81_FR_26845 81 FR 26759 - Notice of Demonstration To Test Proposed New Method of Assessing the Physical Conditions of Voucher-Assisted Housing

81 FR 26759 - Notice of Demonstration To Test Proposed New Method of Assessing the Physical Conditions of Voucher-Assisted Housing

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 86 (May 4, 2016)

Page Range26759-26763
FR Document2016-10460

Through this document, HUD solicits comment on a demonstration designed to test a new method of assessing the physical condition of housing assisted by HUD vouchers (voucher-assisted housing). In the Joint Explanatory Statement accompanying the act appropriating funds for HUD in Fiscal Year (FY 2016), Congress directed HUD to implement a single inspection protocol for public housing and voucher units. This demonstration would commence the process for implementing a single inspection protocol.

Federal Register, Volume 81 Issue 86 (Wednesday, May 4, 2016)
[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)]
[Proposed Rules]
[Pages 26759-26763]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10460]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 982

[Docket No. FR-5928-N-01]


Notice of Demonstration To Test Proposed New Method of Assessing 
the Physical Conditions of Voucher-Assisted Housing

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

ACTION: Notice.

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SUMMARY: Through this document, HUD solicits comment on a demonstration 
designed to test a new method of assessing the physical condition of 
housing assisted by HUD vouchers (voucher-assisted housing). In the 
Joint Explanatory Statement accompanying the act appropriating funds 
for HUD in Fiscal Year (FY 2016), Congress directed HUD to implement a 
single inspection protocol for public housing and voucher units. This 
demonstration would commence the process for implementing a single 
inspection protocol.

DATES: Comments Due Date: July 5, 2016.

ADDRESSES: Interested persons are invited to submit comments to the 
Office of the General Counsel, Regulations Division, Department of 
Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500. Communications should refer to the above 
docket number and title and should contain the information specified in 
the ``Request for Comments'' section. There are two methods for 
submitting public comments.
    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. Due to security measures at all federal 
agencies, however, submission of comments by mail often results in 
delayed delivery. To ensure timely receipt of comments, HUD recommends 
that comments submitted by mail be submitted at least two weeks in 
advance of the public comment deadline.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
http://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 comments 
immediately available to the public. Comments submitted electronically 
through the http://www.regulations.gov Web site can be viewed by other 
commenters and interested members of the public. Commenters should 
follow instructions provided on that site to submit comments 
electronically.

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

    No Facsimile Comments. Facsimile (fax) comments are not acceptable.
    Public Inspection of Comments. All comments and communications 
submitted to HUD will be 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, an advance 
appointment to review the public comments must be scheduled by calling 
the Regulations Division at (202) 708-3055 (this is not a toll-free 
number). Copies of all comments submitted are available for inspection 
and downloading at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Daniel R. Williams, Real Estate 
Assessment Center, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 550 12th Street SW., Suite 100, 
Washington DC 20410-4000; telephone number 202-475-8586 (this is not a 
toll-free number). Persons with hearing or speech impairments may 
contact this number via TTY by calling the toll-free Federal Relay 
Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Structure of the Notice

    The following four sections discuss the background through the 
solicitation of comments. Section II below provides background 
information on oversight of the Housing Choice Voucher inspection 
program and explains the origins of the Uniform Physical Condition 
Standards for Vouchers (UPCS-V), an alternative approach for ensuring 
safe, habitable voucher-assisted housing. In Section III, the notice 
explains the three main areas that will be evaluated during the 
demonstration, which are: The objective condition standards including a 
list of life threatening and emergency items that must be addressed, 
the revised information technology (IT) processes, and the new 
oversight approach. Also in Section III, HUD discusses the general 
public housing agency (PHA) participation criteria it will use to 
select a representative mix of volunteer PHAs. In Section IV, HUD 
describes the process by which HUD will assess the results of the 
demonstration. In the last section of this notice, Section V, HUD

[[Page 26760]]

solicits public comment generally as well as on several questions of 
specific interest.

II. Background

    HUD's Housing Choice Voucher (HCV) program serves approximately 2.2 
million households nationwide. The HCV program is administered by PHAs 
at the State and local levels and allows participants the opportunity 
to rent from private landlords in the neighborhood of their choosing. 
The goal of the HCV program is to enable access to decent, safe and 
sanitary affordable housing for low-income families. In the 1970's HUD 
established housing quality standards (HQS) in accordance with the U.S. 
Housing Act of 1937 (1937 Act) (42 U.S.C. 1437 et seq.). Section 
8(o)(8)(B) of the 1937 Act (42 U.S.C. 1437f(o)(8)(B)), directs HUD to 
establish standards for safe and habitable housing. These standards are 
codified in HUD regulations at 24 CFR 982.401. PHAs use these standards 
to determine if housing meets the minimum criteria necessary for the 
safety and habitability of occupants assisted under the program.
    The HUD Office of Inspector General (OIG) has released several 
audit reports and evaluations that identified weakness in the HCV 
inspection program.\1\ These OIG reports and other factors led to the 
report of the Senate Committee on Appropriations, Report 113-045, that 
accompanied the Senate bill for HUD's 2014 appropriations, and directed 
HUD to ``. . . move to a consistent inspection standard across housing 
assistance programs, as well as [for] oversight of Section 8 units.'' 
\2\ In response to this directive, HUD conducted a quality assurance 
review of HCV units using its current HQS inspection model.\3\ The 
results of these inspections showed that the current HQS protocol 
lacked objective, well-defined deficiency descriptions, was unable to 
capture granular unit conditions, and relied on a paper inspection 
form. In addition, there was an absence of modern health standards such 
as carbon monoxide detectors and sprinkler systems, and an absence of a 
universal list of life threatening or emergency deficiencies. HUD 
determined that these factors resulted in inconsistent application of 
HQS standards, and there was potential for inconsistent housing 
outcomes and exposure of families to health and safety hazards.
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    \1\ See e.g., HUD OIG Reports: 2008-AT-003; 2012-BO-1005.
    \2\ See page 100 of https://www.thefederalregister.org/fdsys/pkg/CRPT-113srpt45/pdf/CRPT-113srpt45.pdf.
    \3\ See http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/oed.
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    At the conclusion of the quality control review, HUD accelerated 
the search for a replacement to the Housing Quality Standards, leading 
to the eventual development of UPCS-V. In the Joint Explanatory 
Statement accompanying the Consolidated Appropriations Act of 2016, 
Public Law 114-113, approved December 18, 2015, Congress directed HUD 
to implement a single inspection protocol for public housing and 
voucher units.\4\ This demonstration would commence the process for 
implementing a single inspection protocol by soliciting PHAs to 
voluntarily move to the single inspection protocol, conduct field 
testing, and participate in oversight and monitoring activities related 
to the new standard. In addition to improving outcomes for families and 
aligning program standards, this demonstration will provide valuable 
feedback to HUD about how to efficiently and effectively implement 
UPCS-V at all PHAs. Congress has provided HUD with funding to improve 
its oversight of the HCV inspection program and to move the inspection 
standard for the HCV program to one that is consistent with other 
affordable housing programs and that incorporates modern health and 
safety practices.\5\
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    \4\ See page 41 of Division L of the FY2016 Joint Explanatory 
Statement. See https://rules.house.gov/bill/114/hr-2029-sa.
    \5\ See Title II of Division K of the FY2015 Joint Explanatory 
Statement. See https://www.congress.gov/congressional-record/2014/12/11/house-section/article/H9307-1.
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III. The Demonstration

