80_FR_48178 80 FR 48024 - Federal Housing Administration (FHA): Updating Regulations Governing HUD Fees and the Financing of the Purchase and Installation of Fire Safety Equipment in FHA-Insured Healthcare Facilities

80 FR 48024 - Federal Housing Administration (FHA): Updating Regulations Governing HUD Fees and the Financing of the Purchase and Installation of Fire Safety Equipment in FHA-Insured Healthcare Facilities

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 154 (August 11, 2015)

Page Range48024-48028
FR Document2015-19714

This rule updates HUD fees for multifamily housing and residential healthcare facilities, and updates and streamlines the Section 232 program regulations that govern the financing of the purchase and installation of fire safety equipment in insured healthcare facilities, which have not been substantially updated in over 20 years. This final rule gives HUD flexibility in raising or lowering fees, and for residential healthcare facilities, streamlines the loan application process by eliminating unnecessary requirements, conforming needed requirements to current industry practices, and allowing for HUD to centralize the loan application process.

Federal Register, Volume 80 Issue 154 (Tuesday, August 11, 2015)
[Federal Register Volume 80, Number 154 (Tuesday, August 11, 2015)]
[Rules and Regulations]
[Pages 48024-48028]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19714]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 200 and 232

[Docket No. FR-5632-F-02]
RIN 2502-AJ27


Federal Housing Administration (FHA): Updating Regulations 
Governing HUD Fees and the Financing of the Purchase and Installation 
of Fire Safety Equipment in FHA-Insured Healthcare Facilities

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule updates HUD fees for multifamily housing and 
residential healthcare facilities, and updates and

[[Page 48025]]

streamlines the Section 232 program regulations that govern the 
financing of the purchase and installation of fire safety equipment in 
insured healthcare facilities, which have not been substantially 
updated in over 20 years. This final rule gives HUD flexibility in 
raising or lowering fees, and for residential healthcare facilities, 
streamlines the loan application process by eliminating unnecessary 
requirements, conforming needed requirements to current industry 
practices, and allowing for HUD to centralize the loan application 
process.

DATES: Effective Date: September 10, 2015.

FOR FURTHER INFORMATION CONTACT: For information about: HUD's 
Multifamily Housing program, contact Dan Sullivan, Deputy Director, 
Office of Multifamily Housing Development, Office of Housing, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
6148, Washington, DC 20410-8000; telephone number 202-708-1142; HUD's 
Healthcare program, contact Vance Morris, Office of Healthcare 
Programs, Office of Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 6134, Washington, DC 20410-8000; 
telephone number 202-402-2419. The telephone numbers listed above are 
not toll-free numbers. Persons with hearing or speech impairments may 
access these numbers through TTY by calling the toll-free Federal Relay 
Service at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background--the January 14, 2015, Proposed Rule

    On January 14, 2015, HUD published a proposed rule in the Federal 
Register, at 80 FR 1855, to update HUD fees for multifamily housing and 
residential healthcare facilities, and update and streamline the 
Section 232 program regulations that govern the financing of the 
purchase and installation of fire safety equipment in insured 
healthcare facilities. See the January 14, 2015, proposed rule for a 
more detailed listing of the proposed changes.

Update HUD Fees

    HUD's January 14, 2015, rule proposed to amend HUD's general fee 
regulations in 24 CFR 200.40, which contain the fees that apply to most 
mortgages insured by FHA, including Section 232 mortgages. To bring 
consistency and conformity to HUD's regulations, the amount of the 
application fee for Section 232 programs would be moved to a new Sec.  
200.40(d)(2), and only cross-referenced in the Section 232 program 
regulations. The current Sec.  200.40(d), setting the general 
application fee, would be redesignated as Sec.  200.40(d)(1). In 
addition, paragraphs (d)(1) and (d)(2) would allow the Secretary 
flexibility in setting the respective fees, up to a maximum fee of 
$5.00 per thousand dollars of the requested mortgage amount to be 
insured.
    The rule proposed to eliminate the commitment fee in HUD's 
regulations at 24 CFR part 232, subpart C, and therefore also proposed 
to eliminate the requirement in Sec.  232.515 that the commitment fee 
be refunded. The provisions allowing for refund of the application fee 
remained unchanged. In addition, instead of being set out in the 
Section 232 program regulations, the maximum fees and charges and the 
inspection fee in Sec. Sec.  232.520 and 232.522, respectively, would 
cross-reference the Sec. Sec.  200.40 and 200.41 regulations.

Update and Streamline 24 CFR 232, Subpart C, Regulations

    HUD's January 14, 2015, rule proposed to update and streamline the 
requirements of HUD's regulations at 24 CFR part 232, subpart C, and 
primarily focused on removing or revising several fees required in 
these regulations that HUD has determined are no longer needed or, 
alternatively, are not set at sufficient levels.
    Health and Human Services (HHS) requirements and involvement. The 
rule proposed to streamline HUD's regulations by eliminating 
duplicative and unnecessary involvement by HHS. For example, the rule 
proposed to revise the definition of ``equipment cost'' in Sec.  
232.500(e) to eliminate the involvement of the Secretary of HHS in 
estimating the reasonable cost of the fire safety equipment 
installation. HUD has determined that the estimate by the Secretary of 
HHS is an unnecessary step.
    The rule proposed to remove the requirement at Sec.  232.505(a) 
that an application for insurance of a fire safety loan under part 232 
be considered in connection with a proposal approved by the Secretary 
of HHS. Section 232.615 would still require, however, that the facility 
requesting the loan meet HHS fire safety requirements.
    In Sec.  232.510(b), the rule proposed to replace the 
responsibility of the Secretary of HHS to determine the satisfactory 
completion of installation of fire safety equipment with that of the 
Commissioner.
    In Sec.  232.570, the rule proposed to eliminate the requirement 
that the Secretary of HHS submit a statement that the fire safety 
equipment has been satisfactorily installed. The rule proposed to 
replace this provision with a requirement of a certification that the 
improvements were installed as required by Sec.  232.500(c). As stated 
earlier in regard to other proposed changes, Sec.  232.615 would still 
require the facility to meet HHS fire safety requirements in order for 
HUD to insure the loan.
    The rule proposed to eliminate the requirement in Sec.  232.620 
that an application for insurance under 24 CFR part 232, subpart C, be 
accompanied by a statement from HHS or the HHS Secretary's designee, 
such as a State, that the facility will meet pertinent health and 
safety requirements of HHS--other than the fire safety equipment 
requirements--once the fire safety equipment has been installed. 
Instead of this requirement, the rule proposed to substitute a 
reference to certification of compliance with HHS, Federal, State, and 
local requirements for fire safety equipment to be provided prior to 
endorsement.
    Definitions. The rule proposed to update the outdated standard in 
Sec.  232.500(c)(1) which required ``fire safety equipment'' to meet 
the standards for applicable occupancy of any edition of the Life 
Safety Code \1\ (LSC) of the National Fire Protection Association after 
1966 (Sec.  232.500(c)(1)(i)); or a standard mandated by a State, under 
the provisions of section 1616(e) of the Social Security Act (Sec.  
232.500(c)(1)(ii)); or any appropriate requirement approved by the 
Secretary of HHS for providers of services under title XVIII or title 
XIX of the Social Security Act (Sec.  232.500(c)(1)(iii)). For Sec.  
232.500(c)(1)(i), the rule proposed instead to require that ``fire 
safety equipment'' meet the applicable provisions of the edition of the 
LSC adopted by the Secretary of HHS. For Sec.  232.500(c)(1)(ii), HUD 
proposed no change. HUD proposed to remove Sec.  232.500(c)(1)(iii), 
because approval by the Secretary of HHS is achieved through the change 
to Sec.  232.500(c)(1)(i).
---------------------------------------------------------------------------

