80_FR_50725 80 FR 50564 - Housing Choice Voucher Program: Streamlining the Portability Process

80 FR 50564 - Housing Choice Voucher Program: Streamlining the Portability Process

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 161 (August 20, 2015)

Page Range50564-50575
FR Document2015-20551

This final rule amends HUD's regulations governing portability in the Housing Choice Voucher (HCV) program. Portability is a feature of the HCV program that allows an eligible family with a housing choice voucher to use that voucher to lease a unit anywhere in the United States where there is a public housing agency (PHA) operating an HCV program. The purpose of HUD's changes to the portability regulations is to enable PHAs to better serve families and expand housing opportunities by improving portability processes.

Federal Register, Volume 80 Issue 161 (Thursday, August 20, 2015)
[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)]
[Rules and Regulations]
[Pages 50564-50575]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20551]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 982

[Docket No. FR-5453-F-02]
RIN 2577-AC86


Housing Choice Voucher Program: Streamlining the Portability 
Process

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

ACTION: Final rule.

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SUMMARY: This final rule amends HUD's regulations governing portability 
in the Housing Choice Voucher (HCV) program. Portability is a feature 
of the HCV program that allows an eligible family with a housing choice 
voucher to use that voucher to lease a unit anywhere in the United 
States where there is a public housing agency (PHA) operating an HCV 
program. The purpose of HUD's changes to the portability regulations is 
to enable PHAs to better serve families and expand housing 
opportunities by improving portability processes.

DATES: Effective: September 21, 2015.

FOR FURTHER INFORMATION CONTACT: Becky Primeaux, Director, Housing 
Voucher and Management Operations Division, Office of Housing Choice 
Vouchers, Office of Public and Indian Housing, Department of Housing 
and Urban Development, 451 7th Street SW., Room 4216, Washington, DC 
20410-8000, telephone number 202-708-0477 (this is not a toll-free 
number). Individuals with speech or hearing impairments may access this 
number through TTY by calling the Federal Relay Service at 800-877-8339 
(this is a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Executive Summary

A. Purpose of the Regulatory Action

    The purpose of this final rule is to improve the portability 
process of the HCV program. Under the HCV program, the participating 
family is free to choose any housing that meets the requirements of the 
program. As a means to enable housing choice and mobility to encourage 
social and economic integration, the HCV program offers voucher 
portability; that is, the ability of a voucher holder to use the 
voucher assistance outside the jurisdiction of the PHA that initially 
issues the family its voucher. While portability offers an important 
mechanism to increase housing choice, this feature has not been 
maximized by PHAs and participating families because the current 
process for allowing a family to move from one jurisdiction to another 
is time consuming and burdensome. HUD recognizes that for the HCV 
program's goals to support mobility and housing choice to be realized, 
the regulations governing the portability process must be clarified so 
that the burden on families and the PHA is reduced. This final rule 
completes the rulemaking process, which commenced in 2012, to revise 
the existing portability regulations to streamline the portability 
process and facilitate the ability of participating families to move to 
the jurisdiction of their choice.

B. Summary of the Major Provisions of the Regulatory Action

    The key regulatory changes by this final rule include:
     Removing the mandatory absorption requirement discussed in 
the proposed rule and clarifying the notification requirement for 
mandatory voucher suspension;
     Requiring an initial PHA to notify the local HUD office 
within 10 business days of a determination to deny a portability move 
based on insufficient funding;
     Providing that the voucher issued by the receiving PHA to 
the family may not expire before 30 calendar days has passed from the 
expiration date of the initial PHA's voucher;
     Requiring briefings for all participating on how 
portability works and the benefits of living in low-poverty census 
tracts; and
     Allowing a family to choose the receiving PHA to 
administer their voucher should they choose to use portability.

Please see Section III of this preamble, entitled ``Changes at the 
Final Rule Stage'' for a more detailed discussion of all the changes 
proposed by this rule.

C. Costs and Benefits

    The changes made by this final rule are designed to minimize burden 
for PHAs and participating HCV families and thereby increase the 
ability of participating families to live in areas of their choice or 
relocate to a new area for employment opportunities or to gain access 
to preferred schools for their children. In addition, the improved 
portability process contributes to helping victims of domestic 
violence, dating violence, sexual assault, and stalking have access to 
the resources necessary to relocate to a safe, stable home away from an 
abuser. Further, moves to areas with relatively low concentrations of 
neighborhood poverty have shown to relay important benefits to housing 
choice voucher families, in particular mental and physical health for 
adults and long-term educational and earning gains for young children. 
HUD recognizes that some policies may increase burden for some PHAs; 
however, the added clarity to the portability process afforded by this 
final rule is expected to improve the portability process and reduce 
the burden on families and PHAs.
    The streamlining changes do not add any substantial cost to the HCV 
program.

II. Background--the March 28, 2012, Proposed Rule

    On March 28, 2012, at 77 FR 18731, HUD published a rule in the 
Federal Register that proposed to amend HUD's regulations governing 
portability in the HCV program. The HCV program is the Federal 
Government's largest program for assisting very low-income families, 
the elderly, and persons with disabilities to afford decent, safe, and 
sanitary housing in the private market. The HCV program is authorized 
by section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1473f(o)) (1937 Act), and the HCV program regulations are found in 24 
CFR part 982.
    Housing choice vouchers are administered locally by PHAs. PHAs 
receive Federal funds from HUD to administer the HCV program. Under the 
HCV program, housing assistance is provided on behalf of the 
participating family who is responsible for finding a suitable housing 
unit of their choice where the owner agrees to rent under the program. 
The participant is free to choose any rental housing, including single 
family homes, townhouses, and apartments, that meets the requirements 
of the program and is not limited to units located in subsidized 
housing projects. Under certain circumstances, if authorized by the 
PHA, a family may use its voucher to purchase a modest home.
    A housing subsidy is paid to the landlord directly by the PHA on 
behalf of the participating family. The family then pays the difference 
between the actual rent charged by the landlord and the amount 
subsidized by the program. The PHA determines the amount that the 
family will contribute toward rent, which is generally 30 percent of 
its adjusted annual income. A key feature

[[Page 50565]]

of the HCV program is the mobility of the voucher assistance. Section 
8(r) of the 1937 Act provides that HCV participants may choose a unit 
that meets program requirements anywhere in the United States, provided 
that a PHA administering the tenant-based program has jurisdiction over 
the area in which the unit is located.
    The term ``portability'' refers to the process of leasing a 
dwelling unit with tenant-based housing voucher assistance outside of 
the jurisdiction of the PHA that initially issued the family its 
voucher (the initial PHA). The HCV regulations, found at 24 CFR 982.353 
through 982.355, detail where a family may move and the 
responsibilities of the initial PHA and the receiving PHA (the PHA with 
jurisdiction over the area to which the family desires to move). 
Situations have arisen over time that caused HUD to identify several 
issues that may delay or impede the ability of families to relocate 
with their voucher.
    This final rule takes into consideration public comment received on 
the March 28, 2012, proposed rule and: (1) More clearly delineates the 
roles of initial and receiving PHAs; (2) improves accountability in 
portability billing arrangements between PHAs; and (3) allows families 
to more easily search for and lease a rental unit in their desired 
location.

III. Changes at the Final Rule Stage

    In response to public comment and following further consideration 
of portability issues by HUD, this final rule makes certain changes to 
the regulations proposed in the March 28, 2012, rule. Changes made in 
response to public comment, issues raised by commenters, and HUD's 
responses to the comments are further addressed in Section III of this 
preamble.
    The following highlights the more substantive changes made to the 
proposed rule at this final rule stage:
    1. Definition of Absorption (Sec.  982.4(b)). To be consistent with 
HUD's portability regulations at Sec.  982.355(d), which allows a PHA 
to absorb the family instead of billing the initial PHA, HUD revises 
the definition of absorption under the HCV program to mean the point at 
which a receiving PHA starts making assistance payments with funding 
under its consolidated Annual Contributions Contract (ACC), rather than 
billing, the initial PHA. The current definition implies that, in order 
to absorb a family, the receiving PHA has to first bill the initial 
PHA. The definition in this final rule also amends the recently revised 
definition in HUD's ``Removal of Obsolete Section 8 Rental Assistance 
Certificate Program Regulations,'' \1\ which was effective on March 19, 
2015, to be consistent with this final portability final rule.
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    \1\ See http://www.thefederalregister.org/fdsys/pkg/FR-2015-02-17/pdf/2015-03037.pdf.
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    2. Mandatory voucher suspension (Sec.  982.4 and Sec.  982.303(c)). 
HUD revises the notification requirement and definition pertaining to 
mandatory voucher suspension to provide clarity and avoid the 
possibility of disputes between families and PHAs.
    3. Notification requirement before denying moves for insufficient 
funding (Sec.  982.354). HUD revises the written notification 
requirement to require an initial PHA to notify the local HUD office 
within 10 business days of a determination to deny a portability move 
based on insufficient funding.
    4. Portability processing procedures (Sec.  982.355(g)). HUD 
revises Sec.  982.355(g), which pertains to special purpose vouchers 
(SPVs), to clarify that PHAs must administer SPVs in accordance with 
HUD-established policy, including any alternative program requirements 
established by HUD for SPVs.
    5. Term of receiving PHA voucher (Sec.  982.355(c)(13)). HUD 
revises Sec.  982.355(c)(13) to provide that the voucher, issued by the 
receiving PHA to the family, may not expire before 30 calendar days 
have passed from the expiration date of the initial PHA's voucher. 
However, if the initial PHA's voucher has expired before the family 
arrives in the jurisdiction of the receiving PHA, the PHA must contact 
the initial PHA to determine if the initial PHA will extend the 
voucher. Unless the initial PHA is willing to extend its voucher under 
these circumstances, the receiving PHA may not issue the family a 
voucher.
    6. Administrative fee (Sec.  982.355(e)(3)). HUD revises Sec.  
982.355(e)(3) to clarify that if the ongoing administrative fees for 
the program have been prorated due to insufficient administrative fee 
funding, the administrative fee that the receiving PHA may bill the 
initial PHA is also subject to the same proration.
    7. Mandatory absorption of portability vouchers (Sec.  
982.355(d)(2)). HUD removes the mandatory voucher absorption 
requirement and instead states that if HUD should choose to require 
mandatory absorption, HUD must publish a notice in the Federal Register 
and provide PHAs or affected PHAs (if not applicable to all PHAs) with 
the opportunity for public comment under Sec.  982.355(d)(2)).
    8. Family briefings (Sec.  982.301(a)(2), (a)(3), (b)(1), (b)(4), 
and (b)(9)). HUD revises Sec.  982.301(a)(2), (a)(3), (b)(4), and 
(b)(9) to require briefings for all families with a HCV on the benefits 
of living in low-poverty census tracts.
    9. Providing list of landlords to moving families (Sec.  
982.301(b)(11)). HUD revises Sec.  982.301(b)(11) to replace the 
current reference to ``other parties known to the PHA'' for ``other 
resources (such as newspapers, organizations, and online search tools) 
known to the PHA'' that may assist the family in locating a unit, and 
to provide that the list of landlords or other resources covers areas 
outside of poverty or minority concentration.
    10. Allow a family to choose the receiving PHA (Sec.  982.355(b)). 
HUD revises Sec.  982.355(b) to allow a family to choose the receiving 
PHA to administer its voucher, if there is more than one PHA for the 
jurisdiction where the family seeks to lease a unit.
    11. Portability and Project-Based Vouchers (PBV) (Sec.  982.355). 
HUD did not adopt the change to Sec.  982.355(g) in the proposed rule, 
which stated that the provisions on portability do not apply to the PBV 
program. HUD is concerned that the provision as proposed could be 
misinterpreted to preclude any potential touchpoints between the two 
regulations. To address such issues, HUD plans to issue separate 
guidance on this subject.
    12. Other technical changes. In addition to the changes discussed 
above, HUD makes additional technical changes in this final rule. HUD 
revises Sec.  982.355(d)(1), which addresses HCV absorption by the 
receiving PHA and the availability of funding under the consolidated 
ACC for the receiving PHA's HCV program. HUD revises this section to 
remove the reference to the effective date of the Housing Assistance 
Payment (HAP) contract as the date that the receiving PHA must know if 
it has funding to absorb the voucher. Since the receiving PHA may 
choose to subsequently end a billing arrangement and absorb the family 
after the effective date of the HAP contract, the reference was 
confusing. The change clarifies that if the receiving PHA wishes to 
absorb the family into the receiving PHA program, the receiving PHA 
must have funding available under its consolidated ACC to do so.
    HUD makes technical revisions to Sec. Sec.  982.301(b)(1), 
982.554(c)(4), and 982.637(c)(1) to conform with the policy changes 
implemented elsewhere in this final rule. Finally, HUD revises 
Sec. Sec.  982.403(c), 982.551(f), and 982.641(b)(11) to correct an 
incorrect citation.

[[Page 50566]]

IV. Discussion of Public Comments Received on March 28, 2012, Proposed 
Rule

    The comment period for the proposed rule closed May 29, 2012. HUD 
received 52 comments on this proposed rule. The commenters included 
PHAs, organizations representing the public housing industry, tenant 
advocacy groups, State and local government agencies, and other 
interested members of the public.
    The majority of comments were from PHAs and public housing 
representative organizations. The PHAs that commented varied in size 
and geography. In general, the comments from PHAs were mixed. There 
were several proposals that PHAs supported (e.g., allowing an extension 
beyond 30 days for porting vouchers, and actively providing a list of 
landlords) and others to which PHAs expressed opposition (e.g., 
restricting receiving PHAs from rescreening the porting family). 
Advocacy group commenters opposed the proposal regarding rescreening of 
porting families by the receiving PHA and expressed concern about the 
civil rights implications of such proposals. Specific issues raised by 
commenters and HUD's responses are as follows:
    Comment: Concerns that the rule will increase regulatory burden and 
reduce local PHA discretion. Many commenters, while supportive of 
portability and HUD's goals to streamline and reduce administrative 
burdens, expressed concerns that the proposed regulatory changes did 
not sufficiently meet these goals. The commenters wrote that, rather 
than streamlining portability administration, the proposed rule would 
place additional requirements on PHAs (such as notifying the HUD field 
office before denying moves for insufficient funding, extending the 
term of the voucher for at least 30 days beyond the initial 
termination, requiring mandatory absorptions, and capping 
administrative fees). The commenters wrote that these policies would 
add to the burden and costs of administering vouchers, and suggested 
that HUD consider including the proposed new regulatory requirements in 
HUD's upcoming voucher administrative fee study to determine their real 
cost on PHAs and families. The commenters also stated that many of the 
new requirements would reduce local PHA discretion and flexibility.
    HUD Reponses: HUD understands that some policies may increase 
burden for some PHAs. However, HUD disagrees that other policies in 
this rule, such as capping administrative fees, will increase 
administrative burden. HUD further believes that the added clarity to 
the portability process afforded by this final rule will improve the 
portability process and reduce the burden on families and PHAs. To 
address such concerns, each of these four issues is specifically 
addressed below. With respect to HUD's study on voucher administrative 
fees, the study is complete and, because of the time frame, took into 
consideration costs associated with portability, before this 
rulemaking.
    Comment: Mandatory voucher suspension (Sec.  982.4 and Sec.  
982.303). Several commenters supported HUD's proposed change to the 
definition of ``suspension.'' The commenters wrote that the proposed 
language would increase the likelihood that families will successfully 
move during their voucher term. Other commenters, however, expressed 
concerns about the change, writing that the proposed revision would 
eliminate local discretion and increase administrative complexities and 
costs. The commenters wrote that the proposed change would require PHAs 
to monitor the term of the suspension and to notify families of that 
term and its subsequent expiration. The commenters also wrote that the 
mandatory suspension could result in two PHAs administering the same 
voucher, with the voucher remaining outstanding indefinitely and 
limiting the ability of the PHA to accurately report, budget, and 
forecast available voucher funding.
    HUD Response: The proposed rule provided that the suspension term 
starts when the family submits a request for tenancy approval and ends 
when the PHA approves or denies such request. While HUD understands how 
voucher suspensions may impact a PHA's processes, HUD believes the 
benefit to the family outweighs the possible increase in administrative 
burden placed on the PHA. Based on the length of time an inspection 
takes to be completed, and the possibility that the voucher could 
expire if it were not suspended, families may be harmed by such delays 
due to no fault of their own. Furthermore, PHAs should be actively 
monitoring and managing their process for approving the assisted 
tenancy so the mandatory suspension rule should not significantly 
affect a PHAs ability to report, budget, and forecast available 
funding.
    As noted earlier, HUD revised the proposed language on mandatory 
voucher suspensions to clarify that the suspension lasts until the 
family is notified in writing by the PHA whether the request for PHA-
approval of the tenancy has been approved or denied. Specifying that 
the family must be notified before the voucher suspension ends provides 
clarity and avoids potential disputes between families and PHAs. See 
Sec.  Sec.  982.4 and 982.303(c).
    Comment: Notification requirement before denying moves for 
insufficient funding (Sec.  982.354). Several commenters expressed 
support for this provision, but suggested that HUD specify the time 
period in which a PHA must submit notice to HUD, as well as the date by 
which HUD will respond to the PHA's written notice. Other commenters 
expressed opposition to the requirement. They said that the receiving 
PHA is already required to notify the initial PHA whether the receiving 
PHA will bill the initial PHA for the family, or will absorb the 
voucher, and such requirement results in additional delays for the 
family.
    HUD Response: Notification to the local HUD office when a PHA is 
denying moves due to insufficient funding is not a new requirement. 
Notice PIH 2012-42 (HA) \2\ provides for this notification requirement, 
and the inclusion of this provision in the proposed rule was intended 
to codify it in regulation. HUD understands that requiring the PHA to 
notify the local HUD office adds to the administrative process. 
However, this requirement is important to HUD in carrying out its 
oversight and monitoring function. Through the notification 
requirement, HUD can better ensure that participants are not 
unnecessarily prohibited from moving under portability or within the 
PHA jurisdiction.
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    \2\ See http://portal.hud.gov/hudportal/documents/huddoc?id=pih2012-42.pdf.
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    HUD agrees that more specificity is needed with respect to the time 
frames associated with this requirement. The final rule provides that a 
PHA must notify HUD in writing within 10 business days of the date on 
which the PHA determines it is necessary to deny moves based on 
insufficient funding. If HUD determines that the PHA lacks the grounds 
to deny moves due to insufficient funding, the PHA must immediately 
inform any affected family and immediately process the family's request 
to move.
    Comment: Require HUD approval to deny incoming families and other 
portability processing procedures (Sec.  982.355). Several commenters 
expressed support for the requirement that a PHA must have written 
approval from HUD before refusing any incoming families. The commenters 
also suggested that HUD should clarify the procedures that PHAs must 
use when