A. Overview

    In response to Congressional direction and HUD's own goal to 
improve the effectiveness of the inspection of public and assisted 
housing while minimizing burdens, HUD is developing a new inspection 
and oversight approach called UPCS-V. UPCS-V incorporates housing 
health and safety constructs, concepts from the Uniform Physical 
Condition Standard (UPCS), codified in HUD regulations at 24 CFR 5.703, 
and HQS, codified at 24 CFR 982.401. The new UPCS-V will include 
deficiency definitions and decision criteria, and tailored standards 
and protocols to better meet HCV program needs. The UPCS protocol is 
currently recognized by industry stakeholders as the benchmark for 
government-assisted and affordable housing inspections. This 
Demonstration is the first step in implementing an aligned inspection 
protocol for public housing/multi-family housing and voucher programs, 
and will test the UPCS-V inspection model's ability to assess the 
physical condition of assisted housing, improve service delivery, 
enhance oversight and risk management capabilities, and better identify 
health and safety hazards in the home.

B. The New Inspection Model and Demonstration Protocols

    Under this Demonstration, HUD will test, for up to three years, 
with up to 250 PHAs, the UPCS-V model as a new method of assessing the 
physical condition of voucher-assisted housing.
    In addition to hands-on training and technical assistance that will 
be provided by HUD to participating PHAs, some additional benefits of 
participating in the Demonstration include the opportunity to provide 
input to HUD on further refining the UPCS-V standards and processes, 
and the ability to evaluate, test, and refine internal PHA systems and 
processes.
    There are three components to the Demonstration, each of which may 
run concurrently:
 Evaluation of Revised Inspection Model (UPCS-V)
 Data Standardization and Information Exchange
 Oversight and Performance Improvement
Component 1: Evaluation of the Revised Inspection Model (UPCS-V)
    For the past 17 years, HUD has used the UPCS protocol when 
conducting over 310,000 physical inspections of public housing (PH) and 
subsidized multifamily housing (MFH) developments, solidifying UPCS as 
the industry standard for government-assisted and affordable housing 
inspections. HUD leveraged its experience with UPCS and developed a 
product tailored to the objectives of the HCV program. The scope of the 
inspection, the procedural guidelines, and the individual deficiencies 
have been modified to emphasize those areas that present the highest 
risk of harm to the family living in the HCV assisted unit.
    UPCS-V seeks to utilize well-defined and objective deficiency 
descriptions that can be used consistently within and across PHAs. The 
following table summarizes some of the high-level similarities and 
differences between UPCS-V and HQS.

[[Page 26761]]



------------------------------------------------------------------------
                 Item                         HQS             UPCS-V
------------------------------------------------------------------------
Provides standardized list of           ...............               X
 deficiencies and measurable criteria.
Defined standardized list of Life       ...............               X
 Threatening and Emergency items......
Up-to-date health and safety standards  ...............               X
Designed as a unit-based inspection                  X                X
 standard for federally assisted units
Inspection standard aligned with other  ...............               X
 federally assisted programs..........
Pass/Fail results for all deficiencies               X                X
PHA ability to adopt HUD-approved                    X                X
 variances............................
Uniform inspector training and          ...............               X
 registration.........................
Includes guidance through the use of    ...............               X
 decision trees that lead to more
 consistent observations..............
Captures level of severity for line     ...............               X
 item deficiencies....................
Unit and room acceptability criteria..               X                X
Standardized criteria for PHA           ...............               X
 submission of electronic inspection
 data to HUD..........................
Customized unit condition index to      ...............               X
 provide value added analytics of
 inspection data to PHAs and
 stakeholders.........................
Photo requirements for fail             ...............               X
 deficiencies.........................
Allow PHAs the use photo and document   ...............               X
 evidence to ensure all fail
 deficiencies have been mitigated.....
------------------------------------------------------------------------

    Like UPCS, HUD anticipates that the new inspection model will 
enable a PHA inspector to more consistently identify and accurately 
describe those items that pose a risk to tenant health and safety in 
the home. The new inspection model developed by HUD has updated 
standards and a well-defined list of itemized deficiencies enabling 
inspectors to make more accurate and objective decisions on a 
consistent basis. The new inspection model differs from the current HQS 
inspection model in that it incorporates standards based on UPCS and 
uses a classification system that collects a more detailed level of 
data resulting in a better representation of the condition of the unit.
    The new inspection protocol will capture levels of severity for 
line item deficiencies on an escalating scale of severity (L1, L2, L3). 
The classifications of minor (L1), major (L2) or significant (L3) would 
be used to determine the level of severity for each deficiency and to 
develop a unit condition index score. When considered in conjunction 
with a Pass/Fail determination, the unit condition index score would 
give residents, owners, PHAs, and HUD better insight into the overall 
condition of the unit. In addition to capturing a level of severity for 
all deficiencies, HUD will create a minimum, standardized list of life 
threatening items that PHAs participating in the demonstration must 
treat as ``24 Hour'' deficiencies.
    When an inspector finds Life Threatening or Emergency (LTE) 
deficiencies during an inspection, the inspector is to provide a list 
of such deficiencies to the responsible party--either tenant or owner--
for repair within 24 hours. A specific set of deficiencies that must be 
addressed within 24 hours is not currently defined in HQS. UPCS-V will 
provide a list of LTE categories to use when inspecting HCV units 
during the Demonstration. PHAs will be responsible for additional items 
to this list.

       General Categories of Life Threatening and Emergency Items
------------------------------------------------------------------------
                            Life threatening
-------------------------------------------------------------------------
[ballot] Natural or Liquid Petroleum (LP) gas leak or fumes
[ballot] Electrical problems which could result in shock or fire
[ballot] Inoperable/missing smoke or carbon monoxide detector
[ballot] Gas/Oil Fired Water Heater/HVAC with missing or misaligned
 chimney
[ballot] Fire extinguishers expired or missing
[ballot] Building lacks an alternate means of exit in case of fire/
 blocked egress
------------------------------------------------------------------------
                                Emergency
------------------------------------------------------------------------
[ballot] Missing entry door
[ballot] The HVAC system fails to meet established criteria for
 emergency heating or cooling with consideration for ambient temperature
 range and ventilation
[ballot] Absence of at least one functioning sink and toilet in unit
[ballot] No working refrigerator
[ballot] No working stove/oven or other method of heating/preparing food
[ballot] Waterlogged/damaged ceilings, floor or walls in imminent danger
 of potential collapse
[ballot] Major plumbing leaks or flooding
[ballot] Utilities not in service (e.g., electricity, gas (LP/natural),
 water or oil)
[ballot] No running hot water
[ballot] Structural integrity condition where the building, or a
 component of the building, is in imminent danger of potential collapse
------------------------------------------------------------------------

    With the inclusion of a level of severity classification and a 
standardized list of life threatening items, the inspection report will 
be able to provide a more detailed description of the unit.
    As part of the Demonstration, HUD will conduct extensive field 
tests of the standards and protocol with a representative sample of HCV 
units to verify that the UPCS-V model consistently, accurately, and 
objectively evaluates housing conditions. The feasibility of 
implementing the protocol will also be evaluated to identify potential 
barriers that would prevent PHAs from successfully implementing UPCS-V. 
After HUD's initial round of testing has been completed, PHAs 
participating in this component of the