    \1\ The Life Safety Code addresses those construction, 
protection, and occupancy features necessary to minimize danger to 
life from the effects of fire, including smoke, heat, and toxic 
gases created during a fire. The code also addresses protective 
features and systems, building services, operating features, 
maintenance activities, and other provisions in recognition of the 
fact that achieving an acceptable degree of life safety depends on 
additional safeguards to provide adequate egress time or protection 
for people exposed to fire.
---------------------------------------------------------------------------

    The rule also proposed to revise the definition of ``eligible 
borrower'' in Sec.  232.615 to eliminate all references to the 
requirement that the facility meet

[[Page 48026]]

HHS health and safety requirements, although the facility would still 
have to meet HHS fire safety requirements.
    Applications. HUD proposed to remove the requirement in Sec.  
232.505(b) to submit applications to HUD's local offices.
    Method of loan payment and amortization period. Instead of being 
set out in the 232 program regulations, the method of loan payment and 
amortization period in Sec.  232.540 would cross-reference Sec.  
200.82.
    Maximum loan amount. In Sec.  232.565, the rule proposed to revise 
the maximum loan amount to allow for the financing of fees, similar to 
the regulations governing fees in other Section 232 loan insurance 
programs.
    Contract requirements. The rule proposed to remove the limitation 
in Sec.  232.605 that contracts be either lump sum or cost plus 
contracts and instead proposed to allow such contracts as may be 
specified by the FHA Commissioner.
    Certification of cost requirements. In Sec.  232.610, the rule 
proposed to require that a certification of actual cost be made for all 
forms of contract, instead of only when a cost plus form of contract is 
used. Further, it proposed to eliminate the requirement that the amount 
of the loan be adjusted to reflect the actual cost to the borrower of 
the improvements.

II. This Final Rule

    This final rule follows publication of the January 14, 2015, 
proposed rule and adopts that proposed rule without change. The public 
comment period for the proposed rule closed on March 16, 2015, and HUD 
received one public comment.
    Comment: This rulemaking is the appropriate solution to an outdated 
and burdensome loan application process. Commenter is supportive of 
HUD's proposed rule to update outdated and burdensome requirements. 
Commenter states that updating the rules that govern the financing of 
the purchase and installation of fire safety equipment in insured 
healthcare facilities will save lives and streamlining the loan 
application process will reduce administrative burdens and costs.
    HUD Response: HUD appreciates the commenter's support for this rule 
and adopts the proposed rule without change.

III. 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 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.
    At the proposed rule stage, this document was determined not to be 
a ``significant regulatory action'' as defined in section 3(f) of the 
Executive order. Because this final rule adopts the January 14, 2015, 
proposed rule, without change, the final rule is also not a 
``significant regulatory action'' as defined in section 3(f) of 
Executive Order 12866.

Paperwork Reduction Act

    The information collection requirements contained in this proposed 
rule have been submitted to the OMB under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520), and approved under OMB control numbers 
2502-0605 and 2502-0541. In accordance with the Paperwork Reduction 
Act, an agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection 
displays a currently valid OMB control number.

Environmental Review

    A Finding of No Significant Impact (FONSI) with respect to the 
environment for this rule was made at the proposed rule stage, in 
accordance with HUD regulations at 24 CFR part 50, which implement 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)). The FONSI remains applicable, and is available for 
public inspection between 8 a.m. and 5 p.m., weekdays, in the 
Regulations Division, Office of General Counsel, Department of Housing 
and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 
20410-5000. Due to security measures at the HUD Headquarters building, 
please schedule an appointment to review the FONSI 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 (this is a 
toll-free number).

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) 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 would not 
impose any Federal mandates on any State, local, or tribal governments, 
or on the private sector, within the meaning of the UMRA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (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.
    The final rule imposes no requirements on small businesses. In 
fact, streamlining the Fire Safety Equipment Loan Program requirements 
should ease an existing burden on those small businesses seeking to 
accommodate acute care patients and those needing to upgrade or install 
fire safety equipment to meet HHS requirements.
    Accordingly, the undersigned certifies that this final rule will 
not have a significant economic impact on a substantial number of small 
entities.

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.

Catalogue of Federal Domestic Assistance

    The Catalogue of Federal Domestic Assistance Number for the 
Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board 
and Care Homes and Assisted Living Facilities is 14.129; for Mortgage 
Insurance-Rental Housing

[[Page 48027]]

is 14.134; for Mortgage Insurance for the Purchase or Refinancing of 
Existing Multifamily Housing Projects is 14.155.

List of Subjects

24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Home improvement, Housing standards, Lead 
poisoning, Loan programs--housing and community development, Mortgage 
insurance, Organization and functions (Government agencies), Penalties, 
Reporting and recordkeeping.

24 CFR Part 232

    Fire prevention, Health facilities, Loan programs--health, Loan 
programs--housing and community development, Mortgage insurance, 
Nursing homes, Reporting and recordkeeping requirements.

    Accordingly, for the reasons discussed in this preamble, HUD amends 
24 CFR parts 200 and 232 as follows:

PART 200--INTRODUCTION TO FHA PROGRAMS

0
1. The authority citation for 24 CFR part 200 continues to read as 
follows:

    Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).

0
2. Amend Sec.  200.40 to:
0
a. Redesignate paragraph (d) as paragraph (d)(1);
0
b. Revise the paragraph heading and first sentence of newly 
redesignated (d)(1); and
0
c. Add paragraph (d)(2).
    The revisions and addition read as follows:


Sec.  200.40  HUD fees.

* * * * *
    (d)(1) Application fee--firm commitment: General. An application 
for firm commitment shall be accompanied by an application-commitment 
fee in an amount determined by the Secretary, which when added to any 
prior fees received in connection with the same application, shall not 
exceed $5.00 per thousand dollars of the requested mortgage amount to 
be insured.
    * * *
    (2) Application fee--Section 232 Programs. For purposes of 
mortgages insured under HUD's regulations in 24 CFR part 232, subpart 
C, an application for firm commitment shall be accompanied by an 
application fee in an amount determined by the Secretary, which shall 
not exceed $5.00 per thousand dollars of the requested mortgage amount 
to be insured.
* * * * *

PART 232--MORTGAGE INSURANCE FOR NURSING HOMES, INTERMEDIATE CARE 
FACILITIES, BOARD AND CARE HOMES, AND ASSISTED LIVING FACILITIES

0
3. The authority citation for 24 CFR part 232 continues to read as 
follows:

    Authority: 12 U.S.C. 1715b, 1715w; 42 U.S.C. 3535(d).

