80_FR_9287 80 FR 9253 - Federal Housing Administration (FHA): Standardizing Method of Payment for FHA Insurance Claims

80 FR 9253 - Federal Housing Administration (FHA): Standardizing Method of Payment for FHA Insurance Claims

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 34 (February 20, 2015)

Page Range9253-9256
FR Document2015-03457

This proposed rule is a cost-savings measure to update HUD's regulations regarding the payment of FHA insurance claims in debentures. Section 520(a) of the National Housing Act affords the Secretary discretion to pay insurance claims in cash or debentures. Although HUD has given mortgagees the option to elect payment of FHA insurance claims in debentures in some sections of HUD's regulations, HUD has not paid an FHA insurance claim under these regulations using debentures in approximately 5 years. This proposed rule would amend applicable FHA regulations to bring consistency in determining the method of payment for FHA insurance claims.

Federal Register, Volume 80 Issue 34 (Friday, February 20, 2015) 
[Federal Register Volume 80, Number 34 (Friday, February 20, 2015)]
[Proposed Rules]
[Pages 9253-9256]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03457]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 203, 207, 220, 221, 232, 235, 236 and 241

[Docket No. FR-5805-P-01]
RIN 2502-AJ26


Federal Housing Administration (FHA): Standardizing Method of 
Payment for FHA Insurance Claims

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

ACTION: Proposed rule.

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SUMMARY: This proposed rule is a cost-savings measure to update HUD's 
regulations regarding the payment of FHA insurance claims in 
debentures. Section 520(a) of the National Housing Act affords the 
Secretary discretion to pay insurance claims in cash or debentures. 
Although HUD has given mortgagees the option to elect payment of FHA 
insurance claims in debentures in some sections of HUD's regulations, 
HUD has not paid an FHA insurance claim under these regulations using 
debentures in approximately 5 years. This proposed rule would amend 
applicable FHA regulations to bring consistency in determining the 
method of payment for FHA insurance claims.

DATES: Comment Due Date: April 21, 2015.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street 
SW., Room 10276, Washington, DC 20410-0500. Communications must refer 
to the above docket number and title. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule.

    No Facsimile Comments. Facsimile (fax) comments are not acceptable.
    Public Inspection of Public Comments. HUD will make all properly 
submitted comments and communications available for public inspection 
and copying between 8 a.m. and 5 p.m. weekdays at the above address. 
Due to security measures at the HUD Headquarters building, you must 
schedule an appointment in advance to review the public comments by 
calling the Regulations Division at 202-708-3055 (this is not a toll-
free number). Individuals with speech or hearing impairments may access 
this number via TTY by calling the toll-free Federal Relay Service at 
800-877-8339. Copies of all comments submitted are available for 
inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For information about: HUD's Single 
Family Housing program, contact Ivery Himes, Director, Office of Single 
Family Asset Management, Office of Housing, Department of Housing and 
Urban

[[Page 9254]]

Development, 451 7th Street SW., Room 9172, Washington, DC, 20410; 
telephone number 202-708-1672; HUD's Multifamily Housing program, 
contact Sivert Ritchie, Multifamily Claims Branch, Office of Housing, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
6252, Washington, DC 20410-8000; telephone number 202-708-2510. The 
telephone numbers listed above are not toll-free numbers. Persons with 
hearing or speech impairments may access these numbers through TTY by 
calling the toll-free Federal Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    Prior to the Housing and Urban Development Act of 1965, the 
Secretary was required to pay insurance claims on mortgages or loans 
insured under the National Housing Act in debentures. Section 215 of 
the Housing and Urban Development Act of 1965 amended Title V of the 
National Housing Act to add a new section which authorized the 
Secretary, in his discretion, to pay insurance claims on mortgages or 
loans insured under any section of the National Housing Act in cash or 
debentures.\1\
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    \1\ Section 520(a) of the National Housing Act (12 U.S.C. 1735d) 
states: ``Notwithstanding any other provision of this Act with 
respect to the payment of insurance benefits, the Secretary is 
authorized, in his discretion, to pay in cash or in debentures any 
insurance claim or part thereof which is paid on or after the date 
of the enactment of the Housing and Urban Development Act of 1965 on 
a mortgage or a loan which was insured under any section of this Act 
either before or after such date.''
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    In some of FHA's regulations in 24 CFR, subtitle B, chapter II, HUD 
has discretionarily provided mortgagees with the ability to request and 
receive payment of an insurance claim on a loan insured under the 
National Housing Act in debentures. As a result of these regulations, 
HUD has needed to maintain an interagency agreement with Treasury, 
which is the agency responsible for issuing and servicing debentures, 
costing HUD over $206,000 per year, despite the fact that there are no 
current debentures being serviced by Treasury for HUD, and HUD has not 
paid an FHA insurance claim in debentures in approximately 5 years.

II. This Proposed Rule

    HUD proposes to use the authority provided in section 520(a) of the 
National Housing Act to reflect the Secretary's discretion to pay FHA 
insurance claims in cash or debentures. This change will enable HUD, in 
the future, to make a fiscally responsible decision about maintaining 
the costly interagency agreement with Treasury.
    This rule proposes to amend the following sections to bring 
consistency in the payment of FHA insurance claims among FHA programs: 
Sec. Sec.  203.400, 203.476, 203.478, 207.259, 220.751, 220.822, 
221.762, 232.885, 235.215, 236.265, 241.261, 241.885 and 241.1205. As a 
result of these changes, Sec.  220.760 will be eliminated because it 
will be unnecessary.

