80 FR 36830 - Rental Assistance Demonstration: Revised Program Notice

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 123 (June 26, 2015)

Page Range		36830-36832
FR Document		2015-15764
On July 26, 2012, HUD announced through notice in the Federal Register the implementation of the statutorily authorized Rental Assistance Demonstration (RAD), which provides the opportunity to test the conversion of public housing and other HUD-assisted properties to long-term, project-based section 8 rental assistance. The July 26, 2012, Federal Register notice also announced the availability of the program notice (PIH 2012-32), providing program instruction on HUD's Web site. On July 2, 2013, HUD issued a revised program notice (PIH 2012-32, REV-1). This Federal Register notice announces further revisions to RAD and solicits public comment on changed eligibility and selection criteria. It also announces the posting of a further revised program notice (Revised Program Notice, PIH 2012-32, REV-2). As provided by the RAD Statute, this notice addresses the requirement that the demonstration may proceed after publication of notice of its terms in the Federal Register. This notice summarizes the key changes made to PIH 2012-32, REV-1. This notice also meets the RAD statutory requirement to publish at least 10 days before they may take effect, waivers and alternative requirements authorized by the statute, which does not prevent the demonstration from proceeding immediately.
Federal Register, Volume 80 Issue 123 (Friday, June 26, 2015)
[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)]
[Notices]
[Pages 36830-36832]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15764]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5630-N-07]


Rental Assistance Demonstration: Revised Program Notice

AGENCY: Office of the Assistant Secretary for Public and Indian Housing 
and Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: On July 26, 2012, HUD announced through notice in the Federal 
Register the implementation of the statutorily authorized Rental 
Assistance Demonstration (RAD), which provides the opportunity to test 
the conversion of public housing and other HUD-assisted properties to 
long-term, project-based section 8 rental assistance. The July 26, 
2012, Federal Register notice also announced the availability of the 
program notice (PIH 2012-32), providing program instruction on HUD's 
Web site. On July 2, 2013, HUD issued a revised program notice (PIH 
2012-32, REV-1). This Federal Register notice announces further 
revisions to RAD and solicits public comment on changed eligibility and 
selection criteria. It also announces the posting of a further revised 
program notice (Revised Program Notice, PIH 2012-32, REV-2). As 
provided by the RAD Statute, this notice addresses the requirement that 
the demonstration may proceed after publication of notice of its terms 
in the Federal Register. This notice summarizes the key changes made to 
PIH 2012-32, REV-1. This notice also meets the RAD statutory 
requirement to publish at least 10 days before they may take effect, 
waivers and alternative requirements authorized by the statute, which 
does not prevent the demonstration from proceeding immediately.

DATES: Comment Due Date: July 27, 2015. Interested persons are invited 
to submit comments electronically to [email protected] no later than the 
comment due date. Effective Dates: The Revised Program Notice, PIH 
2012-32, REV-2, other than those items listed as subject to notice and 
comment or new statutory or regulatory waivers or alternative 
requirements specified in this notice, is effective June 26, 2015
    The new statutory and regulatory waivers and alternative 
requirements are effective July 6, 2015.
    The items listed as subject to notice and comment will be effective 
upon July 27, 2015. If HUD receives adverse comment that leads to 
reconsideration, HUD will notify the public in a new notice immediately 
upon the expiration of the comment period.

FOR FURTHER INFORMATION CONTACT: To assure a timely response, please 
direct requests for further information electronically to the email 
address [email protected]. Written requests may also be directed to the 
following address: Office of Public and Indian Housing--RAD Program; 
Department of Housing and Urban Development; 451 7th Street SW., Room 
2000; Washington, DC 20410.

SUPPLEMENTARY INFORMATION: 