Subpart C--Eligibility Requirements--Supplemental Loans To Finance 
Purchase and Installation of Fire Safety Equipment

0
4. In Sec.  232.500, revise paragraphs (c)(1)(i) and (ii) and (e) to 
read as follows:


Sec.  232.500  Definitions.

* * * * *
    (c) * * *
    (1) * * *
    (i) The edition of The Life Safety Code of the National Fire 
Protection Association as accepted by the Department of Health and 
Human Services in 42 CFR 483.70; or
    (ii) A standard mandated by a State under the provisions of section 
1616(e) of the Social Security Act.
* * * * *
    (e) Equipment cost means the reasonable cost of fire safety 
equipment fully installed as determined by the Commissioner.
* * * * *

0
5. Revise Sec.  232.505 to read as follows:


Sec.  232.505  Application and application fee.

    (a) Filing of application. An application for insurance of a fire 
safety loan for a nursing home, intermediate care facility, assisted 
living facility or board and care home shall be submitted on an 
approved HUD form by an approved lender and by the owners of the 
project to the HUD office.
    (b) Application fee. See 24 CFR 200.40(d)(2).

0
6. Amend Sec.  232.510 to:
0
a. Revise paragraphs (b), (c), and (d);
0
b. Remove paragraph (e); and
0
c. Redesignate paragraph (f) as paragraph (e) and revise newly 
designated paragraph (e) to read as follows:


Sec.  232.510  Commitment and commitment fee.

* * * * *
    (b) Type of commitment. The commitment will provide for the 
insurance of the loan after satisfactory completion of installation of 
the fire safety equipment, as determined by the Commissioner.
    (c) Term of commitment. A commitment shall have a term as the 
Commissioner deems necessary for satisfactory completion of 
installation.
    (d) Commitment fee. See 24 CFR 200.40(d)(2).
    (e) Increase in commitment prior to endorsement. An application, 
filed prior to endorsement, for an increase in the amount of an 
outstanding firm commitment shall be accompanied by an additional 
application fee. The additional application fee shall be in an amount 
determined by the Secretary as equal to the amount determined under 24 
CFR 200.40(d)(2), which shall not exceed $5.00 per thousand dollars of 
the amount of the requested increase. If an inspection fee was required 
in the original commitment, an additional inspection fee shall be paid 
in an amount computed at the same dollar rate per thousand dollars of 
the amount of increase in commitment as was used for the inspection fee 
required in the original commitment. The additional inspection fee 
shall be paid prior to the date installation of fire safety equipment 
is begun, or, if installation has begun, it shall be paid with the 
application for increase.

0
7. Revise Sec.  232.515 to read as follows:


Sec.  232.515  Refund of fees.

    If the amount of the commitment issued or an increase in the loan 
amount prior to endorsement is less than the amount applied for, the 
Commissioner shall refund the excess amount of the application fee 
submitted by the applicant. If an application is rejected before it is 
assigned for processing, or in such other instances as the Commissioner 
may determine, the entire application fee or any portion thereof may be 
returned to the applicant.

0
8. Revise Sec.  232.520 to read as follows:


Sec.  232.520  Maximum fees and charges by lender.

    See 24 CFR 200.40 titled ``HUD fees'' and 200.41 titled ``Maximum 
mortgage fees and charges'' for maximum fees and charges applicable to 
mortgages insured under 24 CFR part 232.

0
9. Revise Sec.  232.522 to read as follows:


Sec.  232.522  Inspection fee.

    See 24 CFR 200.40 titled ``HUD fees'' and 200.41 titled ``Maximum 
mortgage fees and charges'' for maximum fees and charges applicable to 
mortgages insured under 24 CFR part 232.

0
10. Revise Sec.  232.540 to read as follows:

[[Page 48028]]

Sec.  232.540  Method of loan payment and amortization period.

    See 24 CFR 200.82 titled ``Maturity'' for loan payment and 
amortization period requirements applicable to mortgages insured under 
24 CFR part 232.

0
11. In Sec.  232.565, revise the first sentence to read as follows:


Sec.  232.565  Maximum loan amount.

    The principal amount of the loan shall not exceed the lower of the 
Commissioner's estimate of the cost of the fire safety equipment, 
including the cost of installation and eligible fees, or the amount 
supported by ninety percent (90%) of the residual income, which is 
ninety percent (90%) of the amount of net income remaining after 
payment of all existing debt service requirements, as determined by the 
Commissioner. * * *

0
12. In Sec.  232.570, revise paragraph (c) to read as follows:


Sec.  232.570  Endorsement of credit instrument.

* * * * *
    (c) Certification that fire safety equipment was installed as 
required by Sec.  232.500(c).

0
13. Revise Sec.  232.605 to read as follows:


Sec.  232.605  Contract requirements.

    The contract between the mortgagor and the general contractor may 
be in the form of a lump sum contract, a cost plus contract, or 
different or alternative forms of contract specified by the 
Commissioner.

0
14. In Sec.  232.610, revise paragraph (a) to read as follows:


Sec.  232.610  Certification of cost requirements.

    (a) Certificate and adjustment. No loan shall be insured unless a 
certification of actual cost is made by the contractor.
* * * * *

0
15. In Sec.  232.615, revise paragraph (a) to read as follows:


Sec.  232.615  Eligible borrowers.

    (a) In order to be eligible as a borrower under this subpart the 
applicant shall be a profit or non-profit entity, which owns a nursing 
home or intermediate care facility for which the Secretary of Health 
and Human Services has determined that the installation of fire safety 
equipment in such facility is necessary to meet the applicable 
requirements of the Secretary of Health and Human Services for 
providers of services under Title XVIII and Title XIX of the Social 
Security Act and that upon completion of the installation of such 
equipment the nursing home or intermediate care facility will meet the 
applicable fire safety requirements of HHS. Until the termination of 
all obligations of the Commissioner under an insurance contract under 
this subpart and during such further period of time as the Commissioner 
shall be the owner, holder, or reinsurer of the loan, the borrower 
shall be regulated or restricted by the Commissioner as to methods of 
operation including requirements for maintenance of fire safety 
equipment.
* * * * *

0
16. Revise Sec.  232.620 to read as follows:


Sec.  232.620  Determination of compliance with fire safety equipment 
requirements.

    Prior to Endorsement, applicant must provide certification that the 
installed improvements will meet HHS, as well as all other Federal, 
state and local requirements for fire safety equipment, if applicable.