III. Findings and Certifications

Regulatory Review--Executive Order 13563

    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.
    The broader purposes of the reform to FHA's regulations regarding 
Secretarial discretion of the type of FHA insurance claim payment are 
to eliminate unnecessary spending and bring consistency regarding the 
payment of insurance claims across all FHA programs. As discussed in 
the preamble, the interagency agreement with Treasury costs HUD over 
$206,000 per year, even though HUD currently does not have any 
debentures for payment of FHA insurance claims in circulation, and has 
not made a payment in debentures in approximately 5 years for these 
insurance claims. In addition, different FHA programs treat payment of 
FHA insurance claims differently, and this proposed rule will simplify 
the regulations so that the authority to determine the method of claim 
payment always rests with the Secretary.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule only changes the party which has the authority to determine 
the method of payment of FHA single family, multifamily, and healthcare 
insurance claims.
    Accordingly, the undersigned certifies that this rule will not have 
a significant economic impact on a substantial number of small 
entities. Notwithstanding HUD's determination that this rule will not 
have a significant effect on a substantial number of small entities, 
HUD specifically invites comments regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in the preamble to this rule.

Environmental Impact

    The proposed 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 
proposed rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

Executive Order 13132, Federalism

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

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on state, local, and 
tribal governments, and on the private sector. This proposed rule would 
not impose any Federal mandates on any state, local, or tribal 
governments, or on the private sector, within the meaning of the UMRA.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for Mortgage 
Insurance-Housing in Older, Declining Areas is 14.123; Mortgage 
Insurance-

[[Page 9255]]

Rental Housing is 14.134; Mortgage Insurance-Rental and Cooperative 
Housing for Moderate Income Families and Elderly, Market Interest Rate; 
Mortgage Insurance-Rental Housing in Urban Renewal Areas is 14.139; 
Supplemental Loan Insurance-Multifamily Rental Housing is 14.151; 
Mortgage Insurance for the Purchase or Refinancing of Existing 
Multifamily Housing Projects is 14.155.

Paperwork Reduction Act

    This proposed rule reduces information collection requirements 
already submitted to the Office of Management and Budget (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.

List of Subjects

24 CFR Part 203

    Hawaiian Natives, Home improvement, Indians-lands, Loan programs-
housing and community development; Mortgage insurance; Reporting and 
recordkeeping requirements; Solar energy.

24 CFR Part 207

    Manufactured homes, Mortgage insurance, Reporting and recordkeeping 
requirements, Solar energy.

24 CFR Part 220

    Home improvement, Loan programs-housing and community development, 
Mortgage insurance, Reporting and recordkeeping requirements, Urban 
renewal.

24 CFR Part 221

    Low and moderate income housing, Mortgage insurance, Reporting and 
recordkeeping requirements.

24 CFR Part 232

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

24 CFR Part 235

    Condominiums, Cooperatives, Grant programs-housing and community 
development, Low and moderate income housing, Mortgage insurance, 
Reporting and recordkeeping requirements.

24 CFR Part 236

    Grant programs-housing and community development, Low and moderate 
income housing, Mortgage insurance, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 241

    Home improvement, Loan programs-housing and community development, 
Mortgage insurance, Reporting and recordkeeping requirements, Solar 
energy.

    Accordingly, for the reasons stated above, HUD proposes to amend 24 
CFR parts 203, 207, 220, 221, 232, 235, 236, and 241 as follows:

PART 203--SINGLE FAMILY MORTGAGE INSURANCE

0
1. The authority citation for part 203 is revised to read as follows:

    Authority: 12 U.S.C. 1709, 1710, 1715b, 1715z-16, 1715u, 1717z-
21 and 1735d; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

0
2. Revise Sec.  203.400, to read as follows:


Sec.  203.400  Method of payment.

    (a) If the application for insurance benefits is acceptable to the 
Commissioner, payment of the insurance claim shall be made in cash, in 
debentures, or in a combination of both, as determined by the 
Commissioner either at, or prior to, the time of payment.
    (b) An insurance claim paid on a mortgage insured under section 
223(e) of the National Housing Act shall be paid in cash from the 
Special Risk Insurance Fund.
0
3. Revise Sec.  203.476(g), to read as follows:


Sec.  203.476  Claim application and items to be filed.

* * * * *
    (g) All property of the borrower held by the lender or to which it 
is entitled and, if the Commissioner elects to make payments in 
debentures, all cash held by the lender or to which it is entitled, 
including deposits made for the account of the borrower and which have 
not been applied in reduction of the principal loan indebtedness;
* * * * *
0
4. Revise Sec.  203.478(c), to read as follows:


Sec.  203.478  Payment of insurance benefits.

