81 FR 31181 - Narrowing the Digital Divide Through Installation of Broadband Infrastructure in HUD-Funded New Construction and Substantial Rehabilitation of Multifamily Rental Housing

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 96 (May 18, 2016)

Page Range		31181-31192
FR Document		2016-11352

Through this proposed rule, HUD continues its efforts to narrow the digital divide in low-income communities served by HUD by providing, where feasible and with HUD funding, broadband infrastructure to communities in need of such infrastructure. Broadband is the common term used to refer to a very fast connection to the Internet. Such connection is also referred to as high-speed broadband, broadband Internet, or high-speed Internet. In this proposed rule, HUD proposes to require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing that is funded or supported by HUD. Installation of broadband infrastructure at the time of new construction or substantial rehabilitation is generally easier and less costly than when such installation is undertaken as a stand-alone effort. The proposed rule, however, recognizes that installation of broadband infrastructure may not be feasible for all new construction or substantial rehabilitation, and, therefore, the proposed rule allows limited exceptions to the installation requirements. Installing unit-based broadband infrastructure in multifamily rental housing that is newly constructed or substantially rehabilitated with or supported by HUD funding will provide a platform for individuals and families residing in such housing to participate in the digital economy, and increase their access to economic opportunities.

Federal Register, Volume 81 Issue 96 (Wednesday, May 18, 2016)

[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)]
[Proposed Rules]
[Pages 31181-31192]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-11352]

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Proposed Rules
Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 /
Proposed Rules

[[Page 31181]]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 5, 92, 93, 570, 574, 578, 880, 881, 883, 884, 886,
891, 905, 983

[Docket No. FR 5890-P-01]
RIN 2501-AD75

Narrowing the Digital Divide Through Installation of Broadband
Infrastructure in HUD-Funded New Construction and Substantial
Rehabilitation of Multifamily Rental Housing

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: Through this proposed rule, HUD continues its efforts to
narrow the digital divide in low-income communities served by HUD by
providing, where feasible and with HUD funding, broadband
infrastructure to communities in need of such infrastructure. Broadband
is the common term used to refer to a very fast connection to the
Internet. Such connection is also referred to as high-speed broadband,
broadband Internet, or high-speed Internet. In this proposed rule, HUD
proposes to require installation of broadband infrastructure at the
time of new construction or substantial rehabilitation of multifamily
rental housing that is funded or supported by HUD. Installation of
broadband infrastructure at the time of new construction or substantial
rehabilitation is generally easier and less costly than when such
installation is undertaken as a stand-alone effort. The proposed rule,
however, recognizes that installation of broadband infrastructure may
not be feasible for all new construction or substantial rehabilitation,
and, therefore, the proposed rule allows limited exceptions to the
installation requirements. Installing unit-based broadband
infrastructure in multifamily rental housing that is newly constructed
or substantially rehabilitated with or supported by HUD funding will
provide a platform for individuals and families residing in such
housing to participate in the digital economy, and increase their
access to economic opportunities.

DATES: Comment due date: July 18, 2016.

ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule. All communications must refer to the above docket
number and title. To receive consideration as public comments, comments
must be submitted through one of the two methods specified below.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW., Room 10276,
Washington, DC 20410-0500.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make comments immediately available
to the public. Comments submitted electronically through the
www.regulations.gov Web site can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
No Facsimiled Comments. Facsimiled (faxed) comments are not
acceptable.
Public Inspection of Public Comments. All properly submitted
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). Individuals with speech or hearing impairments
may access this number via TTY by calling the Federal Relay Service at
800-877-8339 (this is a toll-free number). Copies of all comments
submitted are available for inspection and downloading at
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For Community Planning and Development
programs, Marion McFadden, Office of Community Planning and
Development, Room 7204, telephone, 202-708-2111 (this is not a toll-
free number). For Office of Multifamily Housing programs, Katie
Buckner, Office of Housing, Room 6222, telephone 202-402-7140 (this is
not a toll-free number). For Office of Public and Indian Housing
programs, Dominique Blom, Office of Public and Indian Housing, Room
4130, telephone 202-402-4181 (this is not a toll-free number). The
address for all individuals is Department of Housing and Urban
Development, 451 7th Street SW., Washington, DC 20410-0500. Persons
with hearing or speech impairments may access these numbers through TTY
by calling the Federal Relay Service at 800-877-8339 (this is a toll-
free number).

SUPPLEMENTARY INFORMATION:

I. Executive Summary

A. Purpose of This Proposed Rule

The purpose of this proposed rule is to require installation of
broadband infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental housing that is funded or
supported by HUD.\1\ This rulemaking does not require a HUD-funded
grantee to undertake new construction or substantial rehabilitation,
but when a grantee does choose to pursue such activity for multifamily
rental housing with HUD funding, this proposed rule would require
installation of broadband infrastructure. While the proposed rule only
requires affected grantees to install one form of broadband
infrastructure, HUD suggests that grantees consider whether installing
more than one form of broadband infrastructure would be beneficial to
encourage competition among service providers on quality and price.
Installing unit-based broadband infrastructure in multifamily rental
housing that is newly constructed and

[[Page 31182]]

substantially rehabilitated with or supported by HUD funding will
provide a platform for individuals and families residing in such
housing to participate in the digital economy, and increase their
access to economic opportunities.
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\1\ This proposed rule applies to all projects with project-
based Section 8 housing assistance payment (HAP) contracts (other
than Mod Rehab or Mod Rehab Single Room Occupancy (SRO) projects),
regardless of whether the properties receive specific funding to pay
directly for substantial rehabilitation or new construction, as
defined in this proposed rule.
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B. Summary of Major Provisions of This Proposed Rule

This proposed rule would require installation of broadband
infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental units funded by the following
programs:
1. Choice Neighborhoods Implementation Grant program;
2. Community Development Block Grant (CDBG) program, including the
CDBG Disaster Recovery program;
3. Continuum of Care program;
4. HOME Investment Partnerships program;
5. Housing Opportunities for Persons With AIDS program;
6. Housing Trust Fund program;
7. Project-Based Voucher program;
8. Public Housing Capital Fund program;
9. Section 8 project-based housing assistance payments programs,
including, but not limited to, the Section 8 New Construction,
Substantial Rehabilitation, Loan Management Set-Aside, and Property
Disposition programs; and
10. Supportive Housing for the Elderly and Persons with
Disabilities program.
The requirements of the proposed rule would not apply to
multifamily rental housing that only has a mortgage insured by HUD's
Federal Housing Administration or with a loan guaranteed under a HUD
loan guarantee program.
HUD is proposing to define broadband infrastructure as cables,
fiber optics, wiring, or other permanent infrastructure, including
wireless infrastructure, as long as the installation results in
broadband infrastructure in each dwelling unit meeting the definition
created by the Federal Communications Commission (FCC), which currently
is 25 Megabits per second (Mbps) download, 3 Mbps upload. In addition,
HUD is proposing that, for programs that do not already have a
definition of substantial rehabilitation, substantial rehabilitation be
defined as work on the electrical system that is equal to or greater
than 75 percent of the cost of replacing the entire electrical system,
or when the cost of the rehabilitation is equal to or greater than 75
percent of the total estimated cost of replacing the multifamily rental
housing after the rehabilitation is complete.

C. Costs and Benefits of This Proposed Rule

The costs and benefits of this proposed rule are difficult to
quantify, but they can be described qualitatively. This proposed rule
only requires that the broadband infrastructure provided is to receive
high-speed Internet that is ``accessible'' in each unit; it does not
require those recipients of funding undertaking new construction or
substantial rehabilitation to provide a regular subscription to
broadband service (even at a cost) to current or future residents.
Furthermore, the definition of broadband infrastructure in the proposed
rule is broad enough to include coaxial cable television (TV) wiring
that supports cable modem access or even permanent infrastructure that
would provide broadband speeds to dwelling units wirelessly. The
rulemaking also provides for exceptions to the installation
requirements for where the installation is too costly to provide due to
location or building characteristics.
A recent survey by the National Association of Homebuilders found
that just 4 percent of the surveyed multifamily housing developers
never installed landline wires and jacks in multifamily units completed
in the past 12 months.\2\ In recent years, HUD's competitive grants for
new construction under the Choice Neighborhoods program have sought the
provision of broadband access. Therefore, this rulemaking simply
proposes to codify what is considered common practice in the private
market today when new construction or substantial rehabilitation is
undertaken.
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\2\ NAHB, Multifamily Market Survey 3rd Quarter 2015. November
2015. There were 90 responses, and of the responses, 18 percent
indicated it was Not Applicable, presumably because they had not
completed any projects in the past 12 months. The survey covers all
multifamily construction including lower quality Class B and Class
C. It does not provide details on the developers or projects that
did not install landlines.
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Given the wide range of technologies that may be employed to meet
the requirements of this proposed rule, it is not possible to specify
the cost of the technology and how much additional burden this may be
for owners or developers building or providing substantial
rehabilitation to HUD-assisted rental housing. If the broadband
infrastructure is wiring connected to proximate telephone or cable
company networks, the cost is not expected to be significant, as all
electrical work in a multifamily project is estimated to be only about
10 percent of the construction cost; \3\ running an additional cable
through existing electrical conduits would be a minimal incremental
cost. If the broadband infrastructure is wireless, the cost will be for
the equipment, which varies greatly by the design and size of the
project, as does the cost per unit. Given that the costs of
installation of broadband infrastructure are only a portion of the 10
percent of construction costs, the requirement proposed by this
rulemaking is not expected to measurably reduce the size of the housing
or the number of units to be constructed. At most, installation of
broadband infrastructure may reduce the provision of other amenities or
nonessential finishes, but HUD considers even these reductions.
Additionally, the proposed rule only applies to new construction or
substantial rehabilitation that is supported with HUD-provided
resources.
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\3\ 2015 National Building Cost Manual. Ed. Ben Moselle.
Carlsbad, CA: Craftsman Book Company. https://www.craftsman-book.com/media/static/previews/2015_NBC_book_preview.pdf, pg. 19.
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Materials on the benefits of narrowing the digital divide are
voluminous. Having broadband Internet in the home increases household
income \4\ and yields higher education achievement for students.\5\ On
July 2015, the Council of Economic Advisers issued the report ``Mapping
the Digital Divide,'' which examines progress in the United States in
narrowing the digital divide and the work that still needs to be done,
especially in the Nation's poorest neighborhoods and most rural
communities.\6\ However, this proposed rule's limited scope in only
requiring the installation of infrastructure instead of providing
Internet access also limits the benefits of the proposed rule. The
benefit of the proposed rule is that where broadband Internet service
can be made available, the tenant, residing in housing with broadband
infrastructure, will be assured of the ability to access broadband
Internet service, whether they choose and are able to afford Internet
service or not. This puts

[[Page 31183]]

broadband Internet service within reach, especially where other
charitable and public social programs, including HUD's ConnectHome
program, provide free or reduced-cost service.
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\4\ Ericsson, Arthur D. Little, and Chalmers University of
Technology. Socioeconomic Effects of Broadband Speed. September
2013. http://www.ericsson.com/res/thecompany/docs/corporate-responsibility/2013/ericsson-broadband-final-071013.pdf.
\5\ Davidson, Charles M. and Michael J. Santorelli. ``The Impact
of Broadband on Education.'' December 2010. https://www.uschamber.com/sites/default/files/legacy/about/US_Chamber_Paper_on_Broadband_and_Education.pdf, pg. 24.
\6\ See Council of Economic Advisers. ``Mapping the Digital
Divide.'' Issue Brief. July 2015. https://www.whitehouse.gov/sites/default/files/wh_digital_divide_issue_brief.pdf.
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II. Background