[[Page 26762]]

Demonstration will conduct a portion, depending on the PHA's 
capabilities, of up to 100 percent of their required HCV physical 
inspections using UPCS-V in place of HQS. This component will continue 
throughout the up to three-year duration of the Demonstration until HUD 
has sufficient information to evaluate the success of PHAs using UPCS-V 
and assurance that the new method is achieving consistent results.
Component 2: Data Standardization and Information Exchange of UPCS-V 
Inspections
    UPCS-V is designed as an electronic inspection model. This 
component of the Demonstration will test the transition from a paper-
based to an electronic inspection approach. Initially, the UPCS-V 
inspections will be performed electronically using HUD-provided 
software, and all inspections will include photos of the most severe 
deficiencies. For PHAs with their own IT systems, including PHA-
produced or provided inspection software, HUD also will test the 
feasibility of different methods of transferring physical inspection 
information between PHA and HUD systems.
    PHAs participating in this component will be required to document 
and submit to HUD all UPCS-V inspections electronically. HUD 
anticipates that it will then review, analyze, and where appropriate, 
transform the inspection data into value-added information, such as a 
scoring report, healthy homes report, and relative risk reports, for 
electronic transmission back to the PHA for its use.
    PHAs participating in this component of the Demonstration and that 
use non-HUD provided software will be required to have and maintain the 
information technology resources and support necessary to interface 
with HUD's systems using industry standard file transfer protocols such 
as Simple Object Access Protocol (SOAP) and Representational State 
Transfer (REST) standards. Some data exchange may be via transfer of 
flat files.
Component 3: Oversight and Performance Improvement
    In this component of the Demonstration, HUD seeks to ensure PHAs 
are consistently identifying substandard housing, remedying such cases 
appropriately and in a timely manner, and accurately reporting HCV 
unit-based inspection outcomes to HUD. Selected PHAs will be required 
to participate in quality assurance and internal controls reviews, 
technical assistance, and training activities. As part of the 
Demonstration, HUD will analyze PHAs' capacity, competencies, 
inspection processes and systems that are in place to effectively 
manage and evaluate HCV units as decent, safe, and sanitary. Further, 
HUD will test the capacity of the UPCS-V model to identify properties 
that are at risk of falling into non-compliance before the next 
regularly scheduled biennial inspection.
    To develop an inspector performance baseline, HUD seeks to 
determine the acceptable variation between inspectors. HUD will conduct 
quality assurance inspections on HCV units to ensure inspector 
adherence to UPCS-V inspection standards and provide technical 
assistance where needed. HUD also will test both PHA and its own 
management controls to provide reasonable assurance that the process 
for planning, organizing, directing, and controlling the HCV unit-based 
inspection program will meet the requirements prescribed by UPCS-V.

C. Selection Criteria and General Participation Requirements

General Participation Requirements
    To participate in this Demonstration, a PHA must administer a 
housing choice voucher program. PHAs participating in any aspect of the 
Demonstration will be required to participate in focus groups, 
conference calls, and training sessions on policies and procedures. HUD 
will train each participating PHA's inspectors, administrators, and 
quality control staff on the new inspection protocol, including how to 
use the inspection software. The PHAs will be responsible for 
scheduling inspections with all the participants, assigning inspectors, 
and conducting inspections. The PHA must conduct at least 10 
inspections per week, and the geographic spread of those inspections 
should be such that 90 percent of inspections are accessible within a 
30 mile (or 1 hour) driving range.
    If selected, the PHA must participate in the Demonstration 
throughout the duration of the testing period for at least one (1) 
calendar year with the possibility of an extension, as determined by 
HUD, for a maximum total of three (3) years. PHAs that participate will 
also need to provide an internet connected, internet operating system 
(iOS) or Android based electronic handheld device (smart phone or 
tablet) for each PHA staff inspector participating with capability to 
download the required HUD-provided inspection software.
Selection Criteria
    All PHAs must meet, at minimum, the general participation 
requirements described above. The strategic objectives for the 
Demonstration are for HUD to identify a diverse set of participants 
that will be representative of the different types of PHAs, properties 
and tenants found nationwide. HUD will use the following criteria to 
consider PHAs that have expressed an interest in participating in the 
Demonstration to ensure that participants represent the universe of 
PHAs that run HCV programs.
    Participants will be selected based on the characteristics of the 
organization (PHA) and the type of properties and tenants it 
administers:
    1. Characteristics of the PHA:
     Is the PHA a local or state agency?
     What percentage of HQS inspections are conducted annually? 
Biennially?
     What percentage of the HCV housing stock is urban and what 
percentage is rural?
     What percentage of the PHAs inspections are HCV 
inspections?
     What is the number of monthly HCV inspections conducted?
    2. Characteristics of the Properties & Tenants:
     What is the number of HCV voucher holders?
     What is the average rent amount?
     What is the percentage of PHA's HCV program that is 
Veterans Affairs Supportive Housing (VASH), Family Unification Program 
(FUP), and Non-Elderly Disabled (NED) participants?
     What is the average HCV family size?
     What type of housing is leased by HCV participants (single 
family, apartment, condo, high-rise, row house, duplex, townhouse, 
etc.)?
     What is the average age of the housing stock?
     What is the HCV tenant mix (by age, disability, elderly, 
family type, children, income level/hap amount)?
    The criteria are designed to capture the variation in PHAs and 
market characteristics that could affect the implementation of UPCS-V. 
Depending on the applications for participation received and the 
characteristics of the PHAs applying, the criteria may be adjusted to 
more accurately represent the diversity of PHAs. Not all 250 
participants may be selected in the first round of testing. 
Accordingly, as the Demonstration proceeds, HUD may expand the number 
of participating PHAs, revise the selection criteria, or both, to 
reflect HUD's experience in implementing the Demonstration.

[[Page 26763]]

IV. Evaluating the Demonstration

    The Demonstration will provide HUD insight into the UPCS-V model, 
including its ability to expand HUD's oversight and risk management 
capabilities through a reliable, repeatable inspection process that 
better identifies health and safety risks to families, before 
implementing such a program nationwide. The Demonstration is 
anticipated to begin 60 days following the date of publication of this 
notice, with PHAs being added on a rolling basis until a representative 
sample has been reached. At the conclusion of the demonstration, HUD 
will assess its success and determine whether to implement UPCS-V on a 
permanent basis throughout the country.
    In the evaluation of the Demonstration, HUD will assess such 
factors as whether the use of the new UPCS-V protocol produces (1) more 
consistent and accurate results, (2) data standardization and a 
reliable method for information exchange, and (3) increased oversight 
and administration of the HCV Program. The demonstration also will 
review the feasibility of a PHA to implement the UPCS-V protocol, a 
factor HUD considers necessary for an accurate evaluation of the 
Demonstration's success.