* * * * *
    (c) Method of payment. Payment of an insurance claim shall be made 
in cash, in debentures, or in a combination of both, as determined by 
the Commissioner either at, or prior to, the time of payment.
* * * * *

PART 207--MULTIFAMILY HOUSING MORTGAGE INSURANCE

0
5. The authority citation for part 207 is revised to read as follows:

    Authority: 12 U.S.C. 1701z-11(e), 1709(c)(1), 1713, 1715(b) and 
1735d; 42 U.S.C. 3535(d).

0
6. Amend Sec.  207.259 by revising paragraph (a), to read as follows:


Sec.  207.259  Insurance Benefits.

    (a) Method of payment. (1) Upon either an assignment of the 
mortgage to the Commissioner or a conveyance of the property to the 
Commissioner in accordance with requirements in Sec.  207.258, payment 
of an insurance claim shall be made in cash, in debentures, or in a 
combination of both, as determined by the Commissioner either at, or 
prior to, the time of payment.
    (2) An insurance claim paid on a mortgage insured under section 
223(e) of the National Housing Act shall be paid in cash from the 
Special Risk Insurance Fund.
* * * * *

PART 220--MORTGAGE INSURANCE AND INSURED IMPROVEMENT LOANS FOR 
URBAN RENEWAL AND CONCENTRATED DEVELOPMENT

0
7. The authority citation for part 220 is revised to read as follows:

    Authority:  12 U.S.C. 1713, 1715b, 1715k and 1735d; 42 U.S.C. 
3535(d).

0
8. Revise Sec.  220.751(a), to read as follows:


Sec.  220.751  Cross-reference.

    (a) All of the provisions of subpart B, part 207 of this chapter, 
covering mortgages insured under section 207 of the National Housing 
Act, apply with full force and effect to multifamily project mortgages 
insured under section 220 of the National Housing Act, except Sec.  
207.256b Modification of mortgage terms.
* * * * *


Sec.  220.760  [Removed]

0
9. Remove Sec.  220.760.


Sec.  220.822  [Amended].

0
10. In Sec.  220.822, remove and reserve paragraph (b).

[[Page 9256]]

PART 221--LOW COST AND MODERATE INCOME MORTGAGE INSURANCE--SAVINGS 
CLAUSE

0
11. The authority citation for part 221 is revised to read as follows:

    Authority: 12 U.S.C. 1715b, 1715l and 1735d; 42 U.S.C. 3535(d).


Sec.  221.762  [Amended].

0
12. In Sec.  221.762, remove and reserve paragraph (a).

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

0
13. The authority citation for part 232 is revised to read as follows:


    Authority:  12 U.S.C. 1715b, 1715w, 1735d and 1735f-19; 42 
U.S.C. 3535(d).

0
14. Revise Sec.  232.885(a), to read as follows:


Sec.  232.885  Insurance benefits.

    (a) Method of payment. Payment of an insurance claim shall be made 
in cash, in debentures, or in a combination of both, as determined by 
the Commissioner either at, or prior to, the time of payment.
* * * * *

PART 235--MORTGAGE INSURANCE AND ASSISTANCE PAYMENTS FOR HOME 
OWNERSHIP AND PROJECT REHABILITATION

0
15. The authority citation for part 235 is revised to read as follows:

     Authority:  12 U.S.C. 1715b, 1715z and 1735d; 42 U.S.C. 
3535(d).

0
16. Revise Sec.  235.215, to read as follows:


Sec.  235.215  Method of paying insurance benefits.

    If the application for insurance benefits is acceptable to the 
Secretary, the insurance claim shall be paid in cash, in debentures, or 
in a combination of both, as determined by the Commissioner either at, 
or prior to, the time of payment.

PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENT FOR 
RENTAL PROJECTS

0
17. The authority citation for part 236 is revised to read as follows:

    Authority: 12 U.S.C. 1715b, 1715z-1 and 1735d; 42 U.S.C. 
3535(d).

Sec.  236.265  [Amended].

0
18. In Sec.  236.265, remove and reserve paragraph (a).

PART 241--SUPPLEMENTARY FINANCING FOR INSURED PROJECT MORTGAGES

0
19. The authority citation for part 241 is revised to read as follows:

     Authority: 12 U.S.C. 1715b, 1715z-6 and 1735d; 42 U.S.C. 
3535(d).

0
20. Revise Sec.  241.261, to read as follows:


Sec.  241.261  Payment of insurance benefits.

    All of the provisions of Sec.  207.259 of this chapter relating to 
insurance benefits shall apply to multifamily loans insured under this 
subpart.

0
21. Revise Sec.  241.885(a), to read as follows:


Sec.  241.885  Insurance benefits.

    (a) Method of payment. Payment of insurance claims shall be made in 
cash, in debentures, or in a combination of both, as determined by the 
Commissioner either at, or prior to, the time of payment.
* * * * *
0
22. Revise Sec.  241.1205, to read as follows:


Sec.  241.1205  Payment of insurance benefits.

    All the provisions of Sec.  207.259 of this chapter relating to 
insurance benefits shall apply to an equity or acquisition loan insured 
under subpart F of this part.