    Dated: August 6, 2015.
Edward L. Golding,
Principal Deputy, Assistant Secretary for Housing.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-19714 Filed 8-10-15; 8:45 am]
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                                               None.
                                                                                                     applies to this AD: The manager of the office         Acting Manager, Transport Airplane
                                             (c) Applicability                                       having certificate responsibility for the             Directorate, Aircraft Certification Service.
                                                This AD applies to Kidde Graviner hand-              affected product has the authority to approve         [FR Doc. 2015–19474 Filed 8–10–15; 8:45 am]
                                             operated fire extinguishers having part                 AMOCs for this AD, if requested using the
                                                                                                                                                           BILLING CODE 4910–13–P
                                             numbers 56412–001 (34H), 56411–001 (35H),               procedures found in 14 CFR 39.19. In
                                             and 56412–002 (38H). These fire                         accordance with 14 CFR 39.19, send your
                                             extinguishers may be installed on, but not              request to your principal inspector or local
                                             limited to, aircraft, certificated in any               Flight Standards District Office, as                  DEPARTMENT OF HOUSING AND
                                             category, specified in paragraphs (c)(1), (c)(2),       appropriate. The Manager, Boston Aircraft             URBAN DEVELOPMENT
                                             (c)(3), (c)(4), (c)(5), and (c)(6) of this AD.          Certification Office (ACO), FAA, will
                                                (1) BAE Systems (Operations) Limited                 coordinate requests for approval of AMOCs             24 CFR Parts 200 and 232
                                             Model ATP airplanes.                                    with the manager of the appropriate office for
                                                (2) BAE Systems (Operations) Limited                 the affected product. Send information to             [Docket No. FR–5632–F–02]
                                             Model 4101 airplanes.                                   ATTN: Ian Lucas, Aerospace Engineer,
                                                                                                     Boston ACO, ANE–150, FAA, Engine and                  RIN 2502–AJ27
                                                (3) Airbus Defense and Space S.A. (Type
                                             Certificate previously held by EADS CASA;               Propeller Directorate, 12 New England
                                             Construcciones Aeronauticas, S.A.) Model C–             Executive Park, Burlington, MA 01803;                 Federal Housing Administration (FHA):
                                             212–CB, C–212–CC, C–212–CD, C–212–CE,                   phone: 781–238–7757; fax: 781–238–7170;               Updating Regulations Governing HUD
                                             C–212–CF, C–212–DE, and C–212–DF                        email: ian.lucas@faa.gov. Before using any            Fees and the Financing of the
                                             airplanes.                                              approved AMOC, notify your appropriate                Purchase and Installation of Fire
                                                (4) Fokker Services B.V. Model F.27 Mark             principal inspector, or lacking a principal           Safety Equipment in FHA-Insured
                                             050, 100, 200, 300, 400, 500, 600, and 700              inspector, the manager of the local flight            Healthcare Facilities
                                             airplanes.                                              standards district office/certificate holding
                                                (5) Short Brothers PLC Model SD3–60                  district office. The AMOC approval letter             AGENCY:  Office of the Assistant
                                             SHERPA, SD3–SHERPA, SD3–30, and SD3–                    must specifically reference this AD.
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                                                                                                                                                           Secretary for Housing-Federal Housing
                                             60 airplanes.                                                                                                 Commissioner, HUD.
                                                                                                     (k) Related Information
                                                (6) SHORT BROTHERS & HARLAND LTD
                                             SC–7 Series 2 and SC–7 Series 3 airplanes.                (1) Refer to Mandatory Continuing                   ACTION: Final rule.
                                                                                                     Airworthiness Information (MCAI) European
                                             (d) Subject                                             Aviation Safety Agency (EASA)                         SUMMARY:   This rule updates HUD fees
                                               Air Transport Association (ATA) of                    Airworthiness Directive 2012–0037, dated              for multifamily housing and residential
                                             America Code 26, Fire Protection.                       March 9, 2012, for related information. This          healthcare facilities, and updates and


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                                                               Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations                                                 48025

