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Annual Guarantee Fee Due Date

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 [Federal Register: October 4, 2006 (Volume 71, Number 192)]
[Proposed Rules]
[Page 58545-58546]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04oc06-22]

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3565
RIN 0575-AC62
 
Annual Guarantee Fee Due Date

AGENCY: Rural Housing Service, USDA.
ACTION: Proposed rule.

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SUMMARY: The Rural Housing Service, an Agency under USDA Rural 
Development, is proposing to amend its regulations to change the due 
date of the annual guarantee fee. The annual fee is a non-refundable 
amount that the lender must pay each year that the loan guarantee 
remains in effect. Currently, the Finance Office in St. Louis 
calculates annual fees manually since the borrower submissions of 
December 31 year-end financial information are not loaded into their 
automated systems by January 1, when annual fees are due. The Finance 
Office has requested that the annual fee due date be changed from 
January 1 to February 28 to allow their automated systems to be 
uploaded with December 31 year-end information thus enabling them to 
automate the annual fee calculation process.

DATES: Written or e-mail comments must be received on or before 
December 4, 2006.

ADDRESSES: You may submit comments to this proposed rule by any of the 
following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Mail: Submit written comments via the U.S. Postal Service to the 
Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, STOP 0742, 1400 Independence Avenue SW., 
Washington, DC 20250-0782.
    Hand Delivery/Courier: Submit written comments via mail courier 
service requiring a street address to the Branch Chief, Regulations and 
Paperwork Management Branch, U.S. Department of Agriculture, 300 7th 
Street, SW., 7th Floor, Suite 701, Washington, DC 20024.
    All written comments will be available for public inspection during 
regular work hours at the 300 7th Street, SW., address listed above.

FOR FURTHER INFORMATION CONTACT: C.B. Alonso, Guaranteed Rural Rental 
Housing Program, Multi Family Housing Processing Division, Rural 
Housing Service, U.S. Department of Agriculture, STOP 0781, 1400 
Independence Avenue SW., Washington, DC 20250-0781; Telephone: 202-720-
1624; Fax: 202-205-5066; E-mail: cb.alonso@wdc.usda.gov.

SUPPLEMENTARY INFORMATION: 

Classification

    This has been reviewed under Executive Order 12866. The rule has 
been determined not to be significant for the purposes of Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget (OMB).

Regulatory Flexibility Act

    The Agency Administrator has determined that this proposed rule 
will not have a significant economic impact on a substantial number of 
small entities as defined in the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.). New provisions included in this proposed rule will not 
impact a substantial number of small entities to a greater extent than 
large entities. Therefore, a regulatory flexibility analysis was not 
performed.

Paperwork Reduction Act

    There are no new reporting or recordkeeping requirements associated 
with this proposed rule.

Unfunded Mandates Reform Act

    This proposed rule contains no Federal mandates (under the 
regulatory provisions of title II of the Unfunded Mandates Reform Act 
of 1995) for State, local, and tribal governments or the private 
sector. Thus, this proposed rule is not subject to the requirements of 
sections 202 and 205 of the Unfunded Mandates Reform Act of 1995.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' The Agency has determined that 
this action does not constitute a major Federal action affecting 
significantly the quality of the human environment, and, in accordance 
with the National Environmental Policy Act of 1969, Public Law 91-190, 
an Environmental Impact Statement is not required.

Programs Affected

    The program affected is listed in the Catalog of Federal Domestic 
Assistance under Number 10.438--Rural Rental Housing Guaranteed Loans.

Intergovernmental Consultation

    For the reasons contained in the Final Rule related Notice to 7 CFR 
part 3015, subpart V, this program, 10.438--Rural Rental Housing 
Guaranteed Loans, is subject to Executive Order 12372 which requires 
intergovernmental consultation with State and local officials. The 
Agency has conducted intergovernmental consultation in the manner 
delineated in RD Instruction 1940-J.

Executive Order 13132, Federalism

    The policies contained in this proposed rule do not have any 
substantial direct effect on States, the relationship between the 
National Government and the States, or the distribution of power and 
responsibilities among the various levels of government. Nor does this 
proposed rule impose substantial direct compliance costs on State and 
local Governments. Therefore, consultation with the States is not required.

Discussion

    Rural Development administers the Section 538 Guaranteed Rural 
Rental Housing Program (GRRHP) under the authority of the Housing Act 
of 1949. Under the GRRHP, Rural Development guarantees loans for the 
development of housing and related facilities for low or moderate-
income families in rural areas.
    Rural Development is amending 7 CFR 3565.53(b) to change the due 
date of the annual guarantee fee. The annual fee is a non-refundable 
amount that the lender must pay each year that the loan guarantee 
remains in effect. Currently, the Finance Office in St. Louis 
calculates annual fees manually since the borrower submissions of 
December 31 year-end financial information are not loaded into the 
Finance Office's automated systems by January 1, when

[[Page 58546]]

annual fees are due. The Finance Office has requested that the annual 
fee due date be changed from January 1 to February 28 to allow their 
automated systems to be uploaded with December 31 year-end information. 
The revision of 7 CFR 3565.53(b) will facilitate the automation of the 
annual fee calculation process.

List of Subjects in 7 CFR Part 3565

    Guaranteed loans, Low and moderate income housing, Surety bonds.

    For the reasons set forth in the preamble, Title 7, Chapter XXXV of 
the Code of Federal Regulations is proposed to be amended as follows:

PART 3565--GUARANTEED RURAL RENTAL HOUSING PROGRAM

    1. The authority citation for part 3565 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart B--Guarantee Requirements

    2. Section 3565.53(b) is revised to read as follows:

Sec.  3565.53  Guarantee fees.

* * * * *
    (b) Annual guarantee fee. An annual guarantee fee of at least 50 
basis points (one-half percent) of the outstanding principal amount of 
the loan will be charged each year or portion of a year that the 
guarantee is in effect. This fee will be collected on February 28, of 
each calendar year.
* * * * *

    Dated: September 15, 2006.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. E6-16399 Filed 10-3-06; 8:45 am]
BILLING CODE 3410-XV-P

 
 

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