    Dated: January 15, 2015.
Biniam Gebre,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2015-03457 Filed 2-19-15; 8:45 am]
BILLING CODE 4210-67-P

Federal Register / Vol. 80, No. 34 / Friday, February 20, 2015 / Proposed Rules 9253 (1) Determine the level of emergency event to the extent needed to Division, Office of General Counsel, organizational performance effort include facilities affected by the event. Department of Housing and Urban needed to achieve the objectives of asset The State will review and update the Development, 451 7th Street SW., Room management; evaluation at least every four years after 10276, Washington, DC 20410–0500. (2) Determine the performance gaps the initial evaluation. In establishing its Communications must refer to the above between the existing level of evaluation cycle, the State DOT should docket number and title. There are two performance effort and the needed level consider how the evaluation can best methods for submitting public of performance effort; and inform the State DOT’s preparation of comments. All submissions must refer (3) Develop strategies to close the its asset management plan and STIP. to the above docket number and title. identified organizational performance (d) The State DOT shall include in its 1. Submission of Comments by Mail. gaps and define the period of time over asset management plan developed Comments may be submitted by mail to which the gap is to be closed. pursuant to §§ 515.007 and 515.009, a the Regulations Division, Office of summary of the evaluation for any General Counsel, Department of § 515.019 Periodic evaluations of facilities roads, highways, and bridges included Housing and Urban Development, 451 requiring repair or reconstruction due to emergency events. in the asset management plan. The 7th Street SW., Room 10276, results of the evaluation of those assets, Washington, DC 20410–0500. (a) A State DOT shall conduct a 2. Electronic Submission of including any update following an statewide evaluation of the State’s Comments. Interested persons may emergency event, shall be addressed in existing roads, highways, and bridges submit comments electronically through the asset management plan’s risk eligible for funding under title 23, the Federal eRulemaking Portal at analysis as provided in § 515.007(a)(6). United States Code, that have required www.regulations.gov. HUD strongly (e) The State DOT must make the repair and reconstruction activities on encourages commenters to submit evaluation available to the FHWA upon two or more occasions due to emergency comments electronically. Electronic request. events, to determine if there are submission of comments allows the reasonable alternatives to any of these [FR Doc. 2015–03167 Filed 2–19–15; 8:45 am] commenter maximum time to prepare roads, highways, and bridges. The BILLING CODE 4910–22–P and submit a comment, ensures timely evaluation shall consider the risk of receipt by HUD, and enables HUD to recurring damage and cost of future make them immediately available to the repair under current and future DEPARTMENT OF HOUSING AND public. Comments submitted environmental conditions. For purposes URBAN DEVELOPMENT electronically through the of this section, ‘‘emergency event’’ www.regulations.gov Web site can be means a natural disaster or catastrophic 24 CFR Parts 203, 207, 220, 221, 232, 235, 236 and 241 viewed by other commenters and failure due to external causes resulting interested members of the public. in an emergency declared by the [Docket No. FR–5805–P–01] Commenters should follow the Governor of the State or an emergency instructions provided on that site to or disaster declared by the President of RIN 2502–AJ26 submit comments electronically. the United States. (b) For purposes of this section, Federal Housing Administration (FHA): Note: To receive consideration as public reasonable alternatives include work Standardizing Method of Payment for comments, comments must be submitted FHA Insurance Claims through one of the two methods specified types that could achieve the following: above. Again, all submissions must refer to (1) Reduce the need for Federal funds AGENCY: Office of the Assistant the docket number and title of the rule. to be expended on emergency repair and Secretary for Housing-Federal Housing reconstruction activities; No Facsimile Comments. Facsimile Commissioner, HUD. (fax) comments are not acceptable. (2) Better protect public safety and ACTION: Proposed rule. Public Inspection of Public health and the human and natural environment; and Comments. HUD will make all properly SUMMARY: This proposed rule is a cost- submitted comments and (3) Meet transportation needs as savings measure to update HUD’s described in the relevant and applicable communications available for public regulations regarding the payment of inspection and copying between 8 a.m. Federal, State, local, and tribal plans FHA insurance claims in debentures. and programs. Relevant and applicable and 5 p.m. weekdays at the above Section 520(a) of the National Housing address. Due to security measures at the plans and programs include the Long- Act affords the Secretary discretion to Range Statewide Transportation Plan, HUD Headquarters building, you must pay insurance claims in cash or schedule an appointment in advance to STIP, Metropolitan Transportation Plan, debentures. Although HUD has given and Transportation Improvement review the public comments by calling mortgagees the option to elect payment the Regulations Division at 202–708– Program that are developed under part of FHA insurance claims in debentures 450 of this title. 3055 (this is not a toll-free number). in some sections of HUD’s regulations, Individuals with speech or hearing (c) Not later than [date 2 years after HUD has not paid an FHA insurance effective date of final rule], the State impairments may access this number claim under these regulations using via TTY by calling the toll-free Federal DOT must complete the evaluation for debentures in approximately 5 years. NHS highways and bridges and any Relay Service at 800–877–8339. Copies This proposed rule would amend of all comments submitted are available other assets included in the State DOT’s Rmajette on DSK2VPTVN1PROD with PROPOSALS applicable FHA regulations to bring for inspection and downloading at asset management plan. The State DOT consistency in determining the method must complete the evaluation for all www.regulations.gov. of payment for FHA insurance claims. other roads, highways, and bridges FOR FURTHER INFORMATION CONTACT: For DATES: Comment Due Date: April 21, meeting the criteria for evaluation not information about: HUD’s Single Family later than [date 4 years after effective 2015. Housing program, contact Ivery Himes, date of final rule], excluding federally- ADDRESSES: Interested persons are Director, Office of Single Family Asset owned facilities. The State DOT shall invited to submit comments regarding Management, Office of Housing, update the evaluation after every this proposed rule to the Regulations Department of Housing and Urban VerDate Sep<11>2014 12:47 Feb 19, 2015 Jkt 235001 PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 E:\FR\FM\20FEP1.SGM 20FEP1