On March 23, 2015, President Obama issued a Presidential memorandum
on ``Expanding Broadband Deployment and Adoption by Addressing
Regulatory Barriers and Encouraging Investment and Training.'' \7\ In
this memorandum, the President noted that access to high-speed
broadband is no longer a luxury, but it is a necessity for American
families, businesses, and consumers. The President further noted that
the Federal Government has an important role to play in developing
coordinated policies to promote broadband deployment and adoption,
including promoting best practices, breaking down regulatory barriers,
and encouraging further investment.
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\7\ See Barack Obama. ``Presidential Memorandum--Expanding
Broadband Deployment and Adoption by Addressing Regulatory Barriers
and Encouraging Investment and Training.'' March 23, 2015. https://www.whitehouse.gov/the-press-office/2015/03/23/presidential-memorandum-expanding-broadband-deployment-and-adoption-addr.
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On July 15, 2015, HUD launched its Digital Opportunity
Demonstration, known as ``ConnectHome,'' in which HUD provided a
platform for collaboration among local governments, public housing
agencies, Internet service providers, philanthropic foundations,
nonprofit organizations, and other relevant stakeholders to work
together to produce local solutions for narrowing the digital divide in
communities across the nation served by HUD. The demonstration, or
pilot, commenced with the participation of 28 communities.\8\ Through
contributions made by the Internet service providers and other
organizations participating in the pilot, residents living in public
and HUD-assisted housing in these 28 communities will receive
discounted broadband service, technical assistance, literacy training,
and electronic devices that provide for accessing high-speed Internet.
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\8\ See Connect Home. ``About the Pilot.'' http://connecthome.hud.gov/pilot.
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The importance of all Americans having access to the Internet
cannot be overstated. As HUD stated in its announcement of the Digital
Opportunity Demonstration, published in the Federal Register on April
3, 2015, at 80 FR 18248, knowledge is a pillar to achieving the
American Dream--a catalyst for upward mobility as well as an investment
that ensures each generation has opportunities to succeed. Many low-
income Americans do not have broadband Internet at home, contributing
to the estimated 66 million Americans who lack basic digital literacy
skills.\9\ Without broadband adoption and the skills to use Internet
technology at home, children and adults can miss out on the high-value
educational, economic, and social impact that high-speed Internet
provides. It is for these reasons that HUD is exploring ways, beyond
ConnectHome, to narrow the digital divide for the low-income
individuals and families served by HUD multifamily rental housing
programs. This proposed rule presents one such additional effort.
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\9\ See Connect Minnesota. ``Digital Literacy: A Critical Skill
for all Minnesotans.'' July 2013. http://www.connectednation.org/sites/default/files/mn_digital_literacy_final.pdf.
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III. This Proposed Rule

A. Multifamily Rental Housing Covered by This Proposed Rule

This proposed rule would apply to new construction and substantial
rehabilitation of multifamily rental housing in the HUD programs that
authorize and fund such activities. These programs are listed in
Section II.B of this preamble. The proposed rule would not apply to
multifamily rental housing with a mortgage insured by HUD's Federal
Housing Administration (FHA) or with a loan guaranteed under a HUD loan
guarantee program.\10\ Further, this proposed rule would not apply to
new construction or substantial rehabilitation of single-family or
single-unit housing.
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\10\ See the Section 108 Loan Guarantee program, for which the
regulations are found in 24 CFR part 570, subpart M; the Loan
Guarantee program for Indian Housing, for which the regulations are
found in 24 CFR part 1005; the Section 184 Loan Guarantees for
Native Hawaiian Housing, for which the regulations are found in 24
CFR part 1007; and the Title VI Loan Guarantee Program, for which
the regulations are found in 24 CFR part 1000, subpart E.
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HUD proposes to require installation of broadband infrastructure in
individual housing units at the time of new construction or substantial
rehabilitation of multifamily rental housing, because while such
installation is not without cost, the cost can be reduced by providing
the installation at the time when housing is first being built or
substantially rehabilitated.

B. HUD Programs Covered by This Proposed Rule

As provided in section I.B. of this preamble, this proposed rule
would apply to multifamily rental housing that is to be newly
constructed or substantially rehabilitated with funds under the
following HUD programs, as implemented through the regulations or under
authorities cited below:
1. Choice Neighborhoods Implementation Grant program, for which the
requirements are found in HUD notices of funding availability (NOFAs);
2. Community Development Block Grant (CDBG) program, for which the
regulations are found in 24 CFR part 570;
3. Continuum of Care (CoC) program, for which the regulations are
found in 24 CFR part 578;
4. HOME Investment Partnerships (HOME) program, for which the
regulations are found in 24 CFR part 92;
5. Housing Opportunities for Persons With AIDS (HOPWA) program, for
which the regulations are found in 24 CFR part 574;
6. Housing Trust Fund (HTF) program, for which the regulations are
found in 24 CFR part 93;
7. Project-Based Voucher program, for which the regulations are
found in 24 CFR part 983;
8. Public Housing Capital Fund program, for which the regulations
are found in 24 CFR part 905;
9. Section 8 project-based housing assistance payments programs,
including, but not limited to, the Section 8 New Construction,
Substantial Rehabilitation, Loan Management Set-Aside, and Property
Disposition programs; and
10. Supportive Housing for the Elderly and Persons with
Disabilities program, for which the regulations are found in 24 CFR
part 891.
One of HUD's major new construction and substantial rehabilitation
programs, the Choice Neighborhoods program, already requires broadband
infrastructure in new construction units and permits the use of Choice
Neighborhood funds for broadband infrastructure in substantially
rehabilitated units. In addition, Choice Neighborhood grantees may use
up to 15 percent of their grants for Critical Community Improvements,
of which neighborhood broadband programs are considered an eligible
expense. The Choice Neighborhoods program supports locally driven
strategies to address struggling neighborhoods with distressed public
or HUD-assisted housing through a comprehensive approach to
neighborhood transformation. The program is designed to catalyze
critical improvements in neighborhood assets, including vacant
property, housing, services, and schools. One of the three core goals
of the Choice Neighborhoods program is to replace distressed public and
assisted housing with high-quality, mixed-income

[[Page 31184]]

housing.\11\ The Choice Neighborhoods program is implemented through
annual NOFAs. HUD's Fiscal Year (FY) 2014 Choice Neighborhoods NOFA
requires housing to be built with broadband Internet
infrastructure.\12\
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\11\ United States Department of Housing and Urban Development.
``Choice Neighborhoods.'' http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/cn.
\12\ See United States Department of Housing and Urban
Development. ``Choice Neighborhoods Planning Grants Notice of
Funding Availability.'' June 4, 2014. http://portal.hud.gov/hudportal/documents/huddoc?id=13CNP-FR5800N13.pdf.
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C. When Installation of Broadband Infrastructure May Be Infeasible

As noted in the Summary, HUD recognizes that installation of
broadband infrastructure will not be feasible for every new
construction or substantial rehabilitation of multifamily rental
housing proposed to be covered by this proposed rule. For example, HUD
recognizes that constructing or undertaking substantial rehabilitation
of multifamily rental housing in certain areas may make installation of
broadband infrastructure infeasible. As the Rural Utilities Service of
the U.S. Department of Agriculture (USDA) stated in a final rule
entitled ``Economic Benefits of Broadband Deployment in Rural Areas,''
published on February 6, 2013,\13\ bringing broadband services to rural
areas presents challenges because rural systems must contend with lower
household density than urban systems. Similarly, the particular type or
structure of covered multifamily rental housing to be substantially
rehabilitated may also make the installation of broadband
infrastructure infeasible. The proposed rule therefore offers
exceptions to broadband installation requirements when a funding
recipient determines that installing broadband infrastructure is not
feasible. Recipients and owners will be responsible for maintaining
documentation that justifies the recipient's determination of
infeasibility. HUD will consider providing additional guidance on this
issue when the final rule becomes effective.
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\13\ http://www.thefederalregister.org/fdsys/pkg/FR-2013-02-06/pdf/2013-02390.pdf.
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D. Rule Terminology

Broadband
As noted in the Summary, ``broadband'' is the common term used to
refer to a very fast connection to the Internet. Such connection is
also referred to as high-speed broadband or high-speed Internet. HUD
recognizes that broadband is defined by several agencies as Internet
access of at least a certain speed.\14\ HUD is proposing to require
that, where feasible, infrastructure be installed to provide every
housing unit covered by this proposed rule with the ability to access
the Internet that meets the definition adopted by the FCC--currently 25
Mbps download, 3 Mbps upload-- regardless of whether any Internet
service provider offers such access in a given location. This will
provide the capacity for future broadband adoption without having to
undertake additional renovation work. If the FCC modifies its
definitions in the future, HUD's requirements for any new construction
or substantial rehabilitation undertaken after the definition change
will also change.
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\14\ For example, see the U.S. Department of Agriculture
definition at 7 CFR 1738.2 (requiring download speeds of at least 4
Mbps, or the Federal Communications Commission's definition in its
2015 Broadband Progress Report at https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-10A1.pdf (defining broadband as having download
speeds of at least 25 Mbps).
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Broadband Infrastructure
The broadband infrastructure that needs to be installed to provide
families in covered multifamily rental housing with broadband access
will vary according to the housing being constructed or rehabilitated
and the plans of the entity doing such construction or rehabilitation.
Therefore, HUD proposes a flexible definition, allowing entities
undertaking new construction or substantial rehabilitation to install
the broadband infrastructure that is most feasible given the specifics
of the construction or substantial rehabilitation to be undertaken. HUD
proposes to require installation of cables, fiber optics, wiring, or
other infrastructure, as long as the installation results in broadband
accessibility in each dwelling unit. HUD proposes only to require the
installation of broadband infrastructure on the property, not to
require that grantees be responsible for ensuring an external
connection between the property and an Internet service provider (ISP).
Substantial Rehabilitation
While some of the HUD programs listed in Section II.B of this
preamble define what is meant by ``substantial rehabilitation,'' the
majority of the covered programs do not define this term. Therefore,
for the sole purpose of determining when substantial rehabilitation of
covered multifamily rental housing would trigger installation of
broadband infrastructure and, except in the HOPWA program, where
substantial rehabilitation is already defined, HUD proposes to define
``substantial rehabilitation'' to mean:
(1) Significant work on the electrical system of the multifamily
rental housing. ``Significant work'' is defined as work that is equal
to or greater than 75 percent of the cost of replacing the entire
electrical system. In the case of multifamily rental housing with
multiple buildings with more than 4 units, ``entire system'' refers to
the electrical system of the building(s) undergoing rehabilitation; or
(2) Rehabilitation of the multifamily rental housing in which the
estimated cost of the rehabilitation is equal to or greater than 75
percent of the total estimated cost of replacing the multifamily rental
housing after the rehabilitation is complete. In the case of
multifamily rental housing with multiple buildings with more than 4
units, the replacement cost used in this determination would be the
replacement cost of the building(s) undergoing rehabilitation.

E. Compliance Timeline

HUD intends for this proposed rule to apply to projects that have
not yet established their budgets and had funding approved, in order to
give recipients and owners adequate time to factor the installation of
broadband infrastructure into their new construction or substantial
rehabilitation plans.

F. Rule's Objective

With this proposed rule, HUD seeks to take another important step
toward narrowing the digital divide by providing residents in covered
multifamily rental housing that is to be newly constructed or
substantially rehabilitated with infrastructure that supports access to
broadband Internet service, thereby increasing access to educational
and economic opportunities for these residents.

IV. Specific Questions for Comments

While HUD welcomes comments on all aspects of this proposed rule,
HUD is seeking specific comment on the following questions:
1. In light of the policy objectives discussed in the preamble,
should this proposed rule be applied to other HUD programs,
particularly additional multifamily housing programs (such as Rental
Supplement (RS), Rental Assistance Payment (RAP), Moderate
Rehabilitation Programs (Mod Rehab), etc.) or programs addressing
single-family housing? Should any programs covered by this proposed
rule be removed?

[[Page 31185]]

2. Given that the definition of the term ``substantial
rehabilitation'' will determine which projects (other than new
construction) are affected by this rulemaking, should the definition be
changed in any way?
3. How much does it cost to add the installation of broadband
infrastructure to a pre-planned new construction or rehabilitation
project? Are HUD's estimates for the labor and materials costs for
installing broadband infrastructure accurate? What data can the public
share with HUD about the most cost-effective way for broadband
infrastructure to be installed during a new construction or
rehabilitation project?
4. The proposed rule provides exceptions to the requirements if
compliance would be infeasible due to cost, location, or structural
concerns. Are these exceptions too broad or too narrow? What is the
best way for grantees to demonstrate to HUD that installation of
broadband infrastructure is infeasible, and what would appropriate
sanctions be if grantees do not comply even if it was feasible? Do any
grantees have experience with a project in which installing broadband
infrastructure was physically or economically infeasible, and under
what circumstances was it infeasible?
5. When evaluating whether the rehabilitation being done meets the
threshold in the definition of substantial rehabilitation, should HUD
use the pre-rehabilitation estimates for the project alone, or should
HUD include increases in rehabilitation costs that arise in the process
of rehabilitation?

V. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned. Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. This proposed rule was determined to be a
``significant regulatory action'' as defined in section 3(f) of the
Executive order (although not an economically significant regulatory
action, as provided under section 3(f)(1) of the Executive order).
As discussed, this proposed rule furthers HUD's efforts to narrow
the digital divide in low-income communities served by HUD.
Specifically, HUD proposes to require installation of broadband
infrastructure at the time of new construction or substantial
rehabilitation of multifamily rental housing that is funded by HUD. As
noted in the Executive Summary, the costs and benefits of this proposed
rule are difficult to quantify, but they can be described
qualitatively.

A. Benefits

The evidence demonstrating the benefits of narrowing the digital
divide is well documented. In just one example, a study conducted by a
former Chair of the President's Council of Economic Advisers used data
on the amount of time Internet users spend online to estimate that
Internet access produces thousands of dollars of consumer surplus per
user each year.\15\ As noted above, however, the benefits of Internet
technology have not been evenly distributed and research shows that
there remain substantial disparities in both Internet use and the
quality of access. This digital deficit is generally concentrated among
older, less educated, and less affluent populations.\16\
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\15\ Council of Economic Advisers July 2015 report, supra,
citing Austan Goolsbee and Peter J. Klenow, Valuing Consumer
Products by the Time Spent Using Them: An Application to the
Internet National Bureau of Economic Research Working Paper No.
11995 (February 2006) available online at: http://www.nber.org/papers/w11995.
\16\ Ibid.
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HUD recognizes that the proposed rule's limited scope in only
requiring the installation of infrastructure, instead of providing
Internet access, also limits the benefits of the proposed rule.
Specifically, the benefit of the proposed rule is that where broadband
Internet can be made available at a limited price, the tenant, residing
in housing with broadband infrastructure, will be assured of the
ability to access broadband Internet service, whether they choose and
are able to afford Internet service or not. This proposed rule,
therefore, would put broadband Internet service within reach where
other charitable and public social programs, including HUD's
ConnectHome program, provide free or reduced cost service.

B. Costs

It is not possible to specify the exact costs that recipients and
owners may incur as a result of the proposed rule, given the variety of
available technologies that may be used to satisfy the new broadband
requirements. However, available data indicates that any costs
associated with this proposed rule will be minimal.
As is displayed on table I, broadband Internet access can be
provided using two general technologies: Wired and wireless, each with
several specific technologies. Broadband can be delivered over wired
lines using very-high-bit-rate digital subscriber lines (VDSL), cable
lines, power lines (BPL), or fiber optic platforms. Using wireless
technologies, broadband can be provided using satellite, fixed
wireless, mobile wireless, and Wi-Fi platforms.

Table I--Types of Broadband Technologies
----------------------------------------------------------------------------------------------------------------
Access requirement
-------------------------------------------------
Platform Connection type Not part of
Part of infrastructure infrastructure
----------------------------------------------------------------------------------------------------------------
Wired
Digital Subscriber Line (VDSL)....... Copper wire............ Yes.................... Router & Modem.
Cable Modem.......................... Copper wire............ Yes.................... Router & Modem.
Fiber................................ Fiber Optic wire....... Yes.................... Router & Modem.
Broadband over Power Lines (BPL)..... Copper wire............ Yes.................... Router & Modem.
Wireless
Satellite............................ Over the Air--satellite None................... Router & Modem.

[[Page 31186]]

Fixed Wireless....................... Over the Air--Longer None................... Router & Modem.
Range Directional
Equipment.
Mobile Wireless...................... Over the Air--Cellular. None................... Router & Modem.
Wireless Fidelity (WiFi)............. Over the Air--Short- None................... Router & Modem.
Range Wireless
Technology.
----------------------------------------------------------------------------------------------------------------

Whereas wired lines technologies may require some sort of physical
infrastructure consisting of internal wiring within the dwelling unit,
wireless technologies do not require any additional physical
infrastructure within the building. With wireless technology, the
signal travels through the air to the customer, who uses a connection
technology, such as a modem, to access the services. For wireless
technologies, the infrastructure cost to the property boundary
(connection to the service provider) is nil ($0). However, the
availability of wireless broadband service is limited and evolving, so
HUD expects many builders will opt to install wired broadband
infrastructure.
Building costs of installing wired infrastructure are limited to
in-dwelling wiring, as this is all that is required by the proposed
rule. Within the unit or the building, the electrical work consists of
running cable (meeting the requirements of category (Cat) 5e or Cat 6
wire), installing jacks and plates, and minor construction work (such
as drilling and patching walls). Fiber optic cables are rarely run in
the dwelling unit but are installed by the service provider outside the
unit; the non-fiber optic wiring then makes broadband accessible within
the unit. Depending on the market, some of the cost is also born by the
service provider.
The average per-unit cost for wiring for broadband Internet is
approximately $200 \17\ (see table II). These costs are simply
estimates of one method of complying with the requirements of the
proposed rule. Labor costs will also vary based on the region and
whether the installation is being done as part of substantial
rehabilitation or new construction. At most, installation of broadband
infrastructure may reduce the provision of other amenities or
nonessential finishes, but even these reductions are considered
unlikely.
---------------------------------------------------------------------------

\17\ http://www.homewyse.com/services/cost_to_install_electrical_wiring.html

Table II--Sample Cost To Install Electrical Wiring (1 Wiring)
----------------------------------------------------------------------------------------------------------------
Item Quantity Low High
----------------------------------------------------------------------------------------------------------------
Electrical Wiring Labor (Hours) 2.1 hours............................. $160.07 $205.10
Labor estimate to install electrical
wiring, route, secure, and connect new
NMB-B wiring run for single receptacle,
up to a 40' run. Includes planning,
equipment, and material acquisition,
area preparation and protection, setup
and cleanup.
Electrical Wiring Materials and Supplies 1 Wiring (unit)....................... 20.00 25.00
Cost of related materials and supplies
typically required to install
electrical wiring including connectors,
fittings, and mounting hardware.
-------------------------------
Total Costs (1 Wiring).............. ...................................... 180.07 230.10
----------------------------------------------------------------------------------------------------------------

HUD also notes that the proposed rule is drafted so as to minimize
the costs of the new installation requirements. For example, the
proposed rule does not mandate any rehabilitation or construction, and
the decision to undertake such activities appropriately remains with
recipients and owners. Rather, the scope of the proposed regulatory
changes is limited to requiring the installation of broadband
infrastructure if the recipient or owner elects to undertake new
construction or substantial rehabilitation. The proposed rule minimizes
the economic impacts on recipients and owners by recognizing that the
installation of broadband infrastructure is generally less burdensome
and costly at the time of new construction or substantial
rehabilitation than when such installation is undertaken as a stand-
alone effort.
Moreover, this proposed rule only requires the installation of
broadband infrastructure that is ``accessible'' in each unit. The
proposed rule does not require recipients or owners to provide a
regular subscription to broadband Internet service (even at a cost) to
residents. Also minimizing the economic costs of the proposed
regulatory changes is the fact that the proposed definition of
broadband infrastructure is broad enough to include cable television,
fiber optic cabling, and wireless infrastructure providing appropriate
broadband connectivity to the individual units. As discussed above in
this Executive Summary, multifamily HUD or standard- market new
construction typically provides telephone landline and cable TV
connectivity. Further, HUD's competitive grants for new construction
under the Choice Neighborhoods program have, in recent years, sought
the provision of broadband.
A review of HUD internal databases, summarized on table III, shows
that in 2013, the 58,677 units within the targeted programs were newly
constructed or rehabilitated. However, HUD's data did not contain
specific information to be able to determine how many of the units that
underwent rehabilitation met the definition of ``substantial
rehabilitation'' contained in the proposed rule, so the number of

[[Page 31187]]

affected units would be smaller than is contained in the table. In
addition, data on affected units newly constructed using CDBG funding
is unavailable, as grantee reports do not separate multifamily from
single-unit new construction.

Table III--HUD-Assisted New Construction and Substantial Rehabilitation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec. 8 Sec. 8 HOME
RAD 811 PRAC 202 PRAC 202 HOPE VI PIH CDBG Rental Totals
--------------------------------------------------------------------------------------------------------------------------------------------------------
New Construction
2012................................................. ......... 506 2,405 ......... 146 703
2013................................................. 110 583 2,034 ......... 44 297 ......... 19,424 22,492
2014................................................. 100 482 1,592 ......... ......... ......... ......... 11,596
Rehabilitation
2012................................................. ......... ......... 25 ......... ......... 36
2013................................................. 199 15 ......... 109 ......... 16 20,918 14,928 36,185
2014................................................. ......... 28 15 ......... ......... ......... 15,716 6,965
----------
FY 2013 Totals................................... ......... ......... ......... ......... ......... ......... ......... ......... 58,677
--------------------------------------------------------------------------------------------------------------------------------------------------------

Further, a review found that multifamily (5-plus unit) HUD or
standard-market new construction typically provides telephone landline
and many provide cable TV connectivity.\18\ A recent survey by the
National Association of Homebuilders found that just 4 percent of the
surveyed multifamily housing developers did not install landline wires
and jacks in multifamily units completed in the past 12
months.^{18 19} In recent years, HUD's competitive grants for
new construction under the Choice Neighborhoods program have required
the provision of broadband.\20\ Therefore, this proposed rule simply
codifies what is considered common practice in several programs.
---------------------------------------------------------------------------

\18\ For example under ``Class 4 Low Average Quality'' the
Craftsman 2015 National Building Cost Manual lists cable TV as a
standard feature. Only ``Class 5'' minimum quality does not list
cable or a computer network as a standard feature. All electrical
work is estimated to be 10 percent of project cost. 2015 National
Building Cost Manual, supra, p. 19.
\18\ NAHB, Multifamily Market Survey, supra.
\19\ Note that HUD's definition of accessibility is more
restrictive than the FCC's because HUD considers only the building
itself.
\20\ United States Department of Housing and Urban Development.
``Choice Neighborhoods Planning Grants Notice of Funding
Availability,'' supra, p. 32. ``Broadband Access. All FY2014 and
FY2015 Implementation Grantees will be required, as part of their
Transformation Plan, to include infrastructure that permits unit-
based access to broadband Internet connectivity in all new units.
Grantees may use Choice Neighborhoods funds to provide unit-based
broadband Internet connectivity, which includes the costs of
installing broadband infrastructure and hardware in units, but not
the costs of Internet service for residents. Regular and informed
Internet adoption can increase access to the job market, as well as
health, education, financial and other services. Further, in-home
broadband Internet access is an attractive, and in most cases,
standard amenity that can be used to market the mixed-income
community created through the Transformation Plan.''
---------------------------------------------------------------------------

Accordingly, most recipients and owners already meet the standards
established in the proposed rule, and the new regulatory requirements
will impose minimal, if any, new economic costs. HUD has addressed
those rare situations where the proposed new requirements may prove too
costly by granting exceptions to the installation requirements where
the installation is economically infeasible due to location or building
characteristics.
The docket file is available for public inspection in the
Regulations Division, Office of General Counsel, Department of Housing
and Urban Development, 451 7th Street SW., Room 10276, Washington, DC
20410-0500. Due to security measures at the HUD Headquarters building,
please schedule an appointment to review the docket file by calling the
Regulation Division at 202-708-3055 (this is not a toll-free number).
Individuals with speech or hearing impairments may access this number
via TTY by calling the Federal Relay Service at 800-877-8339 (this is a
toll-free number).
Impact on Small Entities
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
The proposed rule would provide that for new construction or
substantial rehabilitation of multifamily rental housing funded by HUD,
as part of the new construction or substantial rehabilitation to be
undertaken, such activity must include installation of broadband
infrastructure. None of the HUD-covered programs listed in this
proposed rule require a grantee to undertake new construction or
substantial rehabilitation. Instead, new construction and substantial
rehabilitation are eligible activities that grantees may take using HUD
funds. Therefore, small entities will not incur any costs than they
otherwise would incur by voluntarily undertaking new construction or
substantial rehabilitation, since the costs of these activities,
including the installation of broadband infrastructure, are funded by
HUD. For these reasons, this proposed rule will not have a significant
economic impact on a substantial number of small entities.
Notwithstanding HUD's determination that this proposed rule will
not have a significant economic effect on a substantial number of small
entities, HUD specifically invites comments regarding any less
burdensome alternatives to this proposed rule that will meet HUD's
objectives, as described in this preamble.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This proposed rule will not impose any Federal
mandates on any State, local, or tribal governments or the private
sector within the meaning of the UMRA.
Paperwork Reduction Act
The information collection requirements contained in this proposed
rule must be submitted to OMB under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) for review and approval. In accordance with the
Paperwork Reduction Act, an agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless the collection displays a currently valid OMB control number.