V. Solicitation of Public Comment

    In accordance with section 470 of the Housing and Urban-Rural 
Recovery Act of 1983 (42 U.S.C. 3542), HUD is seeking comment on the 
Demonstration. Section 470 provides that HUD may not begin a 
demonstration program not expressly authorized by statute until a 
description of the demonstration program is published in the Federal 
Register and a 60-day period expires following the date of publication, 
during which time HUD solicits public comment and considers the 
comments submitted. HUD has established a public comment period of 60 
days. The public comment period provided allows HUD the opportunity to 
consider those comments during the 60-day period, and be in a position 
to commence implementation of the demonstration following the 
conclusion of the 60-day period.
    While HUD solicits comment on all aspects of the Demonstration, HUD 
specifically solicits comment on the following:
    1. HUD is considering selecting for participation only PHAs that do 
not utilize contract inspectors. Are there any instances where an 
exception to this criterion might be useful?
    2. Will utilizing commercial, off-the-shelf hardware, such as 
internet connected tablets or smartphones, reduce the barriers to 
participation for PHAs as opposed to having PHAs use more specific 
devices such as those required for other HUD UPCS inspections?
    3. Are there other PHA characteristics that HUD should consider in 
selecting PHAs to participate in the demonstration?
    4. Are there other revisions outside of the UPCS criteria that HUD 
should consider when moving toward a single inspection protocol?
    HUD requests that PHAs interested in participating in the 
Demonstration notify HUD by the public comment deadline for this 
Demonstration notice by emailing HUD at [email protected], and providing 
the PHA name, PHA address, contact name, contact phone number, and 
email address.

     Dated: April 28, 2016.
Lourdes Castro Ram[iacute]rez,
Principal Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2016-10460 Filed 5-3-16; 8:45 am]
 BILLING CODE 4210-67-P



                                                                                  Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules                                                                  26759

                                                                    WHOLE BLOOD AND BLOOD COMPONENTS STORAGE TEMPERATURES AND DATING PERIODS—Continued
                                                                                    A                                                                  B                                                        C

                                                                                Product                                                   Storage temperature                                             Dating period

                                                                                                                                       Cryoprecipitated AHF

                                                      Cryoprecipitated AHF .........................................     ¥18 °C or colder .............................................   1 year from date of collection of source blood
                                                                                                                                                                                            or from date of collection of oldest source
                                                                                                                                                                                            blood in pre-storage pool.

                                                                                                                                         Source Leukocytes

                                                      Source Leukocytes .............................................    Temperature appropriate for final product .......                In lieu of expiration date, the collection date
                                                                                                                                                                                            must appear on the label.
                                                         1 The   abbreviation ‘‘do.’’ for ditto is used in the table to indicate that the previous line is being repeated.


                                                        Dated: April 27, 2016.                                          Comments’’ section. There are two                                 HUD Headquarters building, an advance
                                                      Leslie Kux,                                                       methods for submitting public                                     appointment to review the public
                                                      Associate Commissioner for Policy.                                comments.                                                         comments must be scheduled by calling
                                                      [FR Doc. 2016–10386 Filed 5–3–16; 8:45 am]                           1. Submission of Comments by Mail.                             the Regulations Division at (202) 708–
                                                      BILLING CODE 4164–01–P
                                                                                                                        Comments may be submitted by mail to                              3055 (this is not a toll-free number).
                                                                                                                        the Regulations Division, Office of                               Copies of all comments submitted are
                                                                                                                        General Counsel, Department of                                    available for inspection and
                                                                                                                        Housing and Urban Development, 451                                downloading at http://
                                                      DEPARTMENT OF HOUSING AND                                         7th Street SW., Room 10276,                                       www.regulations.gov.
                                                      URBAN DEVELOPMENT                                                 Washington, DC 20410–0500. Due to
                                                                                                                        security measures at all federal agencies,                        FOR FURTHER INFORMATION CONTACT:
                                                      24 CFR Part 982                                                                                                                     Daniel R. Williams, Real Estate
                                                                                                                        however, submission of comments by
                                                      [Docket No. FR–5928–N–01]                                         mail often results in delayed delivery.                           Assessment Center, Office of Public and
                                                                                                                        To ensure timely receipt of comments,                             Indian Housing, Department of Housing
                                                      Notice of Demonstration To Test                                   HUD recommends that comments                                      and Urban Development, 550 12th
                                                      Proposed New Method of Assessing                                  submitted by mail be submitted at least                           Street SW., Suite 100, Washington DC
                                                      the Physical Conditions of Voucher-                               two weeks in advance of the public                                20410–4000; telephone number 202–
                                                      Assisted Housing                                                  comment deadline.                                                 475–8586 (this is not a toll-free
                                                                                                                           2. Electronic Submission of                                    number). Persons with hearing or
                                                      AGENCY:  Office of the Assistant                                                                                                    speech impairments may contact this
                                                                                                                        Comments. Interested persons may
                                                      Secretary for Public and Indian                                                                                                     number via TTY by calling the toll-free
                                                                                                                        submit comments electronically through
                                                      Housing, HUD.                                                                                                                       Federal Relay Service at 800–877–8339.
                                                                                                                        the Federal eRulemaking Portal at
                                                      ACTION: Notice.                                                   http://www.regulations.gov. HUD                                   SUPPLEMENTARY INFORMATION:
                                                      SUMMARY:   Through this document, HUD                             strongly encourages commenters to
                                                                                                                        submit comments electronically.                                   I. Structure of the Notice
                                                      solicits comment on a demonstration
                                                      designed to test a new method of                                  Electronic submission of comments                                    The following four sections discuss
                                                      assessing the physical condition of                               allows the commenter maximum time to                              the background through the solicitation
                                                      housing assisted by HUD vouchers                                  prepare and submit a comment, ensures                             of comments. Section II below provides
                                                      (voucher-assisted housing). In the Joint                          timely receipt by HUD, and enables                                background information on oversight of
                                                      Explanatory Statement accompanying                                HUD to make comments immediately                                  the Housing Choice Voucher inspection
                                                      the act appropriating funds for HUD in                            available to the public. Comments                                 program and explains the origins of the
                                                      Fiscal Year (FY 2016), Congress directed                          submitted electronically through the                              Uniform Physical Condition Standards
                                                      HUD to implement a single inspection                              http://www.regulations.gov Web site can                           for Vouchers (UPCS–V), an alternative
                                                      protocol for public housing and voucher                           be viewed by other commenters and                                 approach for ensuring safe, habitable
                                                      units. This demonstration would                                   interested members of the public.                                 voucher-assisted housing. In Section III,
                                                      commence the process for implementing                             Commenters should follow instructions                             the notice explains the three main areas
                                                      a single inspection protocol.                                     provided on that site to submit                                   that will be evaluated during the
                                                                                                                        comments electronically.                                          demonstration, which are: The objective
                                                      DATES: Comments Due Date: July 5,
                                                                                                                          Note: To receive consideration as public                        condition standards including a list of
                                                      2016.                                                                                                                               life threatening and emergency items
                                                                                                                        comments, comments must be submitted
                                                      ADDRESSES:   Interested persons are                               using one of the two methods specified                            that must be addressed, the revised
                                                      invited to submit comments to the                                 above. Again, all submissions must refer to                       information technology (IT) processes,
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                                                      Office of the General Counsel,                                    the docket number and title of the notice.                        and the new oversight approach. Also in
                                                      Regulations Division, Department of                                  No Facsimile Comments. Facsimile                               Section III, HUD discusses the general
                                                      Housing and Urban Development, 451                                (fax) comments are not acceptable.                                public housing agency (PHA)
                                                      7th Street SW., Room 10276,                                          Public Inspection of Comments. All                             participation criteria it will use to select
                                                      Washington, DC 20410–0500.                                        comments and communications                                       a representative mix of volunteer PHAs.
                                                      Communications should refer to the                                submitted to HUD will be available, for                           In Section IV, HUD describes the
                                                      above docket number and title and                                 public inspection and copying between                             process by which HUD will assess the
                                                      should contain the information                                    8 a.m. and 5 p.m. weekdays at the above                           results of the demonstration. In the last
                                                      specified in the ‘‘Request for                                    address. Due to security measures at the                          section of this notice, Section V, HUD