9254 Federal Register / Vol. 80, No. 34 / Friday, February 20, 2015 / Proposed Rules Development, 451 7th Street SW., Room decision about maintaining the costly multifamily, and healthcare insurance 9172, Washington, DC, 20410; telephone interagency agreement with Treasury. claims. number 202–708–1672; HUD’s This rule proposes to amend the Accordingly, the undersigned certifies Multifamily Housing program, contact following sections to bring consistency that this rule will not have a significant Sivert Ritchie, Multifamily Claims in the payment of FHA insurance claims economic impact on a substantial Branch, Office of Housing, Department among FHA programs: §§ 203.400, number of small entities. of Housing and Urban Development, 203.476, 203.478, 207.259, 220.751, Notwithstanding HUD’s determination 451 7th Street SW., Room 6252, 220.822, 221.762, 232.885, 235.215, that this rule will not have a significant Washington, DC 20410–8000; telephone 236.265, 241.261, 241.885 and 241.1205. effect on a substantial number of small number 202–708–2510. The telephone As a result of these changes, § 220.760 entities, HUD specifically invites numbers listed above are not toll-free will be eliminated because it will be comments regarding any less numbers. Persons with hearing or unnecessary. burdensome alternatives to this rule that speech impairments may access these will meet HUD’s objectives as described III. Findings and Certifications in the preamble to this rule. numbers through TTY by calling the toll-free Federal Relay Service at 800– Regulatory Review—Executive Order Environmental Impact 877–8339. 13563 The proposed rule does not direct, SUPPLEMENTARY INFORMATION: Executive Order 13563 (Improving provide for assistance or loan and I. Background Regulations and Regulatory Review) mortgage insurance for, or otherwise directs executive agencies to analyze govern or regulate, real property Prior to the Housing and Urban regulations that are ‘‘outmoded, Development Act of 1965, the Secretary acquisition, disposition, leasing, ineffective, insufficient, or excessively rehabilitation, alteration, demolition, or was required to pay insurance claims on burdensome, and to modify, streamline, mortgages or loans insured under the new construction, or establish, revise or expand, or repeal them in accordance provide for standards for construction or National Housing Act in debentures. with what has been learned.’’ Executive Section 215 of the Housing and Urban construction materials, manufactured Order 13563 also directs that, where housing, or occupancy. Accordingly, Development Act of 1965 amended Title relevant, feasible, and consistent with V of the National Housing Act to add a under 24 CFR 50.19(c)(1), this proposed regulatory objectives, and to the extent rule is categorically excluded from new section which authorized the permitted by law, agencies are to Secretary, in his discretion, to pay environmental review under the identify and consider regulatory National Environmental Policy Act of insurance claims on mortgages or loans approaches that reduce burdens and insured under any section of the 1969 (42 U.S.C. 4321). maintain flexibility and freedom of National Housing Act in cash or choice for the public. Executive Order 13132, Federalism debentures.1 The broader purposes of the reform to Executive Order 13132 (entitled In some of FHA’s regulations in 24 FHA’s regulations regarding Secretarial ‘‘Federalism’’) prohibits an agency from CFR, subtitle B, chapter II, HUD has discretion of the type of FHA insurance publishing any rule that has federalism discretionarily provided mortgagees claim payment are to eliminate implications if the rule either (i) with the ability to request and receive unnecessary spending and bring imposes substantial direct compliance payment of an insurance claim on a loan consistency regarding the payment of costs on state and local governments insured under the National Housing Act insurance claims across all FHA and is not required by statute, or (ii) in debentures. As a result of these programs. As discussed in the preamble, preempts state law, unless the agency regulations, HUD has needed to the interagency agreement with meets the consultation and funding maintain an interagency agreement with Treasury costs HUD over $206,000 per requirements of section 6 of the Treasury, which is the agency year, even though HUD currently does Executive order. This proposed rule responsible for issuing and servicing not have any debentures for payment of would not have federalism implications debentures, costing HUD over $206,000 FHA insurance claims in circulation, and would not impose substantial direct per year, despite the fact that there are and has not made a payment in compliance costs on state and local no current debentures being serviced by debentures in approximately 5 years for governments or preempt state law Treasury for HUD, and HUD has not these insurance claims. In addition, within the meaning of the Executive paid an FHA insurance claim in different FHA programs treat payment order. debentures in approximately 5 years. of FHA insurance claims differently, and this proposed rule will simplify the Unfunded Mandates Reform Act II. This Proposed Rule regulations so that the authority to Title II of the Unfunded Mandates HUD proposes to use the authority determine the method of claim payment Reform Act of 1995 (2 U.S.C. 1531– provided in section 520(a) of the always rests with the Secretary. 1538) (UMRA) establishes requirements National Housing Act to reflect the for Federal agencies to assess the effects Secretary’s discretion to pay FHA Regulatory Flexibility Act of their regulatory actions on state, insurance claims in cash or debentures. The Regulatory Flexibility Act (RFA) local, and tribal governments, and on This change will enable HUD, in the (5 U.S.C. 601 et seq.) generally requires the private sector. This proposed rule future, to make a fiscally responsible an agency to conduct a regulatory would not impose any Federal mandates flexibility analysis of any rule subject to on any state, local, or tribal Rmajette on DSK2VPTVN1PROD with PROPOSALS 1 Section 520(a) of the National Housing Act (12 notice and comment rulemaking governments, or on the private sector, U.S.C. 1735d) states: ‘‘Notwithstanding any other provision of this Act with respect to the payment requirements, unless the agency certifies within the meaning of the UMRA. of insurance benefits, the Secretary is authorized, in that the rule will not have a significant his discretion, to pay in cash or in debentures any economic impact on a substantial Catalog of Federal Domestic Assistance insurance claim or part thereof which is paid on or number of small entities. This rule only The Catalog of Federal Domestic after the date of the enactment of the Housing and Urban Development Act of 1965 on a mortgage or changes the party which has the Assistance number for Mortgage a loan which was insured under any section of this authority to determine the method of Insurance-Housing in Older, Declining Act either before or after such date.’’ payment of FHA single family, Areas is 14.123; Mortgage Insurance- VerDate Sep<11>2014 12:47 Feb 19, 2015 Jkt 235001 PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 E:\FR\FM\20FEP1.SGM 20FEP1

