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Eligibility of Mortgages on Hawaiian Home Lands Insured Under Section 247
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[Federal Register: June 15, 2004 (Volume 69, Number 114)]
[Rules and Regulations]
[Page 33523-33525]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jn04-16]
[[Page 33524]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 203
[Docket No. FR-4779-I-01]
RIN 2502-AH92
Eligibility of Mortgages on Hawaiian Home Lands Insured Under
Section 247
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule amends the regulations regarding eligibility
for mortgages on Hawaiian home lands to reflect a recent statutory
change to the National Housing Act.
DATES: Effective Date: July 15, 2004.
Comment Due Date: August 16, 2004.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule to the Regulations Division, Office of General Counsel, Room
10276, Department of Housing and Urban Development, 451 Seventh Street,
SW., Washington, DC 20410-0500. Electronic comments may be submitted
through Regulations.gov (http://www.regulations.gov). 
Communications should refer to the above docket number and title.
Facsimile (FAX) comments are not acceptable. A copy of each communication
submitted will be available for public inspection and copying between
8 a.m. and 5 p.m. weekdays at the above address.
FOR FURTHER INFORMATION CONTACT: Vance T. Morris, Office of the Deputy
Assistant Secretary for Single Family Housing, Department of Housing
and Urban Development, 451 Seventh Street, SW., Washington, DC 20410-
8000; telephone (202) 708-2121 (this is not a toll-free number).
Hearing- and speech-impaired persons may access this number through TTY
by calling the toll free Federal Information Relay Service at 800-877-
8339.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule implements an amendment to Section 247 of the
National Housing Act (12 U.S.C. 1715z-12) relating to single family
insurance on Hawaiian home lands made by section 215 of the Departments
of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2002 (Pub. L. 107-73, approved November
26, 2001) (FY2002 HUD Appropriations Act). The amendment revised the
definition of the terms ``Hawaiian home lands'' and ``native
Hawaiian.'' Section 215 also changed the eligibility criterion for the
receipt of a leasehold or mortgage insured under section 247 of the
National Housing Act.
II. This Interim Rule
This interim rule amends 24 CFR 203.43i(c)(2) to conform the
existing regulatory definition of the term ``Hawaiian home lands'' to
the revised definition of the term found in section 247(d)(2) of the
National Housing Act. Even though the only change is the addition of
two statutory citations, the inclusion of the citations makes the
regulatory definition consistent with the statutory language. This rule
also amends 24 CFR 203.43i(c)(3) to conform the existing regulatory
definition of the term ``native Hawaiian'' to the revised definition
enacted by section 215 of the FY2002 HUD Appropriations Act. A ``native
Hawaiian'' now is defined as ``any descendant of not less than one-half
part of the blood of the races inhabiting the Hawaiian islands before
January 1, 1778, or, in the case of an individual who is awarded an
interest in a lease of Hawaiian home lands through transfer or
succession, such lower percentage as may be established for such
transfer or succession under section 208 or section 209 of the Hawaiian
Homes Commission Act of 1920 (42 Stat. 111), or under the corresponding
provision of the Constitution of the State of Hawaii adopted under
section 4 of the Act entitled ``An Act to provide for the admission of
the State of Hawaii into the Union'', approved March 18, 1959 (73 Stat.
5).''
Section 247 of the National Housing Act was amended by section
215(2) of the FY2002 HUD Appropriations Act to provide that possession
of a lease of Hawaiian home lands issued under section 207(a) of the
Hawaiian Homes Commission Act of 1920 (42 Stat. 110) shall be necessary
to certify eligibility to obtain an insured mortgage. Therefore, 24 CFR
203.43i(i) is amended to state that, in addition to all the other
eligibility requirements set forth in subpart A of 24 CFR part 203,
possession of a lease issued under section 207 of the Hawaiian Homes
Commission Act of 1920, which has been certified by the Department of
Hawaiian Home Lands as being valid, current, and not in default, will
be sufficient to satisfy the eligibility of a mortgagor for an insured
mortgage under this section. Such certification is customary when a
leasehold is the security for a mortgage transaction.
This rule amends 24 CFR 203.43i(h) also as a result of the
amendment made by section 215(2) of the FY2002 HUD Appropriations Act.
The restrictive language in Sec. 203.43i(h) with respect to assumption
of the leasehold is removed. As a consequence of the enactment of
section 215(2), this rule eliminates the requirement for a
certification from the Department of Hawaiian Home Lands that the
mortgagor (lessee) qualifies as a native Hawaiian; therefore, the
requirement for a certification when a leasehold is assumed also is
eliminated.
Findings and Certifications
Justification for Interim Rulemaking
In general, the Department 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 in Sec. 10.1 for exceptions from that general rule where the
Department 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.''