                                             streamlines the Section 232 program                     232 program regulations. The current                  that the fire safety equipment has been
                                             regulations that govern the financing of                § 200.40(d), setting the general                      satisfactorily installed. The rule
                                             the purchase and installation of fire                   application fee, would be redesignated                proposed to replace this provision with
                                             safety equipment in insured healthcare                  as § 200.40(d)(1). In addition,                       a requirement of a certification that the
                                             facilities, which have not been                         paragraphs (d)(1) and (d)(2) would allow              improvements were installed as
                                             substantially updated in over 20 years.                 the Secretary flexibility in setting the              required by § 232.500(c). As stated
                                             This final rule gives HUD flexibility in                respective fees, up to a maximum fee of               earlier in regard to other proposed
                                             raising or lowering fees, and for                       $5.00 per thousand dollars of the                     changes, § 232.615 would still require
                                             residential healthcare facilities,                      requested mortgage amount to be                       the facility to meet HHS fire safety
                                             streamlines the loan application process                insured.                                              requirements in order for HUD to insure
                                             by eliminating unnecessary                                The rule proposed to eliminate the                  the loan.
                                             requirements, conforming needed                         commitment fee in HUD’s regulations at                   The rule proposed to eliminate the
                                             requirements to current industry                        24 CFR part 232, subpart C, and                       requirement in § 232.620 that an
                                             practices, and allowing for HUD to                      therefore also proposed to eliminate the              application for insurance under 24 CFR
                                             centralize the loan application process.                requirement in § 232.515 that the                     part 232, subpart C, be accompanied by
                                             DATES: Effective Date: September 10,                    commitment fee be refunded. The                       a statement from HHS or the HHS
                                             2015.                                                   provisions allowing for refund of the                 Secretary’s designee, such as a State,
                                                                                                     application fee remained unchanged. In                that the facility will meet pertinent
                                             FOR FURTHER INFORMATION CONTACT: For                    addition, instead of being set out in the             health and safety requirements of
                                             information about: HUD’s Multifamily                    Section 232 program regulations, the                  HHS—other than the fire safety
                                             Housing program, contact Dan Sullivan,                  maximum fees and charges and the                      equipment requirements—once the fire
                                             Deputy Director, Office of Multifamily                  inspection fee in §§ 232.520 and                      safety equipment has been installed.
                                             Housing Development, Office of                          232.522, respectively, would cross-                   Instead of this requirement, the rule
                                             Housing, Department of Housing and                      reference the §§ 200.40 and 200.41                    proposed to substitute a reference to
                                             Urban Development, 451 7th Street SW.,                  regulations.                                          certification of compliance with HHS,
                                             Room 6148, Washington, DC 20410–                                                                              Federal, State, and local requirements
                                             8000; telephone number 202–708–1142;                    Update and Streamline 24 CFR 232,
                                                                                                                                                           for fire safety equipment to be provided
                                             HUD’s Healthcare program, contact                       Subpart C, Regulations
                                                                                                                                                           prior to endorsement.
                                             Vance Morris, Office of Healthcare                         HUD’s January 14, 2015, rule                          Definitions. The rule proposed to
                                             Programs, Office of Housing,                            proposed to update and streamline the                 update the outdated standard in
                                             Department of Housing and Urban                         requirements of HUD’s regulations at 24               § 232.500(c)(1) which required ‘‘fire
                                             Development, 451 7th Street SW., Room                   CFR part 232, subpart C, and primarily                safety equipment’’ to meet the standards
                                             6134, Washington, DC 20410–8000;                        focused on removing or revising several               for applicable occupancy of any edition
                                             telephone number 202–402–2419. The                      fees required in these regulations that               of the Life Safety Code 1 (LSC) of the
                                             telephone numbers listed above are not                  HUD has determined are no longer                      National Fire Protection Association
                                             toll-free numbers. Persons with hearing                 needed or, alternatively, are not set at              after 1966 (§ 232.500(c)(1)(i)); or a
                                             or speech impairments may access these                  sufficient levels.                                    standard mandated by a State, under the
                                             numbers through TTY by calling the                         Health and Human Services (HHS)                    provisions of section 1616(e) of the
                                             toll-free Federal Relay Service at 800–                 requirements and involvement. The rule                Social Security Act (§ 232.500(c)(1)(ii));
                                             877–8339 (this is a toll-free number).                  proposed to streamline HUD’s                          or any appropriate requirement
                                             SUPPLEMENTARY INFORMATION:                              regulations by eliminating duplicative                approved by the Secretary of HHS for
                                                                                                     and unnecessary involvement by HHS.                   providers of services under title XVIII or
                                             I. Background—the January 14, 2015,                     For example, the rule proposed to revise              title XIX of the Social Security Act
                                             Proposed Rule                                           the definition of ‘‘equipment cost’’ in               (§ 232.500(c)(1)(iii)). For
                                                On January 14, 2015, HUD published                   § 232.500(e) to eliminate the                         § 232.500(c)(1)(i), the rule proposed
                                             a proposed rule in the Federal Register,                involvement of the Secretary of HHS in                instead to require that ‘‘fire safety
                                             at 80 FR 1855, to update HUD fees for                   estimating the reasonable cost of the fire            equipment’’ meet the applicable
                                             multifamily housing and residential                     safety equipment installation. HUD has                provisions of the edition of the LSC
                                             healthcare facilities, and update and                   determined that the estimate by the                   adopted by the Secretary of HHS. For
                                             streamline the Section 232 program                      Secretary of HHS is an unnecessary                    § 232.500(c)(1)(ii), HUD proposed no
                                             regulations that govern the financing of                step.                                                 change. HUD proposed to remove
                                             the purchase and installation of fire                      The rule proposed to remove the                    § 232.500(c)(1)(iii), because approval by
                                             safety equipment in insured healthcare                  requirement at § 232.505(a) that an                   the Secretary of HHS is achieved
                                             facilities. See the January 14, 2015,                   application for insurance of a fire safety            through the change to § 232.500(c)(1)(i).
                                             proposed rule for a more detailed listing               loan under part 232 be considered in                     The rule also proposed to revise the
                                             of the proposed changes.                                connection with a proposal approved by                definition of ‘‘eligible borrower’’ in
                                                                                                     the Secretary of HHS. Section 232.615                 § 232.615 to eliminate all references to
                                             Update HUD Fees
                                                                                                     would still require, however, that the                the requirement that the facility meet
                                               HUD’s January 14, 2015, rule                          facility requesting the loan meet HHS
                                             proposed to amend HUD’s general fee                     fire safety requirements.                               1 The Life Safety Code addresses those

                                             regulations in 24 CFR 200.40, which                        In § 232.510(b), the rule proposed to              construction, protection, and occupancy features
                                             contain the fees that apply to most                     replace the responsibility of the                     necessary to minimize danger to life from the effects
                                                                                                                                                           of fire, including smoke, heat, and toxic gases
                                             mortgages insured by FHA, including
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                                                                                                     Secretary of HHS to determine the                     created during a fire. The code also addresses
                                             Section 232 mortgages. To bring                         satisfactory completion of installation of            protective features and systems, building services,
                                             consistency and conformity to HUD’s                     fire safety equipment with that of the                operating features, maintenance activities, and
                                             regulations, the amount of the                          Commissioner.                                         other provisions in recognition of the fact that
                                                                                                                                                           achieving an acceptable degree of life safety
                                             application fee for Section 232 programs                   In § 232.570, the rule proposed to                 depends on additional safeguards to provide
                                             would be moved to a new § 200.40(d)(2),                 eliminate the requirement that the                    adequate egress time or protection for people
                                             and only cross-referenced in the Section                Secretary of HHS submit a statement                   exposed to fire.



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                                             48026             Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations

