![[logo] US EPA](http://www.epa.gov/epafiles/images/logo_epaseal.gif){kind=logo}
Section 8 Housing Choice Voucher Program; Expansion of Payment Standard Protection
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: July 10, 2000 (Volume 65, Number 132)]
[Rules and Regulations]
[Page 42507-42509]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jy00-19]
[[Page 42507]]
-----------------------------------------------------------------------
Part IV
Department of Housing and Urban Development
-----------------------------------------------------------------------
24 CFR Part 982
Section 8 Housing Choice Voucher Program; Expansion of Payment Standard
Protection; Interim Rule
[[Page 42508]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 982
[Docket No. FR-4586-I-01]
RIN 2577-AC18
Section 8 Housing Choice Voucher Program; Expansion of Payment
Standard Protection
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: On October 21, 1999, HUD published a final rule implementing
the statutory merger of the Section 8 tenant-based and certificate
programs into the new Housing Choice Voucher program. This interim rule
amends HUD's regulations governing this new merger program to expand
the regulatory payment standard protection against subsidy reduction.
The October 21, 1999 final rule limited payment standard protection to
the first 24 months of the lease term. The interim rule provides that a
family is not subject to a subsidy reduction until the second regular
reexamination of family income and composition following the payment
standard reduction. This protection extends for the duration of the
lease term. This interim rule also corrects a typographical error
contained in the October 21, 1999 final rule.
DATES: Effective Date: August 9, 2000. Comment Due Date: September 8,
2000.
FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Real
Estate and Housing Performance Division, Office of Public and Indian
Housing, Department of Housing and Urban Development, Room 4220, 451
Seventh Street, SW, Washington, DC 20410; telephone (202) 708-0477,
extension 4069 (this is not a toll-free number). Hearing or speech
impaired individuals may access this number via TTY by calling the
toll-free Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On October 21, 1999 (64 FR 56894), HUD published a final rule
implementing the Section 8 tenant-based program provisions of the
Quality Housing and Work Responsibility Act of 1998 (Title V of the FY
1999 HUD Appropriations Act; Pub.L. 105-276, approved October 21, 1998)
(referred to as the ``Public Housing Reform Act''). Of particular
significance, the October 21, 1999 final rule implemented section 545
of the Public Housing Reform Act. Section 545 provides for the complete
merger of the Section 8 tenant-based certificate and voucher programs.
HUD's regulations for the new Section 8 merger program (known as the
``Housing Choice Voucher program'') are located at 24 CFR part 982.
The October 21, 1999 final rule became effective on November 22,
1999. The final rule was preceded by HUD's publication of an interim
rule on May 14, 1999 (64 FR 56894). The final rule took into
consideration the public comments received on the interim rule, and
most of the changes made at the final rule stage were in response to
public comment.
II. This Interim Rule
The October 21, 1999 final rule amended the part 982 regulations to
provide that payment standard protection will only apply during the
first two years of the lease term. After the first two years of the
lease, a family's subsidy would be based on the appropriate payment
standard determined at the last regular annual reexamination of family
income.
On reconsideration, HUD believes that this provision is too
restrictive. HUD wishes to provide the benefit of protected subsidy
levels to a greater number of assisted families--not just to new
participants in the Housing Choice Voucher program, or assisted
families moving to a new unit. HUD believes payment standard protection
should extend for the duration of the lease term, and not be restricted
to a limited number of years.
Accordingly, HUD is amending 24 CFR part 982 to expand the
regulatory payment standard protection. This interim rule provides that
a family is not subject to a subsidy reduction until the second regular
reexamination of family income and composition following the payment
standard reduction. This protection extends for the duration of the
lease term.
This final rule also corrects a typographical error contained in
the October 21, 1999 final rule. Specifically, the interim rule
corrects Sec. 982.501(c), which mistakenly provides that the provisions
of Sec. 982.521 apply solely to a tenancy under the Section 8 rental
certificate program.
III. Justification for Interim Rulemaking
In general, HUD publishes a rule for public comment before issuing
a rule for effect, in accordance with its own regulations on rulemaking
at 24 CFR part 10. Part 10, however, does 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'' (24 CFR 10.1). HUD finds that good cause exists
to publish this rule for effect without first soliciting public
comment, in that prior public procedure is contrary to the public
interest. The reasons for HUD's determination are as follows.
HUD believes that the limits on payment standard protection
established by the October 21, 1999 final rule are too restrictive. The
interim rule corrects this error by providing assisted families with
broader and more equitable regulatory safeguards against reductions in
subsidy. Specifically, the interim rule extends the regulatory payment
standard protection to all assisted families, not just to new program
participants and assisted families moving to a new unit.
Delaying the effectiveness of this interim rule to solicit prior
public comment would result in uncertainty among PHAs and affected
families, as PHAs consider adjustments in payment standards under the
existing requirements of the October 21, 1999 final rule without
knowing the full scope of the additional regulatory changes to be made
by HUD. Immediate effectiveness of this interim rule will reduce this
uncertainty, and will allow PHAs to make payment standard adjustments
knowing the likely implications of these decisions. Neither PHAs nor
Section 8 residents will be disadvantaged by the change.