Federal Register / Vol. 80, No. 34 / Friday, February 20, 2015 / Proposed Rules 9255 Rental Housing is 14.134; Mortgage 24 CFR Part 236 Commissioner either at, or prior to, the Insurance-Rental and Cooperative time of payment. Grant programs-housing and Housing for Moderate Income Families * * * * * community development, Low and and Elderly, Market Interest Rate; moderate income housing, Mortgage Mortgage Insurance-Rental Housing in PART 207—MULTIFAMILY HOUSING insurance, Rent subsidies, Reporting Urban Renewal Areas is 14.139; MORTGAGE INSURANCE and recordkeeping requirements. Supplemental Loan Insurance- Multifamily Rental Housing is 14.151; 24 CFR Part 241 ■ 5. The authority citation for part 207 Mortgage Insurance for the Purchase or is revised to read as follows: Home improvement, Loan programs- Refinancing of Existing Multifamily housing and community development, Authority: 12 U.S.C. 1701z–11(e), Housing Projects is 14.155. Mortgage insurance, Reporting and 1709(c)(1), 1713, 1715(b) and 1735d; 42 Paperwork Reduction Act recordkeeping requirements, Solar U.S.C. 3535(d). energy. This proposed rule reduces ■ 6. Amend § 207.259 by revising information collection requirements Accordingly, for the reasons stated paragraph (a), to read as follows: already submitted to the Office of above, HUD proposes to amend 24 CFR Management and Budget (OMB) under parts 203, 207, 220, 221, 232, 235, 236, § 207.259 Insurance Benefits. the Paperwork Reduction Act of 1995 and 241 as follows: (a) Method of payment. (1) Upon (44 U.S.C. 3501–3520). In accordance either an assignment of the mortgage to with the Paperwork Reduction Act, an PART 203—SINGLE FAMILY MORTGAGE INSURANCE the Commissioner or a conveyance of agency may not conduct or sponsor, and the property to the Commissioner in a person is not required to respond to, accordance with requirements in ■ 1. The authority citation for part 203 a collection of information unless the § 207.258, payment of an insurance is revised to read as follows: collection displays a currently valid claim shall be made in cash, in OMB control number. Authority: 12 U.S.C. 1709, 1710, 1715b, 1715z–16, 1715u, 1717z–21 and 1735d; 15 debentures, or in a combination of both, List of Subjects U.S.C. 1639c; 42 U.S.C. 3535(d). as determined by the Commissioner either at, or prior to, the time of 24 CFR Part 203 ■ 2. Revise § 203.400, to read as follows: payment. Hawaiian Natives, Home § 203.400 Method of payment. (2) An insurance claim paid on a improvement, Indians-lands, Loan (a) If the application for insurance mortgage insured under section 223(e) programs-housing and community benefits is acceptable to the of the National Housing Act shall be development; Mortgage insurance; Commissioner, payment of the paid in cash from the Special Risk Reporting and recordkeeping insurance claim shall be made in cash, Insurance Fund. requirements; Solar energy. in debentures, or in a combination of * * * * * 24 CFR Part 207 both, as determined by the Commissioner either at, or prior to, the PART 220—MORTGAGE INSURANCE Manufactured homes, Mortgage time of payment. AND INSURED IMPROVEMENT LOANS insurance, Reporting and recordkeeping (b) An insurance claim paid on a FOR URBAN RENEWAL AND requirements, Solar energy. mortgage insured under section 223(e) CONCENTRATED DEVELOPMENT 24 CFR Part 220 of the National Housing Act shall be paid in cash from the Special Risk ■ 7. The authority citation for part 220 Home improvement, Loan programs- Insurance Fund. is revised to read as follows: housing and community development, ■ 3. Revise § 203.476(g), to read as Authority: 12 U.S.C. 1713, 1715b, 1715k Mortgage insurance, Reporting and follows: and 1735d; 42 U.S.C. 3535(d). recordkeeping requirements, Urban renewal. § 203.476 Claim application and items to ■ 8. Revise § 220.751(a), to read as be filed. 24 CFR Part 221 follows: * * * * * Low and moderate income housing, (g) All property of the borrower held § 220.751 Cross-reference. Mortgage insurance, Reporting and by the lender or to which it is entitled (a) All of the provisions of subpart B, recordkeeping requirements. and, if the Commissioner elects to make part 207 of this chapter, covering payments in debentures, all cash held mortgages insured under section 207 of 24 CFR Part 232 by the lender or to which it is entitled, the National Housing Act, apply with Fire prevention, Health facilities, including deposits made for the account full force and effect to multifamily Loan programs-health, Loan programs- of the borrower and which have not project mortgages insured under section housing and community development, been applied in reduction of the 220 of the National Housing Act, except Mortgage insurance, Nursing homes, principal loan indebtedness; § 207.256b Modification of mortgage Reporting and recordkeeping * * * * * terms. requirements. ■ 4. Revise § 203.478(c), to read as Rmajette on DSK2VPTVN1PROD with PROPOSALS * * * * * 24 CFR Part 235 follows: § 220.760 [Removed] Condominiums, Cooperatives, Grant § 203.478 Payment of insurance benefits. programs-housing and community * * * * * ■ 9. Remove § 220.760. development, Low and moderate (c) Method of payment. Payment of an § 220.822 [Amended]. income housing, Mortgage insurance, insurance claim shall be made in cash, Reporting and recordkeeping in debentures, or in a combination of ■ 10. In § 220.822, remove and reserve requirements. both, as determined by the paragraph (b). VerDate Sep<11>2014 12:47 Feb 19, 2015 Jkt 235001 PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 E:\FR\FM\20FEP1.SGM 20FEP1