                                             HHS health and safety requirements,                     regulatory action is significant and,                 speech or hearing impairments may
                                             although the facility would still have to               therefore, subject to review by the Office            access this number via TTY by calling
                                             meet HHS fire safety requirements.                      of Management and Budget (OMB) in                     the Federal Relay Service at 800–877–
                                                Applications. HUD proposed to                        accordance with the requirements of the               8339 (this is a toll-free number).
                                             remove the requirement in § 232.505(b)                  order. Executive Order 13563
                                                                                                                                                           Unfunded Mandates Reform Act
                                             to submit applications to HUD’s local                   (Improving Regulations and Regulatory
                                             offices.                                                Review) directs executive agencies to                   Title II of the Unfunded Mandates
                                                Method of loan payment and                           analyze regulations that are ‘‘outmoded,              Reform Act of 1995 (2 U.S.C. 1531–
                                             amortization period. Instead of being set               ineffective, insufficient, or excessively             1538) (UMRA) establishes requirements
                                             out in the 232 program regulations, the                 burdensome, and to modify, streamline,                for Federal agencies to assess the effects
                                             method of loan payment and                              expand, or repeal them in accordance                  of their regulatory actions on State,
                                             amortization period in § 232.540 would                  with what has been learned.’’ Executive               local, and tribal governments, and on
                                             cross-reference § 200.82.                               Order 13563 also directs that, where                  the private sector. This rule would not
                                                Maximum loan amount. In § 232.565,                   relevant, feasible, and consistent with               impose any Federal mandates on any
                                             the rule proposed to revise the                         regulatory objectives, and to the extent              State, local, or tribal governments, or on
                                             maximum loan amount to allow for the                    permitted by law, agencies are to                     the private sector, within the meaning of
                                             financing of fees, similar to the                       identify and consider regulatory                      the UMRA.
                                             regulations governing fees in other                     approaches that reduce burdens and
                                                                                                                                                           Regulatory Flexibility Act
                                             Section 232 loan insurance programs.                    maintain flexibility and freedom of
                                                Contract requirements. The rule                      choice for the public.                                   The Regulatory Flexibility Act (5
                                             proposed to remove the limitation in                       At the proposed rule stage, this                   U.S.C. 601 et seq.) generally requires an
                                             § 232.605 that contracts be either lump                 document was determined not to be a                   agency to conduct a regulatory
                                             sum or cost plus contracts and instead                  ‘‘significant regulatory action’’ as                  flexibility analysis of any rule subject to
                                             proposed to allow such contracts as may                 defined in section 3(f) of the Executive              notice and comment rulemaking
                                             be specified by the FHA Commissioner.                   order. Because this final rule adopts the             requirements, unless the agency certifies
                                                Certification of cost requirements. In               January 14, 2015, proposed rule,                      that the rule will not have a significant
                                             § 232.610, the rule proposed to require                 without change, the final rule is also not            economic impact on a substantial
                                             that a certification of actual cost be                  a ‘‘significant regulatory action’’ as                number of small entities.
                                             made for all forms of contract, instead                 defined in section 3(f) of Executive                     The final rule imposes no
                                             of only when a cost plus form of                        Order 12866.                                          requirements on small businesses. In
                                             contract is used. Further, it proposed to                                                                     fact, streamlining the Fire Safety
                                                                                                     Paperwork Reduction Act
                                             eliminate the requirement that the                                                                            Equipment Loan Program requirements
                                                                                                       The information collection                          should ease an existing burden on those
                                             amount of the loan be adjusted to reflect
                                                                                                     requirements contained in this proposed               small businesses seeking to
                                             the actual cost to the borrower of the
                                                                                                     rule have been submitted to the OMB                   accommodate acute care patients and
                                             improvements.
                                                                                                     under the Paperwork Reduction Act of                  those needing to upgrade or install fire
                                             II. This Final Rule                                     1995 (44 U.S.C. 3501–3520), and                       safety equipment to meet HHS
                                                This final rule follows publication of               approved under OMB control numbers                    requirements.
                                             the January 14, 2015, proposed rule and                 2502–0605 and 2502–0541. In                              Accordingly, the undersigned certifies
                                             adopts that proposed rule without                       accordance with the Paperwork                         that this final rule will not have a
                                             change. The public comment period for                   Reduction Act, an agency may not                      significant economic impact on a
                                             the proposed rule closed on March 16,                   conduct or sponsor, and a person is not               substantial number of small entities.
                                             2015, and HUD received one public                       required to respond to, a collection of
                                                                                                     information unless the collection                     Executive Order 13132, Federalism
                                             comment.
                                                                                                     displays a currently valid OMB control                   Executive Order 13132 (entitled
                                                Comment: This rulemaking is the
                                                                                                     number.                                               ‘‘Federalism’’) prohibits an agency from
                                             appropriate solution to an outdated and
                                                                                                                                                           publishing any rule that has federalism
                                             burdensome loan application process.                    Environmental Review
                                                                                                                                                           implications if the rule either (i)
                                             Commenter is supportive of HUD’s                          A Finding of No Significant Impact                  imposes substantial direct compliance
                                             proposed rule to update outdated and                    (FONSI) with respect to the                           costs on State and local governments
                                             burdensome requirements. Commenter                      environment for this rule was made at                 and is not required by statute or (ii)
                                             states that updating the rules that                     the proposed rule stage, in accordance                preempts State law, unless the agency
                                             govern the financing of the purchase                    with HUD regulations at 24 CFR part 50,               meets the consultation and funding
                                             and installation of fire safety equipment               which implement section 102(2)(C) of                  requirements of section 6 of the
                                             in insured healthcare facilities will save              the National Environmental Policy Act                 Executive order. This rule does not have
                                             lives and streamlining the loan                         of 1969 (42 U.S.C. 4332(2)(C)). The                   federalism implications and does not
                                             application process will reduce                         FONSI remains applicable, and is                      impose substantial direct compliance
                                             administrative burdens and costs.                       available for public inspection between               costs on State and local governments or
                                                HUD Response: HUD appreciates the                    8 a.m. and 5 p.m., weekdays, in the                   preempt State law within the meaning
                                             commenter’s support for this rule and                   Regulations Division, Office of General               of the Executive order.
                                             adopts the proposed rule without                        Counsel, Department of Housing and
                                             change.                                                 Urban Development, 451 7th Street SW.,                Catalogue of Federal Domestic
                                                                                                     Room 10276, Washington, DC 20410–                     Assistance
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                                             III. Findings and Certifications
                                                                                                     5000. Due to security measures at the                   The Catalogue of Federal Domestic
                                             Regulatory Review—Executive Orders                      HUD Headquarters building, please                     Assistance Number for the Mortgage
                                             12866 and 13563                                         schedule an appointment to review the                 Insurance Nursing Homes, Intermediate
                                               Under Executive Order 12866                           FONSI by calling the Regulations                      Care Facilities, Board and Care Homes
                                             (Regulatory Planning and Review), a                     Division at 202–402–3055 (this is not a               and Assisted Living Facilities is 14.129;
                                             determination must be made whether a                    toll-free number). Individuals with                   for Mortgage Insurance-Rental Housing


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                                                               Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations                                         48027