I. Background

    RAD, authorized by the Consolidated and Further Continuing 
Appropriations Act, 2012 (Pub. L. 122-55, signed November 18, 2011) 
(2012 Appropriations Act), allows for the conversion of assistance 
under the public housing, Rent Supplement (Rent Supp), Rental 
Assistance (RAP), and Moderate Rehabilitation (Mod Rehab) programs 
(collectively, ``covered programs'') to long-term, renewable assistance 
under section 8.\1\ As provided in the Federal Register notice 
published on March 8, 2012, at 77 FR 14029, RAD has two separate 
components:
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    \1\ The RAD statutory requirements were amended by the 
Consolidated Appropriations Act, 2014 (Pub. L. 113-76, signed 
January 17, 2014) (2014 Appropriations Act) and the Consolidated and 
Further Continuing Appropriations Act, 2015 (Pub. L. 113-235, signed 
December 16, 2014) (2015 Appropriations Act). The statutory 
provisions of the 2012 Appropriations Act pertaining to RAD, as 
amended, are referred to as the RAD Statute in this notice.
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    First Component: Under the RAD Statute, the First Component of RAD 
allows projects funded under the public housing and Mod Rehab programs 
\2\ to convert to long-term section 8 rental assistance contracts. 
Under this component of RAD, which is covered by section I of the 
Revised Program Notice, Public Housing Authorities (PHAs) and Mod Rehab 
owners may apply to HUD to convert to one of two forms of section 8 
Housing Assistance Payment (HAP) contracts: Project-based vouchers 
(PBVs) or project-based rental assistance (PBRA). No additional or 
incremental funds were authorized for this component of RAD and, 
therefore, PHAs and Mod Rehab owners will be required to convert 
assistance for projects at current subsidy levels. The RAD Statute 
authorizes up to 185,000 units to convert assistance under this 
component.\3\ The RAD Statute further specifies that HUD shall provide 
an opportunity for public comment on draft eligibility and selection 
criteria and the procedures that will apply to the selection of 
properties that will

[[Page 36831]]

participate in this component of the demonstration.
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    \2\ While the statute authorizes conversions from Mod Rehab 
assistance under the First Component, the revisions to the program 
notice are requiring that all conversions from Mod Rehab be 
conducted under the Second Component.
    \3\ The original 2012 Appropriations Act allowed for a cap of 
only 60,000 units to convert assistance under the First Component. 
However, this cap was raised to 185,000 by the 2015 Appropriations 
Act.
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    The First Component became effective on July 26, 2012. The initial, 
competitive application period for the First Component opened on 
September 24, 2012, and closed on October 24, 2012, at which time the 
second application period opened.
    Second Component: The Second Component of RAD, which is covered 
under sections II and III of the Revised Program Notice, allows owners 
of projects funded under the Rent Supp, RAP, and Mod Rehab programs 
with a contract expiration or termination occurring after October 1, 
2006, to convert tenant protection vouchers (TPVs) to PBVs or PBRA.\4\ 
There is no cap on the number of units that may be converted under this 
component of RAD. While these conversions are not necessarily subject 
to the current funding levels for each project or a unit cap similar to 
public housing conversions, the rents will be subject to rent 
reasonableness under the PBV program and are subject to the 
availability of overall appropriated amounts for TPVs.
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    \4\ Authority to convert assistance to PBRA under the Second 
Component was granted by the 2015 Appropriations Act. In addition, 
the 2015 Appropriations Act expanded the authority to convert Mod 
Rehab contracts under both the First and Second Components to 
include Mod Rehab Single Room Occupancy contracts, which were 
explicitly excluded under the 2012 Appropriations Act.
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    The Second Component was effective on March 8, 2012, in Notice PIH 
2012-18, and has been amended in subsequent program notice revisions, 
including the Revised Program Notice. Applications for conversion of 
assistance under this component may be submitted immediately.
    Waivers and Alternative Requirements. The RAD Statute provides that 
waivers and alternative requirements authorized under the First 
Component must be published by notice in the Federal Register no later 
than 10 days before the effective date of such notice. Under the Second 
Component of RAD, HUD is authorized to waive or alter the provisions of 
subparagraphs (C) and (D) of section 8(o)(13) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) (the 1937 Act).
    HUD has previously published its waivers and alternative 
requirements for RAD, on July 26, 2013 (77 FR 43850) and July 2, 2013 
(78 FR 39759). This notice only includes waivers and alternative 
requirements not previously published. Although waivers or alternative 
requirements under the Second Component are not subject to a Federal 
Register publication requirement, the new Second Component waivers and 
alternative requirements are included in this notice as a matter of 
convenience.