[[Page 50567]]

allowing portability of special purpose vouchers, referred to in this 
preamble as SPVs (e.g., Non-Elderly Disabled (NED), Veterans Affairs 
Supportive Housing (VASH), Family Unification Program (FUP), and 5-Year 
Mainstream). Commenters suggested that HUD specify limited 
circumstances in which a PHA may not be required to accept incoming 
families. Other commenters expressed concern that prohibiting the 
reversal of a decision to absorb vouchers will keep PHAs from deciding 
to absorb vouchers, thus increasing the amount of portability billing.
    HUD Response: HUD appreciates these comments and has made some 
clarifying changes in the final rule with respect to SPVs, in Sec.  
982.355(g). The proposed rule included an example of a circumstance 
where a PHA may be allowed to deny an incoming family--a PHA in a 
declared disaster area. However, HUD cannot predict all limited 
circumstances that would warrant a denial of incoming families and 
instead prefers to handle such requests on a case-by-case basis.
    In order to specify the procedures related to SPVs, the proposed 
rule set out requirements relating to portability moves of SPVs that 
were applicable to all SPVs; however, due to the intricacies of each 
SPV program, HUD determined that specific portability procedures for 
each SPV are better suited for guidance and not regulation.
    Finally, some commenters claimed that HUD's policy to prohibit PHAs 
from reversing a decision to absorb a voucher may cause some PHAs to be 
more inclined to not absorb a voucher. HUD was unable to find evidence 
that the requirement will have such an effect, or that the impact on 
portability billings will be significant. Moreover, HUD determined that 
it is important to eliminate the potential negative effect such a 
reversal could have on the family.
    Comment: Portability processing procedures and allowing email 
communications between initial and receiving PHA (Sec.  982.355). 
Several commenters expressed support for the requirement that PHAs 
communicate with other PHAs through email or other confirmed delivery 
methods. Commenters wrote that email is simpler than other methods, and 
its use has already been implemented by many PHAs. Some commenters 
wrote that some PHAs do not have email contacts for other PHAs, so it 
would be helpful for HUD to add an email field to the HUD-52665 form. 
Other commenters, however, had concerns about relying on email, and 
suggested that email supplement, rather than replace, other forms of 
communication.
    HUD Response: While HUD supports email as the preferred method of 
communication, the final rule allows for the use of other methods of 
communication that have delivery confirmation. HUD also made a 
technical change to Sec.  982.355(c)(4) to correct the reference to the 
``receiving'' and not the ``initial PHA.''
    Comment: Voucher term of receiving PHA voucher (Sec.  982.355). 
Several commenters expressed support for the requirement that PHAs 
provide an additional 30 days on the voucher term to accommodate the 
time a family needs to attend a briefing session and locate a new unit. 
Some commenters, however, suggested that the extension be provided at 
the agency's discretion and not be mandatory. Another commenter 
encouraged HUD to add language to the regulation making it clear that 
receiving PHAs may choose to issue vouchers with more than the 
additional 30 days of search time. Other commenters objected to 
extending the voucher for 30 days. These commenters wrote that a 
blanket, national requirement that voucher terms last an additional 30 
days would reduce the number of unit months leased nationally.
    HUD Response: While requiring a receiving PHA to add an additional 
30 calendar days to the term of the voucher may increase a PHA's 
administrative burden, providing an additional 30 calendar days to the 
receiving PHA's voucher term accommodates the additional time that the 
portability process requires, and does not count against the family's 
search time.
    HUD agrees that the language in the proposed rule was too 
restrictive and has changed the language in the final rule to 
accommodate extensions of the term of the receiving PHA voucher beyond 
30 calendar days if the receiving PHA chooses to allow such extensions. 
See Sec.  982.355(c)(13).
    Comment: Capping administrative fees (Sec.  982.355). Several 
commenters supported capping the amount paid to the receiving PHA for 
administrative fees at 100 percent of the receiving PHA's administrate 
fee rate. Other commenters were opposed to this proposal stating that 
it would be unfair for a receiving PHA to receive 100 percent of the 
fee since they are not doing 100 percent of the work.
    Several commenters requested clarification of the administrative 
fee structure. The commenters wrote the proposed rule does not address 
the proration issue and that it is unclear if the cap is based on the 
receiving PHAs' published fee or prorated fee. These commenters stated 
that they were also unclear which PHA is responsible for determining 
fees.
    Other commenters suggested alternatives or changes to the proposed 
administrative fee requirements. Commenters suggested that HUD consider 
prohibiting PHAs from prorating administrative fees for their outgoing 
portability vouchers and simply use the 80 percent of the published 
administrative fee. Other commenters suggested a flat administrative 
fee to be paid to the receiving PHA. Commenters also suggested that HUD 
consider reinstatement of the ``hard to house'' fee for SPVs.
    HUD Response: Under the proposed rule, the initial PHA must 
reimburse the receiving PHA for the lesser of 80 percent of the initial 
PHA ongoing administrative fee or 100 percent of the receiving PHA's 
ongoing administrative fee for each program unit. Under this structure, 
the initial PHA always gets to keep a percentage of the administrative 
fee of the voucher, and the receiving PHA does not bill for an amount 
that is higher than the receiving PHA's administrative fee. Prior to 
this final rule provision, if the receiving PHA's prorated 
administrative fee was $45 and the initial PHA's prorated 
administrative fee was $60, for example, the receiving PHA would 
receive $48 (or 80 percent of $60) for the voucher, which is more than 
the $45 it would get for administering its own vouchers. In the same 
scenario under this final rule, the receiving PHA would bill for $45 
for its share of the administrative fee and the initial PHA would keep 
$15 of the prorated monthly on-going admin fee for that unit under 
lease.
    HUD also revises Sec.  982.355(e)(3) to mirror, where appropriate, 
the language concerning ongoing administrative fees under current 
voucher regulations at Sec.  982.152(b)(1). The paragraph is also 
revised to clarify that the receiving PHA is not precluded from billing 
an initial PHA for more than 100 percent of its own administrative fee 
if both PHAs agree to a different amount of reimbursement that is more 
than 100 percent of the receiving PHA's administrative fees. HUD agrees 
with commenters that, as stated in the proposed rule, HUD does not 
address whether the administrative fee is based on the initial PHA's 
published or prorated fee. Therefore, HUD is adding language to clarify 
that, if administrative fees are prorated for the HCV program, the 
proration will apply to the amount of the administrative fee for which 
the receiving PHA may bill under this section (i.e., the receiving PHA 
may bill

[[Page 50568]]

for the lesser of 80 percent of the initial PHA's prorated ongoing 
administrative fee or 100 percent of the receiving PHA's prorated 
ongoing administrative fee).
    Comment: Mandatory absorption of portability vouchers (Sec.  
982.355(d)). Several commenters expressed support to require PHAs to 
absorb porting vouchers. However, several of the commenters requested 
clarification on the following areas: (1) The time period HUD will use 
to determine a PHA is below the 95 percent threshold; (2) how much 
notice a PHA will be provided before being required to absorb vouchers; 
(3) what data HUD will use to measure utilization of vouchers and 
budget authority; and (4) whether the receiving PHA will be prohibited 
from issuing vouchers to new families in their jurisdiction without 
having first absorbed all billed portability families.
    Several other commenters expressed opposition to the proposal, 
stating that the proposed provision fails to take local circumstances 
into consideration. Some commenters expressed concern about possible 
negative consequences for small PHAs. They wrote that mandatory 
absorption may hurt small PHAs if they have a small allocation of 
vouchers or some vouchers are canceled or terminated. Therefore, a 
small PHA may instead prefer to draw from its waiting list, instead of 
absorbing porting vouchers. Other commenters wrote that imposing 
requirements on some PHAs to absorb portable vouchers without making 
absorption the standard solution is problematic. Finally, commenters 
also expressed concern that the burden would fall disproportionately on 
SPVs.
    HUD Response: In this final rule, HUD removes the mandatory 
absorption requirement from the proposed rule. In considering the 
mandatory absorption requirement, HUD weighed various factors such as: 
(1) Monitoring leasing rates to assess when the requirement should be 
put in place and when it should be removed; (2) the impact on the 
utilization rate of initial PHAs (when a receiving PHA absorbs a port-
in voucher for which it was previously billing, it frees-up budget 
authority and reduces the number of unit months leased for the initial 
PHA, and the initial PHA may not have sufficient time to utilize its 
increased budget authority or increase its reduced unit months leased); 
(3) determining the timing of such assessments; (4) the impact on the 
receiving PHA's waiting list as absorption would reduce the number of 
families on the waiting list that could be served; (5) the impact such 
a requirement could have on renewal funding; and (6) the impact 
requiring the use of Net Restricted Position (NRP) would have on PHAs.
    After consideration of such factors, HUD decided not to adopt the 
mandatory absorption requirement as proposed. This final rule continues 
to afford HUD the ability to mandate absorptions on a case-by-case 
basis. Should HUD determine to impose such a requirement in the future 
for all PHAs that: (1) Are utilizing less than 95 percent of their 
available budget authority, and (2) have a leasing rate of less than 95 
percent, it shall do so through a notice in the Federal Register 
stating such proposed policy and procedures, with an opportunity for 
public comment for a period of no less than 60 calendar days. After 
consideration of public comments, HUD will publish a final notice in 
the Federal Register advising PHAs and the public of HUD's final 
determination on mandatory absorption.

V. Comments on Specific Issues Raised by HUD

    Comment: Transfer of ACC funds between initial and receiving PHA. 
HUD invited comments on how to redesign portability in a way that would 
eliminate or minimize the administrative burdens associated with 
portability billings. In the past, some PHAs suggested that HUD 
transfer funds from the initial PHA's consolidated ACC to the receiving 
PHA's consolidated ACC, in order to transfer the money without direct 
PHA involvement. Others suggested a sharing of costs by the initial and 
receiving PHA, whereby the initial PHA would pay to the receiving PHA 
no more than the family's subsidy at the initial PHA location.
    Of those commenters that responded to the request in the proposed 
rule, a few supported a transfer of funds between the initial and 
receiving PHAs for portability vouchers, while others were against it. 
Some commenters wrote that tracking transfers of this type would be an 
added administrative burden on HUD and PHAs. Commenters noted that PHAs 
with a high percentage of outgoing portability vouchers would be 
disproportionately affected by such transfers. A high volume of voucher 
transfers may jeopardize these PHAs' operations, and make the PHAs' 
budgets more unstable and less predictable. Commenters favoring the 
transfers of ACC funds for portability wrote that such transfers would 
result in numerous efficiencies by eliminating billing arrangements 
among PHAs.
    As for sharing the costs between PHAs, a commenter wrote that it is 
unfair for the initial PHA to pay no more than the family's subsidy to 
the receiving PHA because it does not recognize the real cost for the 
receiving PHA for administering the voucher, but the commenter 
suggested that an administrative fee should still be paid.
    HUD Response: HUD agrees with the commenters that expressed 
concerns that transfers of ACC funds under portability may have 
potential negative effect on PHAs, especially those with a high 
percentage of outgoing portability vouchers. Also the administrative 
burden of such transfers on HUD and PHAs outweighs eliminating or 
minimizing portability billings. With respect to limiting the amount 
the initial PHA pays for HAP under the billing option to no more than 
it would pay for that voucher if leasing in their jurisdiction, and 
having the receiving PHA share the cost, HUD concluded that such 
sharing of the costs would be administratively burdensome on PHAs, 
disproportionately affect PHAs with a high percentage of incoming 
portability vouchers, needlessly complicate the portability process, 
and would not reduce portability billings. Therefore, HUD did not 
incorporate this change into this final rule.
    Comment: Rescreening of families using portability. HUD solicited 
comments on how to minimize hardship on families when the receiving 
PHA's screening criteria is more stringent than the initial PHA's 
criteria. Several commenters supported a proposed restriction on 
rescreening of porting families. These commenters wrote that 
rescreening presents a significant barrier for voucher families trying 
to relocate to areas that offer greater opportunity. The commenters 
wrote that, for true mobility, rescreening must not be allowed.
    Other commenters, all PHAs, supported rescreening by the receiving 
PHA. A commenter wrote that PHAs cannot be expected to operate using 
multiple screening standards. A commenter also wrote that it is unfair 
to families that are ineligible under the receiving PHA's criteria, 
while those from another jurisdiction are allowed to participate in the 
HCV program.
    HUD Response: HUD agrees that receiving PHAs should be allowed to 
apply their own screening standards consistently among families in 
their program and for families moving into their jurisdiction under 
portability. However, it is important that moving families be informed 
that they are subject to screening based on the receiving PHA's 
criteria, and that the receiving PHA's screening criteria may be 
different than that of the initial PHA. Any potential hardship on the 
family may be minimized, to some extent, if

[[Page 50569]]

families are aware ahead of time if the receiving PHA will be 
rescreening incoming families. This information should be incorporated 
into the briefing packet as discussed below.
    Comment: Requirement and content of HCV family briefings. HUD 
solicited comments on whether the briefing should be revised to 
highlight the factors and trade-offs a family should consider when 
leasing a unit with voucher assistance. These factors include, but are 
not limited to: employment opportunities; safety, health and 
environmental amenities; public transportation; the quality of schools; 
access to social services; the quality of housing; and proximity to 
family and friends. Comments were also solicited on whether information 
on the benefits of living in low-poverty census tracts should be 
provided to all families selected to participate in the HCV program, 
and not just those families living in high-poverty census tracts, as is 
provided in the codified regulation. The majority of commenters 
expressed opposition to expanding the briefing requirements, stating 
that the existing briefing requirements are already complex and any 
expansion would increase administrative burden. Several commenters 
wrote that the requirements of the family briefings are already covered 
under the Section 8 Management Assessment Program indicator on 
expanding housing opportunities and deconcentration.
    HUD Response: HUD has determined that providing information about 
the factors the family should consider when determining where to lease 
a unit with voucher assistance will only be required as part of the 
briefing should HUD make such information available to PHAs for 
distribution. If required, PHAs are to provide such information as part 
of the oral briefing and the information packet provided to families 
selected to participate in the program. HUD therefore revises the 
regulation at Sec.  982.301 accordingly.
    HUD has also determined that an explanation of the benefits of 
living in low-poverty census tracts should be provided to all families, 
not just those families living in high-poverty census tracts. This 
explanation of benefits should also be included in the information 
packet provided to families selected to participate in the HCV program.
    In making this determination HUD considered the effect on both 
families and PHAs. While families who already live in low-poverty 
census tracts may be aware of the benefits of living in such areas, not 
all families may have such awareness, and HUD does not see any 
disadvantages in providing all families such information. While there 
may be some administrative cost to PHAs in providing such information 
to all families selected to participate in the program, this change 
will also provide some administrative relief for PHAs. With the change, 
PHAs will not have to determine which families live in high-poverty 
census tracts to determine who needs the additional briefing. In this 
regard, a commenter wrote that most PHAs already provide the same 
information regardless of where the family lives.
    HUD determined that information on how portability works should be 
provided during the briefing and as part of the information packet to 
every family, not just those who are eligible to move under 
portability. Accordingly, HUD revised the regulation at Sec.  
982.301(a)(2) and Sec.  982.301(b)(4). HUD is also revising some of the 
required content of the family briefings related to portability in this 
final rule. In addition to an explanation of how portability works, the 
briefing should also include information on how portability may affect 
the family's assistance through rescreening, changes in subsidy 
standards and payment standards, and any other elements of the 
portability process that may affect the family's assistance.
    Comment: Providing list of landlords. HUD solicited comments on 
whether to continue requiring PHAs to provide families with a list of 
landlords or other parties known to the PHA who may be willing to lease 
a unit to the family, and whether additional information on areas of 
opportunity or neighborhoods would be beneficial for families. The 
majority of commenters responding to this solicitation of comments were 
PHAs that supported the provision of a list of landlords. These 
commenters stated that such lists may be extremely helpful to voucher 
participants who are seeking housing and may not be aware of local 
housing opportunities. Some commenters suggested that providing the 
list to voucher participants should be voluntary. A minority of 
commenters expressed concern that such lists may result in steering 
families to high-poverty and racially concentrated areas, and that PHAs 
should be required to assess such lists to ensure they do not steer 
such families.
    HUD Response: HUD agrees that such written references could be 
essential to a successful housing search, particularly to families who 
are moving under portability and may not be familiar with the new 
jurisdiction. HUD also agrees that PHAs that choose to maintain such 
lists should be mindful of the need to provide housing opportunities to 
families in nonracially and nonpoverty concentrated areas. At this 
final rule stage, HUD retains the requirement to provide a list of 
landlords known to the PHA that may be willing to lease a unit to the 
family. Accordingly, HUD modifies Sec.  982.301(b)(11), to replace the 
current reference to ``other parties known to the PHA'' for ``other 
resources (such as newspapers, organizations, and online search tools) 
known to the PHA'' that may assist the family in locating a unit, and 
to provide that the list of landlords or other resources covers areas 
outside of poverty or minority concentration.
    Comment: Allow a family to select the receiving PHA. HUD solicited 
comments on whether a family should have the option to select the 
receiving PHA when more than one PHA has jurisdiction over the area to 
which the family wishes to move. Under the codified HCV program 
regulations, the initial PHA selects the receiving PHA for the porting 
family. The majority of commenters responding to this solicitation 
supported HUD's proposal to allow families to select the receiving PHA. 
Other commenters wrote that it would be burdensome for participants to 
have to review sometimes dozens of PHAs' information. These commenters 
suggested that HUD should maintain a national register of HCV program 
contacts for voucher participants, if the policy were to be 
implemented.
    HUD Response: HUD determined that families should be given the 
option to select the receiving PHA when there is more than one PHA that 
has jurisdiction over the area where the family wishes to lease a unit. 
As stated in the proposed rule, giving such choice to families allows 
families to select receiving PHAs that best meet their needs. While HUD 
understands that in certain cases it may be burdensome for the family 
to select a receiving PHA, this change does not preclude a family from 
seeking assistance from the initial PHA in selecting the receiving PHA 
if the family so chooses. The final rule, therefore, provides that it 
will be the responsibility of the initial PHA to inform the family of 
the PHAs that serve the area and provide the family with the contact 
information for those PHAs. The initial PHA is not required to provide 
information of the options or services that each PHA may offer.
    Accordingly, HUD is revising Sec.  982.355(b) to clarify that the 
family has the option to select the receiving PHA.

