exceptions is applicable.
HUD has determined that good cause exists to promulgate this final
rule without prior notice and comment. Specifically, the Department has
concluded that it is unnecessary to solicit and respond to public
comments on the deletion of regulations when the designations are no
longer in use and statutory authorization for the incentives repealed
in 2018. Accordingly, HUD has concluded there is good cause to publish
this rule prior to receiving and responding to public comments.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
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 Executive
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 approaches that reduce burdens and maintain flexibility and
freedom of choice for the public. This rule eliminates language in 24
CFR part 599 relating to a designation no longer used and without
statutory authority since 2018. Accordingly, this rule has been
determined not to be a ``significant regulatory action'' as defined in
section 3(f) of Executive Order 12866.
Regulatory Costs--Executive Order 14192
Executive Order 14192, entitled ``Unleashing Prosperity Through
Deregulation,'' was issued on January 31, 2025. Section 3(c) of
Executive Order 14192 requires that any new incremental costs
associated with new regulations shall, to the extent permitted by law,
be offset by the elimination of existing costs associated with at least
10 prior regulations. OMB has determined that this final rule does not
impose any regulatory costs as the regulations relate to designations
that are all expired and is a repeal of a regulation for purposes of
Executive Order 14192.
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.
Environmental Impact
This 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).
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either: (i) imposes substantial direct compliance costs on State and
local governments and is not required by statute, or (ii) 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
et seq.) (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.
List of Subjects in 24 CFR Part 599
Community development, Economic development, Housing, Indians,
Intergovernmental relations, Renewal communities, Reporting and
recordkeeping requirements, Urban areas.
PART 599 [REMOVED]
0
Accordingly, for the reasons discussed in the preamble, and pursuant to
the Secretary's authority under 42 U.S.C. 3535(d), HUD removes 24 CFR
part 599.
Ronald Kurtz,
Assistant Secretary for Community Planning and Development.
[FR Doc. 2026-04447 Filed 3-5-26; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on March 6, 2026.
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