                                             is 14.134; for Mortgage Insurance for the               thousand dollars of the requested                     completion of installation of the fire
                                             Purchase or Refinancing of Existing                     mortgage amount to be insured.                        safety equipment, as determined by the
                                             Multifamily Housing Projects is 14.155.                 *    *    *     *     *                               Commissioner.
                                                                                                                                                              (c) Term of commitment. A
                                             List of Subjects                                                                                              commitment shall have a term as the
                                                                                                     PART 232—MORTGAGE INSURANCE
                                             24 CFR Part 200                                         FOR NURSING HOMES,                                    Commissioner deems necessary for
                                                                                                     INTERMEDIATE CARE FACILITIES,                         satisfactory completion of installation.
                                               Administrative practice and                                                                                    (d) Commitment fee. See 24 CFR
                                                                                                     BOARD AND CARE HOMES, AND
                                             procedure, Claims, Equal employment                                                                           200.40(d)(2).
                                                                                                     ASSISTED LIVING FACILITIES
                                             opportunity, Fair housing, Home                                                                                  (e) Increase in commitment prior to
                                             improvement, Housing standards, Lead                    ■ 3. The authority citation for 24 CFR                endorsement. An application, filed prior
                                             poisoning, Loan programs—housing and                    part 232 continues to read as follows:                to endorsement, for an increase in the
                                             community development, Mortgage                                                                               amount of an outstanding firm
                                                                                                       Authority: 12 U.S.C. 1715b, 1715w; 42
                                             insurance, Organization and functions                                                                         commitment shall be accompanied by
                                                                                                     U.S.C. 3535(d).
                                             (Government agencies), Penalties,                                                                             an additional application fee. The
                                             Reporting and recordkeeping.                            Subpart C—Eligibility Requirements—                   additional application fee shall be in an
                                             24 CFR Part 232                                         Supplemental Loans To Finance                         amount determined by the Secretary as
                                                                                                     Purchase and Installation of Fire                     equal to the amount determined under
                                               Fire prevention, Health facilities,                   Safety Equipment                                      24 CFR 200.40(d)(2), which shall not
                                             Loan programs—health, Loan                                                                                    exceed $5.00 per thousand dollars of the
                                             programs—housing and community                          ■ 4. In § 232.500, revise paragraphs                  amount of the requested increase. If an
                                             development, Mortgage insurance,                        (c)(1)(i) and (ii) and (e) to read as                 inspection fee was required in the
                                             Nursing homes, Reporting and                            follows:                                              original commitment, an additional
                                             recordkeeping requirements.                                                                                   inspection fee shall be paid in an
                                                                                                     § 232.500    Definitions.
                                               Accordingly, for the reasons                                                                                amount computed at the same dollar
                                             discussed in this preamble, HUD                         *      *    *     *     *                             rate per thousand dollars of the amount
                                                                                                       (c) * * *                                           of increase in commitment as was used
                                             amends 24 CFR parts 200 and 232 as
                                                                                                       (1) * * *
                                             follows:                                                                                                      for the inspection fee required in the
                                                                                                       (i) The edition of The Life Safety Code
                                                                                                                                                           original commitment. The additional
                                             PART 200—INTRODUCTION TO FHA                            of the National Fire Protection
                                                                                                                                                           inspection fee shall be paid prior to the
                                             PROGRAMS                                                Association as accepted by the
                                                                                                                                                           date installation of fire safety equipment
                                                                                                     Department of Health and Human
                                                                                                                                                           is begun, or, if installation has begun, it
                                             ■ 1. The authority citation for 24 CFR                  Services in 42 CFR 483.70; or
                                                                                                                                                           shall be paid with the application for
                                             part 200 continues to read as follows:                    (ii) A standard mandated by a State
                                                                                                                                                           increase.
                                                                                                     under the provisions of section 1616(e)
                                               Authority: 12 U.S.C. 1702–1715z–21; 42                                                                      ■ 7. Revise § 232.515 to read as follows:
                                             U.S.C. 3535(d).
                                                                                                     of the Social Security Act.
                                                                                                     *      *    *     *     *                             § 232.515   Refund of fees.
                                             ■  2. Amend § 200.40 to:                                  (e) Equipment cost means the
                                             ■ a. Redesignate paragraph (d) as
                                                                                                                                                              If the amount of the commitment
                                                                                                     reasonable cost of fire safety equipment              issued or an increase in the loan amount
                                             paragraph (d)(1);                                       fully installed as determined by the                  prior to endorsement is less than the
                                             ■ b. Revise the paragraph heading and                   Commissioner.                                         amount applied for, the Commissioner
                                             first sentence of newly redesignated
                                                                                                     *      *    *     *     *                             shall refund the excess amount of the
                                             (d)(1); and
                                                                                                     ■ 5. Revise § 232.505 to read as follows:             application fee submitted by the
                                             ■ c. Add paragraph (d)(2).
                                                                                                                                                           applicant. If an application is rejected
                                                The revisions and addition read as                   § 232.505    Application and application fee.         before it is assigned for processing, or in
                                             follows:                                                  (a) Filing of application. An                       such other instances as the
                                             § 200.40   HUD fees.                                    application for insurance of a fire safety            Commissioner may determine, the
                                                                                                     loan for a nursing home, intermediate                 entire application fee or any portion
                                             *      *   *     *     *
                                                                                                     care facility, assisted living facility or            thereof may be returned to the
                                               (d)(1) Application fee—firm                           board and care home shall be submitted                applicant.
                                             commitment: General. An application                     on an approved HUD form by an                         ■ 8. Revise § 232.520 to read as follows:
                                             for firm commitment shall be                            approved lender and by the owners of
                                             accompanied by an application-                          the project to the HUD office.                        § 232.520   Maximum fees and charges by
                                             commitment fee in an amount                               (b) Application fee. See 24 CFR                     lender.
                                             determined by the Secretary, which                      200.40(d)(2).                                           See 24 CFR 200.40 titled ‘‘HUD fees’’
                                             when added to any prior fees received                                                                         and 200.41 titled ‘‘Maximum mortgage
                                                                                                     ■ 6. Amend § 232.510 to:
                                             in connection with the same                                                                                   fees and charges’’ for maximum fees and
                                                                                                     ■ a. Revise paragraphs (b), (c), and (d);
                                             application, shall not exceed $5.00 per                                                                       charges applicable to mortgages insured
                                                                                                     ■ b. Remove paragraph (e); and
                                             thousand dollars of the requested                                                                             under 24 CFR part 232.
                                                                                                     ■ c. Redesignate paragraph (f) as
                                             mortgage amount to be insured.                                                                                ■ 9. Revise § 232.522 to read as follows:
                                                                                                     paragraph (e) and revise newly
                                               * * *                                                 designated paragraph (e) to read as
                                               (2) Application fee—Section 232                                                                             § 232.522   Inspection fee.
                                                                                                     follows:
                                             Programs. For purposes of mortgages                                                                             See 24 CFR 200.40 titled ‘‘HUD fees’’
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                                             insured under HUD’s regulations in 24                   § 232.510    Commitment and commitment                and 200.41 titled ‘‘Maximum mortgage
                                             CFR part 232, subpart C, an application                 fee.                                                  fees and charges’’ for maximum fees and
                                             for firm commitment shall be                            *     *    *     *    *                               charges applicable to mortgages insured
                                             accompanied by an application fee in an                   (b) Type of commitment. The                         under 24 CFR part 232.
                                             amount determined by the Secretary,                     commitment will provide for the                       ■ 10. Revise § 232.540 to read as
                                             which shall not exceed $5.00 per                        insurance of the loan after satisfactory              follows:


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                                             48028             Federal Register / Vol. 80, No. 154 / Tuesday, August 11, 2015 / Rules and Regulations