[[Page 50570]]

VI. Other Public Comments

    Comment: Limit liability for families to move with portability. 
Several commenters suggested that HUD adopt qualifying criteria (such 
as families moving for educational or employment opportunities, or 
families in flight of domestic violence) for moves under portability to 
ensure that families have a good reason to move. Other commenters 
suggested limiting the number of times a family may move to one move 
per year. Another commenter suggested that HUD limit the percentage of 
portability moves a receiving PHA must handle at a time.
    HUD Response: There are provisions already in place that allow PHAs 
to manage family moves. For example, current regulation at Sec.  
982.314(c) provides that the PHA may establish policies that prohibit 
any move during the initial lease term, and prohibits more than one 
move by the family during any 1-year period, either within the PHA's 
jurisdiction or through portability. Moreover, receiving PHAs may 
always choose to absorb into its voucher program a participant who has 
moved under portability, provided that the receiving PHA has funding 
available to do so.
    Comment: PHAs should be required to remind families they may move 
with portability. Some commenters suggested that PHAs should be 
required to actively remind families that they may move using the HCV 
portability process. Specifically, the commenters suggested that PHAs 
should be required to remind families at their annual recertification 
that they may move to other jurisdictions with continued voucher 
assistance.
    HUD Response: HUD's regulation at Sec.  982.301(a) and (b) provides 
for a family briefing and for an information packet to be given to the 
family when the family first participates in the voucher program. As 
provided in this final rule, every family must receive a briefing, and 
during such briefing, must be given information on how portability 
works. HUD finds this initial briefing to be sufficient and declines to 
require PHAs to remind families about portability at other times.
    Comment: Provide additional support for victims of domestic 
violence. Commenters wrote that victims of domestic violence need 
additional support, beyond briefings. The commenters were supportive of 
the effectiveness of transitional housing and briefing residents on 
such services.
    HUD Response: PHAs are required to offer victims of domestic 
violence, dating violence, sexual assault, and stalking the protections 
afforded under the Violence Against Women Act (VAWA) as reflected in 
HUD's regulations (24 CFR part 5, subpart L). These requirements 
include providing the victim with a notification of his or her rights 
under VAWA (24 CFR 5.2005). PHAs have the option and are encouraged to 
provide the victim with contact information for supportive services for 
victims of abuse. At a minimum, PHAs are encouraged to provide the 
number for the National Domestic Violence Hotline (1-800-799-SAFE 
(7233)) or the National Sexual Assault Hotline (1-800-656-HOPE (4673)) 
to victims. Victims who call these numbers may be able to locate 
supportive services in their area.
    Comment: Exempt small PHAs from portability requirements. Several 
commenters wrote that portability should not apply to participants in 
small PHAs' programs. The commenters pointed out that a small PHA often 
has to pay a significantly higher cost for vouchers that port to 
higher-cost areas than the small PHA would pay for vouchers in their 
own jurisdiction. This higher cost limits the small PHA's ability to 
lease its own vouchers and serve families in its jurisdiction.
    HUD Response: Since portability is authorized by statute, small 
PHAs cannot be exempted from allowing eligible families to move. 
Furthermore, HUD believes that portability is a key feature of the HCV 
program and families should not be denied the opportunity to move to 
other jurisdictions based on the size of the administering PHA. With 
regard to the cost impact, moves to higher-cost areas can impact the 
PHAs' ability to serve families from its waiting list. However, it is 
noted that these higher costs are taken into consideration in 
determining the PHA's renewal eligibility under the HCV program. 
Furthermore, the appropriations act typically provides that the higher 
costs of portability are an eligible category for set-aside funding 
that is used to adjust a PHA's renewal funding. Finally, as discussed 
in the preamble of this final rule, HUD has strived to clarify the 
portability process and thus reduce burden for PHAs.
    Comment: Concerns about billing for portability vouchers. Several 
commenters wrote that the rule encourages billing the initial PHA, but 
should instead encourage absorption of vouchers by the receiving PHA. 
The commenters wrote that if a receiving PHA can receive 100 percent of 
its fee for a billed incoming voucher and only 80 percent of its fee 
for its own voucher, a PHA would have a strong incentive to bill rather 
than absorb the voucher. Several commenters also wrote that delays in 
payment by the initial PHA to a receiving PHA are a burden. They 
suggested that HUD should impose a firm deadline by which the initial 
PHA must pay its bills or establish other sanctions or tools for a PHA 
to use for chronic late-payers. Commenters also suggested that HUD 
develop a program to be used by all PHAs in tracking portability 
payments.
    HUD Response: Prior to this final rule, a receiving PHA would be 
paid 80 percent of the initial PHA's administrative fees. The March 28, 
2012, rule proposed and this final rule revises the administrative fee 
amount that can be billed to the initial PHA to the lesser of the 
amount currently provided in the codified regulation (80 percent of the 
initial PHA's ongoing administrative fee or 100 percent of the 
receiving PHA's administrative fee). Under this rule, a receiving PHA 
cannot bill for more than the administrative fee it would otherwise 
receive for its own program, regardless of whether the initial PHA's 
administrative fee is higher than the receiving PHA's administrative 
fee. Prorations applicable to an initial PHA's administrative fees due 
to an appropriations act that does not fully fund administrative-fee 
eligibility will apply to those amounts. Therefore, the receiving PHA 
cannot bill and receive more in administrative fees for a portability 
voucher than it would receive for its own vouchers, unless both PHAs 
have agreed on a different amount of reimbursement.
    As noted earlier in this preamble, HUD already imposes a firm 
deadline on portability billings and provides mechanisms that the 
receiving PHA may use in cases where the initial PHA fails to comply 
with the initial and subsequent billing due dates. (See Section 8 of 
Notice PIH 2012-42, Housing Choice Voucher Family Moves with Continued 
Assistance.)
    Comment: HUD should present data to define portability success for 
voucher-assisted households. Commenters suggested that the use of data 
to define portability success would be beneficial for stakeholders to 
more fully comment on the proposed rule. A commenter suggested that 
American Community Survey data could be used, in conjunction with HUD 
data, to provide an overlay of assisted and unassisted households to 
determine at each income quintile, how many households move and how 
often they move within their existing city and county, outside of their 
county, or outside of their State. The commenter further wrote that 
such an analysis may help show that a high percentage of mobility moves 
results in

[[Page 50571]]

voucher-assisted households relocating to neighborhoods of opportunity 
or deconcentrated neighborhoods.
    HUD Response: HUD believes that portability success can be defined 
in a multitude of ways and is unclear how the analysis described by the 
commenter would successfully indicate the effects of portability on 
families. While HUD appreciates the suggestion for additional research 
into portability success, the intent of this final rule is to simplify 
the administration of portability issues within the voucher program. 
HUD believes this analysis is not necessary for successful 
implementation of the proposed reforms.

VII. 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. This rule was determined to be a ``significant regulatory 
action'' as defined in section 3(f) of Executive Order 12866 (although 
not an economically significant regulatory action, as provided under 
section 3(f)(1) of the Executive order).
    This final rule amends HUD's regulations governing portability in 
the HCV program. These regulatory changes streamline the portability 
process and enable initial and receiving PHAs to better serve families 
and expand housing opportunities. HUD's analysis determined that these 
regulatory amendments will not have an economic effect of greater than 
$100 million but would yield certain nontangible benefits. The findings 
of HUD's analysis are summarized below, and addressed in more detail in 
the accompanying regulatory analysis:
    1. Benefits of final rule. The HCV portability policy helps ensure 
that families have the opportunity to relocate in order to pursue 
increased or new employment opportunities or to gain access to 
preferred schools for their children. An efficient portability process 
also helps ensure that victims of domestic violence and stalking have 
access to the resources necessary to relocate to a safe, stable home 
away from an abuser.
    Moves to areas with relatively low concentrations of neighborhood 
poverty have important benefits to housing choice voucher families. 
Research from HUD's Moving to Opportunity (MTO) demonstration \3\ 
showed that moving from housing developments in high-poverty 
neighborhoods to private housing in lower-poverty neighborhoods had 
strong positive effects on girls' and adults' mental health, as well as 
on adults' physical health. Under the Gautreaux desegregation program 
in Chicago,\4\ children and adults who moved with HCV assistance to 
middle-income suburbs appear to have experienced educational gains 
compared to families that remained in urban or higher-poverty 
neighborhoods. It is expected that the rule will remove potential 
barriers to mobility and will increase the number of families that may 
move to areas of opportunities. Some research indicates that families 
often use their vouchers to move to better opportunities, including 
employment opportunities.
---------------------------------------------------------------------------

    \3\ See: http://www.huduser.org/publications/pdf/MTOFHD_fullreport_v2.pdf.
    \4\ The Gatreaux desegregation program is a housing 
desegregation program initiated by court order. In a consent decree, 
the court ordered the Chicago Housing Authority to provide 
scattered-site housing for public housing residents residing in 
poverty concentrated areas.
---------------------------------------------------------------------------

    2. Costs of rule. HUD expects that portability billing arrangements 
in this rule will place only a slightly additional administrative 
burden on PHAs. Portability may add to the cost of the HCV program 
through higher HAP costs, but the fiscal year (FY) 2015 appropriations 
act provides a set-aside of up to $120 million from HCV renewal funds 
to allow HUD to provide PHAs with additional renewal funding under 
certain circumstances. One of the eligible categories permitted under 
the appropriations act is for increased costs resulting from unforeseen 
circumstances and portability. HUD is in the process of receiving the 
FY 2015 set-aside applications; however, an average of $23 million has 
been found eligible in the past for PHAs for portability adjustments.
    4. Administrative Fee. Prior to this rule, for a voucher in a 
portability billing arrangement between the initial PHA and receiving 
PHA, the initial PHA had to pay the receiving PHA 80 percent of its 
administrative fee for each month that the family received assistance 
at the receiving PHA, unless the PHAs mutually agreed to a different 
billing amount. Removal of potential barriers to mobility is expected 
to increase the number of portability vouchers and, thus, increase the 
amount of administrative fee transfers between PHAs.
    The final rule would set the maximum amount that the initial PHA is 
required to pay at 100 percent of the receiving PHA's administrative 
fee rate. In other words, the initial PHA would reimburse the receiving 
PHA for the lesser of: (1) 80 percent of the initial PHA's ongoing fee 
or (2) the full amount of the receiving PHA's administrative fee. This 
change eliminates the incentive for a receiving PHA with a lower 
administrative fee to bill an initial PHA with a higher administrative 
fee in order to receive a higher administrative fee than it would 
normally earn from HUD. This action should reduce portability billings 
for those PHAs for whom 80 percent of the initial PHA's fee is more 
than 100 percent of their own administrative fee. For example, assume 
that a receiving PHA's administrative fee is $60. Prior to this rule, 
if a family moves to the receiving PHA's jurisdiction from an initial 
PHA that receives $100 in administrative fees for a housing voucher, 
the receiving PHA may bill the initial PHA for $80, which is $20 more 
than the PHA would earn if it simply absorbed the voucher. Under the 
final rule, the receiving PHA will receive $60 regardless of whether 
the receiving PHA bills the initial PHA or absorbs the family into its 
own program.
    The full economic analysis is available for review at 
www.regulations.gov. The docket file for this rule is available for 
public inspection in the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street 
SW., Room 10276, Washington, DC 20410-0500. Due to security measures at 
the HUD Headquarters building, please schedule an appointment to review 
the docket file 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).

[[Page 50572]]

Information Collection Requirements

    The information collection requirements in the proposed rule were 
submitted to OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520). 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. The information collection requirements of 
this rule was assigned this OMB Control Number 2577-0169.

Unfunded Mandates Reform Act (UMRA)

    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 the private sector. This final rule does not 
impose any federal mandates on any State, local, or tribal government 
or the private sector within the meaning of UMRA.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments and is not required by statute or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This final rule does not have 
federalism implications and would not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive order.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 605(b)) 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. This final rule is 
solely concerned with the portability feature of the voucher program. 
There currently are approximately 739 small PHAs (i.e., PHAs with less 
than 250 public housing units or vouchers) \5\ that will be subject to 
the rule. Since portability is authorized by statute, small PHAs 
administering the HCV program cannot be exempt from allowing eligible 
families to move, and HUD has strived to reduce burden for all PHAs. 
Therefore, while this final rule will impact these PHAs, the impact 
will not be significant. As stated previously in this preamble, through 
the amendments to the HCV regulations provided in this rule, HUD will 
reduce the administrative burden of portability for both PHAs and 
families, reduce portability billing arrangements between PHAs, and 
ensure maximum family choice in locating suitable housing. HUD also 
removed the proposed requirement for mandatory absorption of 
portability vouchers by the receiving PHA that was in the proposed 
rule. Through this final rule, HUD strives to clarify the portability 
process and reduce administrative burden for all PHAs, large or small. 
As explained more fully above in the ``Executive Order 12866 and 
13563'' section of this preamble, the benefits of the regulatory 
changes will largely outweigh the administrative and compliance costs 
to PHAs. Accordingly, this rule will not have a significant economic 
impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \5\ The number of 739 PHAs includes HCV-only PHAs and PHAs with 
combined HCV-public housing portfolios. This number does not include 
public housing-only PHAs, which is the largest category of small 
PHAs but which are not affected by this rule.
---------------------------------------------------------------------------

Environmental Impact

    This rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule 
is categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects in 24 CFR Part 982

    Grant programs-housing and community development, Grant programs-
Indians, Indians, Public housing, Rent subsidies, Reporting and 
recordkeeping requirements.
    Accordingly, HUD amends 24 CFR part 982, as follows:

PART 982--SECTION 8 TENANT-BASED ASSISTANCE: HOUSING CHOICE VOUCHER 
PROGRAM

0
1. The authority citation for 24 CFR part 982 continues to read as 
follows:

    Authority: 42 U.S.C. 1437f and 3535(d).


0
2. In Sec.  982.4, in paragraph (b), revise the definitions of 
``Absorption'' and ``Suspension'' to read as follows:


Sec.  982.4  Definitions.

* * * * *
    (b) * * *
    Absorption. For purposes of subpart H, the point at which a 
receiving PHA starts making assistance payments with funding under its 
consolidated ACC, rather than billing, the initial PHA.
* * * * *
    Suspension. The term on the family's voucher stops from the date 
that the family submits a request for PHA approval of the tenancy, 
until the date the PHA notifies the family in writing whether the 
request has been approved or denied.
* * * * *

0
3. In Sec.  982.54, revise paragraphs (d)(2) and (19) to read as 
follows:


Sec.  982.54  Administrative plan.

* * * * *
    (d) * * *
    (2) Issuing or denying vouchers, including PHA policy governing the 
voucher term and any extensions of the voucher term. If the PHA decides 
to allow extensions of the voucher term, the PHA administrative plan 
must describe how the PHA determines whether to grant extensions, and 
how the PHA determines the length of any extension.
* * * * *
    (19) Restrictions, if any, on the number of moves by a participant 
family (see Sec.  982.354(c));
* * * * *

0
4. In Sec.  982.301, revise paragraphs (a)(2), (a)(3), (b)(1), (b)(4), 
(b)(9), and (b)(11) to read as follows:


Sec.  982.301  Information when family is selected.

    (a) * * *
    (2) An explanation of how portability works. The PHA may not 
discourage the family from choosing to live anywhere in the PHA 
jurisdiction, or outside the PHA jurisdiction under portability 
procedures, unless otherwise expressly authorized by statute, 
regulation, PIH Notice, or court order. The family must be informed of 
how portability may affect the family's assistance through screening, 
subsidy standards, payment standards, and any other elements of the 
portability process which may affect the family's assistance.
    (3) The briefing must also explain the advantages of areas that do 
not have a high concentration of low-income families.
* * * * *

[[Page 50573]]

    (b) * * *
    (1) The term of the voucher, voucher suspensions, and PHA policy on 
any extensions of the term. If the PHA allows extensions, the packet 
must explain how the family can request an extension;
* * * * *
    (4) Where the family may lease a unit and an explanation of how 
portability works, including information on how portability may affect 
the family's assistance through screening, subsidy standards, payment 
standards, and any other elements of the portability process which may 
affect the family's assistance.
* * * * *
    (9) Materials (e.g., brochures) on how to select a unit and any 
additional information on selecting a unit that HUD provides.
* * * * *
    (11) A list of landlords known to the PHA who may be willing to 
lease a unit to the family or other resources (e.g., newspapers, 
organizations, online search tools) known to the PHA that may assist 
the family in locating a unit. PHAs must ensure that the list of 
landlords or other resources covers areas outside of poverty or 
minority concentration.
* * * * *

0
5. In Sec.  982.303, revise paragraph (c) to read as follows:


Sec.  982.303  Term of voucher.

* * * * *
    (c) Suspension of term. The PHA must provide for suspension of the 
initial or any extended term of the voucher from the date that the 
family submits a request for PHA approval of the tenancy until the date 
the PHA notifies the family in writing whether the request has been 
approved or denied.
* * * * *


Sec.  982.314  [Redesignated as Sec.  982.354]

0
6. Redesignate Sec.  982.314 as Sec.  982.354.
0
7. Section 982.353 is amended as follows:
0
a. Remove the word ``or'' from paragraph (c)(1) and in its place add 
the word ``nor'';
0
b. Revise paragraphs (c)(3) and (d)(2);
0
c. Remove paragraph (d)(3); and
0
d. Remove paragraph (e), redesignate paragraph (f) as paragraph (e), 
and revise newly redesignated paragraph (e).
    The revisions read as follows:


Sec.  982.353  Where family can lease a unit with tenant-based 
assistance.

* * * * *
    (c) * * *
    (3) If the initial PHA approves, the family may lease a unit 
outside the PHA jurisdiction under portability procedures.
    (d) * * *
    (2) If a family is a participant in the initial PHA's voucher 
program, income eligibility is not redetermined when the family moves 
to the receiving PHA program under portability procedures.
* * * * *
    (e) Freedom of choice. The PHA may not directly or indirectly 
reduce the family's opportunity to select among available units, except 
as provided in paragraph (a) of this section, or elsewhere in this part 
982 (e.g., prohibition on the use of ineligible housing, housing not 
meeting HQS, or housing for which the rent to owner exceeds a 
reasonable rent). However, the PHA must provide families the 
information required in Sec.  982.301 for both the oral briefing and 
the information packet to ensure that they have the information they 
need to make an informed decision on their housing choice.

0
8. Amend newly designated Sec.  982.354 as follows:
0
a. Revise paragraphs (c)(1) and (2);
0
b. Remove paragraphs (c)(3) and (d)(1);
0
c. Redesignate paragraph (d)(2) as paragraph (d); and
0
d. Revise paragraph (e)(1).
    The revisions read as follows:


Sec.  982.354  Move with continued tenant-based assistance.

* * * * *
    (c) How many moves. (1) A participant family may move with 
continued assistance under the program, either inside the PHA 
jurisdiction, or under the portability procedures (See Sec.  982.353) 
in accordance with the PHA's policies.
    (2) Consistent with applicable civil rights laws and regulations, 
the PHA may establish policies that:
    (i) Prohibit any move by the family during the initial lease term; 
and
    (ii) Prohibit more than one move by the family during any one-year 
period.
* * * * *
    (e) When the PHA may deny permission to move. (1) The PHA may deny 
permission to move if the PHA does not have sufficient funding for 
continued assistance. The PHA must provide written notification to the 
local HUD Office within 10 business days of determining it is necessary 
to deny moves to a higher-cost unit based on insufficient funding.
* * * * *

0
9. Revise Sec.  982.355 to read as follows:


Sec.  982.355  Portability: Administration by initial and receiving 
PHA.