II. Key Changes Made to RAD

    The following highlights key changes to the RAD program that are 
included in the Revised Program Notice:

First Component

    1. Reflecting the increase to the unit cap from 60,000 to 185,000 
units.
    2. Modifying the first-come, first-serve approach for selecting 
projects for participation in RAD in order to prioritize properties 
that are part of broader neighborhood revitalization and that have 
higher investment needs (see section 1.11). [Subject to 30-day notice 
and comment].
    3. Limiting conversions under the First Component to public housing 
projects. Mod Rehab projects will now be converted only under the 
Second Component (see section 2.1). [Subject to 30-day notice and 
comment].
    4. Extending the time period for submission of the application of 
the final phase of multi-phase projects to July 1, 2018 (see section 
1.9.C).
    5. Providing contract rents at fiscal year (FY) 2014 rent levels 
for all awards made subsequent to the increase in the unit cap (see 
sections 1.6.B.5 and 1.7.A.5).
    6. Ensuring residents retain rights and protections when their 
total tenant payment (TTP) exceeds the gross rent on the HAP contract 
(see sections 1.6.C.10 and 1.7.B.9).
    7. Eliminating interim program milestones to streamline processing 
and providing additional time to submit Financing Plans for tax credit 
transactions, to better align those deadlines with those of tax credit 
providers (see section 1.12).
    8. Identifying the specific HUD nondiscrimination and equal 
opportunity requirements that are applicable under different conversion 
plans and establishing an up-front HUD review of these requirements for 
certain transactions (see section 1.2.E).
    9. Clarifying when nondwelling property and land can be removed or 
released from the public housing program in conjunction with the 
conversion of assistance (Attachment 1A.M).
    10. Permitting RAD contract rents to increase by a portion of the 
estimated savings in resident utility allowances (see sections 1.6.B.5 
and 1.7.A.5 and Attachment 1C).
    11. Permitting section 8 assistance to ``float'' within certain 
mixed-income properties, so that assistance is not permanently tied to 
specific units in a project (see sections 1.6.B.10 and 1.7.A.11).
    12. Providing additional flexibility for voucher agencies to 
implement Choice-Mobility provisions in PBV conversions (see section 
1.6.D.9).
    13. Clarifying the applicability of site and neighborhood standards 
to new construction on the site of the existing public housing (see 
section 1.4.A.7).
    14. Clarifying that a PHA may operate a PBV program-wide or HCV 
program-wide waiting list and that a project owner may operate a 
community-wide waiting list for its PBRA projects (see sections 1.6.D.4 
and 1.7.C.3).
    15. Providing greater detail around conversions that would transfer 
the assistance to a new site, including criteria HUD will use to assess 
the new site and options for the use or disposition of the original 
public housing site (see section 1.4.A.12).

Second Component

    1. Providing an option for owners of Mod Rehab, Rent Supp, and RAP 
projects to convert to 20-year PBRA (see sections 2 and 3).
    2. Allowing Mod Rehab SROs that were funded under the McKinney-
Vento Homeless Assistance Act (SROs) to convert to long-term PBV or 
PBRA contracts (see section 2).
    3. Formalizing applicability of Davis-Bacon wages for conversions 
of assistance (see sections 2.5.J, 2.6.G, 3.5.J, and 3.6.I).
    4. Clarifying PBV rent setting in section 236 decoupled projects 
(see section 3.5.H).

III. New Waivers and Alternative Requirements

    The RAD Statute provides that waivers and alternative requirements 
authorized under the First Component must be published by notice in the 
Federal Register no later than 10 days before the effective date of 
such notice. Under the Second Component of RAD, HUD is authorized to 
waive or alter the provisions of subparagraphs (C) and (D) of section 
8(o)(13) of the 1937 Act. Although waivers under the Second Component 
are not subject to a Federal Register publication requirement, the 
second component waivers are included as a matter of convenience.
    On July 26, 2012, and July 2, 2013, HUD published by notice lists 
of RAD waivers and alternative requirements. Those lists, which became 
effective August 6, 2012, and July 12, 2013, respectively, are still in 
effect and are not reproduced here. Provided below is a list of new 
waivers and alternative

[[Page 36832]]