                                             § 232.540 Method of loan payment and                    equipment the nursing home or                         FOR FURTHER INFORMATION CONTACT:     Don
                                             amortization period.                                    intermediate care facility will meet the              Bunuan, U.S. Department of Education,
                                               See 24 CFR 200.82 titled ‘‘Maturity’’                 applicable fire safety requirements of                400 Maryland Avenue SW., Room 5046,
                                             for loan payment and amortization                       HHS. Until the termination of all                     Potomac Center Plaza (PCP),
                                             period requirements applicable to                       obligations of the Commissioner under                 Washington, DC 20202–2800.
                                             mortgages insured under 24 CFR part                     an insurance contract under this subpart              Telephone: (202) 245–6616 or by email:
                                             232.                                                    and during such further period of time                don.bunuan@ed.gov.
                                             ■ 11. In § 232.565, revise the first                    as the Commissioner shall be the owner,                  If you use a telecommunications
                                             sentence to read as follows:                            holder, or reinsurer of the loan, the                 device for the deaf (TDD) or a text
                                                                                                     borrower shall be regulated or restricted             telephone (TTY), call the Federal Relay
                                             § 232.565   Maximum loan amount.                        by the Commissioner as to methods of                  Service (FRS), toll free, at 1–800–877–
                                                The principal amount of the loan                     operation including requirements for                  8339.
                                             shall not exceed the lower of the                       maintenance of fire safety equipment.                 SUPPLEMENTARY INFORMATION:
                                             Commissioner’s estimate of the cost of                  *     *     *     *     *
                                             the fire safety equipment, including the                                                                         Purpose of Program: This program is
                                             cost of installation and eligible fees, or              ■ 16. Revise § 232.620 to read as                     designed to (a) develop new types of
                                             the amount supported by ninety percent                  follows:                                              training programs for rehabilitation
                                             (90%) of the residual income, which is                                                                        personnel and to demonstrate the
                                                                                                     § 232.620 Determination of compliance                 effectiveness of these new types of
                                             ninety percent (90%) of the amount of                   with fire safety equipment requirements.
                                             net income remaining after payment of                                                                         training programs for rehabilitation
                                                                                                        Prior to Endorsement, applicant must               personnel in providing rehabilitation
                                             all existing debt service requirements, as              provide certification that the installed
                                             determined by the Commissioner. * * *                                                                         services to individuals with disabilities;
                                                                                                     improvements will meet HHS, as well as                and (b) develop new and improved
                                             ■ 12. In § 232.570, revise paragraph (c)                all other Federal, state and local                    methods of training rehabilitation
                                             to read as follows:                                     requirements for fire safety equipment,               personnel, so that there may be a more
                                             § 232.570 Endorsement of credit                         if applicable.                                        effective delivery of rehabilitation
                                             instrument.                                               Dated: August 6, 2015.                              services by State and other
                                             *     *     *     *     *                               Edward L. Golding,                                    rehabilitation agencies.
                                               (c) Certification that fire safety                    Principal Deputy, Assistant Secretary for                Program Authority: 29 U.S.C.
                                             equipment was installed as required by                  Housing.                                              772(a)(1).
                                             § 232.500(c).                                           Nani A. Coloretti,                                       Applicable Program Regulations: 34
                                             ■ 13. Revise § 232.605 to read as                       Deputy Secretary.
                                                                                                                                                           CFR part 385 and 387.
                                             follows:                                                                                                         We published a notice of proposed
                                                                                                     [FR Doc. 2015–19714 Filed 8–10–15; 8:45 am]
                                                                                                                                                           priority for this competition in the
                                                                                                     BILLING CODE 4210–67–P
                                             § 232.605   Contract requirements.                                                                            Federal Register on May 28, 2015 (80
                                               The contract between the mortgagor                                                                          FR 30399). That notice contained
                                             and the general contractor may be in the                                                                      background information and our reasons
                                             form of a lump sum contract, a cost plus                DEPARTMENT OF EDUCATION                               for proposing the particular priority.
                                             contract, or different or alternative                                                                         There are differences between the
                                             forms of contract specified by the                      34 CFR Chapter III                                    proposed priority and the final priority,
                                             Commissioner.                                                                                                 and we explain those differences in the
                                                                                                     [Docket ID ED–2015–OSERS–0048; CFDA
                                             ■ 14. In § 232.610, revise paragraph (a)                Number: 84.263B.]                                     Analysis of Comments and Changes
                                             to read as follows:                                                                                           section of this notice.
                                                                                                     Final Priority—Technical Assistance                      Public Comment: In response to our
                                             § 232.610 Certification of cost                         Center for Vocational Rehabilitation                  invitation in the notice of proposed
                                             requirements.                                                                                                 priority, four parties submitted
                                                                                                     Agency Program Evaluation and
                                               (a) Certificate and adjustment. No                    Quality Assurance                                     comments.
                                             loan shall be insured unless a                                                                                   Generally, we do not address
                                             certification of actual cost is made by                 AGENCY:  Office of Special Education and              technical and other minor changes. In
                                             the contractor.                                         Rehabilitative Services, Department of                addition, we do not address comments
                                             *     *     *     *     *                               Education.                                            that raise concerns not directly related
                                             ■ 15. In § 232.615, revise paragraph (a)                ACTION: Final priority.                               to the proposed priority.
                                             to read as follows:                                                                                              Analysis of the Comments and
                                                                                                     SUMMARY:   The Assistant Secretary for                Changes: An analysis of the comments
                                             § 232.615   Eligible borrowers.                         Special Education and Rehabilitative                  and of any changes in the priority since
                                                (a) In order to be eligible as a                     Services announces a priority under the               publication of the notice of proposed
                                             borrower under this subpart the                         Experimental and Innovative Training                  priority follows.
                                             applicant shall be a profit or non-profit               program. The Assistant Secretary may                     Comment: One commenter observed
                                             entity, which owns a nursing home or                    use this priority for competitions in                 that the priority should provide for
                                             intermediate care facility for which the                fiscal year (FY) 2015 and later years. We             continuing personnel development for
                                             Secretary of Health and Human Services                  take this action to focus Federal                     those who have completed the Basic
                                             has determined that the installation of                 financial assistance on an identified                 Certification Program and approach the
                                             fire safety equipment in such facility is               national need. We intend the priority to              intermediate level of competency. The
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                                             necessary to meet the applicable                        support a Technical Assistance Center                 commenter recommended allowing
                                             requirements of the Secretary of Health                 for Vocational Rehabilitation Agency                  those who have completed the Basic
                                             and Human Services for providers of                     Program Evaluation and Quality                        Certification Training to qualify as
                                             services under Title XVIII and Title XIX                Assurance (PEQA).                                     intermediate-level program evaluators
                                             of the Social Security Act and that upon                DATES: This priority is effective                     in order to access the Special Topical
                                             completion of the installation of such                  September 10, 2015.                                   Trainings. In addition, two commenters


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Document Created: 2016-09-27 22:25:26
Document Modified: 2016-09-27 22:25:26
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactFor information about: HUD's Multifamily Housing program, contact Dan Sullivan, Deputy Director, Office of Multifamily Housing Development, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 6148, Washington, DC 20410-8000; telephone number 202-708-1142; HUD's Healthcare program, contact Vance Morris, Office of Healthcare Programs, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 6134, Washington, DC 20410-8000; telephone number 202-402-2419. The telephone numbers listed above are not toll-free numbers. Persons with hearing or speech impairments may access these numbers through TTY by calling the toll-free Federal Relay Service at 800-877-8339 (this is a toll-free number).
FR Citation80 FR 48024 
RIN Number2502-AJ27
CFR Citation24 CFR 200
24 CFR 232
CFR AssociatedAdministrative Practice and Procedure; Claims; Equal Employment Opportunity; Fair Housing; Home Improvement; Housing Standards; Lead Poisoning; Loan Programs-Housing and Community Development; Mortgage Insurance; Organization and Functions (government Agencies); Penalties; Reporting and Recordkeeping; Fire Prevention; Health Facilities; Loan Programs-Health; Nursing Homes and Reporting and Recordkeeping Requirements

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