    (a) General. When a family moves under portability (in accordance 
with Sec.  982.353(b)) to an area outside the initial PHA jurisdiction, 
the receiving PHA must administer assistance for the family if a PHA 
with a HCV program has jurisdiction in the area where the unit is 
located.
    (b) Requirement to administer assistance. A receiving PHA cannot 
refuse to assist incoming portable families or direct them to another 
neighboring PHA for assistance. If there is more than one such PHA, the 
initial PHA provides the family with the contact information for the 
receiving PHAs that serve the area, and the family selects the 
receiving PHA. The family must inform the initial PHA which PHA it has 
selected as the receiving PHA. In cases where the family prefers not to 
select the receiving PHA, the initial PHA selects the receiving PHA on 
behalf of the family. HUD may determine in certain instances that a PHA 
is not required to accept incoming portable families, such as a PHA in 
a declared disaster area. However, the PHA must have approval in 
writing from HUD before refusing any incoming portable families.
    (c) Portability procedures. The following portability procedures 
must be followed:
    (1) When the family decides to use the voucher outside of the PHA 
jurisdiction, the family must notify the initial PHA of its desire to 
relocate and must specify the location where it wants to live.
    (2) The initial PHA must determine the family's eligibility to move 
in accordance with Sec. Sec.  982.353 and 982.354.
    (3) Once the receiving PHA is determined in accordance with 
paragraph (b) of this section, the initial PHA must contact the 
receiving PHA, via email or other confirmed delivery method, prior to 
approving the family's request to move in order to determine whether 
the voucher will be absorbed or billed by the receiving PHA. The 
receiving PHA must advise the initial PHA in writing, via email or 
other confirmed delivery method, of its decision.
    (4) If the receiving PHA notifies the initial PHA that it will 
absorb the voucher, the receiving PHA cannot reverse its decision at a 
later date without consent of the initial PHA.
    (5) If the receiving PHA will bill the initial PHA for the 
portability voucher and the cost of the HAP will increase due to the 
move, the initial PHA may deny the move if it does not have sufficient 
funding for continued

[[Page 50574]]

assistance in accordance with Sec.  982.354 (e)(1).
    (6) If a billing arrangement is approved by the initial PHA or if 
the voucher is to be absorbed by the receiving PHA, the initial PHA 
must issue the family a voucher to move, if it has not already done so, 
and advise the family how to contact and request assistance from the 
receiving PHA.
    (7) The initial PHA must promptly notify the receiving PHA to 
expect the family. The initial PHA must give the receiving PHA the form 
HUD-52665, the most recent form HUD 50058 (Family Report) for the 
family, and all related verification information.
    (8) The family must promptly contact the receiving PHA in order to 
be informed of the receiving PHA's procedures for incoming portable 
families and comply with these procedures. The family's failure to 
comply may result in denial or termination of the receiving PHA's 
voucher.
    (9) The receiving PHA does not redetermine eligibility for a 
participant family. However, for a family that was not already 
receiving assistance in the PHA's HCV program, the initial PHA must 
determine whether the family is eligible for admission to the receiving 
PHA's HCV program. In determining income eligibility, the receiving 
PHA's income limits are used by the initial PHA.
    (10) When a receiving PHA assists a family under portability, 
administration of the voucher must be in accordance with the receiving 
PHA's policies. This requirement also applies to policies of Moving to 
Work agencies. The receiving PHA procedures and preferences for 
selection among eligible applicants do not apply to the family, and the 
receiving PHA waiting list is not used.
    (11) If the receiving PHA opts to conduct a new reexamination for a 
current participant family, the receiving PHA may not delay issuing the 
family a voucher or otherwise delay approval of a unit.
    (12) The receiving PHA must determine the family unit size for the 
family, and base its determination on the subsidy standards of the 
receiving PHA.
    (13) The receiving PHA must issue a voucher to the family. The term 
of the receiving PHA voucher may not expire before 30 calendar days 
from the expiration date of the initial PHA voucher. If the voucher 
expires before the family arrives at the receiving PHA, the receiving 
PHA must contact the initial PHA to determine if it will extend the 
voucher.
    (14) Once the receiving PHA issues the portable family a voucher, 
the receiving PHA's policies on extensions of the voucher term apply. 
The receiving PHA must notify the initial PHA of any extensions granted 
to the term of the voucher.
    (15) The family must submit a request for tenancy approval to the 
receiving PHA during the term of the receiving PHA voucher. As required 
in Sec.  982.303, if the family submits a request for tenancy approval 
during the term of the voucher, the PHA must suspend the term of that 
voucher.
    (16) The receiving PHA must promptly notify the initial PHA if the 
family has leased an eligible unit under the program, or if the family 
fails to submit a request for tenancy approval for an eligible unit 
within the term of the voucher.
    (17) At any time, either the initial PHA or the receiving PHA may 
make a determination to deny or terminate assistance to the family in 
accordance with Sec.  982.552 and 982.553.
    (d) Absorption by the receiving PHA. (1) If funding is available 
under the consolidated ACC for the receiving PHA's HCV program, the 
receiving PHA may absorb the family into the receiving PHA's HCV 
program. After absorption, the family is assisted with funds available 
under the consolidated ACC for the receiving PHA's HCV program.
    (2) HUD may require that the receiving PHA absorb all, or a portion 
of, incoming portable families. Under circumstances described in a 
notice published in the Federal Register, HUD may determine that 
receiving PHAs, or categories of receiving PHAs, should absorb all or a 
portion of incoming portable families. If HUD makes such a 
determination, HUD will provide an opportunity for public comment, for 
a period of no less than 60 calendar days, on such policy and 
procedures. After consideration of public comments, HUD will publish a 
final notice in the Federal Register advising PHAs and the public of 
HUD's final determination on the subject of mandatory absorption of 
incoming portable families.
    (3) HUD may provide financial or nonfinancial incentives (or both) 
to PHAs that absorb portability vouchers.
    (e) Portability billing. (1) To cover assistance for a portable 
family that was not absorbed in accordance with paragraph (d) of this 
section, the receiving PHA may bill the initial PHA for housing 
assistance payments and administrative fees.
    (2) The initial PHA must promptly reimburse the receiving PHA for 
the full amount of the housing assistance payments made by the 
receiving PHA for the portable family. The amount of the housing 
assistance payment for a portable family in the receiving PHA program 
is determined in the same manner as for other families in the receiving 
PHA program.
    (3) The initial PHA must promptly reimburse the receiving PHA for 
the lesser of 80 percent of the initial PHA ongoing administrative fee 
or 100 percent of the receiving PHA's ongoing administrative fee for 
each program unit under HAP contract on the first day of the month for 
which the receiving PHA is billing the initial PHA under this section. 
If administrative fees are prorated for the HCV program, the proration 
will apply to the amount of the administrative fee for which the 
receiving PHA may bill under this section (e.g., the receiving PHA may 
bill for the lesser of 80 percent of the initial PHA's prorated ongoing 
administrative fee or 100 percent of the receiving PHA's prorated 
ongoing administrative fee). If both PHAs agree, the PHAs may negotiate 
a different amount of reimbursement.
    (4) When a portable family moves out of the HCV program of a 
receiving PHA that has not absorbed the family, the PHA in the new 
jurisdiction to which the family moves becomes the receiving PHA, and 
the first receiving PHA is no longer required to provide assistance for 
the family.
    (5) In administration of portability, the initial PHA and the 
receiving PHA must comply with financial procedures required by HUD, 
including the use of HUD-required billing forms. The initial and 
receiving PHA must also comply with billing and payment deadlines under 
the financial procedures.
    (6) A PHA must manage the PHA HCV program in a manner that ensures 
that the PHA has the financial ability to provide assistance for 
families that move out of the PHA's program under the portability 
procedures, and that have not been absorbed by the receiving PHA, as 
well as for families that remain in the PHA's program.
    (7) HUD may reduce the administrative fee to an initial or 
receiving PHA if the PHA does not comply with HUD portability 
requirements.
    (f) Portability funding. (1) HUD may transfer units and funds for 
assistance to portable families to the receiving PHA from funds 
available under the initial PHA ACC.
    (2) HUD may provide additional funding (e.g., funds for incremental 
units) to the initial PHA for funds transferred to a receiving PHA for 
portability purposes.

[[Page 50575]]

    (3) HUD may provide additional funding (e.g., funds for incremental 
units) to the receiving PHA for absorption of portable families.
    (4) HUD may require the receiving PHA to absorb portable families.
    (g) Special purpose vouchers. (1) The initial PHA must submit the 
codes used for special purpose vouchers on the form HUD-50058, Family 
Report, and the receiving PHA must maintain the codes on the Family 
Report, as long as the Receiving PHA chooses to bill the initial PHA.
    (2) Initial and receiving PHAs must administer special purpose 
vouchers, such as the HUD-Veterans Affairs Supportive Housing vouchers, 
in accordance with HUD-established policy in cases where HUD has 
established alternative program requirements of such special purpose 
vouchers.


Sec.  982.403  [Amended]

0
10. In Sec.  982.403, paragraph (b)(3) is amended by removing the 
citation ``Sec.  982.314'' and in its place adding the citation ``Sec.  
982.354.''


Sec.  982.551  [Amended]

0
11. In Sec.  982.551, paragraph (f) is amended by removing the citation 
``Sec.  982.314'' and in its place adding the citation ``Sec.  
982.354.''

0
12. In Sec.  982.554, revise paragraph (c)(4) to read as follows:


Sec.  982.554  Informal review for applicant.

* * * * *
    (c) * * *
    (4) A PHA determination not to approve an extension of the voucher 
term.
* * * * *

0
13. In Sec.  982.555, revise paragraph (b)(4) to read as follows:


Sec.  982.555  Informal hearing for participant.

* * * * *
    (b) * * *
    (4) A PHA determination not to approve an extension of the voucher 
term.
* * * * *

0
14. In Sec.  982.637, revise paragraph (c)(1) to read as follows:


Sec.  982.637  Homeownership option: Move with continued tenant-based 
assistance.

* * * * *
    (c) * * *
    (1) Lack of funding to provide continued assistance. The PHA may 
deny permission to move with continued rental or homeownership 
assistance if the PHA determines that it does not have sufficient 
funding to provide continued assistance. The PHA must provide written 
notification to the local HUD Office within 10 business days of 
determining it is necessary to deny moves based on insufficient 
funding.
* * * * *


Sec.  982.641  [Amended]

0
15. Section 982.641(b)(11) is amended by removing the citation ``Sec.  
982.314'' and in its place adding the citation ``Sec.  982.354.''

    Dated: August 13, 2015.
Jemine A. Bryon,
General Deputy Assistant Secretary for Public and Indian Housing.
    Approved on August 13, 2015.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-20551 Filed 8-19-15; 8:45 am]
BILLING CODE 4210-67-P



                                             50564            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                               Dated: August 14, 2015.                               a voucher holder to use the voucher                   dating violence, sexual assault, and
                                             Leslie Kux,                                             assistance outside the jurisdiction of the            stalking have access to the resources
                                             Associate Commissioner for Policy.                      PHA that initially issues the family its              necessary to relocate to a safe, stable
                                             [FR Doc. 2015–20554 Filed 8–19–15; 8:45 am]             voucher. While portability offers an                  home away from an abuser. Further,
                                             BILLING CODE 4164–01–P
                                                                                                     important mechanism to increase                       moves to areas with relatively low
                                                                                                     housing choice, this feature has not                  concentrations of neighborhood poverty
                                                                                                     been maximized by PHAs and                            have shown to relay important benefits
                                                                                                     participating families because the                    to housing choice voucher families, in
                                             DEPARTMENT OF HOUSING AND
                                                                                                     current process for allowing a family to              particular mental and physical health
                                             URBAN DEVELOPMENT
                                                                                                     move from one jurisdiction to another is              for adults and long-term educational
                                             24 CFR Part 982                                         time consuming and burdensome. HUD                    and earning gains for young children.
                                                                                                     recognizes that for the HCV program’s                 HUD recognizes that some policies may
                                             [Docket No. FR–5453–F–02]                               goals to support mobility and housing                 increase burden for some PHAs;
                                             RIN 2577–AC86                                           choice to be realized, the regulations                however, the added clarity to the
                                                                                                     governing the portability process must                portability process afforded by this final
                                             Housing Choice Voucher Program:                         be clarified so that the burden on                    rule is expected to improve the
                                             Streamlining the Portability Process                    families and the PHA is reduced. This                 portability process and reduce the
                                                                                                     final rule completes the rulemaking                   burden on families and PHAs.
                                             AGENCY:  Office of the Assistant                                                                                The streamlining changes do not add
                                                                                                     process, which commenced in 2012, to
                                             Secretary for Public and Indian                                                                               any substantial cost to the HCV
                                                                                                     revise the existing portability
                                             Housing, HUD.                                                                                                 program.
                                                                                                     regulations to streamline the portability
                                             ACTION: Final rule.                                     process and facilitate the ability of                 II. Background—the March 28, 2012,
                                             SUMMARY:    This final rule amends HUD’s                participating families to move to the                 Proposed Rule
                                             regulations governing portability in the                jurisdiction of their choice.
                                                                                                                                                              On March 28, 2012, at 77 FR 18731,
                                             Housing Choice Voucher (HCV)                            B. Summary of the Major Provisions of                 HUD published a rule in the Federal
                                             program. Portability is a feature of the                the Regulatory Action                                 Register that proposed to amend HUD’s
                                             HCV program that allows an eligible                                                                           regulations governing portability in the
                                                                                                        The key regulatory changes by this
                                             family with a housing choice voucher to                                                                       HCV program. The HCV program is the
                                                                                                     final rule include:
                                             use that voucher to lease a unit                           • Removing the mandatory                           Federal Government’s largest program
                                             anywhere in the United States where                     absorption requirement discussed in the               for assisting very low-income families,
                                             there is a public housing agency (PHA)                  proposed rule and clarifying the                      the elderly, and persons with
                                             operating an HCV program. The purpose                   notification requirement for mandatory                disabilities to afford decent, safe, and
                                             of HUD’s changes to the portability                     voucher suspension;                                   sanitary housing in the private market.
                                             regulations is to enable PHAs to better                    • Requiring an initial PHA to notify               The HCV program is authorized by
                                             serve families and expand housing                       the local HUD office within 10 business               section 8(o) of the United States
                                             opportunities by improving portability                  days of a determination to deny a                     Housing Act of 1937 (42 U.S.C. 1473f(o))
                                             processes.                                              portability move based on insufficient                (1937 Act), and the HCV program
                                             DATES: Effective: September 21, 2015.                   funding;                                              regulations are found in 24 CFR part
                                             FOR FURTHER INFORMATION CONTACT:                           • Providing that the voucher issued                982.
                                             Becky Primeaux, Director, Housing                       by the receiving PHA to the family may                   Housing choice vouchers are
                                             Voucher and Management Operations                       not expire before 30 calendar days has                administered locally by PHAs. PHAs
                                             Division, Office of Housing Choice                      passed from the expiration date of the                receive Federal funds from HUD to
                                             Vouchers, Office of Public and Indian                   initial PHA’s voucher;                                administer the HCV program. Under the
                                             Housing, Department of Housing and                         • Requiring briefings for all                      HCV program, housing assistance is
                                             Urban Development, 451 7th Street SW.,                  participating on how portability works                provided on behalf of the participating
                                             Room 4216, Washington, DC 20410–                        and the benefits of living in low-poverty             family who is responsible for finding a
                                             8000, telephone number 202–708–0477                     census tracts; and                                    suitable housing unit of their choice
                                             (this is not a toll-free number).                          • Allowing a family to choose the                  where the owner agrees to rent under
                                             Individuals with speech or hearing                      receiving PHA to administer their                     the program. The participant is free to
                                             impairments may access this number                      voucher should they choose to use                     choose any rental housing, including
                                             through TTY by calling the Federal                      portability.                                          single family homes, townhouses, and
                                             Relay Service at 800–877–8339 (this is                  Please see Section III of this preamble,              apartments, that meets the requirements
                                             a toll-free number).                                    entitled ‘‘Changes at the Final Rule                  of the program and is not limited to
                                                                                                     Stage’’ for a more detailed discussion of             units located in subsidized housing
                                             SUPPLEMENTARY INFORMATION:
                                                                                                     all the changes proposed by this rule.                projects. Under certain circumstances, if
                                             I. Executive Summary                                                                                          authorized by the PHA, a family may
                                                                                                     C. Costs and Benefits                                 use its voucher to purchase a modest
                                             A. Purpose of the Regulatory Action                       The changes made by this final rule                 home.
                                               The purpose of this final rule is to                  are designed to minimize burden for                      A housing subsidy is paid to the
                                             improve the portability process of the                  PHAs and participating HCV families                   landlord directly by the PHA on behalf
                                             HCV program. Under the HCV program,                     and thereby increase the ability of                   of the participating family. The family
                                                                                                     participating families to live in areas of            then pays the difference between the
rmajette on DSK7SPTVN1PROD with RULES




                                             the participating family is free to choose
                                             any housing that meets the requirements                 their choice or relocate to a new area for            actual rent charged by the landlord and
                                             of the program. As a means to enable                    employment opportunities or to gain                   the amount subsidized by the program.
                                             housing choice and mobility to                          access to preferred schools for their                 The PHA determines the amount that
                                             encourage social and economic                           children. In addition, the improved                   the family will contribute toward rent,
                                             integration, the HCV program offers                     portability process contributes to                    which is generally 30 percent of its
                                             voucher portability; that is, the ability of            helping victims of domestic violence,                 adjusted annual income. A key feature


                                        VerDate Sep<11>2014   15:15 Aug 19, 2015   Jkt 235001   PO 00000   Frm 00022   Fmt 4700   Sfmt 4700   E:\FR\FM\20AUR1.SGM   20AUR1


                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                       50565