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                                                      26760                   Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules

                                                      solicits public comment generally as                    exposure of families to health and safety             family housing and voucher programs,
                                                      well as on several questions of specific                hazards.                                              and will test the UPCS–V inspection
                                                      interest.                                                 At the conclusion of the quality                    model’s ability to assess the physical
                                                                                                              control review, HUD accelerated the                   condition of assisted housing, improve
                                                      II. Background
                                                                                                              search for a replacement to the Housing               service delivery, enhance oversight and
                                                         HUD’s Housing Choice Voucher                         Quality Standards, leading to the                     risk management capabilities, and better
                                                      (HCV) program serves approximately 2.2                  eventual development of UPCS–V. In                    identify health and safety hazards in the
                                                      million households nationwide. The                      the Joint Explanatory Statement                       home.
                                                      HCV program is administered by PHAs                     accompanying the Consolidated
                                                      at the State and local levels and allows                Appropriations Act of 2016, Public Law                B. The New Inspection Model and
                                                      participants the opportunity to rent                    114–113, approved December 18, 2015,                  Demonstration Protocols
                                                      from private landlords in the                           Congress directed HUD to implement a
                                                      neighborhood of their choosing. The                     single inspection protocol for public                   Under this Demonstration, HUD will
                                                      goal of the HCV program is to enable                    housing and voucher units.4 This                      test, for up to three years, with up to 250
                                                      access to decent, safe and sanitary                     demonstration would commence the                      PHAs, the UPCS–V model as a new
                                                      affordable housing for low-income                       process for implementing a single                     method of assessing the physical
                                                      families. In the 1970’s HUD established                 inspection protocol by soliciting PHAs                condition of voucher-assisted housing.
                                                      housing quality standards (HQS) in                      to voluntarily move to the single                       In addition to hands-on training and
                                                      accordance with the U.S. Housing Act of                 inspection protocol, conduct field                    technical assistance that will be
                                                      1937 (1937 Act) (42 U.S.C. 1437 et seq.).               testing, and participate in oversight and             provided by HUD to participating PHAs,
                                                      Section 8(o)(8)(B) of the 1937 Act (42                  monitoring activities related to the new              some additional benefits of participating
                                                      U.S.C. 1437f(o)(8)(B)), directs HUD to                  standard. In addition to improving                    in the Demonstration include the
                                                      establish standards for safe and                        outcomes for families and aligning
                                                      habitable housing. These standards are                                                                        opportunity to provide input to HUD on
                                                                                                              program standards, this demonstration
                                                      codified in HUD regulations at 24 CFR                                                                         further refining the UPCS–V standards
                                                                                                              will provide valuable feedback to HUD
                                                      982.401. PHAs use these standards to                    about how to efficiently and effectively              and processes, and the ability to
                                                      determine if housing meets the                          implement UPCS–V at all PHAs.                         evaluate, test, and refine internal PHA
                                                      minimum criteria necessary for the                      Congress has provided HUD with                        systems and processes.
                                                      safety and habitability of occupants                    funding to improve its oversight of the                 There are three components to the
                                                      assisted under the program.                             HCV inspection program and to move                    Demonstration, each of which may run
                                                         The HUD Office of Inspector General                  the inspection standard for the HCV                   concurrently:
                                                      (OIG) has released several audit reports                program to one that is consistent with
                                                      and evaluations that identified                                                                               • Evaluation of Revised Inspection
                                                                                                              other affordable housing programs and
                                                      weakness in the HCV inspection                          that incorporates modern health and                     Model (UPCS–V)
                                                      program.1 These OIG reports and other                   safety practices.5                                    • Data Standardization and Information
                                                      factors led to the report of the Senate                                                                         Exchange
                                                      Committee on Appropriations, Report                     III. The Demonstration
                                                                                                                                                                    • Oversight and Performance
                                                      113–045, that accompanied the Senate                    A. Overview                                             Improvement
                                                      bill for HUD’s 2014 appropriations, and
                                                                                                                 In response to Congressional direction
                                                      directed HUD to ‘‘. . . move to a                                                                             Component 1: Evaluation of the Revised
                                                                                                              and HUD’s own goal to improve the
                                                      consistent inspection standard across                                                                         Inspection Model (UPCS–V)
                                                                                                              effectiveness of the inspection of public
                                                      housing assistance programs, as well as
                                                                                                              and assisted housing while minimizing
                                                      [for] oversight of Section 8 units.’’ 2 In                                                                      For the past 17 years, HUD has used
                                                                                                              burdens, HUD is developing a new
                                                      response to this directive, HUD                                                                               the UPCS protocol when conducting
                                                                                                              inspection and oversight approach
                                                      conducted a quality assurance review of                                                                       over 310,000 physical inspections of
                                                                                                              called UPCS–V. UPCS–V incorporates
                                                      HCV units using its current HQS                                                                               public housing (PH) and subsidized
                                                                                                              housing health and safety constructs,
                                                      inspection model.3 The results of these                                                                       multifamily housing (MFH)
                                                                                                              concepts from the Uniform Physical
                                                      inspections showed that the current                                                                           developments, solidifying UPCS as the
                                                                                                              Condition Standard (UPCS), codified in
                                                      HQS protocol lacked objective, well-                                                                          industry standard for government-
                                                                                                              HUD regulations at 24 CFR 5.703, and
                                                      defined deficiency descriptions, was                                                                          assisted and affordable housing
                                                                                                              HQS, codified at 24 CFR 982.401. The
                                                      unable to capture granular unit                                                                               inspections. HUD leveraged its
                                                                                                              new UPCS–V will include deficiency
                                                      conditions, and relied on a paper                                                                             experience with UPCS and developed a
                                                                                                              definitions and decision criteria, and
                                                      inspection form. In addition, there was                                                                       product tailored to the objectives of the
                                                                                                              tailored standards and protocols to
                                                      an absence of modern health standards                                                                         HCV program. The scope of the
                                                                                                              better meet HCV program needs. The
                                                      such as carbon monoxide detectors and
                                                                                                              UPCS protocol is currently recognized                 inspection, the procedural guidelines,
                                                      sprinkler systems, and an absence of a
                                                                                                              by industry stakeholders as the                       and the individual deficiencies have
                                                      universal list of life threatening or
                                                                                                              benchmark for government-assisted and                 been modified to emphasize those areas
                                                      emergency deficiencies. HUD
                                                                                                              affordable housing inspections. This                  that present the highest risk of harm to
                                                      determined that these factors resulted in
                                                                                                              Demonstration is the first step in
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                                                      inconsistent application of HQS                                                                               the family living in the HCV assisted
                                                                                                              implementing an aligned inspection                    unit.
                                                      standards, and there was potential for
                                                                                                              protocol for public housing/multi-
                                                      inconsistent housing outcomes and                                                                               UPCS–V seeks to utilize well-defined
                                                                                                                4 See page 41 of Division L of the FY2016 Joint     and objective deficiency descriptions
                                                        1 See e.g., HUD OIG Reports: 2008–AT–003;
                                                                                                              Explanatory Statement. See https://rules.house.gov/   that can be used consistently within and
                                                      2012–BO–1005.                                           bill/114/hr-2029-sa.
                                                        2 See page 100 of https://www.gpo.gov/fdsys/pkg/
                                                                                                                                                                    across PHAs. The following table
                                                                                                                5 See Title II of Division K of the FY2015 Joint
                                                      CRPT-113srpt45/pdf/CRPT-113srpt45.pdf.                                                                        summarizes some of the high-level
                                                                                                              Explanatory Statement. See https://
                                                        3 See http://portal.hud.gov/hudportal/HUD?src=/       www.congress.gov/congressional-record/2014/12/        similarities and differences between
                                                      program_offices/public_indian_housing/reac/oed.         11/house-section/article/H9307-1.                     UPCS–V and HQS.