[[Page 31188]]

The burden of the information collections in this proposed rule is
estimated to be minimal. The reporting of new construction or
substantial rehabilitation activity under the programs covered by this
proposed rule is not increased through the installation of broadband
infrastructure. However, the information collection that is new is the
documentation required of the grantee that the location of proposed new
construction makes installation of broadband infrastructure infeasible,
or that the cost of installing the infrastructure would result in a
fundamental alteration in the nature of its program or activity or in
an undue financial burden. The total number of grantees that undertake
new construction or substantial rehabilitation, as defined in this
proposed rule, with HUD funds is currently low, and this is reflected
in the respondents.

Reporting and Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
Response
Information collection Number of frequency Burden hours Total burden
respondents (average) per response hours
----------------------------------------------------------------------------------------------------------------
Documentation of inability to undertake 1,000 1 2 2,000
installation of broadband infrastructure.......
---------------------------------------------------------------
Totals...................................... 1,000 1 2 2,000
----------------------------------------------------------------------------------------------------------------

In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments
from members of the public and affected agencies concerning this
collection of information to:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
(2) Evaluate the accuracy of the agency's estimate of the burden of
the proposed collection of information;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond; including through the use of appropriate automated
collection techniques or other forms of information technology, e.g.,
permitting electronic submission of responses.
Interested persons are invited to submit comments regarding the
information collection requirements in this proposed rule. Comments
must refer to the proposal by name and docket number (FR-5890-P-01) and
must be sent to: HUD Desk Officer, Office of Management and Budget, New
Executive Office Building, Washington, DC 20503, Fax number: 202-395-
6947, and Collette Pollard, Reports Liaison Officer, Department of
Housing and Urban Development, 451 7th Street SW., Washington, DC
20410.
Environmental Review
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations in 24 CFR
part 50 that implement section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available for
public inspection, during regular business hours, in the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW., Room 10276, Washington, DC 20410-0500,
or online at www.regulations.gov. Due to security measures at the HUD
Headquarters building, please schedule an appointment to review the
FONSI by calling the Regulations Division at 202-708-3055 (this is not
a toll-free number). Individuals with speech or hearing impairments may
access this number via TTY by calling the Federal Relay Service at 800-
877-8339 (this is a toll-free number).
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on State and local
governments and is not required by statute, or the rule preempts State
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive order. This proposed rule does not have
federalism implications and does not impose substantial direct
compliance costs on State and local governments nor preempt State law
within the meaning of the Executive order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers applicable to
the programs that would be affected by this rule are: 14.218, 14.225,
14.228, 14.239, 14.241, 14.267, 14.850, 14.871, and 14.872.

List of Subjects

24 CFR Part 5

Administrative practice and procedure, Aged, Claims, Crime,
Government contracts, Grant programs-housing and community development,
Individuals with disabilities, Intergovernmental relations, Loan
programs-housing and community development, Low and moderate income
housing, Mortgage insurance, Penalties, Pets, Public housing, Rent
subsidies, Reporting and recordkeeping requirements, Social security,
Unemployment compensation, Wages.

24 CFR Part 92

Administrative practice and procedure, Low and moderate income
housing, Manufactured homes, Rent subsidies, Reporting and
recordkeeping requirements.

24 CFR Part 93

Administrative practice and procedure, Grant programs-housing and
community development, Low and moderate income housing, Manufactured
homes, Rent subsidies, Reporting and recordkeeping requirements.

24 CFR Part 570

Administrative practice and procedure, American Samoa, Community
development block grants, Grant programs-education, Grant programs-
housing and community development, Guam, Indians, Loan programs-housing
and community development, Low and moderate income housing, Northern
Mariana Islands, Pacific Islands Trust Territory, Puerto Rico,
Reporting and recordkeeping requirements, Student aid, Virgin Islands.

24 CFR Part 574

Community facilities, Grant programs-housing and community
development, Grant programs-social programs, HIV/AIDS, Low and moderate
income housing, Reporting and recordkeeping requirements.

[[Page 31189]]

24 CFR Part 578

Community development, Community facilities, Grant programs-housing
and community development, Grant programs-social programs, Homeless,
Reporting and recordkeeping requirements.

24 CFR Part 880

Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.

24 CFR Part 881

Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.

24 CFR Part 883

Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.

24 CFR Part 884

Grant programs-housing and community development, Rent subsidies,
Reporting and recordkeeping requirements, Rural areas.

24 CFR Part 886

Grant programs-housing and community development, Lead poisoning,
Rent subsidies, Reporting and recordkeeping requirements.

24 CFR Part 891

Aged, Grant programs-housing and community development, Individuals
with disabilities, Loan programs-housing and community development,
Rent subsidies, Reporting and recordkeeping requirements.

24 CFR Part 905

Grant programs-housing and community development, Public housing,
Reporting and recordkeeping requirements.

24 CFR Part 983

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

Accordingly, for the reasons stated in the preamble, HUD proposes
to amend 24 CFR parts 5, 92, 93, 570, 574, 578, 880, 881, 883, 884,
886, 891, 905, and 983 as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

0
1. The authority citation for part 5 continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437n, 3535(d), Sec.
327, Pub. L. 109-115, 119 Stat. 2936, Sec. 607, Pub. L. 109-162, 119
Stat. 3051, E.O. 13279, and E.O. 13559.

0
2. In Sec. 5.100, add the definitions of ``Broadband infrastructure''
and ``Substantial rehabilitation'' in alphabetical order, to read as
follows:

Sec. 5.100 Definitions.

* * * * *
Broadband infrastructure means cables, fiber optics, wiring, or
other permanent (integral to the structure) infrastructure that is
capable of providing access to Internet connections in individual
housing units that meet the definition of ``advanced telecommunications
capability'' determined by the Federal Communications Commission under
section 706 of the Telecommunications Act of 1996 (47 U.S.C. 1302).
* * * * *
Substantial rehabilitation, for the purposes of determining when
installation of broadband infrastructure is required as part of
substantial rehabilitation of multifamily rental housing, unless
otherwise defined by a program, means work that involves:
(1) Significant work on the electrical system of the multifamily
rental housing. ``Significant work'' means complete replacement of the
electrical system or other work that is equal to or greater than 75
percent of the cost of replacing the entire electrical system. In the
case of multifamily rental housing with multiple buildings with more
than 4 units, ``entire system'' refers to the electrical system of the
building undergoing rehabilitation; or
(2) Rehabilitation of the multifamily rental housing in which the
estimated cost of the rehabilitation is equal to or greater than 75
percent of the total estimated cost of replacing the multifamily rental
housing after the rehabilitation is complete. In the case of
multifamily rental housing with multiple buildings with more than 4
units, the replacement cost must be the replacement cost of the
building undergoing rehabilitation.
* * * * *

PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM

0
3. The authority citation for part 92 continues to read as follows:

Authority: 42 U.S.C. 3535(d) and 12701-12839.

0
4. Amend Sec. 92.251 by revising the introductory text of (a)(2) and
adding paragraphs (a)(2)(vi) and (b)(1)(x) to read as follows:

Sec. 92.251 Property standards.

(a) * * *
(2) HUD requirements. All new construction projects must also meet
the requirements described in this paragraph:
* * *
(vi) Broadband infrastructure. If the housing is a building with
more than 4 rental units, the construction must include installation of
broadband infrastructure, as this term is defined in 24 CFR 5.100,
except where the participating jurisdiction documents that:
(A) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing the infrastructure would result in a
fundamental alteration in the nature of its program or activity or in
an undue financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. If the housing is a building with
more than 4 rental units, any substantial rehabilitation, as defined in
24 CFR 5.100, must provide for installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the participating jurisdiction documents that:
(A) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(C) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
* * * * *

PART 93--HOUSING TRUST FUND

0
5. The authority citation for part 93 continues to read as follows:

Authority: 42 U.S.C. 3535(d), 12 U.S.C. 4568.
0
6. Amend Sec. 93.301 by revising the introductory text of (a)(2) and
adding paragraphs (a)(2)(vi) and (b)(1)(x) to read as follows:

Sec. 93.301 Property standards.

[[Page 31190]]

include installation of broadband infrastructure, as this term is
defined in 24 CFR 5.100, except where the grantee documents that:
(A) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden.
(b) * * *
(1) * * *
(x) Broadband infrastructure. If the housing is a building with
more than 4 rental units, any substantial rehabilitation, as defined in
24 CFR 5.100, must provide for installation of broadband
infrastructure, as this term is defined in 24 CFR 5.100, except where
the grantee documents that:
(A) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(B) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(C) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
* * * * *

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

0
7. The authority citation for part 570 continues to read as follows:

Authority: 42 U.S.C. 3535(d) and 5301-5320.

0
8. In Sec. 570.202, add paragraph (g) to read as follows:

Sec. 570.202 Eligible rehabilitation and preservation activities.

* * * * *
(g) Broadband infrastructure. Any substantial rehabilitation, as
defined by 24 CFR 5.100, of a building with more than 4 rental units
must include installation of broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except where the grantee documents that:
(1) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
9. In Sec. 570.204 add paragraph (a)(5) to read as follows:

Sec. 570.204 Special activities by Community-Based Development
Organizations (CBDOs).

(a) * * *
(5) Any new construction or substantial rehabilitation, as defined
by 24 CFR 5.100, of a building with more than 4 rental units must
include installation of broadband infrastructure, as this term is also
defined in 24 CFR 5.100, except where the grantee documents that:
(i) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(ii) The cost of installing broadband infrastructure would result
in a fundamental alteration in the nature of its program or activity or
in an undue financial burden; or
(iii) The structure of the housing to be substantially
rehabilitated makes installation of broadband infrastructure
infeasible.
* * * * *
0
10. Add paragraph (c)(4) to Sec. 570.482 to read as follows:

Sec. 570.482 Eligible activities.

* * * * *
(c) * * *
(4) Broadband infrastructure in housing. Any new construction or
substantial rehabilitation, as defined by 24 CFR 5.100, of a building
with more than 4 rental units must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the State documents that:
(i) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(ii) The cost of installing broadband infrastructure would result
in a fundamental alteration in the nature of its program or activity or
in an undue financial burden; or
(iii) The structure of the housing to be substantially
rehabilitated makes installation of broadband infrastructure
infeasible.
* * * * *

PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

0
11. The authority citation for part 574 continues to read as follows:

Authority: 42 U.S.C. 3535(d) and 12901-12912.

0
12. Add Sec. 574.350 to subpart D to read as follows:

Sec. 574.350 Additional standards for broadband infrastructure.

Any new construction or substantial rehabilitation, as substantial
rehabilitation is defined by 24 CFR 574.3, of a building with more than
4 rental units must include installation of broadband infrastructure,
as this term is defined in 24 CFR 5.100, except where the grantee
documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.

PART 578--CONTINUUM OF CARE PROGRAM

0
13. The authority citation for part 578 continues to read as follows:

Authority: 42 U.S.C. 11371 et seq., 42 U.S.C. 3535(d).

0
14. In Sec. 578.45, add paragraph (d) to read as follows:

Sec. 578.45 Rehabilitation.

* * * * *
(d) Broadband infrastructure. Any substantial rehabilitation, as
defined by 24 CFR 5.100, of a building with more than 4 rental units
must include installation of broadband infrastructure, as this term is
also defined in 24 CFR 5.100, except where the grantee documents that:
(1) The location of the substantial rehabilitation makes
installation of broadband infrastructure infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
15. In Sec. 578.47, add paragraph (c) to read as follows:

Sec. 578.47 New construction.

* * * * *
(c) Broadband infrastructure. Any new construction of a building
with more than 4 rental units must include installation of broadband
infrastructure, as this term is defined in 24 CFR 5.100, except where
the grantee documents that:

[[Page 31191]]

(1) The location of the new construction makes installation of
broadband infrastructure infeasible; or
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden.

PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW
CONSTRUCTION

0
16. The authority citation for part 880 continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and
13611-13619.

0
17. Add Sec. 880.212 to subpart B to read as follows:

Sec. 880.212 Broadband infrastructure.

Any new construction or substantial rehabilitation, as defined by
24 CFR 5.100, of a building with more than 4 rental units must include
installation of broadband infrastructure, as this term is also defined
in 24 CFR 5.100, except where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.

PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR
SUBSTANTIAL REHABILITATION

0
18. The authority citation for part 881 continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and
13611-13619.

0
19. Add Sec. 881.212 to subpart B to read as follows:

Sec. 881.212 Broadband infrastructure.

PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE
HOUSING AGENCIES

0
20. The authority citation for part 883 continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

0
21. Add Sec. 883.314 to subpart C to read as follows:

Sec. 883.314 Broadband infrastructure.

PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW
CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING
PROJECTS

0
22. The authority citation for part 884 continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

0
23. Add Sec. 884.125 to subpart A to read as follows:

Sec. 884.125 Broadband infrastructure.

PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--SPECIAL
ALLOCATIONS

0
24. The authority citation for part 886 continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

0
25. Add Sec. 886.139 to subpart A to read as follows:

Sec. 886.139 Broadband infrastructure.

Sec. 886.339 Broadband infrastructure.

PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH
DISABILITIES

0
27. The authority citation for part 891 continues to read as follows:

Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.

[[Page 31192]]

0
28. In Sec. 891.120, add paragraph (f) to read as follows:

Sec. 891.120 Project design and cost standards.

* * * * *
(f) Broadband infrastructure. Any new construction or substantial
rehabilitation, as defined by 24 CFR 5.100, of a building with more
than 4 rental units must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the owner documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be substantially rehabilitated
makes installation of broadband infrastructure infeasible.
0
29. Add Sec. 891.550 to subpart E to read as follows:

Sec. 891.550 Broadband infrastructure.

PART 905--THE PUBLIC HOUSING CAPITAL FUND PROGRAM

0
30. The authority citation for part 905 continues to read as follows:

Authority: 42 U.S.C. 1437g, 42 U.S.C. 1437z-2, 42 U.S.C. 1437z-
7, and 3535(d).

0
31. In Sec. 905.312, add paragraph (e) to read as follows:

Sec. 905.312 Design and construction.

* * * * *
(e) Broadband infrastructure. Any new construction or substantial
rehabilitation, as defined in 24 CFR 5.100, of a building with more
than 4 rental units must include installation of broadband
infrastructure, as this term is also defined in 24 CFR 5.100, except
where the PHA documents that:
(1) The location of the new construction or substantial
rehabilitation makes installation of broadband infrastructure
infeasible;
(2) The cost of installing broadband infrastructure would result in
a fundamental alteration in the nature of its program or activity or in
an undue financial burden; or
(3) The structure of the housing to be rehabilitated makes
installation of broadband infrastructure infeasible.

PART 983--PROJECT-BASED VOUCHER (PBV) PROGRAM

0
32. The authority citation for part 983 continues to read as follows:

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

0
33. Add Sec. 983.157 to subpart D to read as follows:

Sec. 983.157 Broadband infrastructure.

Dated: April 21, 2016.
Juli[aacute]n Castro,
Secretary.
[FR Doc. 2016-11352 Filed 5-17-16; 8:45 am]
BILLING CODE 4210-67-P

31181

Proposed Rules Federal Register
Vol. 81, No. 96

Wednesday, May 18, 2016

This section of the FEDERAL REGISTER a platform for individuals and families and downloading at
contains notices to the public of the proposed residing in such housing to participate www.regulations.gov.
issuance of rules and regulations. The in the digital economy, and increase
purpose of these notices is to give interested FOR FURTHER INFORMATION CONTACT: For
their access to economic opportunities. Community Planning and Development
persons an opportunity to participate in the
rule making prior to the adoption of the final DATES: Comment due date: July 18, programs, Marion McFadden, Office of
rules. 2016. Community Planning and Development,
Room 7204, telephone, 202–708–2111
ADDRESSES: Interested persons are
(this is not a toll-free number). For
invited to submit comments regarding
DEPARTMENT OF HOUSING AND Office of Multifamily Housing programs,
this proposed rule. All communications
URBAN DEVELOPMENT Katie Buckner, Office of Housing, Room
must refer to the above docket number
6222, telephone 202–402–7140 (this is
24 CFR Parts 5, 92, 93, 570, 574, 578, and title. To receive consideration as
not a toll-free number). For Office of
880, 881, 883, 884, 886, 891, 905, 983 public comments, comments must be
Public and Indian Housing programs,
submitted through one of the two
[Docket No. FR 5890–P–01] Dominique Blom, Office of Public and
methods specified below.
Indian Housing, Room 4130, telephone
RIN 2501–AD75 1. Submission of Comments by Mail. 202–402–4181 (this is not a toll-free
Comments may be submitted by mail to number). The address for all individuals
Narrowing the Digital Divide Through the Regulations Division, Office of is Department of Housing and Urban
Installation of Broadband General Counsel, Department of Development, 451 7th Street SW.,
Infrastructure in HUD-Funded New Housing and Urban Development, 451 Washington, DC 20410–0500. Persons
Construction and Substantial 7th Street SW., Room 10276, with hearing or speech impairments
Rehabilitation of Multifamily Rental Washington, DC 20410–0500. may access these numbers through TTY
Housing 2. Electronic Submission of by calling the Federal Relay Service at
AGENCY: Office of the Secretary, HUD. Comments. Interested persons may 800–877–8339 (this is a toll-free
submit comments electronically through number).
ACTION: Proposed rule.
the Federal eRulemaking Portal at
SUPPLEMENTARY INFORMATION:
SUMMARY: Through this proposed rule, www.regulations.gov. HUD strongly
HUD continues its efforts to narrow the encourages commenters to submit I. Executive Summary
digital divide in low-income comments electronically. Electronic
A. Purpose of This Proposed Rule
communities served by HUD by submission of comments allows the
providing, where feasible and with HUD commenter maximum time to prepare The purpose of this proposed rule is
funding, broadband infrastructure to and submit a comment, ensures timely to require installation of broadband
communities in need of such receipt by HUD, and enables HUD to infrastructure at the time of new
infrastructure. Broadband is the make comments immediately available construction or substantial
common term used to refer to a very fast to the public. Comments submitted rehabilitation of multifamily rental
connection to the Internet. Such electronically through the housing that is funded or supported by
connection is also referred to as high- www.regulations.gov Web site can be HUD.1 This rulemaking does not require
speed broadband, broadband Internet, or viewed by other commenters and a HUD-funded grantee to undertake new
high-speed Internet. In this proposed interested members of the public. construction or substantial
rule, HUD proposes to require Commenters should follow the rehabilitation, but when a grantee does
installation of broadband infrastructure instructions provided on that site to choose to pursue such activity for
at the time of new construction or submit comments electronically. multifamily rental housing with HUD
substantial rehabilitation of multifamily No Facsimiled Comments. Facsimiled funding, this proposed rule would
rental housing that is funded or (faxed) comments are not acceptable. require installation of broadband
supported by HUD. Installation of Public Inspection of Public infrastructure. While the proposed rule
only requires affected grantees to install
broadband infrastructure at the time of Comments. All properly submitted
one form of broadband infrastructure,
new construction or substantial comments and communications
HUD suggests that grantees consider
rehabilitation is generally easier and submitted to HUD will be available for
whether installing more than one form
less costly than when such installation public inspection and copying between
of broadband infrastructure would be
is undertaken as a stand-alone effort. 8 a.m. and 5 p.m. weekdays at the above
beneficial to encourage competition
The proposed rule, however, recognizes address. Due to security measures at the
among service providers on quality and
that installation of broadband HUD Headquarters building, an advance
price. Installing unit-based broadband
infrastructure may not be feasible for all appointment to review the public
infrastructure in multifamily rental
new construction or substantial comments must be scheduled by calling
housing that is newly constructed and
rehabilitation, and, therefore, the the Regulations Division at 202–708–
ehiers on DSK5VPTVN1PROD with PROPOSALS

proposed rule allows limited exceptions 3055 (this is not a toll-free number). 1 This proposed rule applies to all projects with
to the installation requirements. Individuals with speech or hearing project-based Section 8 housing assistance payment
Installing unit-based broadband impairments may access this number (HAP) contracts (other than Mod Rehab or Mod
infrastructure in multifamily rental via TTY by calling the Federal Relay Rehab Single Room Occupancy (SRO) projects),
regardless of whether the properties receive specific
housing that is newly constructed or Service at 800–877–8339 (this is a toll- funding to pay directly for substantial rehabilitation
substantially rehabilitated with or free number). Copies of all comments or new construction, as defined in this proposed
supported by HUD funding will provide submitted are available for inspection rule.

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31182 Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules

substantially rehabilitated with or multifamily rental housing after the only about 10 percent of the
supported by HUD funding will provide rehabilitation is complete. construction cost; 3 running an
a platform for individuals and families additional cable through existing
C. Costs and Benefits of This Proposed
residing in such housing to participate electrical conduits would be a minimal
Rule
in the digital economy, and increase incremental cost. If the broadband
their access to economic opportunities. The costs and benefits of this infrastructure is wireless, the cost will
proposed rule are difficult to quantify, be for the equipment, which varies
B. Summary of Major Provisions of This but they can be described qualitatively. greatly by the design and size of the
Proposed Rule This proposed rule only requires that project, as does the cost per unit. Given
This proposed rule would require the broadband infrastructure provided is that the costs of installation of
installation of broadband infrastructure to receive high-speed Internet that is broadband infrastructure are only a
at the time of new construction or ‘‘accessible’’ in each unit; it does not portion of the 10 percent of construction
substantial rehabilitation of multifamily require those recipients of funding costs, the requirement proposed by this
rental units funded by the following undertaking new construction or rulemaking is not expected to
programs: substantial rehabilitation to provide a measurably reduce the size of the
1. Choice Neighborhoods regular subscription to broadband housing or the number of units to be
Implementation Grant program; service (even at a cost) to current or constructed. At most, installation of
2. Community Development Block future residents. Furthermore, the broadband infrastructure may reduce
Grant (CDBG) program, including the definition of broadband infrastructure in the provision of other amenities or
CDBG Disaster Recovery program; the proposed rule is broad enough to nonessential finishes, but HUD
3. Continuum of Care program; include coaxial cable television (TV) considers even these reductions.
4. HOME Investment Partnerships wiring that supports cable modem Additionally, the proposed rule only
program; access or even permanent infrastructure applies to new construction or
5. Housing Opportunities for Persons that would provide broadband speeds to substantial rehabilitation that is
With AIDS program; dwelling units wirelessly. The supported with HUD-provided
6. Housing Trust Fund program; rulemaking also provides for exceptions resources.
7. Project-Based Voucher program; to the installation requirements for Materials on the benefits of narrowing
where the installation is too costly to the digital divide are voluminous.
8. Public Housing Capital Fund
provide due to location or building Having broadband Internet in the home
program;
characteristics. increases household income 4 and yields
9. Section 8 project-based housing
A recent survey by the National higher education achievement for
assistance payments programs,
Association of Homebuilders found that students.5 On July 2015, the Council of
including, but not limited to, the
just 4 percent of the surveyed Economic Advisers issued the report
Section 8 New Construction, Substantial
multifamily housing developers never ‘‘Mapping the Digital Divide,’’ which
Rehabilitation, Loan Management Set-
installed landline wires and jacks in examines progress in the United States
Aside, and Property Disposition in narrowing the digital divide and the
programs; and multifamily units completed in the past
12 months.2 In recent years, HUD’s work that still needs to be done,
10. Supportive Housing for the especially in the Nation’s poorest
Elderly and Persons with Disabilities competitive grants for new construction
under the Choice Neighborhoods neighborhoods and most rural
program. communities.6 However, this proposed
The requirements of the proposed rule program have sought the provision of
broadband access. Therefore, this rule’s limited scope in only requiring
would not apply to multifamily rental the installation of infrastructure instead
housing that only has a mortgage rulemaking simply proposes to codify
what is considered common practice in of providing Internet access also limits
insured by HUD’s Federal Housing the benefits of the proposed rule. The
Administration or with a loan the private market today when new
construction or substantial benefit of the proposed rule is that
guaranteed under a HUD loan guarantee where broadband Internet service can be
program. rehabilitation is undertaken.
Given the wide range of technologies made available, the tenant, residing in
HUD is proposing to define housing with broadband infrastructure,
broadband infrastructure as cables, fiber that may be employed to meet the
requirements of this proposed rule, it is will be assured of the ability to access
optics, wiring, or other permanent broadband Internet service, whether
infrastructure, including wireless not possible to specify the cost of the
technology and how much additional they choose and are able to afford
infrastructure, as long as the installation Internet service or not. This puts
results in broadband infrastructure in burden this may be for owners or
each dwelling unit meeting the developers building or providing 3 2015 National Building Cost Manual. Ed. Ben
definition created by the Federal substantial rehabilitation to HUD- Moselle. Carlsbad, CA: Craftsman Book Company.
Communications Commission (FCC), assisted rental housing. If the broadband https://www.craftsman-book.com/media/static/
which currently is 25 Megabits per infrastructure is wiring connected to previews/2015_NBC_book_preview.pdf, pg. 19.
second (Mbps) download, 3 Mbps proximate telephone or cable company 4 Ericsson, Arthur D. Little, and Chalmers

networks, the cost is not expected to be University of Technology. Socioeconomic Effects of
upload. In addition, HUD is proposing Broadband Speed. September 2013. http://
that, for programs that do not already significant, as all electrical work in a www.ericsson.com/res/thecompany/docs/corporate-
have a definition of substantial multifamily project is estimated to be responsibility/2013/ericsson-broadband-final-
071013.pdf.
rehabilitation, substantial rehabilitation
ehiers on DSK5VPTVN1PROD with PROPOSALS