                                             of the HCV program is the mobility of                   Regulations,’’ 1 which was effective on               with a HCV on the benefits of living in
                                             the voucher assistance. Section 8(r) of                 March 19, 2015, to be consistent with                 low-poverty census tracts.
                                             the 1937 Act provides that HCV                          this final portability final rule.                       9. Providing list of landlords to
                                             participants may choose a unit that                        2. Mandatory voucher suspension
                                                                                                                                                           moving families (§ 982.301(b)(11)). HUD
                                             meets program requirements anywhere                     (§ 982.4 and § 982.303(c)). HUD revises
                                                                                                                                                           revises § 982.301(b)(11) to replace the
                                             in the United States, provided that a                   the notification requirement and
                                                                                                                                                           current reference to ‘‘other parties
                                             PHA administering the tenant-based                      definition pertaining to mandatory
                                                                                                                                                           known to the PHA’’ for ‘‘other resources
                                             program has jurisdiction over the area in               voucher suspension to provide clarity
                                             which the unit is located.                              and avoid the possibility of disputes                 (such as newspapers, organizations, and
                                               The term ‘‘portability’’ refers to the                between families and PHAs.                            online search tools) known to the PHA’’
                                             process of leasing a dwelling unit with                    3. Notification requirement before                 that may assist the family in locating a
                                             tenant-based housing voucher assistance                 denying moves for insufficient funding                unit, and to provide that the list of
                                             outside of the jurisdiction of the PHA                  (§ 982.354). HUD revises the written                  landlords or other resources covers
                                             that initially issued the family its                    notification requirement to require an                areas outside of poverty or minority
                                             voucher (the initial PHA). The HCV                      initial PHA to notify the local HUD                   concentration.
                                             regulations, found at 24 CFR 982.353                    office within 10 business days of a                      10. Allow a family to choose the
                                             through 982.355, detail where a family                  determination to deny a portability                   receiving PHA (§ 982.355(b)). HUD
                                             may move and the responsibilities of the                move based on insufficient funding.                   revises § 982.355(b) to allow a family to
                                             initial PHA and the receiving PHA (the                     4. Portability processing procedures               choose the receiving PHA to administer
                                             PHA with jurisdiction over the area to                  (§ 982.355(g)). HUD revises § 982.355(g),             its voucher, if there is more than one
                                             which the family desires to move).                      which pertains to special purpose                     PHA for the jurisdiction where the
                                             Situations have arisen over time that                   vouchers (SPVs), to clarify that PHAs                 family seeks to lease a unit.
                                             caused HUD to identify several issues                   must administer SPVs in accordance
                                             that may delay or impede the ability of                 with HUD-established policy, including                   11. Portability and Project-Based
                                             families to relocate with their voucher.                any alternative program requirements                  Vouchers (PBV) (§ 982.355). HUD did
                                               This final rule takes into                            established by HUD for SPVs.                          not adopt the change to § 982.355(g) in
                                             consideration public comment received                      5. Term of receiving PHA voucher                   the proposed rule, which stated that the
                                             on the March 28, 2012, proposed rule                    (§ 982.355(c)(13)). HUD revises                       provisions on portability do not apply to
                                             and: (1) More clearly delineates the                    § 982.355(c)(13) to provide that the                  the PBV program. HUD is concerned
                                             roles of initial and receiving PHAs; (2)                voucher, issued by the receiving PHA to               that the provision as proposed could be
                                             improves accountability in portability                  the family, may not expire before 30                  misinterpreted to preclude any potential
                                             billing arrangements between PHAs;                      calendar days have passed from the                    touchpoints between the two
                                             and (3) allows families to more easily                  expiration date of the initial PHA’s                  regulations. To address such issues,
                                             search for and lease a rental unit in their             voucher. However, if the initial PHA’s                HUD plans to issue separate guidance
                                             desired location.                                       voucher has expired before the family                 on this subject.
                                             III. Changes at the Final Rule Stage                    arrives in the jurisdiction of the
                                                                                                                                                              12. Other technical changes. In
                                                                                                     receiving PHA, the PHA must contact
                                                In response to public comment and                                                                          addition to the changes discussed
                                                                                                     the initial PHA to determine if the
                                             following further consideration of                                                                            above, HUD makes additional technical
                                                                                                     initial PHA will extend the voucher.
                                             portability issues by HUD, this final rule                                                                    changes in this final rule. HUD revises
                                                                                                     Unless the initial PHA is willing to
                                             makes certain changes to the regulations                extend its voucher under these                        § 982.355(d)(1), which addresses HCV
                                             proposed in the March 28, 2012, rule.                   circumstances, the receiving PHA may                  absorption by the receiving PHA and the
                                             Changes made in response to public                      not issue the family a voucher.                       availability of funding under the
                                             comment, issues raised by commenters,                      6. Administrative fee (§ 982.355(e)(3)).           consolidated ACC for the receiving
                                             and HUD’s responses to the comments                     HUD revises § 982.355(e)(3) to clarify                PHA’s HCV program. HUD revises this
                                             are further addressed in Section III of                 that if the ongoing administrative fees               section to remove the reference to the
                                             this preamble.                                          for the program have been prorated due                effective date of the Housing Assistance
                                                The following highlights the more                    to insufficient administrative fee                    Payment (HAP) contract as the date that
                                             substantive changes made to the                         funding, the administrative fee that the              the receiving PHA must know if it has
                                             proposed rule at this final rule stage:                 receiving PHA may bill the initial PHA                funding to absorb the voucher. Since the
                                                1. Definition of Absorption                          is also subject to the same proration.                receiving PHA may choose to
                                             (§ 982.4(b)). To be consistent with                        7. Mandatory absorption of portability             subsequently end a billing arrangement
                                             HUD’s portability regulations at                        vouchers (§ 982.355(d)(2)). HUD                       and absorb the family after the effective
                                             § 982.355(d), which allows a PHA to                     removes the mandatory voucher                         date of the HAP contract, the reference
                                             absorb the family instead of billing the                absorption requirement and instead                    was confusing. The change clarifies that
                                             initial PHA, HUD revises the definition                 states that if HUD should choose to                   if the receiving PHA wishes to absorb
                                             of absorption under the HCV program to                  require mandatory absorption, HUD                     the family into the receiving PHA
                                             mean the point at which a receiving                     must publish a notice in the Federal                  program, the receiving PHA must have
                                             PHA starts making assistance payments                   Register and provide PHAs or affected                 funding available under its consolidated
                                             with funding under its consolidated                     PHAs (if not applicable to all PHAs)                  ACC to do so.
                                             Annual Contributions Contract (ACC),                    with the opportunity for public
                                             rather than billing, the initial PHA. The                                                                        HUD makes technical revisions to
                                                                                                     comment under § 982.355(d)(2)).
                                             current definition implies that, in order                                                                     §§ 982.301(b)(1), 982.554(c)(4), and
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                                                                                                        8. Family briefings (§ 982.301(a)(2),
                                             to absorb a family, the receiving PHA                   (a)(3), (b)(1), (b)(4), and (b)(9)). HUD              982.637(c)(1) to conform with the policy
                                             has to first bill the initial PHA. The                  revises § 982.301(a)(2), (a)(3), (b)(4), and          changes implemented elsewhere in this
                                             definition in this final rule also amends               (b)(9) to require briefings for all families          final rule. Finally, HUD revises
                                             the recently revised definition in HUD’s                                                                      §§ 982.403(c), 982.551(f), and
                                             ‘‘Removal of Obsolete Section 8 Rental                    1 See http://www.gpo.gov/fdsys/pkg/FR-2015-02-      982.641(b)(11) to correct an incorrect
                                             Assistance Certificate Program                          17/pdf/2015-03037.pdf.                                citation.


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                                             50566            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             IV. Discussion of Public Comments                       will increase administrative burden.                  tenancy has been approved or denied.
                                             Received on March 28, 2012, Proposed                    HUD further believes that the added                   Specifying that the family must be
                                             Rule                                                    clarity to the portability process                    notified before the voucher suspension
                                                The comment period for the proposed                  afforded by this final rule will improve              ends provides clarity and avoids
                                             rule closed May 29, 2012. HUD received                  the portability process and reduce the                potential disputes between families and
                                             52 comments on this proposed rule. The                  burden on families and PHAs. To                       PHAs. See § § 982.4 and 982.303(c).
                                                                                                     address such concerns, each of these                     Comment: Notification requirement
                                             commenters included PHAs,
                                                                                                     four issues is specifically addressed                 before denying moves for insufficient
                                             organizations representing the public
                                                                                                     below. With respect to HUD’s study on                 funding (§ 982.354). Several
                                             housing industry, tenant advocacy
                                                                                                     voucher administrative fees, the study is             commenters expressed support for this
                                             groups, State and local government
                                                                                                     complete and, because of the time                     provision, but suggested that HUD
                                             agencies, and other interested members
                                                                                                     frame, took into consideration costs                  specify the time period in which a PHA
                                             of the public.
                                                                                                     associated with portability, before this              must submit notice to HUD, as well as
                                                The majority of comments were from
                                                                                                     rulemaking.                                           the date by which HUD will respond to
                                             PHAs and public housing representative
                                                                                                        Comment: Mandatory voucher                         the PHA’s written notice. Other
                                             organizations. The PHAs that
                                                                                                     suspension (§ 982.4 and § 982.303).                   commenters expressed opposition to the
                                             commented varied in size and
                                                                                                     Several commenters supported HUD’s                    requirement. They said that the
                                             geography. In general, the comments
                                                                                                     proposed change to the definition of                  receiving PHA is already required to
                                             from PHAs were mixed. There were                        ‘‘suspension.’’ The commenters wrote                  notify the initial PHA whether the
                                             several proposals that PHAs supported                   that the proposed language would                      receiving PHA will bill the initial PHA
                                             (e.g., allowing an extension beyond 30                  increase the likelihood that families will            for the family, or will absorb the
                                             days for porting vouchers, and actively                 successfully move during their voucher                voucher, and such requirement results
                                             providing a list of landlords) and others               term. Other commenters, however,                      in additional delays for the family.
                                             to which PHAs expressed opposition                      expressed concerns about the change,                     HUD Response: Notification to the
                                             (e.g., restricting receiving PHAs from                  writing that the proposed revision                    local HUD office when a PHA is
                                             rescreening the porting family).                        would eliminate local discretion and                  denying moves due to insufficient
                                             Advocacy group commenters opposed                       increase administrative complexities                  funding is not a new requirement.
                                             the proposal regarding rescreening of                   and costs. The commenters wrote that                  Notice PIH 2012–42 (HA) 2 provides for
                                             porting families by the receiving PHA                   the proposed change would require                     this notification requirement, and the
                                             and expressed concern about the civil                   PHAs to monitor the term of the                       inclusion of this provision in the
                                             rights implications of such proposals.                  suspension and to notify families of that             proposed rule was intended to codify it
                                             Specific issues raised by commenters                    term and its subsequent expiration. The               in regulation. HUD understands that
                                             and HUD’s responses are as follows:                     commenters also wrote that the                        requiring the PHA to notify the local
                                                Comment: Concerns that the rule will                 mandatory suspension could result in                  HUD office adds to the administrative
                                             increase regulatory burden and reduce                   two PHAs administering the same                       process. However, this requirement is
                                             local PHA discretion. Many                              voucher, with the voucher remaining                   important to HUD in carrying out its
                                             commenters, while supportive of                         outstanding indefinitely and limiting                 oversight and monitoring function.
                                             portability and HUD’s goals to                          the ability of the PHA to accurately                  Through the notification requirement,
                                             streamline and reduce administrative                    report, budget, and forecast available                HUD can better ensure that participants
                                             burdens, expressed concerns that the                    voucher funding.                                      are not unnecessarily prohibited from
                                             proposed regulatory changes did not                        HUD Response: The proposed rule                    moving under portability or within the
                                             sufficiently meet these goals. The                      provided that the suspension term starts              PHA jurisdiction.
                                             commenters wrote that, rather than                      when the family submits a request for                    HUD agrees that more specificity is
                                             streamlining portability administration,                tenancy approval and ends when the                    needed with respect to the time frames
                                             the proposed rule would place                           PHA approves or denies such request.                  associated with this requirement. The
                                             additional requirements on PHAs (such                   While HUD understands how voucher                     final rule provides that a PHA must
                                             as notifying the HUD field office before                suspensions may impact a PHA’s                        notify HUD in writing within 10
                                             denying moves for insufficient funding,                 processes, HUD believes the benefit to                business days of the date on which the
                                             extending the term of the voucher for at                the family outweighs the possible                     PHA determines it is necessary to deny
                                             least 30 days beyond the initial                        increase in administrative burden                     moves based on insufficient funding. If
                                             termination, requiring mandatory                        placed on the PHA. Based on the length                HUD determines that the PHA lacks the
                                             absorptions, and capping administrative                 of time an inspection takes to be                     grounds to deny moves due to
                                             fees). The commenters wrote that these                  completed, and the possibility that the               insufficient funding, the PHA must
                                             policies would add to the burden and                    voucher could expire if it were not                   immediately inform any affected family
                                             costs of administering vouchers, and                    suspended, families may be harmed by                  and immediately process the family’s
                                             suggested that HUD consider including                   such delays due to no fault of their own.             request to move.
                                             the proposed new regulatory                             Furthermore, PHAs should be actively                     Comment: Require HUD approval to
                                             requirements in HUD’s upcoming                          monitoring and managing their process                 deny incoming families and other
                                             voucher administrative fee study to                     for approving the assisted tenancy so                 portability processing procedures
                                             determine their real cost on PHAs and                   the mandatory suspension rule should                  (§ 982.355). Several commenters
                                             families. The commenters also stated                    not significantly affect a PHAs ability to            expressed support for the requirement
                                             that many of the new requirements                       report, budget, and forecast available                that a PHA must have written approval
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                                             would reduce local PHA discretion and                   funding.                                              from HUD before refusing any incoming
                                             flexibility.                                               As noted earlier, HUD revised the                  families. The commenters also
                                                HUD Reponses: HUD understands                        proposed language on mandatory                        suggested that HUD should clarify the
                                             that some policies may increase burden                  voucher suspensions to clarify that the               procedures that PHAs must use when
                                             for some PHAs. However, HUD                             suspension lasts until the family is
                                             disagrees that other policies in this rule,             notified in writing by the PHA whether                  2 See http://portal.hud.gov/hudportal/documents/

                                             such as capping administrative fees,                    the request for PHA-approval of the                   huddoc?id=pih2012-42.pdf.



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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                         50567

                                             allowing portability of special purpose                 supplement, rather than replace, other                commenters stated that they were also
                                             vouchers, referred to in this preamble as               forms of communication.                               unclear which PHA is responsible for
                                             SPVs (e.g., Non-Elderly Disabled (NED),                    HUD Response: While HUD supports                   determining fees.
                                             Veterans Affairs Supportive Housing                     email as the preferred method of                         Other commenters suggested
                                             (VASH), Family Unification Program                      communication, the final rule allows for              alternatives or changes to the proposed
                                             (FUP), and 5-Year Mainstream).                          the use of other methods of                           administrative fee requirements.
                                             Commenters suggested that HUD specify                   communication that have delivery                      Commenters suggested that HUD
                                             limited circumstances in which a PHA                    confirmation. HUD also made a                         consider prohibiting PHAs from
                                             may not be required to accept incoming                  technical change to § 982.355(c)(4) to                prorating administrative fees for their
                                             families. Other commenters expressed                    correct the reference to the ‘‘receiving’’            outgoing portability vouchers and
                                             concern that prohibiting the reversal of                and not the ‘‘initial PHA.’’                          simply use the 80 percent of the
                                             a decision to absorb vouchers will keep                    Comment: Voucher term of receiving                 published administrative fee. Other
                                             PHAs from deciding to absorb vouchers,                  PHA voucher (§ 982.355). Several                      commenters suggested a flat
                                             thus increasing the amount of                           commenters expressed support for the                  administrative fee to be paid to the
                                             portability billing.                                    requirement that PHAs provide an                      receiving PHA. Commenters also
                                                HUD Response: HUD appreciates                        additional 30 days on the voucher term                suggested that HUD consider
                                             these comments and has made some                        to accommodate the time a family needs                reinstatement of the ‘‘hard to house’’ fee
                                             clarifying changes in the final rule with               to attend a briefing session and locate a             for SPVs.
                                             respect to SPVs, in § 982.355(g). The                   new unit. Some commenters, however,                      HUD Response: Under the proposed
                                             proposed rule included an example of a                  suggested that the extension be                       rule, the initial PHA must reimburse the
                                             circumstance where a PHA may be                         provided at the agency’s discretion and               receiving PHA for the lesser of 80
                                             allowed to deny an incoming family—                     not be mandatory. Another commenter                   percent of the initial PHA ongoing
                                             a PHA in a declared disaster area.                      encouraged HUD to add language to the                 administrative fee or 100 percent of the
                                             However, HUD cannot predict all                         regulation making it clear that receiving             receiving PHA’s ongoing administrative
                                             limited circumstances that would                        PHAs may choose to issue vouchers                     fee for each program unit. Under this
                                             warrant a denial of incoming families                   with more than the additional 30 days                 structure, the initial PHA always gets to
                                                                                                     of search time. Other commenters                      keep a percentage of the administrative
                                             and instead prefers to handle such
                                                                                                     objected to extending the voucher for 30              fee of the voucher, and the receiving
                                             requests on a case-by-case basis.
                                                                                                     days. These commenters wrote that a                   PHA does not bill for an amount that is
                                                In order to specify the procedures
                                                                                                     blanket, national requirement that                    higher than the receiving PHA’s
                                             related to SPVs, the proposed rule set
                                                                                                     voucher terms last an additional 30 days              administrative fee. Prior to this final
                                             out requirements relating to portability                would reduce the number of unit                       rule provision, if the receiving PHA’s
                                             moves of SPVs that were applicable to                   months leased nationally.                             prorated administrative fee was $45 and
                                             all SPVs; however, due to the intricacies                  HUD Response: While requiring a                    the initial PHA’s prorated
                                             of each SPV program, HUD determined                     receiving PHA to add an additional 30                 administrative fee was $60, for example,
                                             that specific portability procedures for                calendar days to the term of the voucher              the receiving PHA would receive $48 (or
                                             each SPV are better suited for guidance                 may increase a PHA’s administrative                   80 percent of $60) for the voucher,
                                             and not regulation.                                     burden, providing an additional 30                    which is more than the $45 it would get
                                                Finally, some commenters claimed                     calendar days to the receiving PHA’s                  for administering its own vouchers. In
                                             that HUD’s policy to prohibit PHAs                      voucher term accommodates the                         the same scenario under this final rule,
                                             from reversing a decision to absorb a                   additional time that the portability                  the receiving PHA would bill for $45 for
                                             voucher may cause some PHAs to be                       process requires, and does not count                  its share of the administrative fee and
                                             more inclined to not absorb a voucher.                  against the family’s search time.                     the initial PHA would keep $15 of the
                                             HUD was unable to find evidence that                       HUD agrees that the language in the                prorated monthly on-going admin fee
                                             the requirement will have such an                       proposed rule was too restrictive and                 for that unit under lease.
                                             effect, or that the impact on portability               has changed the language in the final                    HUD also revises § 982.355(e)(3) to
                                             billings will be significant. Moreover,                 rule to accommodate extensions of the                 mirror, where appropriate, the language
                                             HUD determined that it is important to                  term of the receiving PHA voucher                     concerning ongoing administrative fees
                                             eliminate the potential negative effect                 beyond 30 calendar days if the receiving              under current voucher regulations at
                                             such a reversal could have on the                       PHA chooses to allow such extensions.                 § 982.152(b)(1). The paragraph is also
                                             family.                                                 See § 982.355(c)(13).                                 revised to clarify that the receiving PHA
                                                Comment: Portability processing                         Comment: Capping administrative                    is not precluded from billing an initial
                                             procedures and allowing email                           fees (§ 982.355). Several commenters                  PHA for more than 100 percent of its
                                             communications between initial and                      supported capping the amount paid to                  own administrative fee if both PHAs
                                             receiving PHA (§ 982.355). Several                      the receiving PHA for administrative                  agree to a different amount of
                                             commenters expressed support for the                    fees at 100 percent of the receiving                  reimbursement that is more than 100
                                             requirement that PHAs communicate                       PHA’s administrate fee rate. Other                    percent of the receiving PHA’s
                                             with other PHAs through email or other                  commenters were opposed to this                       administrative fees. HUD agrees with
                                             confirmed delivery methods.                             proposal stating that it would be unfair              commenters that, as stated in the
                                             Commenters wrote that email is simpler                  for a receiving PHA to receive 100                    proposed rule, HUD does not address
                                             than other methods, and its use has                     percent of the fee since they are not                 whether the administrative fee is based
                                             already been implemented by many                        doing 100 percent of the work.                        on the initial PHA’s published or
                                             PHAs. Some commenters wrote that                           Several commenters requested                       prorated fee. Therefore, HUD is adding
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                                             some PHAs do not have email contacts                    clarification of the administrative fee               language to clarify that, if administrative
                                             for other PHAs, so it would be helpful                  structure. The commenters wrote the                   fees are prorated for the HCV program,
                                             for HUD to add an email field to the                    proposed rule does not address the                    the proration will apply to the amount
                                             HUD–52665 form. Other commenters,                       proration issue and that it is unclear if             of the administrative fee for which the
                                             however, had concerns about relying on                  the cap is based on the receiving PHAs’               receiving PHA may bill under this
                                             email, and suggested that email                         published fee or prorated fee. These                  section (i.e., the receiving PHA may bill