requirements that will become effective July 6, 2015.
    1. Under-Occupied Units at Time of Conversion. Provisions affected: 
24 CFR 983.259 and 24 CFR 880.605. Alternative requirements: Families 
occupying, at the time of conversion of assistance, a unit that is 
larger than is appropriate, may remain in the unit until an 
appropriate-sized unit becomes available in the covered project. For 
conversions of assistance under the Second Component, this alternative 
requirement will only apply to families who are elderly or disabled.
    2. Assistance for Families when Total Tenant Payment (TTP) Exceeds 
Gross Rent. Provisions affected: Section 8(o)(13)(H) of the 1937 Act 
and 24 CFR 983.301 and 983.53(d); sections 8-5 C and 8-6 A.1 of Housing 
Handbook 4350.3, REV-1. Alternative requirements: PHAs and owners must 
continue to treat certain families in public housing that has converted 
assistance as assisted and charge 30 percent of adjusted gross income 
in rent. The families covered by this alternative requirement must have 
incomes high enough for their TTP to exceed the contract rent yet still 
remain eligible for assistance or otherwise be unable to afford market 
rate housing in their community.
    3. Choice-Mobility Cap for Public Housing Conversions to PBV. 
Provisions affected: Section 8(o)(13)(E) of the 1937 Act and 24 CFR 
983.261(c). Alternative requirements: PHAs may, for projects that have 
converted assistance from public housing to PBV, provide one of every 
four turnover vouchers to households on their regular HCV waiting list 
instead of for Choice-Mobility vouchers.
    4. Rent Supp/RAP Contracts After Section 236 Prepayment. Provision 
affected: 24 CFR 236.725. Alternative requirement: The original RAP or 
Rent Supp contract may remain in place for 60 days after repayment of a 
section 236 mortgage until the PBV HAP contract is executed.
    5 Uniform Physical Condition Standards (UPCS) Inspections. 
Provision affected: 24 CFR part 5, subpart G. Alternative requirement: 
All units converting assistance to PBRA must meet the Uniform Physical 
Condition Standards no later than the date of completion of initial 
repairs as indicated in the RAD conversion commitment.
    6. Floating Units. Provision affected: 24 CFR 983.203(c). 
Alternative requirement: For certain projects (Choice, Mixed Finance, 
and HOPE VI), HUD is allowing PBV assistance to float among unassisted 
units.

IV. Other New Provisions

    In addition to the waivers above, the following change to the RAD 
program has been implemented:
    Initial Contract Rent Setting for Conversions of Assistance from 
Rent Supp/RAP. The 2015 Appropriations Act permitted HUD to convert 
Rent Supp and RAP properties to PBRA. To implement this authority, HUD 
must establish how to set the contract rents for these conversions. 
Rents will be set on the post-rehabilitation market rents, as 
determined by a rent comparability study, not to exceed 110 percent of 
the fair market rent.

V. Revised Program Notice Availability

    The Revised Program Notice (PIH 2012-32, REV-2) can be found on 
RAD's Web site, www.hud.gov/RAD.

VI. Environmental Review

    A Finding of No Significant Impact with respect to the environment 
was made in connection with HUD notice PIH 2012-32 issued on March 8, 
2012, and in accordance with HUD regulations in 24 CFR part 50 that 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)). The Finding remains applicable to the 
Revised Program Notice and is available for public inspection during 
regular business hours in the Regulations Division, Office of General 
Counsel; Department of Housing and Urban Development; 451 7th Street 
SW., Room 10276; Washington, DC 20410- 0500. Due to security measures 
at the HUD Headquarters building, please schedule an appointment to 
review the Finding by calling the Regulations Division at 202-402-3055 
(this is not a toll-free number). Individuals with speech or hearing 
impairments may access this number via TTY by calling the Federal Relay 
Service at 800-877-8339.

    Dated: June 19, 2015.
Lourdes Castro Ram[iacute]rez,
Principal Deputy Assistant Secretary for Public and Indian Housing.
Edward L. Golding,
Principal Deputy Assistant Secretary for Housing.
    Approved on: June 3, 2015.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-15764 Filed 6-25-15; 8:45 am]
 BILLING CODE 4210-67-P
36830 Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices

Overview of This Information and Office of the Assistant Secretary for of Public and Indian Housing—RAD
Collection Housing-Federal Housing Program; Department of Housing and
(1) Type of Information Collection Commissioner, HUD. Urban Development; 451 7th Street SW.,
Request: Revision of a Currently ACTION: Notice. Room 2000; Washington, DC 20410.
Approved Collection. SUPPLEMENTARY INFORMATION:
(2) Title of the Form/Collection: SUMMARY: On July 26, 2012, HUD
Application to Register Permanent announced through notice in the I. Background
Residence or Adjust Status, Form I–485 Federal Register the implementation of
Supplement A, and Instruction Booklet the statutorily authorized Rental RAD, authorized by the Consolidated
for Filing Form I–485 and Supplement Assistance Demonstration (RAD), which and Further Continuing Appropriations
A. provides the opportunity to test the Act, 2012 (Pub. L. 122–55, signed
(3) Agency form number, if any, and conversion of public housing and other November 18, 2011) (2012
the applicable component of the DHS HUD-assisted properties to long-term, Appropriations Act), allows for the
sponsoring the collection: Form I–485 project-based section 8 rental assistance. conversion of assistance under the
and Form I–485 Supplement A; USCIS. The July 26, 2012, Federal Register public housing, Rent Supplement (Rent
(4) Affected public who will be asked notice also announced the availability of Supp), Rental Assistance (RAP), and
or required to respond, as well as a brief the program notice (PIH 2012–32), Moderate Rehabilitation (Mod Rehab)
abstract: Primary: Individuals or providing program instruction on HUD’s programs (collectively, ‘‘covered
households. The information collected Web site. On July 2, 2013, HUD issued programs’’) to long-term, renewable
is used to determine eligibility to adjust a revised program notice (PIH 2012–32, assistance under section 8.1 As provided
status under section 245 of the REV–1). This Federal Register notice in the Federal Register notice published
Immigration and Nationality Act. announces further revisions to RAD and on March 8, 2012, at 77 FR 14029, RAD
(5) An estimate of the total number of solicits public comment on changed has two separate components:
respondents and the amount of time eligibility and selection criteria. It also
First Component: Under the RAD
estimated for an average respondent to announces the posting of a further
Statute, the First Component of RAD
respond: The estimated total number of revised program notice (Revised
allows projects funded under the public
respondents for the information Program Notice, PIH 2012–32, REV–2).
housing and Mod Rehab programs 2 to
collection Form I–485 is 697,811 and As provided by the RAD Statute, this
convert to long-term section 8 rental
the estimated hour burden per response notice addresses the requirement that
the demonstration may proceed after assistance contracts. Under this
is 6.5 hours. The estimated total number component of RAD, which is covered by
of respondents for the information publication of notice of its terms in the
Federal Register. This notice section I of the Revised Program Notice,
collection Form I–485 Supplement A is Public Housing Authorities (PHAs) and
25,540 and the estimated hour burden summarizes the key changes made to
PIH 2012–32, REV–1. This notice also Mod Rehab owners may apply to HUD
per response is 1 hour. The estimated to convert to one of two forms of section
number of respondents providing meets the RAD statutory requirement to
publish at least 10 days before they may 8 Housing Assistance Payment (HAP)
biometrics is 697,811 and the estimated contracts: Project-based vouchers (PBVs)
hour burden per response is 1.17 hours. take effect, waivers and alternative
requirements authorized by the statute, or project-based rental assistance
(6) An estimate of the total public
which does not prevent the (PBRA). No additional or incremental
burden (in hours) associated with the
demonstration from proceeding funds were authorized for this
collection: The total estimated annual
immediately. component of RAD and, therefore, PHAs
hour burden associated with this
and Mod Rehab owners will be required
collection is 5,377,751 hours. DATES: Comment Due Date: July 27,
(7) An estimate of the total public to convert assistance for projects at
2015. Interested persons are invited to current subsidy levels. The RAD Statute
burden (in cost) associated with the submit comments electronically to rad@
collection: The estimated total annual authorizes up to 185,000 units to
hud.gov no later than the comment due convert assistance under this
cost burden associated with this date. Effective Dates: The Revised
collection of information is $0. The component.3 The RAD Statute further
Program Notice, PIH 2012–32, REV–2, specifies that HUD shall provide an
costs to the respondents are captured in other than those items listed as subject
the individual information collections. opportunity for public comment on
to notice and comment or new statutory draft eligibility and selection criteria
Dated: June 22, 2015. or regulatory waivers or alternative and the procedures that will apply to
Laura Dawkins, requirements specified in this notice, is the selection of properties that will
Chief, Regulatory Coordination Division, effective June 26, 2015
Office of Policy and Strategy, U.S. Citizenship The new statutory and regulatory 1 The RAD statutory requirements were amended
and Immigration Services, Department of waivers and alternative requirements by the Consolidated Appropriations Act, 2014 (Pub.
Homeland Security. are effective July 6, 2015. L. 113–76, signed January 17, 2014) (2014
[FR Doc. 2015–15646 Filed 6–25–15; 8:45 am] The items listed as subject to notice Appropriations Act) and the Consolidated and
and comment will be effective upon July Further Continuing Appropriations Act, 2015 (Pub.
BILLING CODE 9111–97–P L. 113–235, signed December 16, 2014) (2015
27, 2015. If HUD receives adverse Appropriations Act). The statutory provisions of the
comment that leads to reconsideration, 2012 Appropriations Act pertaining to RAD, as
DEPARTMENT OF HOUSING AND HUD will notify the public in a new amended, are referred to as the RAD Statute in this
notice immediately upon the expiration notice.
URBAN DEVELOPMENT 2 While the statute authorizes conversions from
tkelley on DSK3SPTVN1PROD with NOTICES