2 NAHB, Multifamily Market Survey 3rd Quarter 5 Davidson, Charles M. and Michael J. Santorelli.
be defined as work on the electrical 2015. November 2015. There were 90 responses, ‘‘The Impact of Broadband on Education.’’
system that is equal to or greater than 75 and of the responses, 18 percent indicated it was December 2010. https://www.uschamber.com/sites/
percent of the cost of replacing the Not Applicable, presumably because they had not default/files/legacy/about/US_Chamber_Paper_on_
entire electrical system, or when the completed any projects in the past 12 months. The Broadband_and_Education.pdf, pg. 24.
survey covers all multifamily construction 6 See Council of Economic Advisers. ‘‘Mapping
cost of the rehabilitation is equal to or including lower quality Class B and Class C. It does the Digital Divide.’’ Issue Brief. July 2015. https://
greater than 75 percent of the total not provide details on the developers or projects www.whitehouse.gov/sites/default/files/wh_digital_
estimated cost of replacing the that did not install landlines. divide_issue_brief.pdf.

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31184 Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules

housing.11 The Choice Neighborhoods agencies as Internet access of at least a defined, HUD proposes to define
program is implemented through annual certain speed.14 HUD is proposing to ‘‘substantial rehabilitation’’ to mean:
NOFAs. HUD’s Fiscal Year (FY) 2014 require that, where feasible, (1) Significant work on the electrical
Choice Neighborhoods NOFA requires infrastructure be installed to provide system of the multifamily rental
housing to be built with broadband every housing unit covered by this housing. ‘‘Significant work’’ is defined
Internet infrastructure.12 proposed rule with the ability to access as work that is equal to or greater than
the Internet that meets the definition 75 percent of the cost of replacing the
C. When Installation of Broadband
adopted by the FCC—currently 25 Mbps entire electrical system. In the case of
Infrastructure May Be Infeasible
download, 3 Mbps upload— regardless multifamily rental housing with
As noted in the Summary, HUD of whether any Internet service provider multiple buildings with more than 4
recognizes that installation of offers such access in a given location. units, ‘‘entire system’’ refers to the
broadband infrastructure will not be This will provide the capacity for future electrical system of the building(s)
feasible for every new construction or broadband adoption without having to undergoing rehabilitation; or
substantial rehabilitation of multifamily undertake additional renovation work. If (2) Rehabilitation of the multifamily
rental housing proposed to be covered the FCC modifies its definitions in the rental housing in which the estimated
by this proposed rule. For example, future, HUD’s requirements for any new cost of the rehabilitation is equal to or
HUD recognizes that constructing or construction or substantial greater than 75 percent of the total
undertaking substantial rehabilitation of rehabilitation undertaken after the estimated cost of replacing the
multifamily rental housing in certain definition change will also change. multifamily rental housing after the
areas may make installation of rehabilitation is complete. In the case of
broadband infrastructure infeasible. As Broadband Infrastructure
multifamily rental housing with
the Rural Utilities Service of the U.S. The broadband infrastructure that multiple buildings with more than 4
Department of Agriculture (USDA) needs to be installed to provide families units, the replacement cost used in this
stated in a final rule entitled ‘‘Economic in covered multifamily rental housing determination would be the
Benefits of Broadband Deployment in with broadband access will vary replacement cost of the building(s)
Rural Areas,’’ published on February 6, according to the housing being undergoing rehabilitation.
2013,13 bringing broadband services to constructed or rehabilitated and the
rural areas presents challenges because plans of the entity doing such E. Compliance Timeline
rural systems must contend with lower construction or rehabilitation. HUD intends for this proposed rule to
household density than urban systems. Therefore, HUD proposes a flexible apply to projects that have not yet
Similarly, the particular type or definition, allowing entities undertaking established their budgets and had
structure of covered multifamily rental new construction or substantial funding approved, in order to give
housing to be substantially rehabilitated rehabilitation to install the broadband recipients and owners adequate time to
may also make the installation of infrastructure that is most feasible given factor the installation of broadband
broadband infrastructure infeasible. The the specifics of the construction or infrastructure into their new
proposed rule therefore offers substantial rehabilitation to be construction or substantial
exceptions to broadband installation undertaken. HUD proposes to require rehabilitation plans.
requirements when a funding recipient installation of cables, fiber optics,
determines that installing broadband wiring, or other infrastructure, as long F. Rule’s Objective
infrastructure is not feasible. Recipients as the installation results in broadband With this proposed rule, HUD seeks to
and owners will be responsible for accessibility in each dwelling unit. HUD take another important step toward
maintaining documentation that proposes only to require the installation narrowing the digital divide by
justifies the recipient’s determination of of broadband infrastructure on the providing residents in covered
infeasibility. HUD will consider property, not to require that grantees be multifamily rental housing that is to be
providing additional guidance on this responsible for ensuring an external newly constructed or substantially
issue when the final rule becomes connection between the property and an rehabilitated with infrastructure that
effective. Internet service provider (ISP). supports access to broadband Internet
D. Rule Terminology Substantial Rehabilitation service, thereby increasing access to
educational and economic opportunities
Broadband While some of the HUD programs
for these residents.
listed in Section II.B of this preamble
As noted in the Summary, define what is meant by ‘‘substantial IV. Specific Questions for Comments
‘‘broadband’’ is the common term used rehabilitation,’’ the majority of the
to refer to a very fast connection to the While HUD welcomes comments on
covered programs do not define this
Internet. Such connection is also all aspects of this proposed rule, HUD
term. Therefore, for the sole purpose of
referred to as high-speed broadband or is seeking specific comment on the
determining when substantial
high-speed Internet. HUD recognizes following questions:
rehabilitation of covered multifamily
that broadband is defined by several 1. In light of the policy objectives
rental housing would trigger installation
discussed in the preamble, should this
of broadband infrastructure and, except
11 United States Department of Housing and proposed rule be applied to other HUD
Urban Development. ‘‘Choice Neighborhoods.’’ in the HOPWA program, where
programs, particularly additional
http://portal.hud.gov/hudportal/HUD?src=/ substantial rehabilitation is already
multifamily housing programs (such as
ehiers on DSK5VPTVN1PROD with PROPOSALS

program_offices/public_indian_housing/programs/
ph/cn. 14 For example, see the U.S. Department of Rental Supplement (RS), Rental
12 See United States Department of Housing and
Agriculture definition at 7 CFR 1738.2 (requiring Assistance Payment (RAP), Moderate
Urban Development. ‘‘Choice Neighborhoods download speeds of at least 4 Mbps, or the Federal Rehabilitation Programs (Mod Rehab),
Planning Grants Notice of Funding Availability.’’ Communications Commission’s definition in its etc.) or programs addressing single-
June 4, 2014. http://portal.hud.gov/hudportal/ 2015 Broadband Progress Report at https://
documents/huddoc?id=13CNP-FR5800N13.pdf. apps.fcc.gov/edocs_public/attachmatch/FCC-15-
family housing? Should any programs
13 http://www.gpo.gov/fdsys/pkg/FR-2013-02-06/ 10A1.pdf (defining broadband as having download covered by this proposed rule be
pdf/2013-02390.pdf. speeds of at least 25 Mbps). removed?

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31186 Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules

TABLE I—TYPES OF BROADBAND TECHNOLOGIES—Continued
Access requirement
Platform Connection type Part of Not part of
infrastructure infrastructure

Fixed Wireless ....................................... Over the Air—Longer Range Direc- None ...................... Router & Modem.
tional Equipment.
Mobile Wireless ..................................... Over the Air—Cellular ........................... None ...................... Router & Modem.
Wireless Fidelity (WiFi) ......................... Over the Air—Short-Range Wireless None ...................... Router & Modem.
Technology.

Whereas wired lines technologies may builders will opt to install wired on the market, some of the cost is also
require some sort of physical broadband infrastructure. born by the service provider.
infrastructure consisting of internal Building costs of installing wired The average per-unit cost for wiring
wiring within the dwelling unit, infrastructure are limited to in-dwelling
for broadband Internet is approximately
wireless technologies do not require any wiring, as this is all that is required by
$200 17 (see table II). These costs are
additional physical infrastructure the proposed rule. Within the unit or
the building, the electrical work consists simply estimates of one method of
within the building. With wireless
technology, the signal travels through of running cable (meeting the complying with the requirements of the
the air to the customer, who uses a requirements of category (Cat) 5e or Cat proposed rule. Labor costs will also vary
connection technology, such as a 6 wire), installing jacks and plates, and based on the region and whether the
modem, to access the services. For minor construction work (such as installation is being done as part of
wireless technologies, the infrastructure drilling and patching walls). Fiber optic substantial rehabilitation or new
cost to the property boundary cables are rarely run in the dwelling construction. At most, installation of
(connection to the service provider) is unit but are installed by the service broadband infrastructure may reduce
nil ($0). However, the availability of provider outside the unit; the non-fiber the provision of other amenities or
wireless broadband service is limited optic wiring then makes broadband nonessential finishes, but even these
and evolving, so HUD expects many accessible within the unit. Depending reductions are considered unlikely.

TABLE II—SAMPLE COST TO INSTALL ELECTRICAL WIRING (1 WIRING)
Item Quantity Low High

Electrical Wiring Labor (Hours) 2.1 hours ................... $160.07 $205.10
Labor estimate to install electrical wiring, route, secure, and connect new NMB–B wir-
ing run for single receptacle, up to a 40’ run. Includes planning, equipment, and
material acquisition, area preparation and protection, setup and cleanup.
Electrical Wiring Materials and Supplies 1 Wiring (unit) ............ 20.00 25.00
Cost of related materials and supplies typically required to install electrical wiring in-
cluding connectors, fittings, and mounting hardware.