9256 Federal Register / Vol. 80, No. 34 / Friday, February 20, 2015 / Proposed Rules PART 221—LOW COST AND PART 241—SUPPLEMENTARY requested that we revise our current MODERATE INCOME MORTGAGE FINANCING FOR INSURED PROJECT regulations to prohibit visible nitrogen INSURANCE—SAVINGS CLAUSE MORTGAGES oxide clouds during blasting. The Director has decided to grant the ■ 11. The authority citation for part 221 ■ 19. The authority citation for part 241 petition in principle, and although we is revised to read as follows: is revised to read as follows: do not intend to propose the specific Authority: 12 U.S.C. 1715b, 1715l and Authority: 12 U.S.C. 1715b, 1715z–6 and rule changes requested in the petition, 1735d; 42 U.S.C. 3535(d). 1735d; 42 U.S.C. 3535(d). will instead initiate a rulemaking to ■ 20. Revise § 241.261, to read as address this issue as discussed more § 221.762 [Amended]. follows: fully below. ■ 12. In § 221.762, remove and reserve DATES: February 20, 2015. paragraph (a). § 241.261 Payment of insurance benefits. All of the provisions of § 207.259 of ADDRESSES: Copies of the petition and PART 232—MORTGAGE INSURANCE this chapter relating to insurance other relevant materials comprising the FOR NURSING HOMES, benefits shall apply to multifamily loans administrative record of this petition are INTERMEDIATE CARE FACILITIES, insured under this subpart. available for public review and copying BOARD AND CARE HOMES, AND ■ 21. Revise § 241.885(a), to read as at the Office of Surface Mining ASSISTED LIVING FACILITIES follows: Reclamation and Enforcement, Administrative Record, Room 252 SIB, ■ 13. The authority citation for part 232 § 241.885 Insurance benefits. 1951 Constitution Avenue NW., is revised to read as follows: (a) Method of payment. Payment of Washington, DC 20240. Authority: 12 U.S.C. 1715b, 1715w, 1735d insurance claims shall be made in cash, FOR FURTHER INFORMATION CONTACT: and 1735f–19; 42 U.S.C. 3535(d). in debentures, or in a combination of Joshua Rockwell, Division of Regulatory ■ 14. Revise § 232.885(a), to read as both, as determined by the Support, 1951 Constitution Ave. NW., follows: Commissioner either at, or prior to, the Washington, DC 20240; Telephone: time of payment. 202–208–2633; Email: jrockwell@ § 232.885 Insurance benefits. * * * * * osmre.gov. (a) Method of payment. Payment of an ■ 22. Revise § 241.1205, to read as insurance claim shall be made in cash, follows: SUPPLEMENTARY INFORMATION: in debentures, or in a combination of § 241.1205 Payment of insurance benefits. Table of Contents both, as determined by the All the provisions of § 207.259 of this I. How does the petition process operate? Commissioner either at, or prior to, the II. What is the substance of the petition? chapter relating to insurance benefits time of payment. III. What do our current regulations regarding shall apply to an equity or acquisition * * * * * loan insured under subpart F of this the use of explosives require? IV. What comments did we receive and how PART 235—MORTGAGE INSURANCE part. did we address them? AND ASSISTANCE PAYMENTS FOR Dated: January 15, 2015. V. What is the Director’s decision? HOME OWNERSHIP AND PROJECT Biniam Gebre, VI. Procedural Matters and Determinations REHABILITATION Acting Assistant Secretary for Housing— I. How does the petition process Federal Housing Commissioner. operate? ■ 15. The authority citation for part 235 [FR Doc. 2015–03457 Filed 2–19–15; 8:45 am] is revised to read as follows: On April 18, 2014, we received a BILLING CODE 4210–67–P Authority: 12 U.S.C. 1715b, 1715z and petition from WildEarth Guardians 1735d; 42 U.S.C. 3535(d). (petitioner) requesting that OSMRE DEPARTMENT OF THE INTERIOR promulgate rules to prohibit the ■ 16. Revise § 235.215, to read as production of visible nitrogen oxides follows: Office of Surface Mining Reclamation (NOX) emissions (including nitric oxide § 235.215 Method of paying insurance and Enforcement and nitrogen dioxide) during blasting at benefits. surface coal mining operations in order If the application for insurance 30 CFR Parts 816 and 817 to protect the health, welfare, and safety benefits is acceptable to the Secretary, [Docket ID: OSM–2014–0003; S1D1S of the public and of mine workers and the insurance claim shall be paid in SS08011000 SX066A00067F 134S180110; to prevent injury to persons. WildEarth cash, in debentures, or in a combination S2D2S SS08011000 SX066A00 33F Guardians submitted this petition of both, as determined by the 13XS501520] pursuant to section 201(g) of the Surface Commissioner either at, or prior to, the Mining Control and Reclamation Act of time of payment. Petition To Initiate Rulemaking; Use of 1977 (SMCRA), 30 U.S.C. 1201(g), Explosives on Surface Coal Mining which provides that any person may PART 236—MORTGAGE INSURANCE Operations petition the Director of OSMRE to AND INTEREST REDUCTION AGENCY: Office of Surface Mining initiate a proceeding for the issuance, PAYMENT FOR RENTAL PROJECTS Reclamation and Enforcement, Interior. amendment, or repeal of any regulation adopted under SMCRA. OSMRE Rmajette on DSK2VPTVN1PROD with PROPOSALS ■ 17. The authority citation for part 236 ACTION: Decision on petition for adopted regulations at 30 CFR 700.12 to is revised to read as follows: rulemaking. implement this statutory provision. Authority: 12 U.S.C. 1715b, 1715z–1 and SUMMARY: We, the Office of Surface In accordance with our regulation at 1735d; 42 U.S.C. 3535(d). Mining Reclamation and Enforcement 30 CFR 700.12(c), we determined that (OSMRE or OSM), are announcing our WildEarth Guardians’ petition set forth § 236.265 [Amended]. final decision on a petition for ‘‘facts, technical justification and law’’ ■ 18. In § 236.265, remove and reserve rulemaking that was submitted by establishing a ‘‘reasonable basis’’ for paragraph (a). WildEarth Guardians. The petition amending our regulations. Therefore, on VerDate Sep<11>2014 17:35 Feb 19, 2015 Jkt 235001 PO 00000 Frm 00026 Fmt 4702 Sfmt 4702 E:\FR\FM\20FEP1.SGM 20FEP1