of the comment period. Mod Rehab assistance under the First Component,
[Docket No. FR–5630–N–07] FOR FURTHER INFORMATION CONTACT: To the revisions to the program notice are requiring
assure a timely response, please direct that all conversions from Mod Rehab be conducted
Rental Assistance Demonstration: under the Second Component.
requests for further information
Revised Program Notice 3 The original 2012 Appropriations Act allowed
electronically to the email address rad@ for a cap of only 60,000 units to convert assistance
AGENCY: Office of the Assistant hud.gov. Written requests may also be under the First Component. However, this cap was
Secretary for Public and Indian Housing directed to the following address: Office raised to 185,000 by the 2015 Appropriations Act.

VerDate Sep<11>2014 18:15 Jun 25, 2015 Jkt 235001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 E:\FR\FM\26JNN1.SGM 26JNN1
Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices 36831

participate in this component of the Federal Register publication properties, so that assistance is not
demonstration. requirement, the new Second permanently tied to specific units in a
The First Component became effective Component waivers and alternative project (see sections 1.6.B.10 and
on July 26, 2012. The initial, requirements are included in this notice 1.7.A.11).
competitive application period for the as a matter of convenience. 12. Providing additional flexibility for
First Component opened on September voucher agencies to implement Choice-
II. Key Changes Made to RAD Mobility provisions in PBV conversions
24, 2012, and closed on October 24,
2012, at which time the second The following highlights key changes (see section 1.6.D.9).
application period opened. to the RAD program that are included in 13. Clarifying the applicability of site
Second Component: The Second the Revised Program Notice: and neighborhood standards to new
Component of RAD, which is covered construction on the site of the existing
First Component
under sections II and III of the Revised public housing (see section 1.4.A.7).
Program Notice, allows owners of 1. Reflecting the increase to the unit 14. Clarifying that a PHA may operate
projects funded under the Rent Supp, cap from 60,000 to 185,000 units. a PBV program-wide or HCV program-
RAP, and Mod Rehab programs with a 2. Modifying the first-come, first-serve wide waiting list and that a project
contract expiration or termination approach for selecting projects for owner may operate a community-wide
occurring after October 1, 2006, to participation in RAD in order to waiting list for its PBRA projects (see
convert tenant protection vouchers prioritize properties that are part of sections 1.6.D.4 and 1.7.C.3).
(TPVs) to PBVs or PBRA.4 There is no broader neighborhood revitalization and 15. Providing greater detail around
cap on the number of units that may be that have higher investment needs (see conversions that would transfer the
converted under this component of section 1.11). [Subject to 30-day notice assistance to a new site, including
RAD. While these conversions are not and comment]. criteria HUD will use to assess the new
necessarily subject to the current 3. Limiting conversions under the site and options for the use or
funding levels for each project or a unit First Component to public housing disposition of the original public
cap similar to public housing projects. Mod Rehab projects will now housing site (see section 1.4.A.12).
conversions, the rents will be subject to be converted only under the Second
Component (see section 2.1). [Subject to Second Component
rent reasonableness under the PBV
program and are subject to the 30-day notice and comment]. 1. Providing an option for owners of
availability of overall appropriated 4. Extending the time period for Mod Rehab, Rent Supp, and RAP
amounts for TPVs. submission of the application of the projects to convert to 20-year PBRA (see
The Second Component was effective final phase of multi-phase projects to sections 2 and 3).
on March 8, 2012, in Notice PIH 2012– July 1, 2018 (see section 1.9.C). 2. Allowing Mod Rehab SROs that
18, and has been amended in 5. Providing contract rents at fiscal were funded under the McKinney-Vento
subsequent program notice revisions, year (FY) 2014 rent levels for all awards Homeless Assistance Act (SROs) to
including the Revised Program Notice. made subsequent to the increase in the convert to long-term PBV or PBRA
Applications for conversion of unit cap (see sections 1.6.B.5 and contracts (see section 2).
assistance under this component may be 1.7.A.5). 3. Formalizing applicability of Davis-
6. Ensuring residents retain rights and Bacon wages for conversions of
submitted immediately.
Waivers and Alternative protections when their total tenant assistance (see sections 2.5.J, 2.6.G,
Requirements. The RAD Statute payment (TTP) exceeds the gross rent on 3.5.J, and 3.6.I).
the HAP contract (see sections 1.6.C.10 4. Clarifying PBV rent setting in
provides that waivers and alternative
and 1.7.B.9). section 236 decoupled projects (see
requirements authorized under the First
7. Eliminating interim program section 3.5.H).
Component must be published by notice
milestones to streamline processing and
in the Federal Register no later than 10 III. New Waivers and Alternative
providing additional time to submit
days before the effective date of such Requirements
Financing Plans for tax credit
notice. Under the Second Component of The RAD Statute provides that
transactions, to better align those
RAD, HUD is authorized to waive or waivers and alternative requirements
deadlines with those of tax credit
alter the provisions of subparagraphs (C) authorized under the First Component
providers (see section 1.12).
and (D) of section 8(o)(13) of the United must be published by notice in the
8. Identifying the specific HUD
States Housing Act of 1937 (42 U.S.C. Federal Register no later than 10 days
nondiscrimination and equal
1437f) (the 1937 Act). before the effective date of such notice.
opportunity requirements that are
HUD has previously published its Under the Second Component of RAD,
applicable under different conversion
waivers and alternative requirements for HUD is authorized to waive or alter the
plans and establishing an up-front HUD
RAD, on July 26, 2013 (77 FR 43850) provisions of subparagraphs (C) and (D)
review of these requirements for certain
and July 2, 2013 (78 FR 39759). This of section 8(o)(13) of the 1937 Act.
transactions (see section 1.2.E).
notice only includes waivers and 9. Clarifying when nondwelling Although waivers under the Second
alternative requirements not previously property and land can be removed or Component are not subject to a Federal
published. Although waivers or released from the public housing Register publication requirement, the
alternative requirements under the program in conjunction with the second component waivers are included
Second Component are not subject to a conversion of assistance (Attachment as a matter of convenience.
4 Authority to convert assistance to PBRA under
1A.M). On July 26, 2012, and July 2, 2013,
tkelley on DSK3SPTVN1PROD with NOTICES