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                                                                                     Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules                                                                                    26761

                                                                                                                                  Item                                                                                         HQS                 UPCS–V

                                                      Provides standardized list of deficiencies and measurable criteria ........................................................................                       ........................     X
                                                      Defined standardized list of Life Threatening and Emergency items .....................................................................                           ........................     X
                                                      Up-to-date health and safety standards ..................................................................................................................         ........................     X
                                                      Designed as a unit-based inspection standard for federally assisted units ............................................................                                       X                 X
                                                      Inspection standard aligned with other federally assisted programs ......................................................................                         ........................     X
                                                      Pass/Fail results for all deficiencies ........................................................................................................................              X                 X
                                                      PHA ability to adopt HUD-approved variances .......................................................................................................                          X                 X
                                                      Uniform inspector training and registration .............................................................................................................         ........................     X
                                                      Includes guidance through the use of decision trees that lead to more consistent observations ..........................                                          ........................     X
                                                      Captures level of severity for line item deficiencies ................................................................................................            ........................     X
                                                      Unit and room acceptability criteria .........................................................................................................................               X                 X
                                                      Standardized criteria for PHA submission of electronic inspection data to HUD ...................................................                                 ........................     X
                                                      Customized unit condition index to provide value added analytics of inspection data to PHAs and stakeholders                                                      ........................     X
                                                      Photo requirements for fail deficiencies ..................................................................................................................       ........................     X
                                                      Allow PHAs the use photo and document evidence to ensure all fail deficiencies have been mitigated ..............                                                 ........................     X



                                                         Like UPCS, HUD anticipates that the                                a better representation of the condition                               standardized list of life threatening
                                                      new inspection model will enable a                                    of the unit.                                                           items that PHAs participating in the
                                                      PHA inspector to more consistently                                      The new inspection protocol will                                     demonstration must treat as ‘‘24 Hour’’
                                                      identify and accurately describe those                                capture levels of severity for line item                               deficiencies.
                                                      items that pose a risk to tenant health                               deficiencies on an escalating scale of                                    When an inspector finds Life
                                                      and safety in the home. The new                                       severity (L1, L2, L3). The classifications                             Threatening or Emergency (LTE)
                                                      inspection model developed by HUD                                     of minor (L1), major (L2) or significant                               deficiencies during an inspection, the
                                                      has updated standards and a well-                                     (L3) would be used to determine the                                    inspector is to provide a list of such
                                                      defined list of itemized deficiencies                                 level of severity for each deficiency and                              deficiencies to the responsible party—
                                                      enabling inspectors to make more                                      to develop a unit condition index score.                               either tenant or owner—for repair
                                                      accurate and objective decisions on a                                 When considered in conjunction with a                                  within 24 hours. A specific set of
                                                      consistent basis. The new inspection                                  Pass/Fail determination, the unit                                      deficiencies that must be addressed
                                                                                                                            condition index score would give                                       within 24 hours is not currently defined
                                                      model differs from the current HQS
                                                                                                                            residents, owners, PHAs, and HUD                                       in HQS. UPCS–V will provide a list of
                                                      inspection model in that it incorporates
                                                                                                                            better insight into the overall condition                              LTE categories to use when inspecting
                                                      standards based on UPCS and uses a                                    of the unit. In addition to capturing a                                HCV units during the Demonstration.
                                                      classification system that collects a                                 level of severity for all deficiencies,                                PHAs will be responsible for additional
                                                      more detailed level of data resulting in                              HUD will create a minimum,                                             items to this list.
                                                                                                  GENERAL CATEGORIES OF LIFE THREATENING AND EMERGENCY ITEMS
                                                                                                                                                   Life threatening

                                                      b   Natural or Liquid Petroleum (LP) gas leak or fumes
                                                      b   Electrical problems which could result in shock or fire
                                                      b   Inoperable/missing smoke or carbon monoxide detector
                                                      b   Gas/Oil Fired Water Heater/HVAC with missing or misaligned chimney
                                                      b   Fire extinguishers expired or missing
                                                      b   Building lacks an alternate means of exit in case of fire/blocked egress

                                                                                                                                                      Emergency

                                                      b Missing entry door
                                                      b The HVAC system fails to meet established criteria for emergency heating or cooling with consideration for ambient temperature range and
                                                       ventilation
                                                      b Absence of at least one functioning sink and toilet in unit
                                                      b No working refrigerator
                                                      b No working stove/oven or other method of heating/preparing food
                                                      b Waterlogged/damaged ceilings, floor or walls in imminent danger of potential collapse
                                                      b Major plumbing leaks or flooding
                                                      b Utilities not in service (e.g., electricity, gas (LP/natural), water or oil)
                                                      b No running hot water
                                                      b Structural integrity condition where the building, or a component of the building, is in imminent danger of potential collapse
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                                                         With the inclusion of a level of                                     As part of the Demonstration, HUD                                    feasibility of implementing the protocol
                                                      severity classification and a                                         will conduct extensive field tests of the                              will also be evaluated to identify
                                                      standardized list of life threatening                                 standards and protocol with a                                          potential barriers that would prevent
                                                      items, the inspection report will be able                             representative sample of HCV units to                                  PHAs from successfully implementing
                                                      to provide a more detailed description                                verify that the UPCS–V model                                           UPCS–V. After HUD’s initial round of
                                                      of the unit.                                                          consistently, accurately, and objectively                              testing has been completed, PHAs
                                                                                                                            evaluates housing conditions. The                                      participating in this component of the



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                                                      26762                   Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules

                                                      Demonstration will conduct a portion,                   analyze PHAs’ capacity, competencies,                 Selection Criteria
                                                      depending on the PHA’s capabilities, of                 inspection processes and systems that                   All PHAs must meet, at minimum, the
                                                      up to 100 percent of their required HCV                 are in place to effectively manage and                general participation requirements
                                                      physical inspections using UPCS–V in                    evaluate HCV units as decent, safe, and               described above. The strategic objectives
                                                      place of HQS. This component will                       sanitary. Further, HUD will test the                  for the Demonstration are for HUD to
                                                      continue throughout the up to three-                    capacity of the UPCS–V model to                       identify a diverse set of participants that
                                                      year duration of the Demonstration until                identify properties that are at risk of               will be representative of the different
                                                      HUD has sufficient information to                       falling into non-compliance before the                types of PHAs, properties and tenants
                                                      evaluate the success of PHAs using                      next regularly scheduled biennial                     found nationwide. HUD will use the
                                                      UPCS–V and assurance that the new                       inspection.                                           following criteria to consider PHAs that
                                                      method is achieving consistent results.
                                                                                                                 To develop an inspector performance                have expressed an interest in
                                                      Component 2: Data Standardization and                   baseline, HUD seeks to determine the                  participating in the Demonstration to
                                                      Information Exchange of UPCS–V                          acceptable variation between inspectors.              ensure that participants represent the
                                                      Inspections                                             HUD will conduct quality assurance                    universe of PHAs that run HCV
                                                         UPCS–V is designed as an electronic                  inspections on HCV units to ensure                    programs.
                                                      inspection model. This component of                     inspector adherence to UPCS–V                           Participants will be selected based on
                                                      the Demonstration will test the                         inspection standards and provide                      the characteristics of the organization
                                                      transition from a paper-based to an                     technical assistance where needed. HUD                (PHA) and the type of properties and
                                                      electronic inspection approach.                         also will test both PHA and its own                   tenants it administers:
                                                      Initially, the UPCS–V inspections will                  management controls to provide                          1. Characteristics of the PHA:
                                                      be performed electronically using HUD-                  reasonable assurance that the process                   • Is the PHA a local or state agency?
                                                      provided software, and all inspections                  for planning, organizing, directing, and                • What percentage of HQS
                                                      will include photos of the most severe                  controlling the HCV unit-based                        inspections are conducted annually?
                                                      deficiencies. For PHAs with their own                   inspection program will meet the                      Biennially?
                                                      IT systems, including PHA-produced or                   requirements prescribed by UPCS–V.                      • What percentage of the HCV
                                                      provided inspection software, HUD also                                                                        housing stock is urban and what
                                                      will test the feasibility of different                  C. Selection Criteria and General                     percentage is rural?
                                                      methods of transferring physical                        Participation Requirements                              • What percentage of the PHAs
                                                      inspection information between PHA                                                                            inspections are HCV inspections?
                                                                                                              General Participation Requirements
                                                      and HUD systems.                                                                                                • What is the number of monthly
                                                         PHAs participating in this component                   To participate in this Demonstration,               HCV inspections conducted?
                                                      will be required to document and                        a PHA must administer a housing                         2. Characteristics of the Properties &
                                                      submit to HUD all UPCS–V inspections                    choice voucher program. PHAs                          Tenants:
                                                      electronically. HUD anticipates that it                 participating in any aspect of the                      • What is the number of HCV voucher
                                                      will then review, analyze, and where                    Demonstration will be required to                     holders?
                                                      appropriate, transform the inspection                   participate in focus groups, conference                 • What is the average rent amount?
                                                      data into value-added information, such                 calls, and training sessions on policies                • What is the percentage of PHA’s
                                                      as a scoring report, healthy homes                      and procedures. HUD will train each                   HCV program that is Veterans Affairs
                                                      report, and relative risk reports, for                  participating PHA’s inspectors,                       Supportive Housing (VASH), Family
                                                      electronic transmission back to the PHA                 administrators, and quality control staff             Unification Program (FUP), and Non-
                                                      for its use.                                            on the new inspection protocol,                       Elderly Disabled (NED) participants?
                                                         PHAs participating in this component                 including how to use the inspection                     • What is the average HCV family
                                                      of the Demonstration and that use non-                  software. The PHAs will be responsible                size?
                                                      HUD provided software will be required                  for scheduling inspections with all the                 • What type of housing is leased by
                                                      to have and maintain the information                    participants, assigning inspectors, and               HCV participants (single family,
                                                      technology resources and support                                                                              apartment, condo, high-rise, row house,
                                                                                                              conducting inspections. The PHA must
                                                      necessary to interface with HUD’s                                                                             duplex, townhouse, etc.)?
                                                                                                              conduct at least 10 inspections per
                                                      systems using industry standard file                                                                            • What is the average age of the
                                                                                                              week, and the geographic spread of
                                                      transfer protocols such as Simple Object                                                                      housing stock?
                                                                                                              those inspections should be such that 90
                                                      Access Protocol (SOAP) and                                                                                      • What is the HCV tenant mix (by age,
                                                                                                              percent of inspections are accessible
                                                      Representational State Transfer (REST)                                                                        disability, elderly, family type, children,
                                                                                                              within a 30 mile (or 1 hour) driving
                                                      standards. Some data exchange may be                                                                          income level/hap amount)?
                                                                                                              range.
                                                      via transfer of flat files.                                                                                     The criteria are designed to capture
                                                                                                                If selected, the PHA must participate               the variation in PHAs and market
                                                      Component 3: Oversight and                              in the Demonstration throughout the                   characteristics that could affect the
                                                      Performance Improvement                                 duration of the testing period for at least           implementation of UPCS–V. Depending
                                                        In this component of the                              one (1) calendar year with the                        on the applications for participation
                                                      Demonstration, HUD seeks to ensure                      possibility of an extension, as                       received and the characteristics of the
                                                      PHAs are consistently identifying                       determined by HUD, for a maximum                      PHAs applying, the criteria may be
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                                                      substandard housing, remedying such                     total of three (3) years. PHAs that                   adjusted to more accurately represent
                                                      cases appropriately and in a timely                     participate will also need to provide an              the diversity of PHAs. Not all 250
                                                      manner, and accurately reporting HCV                    internet connected, internet operating                participants may be selected in the first
                                                      unit-based inspection outcomes to HUD.                  system (iOS) or Android based                         round of testing. Accordingly, as the
                                                      Selected PHAs will be required to                       electronic handheld device (smart                     Demonstration proceeds, HUD may
                                                      participate in quality assurance and                    phone or tablet) for each PHA staff                   expand the number of participating
                                                      internal controls reviews, technical                    inspector participating with capability               PHAs, revise the selection criteria, or
                                                      assistance, and training activities. As                 to download the required HUD-                         both, to reflect HUD’s experience in
                                                      part of the Demonstration, HUD will                     provided inspection software.                         implementing the Demonstration.