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                                             50568            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             for the lesser of 80 percent of the initial             the use of Net Restricted Position (NRP)              receiving PHA because it does not
                                             PHA’s prorated ongoing administrative                   would have on PHAs.                                   recognize the real cost for the receiving
                                             fee or 100 percent of the receiving                        After consideration of such factors,               PHA for administering the voucher, but
                                             PHA’s prorated ongoing administrative                   HUD decided not to adopt the                          the commenter suggested that an
                                             fee).                                                   mandatory absorption requirement as                   administrative fee should still be paid.
                                                Comment: Mandatory absorption of                     proposed. This final rule continues to                   HUD Response: HUD agrees with the
                                             portability vouchers (§ 982.355(d)).                    afford HUD the ability to mandate                     commenters that expressed concerns
                                             Several commenters expressed support                    absorptions on a case-by-case basis.                  that transfers of ACC funds under
                                             to require PHAs to absorb porting                       Should HUD determine to impose such                   portability may have potential negative
                                             vouchers. However, several of the                       a requirement in the future for all PHAs              effect on PHAs, especially those with a
                                             commenters requested clarification on                   that: (1) Are utilizing less than 95                  high percentage of outgoing portability
                                             the following areas: (1) The time period                percent of their available budget                     vouchers. Also the administrative
                                             HUD will use to determine a PHA is                      authority, and (2) have a leasing rate of             burden of such transfers on HUD and
                                             below the 95 percent threshold; (2) how                 less than 95 percent, it shall do so                  PHAs outweighs eliminating or
                                             much notice a PHA will be provided                      through a notice in the Federal Register              minimizing portability billings. With
                                             before being required to absorb                         stating such proposed policy and                      respect to limiting the amount the initial
                                             vouchers; (3) what data HUD will use to                 procedures, with an opportunity for                   PHA pays for HAP under the billing
                                             measure utilization of vouchers and                     public comment for a period of no less                option to no more than it would pay for
                                             budget authority; and (4) whether the                   than 60 calendar days. After                          that voucher if leasing in their
                                             receiving PHA will be prohibited from                   consideration of public comments, HUD                 jurisdiction, and having the receiving
                                             issuing vouchers to new families in                     will publish a final notice in the Federal            PHA share the cost, HUD concluded
                                             their jurisdiction without having first                 Register advising PHAs and the public                 that such sharing of the costs would be
                                             absorbed all billed portability families.               of HUD’s final determination on                       administratively burdensome on PHAs,
                                                Several other commenters expressed                   mandatory absorption.                                 disproportionately affect PHAs with a
                                             opposition to the proposal, stating that                                                                      high percentage of incoming portability
                                             the proposed provision fails to take                    V. Comments on Specific Issues Raised
                                                                                                                                                           vouchers, needlessly complicate the
                                             local circumstances into consideration.                 by HUD
                                                                                                                                                           portability process, and would not
                                             Some commenters expressed concern                          Comment: Transfer of ACC funds                     reduce portability billings. Therefore,
                                             about possible negative consequences                    between initial and receiving PHA. HUD                HUD did not incorporate this change
                                             for small PHAs. They wrote that                         invited comments on how to redesign                   into this final rule.
                                             mandatory absorption may hurt small                     portability in a way that would                          Comment: Rescreening of families
                                             PHAs if they have a small allocation of                 eliminate or minimize the                             using portability. HUD solicited
                                             vouchers or some vouchers are canceled                  administrative burdens associated with                comments on how to minimize hardship
                                             or terminated. Therefore, a small PHA                   portability billings. In the past, some               on families when the receiving PHA’s
                                             may instead prefer to draw from its                     PHAs suggested that HUD transfer funds                screening criteria is more stringent than
                                             waiting list, instead of absorbing porting              from the initial PHA’s consolidated ACC               the initial PHA’s criteria. Several
                                             vouchers. Other commenters wrote that                   to the receiving PHA’s consolidated                   commenters supported a proposed
                                             imposing requirements on some PHAs                      ACC, in order to transfer the money                   restriction on rescreening of porting
                                             to absorb portable vouchers without                     without direct PHA involvement. Others                families. These commenters wrote that
                                             making absorption the standard solution                 suggested a sharing of costs by the                   rescreening presents a significant barrier
                                             is problematic. Finally, commenters also                initial and receiving PHA, whereby the                for voucher families trying to relocate to
                                             expressed concern that the burden                       initial PHA would pay to the receiving                areas that offer greater opportunity. The
                                             would fall disproportionately on SPVs.                  PHA no more than the family’s subsidy                 commenters wrote that, for true
                                                HUD Response: In this final rule,                    at the initial PHA location.                          mobility, rescreening must not be
                                             HUD removes the mandatory absorption                       Of those commenters that responded                 allowed.
                                             requirement from the proposed rule. In                  to the request in the proposed rule, a                   Other commenters, all PHAs,
                                             considering the mandatory absorption                    few supported a transfer of funds                     supported rescreening by the receiving
                                             requirement, HUD weighed various                        between the initial and receiving PHAs                PHA. A commenter wrote that PHAs
                                             factors such as: (1) Monitoring leasing                 for portability vouchers, while others                cannot be expected to operate using
                                             rates to assess when the requirement                    were against it. Some commenters wrote                multiple screening standards. A
                                             should be put in place and when it                      that tracking transfers of this type would            commenter also wrote that it is unfair to
                                             should be removed; (2) the impact on                    be an added administrative burden on                  families that are ineligible under the
                                             the utilization rate of initial PHAs                    HUD and PHAs. Commenters noted that                   receiving PHA’s criteria, while those
                                             (when a receiving PHA absorbs a port-                   PHAs with a high percentage of                        from another jurisdiction are allowed to
                                             in voucher for which it was previously                  outgoing portability vouchers would be                participate in the HCV program.
                                             billing, it frees-up budget authority and               disproportionately affected by such                      HUD Response: HUD agrees that
                                             reduces the number of unit months                       transfers. A high volume of voucher                   receiving PHAs should be allowed to
                                             leased for the initial PHA, and the                     transfers may jeopardize these PHAs’                  apply their own screening standards
                                             initial PHA may not have sufficient time                operations, and make the PHAs’ budgets                consistently among families in their
                                             to utilize its increased budget authority               more unstable and less predictable.                   program and for families moving into
                                             or increase its reduced unit months                     Commenters favoring the transfers of                  their jurisdiction under portability.
                                             leased); (3) determining the timing of                  ACC funds for portability wrote that                  However, it is important that moving
                                             such assessments; (4) the impact on the                                                                       families be informed that they are
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                                                                                                     such transfers would result in numerous
                                             receiving PHA’s waiting list as                         efficiencies by eliminating billing                   subject to screening based on the
                                             absorption would reduce the number of                   arrangements among PHAs.                              receiving PHA’s criteria, and that the
                                             families on the waiting list that could be                 As for sharing the costs between                   receiving PHA’s screening criteria may
                                             served; (5) the impact such a                           PHAs, a commenter wrote that it is                    be different than that of the initial PHA.
                                             requirement could have on renewal                       unfair for the initial PHA to pay no                  Any potential hardship on the family
                                             funding; and (6) the impact requiring                   more than the family’s subsidy to the                 may be minimized, to some extent, if


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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                        50569

                                             families are aware ahead of time if the                 disadvantages in providing all families               provide housing opportunities to
                                             receiving PHA will be rescreening                       such information. While there may be                  families in nonracially and nonpoverty
                                             incoming families. This information                     some administrative cost to PHAs in                   concentrated areas. At this final rule
                                             should be incorporated into the briefing                providing such information to all                     stage, HUD retains the requirement to
                                             packet as discussed below.                              families selected to participate in the               provide a list of landlords known to the
                                                Comment: Requirement and content                     program, this change will also provide                PHA that may be willing to lease a unit
                                             of HCV family briefings. HUD solicited                  some administrative relief for PHAs.                  to the family. Accordingly, HUD
                                             comments on whether the briefing                        With the change, PHAs will not have to                modifies § 982.301(b)(11), to replace the
                                             should be revised to highlight the                      determine which families live in high-                current reference to ‘‘other parties
                                             factors and trade-offs a family should                  poverty census tracts to determine who                known to the PHA’’ for ‘‘other resources
                                             consider when leasing a unit with                       needs the additional briefing. In this                (such as newspapers, organizations, and
                                             voucher assistance. These factors                       regard, a commenter wrote that most                   online search tools) known to the PHA’’
                                             include, but are not limited to:                        PHAs already provide the same                         that may assist the family in locating a
                                             employment opportunities; safety,                       information regardless of where the                   unit, and to provide that the list of
                                             health and environmental amenities;                     family lives.                                         landlords or other resources covers
                                             public transportation; the quality of                      HUD determined that information on
                                                                                                                                                           areas outside of poverty or minority
                                             schools; access to social services; the                 how portability works should be
                                             quality of housing; and proximity to                    provided during the briefing and as part              concentration.
                                             family and friends. Comments were also                  of the information packet to every                       Comment: Allow a family to select the
                                             solicited on whether information on the                 family, not just those who are eligible to            receiving PHA. HUD solicited comments
                                             benefits of living in low-poverty census                move under portability. Accordingly,                  on whether a family should have the
                                             tracts should be provided to all families               HUD revised the regulation at                         option to select the receiving PHA when
                                             selected to participate in the HCV                      § 982.301(a)(2) and § 982.301(b)(4). HUD              more than one PHA has jurisdiction
                                             program, and not just those families                    is also revising some of the required                 over the area to which the family wishes
                                             living in high-poverty census tracts, as                content of the family briefings related to            to move. Under the codified HCV
                                             is provided in the codified regulation.                 portability in this final rule. In addition           program regulations, the initial PHA
                                             The majority of commenters expressed                    to an explanation of how portability                  selects the receiving PHA for the porting
                                             opposition to expanding the briefing                    works, the briefing should also include               family. The majority of commenters
                                             requirements, stating that the existing                 information on how portability may                    responding to this solicitation
                                             briefing requirements are already                       affect the family’s assistance through                supported HUD’s proposal to allow
                                             complex and any expansion would                         rescreening, changes in subsidy                       families to select the receiving PHA.
                                             increase administrative burden. Several                 standards and payment standards, and                  Other commenters wrote that it would
                                             commenters wrote that the requirements                  any other elements of the portability                 be burdensome for participants to have
                                             of the family briefings are already                     process that may affect the family’s                  to review sometimes dozens of PHAs’
                                             covered under the Section 8                             assistance.                                           information. These commenters
                                             Management Assessment Program                              Comment: Providing list of landlords.
                                                                                                                                                           suggested that HUD should maintain a
                                             indicator on expanding housing                          HUD solicited comments on whether to
                                                                                                                                                           national register of HCV program
                                             opportunities and deconcentration.                      continue requiring PHAs to provide
                                                                                                                                                           contacts for voucher participants, if the
                                                HUD Response: HUD has determined                     families with a list of landlords or other
                                             that providing information about the                    parties known to the PHA who may be                   policy were to be implemented.
                                             factors the family should consider when                 willing to lease a unit to the family, and               HUD Response: HUD determined that
                                             determining where to lease a unit with                  whether additional information on areas               families should be given the option to
                                             voucher assistance will only be required                of opportunity or neighborhoods would                 select the receiving PHA when there is
                                             as part of the briefing should HUD make                 be beneficial for families. The majority              more than one PHA that has jurisdiction
                                             such information available to PHAs for                  of commenters responding to this                      over the area where the family wishes
                                             distribution. If required, PHAs are to                  solicitation of comments were PHAs                    to lease a unit. As stated in the proposed
                                             provide such information as part of the                 that supported the provision of a list of             rule, giving such choice to families
                                             oral briefing and the information packet                landlords. These commenters stated that               allows families to select receiving PHAs
                                             provided to families selected to                        such lists may be extremely helpful to                that best meet their needs. While HUD
                                             participate in the program. HUD                         voucher participants who are seeking                  understands that in certain cases it may
                                             therefore revises the regulation at                     housing and may not be aware of local                 be burdensome for the family to select
                                             § 982.301 accordingly.                                  housing opportunities. Some                           a receiving PHA, this change does not
                                                HUD has also determined that an                      commenters suggested that providing                   preclude a family from seeking
                                             explanation of the benefits of living in                the list to voucher participants should               assistance from the initial PHA in
                                             low-poverty census tracts should be                     be voluntary. A minority of commenters                selecting the receiving PHA if the family
                                             provided to all families, not just those                expressed concern that such lists may                 so chooses. The final rule, therefore,
                                             families living in high-poverty census                  result in steering families to high-                  provides that it will be the
                                             tracts. This explanation of benefits                    poverty and racially concentrated areas,              responsibility of the initial PHA to
                                             should also be included in the                          and that PHAs should be required to                   inform the family of the PHAs that serve
                                             information packet provided to families                 assess such lists to ensure they do not               the area and provide the family with the
                                             selected to participate in the HCV                      steer such families.
                                                                                                                                                           contact information for those PHAs. The
                                             program.                                                   HUD Response: HUD agrees that such
                                                In making this determination HUD                     written references could be essential to              initial PHA is not required to provide
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                                             considered the effect on both families                  a successful housing search, particularly             information of the options or services
                                             and PHAs. While families who already                    to families who are moving under                      that each PHA may offer.
                                             live in low-poverty census tracts may be                portability and may not be familiar with                 Accordingly, HUD is revising
                                             aware of the benefits of living in such                 the new jurisdiction. HUD also agrees                 § 982.355(b) to clarify that the family
                                             areas, not all families may have such                   that PHAs that choose to maintain such                has the option to select the receiving
                                             awareness, and HUD does not see any                     lists should be mindful of the need to                PHA.


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                                             50570            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             VI. Other Public Comments                               stalking the protections afforded under               Several commenters also wrote that
                                                Comment: Limit liability for families                the Violence Against Women Act                        delays in payment by the initial PHA to
                                             to move with portability. Several                       (VAWA) as reflected in HUD’s                          a receiving PHA are a burden. They
                                             commenters suggested that HUD adopt                     regulations (24 CFR part 5, subpart L).               suggested that HUD should impose a
                                             qualifying criteria (such as families                   These requirements include providing                  firm deadline by which the initial PHA
                                             moving for educational or employment                    the victim with a notification of his or              must pay its bills or establish other
                                             opportunities, or families in flight of                 her rights under VAWA (24 CFR                         sanctions or tools for a PHA to use for
                                             domestic violence) for moves under                      5.2005). PHAs have the option and are                 chronic late-payers. Commenters also
                                             portability to ensure that families have                encouraged to provide the victim with                 suggested that HUD develop a program
                                                                                                     contact information for supportive                    to be used by all PHAs in tracking
                                             a good reason to move. Other
                                                                                                     services for victims of abuse. At a                   portability payments.
                                             commenters suggested limiting the
                                                                                                     minimum, PHAs are encouraged to                          HUD Response: Prior to this final rule,
                                             number of times a family may move to                                                                          a receiving PHA would be paid 80
                                                                                                     provide the number for the National
                                             one move per year. Another commenter                                                                          percent of the initial PHA’s
                                                                                                     Domestic Violence Hotline (1–800–799–
                                             suggested that HUD limit the percentage                                                                       administrative fees. The March 28,
                                                                                                     SAFE (7233)) or the National Sexual
                                             of portability moves a receiving PHA                                                                          2012, rule proposed and this final rule
                                                                                                     Assault Hotline (1–800–656–HOPE
                                             must handle at a time.                                                                                        revises the administrative fee amount
                                                                                                     (4673)) to victims. Victims who call
                                                HUD Response: There are provisions                                                                         that can be billed to the initial PHA to
                                                                                                     these numbers may be able to locate
                                             already in place that allow PHAs to                                                                           the lesser of the amount currently
                                                                                                     supportive services in their area.
                                             manage family moves. For example,                          Comment: Exempt small PHAs from                    provided in the codified regulation (80
                                             current regulation at § 982.314(c)                      portability requirements. Several                     percent of the initial PHA’s ongoing
                                             provides that the PHA may establish                     commenters wrote that portability                     administrative fee or 100 percent of the
                                             policies that prohibit any move during                  should not apply to participants in                   receiving PHA’s administrative fee).
                                             the initial lease term, and prohibits                   small PHAs’ programs. The commenters                  Under this rule, a receiving PHA cannot
                                             more than one move by the family                        pointed out that a small PHA often has                bill for more than the administrative fee
                                             during any 1-year period, either within                 to pay a significantly higher cost for                it would otherwise receive for its own
                                             the PHA’s jurisdiction or through                       vouchers that port to higher-cost areas               program, regardless of whether the
                                             portability. Moreover, receiving PHAs                   than the small PHA would pay for                      initial PHA’s administrative fee is
                                             may always choose to absorb into its                    vouchers in their own jurisdiction. This              higher than the receiving PHA’s
                                             voucher program a participant who has                   higher cost limits the small PHA’s                    administrative fee. Prorations applicable
                                             moved under portability, provided that                  ability to lease its own vouchers and                 to an initial PHA’s administrative fees
                                             the receiving PHA has funding available                 serve families in its jurisdiction.                   due to an appropriations act that does
                                             to do so.                                                  HUD Response: Since portability is                 not fully fund administrative-fee
                                                Comment: PHAs should be required to                  authorized by statute, small PHAs                     eligibility will apply to those amounts.
                                             remind families they may move with                      cannot be exempted from allowing                      Therefore, the receiving PHA cannot bill
                                             portability. Some commenters suggested                  eligible families to move. Furthermore,               and receive more in administrative fees
                                             that PHAs should be required to actively                HUD believes that portability is a key                for a portability voucher than it would
                                             remind families that they may move                      feature of the HCV program and families               receive for its own vouchers, unless
                                             using the HCV portability process.                      should not be denied the opportunity to               both PHAs have agreed on a different
                                             Specifically, the commenters suggested                  move to other jurisdictions based on the              amount of reimbursement.
                                             that PHAs should be required to remind                  size of the administering PHA. With                      As noted earlier in this preamble,
                                             families at their annual recertification                regard to the cost impact, moves to                   HUD already imposes a firm deadline
                                             that they may move to other                             higher-cost areas can impact the PHAs’                on portability billings and provides
                                             jurisdictions with continued voucher                    ability to serve families from its waiting            mechanisms that the receiving PHA may
                                             assistance.                                             list. However, it is noted that these                 use in cases where the initial PHA fails
                                                HUD Response: HUD’s regulation at                    higher costs are taken into consideration             to comply with the initial and
                                             § 982.301(a) and (b) provides for a                     in determining the PHA’s renewal                      subsequent billing due dates. (See
                                             family briefing and for an information                  eligibility under the HCV program.                    Section 8 of Notice PIH 2012–42,
                                             packet to be given to the family when                   Furthermore, the appropriations act                   Housing Choice Voucher Family Moves
                                             the family first participates in the                    typically provides that the higher costs              with Continued Assistance.)
                                             voucher program. As provided in this                    of portability are an eligible category for              Comment: HUD should present data
                                             final rule, every family must receive a                 set-aside funding that is used to adjust              to define portability success for voucher-
                                             briefing, and during such briefing, must                a PHA’s renewal funding. Finally, as                  assisted households. Commenters
                                             be given information on how portability                 discussed in the preamble of this final               suggested that the use of data to define
                                             works. HUD finds this initial briefing to               rule, HUD has strived to clarify the                  portability success would be beneficial
                                             be sufficient and declines to require                   portability process and thus reduce                   for stakeholders to more fully comment
                                             PHAs to remind families about                           burden for PHAs.                                      on the proposed rule. A commenter
                                             portability at other times.                                Comment: Concerns about billing for                suggested that American Community
                                                Comment: Provide additional support                  portability vouchers. Several                         Survey data could be used, in
                                             for victims of domestic violence.                       commenters wrote that the rule                        conjunction with HUD data, to provide
                                             Commenters wrote that victims of                        encourages billing the initial PHA, but               an overlay of assisted and unassisted
                                             domestic violence need additional                       should instead encourage absorption of                households to determine at each income
                                                                                                     vouchers by the receiving PHA. The                    quintile, how many households move
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                                             support, beyond briefings. The
                                             commenters were supportive of the                       commenters wrote that if a receiving                  and how often they move within their
                                             effectiveness of transitional housing and               PHA can receive 100 percent of its fee                existing city and county, outside of their
                                             briefing residents on such services.                    for a billed incoming voucher and only                county, or outside of their State. The
                                                HUD Response: PHAs are required to                   80 percent of its fee for its own voucher,            commenter further wrote that such an
                                             offer victims of domestic violence,                     a PHA would have a strong incentive to                analysis may help show that a high
                                             dating violence, sexual assault, and                    bill rather than absorb the voucher.                  percentage of mobility moves results in