Total Costs (1 Wiring) .............................................................................................. .................................... 180.07 230.10

HUD also notes that the proposed rule rehabilitation than when such Summary, multifamily HUD or
is drafted so as to minimize the costs of installation is undertaken as a stand- standard- market new construction
the new installation requirements. For alone effort. typically provides telephone landline
example, the proposed rule does not Moreover, this proposed rule only and cable TV connectivity. Further,
mandate any rehabilitation or requires the installation of broadband HUD’s competitive grants for new
construction, and the decision to infrastructure that is ‘‘accessible’’ in construction under the Choice
undertake such activities appropriately each unit. The proposed rule does not Neighborhoods program have, in recent
remains with recipients and owners. require recipients or owners to provide years, sought the provision of
Rather, the scope of the proposed a regular subscription to broadband broadband.
regulatory changes is limited to Internet service (even at a cost) to A review of HUD internal databases,
requiring the installation of broadband residents. Also minimizing the summarized on table III, shows that in
infrastructure if the recipient or owner economic costs of the proposed 2013, the 58,677 units within the
elects to undertake new construction or regulatory changes is the fact that the targeted programs were newly
substantial rehabilitation. The proposed proposed definition of broadband constructed or rehabilitated. However,
rule minimizes the economic impacts infrastructure is broad enough to HUD’s data did not contain specific
ehiers on DSK5VPTVN1PROD with PROPOSALS

on recipients and owners by recognizing include cable television, fiber optic information to be able to determine how
that the installation of broadband cabling, and wireless infrastructure many of the units that underwent
infrastructure is generally less providing appropriate broadband rehabilitation met the definition of
burdensome and costly at the time of connectivity to the individual units. As ‘‘substantial rehabilitation’’ contained in
new construction or substantial discussed above in this Executive the proposed rule, so the number of

17 http://www.homewyse.com/services/cost_to_

install_electrical_wiring.html

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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules 31187

affected units would be smaller than is using CDBG funding is unavailable, as multifamily from single-unit new
contained in the table. In addition, data grantee reports do not separate construction.
on affected units newly constructed

TABLE III—HUD-ASSISTED NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION
Sec. 8 811 202 Sec. 8 HOME
HOPE VI PIH CDBG Totals
RAD PRAC PRAC 202 Rental

New Construction
2012 ............................................. ................ 506 2,405 ................ 146 703
2013 ............................................. 110 583 2,034 ................ 44 297 ................ 19,424 22,492
2014 ............................................. 100 482 1,592 ................ ................ ................ ................ 11,596
Rehabilitation
2012 ............................................. ................ ................ 25 ................ ................ 36
2013 ............................................. 199 15 ................ 109 ................ 16 20,918 14,928 36,185
2014 ............................................. ................ 28 15 ................ ................ ................ 15,716 6,965

FY 2013 Totals ..................... ................ ................ ................ ................ ................ ................ ................ ................ 58,677

Further, a review found that impose minimal, if any, new economic grantees may take using HUD funds.
multifamily (5-plus unit) HUD or costs. HUD has addressed those rare Therefore, small entities will not incur
standard-market new construction situations where the proposed new any costs than they otherwise would
typically provides telephone landline requirements may prove too costly by incur by voluntarily undertaking new
and many provide cable TV granting exceptions to the installation construction or substantial
connectivity.18 A recent survey by the requirements where the installation is rehabilitation, since the costs of these
National Association of Homebuilders economically infeasible due to location activities, including the installation of
found that just 4 percent of the surveyed or building characteristics. broadband infrastructure, are funded by
multifamily housing developers did not The docket file is available for public HUD. For these reasons, this proposed
install landline wires and jacks in inspection in the Regulations Division, rule will not have a significant
multifamily units completed in the past Office of General Counsel, Department economic impact on a substantial
12 months.18 19 In recent years, HUD’s of Housing and Urban Development, number of small entities.
competitive grants for new construction 451 7th Street SW., Room 10276, Notwithstanding HUD’s
under the Choice Neighborhoods Washington, DC 20410–0500. Due to determination that this proposed rule
program have required the provision of security measures at the HUD will not have a significant economic
broadband.20 Therefore, this proposed Headquarters building, please schedule effect on a substantial number of small
rule simply codifies what is considered an appointment to review the docket file entities, HUD specifically invites
common practice in several programs. by calling the Regulation Division at comments regarding any less
Accordingly, most recipients and 202–708–3055 (this is not a toll-free burdensome alternatives to this
owners already meet the standards number). Individuals with speech or proposed rule that will meet HUD’s
established in the proposed rule, and hearing impairments may access this
the new regulatory requirements will objectives, as described in this
number via TTY by calling the Federal preamble.
Relay Service at 800–877–8339 (this is
18 For example under ‘‘Class 4 Low Average
a toll-free number). Unfunded Mandates Reform Act
Quality’’ the Craftsman 2015 National Building Cost
Manual lists cable TV as a standard feature. Only Impact on Small Entities Title II of the Unfunded Mandates
‘‘Class 5’’ minimum quality does not list cable or
a computer network as a standard feature. All The Regulatory Flexibility Act (RFA) Reform Act of 1995 (UMRA) establishes
electrical work is estimated to be 10 percent of (5 U.S.C. 601 et seq.) generally requires requirements for Federal agencies to
project cost. 2015 National Building Cost Manual, an agency to conduct a regulatory assess the effects of their regulatory
supra, p. 19. actions on State, local, and tribal
18 NAHB, Multifamily Market Survey, supra. flexibility analysis of any rule subject to
19 Note that HUD’s definition of accessibility is notice and comment rulemaking governments and the private sector.
more restrictive than the FCC’s because HUD requirements unless the agency certifies This proposed rule will not impose any
considers only the building itself. that the rule will not have a significant Federal mandates on any State, local, or
20 United States Department of Housing and
economic impact on a substantial tribal governments or the private sector
Urban Development. ‘‘Choice Neighborhoods within the meaning of the UMRA.
Planning Grants Notice of Funding Availability,’’ number of small entities.
supra, p. 32. ‘‘Broadband Access. All FY2014 and The proposed rule would provide that Paperwork Reduction Act
FY2015 Implementation Grantees will be required, for new construction or substantial
as part of their Transformation Plan, to include rehabilitation of multifamily rental The information collection
infrastructure that permits unit-based access to
broadband Internet connectivity in all new units.
housing funded by HUD, as part of the requirements contained in this proposed
Grantees may use Choice Neighborhoods funds to new construction or substantial rule must be submitted to OMB under
provide unit-based broadband Internet connectivity, rehabilitation to be undertaken, such the Paperwork Reduction Act of 1995
which includes the costs of installing broadband activity must include installation of (44 U.S.C. 3501–3520) for review and
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infrastructure and hardware in units, but not the
costs of Internet service for residents. Regular and
broadband infrastructure. None of the approval. In accordance with the
informed Internet adoption can increase access to HUD-covered programs listed in this Paperwork Reduction Act, an agency
the job market, as well as health, education, proposed rule require a grantee to may not conduct or sponsor, and a
financial and other services. Further, in-home undertake new construction or person is not required to respond to, a
broadband Internet access is an attractive, and in
most cases, standard amenity that can be used to
substantial rehabilitation. Instead, new collection of information unless the
market the mixed-income community created construction and substantial collection displays a currently valid
through the Transformation Plan.’’ rehabilitation are eligible activities that OMB control number.

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31190 Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules

include installation of broadband ■ 9. In § 570.204 add paragraph (a)(5) to § 574.350 Additional standards for
infrastructure, as this term is defined in read as follows: broadband infrastructure.
24 CFR 5.100, except where the grantee Any new construction or substantial
documents that: § 570.204 Special activities by Community-
rehabilitation, as substantial
Based Development Organizations
(A) The location of the new (CBDOs). rehabilitation is defined by 24 CFR
construction makes installation of 574.3, of a building with more than 4
broadband infrastructure infeasible; or (a) * * *
rental units must include installation of
(B) The cost of installing broadband (5) Any new construction or
broadband infrastructure, as this term is
infrastructure would result in a substantial rehabilitation, as defined by
defined in 24 CFR 5.100, except where
fundamental alteration in the nature of 24 CFR 5.100, of a building with more
the grantee documents that:
its program or activity or in an undue than 4 rental units must include
installation of broadband infrastructure, (1) The location of the new
financial burden. construction or substantial
(b) * * * as this term is also defined in 24 CFR
5.100, except where the grantee rehabilitation makes installation of
(1) * * * broadband infrastructure infeasible;
(x) Broadband infrastructure. If the documents that:
(i) The location of the new (2) The cost of installing broadband
housing is a building with more than 4 infrastructure would result in a
rental units, any substantial construction or substantial
rehabilitation makes installation of fundamental alteration in the nature of
rehabilitation, as defined in 24 CFR its program or activity or in an undue
5.100, must provide for installation of broadband infrastructure infeasible;
(ii) The cost of installing broadband financial burden; or
broadband infrastructure, as this term is (3) The structure of the housing to be
defined in 24 CFR 5.100, except where infrastructure would result in a
fundamental alteration in the nature of substantially rehabilitated makes
the grantee documents that: installation of broadband infrastructure
(A) The location of the substantial its program or activity or in an undue
financial burden; or infeasible.
rehabilitation makes installation of
broadband infrastructure infeasible; (iii) The structure of the housing to be
substantially rehabilitated makes PART 578—CONTINUUM OF CARE
(B) The cost of installing broadband PROGRAM
infrastructure would result in a installation of broadband infrastructure
fundamental alteration in the nature of infeasible. ■ 13. The authority citation for part 578
its program or activity or in an undue * * * * * continues to read as follows:
financial burden; or ■ 10. Add paragraph (c)(4) to § 570.482
Authority: 42 U.S.C. 11371 et seq., 42
(C) The structure of the housing to be to read as follows: U.S.C. 3535(d).
substantially rehabilitated makes
§ 570.482 Eligible activities. ■ 14. In § 578.45, add paragraph (d) to
installation of broadband infrastructure
infeasible. * * * * * read as follows:
(c) * * *
* * * * * (4) Broadband infrastructure in § 578.45 Rehabilitation.
housing. Any new construction or * * * * *
PART 570—COMMUNITY
substantial rehabilitation, as defined by (d) Broadband infrastructure. Any
DEVELOPMENT BLOCK GRANTS
24 CFR 5.100, of a building with more substantial rehabilitation, as defined by
■ 7. The authority citation for part 570 than 4 rental units must include 24 CFR 5.100, of a building with more
continues to read as follows: installation of broadband infrastructure, than 4 rental units must include
Authority: 42 U.S.C. 3535(d) and 5301– as this term is also defined in 24 CFR installation of broadband infrastructure,
5320. 5.100, except where the State as this term is also defined in 24 CFR
documents that: 5.100, except where the grantee
■ 8. In § 570.202, add paragraph (g) to documents that:
(i) The location of the new
read as follows:
construction or substantial (1) The location of the substantial
§ 570.202 Eligible rehabilitation and rehabilitation makes installation of rehabilitation makes installation of
preservation activities. broadband infrastructure infeasible; broadband infrastructure infeasible;
* * * * * (ii) The cost of installing broadband (2) The cost of installing broadband
(g) Broadband infrastructure. Any infrastructure would result in a infrastructure would result in a
substantial rehabilitation, as defined by fundamental alteration in the nature of fundamental alteration in the nature of
24 CFR 5.100, of a building with more its program or activity or in an undue its program or activity or in an undue
than 4 rental units must include financial burden; or financial burden; or
installation of broadband infrastructure, (iii) The structure of the housing to be (3) The structure of the housing to be
as this term is also defined in 24 CFR substantially rehabilitated makes substantially rehabilitated makes
5.100, except where the grantee installation of broadband infrastructure installation of broadband infrastructure
documents that: infeasible. infeasible.
(1) The location of the substantial * * * * * ■ 15. In § 578.47, add paragraph (c) to
rehabilitation makes installation of read as follows:
broadband infrastructure infeasible; PART 574—HOUSING
(2) The cost of installing broadband OPPORTUNITIES FOR PERSONS WITH § 578.47 New construction.
AIDS * * * * *
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infrastructure would result in a
fundamental alteration in the nature of ■ 11. The authority citation for part 574 (c) Broadband infrastructure. Any
its program or activity or in an undue continues to read as follows: new construction of a building with
financial burden; or more than 4 rental units must include
(3) The structure of the housing to be Authority: 42 U.S.C. 3535(d) and 12901– installation of broadband infrastructure,
substantially rehabilitated makes 12912. as this term is defined in 24 CFR 5.100,
installation of broadband infrastructure ■ 12. Add § 574.350 to subpart D to read except where the grantee documents
infeasible. as follows: that:

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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules 31191