Document Created: 2015-12-18 13:01:49
Document Modified: 2015-12-18 13:01:49
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
ContactFor information about: HUD's Single Family Housing program, contact Ivery Himes, Director, Office of Single Family Asset Management, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 9172, Washington, DC, 20410; telephone number 202-708-1672; HUD's Multifamily Housing program, contact Sivert Ritchie, Multifamily Claims Branch, Office of Housing, Department of Housing and Urban Development, 451 7th Street SW., Room 6252, Washington, DC 20410-8000; telephone number 202-708-2510. The telephone numbers listed above are not toll-free numbers. Persons with hearing or speech impairments may access these numbers through TTY by calling the toll-free Federal Relay Service at 800-877-8339.
FR Citation80 FR 9253 
RIN Number2502-AJ26
CFR Citation24 CFR 203
24 CFR 207
24 CFR 220
24 CFR 221
24 CFR 232
24 CFR 235
24 CFR 236
24 CFR 241
CFR AssociatedHawaiian Natives; Home Improvement; Indians-Lands; Loan Programs-Housing and Community Development; Mortgage Insurance; Reporting and Recordkeeping Requirements; Solar Energy; Manufactured Homes; Mortgage Insurance; Reporting and Recordkeeping Requirements; Solar Energy; Loan Programs-Housing and Community Development; Urban Renewal; Low and Moderate Income Housing; Fire Prevention; Health Facilities; Loan Programs-Health; Nursing Homes; Condominiums; Cooperatives; Grant Programs-Housing and Community Development and Rent Subsidies
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