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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                         50571

                                             voucher-assisted households relocating                  families have the opportunity to relocate             billing arrangement between the initial
                                             to neighborhoods of opportunity or                      in order to pursue increased or new                   PHA and receiving PHA, the initial PHA
                                             deconcentrated neighborhoods.                           employment opportunities or to gain                   had to pay the receiving PHA 80 percent
                                               HUD Response: HUD believes that                       access to preferred schools for their                 of its administrative fee for each month
                                             portability success can be defined in a                 children. An efficient portability                    that the family received assistance at the
                                             multitude of ways and is unclear how                    process also helps ensure that victims of             receiving PHA, unless the PHAs
                                             the analysis described by the                           domestic violence and stalking have                   mutually agreed to a different billing
                                             commenter would successfully indicate                   access to the resources necessary to                  amount. Removal of potential barriers to
                                             the effects of portability on families.                 relocate to a safe, stable home away                  mobility is expected to increase the
                                             While HUD appreciates the suggestion                    from an abuser.                                       number of portability vouchers and,
                                             for additional research into portability                   Moves to areas with relatively low
                                                                                                                                                           thus, increase the amount of
                                             success, the intent of this final rule is to            concentrations of neighborhood poverty
                                                                                                                                                           administrative fee transfers between
                                             simplify the administration of                          have important benefits to housing
                                                                                                     choice voucher families. Research from                PHAs.
                                             portability issues within the voucher
                                             program. HUD believes this analysis is                  HUD’s Moving to Opportunity (MTO)                        The final rule would set the
                                             not necessary for successful                            demonstration 3 showed that moving                    maximum amount that the initial PHA
                                             implementation of the proposed                          from housing developments in high-                    is required to pay at 100 percent of the
                                             reforms.                                                poverty neighborhoods to private                      receiving PHA’s administrative fee rate.
                                                                                                     housing in lower-poverty                              In other words, the initial PHA would
                                             VII. Findings and Certifications                        neighborhoods had strong positive                     reimburse the receiving PHA for the
                                             Regulatory Review—Executive Orders                      effects on girls’ and adults’ mental                  lesser of: (1) 80 percent of the initial
                                             12866 and 13563                                         health, as well as on adults’ physical                PHA’s ongoing fee or (2) the full amount
                                                                                                     health. Under the Gautreaux                           of the receiving PHA’s administrative
                                                Under Executive Order 12866                          desegregation program in Chicago,4
                                             (Regulatory Planning and Review), a                                                                           fee. This change eliminates the
                                                                                                     children and adults who moved with                    incentive for a receiving PHA with a
                                             determination must be made whether a                    HCV assistance to middle-income
                                             regulatory action is significant and                                                                          lower administrative fee to bill an initial
                                                                                                     suburbs appear to have experienced                    PHA with a higher administrative fee in
                                             therefore subject to review by the Office               educational gains compared to families
                                             of Management and Budget (OMB) in                                                                             order to receive a higher administrative
                                                                                                     that remained in urban or higher-                     fee than it would normally earn from
                                             accordance with the requirements of the                 poverty neighborhoods. It is expected
                                             order. Executive Order 13563                                                                                  HUD. This action should reduce
                                                                                                     that the rule will remove potential                   portability billings for those PHAs for
                                             (Improving Regulations and Regulatory                   barriers to mobility and will increase
                                             Review) directs executive agencies to                                                                         whom 80 percent of the initial PHA’s
                                                                                                     the number of families that may move
                                             analyze regulations that are ‘‘outmoded,                                                                      fee is more than 100 percent of their
                                                                                                     to areas of opportunities. Some research
                                             ineffective, insufficient, or excessively                                                                     own administrative fee. For example,
                                                                                                     indicates that families often use their
                                             burdensome, and to modify, streamline,                                                                        assume that a receiving PHA’s
                                                                                                     vouchers to move to better
                                             expand, or repeal them in accordance                    opportunities, including employment                   administrative fee is $60. Prior to this
                                             with what has been learned.’’ Executive                 opportunities.                                        rule, if a family moves to the receiving
                                             Order 13563 also directs that, where                       2. Costs of rule. HUD expects that                 PHA’s jurisdiction from an initial PHA
                                             relevant, feasible, and consistent with                 portability billing arrangements in this              that receives $100 in administrative fees
                                             regulatory objectives, and to the extent                rule will place only a slightly additional            for a housing voucher, the receiving
                                             permitted by law, agencies are to                       administrative burden on PHAs.                        PHA may bill the initial PHA for $80,
                                             identify and consider regulatory                        Portability may add to the cost of the                which is $20 more than the PHA would
                                             approaches that reduce burdens and                      HCV program through higher HAP costs,                 earn if it simply absorbed the voucher.
                                             maintain flexibility and freedom of                     but the fiscal year (FY) 2015                         Under the final rule, the receiving PHA
                                             choice for the public. This rule was                    appropriations act provides a set-aside               will receive $60 regardless of whether
                                             determined to be a ‘‘significant                        of up to $120 million from HCV renewal                the receiving PHA bills the initial PHA
                                             regulatory action’’ as defined in section               funds to allow HUD to provide PHAs                    or absorbs the family into its own
                                             3(f) of Executive Order 12866 (although                 with additional renewal funding under                 program.
                                             not an economically significant                         certain circumstances. One of the                        The full economic analysis is
                                             regulatory action, as provided under                    eligible categories permitted under the               available for review at
                                             section 3(f)(1) of the Executive order).                appropriations act is for increased costs
                                                This final rule amends HUD’s                                                                               www.regulations.gov. The docket file for
                                                                                                     resulting from unforeseen circumstances               this rule is available for public
                                             regulations governing portability in the                and portability. HUD is in the process
                                             HCV program. These regulatory changes                                                                         inspection in the Regulations Division,
                                                                                                     of receiving the FY 2015 set-aside                    Office of General Counsel, Department
                                             streamline the portability process and                  applications; however, an average of $23
                                             enable initial and receiving PHAs to                                                                          of Housing and Urban Development,
                                                                                                     million has been found eligible in the                451 7th Street SW., Room 10276,
                                             better serve families and expand                        past for PHAs for portability
                                             housing opportunities. HUD’s analysis                                                                         Washington, DC 20410–0500. Due to
                                                                                                     adjustments.                                          security measures at the HUD
                                             determined that these regulatory                           4. Administrative Fee. Prior to this
                                             amendments will not have an economic                                                                          Headquarters building, please schedule
                                                                                                     rule, for a voucher in a portability
                                             effect of greater than $100 million but                                                                       an appointment to review the docket file
                                                                                                                                                           by calling the Regulations Division at
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                                             would yield certain nontangible                           3 See: http://www.huduser.org/publications/pdf/

                                             benefits. The findings of HUD’s analysis                MTOFHD_fullreport_v2.pdf.                             202–402–3055 (this is not a toll-free
                                             are summarized below, and addressed                       4 The Gatreaux desegregation program is a           number). Individuals with speech or
                                             in more detail in the accompanying                      housing desegregation program initiated by court      hearing impairments may access this
                                                                                                     order. In a consent decree, the court ordered the     number via TTY by calling the Federal
                                             regulatory analysis:                                    Chicago Housing Authority to provide scattered-site
                                                1. Benefits of final rule. The HCV                   housing for public housing residents residing in      Relay Service at 800–877–8339 (this is
                                             portability policy helps ensure that                    poverty concentrated areas.                           a toll-free number).


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                                             50572            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             Information Collection Requirements                     will be subject to the rule. Since                    ■  2. In § 982.4, in paragraph (b), revise
                                               The information collection                            portability is authorized by statute,                 the definitions of ‘‘Absorption’’ and
                                             requirements in the proposed rule were                  small PHAs administering the HCV                      ‘‘Suspension’’ to read as follows:
                                             submitted to OMB under the Paperwork                    program cannot be exempt from
                                                                                                     allowing eligible families to move, and               § 982.4    Definitions.
                                             Reduction Act of 1995 (44 U.S.C. 3501–
                                                                                                     HUD has strived to reduce burden for all              *     *     *      *    *
                                             3520). In accordance with the
                                                                                                     PHAs. Therefore, while this final rule                  (b) * * *
                                             Paperwork Reduction Act, an agency                                                                              Absorption. For purposes of subpart
                                             may not conduct or sponsor, and a                       will impact these PHAs, the impact will
                                                                                                     not be significant. As stated previously              H, the point at which a receiving PHA
                                             person is not required to respond to, a
                                                                                                     in this preamble, through the                         starts making assistance payments with
                                             collection of information, unless the
                                                                                                     amendments to the HCV regulations                     funding under its consolidated ACC,
                                             collection displays a currently valid
                                                                                                     provided in this rule, HUD will reduce                rather than billing, the initial PHA.
                                             OMB control number. The information
                                             collection requirements of this rule was                the administrative burden of portability              *     *     *      *    *
                                             assigned this OMB Control Number                        for both PHAs and families, reduce                      Suspension. The term on the family’s
                                             2577–0169.                                              portability billing arrangements between              voucher stops from the date that the
                                                                                                     PHAs, and ensure maximum family                       family submits a request for PHA
                                             Unfunded Mandates Reform Act                            choice in locating suitable housing.                  approval of the tenancy, until the date
                                             (UMRA)                                                  HUD also removed the proposed                         the PHA notifies the family in writing
                                               Title II of the Unfunded Mandates                     requirement for mandatory absorption                  whether the request has been approved
                                             Reform Act of 1995 (2 U.S.C. 1531–                      of portability vouchers by the receiving              or denied.
                                             1538) (UMRA) establishes requirements                   PHA that was in the proposed rule.                    *     *     *      *    *
                                             for Federal agencies to assess the effects              Through this final rule, HUD strives to               ■ 3. In § 982.54, revise paragraphs (d)(2)
                                             of their regulatory actions on State,                   clarify the portability process and                   and (19) to read as follows:
                                             local, and tribal governments, and the                  reduce administrative burden for all
                                             private sector. This final rule does not                PHAs, large or small. As explained more               § 982.54    Administrative plan.
                                             impose any federal mandates on any                      fully above in the ‘‘Executive Order                  *      *     *      *      *
                                             State, local, or tribal government or the               12866 and 13563’’ section of this                        (d) * * *
                                             private sector within the meaning of                    preamble, the benefits of the regulatory                 (2) Issuing or denying vouchers,
                                             UMRA.                                                   changes will largely outweigh the                     including PHA policy governing the
                                                                                                     administrative and compliance costs to                voucher term and any extensions of the
                                             Executive Order 13132, Federalism
                                                                                                     PHAs. Accordingly, this rule will not                 voucher term. If the PHA decides to
                                                Executive Order 13132 (entitled                      have a significant economic impact on                 allow extensions of the voucher term,
                                             ‘‘Federalism’’) prohibits an agency from                a substantial number of small entities.               the PHA administrative plan must
                                             publishing any rule that has federalism                                                                       describe how the PHA determines
                                             implications if the rule either imposes                 Environmental Impact                                  whether to grant extensions, and how
                                             substantial direct compliance costs on                                                                        the PHA determines the length of any
                                             State and local governments and is not                     This rule does not direct, provide for
                                                                                                     assistance or loan and mortgage                       extension.
                                             required by statute or the rule preempts
                                                                                                     insurance for, or otherwise govern or                 *      *     *      *      *
                                             State law, unless the agency meets the                                                                           (19) Restrictions, if any, on the
                                             consultation and funding requirements                   regulate, real property acquisition,
                                                                                                     disposition, leasing, rehabilitation,                 number of moves by a participant family
                                             of section 6 of the Executive order. This
                                                                                                     alteration, demolition, or new                        (see § 982.354(c));
                                             final rule does not have federalism
                                             implications and would not impose                       construction, or establish, revise, or                *      *     *      *      *
                                             substantial direct compliance costs on                  provide for standards for construction or             ■ 4. In § 982.301, revise paragraphs
                                             State and local governments or preempt                  construction materials, manufactured                  (a)(2), (a)(3), (b)(1), (b)(4), (b)(9), and
                                             State law within the meaning of the                     housing, or occupancy. Accordingly,                   (b)(11) to read as follows:
                                             Executive order.                                        under 24 CFR 50.19(c)(1), this rule is
                                                                                                     categorically excluded from                           § 982.301    Information when family is
                                             Regulatory Flexibility Act                              environmental review under the                        selected.
                                                The Regulatory Flexibility Act (5                    National Environmental Policy Act of                     (a) * * *
                                             U.S.C. 605(b)) generally requires an                    1969 (42 U.S.C. 4321).                                   (2) An explanation of how portability
                                             agency to conduct a regulatory                                                                                works. The PHA may not discourage the
                                                                                                     List of Subjects in 24 CFR Part 982                   family from choosing to live anywhere
                                             flexibility analysis of any rule subject to
                                             notice and comment rulemaking                                                                                 in the PHA jurisdiction, or outside the
                                                                                                       Grant programs-housing and
                                             requirements, unless the agency certifies                                                                     PHA jurisdiction under portability
                                                                                                     community development, Grant
                                             that the rule will not have a significant                                                                     procedures, unless otherwise expressly
                                                                                                     programs-Indians, Indians, Public
                                             economic impact on a substantial                                                                              authorized by statute, regulation, PIH
                                                                                                     housing, Rent subsidies, Reporting and
                                             number of small entities. This final rule                                                                     Notice, or court order. The family must
                                                                                                     recordkeeping requirements.
                                             is solely concerned with the portability                                                                      be informed of how portability may
                                             feature of the voucher program. There                     Accordingly, HUD amends 24 CFR                      affect the family’s assistance through
                                             currently are approximately 739 small                   part 982, as follows:                                 screening, subsidy standards, payment
                                             PHAs (i.e., PHAs with less than 250                                                                           standards, and any other elements of the
                                                                                                     PART 982—SECTION 8 TENANT-                            portability process which may affect the
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                                             public housing units or vouchers) 5 that
                                                                                                     BASED ASSISTANCE: HOUSING                             family’s assistance.
                                               5 The number of 739 PHAs includes HCV-only
                                                                                                     CHOICE VOUCHER PROGRAM                                   (3) The briefing must also explain the
                                             PHAs and PHAs with combined HCV-public                                                                        advantages of areas that do not have a
                                             housing portfolios. This number does not include        ■ 1. The authority citation for 24 CFR                high concentration of low-income
                                             public housing-only PHAs, which is the largest          part 982 continues to read as follows:
                                             category of small PHAs but which are not affected
                                                                                                                                                           families.
                                             by this rule.                                               Authority: 42 U.S.C. 1437f and 3535(d).           *      *    *     *     *


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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                         50573