the Second Component was granted by the 2015 10. Permitting RAD contract rents to HUD published by notice lists of RAD
Appropriations Act. In addition, the 2015 increase by a portion of the estimated waivers and alternative requirements.
Appropriations Act expanded the authority to savings in resident utility allowances Those lists, which became effective
convert Mod Rehab contracts under both the First (see sections 1.6.B.5 and 1.7.A.5 and August 6, 2012, and July 12, 2013,
and Second Components to include Mod Rehab
Single Room Occupancy contracts, which were Attachment 1C). respectively, are still in effect and are
explicitly excluded under the 2012 Appropriations 11. Permitting section 8 assistance to not reproduced here. Provided below is
Act. ‘‘float’’ within certain mixed-income a list of new waivers and alternative

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36832 Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices

requirements that will become effective IV. Other New Provisions DEPARTMENT OF HOUSING AND
July 6, 2015. URBAN DEVELOPMENT
1. Under-Occupied Units at Time of In addition to the waivers above, the
Conversion. Provisions affected: 24 CFR following change to the RAD program [Docket No. FR–5874–N–01]
983.259 and 24 CFR 880.605. has been implemented:
HUD Administrative Fee Formula—
Alternative requirements: Families Initial Contract Rent Setting for Solicitation of Comment
occupying, at the time of conversion of Conversions of Assistance from Rent
assistance, a unit that is larger than is Supp/RAP. The 2015 Appropriations AGENCY: Office of the Assistant
appropriate, may remain in the unit Act permitted HUD to convert Rent Secretary for Policy Development and
until an appropriate-sized unit becomes Supp and RAP properties to PBRA. To Research, HUD.
available in the covered project. For ACTION: Notice; Solicitation of comment.
implement this authority, HUD must
conversions of assistance under the
establish how to set the contract rents SUMMARY: Housing Choice Voucher
Second Component, this alternative
requirement will only apply to families for these conversions. Rents will be set program administrative fees are
who are elderly or disabled. on the post-rehabilitation market rents, currently calculated based on the
2. Assistance for Families when Total as determined by a rent comparability number of vouchers under lease and a
Tenant Payment (TTP) Exceeds Gross study, not to exceed 110 percent of the percentage of the 1993 or 1994 local Fair
Rent. Provisions affected: Section fair market rent. Market Rent. In 2010, HUD contracted
8(o)(13)(H) of the 1937 Act and 24 CFR Abt Associates to conduct the Housing
V. Revised Program Notice Availability
983.301 and 983.53(d); sections 8–5 C Choice Voucher Program Administrative
and 8–6 A.1 of Housing Handbook The Revised Program Notice (PIH Fee Study to measure the actual costs of
4350.3, REV–1. Alternative 2012–32, REV–2) can be found on operating high-performing and efficient
requirements: PHAs and owners must RAD’s Web site, www.hud.gov/RAD. Housing Choice Voucher programs and
continue to treat certain families in to develop an updated administrative
public housing that has converted VI. Environmental Review fee formula. The results of the study
assistance as assisted and charge 30 were released on April 8, 2015. In this
percent of adjusted gross income in rent. A Finding of No Significant Impact
notice, HUD seeks public comment on
The families covered by this alternative with respect to the environment was
the variables identified by the study as
requirement must have incomes high made in connection with HUD notice impacting administrative fee costs
enough for their TTP to exceed the PIH 2012–32 issued on March 8, 2012, (including specific questions raised in
contract rent yet still remain eligible for and in accordance with HUD this preamble), how HUD might use