The Department finds that good cause exists to publish this interim
rule for effect without first soliciting public comment. The amendments
enacted by Section 215 of the FY2002 HUD Appropriations Act, discussed
above, are fairly prescriptive and allow little, if any, discretion in
defining a ``native Hawaiian'' or ``Hawaiian home lands'' or in setting
forth the procedure for a qualified lessee to establish proof of
eligibility for mortgage insurance. Moreover, the regulatory text
reflects the amendatory language of Section 215 without any substantive
change. Accordingly, the Department believes that it is in the public
interest to publish this interim rule to make the statutory amendments
effective as soon as possible and that prior public procedure is
unnecessary. Although the Department is publishing this interim rule
for effect, the Department is inviting and welcomes public comment on
the rule. Comments received in response to the published interim rule
will be considered during development of a final rule that will
supersede this interim rule.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
for this rule has been made in accordance with HUD regulations at 24
CFR part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969. The Finding of No Significant Impact
is available for public inspection between 8 a.m. and 5 p.m. weekdays in
[[Page 33525]]
the Regulations Division, Office of the General Counsel, Department of
Housing and Urban Development, Room 10276, 451 Seventh Street, SW.,
Washington, DC 20410-5000.
Unfunded Mandates Reform Act
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 on
the private sector. This rule does not impose a federal mandate on any
state, local, or tribal government, or on the private sector, within
the meaning of the Unfunded Mandates Reform Act of 1995.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this rule before publication and by
approving it certifies that this rule does not have a significant
economic impact on a substantial number of small entities. There are no
anti-competitive discriminatory aspects of the rule with regard to
small entities, and there are no unusual procedures that would need to
be complied with by small entities. The rule would facilitate FHA
insurance of mortgages on leaseholds held by native Hawaiians. Although
HUD has determined that this rule would not have a significant economic
impact on a substantial number of small entities, HUD welcomes comments
regarding any less burdensome alternative to this rule that will meet
HUD's objectives as described in this preamble.
Executive Order 12866, Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this rule under
Executive Order 12866, Regulatory Planning and Review. OMB determined
that this rule is a ``significant regulatory action'' as defined in
section 3 (f) of the order (although not economically significant, as
provided in section 3 (f)(1) of the order). Any changes made to the
rule subsequent to its submission to OMB are identified in the docket
file, which is available for public inspection in the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, Room 10276, 451 Seventh Street, SW., Washington, DC 20410-
0500.
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.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number is 14.117.
List of Subjects in 24 CFR Part 203
Hawaiian Natives, Home improvement, Indian-lands, Loan programs-
housing and community development, Mortgage insurance, Reporting and
recordkeeping requirements, solar energy.
? Accordingly, for the reasons described in the preamble, HUD amends 24
CFR part 203 as follows:
PART 203--SINGLE FAMILY MORTGAGE INSURANCE
? 1. The authority citation for part 203 continues to read as follows:
Authority: 12 U.S.C. 1709, 1710, 1715b, and 1715u; 42 U.S.C.
3535(d)
? 2. Amend Sec. 203.43i to revise paragraphs (c)(2) and (3), (h), and
(i) to read as follows:
Sec. 203.43i Eligibility of mortgages on Hawaiian Home Lands insured
pursuant to section 247 of the National Housing Act.
* * * * *
(c)(1) * * *
(2) Hawaiian home lands means all lands given the status of
Hawaiian home lands under section 204 of the Hawaiian Homes Commission
Act of 1920 (42 Stat. 110), or under the corresponding provision of the
Constitution of the State of Hawaii adopted under section 4 of the Act
entitled ``An Act to provide for the admission of the State of Hawaii
into the Union,'' approved March 18, 1959 (73 Stat. 5).
(3) Native Hawaiian means any descendant of not less than one-half
part of the blood of the races inhabiting the Hawaiian islands before
January 1, 1778, or, in the case of an individual who is awarded an
interest in a lease of Hawaiian home lands through transfer or
succession, such lower percentage as may be established for such
transfer or succession under section 208 or 209 of the Hawaiian Homes
Commission Act of 1920 (42 Stat.111), or under the corresponding
provision of the Constitution of the State of Hawaii adopted under
section 4 of the Act entitled ``An Act to provide for the admission of
the State of Hawaii into the Union,'' approved March 18, 1959 (73 Stat.
5).
* * * * *
(h) Form of lease. The form of lease must be approved by both HUD
and the Department of Hawaiian Home Lands (DHHL). The lease may not be
terminated by DHHL without the approval of the Secretary while the
mortgage is insured or held by the Secretary.
(i) Eligibility of mortgagor. In addition to the eligibility
requirements contained in this subpart, possession of a lease of
Hawaiian home lands issued under section 207(a) of the Hawaiian Homes
Commission Act of 1920 (42 Stat.110) that has been certified by the
Department of Hawaiian Home Lands as being valid, current, and not in
default, shall be sufficient to certify eligibility to receive a
mortgage to be insured under this section.
Dated: May 19, 2004.
Sean Cassidy,
General Deputy Assistant Secretary for Housing.
[FR Doc. 04-13431 Filed 6-14-04; 8:45 am]
BILLING CODE 4210-27-P