                                                (b) * * *                                            jurisdiction under portability                        § 982.355 Portability: Administration by
                                                (1) The term of the voucher, voucher                 procedures.                                           initial and receiving PHA.
                                             suspensions, and PHA policy on any                         (d) * * *                                             (a) General. When a family moves
                                             extensions of the term. If the PHA                         (2) If a family is a participant in the            under portability (in accordance with
                                             allows extensions, the packet must                      initial PHA’s voucher program, income                 § 982.353(b)) to an area outside the
                                             explain how the family can request an                   eligibility is not redetermined when the              initial PHA jurisdiction, the receiving
                                             extension;                                              family moves to the receiving PHA                     PHA must administer assistance for the
                                             *      *     *      *    *                              program under portability procedures.                 family if a PHA with a HCV program has
                                                (4) Where the family may lease a unit                                                                      jurisdiction in the area where the unit
                                                                                                     *      *      *     *     *                           is located.
                                             and an explanation of how portability
                                                                                                        (e) Freedom of choice. The PHA may                    (b) Requirement to administer
                                             works, including information on how
                                             portability may affect the family’s                     not directly or indirectly reduce the                 assistance. A receiving PHA cannot
                                             assistance through screening, subsidy                   family’s opportunity to select among                  refuse to assist incoming portable
                                             standards, payment standards, and any                   available units, except as provided in                families or direct them to another
                                             other elements of the portability process               paragraph (a) of this section, or                     neighboring PHA for assistance. If there
                                             which may affect the family’s                           elsewhere in this part 982 (e.g.,                     is more than one such PHA, the initial
                                             assistance.                                             prohibition on the use of ineligible                  PHA provides the family with the
                                                                                                     housing, housing not meeting HQS, or                  contact information for the receiving
                                             *      *     *      *    *                              housing for which the rent to owner
                                                (9) Materials (e.g., brochures) on how                                                                     PHAs that serve the area, and the family
                                                                                                     exceeds a reasonable rent). However, the              selects the receiving PHA. The family
                                             to select a unit and any additional
                                                                                                     PHA must provide families the                         must inform the initial PHA which PHA
                                             information on selecting a unit that
                                                                                                     information required in § 982.301 for                 it has selected as the receiving PHA. In
                                             HUD provides.
                                                                                                     both the oral briefing and the                        cases where the family prefers not to
                                             *      *     *      *    *                              information packet to ensure that they
                                                (11) A list of landlords known to the                                                                      select the receiving PHA, the initial
                                                                                                     have the information they need to make                PHA selects the receiving PHA on
                                             PHA who may be willing to lease a unit                  an informed decision on their housing
                                             to the family or other resources (e.g.,                                                                       behalf of the family. HUD may
                                                                                                     choice.                                               determine in certain instances that a
                                             newspapers, organizations, online
                                             search tools) known to the PHA that                     ■ 8. Amend newly designated § 982.354                 PHA is not required to accept incoming
                                             may assist the family in locating a unit.               as follows:                                           portable families, such as a PHA in a
                                             PHAs must ensure that the list of                       ■ a. Revise paragraphs (c)(1) and (2);                declared disaster area. However, the
                                             landlords or other resources covers                     ■ b. Remove paragraphs (c)(3) and                     PHA must have approval in writing
                                             areas outside of poverty or minority                    (d)(1);                                               from HUD before refusing any incoming
                                             concentration.                                          ■ c. Redesignate paragraph (d)(2) as
                                                                                                                                                           portable families.
                                                                                                                                                              (c) Portability procedures. The
                                             *      *     *      *    *                              paragraph (d); and
                                                                                                                                                           following portability procedures must
                                             ■ 5. In § 982.303, revise paragraph (c) to              ■ d. Revise paragraph (e)(1).
                                                                                                                                                           be followed:
                                             read as follows:                                           The revisions read as follows:                        (1) When the family decides to use the
                                                                                                     § 982.354 Move with continued tenant-                 voucher outside of the PHA jurisdiction,
                                             § 982.303   Term of voucher.
                                                                                                     based assistance.                                     the family must notify the initial PHA
                                             *     *     *     *    *                                                                                      of its desire to relocate and must specify
                                               (c) Suspension of term. The PHA must                  *       *    *    *     *
                                                                                                                                                           the location where it wants to live.
                                             provide for suspension of the initial or                   (c) How many moves. (1) A                             (2) The initial PHA must determine
                                             any extended term of the voucher from                   participant family may move with                      the family’s eligibility to move in
                                             the date that the family submits a                      continued assistance under the program,               accordance with §§ 982.353 and
                                             request for PHA approval of the tenancy                 either inside the PHA jurisdiction, or                982.354.
                                             until the date the PHA notifies the                     under the portability procedures (See                    (3) Once the receiving PHA is
                                             family in writing whether the request                   § 982.353) in accordance with the PHA’s               determined in accordance with
                                             has been approved or denied.                            policies.                                             paragraph (b) of this section, the initial
                                             *     *     *     *    *                                   (2) Consistent with applicable civil               PHA must contact the receiving PHA,
                                                                                                     rights laws and regulations, the PHA                  via email or other confirmed delivery
                                             § 982.314   [Redesignated as § 982.354]                 may establish policies that:                          method, prior to approving the family’s
                                             ■ 6. Redesignate § 982.314 as § 982.354.                   (i) Prohibit any move by the family                request to move in order to determine
                                             ■ 7. Section 982.353 is amended as                      during the initial lease term; and                    whether the voucher will be absorbed or
                                             follows:                                                   (ii) Prohibit more than one move by                billed by the receiving PHA. The
                                             ■ a. Remove the word ‘‘or’’ from                                                                              receiving PHA must advise the initial
                                                                                                     the family during any one-year period.
                                             paragraph (c)(1) and in its place add the                                                                     PHA in writing, via email or other
                                             word ‘‘nor’’;                                           *       *    *    *     *
                                                                                                        (e) When the PHA may deny                          confirmed delivery method, of its
                                             ■ b. Revise paragraphs (c)(3) and (d)(2);
                                                                                                     permission to move. (1) The PHA may                   decision.
                                             ■ c. Remove paragraph (d)(3); and
                                                                                                     deny permission to move if the PHA                       (4) If the receiving PHA notifies the
                                             ■ d. Remove paragraph (e), redesignate
                                                                                                     does not have sufficient funding for                  initial PHA that it will absorb the
                                             paragraph (f) as paragraph (e), and
                                                                                                     continued assistance. The PHA must                    voucher, the receiving PHA cannot
                                             revise newly redesignated paragraph (e).
                                               The revisions read as follows:                        provide written notification to the local             reverse its decision at a later date
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                                                                                                     HUD Office within 10 business days of                 without consent of the initial PHA.
                                             § 982.353 Where family can lease a unit                                                                          (5) If the receiving PHA will bill the
                                                                                                     determining it is necessary to deny
                                             with tenant-based assistance.                                                                                 initial PHA for the portability voucher
                                                                                                     moves to a higher-cost unit based on
                                             *     *      *     *    *                                                                                     and the cost of the HAP will increase
                                                                                                     insufficient funding.
                                               (c) * * *                                                                                                   due to the move, the initial PHA may
                                               (3) If the initial PHA approves, the                  *       *    *    *     *                             deny the move if it does not have
                                             family may lease a unit outside the PHA                 ■ 9. Revise § 982.355 to read as follows:             sufficient funding for continued


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                                             50574            Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations

                                             assistance in accordance with § 982.354                    (14) Once the receiving PHA issues                 for the portable family. The amount of
                                             (e)(1).                                                 the portable family a voucher, the                    the housing assistance payment for a
                                                (6) If a billing arrangement is                      receiving PHA’s policies on extensions                portable family in the receiving PHA
                                             approved by the initial PHA or if the                   of the voucher term apply. The                        program is determined in the same
                                             voucher is to be absorbed by the                        receiving PHA must notify the initial                 manner as for other families in the
                                             receiving PHA, the initial PHA must                     PHA of any extensions granted to the                  receiving PHA program.
                                             issue the family a voucher to move, if                  term of the voucher.                                     (3) The initial PHA must promptly
                                             it has not already done so, and advise                     (15) The family must submit a request              reimburse the receiving PHA for the
                                             the family how to contact and request                   for tenancy approval to the receiving                 lesser of 80 percent of the initial PHA
                                             assistance from the receiving PHA.                      PHA during the term of the receiving                  ongoing administrative fee or 100
                                                (7) The initial PHA must promptly                    PHA voucher. As required in § 982.303,                percent of the receiving PHA’s ongoing
                                             notify the receiving PHA to expect the                  if the family submits a request for                   administrative fee for each program unit
                                             family. The initial PHA must give the                   tenancy approval during the term of the               under HAP contract on the first day of
                                             receiving PHA the form HUD–52665,                       voucher, the PHA must suspend the                     the month for which the receiving PHA
                                             the most recent form HUD 50058                          term of that voucher.                                 is billing the initial PHA under this
                                             (Family Report) for the family, and all                    (16) The receiving PHA must                        section. If administrative fees are
                                             related verification information.                       promptly notify the initial PHA if the                prorated for the HCV program, the
                                                (8) The family must promptly contact                 family has leased an eligible unit under              proration will apply to the amount of
                                             the receiving PHA in order to be                        the program, or if the family fails to                the administrative fee for which the
                                             informed of the receiving PHA’s                         submit a request for tenancy approval                 receiving PHA may bill under this
                                             procedures for incoming portable                        for an eligible unit within the term of               section (e.g., the receiving PHA may bill
                                             families and comply with these                          the voucher.                                          for the lesser of 80 percent of the initial
                                                                                                        (17) At any time, either the initial               PHA’s prorated ongoing administrative
                                             procedures. The family’s failure to
                                                                                                     PHA or the receiving PHA may make a                   fee or 100 percent of the receiving
                                             comply may result in denial or
                                                                                                     determination to deny or terminate                    PHA’s prorated ongoing administrative
                                             termination of the receiving PHA’s
                                                                                                     assistance to the family in accordance                fee). If both PHAs agree, the PHAs may
                                             voucher.
                                                                                                     with § 982.552 and 982.553.                           negotiate a different amount of
                                                (9) The receiving PHA does not                          (d) Absorption by the receiving PHA.
                                             redetermine eligibility for a participant                                                                     reimbursement.
                                                                                                     (1) If funding is available under the
                                             family. However, for a family that was                                                                           (4) When a portable family moves out
                                                                                                     consolidated ACC for the receiving
                                             not already receiving assistance in the                                                                       of the HCV program of a receiving PHA
                                                                                                     PHA’s HCV program, the receiving PHA
                                             PHA’s HCV program, the initial PHA                                                                            that has not absorbed the family, the
                                                                                                     may absorb the family into the receiving
                                             must determine whether the family is                                                                          PHA in the new jurisdiction to which
                                                                                                     PHA’s HCV program. After absorption,
                                             eligible for admission to the receiving                                                                       the family moves becomes the receiving
                                                                                                     the family is assisted with funds
                                             PHA’s HCV program. In determining                                                                             PHA, and the first receiving PHA is no
                                                                                                     available under the consolidated ACC
                                             income eligibility, the receiving PHA’s                                                                       longer required to provide assistance for
                                                                                                     for the receiving PHA’s HCV program.
                                             income limits are used by the initial                      (2) HUD may require that the                       the family.
                                             PHA.                                                    receiving PHA absorb all, or a portion                   (5) In administration of portability,
                                                (10) When a receiving PHA assists a                  of, incoming portable families. Under                 the initial PHA and the receiving PHA
                                             family under portability, administration                circumstances described in a notice                   must comply with financial procedures
                                             of the voucher must be in accordance                    published in the Federal Register, HUD                required by HUD, including the use of
                                             with the receiving PHA’s policies. This                 may determine that receiving PHAs, or                 HUD-required billing forms. The initial
                                             requirement also applies to policies of                 categories of receiving PHAs, should                  and receiving PHA must also comply
                                             Moving to Work agencies. The receiving                  absorb all or a portion of incoming                   with billing and payment deadlines
                                             PHA procedures and preferences for                      portable families. If HUD makes such a                under the financial procedures.
                                             selection among eligible applicants do                  determination, HUD will provide an                       (6) A PHA must manage the PHA HCV
                                             not apply to the family, and the                        opportunity for public comment, for a                 program in a manner that ensures that
                                             receiving PHA waiting list is not used.                 period of no less than 60 calendar days,              the PHA has the financial ability to
                                                (11) If the receiving PHA opts to                    on such policy and procedures. After                  provide assistance for families that
                                             conduct a new reexamination for a                       consideration of public comments, HUD                 move out of the PHA’s program under
                                             current participant family, the receiving               will publish a final notice in the Federal            the portability procedures, and that
                                             PHA may not delay issuing the family                    Register advising PHAs and the public                 have not been absorbed by the receiving
                                             a voucher or otherwise delay approval                   of HUD’s final determination on the                   PHA, as well as for families that remain
                                             of a unit.                                              subject of mandatory absorption of                    in the PHA’s program.
                                                (12) The receiving PHA must                          incoming portable families.                              (7) HUD may reduce the
                                             determine the family unit size for the                     (3) HUD may provide financial or                   administrative fee to an initial or
                                             family, and base its determination on                   nonfinancial incentives (or both) to                  receiving PHA if the PHA does not
                                             the subsidy standards of the receiving                  PHAs that absorb portability vouchers.                comply with HUD portability
                                             PHA.                                                       (e) Portability billing. (1) To cover              requirements.
                                                (13) The receiving PHA must issue a                  assistance for a portable family that was                (f) Portability funding. (1) HUD may
                                             voucher to the family. The term of the                  not absorbed in accordance with                       transfer units and funds for assistance to
                                             receiving PHA voucher may not expire                    paragraph (d) of this section, the                    portable families to the receiving PHA
                                             before 30 calendar days from the                                                                              from funds available under the initial
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                                                                                                     receiving PHA may bill the initial PHA
                                             expiration date of the initial PHA                      for housing assistance payments and                   PHA ACC.
                                             voucher. If the voucher expires before                  administrative fees.                                     (2) HUD may provide additional
                                             the family arrives at the receiving PHA,                   (2) The initial PHA must promptly                  funding (e.g., funds for incremental
                                             the receiving PHA must contact the                      reimburse the receiving PHA for the full              units) to the initial PHA for funds
                                             initial PHA to determine if it will                     amount of the housing assistance                      transferred to a receiving PHA for
                                             extend the voucher.                                     payments made by the receiving PHA                    portability purposes.


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                                                              Federal Register / Vol. 80, No. 161 / Thursday, August 20, 2015 / Rules and Regulations                                         50575

                                               (3) HUD may provide additional                        provide continued assistance. The PHA                 ‘‘SEARCH.’’ Click on ‘‘Open Docket
                                             funding (e.g., funds for incremental                    must provide written notification to the              Folder’’ on the line associated with this
                                             units) to the receiving PHA for                         local HUD Office within 10 business                   rulemaking. You may also visit the
                                             absorption of portable families.                        days of determining it is necessary to                Docket Management Facility in Room
                                               (4) HUD may require the receiving                     deny moves based on insufficient                      W12–140 on the ground floor of the
                                             PHA to absorb portable families.                        funding.                                              Department of Transportation West
                                               (g) Special purpose vouchers. (1) The                 *     *    *    *     *                               Building, 1200 New Jersey Avenue SE.,
                                             initial PHA must submit the codes used                                                                        Washington, DC 20590, between 9 a.m.
                                             for special purpose vouchers on the                     § 982.641    [Amended]                                and 5 p.m., Monday through Friday,
                                             form HUD–50058, Family Report, and                      ■  15. Section 982.641(b)(11) is amended              except Federal holidays.
                                             the receiving PHA must maintain the                     by removing the citation ‘‘§ 982.314’’                FOR FURTHER INFORMATION CONTACT: If
                                             codes on the Family Report, as long as                  and in its place adding the citation                  you have questions on this rule, contact
                                             the Receiving PHA chooses to bill the                   ‘‘§ 982.354.’’                                        Petty Officer Ian Fallon, Prevention
                                             initial PHA.                                                                                                  Department, Coast Guard Sector Long
                                                                                                       Dated: August 13, 2015.
                                               (2) Initial and receiving PHAs must                                                                         Island Sound, telephone (203) 468–
                                             administer special purpose vouchers,                    Jemine A. Bryon,
                                                                                                                                                           4565, email Ian.M.Fallon@uscg.mil. If
                                             such as the HUD-Veterans Affairs                        General Deputy Assistant Secretary for Public
                                                                                                     and Indian Housing.
                                                                                                                                                           you have questions on viewing or
                                             Supportive Housing vouchers, in                                                                               submitting material to the docket, call
                                             accordance with HUD-established                           Approved on August 13, 2015.
                                                                                                                                                           Cheryl Collins, Program Manager,
                                             policy in cases where HUD has                           Nani A. Coloretti,                                    Docket Operations, telephone (202)
                                             established alternative program                         Deputy Secretary.                                     366–9826.
                                             requirements of such special purpose                    [FR Doc. 2015–20551 Filed 8–19–15; 8:45 am]           SUPPLEMENTARY INFORMATION: On August
                                             vouchers.                                               BILLING CODE 4210–67–P                                13, 2015, the Coast Guard published in
                                             § 982.403   [Amended]                                                                                         the Federal Register a temporary final
                                                                                                                                                           rule establishing five special local
                                             ■  10. In § 982.403, paragraph (b)(3) is                DEPARTMENT OF HOMELAND                                regulations for marine events held in the
                                             amended by removing the citation                        SECURITY                                              Sector Long Island Sound Captain of the
                                             ‘‘§ 982.314’’ and in its place adding the                                                                     Port Zone (80 FR 48436). Four of the
                                             citation ‘‘§ 982.354.’’                                 Coast Guard                                           marine events have already taken place.
                                             § 982.551   [Amended]                                                                                         Inadvertently, the rule included an error
                                                                                                     33 CFR Part 100                                       in the date of the fifth special local
                                             ■  11. In § 982.551, paragraph (f) is                                                                         regulation established in support of the
                                             amended by removing the citation                        [Docket Number USCG–2015–0705]
                                                                                                                                                           ‘‘War Writers Campaign Kayak For
                                             ‘‘§ 982.314’’ and in its place adding the               RIN 1625–AA08                                         Cause’’ event.
                                             citation ‘‘§ 982.354.’’                                                                                          As stated in the Federal Register
                                             ■ 12. In § 982.554, revise paragraph                    Special Local Regulations; Marine                     publication of the temporary final rule,
                                             (c)(4) to read as follows:                              Events Held in the Sector Long Island                 the special local regulation for the ‘‘War
                                                                                                     Sound Captain of the Port Zone;                       Writers Campaign Kayak For Cause’’
                                             § 982.554   Informal review for applicant.              Correction                                            event would be enforced on August 28,
                                             *     *      *     *    *                                                                                     2015. Due to a clerical error, the
                                                                                                     AGENCY:  Coast Guard, DHS.
                                               (c) * * *                                                                                                   enforcement date was incorrect. The
                                               (4) A PHA determination not to                        ACTION: Temporary final rule;
                                                                                                     correction.                                           correct date for the special local
                                             approve an extension of the voucher                                                                           regulation in support of the ‘‘War
                                             term.                                                                                                         Writers Campaign Kayak For Cause’’
                                                                                                     SUMMARY:    On August 13, 2015, the Coast
                                             *     *      *     *    *                               Guard published in the Federal Register               event is August 23, 2015.
                                             ■ 13. In § 982.555, revise paragraph                    (80 FR 48436) a temporary final rule                     Shortly after publication of the
                                             (b)(4) to read as follows:                              establishing five special local                       temporary final rule in the Federal
                                                                                                     regulations for marine events held in the             Register, the Coast Guard became aware
                                             § 982.555   Informal hearing for participant.                                                                 of the error in the text relating to the
                                                                                                     Sector Long Island Sound Captain of the
                                             *      *     *     *    *                               Port Zone. Four of the marine events                  date. This notice corrects the error by
                                                (b) * * *                                            have already taken place. Inadvertently,              publishing the correct date of the
                                                (4) A PHA determination not to                       this rule included an error in the date               special local regulation, August 23,
                                             approve an extension of the voucher                     of the fifth special local regulation                 2015.
                                             term.                                                   established in support of the ‘‘War                   List of Subjects in 33 CFR Part 100
                                             *      *     *     *    *                               Writers Campaign Kayak For Cause’’
                                             ■ 14. In § 982.637, revise paragraph                    event. This document corrects that                      Marine safety, Navigation (water),
                                             (c)(1) to read as follows:                              error.                                                Reporting and record keeping
                                                                                                                                                           requirements, Waterways.
                                             § 982.637 Homeownership option: Move                    DATES:This rule is effective from
                                                                                                                                                             For the reasons discussed in the
                                             with continued tenant-based assistance.                 August 20, 2015 through August 23,
                                                                                                                                                           preamble, the Coast Guard amends 33
                                             *     *     *     *    *                                2015.
                                                                                                                                                           CFR part 100 as follows:
                                               (c) * * *                                                          Documents mentioned in
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                                                                                                     ADDRESSES:
                                               (1) Lack of funding to provide                        this preamble are part of Docket Number               PART 100—SAFETY OF LIFE ON
                                             continued assistance. The PHA may                       USCG–2015–0705. To view documents                     NAVIGABLE WATERS
                                             deny permission to move with                            mentioned in this preamble as being
                                             continued rental or homeownership                       available in the docket, go to http://                ■ 1. The authority citation for part 100
                                             assistance if the PHA determines that it                www.regulations.gov, type the docket                  continues to read as follows:
                                             does not have sufficient funding to                     number in the ‘‘SEARCH’’ box and click                    Authority: 33 U.S.C. 1233.



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Document Created: 2015-12-15 11:08:46
Document Modified: 2015-12-15 11:08:46
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.
DatesEffective: September 21, 2015.
ContactBecky Primeaux, Director, Housing Voucher and Management Operations Division, Office of Housing Choice Vouchers, Office of Public and Indian Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 4216, Washington, DC 20410-8000, telephone number 202-708-0477 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number through TTY by calling the Federal Relay Service at 800-877-8339 (this is a toll-free number).
FR Citation80 FR 50564 
RIN Number2577-AC86
CFR AssociatedGrant Programs-Housing and Community Development; Grant Programs-Indians; Indians; Public Housing; Rent Subsidies and Reporting and Recordkeeping Requirements

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