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                                                                              Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules                                           26763

                                                      IV. Evaluating the Demonstration                        connected tablets or smartphones,                     may be hand-delivered Monday through
                                                         The Demonstration will provide HUD                   reduce the barriers to participation for              Friday between the hours of 8 a.m. and
                                                      insight into the UPCS–V model,                          PHAs as opposed to having PHAs use                    4 p.m. to CC:PA:LPD:PR (REG–114307–
                                                      including its ability to expand HUD’s                   more specific devices such as those                   15), Courier’s Desk, Internal Revenue
                                                      oversight and risk management                           required for other HUD UPCS                           Service, 1111 Constitution Avenue NW.,
                                                      capabilities through a reliable,                        inspections?                                          Washington, DC 20224 or sent
                                                      repeatable inspection process that better                 3. Are there other PHA characteristics              electronically, via the Federal
                                                      identifies health and safety risks to                   that HUD should consider in selecting                 eRulemaking Portal at http://
                                                      families, before implementing such a                    PHAs to participate in the                            www.regulations.gov/ (IRS REG–
                                                      program nationwide. The                                 demonstration?                                        114307–15).
                                                      Demonstration is anticipated to begin 60                  4. Are there other revisions outside of             FOR FURTHER INFORMATION CONTACT:
                                                      days following the date of publication of               the UPCS criteria that HUD should                     Concerning the proposed regulations,
                                                      this notice, with PHAs being added on                   consider when moving toward a single                  Andrew K. Holubeck at (202) 317–4774;
                                                      a rolling basis until a representative                  inspection protocol?                                  concerning submission of comments, or
                                                      sample has been reached. At the                           HUD requests that PHAs interested in                a request for a public hearing please
                                                      conclusion of the demonstration, HUD                    participating in the Demonstration                    contact Regina Johnson at (202) 317–
                                                      will assess its success and determine                   notify HUD by the public comment                      6901 (not toll-free numbers).
                                                      whether to implement UPCS–V on a                        deadline for this Demonstration notice                SUPPLEMENTARY INFORMATION:
                                                      permanent basis throughout the                          by emailing HUD at UPCSV@hud.gov,
                                                      country.                                                and providing the PHA name, PHA                       Background and Explanation of
                                                         In the evaluation of the                             address, contact name, contact phone                  Provisions
                                                      Demonstration, HUD will assess such                     number, and email address.                               Temporary regulations in the Rules
                                                      factors as whether the use of the new                     Dated: April 28, 2016.                              and Regulations section of this issue of
                                                      UPCS–V protocol produces (1) more                       Lourdes Castro Ramı́rez,                              the Federal Register amend the
                                                      consistent and accurate results, (2) data                                                                     Procedure and Administration
                                                                                                              Principal Deputy Assistant Secretary for
                                                      standardization and a reliable method                   Public and Indian Housing.                            Regulations (26 CFR part 301) relating to
                                                      for information exchange, and (3)                                                                             section 7701. The temporary regulations
                                                                                                              [FR Doc. 2016–10460 Filed 5–3–16; 8:45 am]
                                                      increased oversight and administration                                                                        clarify that an entity disregarded as
                                                                                                              BILLING CODE 4210–67–P
                                                      of the HCV Program. The demonstration                                                                         separate from its owner (a disregarded
                                                      also will review the feasibility of a PHA                                                                     entity), that is treated as a corporation
                                                      to implement the UPCS–V protocol, a                                                                           for purposes of employment taxes
                                                      factor HUD considers necessary for an                   DEPARTMENT OF THE TREASURY
                                                                                                                                                                    imposed under subtitle C, is not treated
                                                      accurate evaluation of the                                                                                    as a corporation for purposes of
                                                      Demonstration’s success.                                Internal Revenue Service
                                                                                                                                                                    employing its individual owner (who is
                                                      V. Solicitation of Public Comment                       26 CFR Part 301                                       treated as a sole proprietor) or for
                                                        In accordance with section 470 of the                                                                       purposes of employing an individual
                                                                                                              [REG–114307–15]                                       that is a partner in a partnership that
                                                      Housing and Urban-Rural Recovery Act
                                                      of 1983 (42 U.S.C. 3542), HUD is                        RIN 1545–BM77                                         owns the disregarded entity. Rather, the
                                                      seeking comment on the Demonstration.                                                                         entity is disregarded as an entity
                                                      Section 470 provides that HUD may not                   Self-Employment Tax Treatment of                      separate from its owner for this purpose.
                                                      begin a demonstration program not                       Partners in a Partnership That Owns a                 The partners are subject to the same
                                                      expressly authorized by statute until a                 Disregarded Entity                                    self-employment tax rules as partners in
                                                      description of the demonstration                                                                              a partnership that does not own an
                                                                                                              AGENCY:  Internal Revenue Service (IRS),              entity that is disregarded as separate
                                                      program is published in the Federal                     Treasury.
                                                      Register and a 60-day period expires                                                                          from its owner. The text of those
                                                                                                              ACTION: Notice of proposed rulemaking                 regulations also serves as the text of
                                                      following the date of publication, during               by cross-reference to temporary
                                                      which time HUD solicits public                                                                                these proposed regulations. The
                                                                                                              regulations.                                          preamble to the temporary regulations
                                                      comment and considers the comments
                                                      submitted. HUD has established a                                                                              explains the amendments.
                                                                                                              SUMMARY:   In the Rules and Regulations
                                                      public comment period of 60 days. The                   section of this issue of the Federal                  Special Analysis
                                                      public comment period provided allows                   Register, the IRS is issuing temporary
                                                      HUD the opportunity to consider those                                                                           Certain IRS regulations, including this
                                                                                                              regulations that clarify the employment               one, are exempt from the requirements
                                                      comments during the 60-day period,                      tax treatment of partners in a
                                                      and be in a position to commence                                                                              of Executive Order 12866, as
                                                                                                              partnership that owns a disregarded                   supplemented and reaffirmed by
                                                      implementation of the demonstration                     entity. These regulations affect partners
                                                      following the conclusion of the 60-day                                                                        Executive Order 13563. Therefore, a
                                                                                                              in a partnership that owns a disregarded              regulatory impact assessment is not
                                                      period.                                                 entity. The text of those temporary
                                                        While HUD solicits comment on all                                                                           required. It has also been determined
                                                                                                              regulations serves as the text of these               that section 553(b) of the Administrative
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      aspects of the Demonstration, HUD                       proposed regulations.
                                                      specifically solicits comment on the                                                                          Procedure Act (5 U.S.C. chapter 5) does
                                                                                                              DATES: Comments and requests for a                    not apply to these regulations, and
                                                      following:
                                                        1. HUD is considering selecting for                   public hearing must be received by                    because the regulations do not impose a
                                                      participation only PHAs that do not                     August 2, 2016.                                       collection of information on small
                                                      utilize contract inspectors. Are there                  ADDRESSES: Send submissions to:                       entities, the Regulatory Flexibility Act
                                                      any instances where an exception to this                CC:PA:LPD:PR (REG–114307–15), Room                    (5 U.S.C. chapter 6) does not apply.
                                                      criterion might be useful?                              5203, Internal Revenue Service, P.O.                  Pursuant to section 7805(f) of the
                                                        2. Will utilizing commercial, off-the-                Box 7604, Ben Franklin Station,                       Internal Revenue Code, this notice of
                                                      shelf hardware, such as internet                        Washington, DC 20044. Submissions                     proposed rulemaking will be submitted


                                                 VerDate Sep<11>2014   18:03 May 03, 2016   Jkt 238001   PO 00000   Frm 00017   Fmt 4702   Sfmt 4702   E:\FR\FM\04MYP1.SGM   04MYP1



Document Created: 2016-05-04 01:23:21
Document Modified: 2016-05-04 01:23:21
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
ActionNotice.
ContactDaniel R. Williams, Real Estate Assessment Center, Office of Public and Indian Housing, Department of Housing and Urban Development, 550 12th Street SW., Suite 100, Washington DC 20410-4000; telephone number 202-475-8586 (this is not a toll-free number). Persons with hearing or speech impairments may contact this number via TTY by calling the toll-free Federal Relay Service at 800-877-8339.
FR Citation81 FR 26759 

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