(1) The location of the new (3) The structure of the housing to be (3) The structure of the housing to be
construction makes installation of substantially rehabilitated makes substantially rehabilitated makes
broadband infrastructure infeasible; or installation of broadband infrastructure installation of broadband infrastructure
(2) The cost of installing broadband infeasible. infeasible.
infrastructure would result in a
fundamental alteration in the nature of PART 883—SECTION 8 HOUSING PART 886—SECTION 8 HOUSING
its program or activity or in an undue ASSISTANCE PAYMENTS ASSISTANCE PAYMENTS
financial burden. PROGRAM—STATE HOUSING PROGRAM—SPECIAL ALLOCATIONS
AGENCIES
PART 880—SECTION 8 HOUSING ■ 24. The authority citation for part 886
ASSISTANCE PAYMENTS PROGRAM ■ 20. The authority citation for part 883 continues to read as follows:
FOR NEW CONSTRUCTION continues to read as follows: Authority: 42 U.S.C. 1437a, 1437c, 1437f,
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611–13619.
■ 16. The authority citation for part 880 3535(d), and 13611–13619.
continues to read as follows: ■ 25. Add § 886.139 to subpart A to read
■ 21. Add § 883.314 to subpart C to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), 12701, and 13611–13619. as follows:
§ 886.139 Broadband infrastructure.
■ 17. Add § 880.212 to subpart B to read § 883.314 Broadband infrastructure. Any new construction or substantial
as follows: Any new construction or substantial rehabilitation, as defined by 24 CFR
rehabilitation, as defined by 24 CFR 5.100, of a building with more than 4
§ 880.212 Broadband infrastructure. rental units must include installation of
5.100, of a building with more than 4
Any new construction or substantial rental units must include installation of broadband infrastructure, as this term is
rehabilitation, as defined by 24 CFR broadband infrastructure, as this term is also defined in 24 CFR 5.100, except
5.100, of a building with more than 4 also defined in 24 CFR 5.100, except where the owner documents that:
rental units must include installation of where the owner documents that: (1) The location of the new
broadband infrastructure, as this term is (1) The location of the new construction or substantial
also defined in 24 CFR 5.100, except construction or substantial rehabilitation makes installation of
where the owner documents that: rehabilitation makes installation of broadband infrastructure infeasible;
(1) The location of the new (2) The cost of installing broadband
broadband infrastructure infeasible;
construction or substantial (2) The cost of installing broadband infrastructure would result in a
rehabilitation makes installation of fundamental alteration in the nature of
infrastructure would result in a
broadband infrastructure infeasible; its program or activity or in an undue
fundamental alteration in the nature of
(2) The cost of installing broadband financial burden; or
infrastructure would result in a its program or activity or in an undue
financial burden; or (3) The structure of the housing to be
fundamental alteration in the nature of substantially rehabilitated makes
(3) The structure of the housing to be
its program or activity or in an undue installation of broadband infrastructure
substantially rehabilitated makes
financial burden; or infeasible.
(3) The structure of the housing to be installation of broadband infrastructure
■ 26. Add § 886.339 to subpart C to read
substantially rehabilitated makes infeasible.
as follows:
installation of broadband infrastructure PART 884—SECTION 8 HOUSING
infeasible. § 886.339 Broadband infrastructure.
ASSISTANCE PAYMENTS PROGRAM,
NEW CONSTRUCTION SET–ASIDE Any new construction or substantial
PART 881—SECTION 8 HOUSING rehabilitation, as defined by 24 CFR
ASSISTANCE PAYMENTS PROGRAM FOR SECTION 515 RURAL RENTAL
HOUSING PROJECTS 5.100, of a building with more than 4
FOR SUBSTANTIAL REHABILITATION rental units must include installation of
■ 18. The authority citation for part 881 ■ 22. The authority citation for part 884 broadband infrastructure, as this term is
continues to read as follows: continues to read as follows: also defined in 24 CFR 5.100, except
Authority: 42 U.S.C. 1437a, 1437c, 1437f, where the owner documents that:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, (1) The location of the new
3535(d), 12701, and 13611–13619. 3535(d), and 13611–13619.
construction or substantial
■ 19. Add § 881.212 to subpart B to read ■ 23. Add § 884.125 to subpart A to read rehabilitation makes installation of
as follows: as follows: broadband infrastructure infeasible;
§ 884.125 Broadband infrastructure. (2) The cost of installing broadband
§ 881.212 Broadband infrastructure.
infrastructure would result in a
Any new construction or substantial Any new construction or substantial
fundamental alteration in the nature of
rehabilitation, as defined by 24 CFR rehabilitation, as defined by 24 CFR
its program or activity or in an undue
5.100, of a building with more than 4 5.100, of a building with more than 4
financial burden; or
rental units must include installation of rental units must include installation of (3) The structure of the housing to be
broadband infrastructure, as this term is broadband infrastructure, as this term is substantially rehabilitated makes
also defined in 24 CFR 5.100, except also defined in 24 CFR 5.100, except installation of broadband infrastructure
where the owner documents that: where the owner documents that: infeasible.
(1) The location of the new (1) The location of the new
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construction or substantial construction or substantial PART 891—SUPPORTIVE HOUSING
rehabilitation makes installation of rehabilitation makes installation of FOR THE ELDERLY AND PERSONS
broadband infrastructure infeasible; broadband infrastructure infeasible; WITH DISABILITIES
(2) The cost of installing broadband (2) The cost of installing broadband
infrastructure would result in a infrastructure would result in a ■ 27. The authority citation for part 891
fundamental alteration in the nature of fundamental alteration in the nature of continues to read as follows:
its program or activity or in an undue its program or activity or in an undue Authority: 12 U.S.C. 1701q; 42 U.S.C.
financial burden; or financial burden; or 1437f, 3535(d), and 8013.

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31192 Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Proposed Rules

■ 28. In § 891.120, add paragraph (f) to broadband infrastructure, as this term is ACTION: Proposed rule.
read as follows: also defined in 24 CFR 5.100, except
where the PHA documents that: SUMMARY: HUD’s Consolidated Plan is a
§ 891.120 Project design and cost (1) The location of the new planning mechanism designed to help
standards. construction or substantial States and local governments to assess
* * * * * rehabilitation makes installation of their affordable housing and community
(f) Broadband infrastructure. Any new broadband infrastructure infeasible; development needs and to make data-
construction or substantial (2) The cost of installing broadband driven, place-based investment
rehabilitation, as defined by 24 CFR infrastructure would result in a decisions. The consolidated planning
5.100, of a building with more than 4 fundamental alteration in the nature of process serves as the framework for a
rental units must include installation of its program or activity or in an undue community-wide dialogue to identify
broadband infrastructure, as this term is financial burden; or housing and community development
also defined in 24 CFR 5.100, except (3) The structure of the housing to be priorities that align and focus funding
where the owner documents that: rehabilitated makes installation of from HUD’s formula block grant
(1) The location of the new broadband infrastructure infeasible. programs. This proposed rule would
construction or substantial amend HUD’s Consolidated Plan
rehabilitation makes installation of PART 983—PROJECT–BASED regulations to require that jurisdictions
broadband infrastructure infeasible; VOUCHER (PBV) PROGRAM consider two additional concepts in
(2) The cost of installing broadband ■ 32. The authority citation for part 983 their planning efforts.
infrastructure would result in a continues to read as follows: The first concept is how to address
fundamental alteration in the nature of the need for broadband access for low-
Authority: 42 U.S.C. 1437f and 3535(d).
its program or activity or in an undue and moderate-income residents in the
financial burden; or ■ 33. Add § 983.157 to subpart D to read communities they serve. Broadband is
(3) The structure of the housing to be as follows: the common term used to refer to a
substantially rehabilitated makes § 983.157 Broadband infrastructure.
high-speed, always on connection to the
installation of broadband infrastructure Internet. Such connection is also
infeasible. Any new construction or substantial referred to as high-speed broadband or
■ 29. Add § 891.550 to subpart E to read
rehabilitation, as defined by 24 CFR
high-speed Internet. Specifically, the
as follows: 5.100, of a building with more than 4
proposed rule would require that States
rental units must include installation of
and localities that submit a consolidated
§ 891.550 Broadband infrastructure. broadband infrastructure, as this term is
plan describe the broadband access in
Any new construction or substantial also defined in 24 CFR 5.100, except
housing occupied by low- and
rehabilitation, as defined by 24 CFR where the owner documents that:
(1) The location of the new moderate-income households. If low-
5.100, of a building with more than 4 income residents in the communities do
rental units must include installation of construction or substantial
not have such access, States and
broadband infrastructure, as this term is rehabilitation makes installation of jurisdictions must consider providing
also defined in 24 CFR 5.100, except broadband infrastructure infeasible;
(2) The cost of installing broadband broadband access to these residents into
where the owner documents that: their decisions on how to invest HUD
infrastructure would result in a
(1) The location of the new funds. The second concept to be added
fundamental alteration in the nature of
construction or substantial to the Consolidated Plan process would
its program or activity or in an undue
rehabilitation makes installation of require jurisdictions to consider
financial burden; or
broadband infrastructure infeasible; (3) The structure of the housing to be incorporating resilience to natural
(2) The cost of installing broadband substantially rehabilitated makes hazard risks, taking care to anticipate
infrastructure would result in a installation of broadband infrastructure how risks will increase due to climate
fundamental alteration in the nature of infeasible. change, into development of the Plan in
its program or activity or in an undue order to begin addressing impacts of
financial burden; or Dated: April 21, 2016.
climate change on low- and moderate-
(3) The structure of the housing to be Julián Castro,
income residents.
substantially rehabilitated makes Secretary.
DATES: Comments Due Date: July 18,
installation of broadband infrastructure [FR Doc. 2016–11352 Filed 5–17–16; 8:45 am]
2016.
infeasible. BILLING CODE 4210–67–P
ADDRESSES: Interested persons are
PART 905—THE PUBLIC HOUSING invited to submit comments responsive
CAPITAL FUND PROGRAM DEPARTMENT OF HOUSING AND to this proposed rule to the Office of
URBAN DEVELOPMENT General Counsel, Regulations Division,
■ 30. The authority citation for part 905 Department of Housing and Urban
continues to read as follows: 24 CFR Part 91 Development, 451 7th Street SW., Room
Authority: 42 U.S.C. 1437g, 42 U.S.C. [Docket No. FR 5891–P–01] 10276, Washington, DC 20410–0001. All
1437z-2, 42 U.S.C. 1437z-7, and 3535(d). submissions should refer to the above
RIN 2506–AC41 docket number and title. Submission of
■ 31. In § 905.312, add paragraph (e) to
read as follows: public comments may be carried out by
Modernizing HUD’s Consolidated
hard copy or electronic submission.
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§ 905.312 Design and construction. Planning Process To Narrow the
1. Submission of Hard Copy
Digital Divide and Increase Resilience
* * * * * Comments. Comments may be
to Natural Hazards
(e) Broadband infrastructure. Any submitted by mail or hand delivery.
new construction or substantial AGENCY: Office of the Assistant Each commenter submitting hard copy
rehabilitation, as defined in 24 CFR Secretary for Community Planning and comments, by mail or hand delivery,
5.100, of a building with more than 4 Development, Department of Housing should submit comments to the address
rental units must include installation of and Urban Development. above, addressed to the attention of the

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Document Created: 2016-05-18 00:06:15
Document Modified: 2016-05-18 00:06:15

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Contact		For Community Planning and Development programs, Marion McFadden, Office of Community Planning and Development, Room 7204, telephone, 202-708-2111 (this is not a toll- free number). For Office of Multifamily Housing programs, Katie Buckner, Office of Housing, Room 6222, telephone 202-402-7140 (this is not a toll-free number). For Office of Public and Indian Housing programs, Dominique Blom, Office of Public and Indian Housing, Room 4130, telephone 202-402-4181 (this is not a toll-free number). The
FR Citation		81 FR 31181
RIN Number		2501-AD75
CFR Citation		24 CFR 570 24 CFR 574 24 CFR 578 24 CFR 5 24 CFR 880 24 CFR 881 24 CFR 883 24 CFR 884 24 CFR 886 24 CFR 891 24 CFR 905 24 CFR 92 24 CFR 93 24 CFR 983
CFR Associated		Administrative Practice and Procedure; Aged; Claims; Crime; Government Contracts; Grant Programs-Housing and Community Development; Individuals with Disabilities; Intergovernmental Relations; Loan Programs-Housing and Community Development; Low and Moderate Income Housing; Mortgage Insurance; Penalties; Pets; Public Housing; Rent Subsidies; Reporting and Recordkeeping Requirements; Social Security; Unemployment Compensation; Wages; American Samoa; Community Development Block Grants; Grant Programs-Education; Guam; Indians; Northern Mariana Islands; Pacific Islands Trust Territory; Puerto Rico; Student Aid; Virgin Islands; Community Facilities; Grant Programs-Social Programs; Hiv/aids; Community Development; Homeless; Rural Areas; Lead Poisoning and Manufactured Homes