assistance or otherwise be unable to regulations in 24 CFR part 50 that these study findings to develop a new
afford market rate housing in their implement section 102(2)(C) of the administrative fee formula, and any
community. National Environmental Policy Act of other issues that may arise with the
3. Choice-Mobility Cap for Public 1969 (42 U.S.C. 4332(2)(C)). The development and implementation of a
Housing Conversions to PBV. Provisions Finding remains applicable to the new administrative fee formula.
affected: Section 8(o)(13)(E) of the 1937 Revised Program Notice and is available DATES: Comment Due Date: July 27,
Act and 24 CFR 983.261(c). Alternative for public inspection during regular 2015.
requirements: PHAs may, for projects business hours in the Regulations
that have converted assistance from ADDRESSES: Interested persons are
Division, Office of General Counsel;
public housing to PBV, provide one of invited to submit comments regarding
Department of Housing and Urban
every four turnover vouchers to this notice to the Regulations Division,
Development; 451 7th Street SW., Room Office of General Counsel, Department
households on their regular HCV 10276; Washington, DC 20410– 0500.
waiting list instead of for Choice- of Housing and Urban Development,
Due to security measures at the HUD 451 7th Street SW., Room 10276,
Mobility vouchers.
4. Rent Supp/RAP Contracts After Headquarters building, please schedule Washington, DC 20410–0500.
Section 236 Prepayment. Provision an appointment to review the Finding Communications must refer to the above
affected: 24 CFR 236.725. Alternative by calling the Regulations Division at docket number and title. There are two
requirement: The original RAP or Rent 202–402–3055 (this is not a toll-free methods for submitting public
Supp contract may remain in place for number). Individuals with speech or comments. All submissions must refer
60 days after repayment of a section 236 hearing impairments may access this to the above docket number and title.
mortgage until the PBV HAP contract is number via TTY by calling the Federal 1. Submission of Comments by Mail.
executed. Relay Service at 800–877–8339. Comments may be submitted by mail to
5 Uniform Physical Condition Dated: June 19, 2015. the Regulations Division, Office of
Standards (UPCS) Inspections. General Counsel, Department of
Lourdes Castro Ramı́rez,
Provision affected: 24 CFR part 5, Housing and Urban Development, 451
subpart G. Alternative requirement: All Principal Deputy Assistant Secretary for 7th Street SW., Room 10276,
units converting assistance to PBRA Public and Indian Housing. Washington, DC 20410–0500.
must meet the Uniform Physical Edward L. Golding, 2. Electronic Submission of
Condition Standards no later than the Principal Deputy Assistant Secretary for Comments. Interested persons may
date of completion of initial repairs as Housing. submit comments electronically through
indicated in the RAD conversion Approved on: June 3, 2015. the Federal eRulemaking Portal at
tkelley on DSK3SPTVN1PROD with NOTICES

commitment. Nani A. Coloretti, www.regulations.gov. HUD strongly
6. Floating Units. Provision affected: encourages commenters to submit
Deputy Secretary.
24 CFR 983.203(c). Alternative comments electronically. Electronic
requirement: For certain projects [FR Doc. 2015–15764 Filed 6–25–15; 8:45 am] submission of comments allows the
(Choice, Mixed Finance, and HOPE VI), BILLING CODE 4210–67–P commenter maximum time to prepare
HUD is allowing PBV assistance to float and submit a comment, ensures timely
among unassisted units. receipt by HUD, and enables HUD to

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Document Created: 2015-12-15 14:15:56
Document Modified: 2015-12-15 14:15:56
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Contact		To assure a timely response, please direct requests for further information electronically to the email
FR Citation		80 FR 36830