HUD also notes that the new Housing Choice Voucher program was
implemented through an extensive public process, including three public
forums across the nation, as well as the customary notice and comment
rulemaking procedures.
Although HUD believes that good cause exists to publish this rule
for effect without prior public comment, HUD recognizes the value of
public comment in the development of its regulations. HUD has,
therefore, issued these regulations on an interim basis and has
provided the public with a 60-day comment period. HUD welcomes comment
on the regulatory amendments made by this interim rule. The public
comments will be addressed in the final rule.
IV. Findings and Certifications
Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this rule under
Executive Order 12866, Regulatory Planning and Review. OMB determined
[[Page 42509]]
that this rule is a ``significant regulatory action'' as defined in
section 3(f) of the Order (although not an economically significant
regulatory action under the Order). Any changes made to this rule as a
result of that review are identified in the docket file, which is
available for public inspection in the office of the Department's Rules
Docket Clerk, Room 10276, 451 Seventh Street, SW, Washington, DC 20410-
0500.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
was prepared on the October 21, 1999 final rule in accordance with the
HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of
the National Environmental Policy Act (42 U.S.C. 4223). That Finding is
applicable to this interim rule, and is available for public inspection
between the hours of 7:30 a.m. and 5:30 p.m. weekdays in the Office of
the Rules Docket Clerk, Office of General Counsel, Room 10276,
Department of Housing and Urban Development, 451 Seventh Street, SW,
Washington, DC.
Regulatory Flexibility Act
The Secretary has reviewed this interim rule before publication and
by approving it certifies, in accordance with the Regulatory
Flexibility Act (5 U.S.C. 605(b)), that this interim rule would not
have a significant economic impact on a substantial number of small
entities. The interim rule is exclusively concerned with public housing
agencies that administer tenant-based housing assistance under Section
8 of the United States Housing Act of 1937. Specifically, the final
rule would establish requirements governing tenant-based assistance for
an eligible family. The interim regulatory amendments would not change
the amount of funding available under the Section 8 voucher program.
Accordingly, the economic impact of this rule will not be significant,
and it will not affect a substantial number of small entities.
Federalism Impact
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 interim rule would not have
federalism implications and would 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) requires Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and on
the private sector. This interim rule does not impose, within the
meaning of the UMRA, any Federal mandates on any State, local, or
tribal governments or on the private sector.
Catalog of Federal Domestic Assistance
The Catalog of Domestic Assistance number for this program is
14.855.
List of Subjects in 24 CFR Part 982
Grant programs--housing and community development, Rent subsidies.
Accordingly, for the reasons discussed in the preamble, HUD is
amending 24 CFR part 982 as follows:
PART 982--SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER
PROGRAM
1. The authority citation for part 982 continues to read as
follows:
Authority: 42 U.S.C. 1437f and 3535(d).
2. In Sec. 982.501(c), revise the reference to ``982.520, and
982.521'' to read ``and 982.520.''
3. Amend Sec. 982.505 by revising paragraphs (c)(3), (c)(4), and
(c)(5) to read as follows:
Sec. 982.505 Voucher tenancy: How to calculate housing assistance
payment.
* * * * *
(c) * * *
(3) Decrease in the payment standard amount during the HAP contract
term. If the amount on the payment standard schedule is decreased
during the term of the HAP contract, the lower payment standard amount
generally must be used to calculate the monthly housing assistance
payment for the family beginning at the effective date of the family's
second regular reexamination following the effective date of the
decrease in the payment standard amount. The PHA must determine the
payment standard for the family as follows.
(i) Step 1: At the first regular reexamination following the
decrease in the payment standard amount, the PHA shall determine the
payment standard for the family in accordance with paragraphs (c)(1)
and (c)(2) of this section (using the decreased payment standard
amount).
(ii) Step 2 (first reexamination payment standard amount): The PHA
shall compare the payment standard amount from step 1 to the payment
standard amount last used to calculate the monthly housing assistance
payment for the family. The payment standard amount used by the PHA to
calculate the monthly housing assistance payment at the first regular
reexamination following the decrease in the payment standard amount is
the higher of these two payment standard amounts. The PHA shall advise
the family that the application of the lower payment standard amount
will be deferred until the second regular reexamination following the
effective date of the decrease in the payment standard amount.
(iii) Step 3 (second reexamination payment standard amount): At the
second regular reexamination following the decrease in the payment
standard amount, the lower payment standard amount shall be used to
calculate the monthly housing assistance payment for the family unless
the PHA has subsequently increased the payment standard amount, in
which case the payment standard amount is determined in accordance with
paragraph (c)(4) of this section.
(4) Increase in the payment standard amount during the HAP contract
term. If the payment standard amount is increased during the term of
the HAP contract, the increased payment standard amount shall be used
to calculate the monthly housing assistance payment for the family
beginning at the effective date of the family's first regular
reexamination on or after the effective date of the increase in the
payment standard amount.
(5) Change in family unit size during the HAP contract term.
Irrespective of any increase or decrease in the payment standard
amount, if the family unit size increases or decreases during the HAP
contract term, the new family unit size must be used to determine the
payment standard amount for the family beginning at the family's first
regular reexamination following the change in family unit size.
Dated: June 15, 2000.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 00-17024 Filed 7-7-00; 8:45 am]
BILLING CODE 4210-33-P